Feb 232026
 
 February 23, 2026  Posted by at 10:52 am Finance Tagged with: , , , , , , , , , ,  51 Responses »


Edgar Degas Danseuse au Tutu Vert 1887


JPMorgan De-Banked Trump Shortly After Jan 6th Capitol Chaos (ZH)
Susan Rice Joins Call for a Revenge Purge If Democrats Re-Take Power (Turley)
Trump Calls on Netflix to Fire Susan Rice (Matt Margolis)
Europe To Recruit Migrants For “National Defense” (ZH)
Sen. Kennedy Tells Us What He Thinks of AOC (Spencer)
Scott Bessent Outlines “Multiple Tools” Now Deployed in Tariff Policy (CTH)
Scott Jennings Drops Massive Truth Bomb About Supreme Court on CNN (Margolis)
Mamdani Is Collapsing Faster Than We Thought (Margolis)
CNN SLAMS Keir Starmer’s ATROCIOUS Ratings (MN)
Starmer Appoints ‘Queen Of Woke’ As UK’s Top Civil Servant – Reform UK (RT)
German Court Rules X Must Turn Over Data on Hungarian Govt Support (CTH)
Hungary and Slovakia Push Back on Ukraine’s Oil Dispute (Manney)
NASA Chief Blasts Boeing Over Botched Starliner Mission (RT)
Investigation Exposes Cover-Up of Obama Center Taxpayer Scam (Matt Margolis)
Is Tucker Carlson’s Career Toast Now? (Matt Margolis)

 


 

Bessent gay

 


 

 


 

 


 


On January 22 2026, the Epoch Times wrote: Trump Sues JPMorgan Chase Over Alleged Debanking . A month later, on February 22, new docs confirmed it all and they said: Documents Confirm JPMorgan Closed Trump’s Bank Accounts After Jan. 6 Capitol Breach . Also on February 22, Zero Hedge then cited the Epoch Times. see below.

We now know for double sure that one month after Jan.6, 2021, which is also right after his first presidential term, JPMorgan closed over 50 bank accounts tied to Donald Trump. Fankly, that raises more questions than I can answer. (Where do the contents go?) Trump filed a $5 billion lawsuit. And he should win. Banks should not feel free to act on political whims.

JPMorgan De-Banked Trump Shortly After Jan 6th Capitol Chaos (ZH)

New court documents released Friday show JPMorgan Chase told President Donald Trump a month after the January 2021 breach of the U.S. Capitol that the bank was closing his accounts. The disclosure was made amid a $5 billion lawsuit Trump filed against JPMorgan and its CEO Jamie Dimon. JPMorgan, the nation’s largest bank, said for the first time late Friday that it cut off more than 50 Trump accounts in February 2021, shortly after Mr. Trump’s first term ended. The accounts included those for Trump hotels, housing developments and retail shops in Illinois, Florida and New York, as well as Mr. Trump’s personal private banking relationship that handled his inheritance from his father, according to letters filed to the court.


JPMorgan did not specify in those letters a specific reason for the mass account closings. In one unsigned note to Mr. Trump, dated Feb. 19, 2021, the bank wrote that he would need to “find a more suitable institution with which to conduct business.” The letter closed with, “Thank you for your prompt attention to this matter” – a phrase that President Trump often uses. As NYTimes reports, the President has maintained for years that his bank account closures were politically motivated, and a spokesperson for his legal team said the newest court documents are “a devastating concession that proves President Trump’ entire claim. [JPMorgan] admitted to unlawfully and intentionally de-banking President Trump, his family, and his businesses, causing overwhelming financial harm, the spokesperson said.

President Trump is standing up for all those wrongly debanked by JPMorgan Chase and its cohorts, and will see this case to a just and proper conclusion. the attorneys added. Mr. Trump’s lawsuit, which named Jamie Dimon, JPMorgan’s chief executive, as a defendant, contended that the bank put Mr. Trump on a blacklist because it “needed to distance itself from President Trump and his conservative political views.” That echoed earlier complaints from Mr. Trump that Capital One similarly closed his accounts and that Bank of America refused to accept billions of dollars in deposits after the Jan. 6 riots. The bank told The Epoch Times over email it will seek to dismiss the claims. “Plaintiffs’ threadbare allegations do not allege sufficient facts to plead a claim,” the institution said.

JPMorgan told The Epoch Times last month that the case “has no merit.” “[JPMorgan Chase] does not close accounts for political or religious reasons,” JPMorgan previously said. “We do close accounts because they create legal or regulatory risk for the company.” “We regret having to do so, but often rules and regulatory expectations lead us to do so.” These comments were made last month, days after Trump announced on social media his intention to sue the bank.

Since then, Trump’s lawyers have alleged in court documents that JPMorgan closed the president’s accounts because of its “‘woke’ beliefs that it needed to distance itself from President Trump and his conservative political views.” “In essence, [JPMorgan Chase] debanked Plaintiffs’ Accounts because it believed that the political tide at the moment favored doing so,” the lawsuit states. JPMorgan added it supports the Trump administration’s efforts to prevent the weaponization of the banking sector. There is still much legal wrangling to come. JPMorgan this past week asked that the case be moved from Florida state court, where Mr. Trump has had some success in litigation, to a federal court in New York.

Read more …

One scary lady.

Susan Rice Joins Call for a Revenge Purge If Democrats Re-Take Power (Turley)

As Democrats plan for the possible takeover in the midterms and 2028 election, they are already openly discussing their push for radical changes in our political system, including packing the Supreme Court to guarantee that those changes are allowed. Many are also pledging trials, impeachments, and investigations of anyone who supported President Donald Trump in a purging of politics and government. The latest to join the revenge purge pledge is Susan Rice, Democratic powerbroker and top policy adviser to both President Barack Obama and Joe Biden.In an interview this week, Rice declared that supporters of Trump can expect the proverbial knocks on their doors:


“A very prominent public figure, who has served at nearly the very highest levels, once told me … ‘Revenge is best served cold,’ and the older I get, the more I see the wisdom of that.”She added: When it comes to the elites, you know, the corporate interests, the law firms, the universities, the media … it’s not going to end well for them, for those that decided that they would act in their perceived very narrow self-interest, which I would underscore, is very short-term self-interest, and, you know, take a knee to Trump. The promise to crackdown political opponents is hardly unexpected in this age of rage. Indeed, Democrats can point to the purging of the federal ranks, particularly at the Justice Department, as further justification for a tit-for-tat response.

Democratic politicians and pundits have been fueling the anger of their base with ludicrous claims that democracy is about to die since the 2020 election. They have now used anti-ICE protests to stoke the anger in the hope that it will return them to power in the midterm elections. Bravo star and liberal podcast host Jennifer Welch praised footage of a “No Kings” protester celebrating the death of Charlie Kirk. After playing the clip, Welch laughed with joy and declared, “So listen up, Democratic establishment. You can either jump on board with this s—, or we’re coming after you in the same way that we come after MAGA. Period.”

The pledge for revenge purges is an obvious way to further motivate a mob. In my book, Rage and the Republic, I discuss how elected officials often try to enlist mobs to advance their political agendas — only to be consumed by the unrest they helped fuel. This yielding to a “mobocracy” was one of the critical dangers that the Framers sought to deter through protections against majoritarian tyranny. It is a history that figures like Rice are ignoring in the hope of riding this rage wave back into power. The fact is that history has shown that “it’s not going to end well” for establishment figures like Rice who believe that they can control a mob.

Read more …

“How much is she being paid, and for what??? Thank you for your attention to this matter.”

Trump Calls on Netflix to Fire Susan Rice (Matt Margolis)

On Preet Bharara’s podcast, Obama’s scandal-scarred former U.N. ambassador promised that any corporation, law firm, university, or media outlet that “took a knee to Trump” will be targeted when the left is back in charge. “It’s not gonna end well for them,” she warned, casting basic engagement with the Trump administration as a kind of original sin that must be punished. And now President Donald Trump wants accountability. On Saturday, Trump called on Netflix to fire Rice. “Netflix should fire racist, Trump Deranged Susan Rice, IMMEDIATELY, or pay the consequences,” he wrote in a post on Truth Social.


“She’s got no talent or skills – Purely a political hack! HER POWER IS GONE, AND WILL NEVER BE BACK. How much is she being paid, and for what??? Thank you for your attention to this matter.” In her interview with Bharara, Rice argued that major institutions are sensing a political shift and regretting their support for Trump. But that won’t stop the Democrats from settling scores aggressively. “If these corporations think that the Democrats, when they come back in power, are gonna, you know, play by the old rules, and say, ‘Oh, never mind, we’ll forgive you for all the people you’ve fired, all the policies and principles you’ve violated, all, you know, the laws you’ve skirted,’ I think they’ve got another thing coming,” Rice said.

She pointed to redistricting as proof that Democrats are done playing nice. “Just like when Trump thought, ‘Okay, I’ll redistrict, and the Democrats won’t have the guts to play hardball,’ they’re gonna be surprised. Democrats have had a belly full, and we’re not gonna play by, you know, the old set of rules, when these guys are playing by a very different set of rules.” Rice made clear that companies that accommodated the Trump administration will face consequences — big tech, media, universities, and law firms. “There will be an accountability agenda,” she warned. She even urged businesses to brace for investigations. “They better preserve their documents. They better be ready for subpoenas. If they’ve done something wrong, they’ll be held accountable.”

The only companies that would avoid the wrath of vengeful Democrats would be the ones that were on the “right” side of history. “If they haven’t broken the law, good for them,” she said. “If they’ve done the right things, good for them. That also will be noted and remembered.” We all know what that really means: If they were loyal to the Democratic Party, they’re in the clear. Her message was blunt. “This is not going to be an instance of, you know, forgive and forget… the damage that these people are doing is too severe to the American people and to our national interest,” Rice said.

Read more …

Muslims will defend the Christian heartland. Yeah yeah. Europe will no longer be Christian. And that’s a big deal, because then it will automatically become Muslim. Yes it will. And only then will the original population start defending itself. Much too late. Now there will be blood.

Europe To Recruit Migrants For “National Defense” (ZH)

Europe’s lack of military readiness has become painfully obvious in recent years, due largely to the war in Ukraine as well as the Trump Administration’s efforts to force NATO members to fulfill their basic obligations. Specifically, Russia’s successful use of attrition tactics against NATO supported forces in Ukraine has exposed a significant weakness in western military doctrine.New and cheap technologies (including drone technologies) are making large scale maneuver warfare obsolete. The era of super-weapons dominating the battlefield with minimal manpower is over. As was the case in WWI and WWII, troop strength and boots on the ground are once again the key to victory.


A Washington DC-based defense think-tank, Center For A New American Century (CNAS), has come to the same realization and suggests a novel (as well as predictable) solution: Exploit mass immigration from Ukraine and third world countries to the west as a resource to fill the persistent void in military recruitment numbers. Writing for Foreign Policy, the CNAS notes: “Closing manpower gaps may prove harder than writing bigger checks. The continent’s demographic crisis compounds the problem: Births in the European Union fell below 4 million in 2022 for the first time since 1960, shrinking the pool of potential recruits as geopolitical threats—chief among them, Russian aggression—demand larger, more capable forces…

The argument, of course, presupposes that Russia has any intention of invading greater Europe. There is no evidence that this is Vladimir Putin’s goal. However, the Russian bogeyman does make for a useful excuse to justify the development of a unified EU military force. The threat of war can also be exploited by European officials as a way to justify open borders and mass immigration from the third world. Immigration from Ukraine makes some sense – It is a legitimate war torn country and Ukrainians are close to the rest of Europeans in terms of cultural attitude. But, EU elites need a rationale for flooding the region with third worlders and war with Russia seems to be their ticket. The CNAS uses the “demographic collapse” claim as a catalyst.

“Ukraine’s grinding war of attrition has laid bare an uncomfortable truth: Emerging capabilities in the form of high-tech weaponry cannot substitute for boots on the ground. Soldiers, sailors, marines, coast guardsmen, and airmen are the backbone of national defense. Yet the European Commission estimates a 43 million reduction in the bloc’s working-age population by 2070…” “…Meanwhile, Europe continues to grapple with significant migration flows from Africa, the Middle East, and other regions. These arrivals, often young, male, and seeking better opportunities, represent exactly the demographic cohort European militaries desperately need. Many migrants arrive with valuable skills: language abilities, cultural knowledge of strategic regions, technical expertise, and, most importantly, motivation to prove themselves and build new lives.”

It should be noted that these kind of articles from think-tanks are not so much “suggestions” for future policy initiatives. Rather, they are propaganda pieces designed to promote policies that governments already intend to implement in the near future. A number of European countries have already begun the groundwork for recruiting migrants for national defense. Ireland just recently announced that their are reviewing a possible program to give fast-track citizenship to immigrants who volunteer to join the military. Irish leaders assert that this is necessary to boost defense capabilities, but they also argue that it is need to increase Ireland’s “diversity.” Several other European governments are looking at similar programs, including Germany, France and Spain.

Read more …

“But our plan for dealing with her, as I have said before, has always been ‘Operation Let Her Speak.’”

Sen. Kennedy Tells Us What He Thinks of AOC (Spencer)

Sen. John N. Kennedy (R-La.) is easily the funniest guy in the United States Senate, and would be the most hilarious politician in all of Washington were it not for the wit who currently occupies the Oval Office. Of course, most of his competition in this regard is no competition at all, as politicians are historically likely to be people who take themselves altogether too seriously. Today’s Democrats in particular are some of the sourest, unpleasant, and humorless people on the entire planet, so weighed down are they with the noble and never-ending struggle against Orange Man Bad, borders, gender, sanity, and common sense. And nobody, and I mean nobody, takes himself or herself or ximself more seriously than the average leftist who thinks that he (or she or xe) is nobly defending — well, not exactly the nation, which they want to leave borderless and defenseless, but at very least all the people who think the right thoughts and check all the proper boxes for the correct candidates — from the spread of “fascism.”


It’s doubtful that even a tiny percentage of these po-faced, self-righteous, self-important clowns even know what fascism is, but whatever, dude. They’re still busy saving us from it, and one of our principal saviors is none other than Rep. Alexandria Ocasio-Cortez (D-The Queensboro), who recently went down in flames at the Munich Security Conference. After AOC sputtered and stuttered and hemmed and hawed and faked her way through an answer to a question about whether the U.S. should defend Taiwan militarily in the event of an attack from Communist China, President Donald Trump commented acidly: “Her performance was horrible. I was surprised, actually. I didn’t know she was stupid.”

One who did know that, however, was Sen. Kennedy, and on Friday, he didn’t hold back. “The Congresswoman,” Kennedy said as Charles Hurt of Fox News chuckled in the background, “is kind of like Vice President Kamala Harris, but with more bartending experience.” If you’d like a word salad with your beer, you’ll be happy to know that Kennedy was just getting warmed up.“She has never been accused,” Kennedy continued, “of being a policy maven. You put her in a presidential primary with Elizabeth Warren or Rahm Emanuel, they will devour her like a light snack.” The senator then added semi-apologetically: “I probably shouldn’t say this, but she can get me back.” No doubt about that, but can AOC be as funny as John Neely Kennedy? Not a chance? Will she even try, or just huff and puff about how evil Republicans are lowering the civil tone of our august legislative bodies? The smart money is on the self-righteous posturing.

Kennedy’s most uproarious jab came next: “Someone told me a joke today. They said Congresswoman Cortez announced today categorically that she is not a moron. And she went on to say she hasn’t even been to Utah, much less embraced their religion.” Buh-dum tiss! Kennedy then reiterated: “Now she can get me back, I don’t dislike the congresswoman.” And then he concluded with another zinger: “But our plan for dealing with her, as I have said before, has always been ‘Operation Let Her Speak.’ And so far, it’s working, and my message to my friend the congresswoman, is ‘You go girl! You just keep it up.’” Can we clone Sen. Kennedy? Can we get 52 more of him to fill out the ranks of Senate Republicans? Imagine the hilarity if we had 53 Kennedys instead of the likes of Thune, McConnell, Murkowski, Collins, and so many others. Not only would the legislation be better, but so would the laughs, and there’s a lot to be said for that.

Sen. Kennedy Read more …

There are so many options. Why did he pick the wrong one?

Scott Bessent Outlines “Multiple Tools” Now Deployed in Tariff Policy (CTH)

Speaking to the Economic Club of Dallas, Treasury Secretary Scott Bessent outlines what technical procedures the Trump administration will trigger now to retain tariff authority. As anticipated Bessent outlines section 232 tariffs, section 301 tariffs, and Section 122 tariffs. WATCH (prompted):


Section 232 [Steel and Aluminum examples] of the Trade Expansion Act of 1962 (19 U.S.C. §1862, as amended) authorizes the President to impose trade restrictions—such as a tariff or quota—if the Secretary of Commerce determines, following an investigation, that imports of a good “threaten to impair” U.S. national security. {SOURCE}

Section 301 tariffs are a trade enforcement mechanism established under the Trade Act of 1974. They allow the U.S. government to impose tariffs on imports from countries that are found to be engaging in unfair trade practices. The Office of the United States Trade Representative (USTR) conducts investigations to determine if a country is violating trade agreements, and if so, it can impose tariffs as a corrective measure {SOURCE}

Section 122 of the Trade Act of 1974 allows the U.S. president to impose tariffs of up to 15% to address “large and serious” balance-of-payments deficits. This authority can be exercised without prior congressional approval for a limited duration of 150 days. After this period, any tariffs must be extended by Congress. {SOURCE}

Read more …

“This is a properly functioning government today.

Scott Jennings Drops Massive Truth Bomb About Supreme Court on CNN (Margolis)

Whatever you think about the Supreme Court’s ruling Friday on tariffs, the ruling was a blunt reality check for the Democrats, whose rhetoric about the high court has been vicious in recent years. On CNN’s NewsNight, host Abby Phillip was walking through the financial fallout from a court ruling, citing a CBO report that found U.S. businesses absorb about 30% of import price increases, while consumers bear the remaining 70% — with the net effect pushing consumer prices up by roughly 95 percent of the domestically borne tariff costs. Inflation has remained low and stable under President Donald Trump, but whatever. The left loves to push their narrative regardless of the facts. Scott Jennings promptly called out her inconsistency.


“Well, which is it?” he said. “You said all of it was passed through to the consumers. You said that most of it was absorbed by some of the companies. It sounds like maybe it might be a little bit of both.” While Phillip suggested refunds should mirror how the tariffs were collected, Jennings predicted a bureaucratic nightmare, warning of massive sums of money at stake and years of litigation likely to follow. Then Jennings shifted gears entirely, and this is where things got interesting.

“I’ll just say, you know, politically, today, you know, it was a big breaking news day, but I just think we ought to acknowledge something,” he said. “This is a properly functioning government today. The president of the United States, the head of the executive branch, made a policy decision. The Supreme Court, it renders legal opinions about these kinds of decisions, made a decision, they said, you can’t do that. The president of the United States said, ‘Okay, I agree, and I will acknowledge your decision. I’m going to use a different statute to try to do what I want to do.’ This is properly functioning government.”

He wasn’t done. Jennings went straight at the media narrative that has dominated coverage of this Supreme Court for the past two years — the one that cast the court as essentially a rubber stamp for whatever Trump wanted.”For every Democrat and every media person that has gone on for the last year or two about how this Supreme Court is a wholly owned subsidiary of Donald Trump, that it’s not independent, that it does whatever he says to do, obviously, that narrative was obliterated today.”

He drove it home: “So, to me, I thought this was actually — I thought the ruling was sound. I think the president is sound to try other statutes. And I think the narratives about the court not being independent and the president not obeying the court were totally blown up today.” How can you argue with that logic? You can’t. Democrats have become so obsessed with the narrative that the court has been a rubber stamp for Trump; they’ve literally considered packing the court because of this narrative. Frankly, the conservatives on the Supreme Court have shown far more independence than any of the leftists on the court.

Read more …

Wait till he starts raising taxes.

Mamdani Is Collapsing Faster Than We Thought (Margolis)

You can’t say we didn’t warn New York what was going to happen if it elected Zohran Mamdani, but I gotta say, I don’t think anyone predicted it would start collapsing so quickly. But, alas, it has. That socialist utopia that Mamdani was supposed to deliver has instead turned into a slow-motion fiscal catastrophe a mere two months in — and even the liberal media is starting to notice. Mamdani unveiled a $127 billion budget for fiscal year 2027 this week — a staggering $5 billion increase over the prior year. But what’s $5 billion between socialists, right?


To put that into perspective, Mamdani’s proposed budget is actually larger than the budgets of 47 U.S. states, including Florida, which has nearly twice the population. And somehow, it still isn’t enough. The city is staring down a $5.4 billion deficit, with the real gap potentially closer to $12 billion when you do the actual math. So what was his plan? Tax someone else. Mamdani went straight to Albany looking for a handout, demanding that Gov. Kathy Hochul raise taxes on the “ultra-wealthy” and the most profitable corporations. When Hochul told him to pound sand and cut spending instead, he obviously couldn’t do that, and now he is looking at saddling homeowners with a 9.5% property tax hike.

“Faced with no other choice, the city would have to exercise the only revenue lever fully within our own control,” he said. “We would have to raise property taxes. We would also be forced to raid our reserves. To balance the budget as required by law, our preliminary budget takes the only path within our control: the second path. The options of the second path are the options of last resort. Options that we will only employ if there is no other means of arriving at a balanced budget.” As a New York resident, I can say there’s finally something I can agree with Hochul on. Why should the rest of the state subsidize Mamdani’s socialist experiment in New York City?

Let it foot the bill for the mistake of electing Mamdani. Remember, this is the guy who campaigned on affordability and making the rich “pay their fair share,” and now he’s already in a position where he has to tax regular people to cover the costs of his promises. This budget crisis he’s facing two months into his term comes on top of him taking heat for poor trash cleanup and snow removal on his watch. Two months into the job, and the basics aren’t getting done. Conservatives warned about exactly this before last year’s election. We said a self-described democratic socialist running one of the world’s most financially complex cities was a recipe for disaster. Voters in New York went ahead anyway. Now the city faces the reckoning that was entirely predictable.

“No one in New York is ambitious enough to dramatically reshape city government, and residents either vote for class warfare or vote with their feet,” the Washington Post editorial board observed. “A reckoning will have to come eventually. The question is how bad it gets before reality sets in.” That question may answer itself sooner than anyone expected. “No one in New York is ambitious enough to dramatically reshape city government, and residents either vote for class warfare or vote with their feet,” the Washington Post editorial board observed. “A reckoning will have to come eventually. The question is how bad it gets before reality sets in.” That question may answer itself sooner than anyone expected.

Read more …

The “leaders” of the large Eropean nations all poll in the sewers..

CNN SLAMS Keir Starmer’s ATROCIOUS Ratings (MN)

Keir Starmer’s approval ratings have plunged to historic lows, with even CNN calling them “absolutely ATROCIOUS” and noting that President Trump appears “downright like Abraham Lincoln” by comparison. This brutal takedown highlights how Starmer’s globalist policies are alienating Brits across the board. As the Labour leader clings to power, his war on free speech and commitment to protecting illegal immigration is fueling a backlash that could spell the end for his regime. With polls showing just 20% approval, Starmer’s grip on Number 10 looks increasingly tenuous. The Overton News clip, which has gone viral on X, captures CNN’s scathing assessment of Starmer’s popularity nosedive.


In the segment, analyst Harry Enten declares, “The se numbers are absolutely ATROCIOUS! I mean, you never see numbers like this in the United States of America.” Focusing on the dire stats, Enten points out, “Britons who like Keir Starmer, look at this — overall it’s just 1 in 5! It’s just 1 in 5, 20%!” Even within his own ranks, support is crumbling: “His OWN party, Labour, he’s just at 52% there.” The commentary escalates, revealing, “I’ve even seen numbers with satisfaction in the TEENS — and this is actually HIGHER than the lowest.” The most striking line compares Starmer unfavorably to Trump: “You know, we always talk about Donald Trump being unpopular in this country — but Donald Trump looks downright like Abraham Lincoln compared to Keir Starmer’s numbers at this point!”

The latest YouGov survey from February 2026 shows Starmer’s net favourability at -47, with only 22% viewing him positively against 69% unfavorably. That’s an improvement from January’s -57, but still abysmal for a sitting PM.Other trackers paint an even grimmer picture. Ipsos reported satisfaction in the teens late last year, aligning with CNN’s observations. Opinium’s February poll pegs his net approval at -44, with over half the public calling for his resignation. Starmer’s woes stem from policies that prioritize globalist agendas over British interests. Mass immigration continues unchecked, straining public services while borders remain porous. Economic missteps, like burdensome regulations on businesses, echo the failures of socialist experiments.

Recall our earlier coverage where a former aide to Starmer revealed how a “stakeholder state” – an unelected network of insiders, NGOs, and civil servants – effectively controls the UK government. Paul Ovenden described this “political perma-class” as diverting power from voters to elite priorities, wasting resources on fringe issues while ignoring secure borders and sovereignty. This shadowy influence explains Starmer’s disconnect from the public, leading to approval ratings that rival the worst in postwar history. Historical comparisons show that every UK PM with similar low ratings either lost big or resigned before the next election. Adding fuel to the fire is Starmer’s aggressive stance against free expression. Threats to ban platforms like X over AI-generated content have drawn international condemnation.

Read more …

“Romeo set out plans for civil servants to spend around 20% of their working hours on diversity objectives such as encouraging workers to display their preferred pronouns and “recruiting non-binary staff,”

Starmer Appoints ‘Queen Of Woke’ As UK’s Top Civil Servant – Reform UK (RT)

UK Prime Minister Keir Starmer has appointed the “Queen of Woke” as his new cabinet secretary, Reform UK party spokesperson Zia Yusuf wrote on X on Friday. Antonia Romeo’s elevation to the UK’s most senior civil servant position is the “embodiment of all that’s wrong” with the current establishment, Yusuf argued. While heading the Department for International Trade (DIT), “she bombarded staff with weekly emails pushing Transgender Awareness Week, Bi Visibility Day, and even recommended watching films about trans parenthood,” he claimed. During her time working in the Home Office, “65,000 illegal migrants have crossed on her watch,” he said.


During her stint at the DIT, Romeo set out plans for civil servants to spend around 20% of their working hours on diversity objectives such as encouraging workers to display their preferred pronouns and “recruiting non-binary staff,” the Telegraph reported on Friday, citing internal documents. She also reportedly instructed staff to join a “gender non-conforming book club” as part of their corporate performance review. Starmer has argued that Romeo is the “right person” for government to deliver a “period of national renewal.”

Only 15% of Britons approve of the prime minister’s job performance, according to an Ipsos poll from last month. His approval ratings have been battered by dissatisfaction with his handling of the ongoing migrant crisis, a surge in arrests related to comments made online, the cost-of-living crisis, and the resurgence of the Pakistani rape gang scandal. Most recently, revelations emerged that Starmer appointed Peter Mandelson as UK ambassador to the US despite knowing of his ties to convicted pedophile Jeffrey Epstein. Starmer has maintained that he “was lied to” during the vetting procedure.

The waning popularity of the prime minister’s Labour Party is expected to culminate in major losses to Reform at the upcoming local elections, according to projections from the pollster ElectoralCalculus. On Monday, Starmer’s government reversed its plans to postpone the elections until next year after a legal challenge from Reform.

Read more …

“This effort against PM Orban by the European Union is part of the reason why Secretary of State Marco Rubio was so strong in his words of appreciation and support for Orban during his recent visit to Budapest…”

German Court Rules X Must Turn Over Data on Hungarian Govt Support (CTH)

The European Union has a major targeting effort against Hungarian Prime Minister Viktor Orban, an ally of President Trump who does not support giving additional funding to the Ukraine war effort. Hungary is having national elections in April. Previously, USAID Administrator Samantha Power spent considerable time in Hungary organizing activist groups to conduct operations against the government {2023 – Go Deep}. Last week a German based NGO called Democracy Reporting International, won a ruling from a Berlin judge to force the X platform to turn over data related to support for Viktor Orban and the government of Hungary.


All of this opposition to Prime Minister Orban seems to be coordinated by quasi government agencies on behalf of Brussels and their interventionist intentions. We may remember it was also information from German intelligence, that was behind the nullification of the Romanian first-round election. However, Viktor Orban is fighting back and refusing to approve the funding of the Ukraine war despite the massive pressure campaign from inside the European Union.

As noted by Hungarian Minister Zoltan Kovacs, “Many have asked how Hungary can block the €90 billion Ukrainian war loan if we are not participating in it. clarified that the loan does not affect Hungary and does not entail any financial commitment for us. As Hungary is not part of the cooperation, in most of the decision-making procedures we do not even vote. However, he pointed out that for the scheme to function, the EU’s seven-year budget guarantee rules must be amended – and this requires the approval of all 27 member states, not only the financing member states. We are now blocking this decision, without which the war loan cannot be disbursed.”

(Via Politico) – A court in Germany on Tuesday ordered Elon Musk’s social media site X to hand over data related to the upcoming election in Hungary to researchers for scrutiny. The court in Berlin ruled in favor of rights group Democracy Reporting International in its bid to access data to research influence campaigns and disinformation in the election. The group took its case to court after X in November refused its data access requests. The European Union’s rules for social media platforms, the Digital Services Act, obliges big online platforms like X to grant external researchers access to data to scrutinize how platforms handle risks, including election interference. The European Commission in December fined X €40 million for breaching that obligation, as part of a €120 million levy.

This effort against PM Orban by the European Union is part of the reason why Secretary of State Marco Rubio was so strong in his words of appreciation and support for Orban during his recent visit to Budapest.

RUBIO: “The President has an extraordinarily close relationship to the prime minister. He does. And it has had tangible benefits in our relationship. I’m not going to speculate about the future. What happens in this country is up to the voters of this country to determine and decide, and we love the people of Hungary. But I’m not – but there’s no reason to sugarcoat it. I’m going to be very blunt with you. The prime minister and the President have a very, very close personal relationship and working relationship, and I think it has been incredibly beneficial to the relationship between our two countries.” {Source – Transcript}

Read more …

When will the EU implode?

Hungary and Slovakia Push Back on Ukraine’s Oil Dispute (Manney)

Slovak Prime Minister Robert Fico delivered a blunt warning, saying Slovakia would halt emergency electricity exports to Ukraine unless Kyiv restored Russian oil transit through Ukrainian territory, setting a firm deadline of Feb. 23. The dispute centers on the Druzhba pipeline, which still supplies Russian crude to parts of Central Europe. Russian forces struck Ukrainian energy infrastructure in late January, an attack that damaged equipment tied to the Druzhba system in western Ukraine. The flow of oil to Slovakia and Hungary stopped that same day. mUkrainian officials blamed Moscow and offered alternative routes, including the Odesa-Brody pipeline and maritime shipments.


Fico responded by declaring a state of emergency in Slovakia’s oil sector, saying he would instruct SEPS, Slovakia’s state grid operator, to suspend electricity deliveries to Ukraine if oil transit didn’t resume. Slovakia supplied roughly 18% of Ukraine’s record electricity imports in January, and doubled its support compared with the previous year. Oil transit to Slovakia and Hungary has been disrupted since late January after a Russian strike hit the Druzhba pipeline, a key route carrying Russian crude to Central Europe. Ukraine’s pipeline operator said this week that the Jan. 27 attack damaged critical infrastructure and that repair works are ongoing.

In a letter to the European Commission, Ukraine’s embassy to the EU proposed using the Odesa–Brody pipeline or maritime routes as temporary alternatives to supply Hungary and Slovakia while repairs are completed. Fico accused Ukrainian President Volodymyr Zelenskyy of treating Slovakia as a “hostile country,” saying Kyiv first halted gas flows, costing Slovakia €500 million annually, and has now stopped oil supplies, causing further losses. He also defended his decision to refuse Slovakia’s participation in the EU’s planned €90 billion military loan for

Hungarian Prime Minister Viktor Orbán and Foreign Minister Péter Szijjártó escalated the pressure at the European level by blocking a major EU financial package for Ukraine that required unanimous approval. Budapest tied its position directly to the restoration of oil transit through Druzhba. It’s through that route that most of Hungary’s oil supply from Russia is delivered.When the EU adopted its 2022 oil embargo against Russia, Hungary and Slovakia both secured exemptions. Since then, Orbán has delayed or opposed several sanction packages and has resisted long-term funding commitments, while Fico shifted Bratislava away from the prior government’s strong military backing of Ukraine.

Disputes over gas transit agreements in late 2024 also strained relations. Kyiv ended certain transit agreements when contracts expired, increasing pressure on downstream countries that still rely on Russian supply routes. Each confrontation reinforces the same pattern: energy needs still drive national policy, even during wartime. Ukrainian officials labeled the moves as political blackmail, arguing that the infrastructure damage resulted from Russian attacks and that repairs and legal transit options were still under discussion. Officials in Kyiv also noted that only a handful of EU member states still import significant volumes of Russian oil.

Read more …

Boeing is gone. But it’s a big bloated corpse.

NASA Chief Blasts Boeing Over Botched Starliner Mission (RT)

NASA chief Jared Isaacman has slammed Boeing for failures that plagued the botched debut mission of its first crewed spaceship, Starliner, which left two astronauts stranded for nine months last year. A billionaire private astronaut and close associate of SpaceX founder Elon Musk, Isaacman, who was appointed NASA administrator two months ago, also offered a blistering critique of the agency’s previous leadership, claiming that its decision-making risked creating “a culture incompatible with human spaceflight.” The remarks were made at a press conference on Thursday during the release of a sweeping report on the Starliner mission, which saw two astronauts, Butch Wilmore and Suni Williams, stuck in space for nine months instead of the planned one week.


The capsule returned empty in September 2024 while the crew came home on a different vehicle in March 2025.The report states the loss of control during the capsule’s rendezvous with the ISS constitutes a Type A mishap – the most serious category of anomaly. It identifies critical design flaws in Boeing’s spacecraft, presenting 61 recommendations to address the issues before any future crewed Starliner mission. It also exposed management failures, stating that the mission “was marked by chaotic meeting schedules, unclear roles, and communication breakdowns.” “Mistrust between NASA and Boeing was intensified by selective data sharing, perceived favoritism, and inconsistent transparency,” the report added.

Boeing is facing public scrutiny over numerous safety issues and incidents involving its commercial aircraft and repeated delays in delivering key government contracts. Despite its troubles, the US government continues to contract with the company because NASA has a strategic goal to maintain two independent American systems for transporting astronauts to the ISS. SpaceX, the agency’s other partner, has also experienced technical issues affecting ISS operations, including delayed astronaut returns and aborted missions.

With both US contractors facing challenges, Russia remains the only other country capable of independently transporting people and cargo to the ISS. While Western sanctions over Ukraine targeted Russia’s aerospace industry, space cooperation was deliberately exempted to keep the station operational. Last week, Isaacman publicly stated his desire to meet with Roscosmos head Dmitry Bakanov and expressed interest in attending the launch of the Soyuz MS-29 mission from the Baikonur Cosmodrome in Kazakhstan, scheduled for the summer of 2026.

Read more …

“.. leaving taxpayers high and dry and putting them on the hook for hundreds of millions of dollars to support the ugliest building in Chicago,”

Investigation Exposes Cover-Up of Obama Center Taxpayer Scam (Matt Margolis)

Barack Obama promised Chicago a “gift” with his Obama Presidential Center. Instead, he delivered yet another boondoggle, buried in secrecy, with missing money, and stonewalling straight out of a Chicago corruption playbook. When Obama got approval to build his presidential center in Jackson Park, he vowed the project would be privately funded. Every penny, he said, would come from donations to his foundation. Taxpayers, he insisted, wouldn’t be on the hook. That was the sales pitch — and like so many Obama promises, it’s proven to be fiction.


The Obama Foundation may be paying for the building itself, but taxpayers have been secretly shouldering hundreds of millions of dollars in hidden infrastructure costs. Roads were torn up, utilities relocated, and parkland reshaped — all to serve Obama’s monument to himself. Cornell Drive, a major four-lane roadway that once ran along the park’s lagoon, has been erased so Obama’s massive campus could dominate the landscape. This wasn’t just a minor tweak to city planning. It was a taxpayer-funded overhaul of a historic public park — one that Obama’s team couldn’t have pulled off without Chicago and Illinois residents footing the bill.

Back in 2018, officials estimated public infrastructure costs at $350 million. Fast forward to today, and that number is almost meaningless. The Illinois Department of Transportation (IDOT) now admits to roughly $229 million in “state-managed spending.” Chicago’s records show another $206 million linked to the same project. No one in city or state government will say how those figures line up — or whether the total cost is far higher. And if you don’t think there’s something scandalous going on, then why are all the agencies involved being tight-lipped about it?

Fox News Digital filed Freedom of Information Act requests with IDOT, Chicago’s Department of Transportation, the Office of Budget and Management, Mayor Brandon Johnson’s office, and Governor J.B. Pritzker’s administration. Not one produced a complete accounting of public spending. IDOT offered vague numbers. The city stalled and refused to release records. Pritzker’s office contradicted itself, then stopped responding entirely. OBM even admitted it had “no responsive records” — an absurd claim for the agency that manages the city’s capital budget.

This is a coordinated cover-up, plain and simple. The Illinois Attorney General’s Public Access Counselor is now investigating whether multiple agencies violated the state’s open records laws. But you don’t need a court order to see what’s going on. Obama’s so-called “gift” turned into a taxpayer-financed vanity project — protected by the same political machine that made Chicago famous for corruption.

To make matters worse, Obama’s promised $470 million “endowment” to shield taxpayers in case the foundation ran out of cash has barely materialized. The fund has just $1 million in deposits — one-fifth of one percent of what was pledged. “Illinois Republicans saw this coming a mile away. Now, right on cue, Illinois Democrats are leaving taxpayers high and dry and putting them on the hook for hundreds of millions of dollars to support the ugliest building in Chicago,” Illinois GOP Chair Kathy Salvi told Fox News Digital. “Illinois’ culture of corruption is humming along with pay-to-play deals to their allies and friends while lying to Illinois voters.”

Read more …

Strange stories.

Is Tucker Carlson’s Career Toast Now? (Matt Margolis)

Tucker Carlson just had one of the most embarrassing weeks in recent media memory. In the span of a few days, he fabricated a detention story, spread a debunked antisemitic smear about Israel’s sitting president, and then had to crawl back with an apology, as the public watched the wreckage of his career unfold in real time. Last week, Carlson flew into Ben-Gurion Airport on a private jet to record an interview with U.S. Ambassador Mike Huckabee. He never left the airport. Critics noted the obvious irony: a man who lectures his audience about Israel couldn’t bring himself actually to set foot in the country. After the interview, Carlson claimed that airport security had “hauled” his executive producer into a side room, seized his team’s passports, and demanded to know what was discussed with Huckabee.


That story fell apart almost immediately. The Israel Airports Authority stated that Carlson was “politely asked a few routine questions, in accordance with standard procedures applied to many travelers,” and that the conversation took place in a VIP lounge specifically to protect his privacy. The U.S. Embassy in Jerusalem confirmed his group “received the same passport control questions that countless visitors to Israel” receive. Then, leaked security footage surfaced showing Carlson smiling, hugging, and posing for photos with airport staff. Former Israeli Prime Minister Naftali Bennett called Carlson a fraud and said he “fabricated a tale about being supposedly harassed by our security forces.”

The detention story was bad. What came on Friday was worse. Carlson released the Huckabee interview and used it to launch a series of outlandish claims and accusations. He called Israel “probably the most violent country on earth,” questioned its right to exist, accused it of controlling American foreign policy, and declared it a police state. He claimed Netanyahu believes in “blood guilt” — that he punishes not just wrongdoers but their entire bloodlines — even though Netanyahu has never said anything of the sort. His claim that “Prime Minister Netanyahu has way more influence over American foreign policy than Americans do” echoed antisemitic tropes that have circulated for decades.

Then came the Epstein bomb. Carlson repeatedly pressed Huckabee about Israeli President Isaac Herzog’s supposed connection to Jeffrey Epstein’s island. “The current president of Israel, whom I know you know, apparently was at ‘pedo island,'” Carlson said on air. Huckabee said he was unaware of any such connection. And for good reason — there isn’t one. Herzog appears in the Epstein files only through news articles that ended up in Epstein’s emails. Carlson was basing his allegation on a fake, AI-generated image that circulated online after the Epstein files were released.

After Huckabee learned the claims were false, he wrote on X that Carlson’s allegations “could be the stuff of libel lawsuits” and that “it was hard to follow Tucker’s line of questioning.” On Saturday, Carlson released a video apologizing, acknowledging he had no evidence and saying, “I’m sorry to imply that I knew something I didn’t know.”] That apology changes nothing. More than a million people watched the original interview without a warning that its core claims were false. Carlson threw out a serious accusation against a sitting head of state without doing five minutes of verification, and the only explanation is confirmation bias.I don’t know what happened to Tucker Carlson, but it looks like we’re watching his career blow up in front of our faces in slow motion.

Read more …

 

 

 

 

Tulsi Mar-a-Lago CAFitts

 

 

 

 

Support the Automatic Earth in wartime with Paypal, Bitcoin and Patreon.

 

 

 

 

 

Feb 222026
 


Pierre-Auguste Renoir Dance at Bougival 1883


Trump Responds to Supreme Court’s Decision on Tariffs (Sarah Anderson)
Trump Winds Down IEEPA tariffs, Imposes 10% Global Tariff To Last 150 Days (JTN)
Supreme Court Rule 6-3 Against President Trump’s IEEPA Tariff Authority (CTH)
Clarence Thomas Unloads on the Supreme Court Over Tariff Ruling
Will We See a Supreme Court Vacancy (or Two) This Summer? (Josh Hammer)
Virtually All Countries Support Voter Photo ID – So Why the Filibuster? (RCW)
Washington Post Editorial Board Brutally Mocks Mamdani (ZH)
President Donald Trump Stands Victim of His Own Success (David Manney)
Biased Spies: John Ratcliffe Cleans House at the CIA (Manney)
The Shattered Dreams of Steve Bannon (Scott Pinsker)
When Does Accountability For The Deep State Begin? (Dornik)
Susan Rice Warns Of ‘Accountability Agenda’ When Democrats Return To Power (JTN)
Deporting Censorship: US Targets UK Government Ally Over Free Speech (Thaccker)

 


 

Gulf Tariffs

 


 

 


 

“..”Foreign countries that have been ripping us off for years are ecstatic. They’re so happy,” he said. “And they’re dancing in the streets, but they won’t be dancing for long — that I can assure you.”

Trump Responds to Supreme Court’s Decision on Tariffs (Sarah Anderson)

President Donald Trump came out to speak to the press from the White House on Friday to express his feelings on the Supreme Court’s Decision to rule against his broad tariffs, which he imposed through a series of executive orders last year, under the International Emergency Economic Powers Act (IEEPA). He began by saying the ruling was “deeply disappointing,” and that he was “ashamed of certain members of the court — absolutely ashamed for not having the courage to do what’s right for our country.” The president also thanked Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito for “their strength and wisdom and love of our country.”


Trump claims that when you read their dissenting opinions, there’s no way anyone can argue against them. “Foreign countries that have been ripping us off for years are ecstatic. They’re so happy,” he said. “And they’re dancing in the streets, but they won’t be dancing for long — that I can assure you. Trump said that he knew the Democrats on the court were an automatic “no,” just like the Democrat members of Congress, no matter how great the case. “They’re against anything that makes America strong, healthy, and great again,” he said. He also called them a “disgrace to our nation.”

He said the others, presumably Justices John Roberts, Neil Gorsuch, and Amy Coney Barrett, are being “politically correct,” which happens far too often, and he called them “fools and lap dogs for the RINOs and the radical left Democrats.” “They’re very unpatriotic and disloyal to our Constitution. It’s my opinion that the court has been swayed by foreign interests, and a political movement that is far smaller people would ever thing,” he said, adding, “I won by millions of votes — we won in a landslide, with all the cheating that went on, and there was a lot of it.” He claimed that “certain justices” are “afraid” of the loud, obnoxious, and ignorant minority.

“This was an important case to me, more as a symbol of economic national security and also, I would say just for our country itself — so important because we’re doing so well as a country,” he said. “The good news is that there are methods, practices, statutes, and authorities, as recognized by the entire court in this terrible decision, and also as recognized by Congress, which they refer to, that are even stronger than the IEEPA tariffs available to me as president of the United States.”

Trump claimed he was actually modest in what he asked of other countries because he was trying to be “well-behaved,” and wanted to be a “good boy” because he knows how the Supreme Court works and knows they’re easily swayed. He also touted some economic wins, like recent stock market records and the decline of fentanyl coming into our country, and how tariffs helped him settle eight wars. The president said it’s ridiculous that the law allows him to “destroy” foreign countries, tell them they can’t do business in the United States, or even embargo them, but he can’t charge them a cent.

“It’s okay because we have other ways — numerous other way,” he added. “Therefore, effective immediately, all national security tariffs, under Section 232 and existing Section 301 tariffs… remain fully in place and in full force and effect. Today, I will sign an order to impose a 10% global tariff, under Section 122, over and above our normal tariffs already being charged.” He said he’s also initiating other investigations to “protect our country from unfair trading practices of other countries and companies.”

Read more …

Bumped it up to 15%.

Trump Winds Down IEEPA Tariffs, Imposes 10% Global Tariff To Last 150 Days (JTN)

President Donald Trump on Friday signed an executive order that formally ends a range of tariffs that the Supreme Court shot down earlier in the day, and imposed a new 10% global tariff that will be in effect for 150 days. The Supreme Court ruled in a 6-3 split that Trump could not impose massive tariffs under the International Emergency Economic Powers Act, however the majority opinion did not weigh in on other means to impose the tariffs. Trump said the new 10% global tariff is being enacted under Section 122 of the 1974 Trade Act, which comes as tariffs imposed under Section 232 and Section 301 remain in place

.
“It is my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries, which will be effective almost immediately,” Trump said in a series of posts on Truth Social. “Those members of the Supreme Court who voted against our very acceptable and proper method of tariffs should be ashamed of themselves. “Their decision was ridiculous, but now the adjustment process begins, and we will do everything possible to take in even more money than we were taking in before,” he added. The new tariff will take effect just after midnight on Tuesday, Feb. 24.

Read more …

You can’t do it under IEEPA, but we have plenty other laws…

“,,the Court’s decision is not likely to greatly restrict Presidential tariff authority going forward. (pg, 63 dissent).

Supreme Court Rule 6-3 Against President Trump’s IEEPA Tariff Authority (CTH)

Economic security is national security, and the hollowing out of our ability to independently sustain our national economic system posed a real and substantive threat to our nation. The court never evaluated the ‘urgency’ behind the International Emergency Economic Powers Act (IEEPA) as used by President Donald Trump.Instead, the court began their legal analysis by seeking to define the word “regulate” as it applies to IEEPA. Part II–B, concluding: (a) IEEPA authorizes the President to “investigate, block during the pendency of an investigation, regulate, direct and compel, nullify, void, prevent or prohibit . . . importation or exportation.” §1702(a)(1)(B) under the Act.


The majority of the court decided presidential ability to levy countervailing duties is not part of the ability to “regulate” importation. In the opinion of the court, the President can block imports, nullify imports and prohibit imports, but the president cannot “regulate” imports through the use of tariffs. This is the representative logic of a John Roberts court, the voice of Bush Inc.

It is what it is – and many of us saw this nonsense as a likely outcome, but it is still frustrating to see such a detached parseltongue approach to legal opinions when the national security of our nation is at stake. These are the judicial minds who will watch the nation burn to the ground, just so they can remain in power ruling over the ashes. Chief Justice John Roberts and Justices Amy Coney Barrett and Neil Gorsuch joined the court’s three liberals in the majority. Justices Brett Kavanaugh, Samuel Alito and Clarence Thomas dissented.

(Via Politico) – […] “The President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it,” Roberts wrote, declaring that the 1977 law Trump cited to justify the import duties “falls short” of the Congressional approval that would be needed. The ruling wipes out the 10 percent tariff Trump imposed on nearly every country in the world, as well as specific, higher tariffs on some of the top U.S. trading partners, including Canada, Mexico, China, the European Union, Japan and South Korea.

Several of those countries have entered trade agreements with the U.S. — and before the ruling indicated that they would continue to honor those agreements. That is because the victory for the 12 Democratic-run states and small businesses that challenged Trump’s tariffs is expected to be short lived. The White House has signaled it will attempt to use other authorities to keep similar duties in place. “We’ve been thinking about this plan for five years or longer,” U.S. Trade Representative Jamieson Greer told POLITICO in December. “You can be sure that when we came to the president the beginning of the term, we had a lot of different options” “My message is tariffs are going to be a part of the policy landscape going forward,” Greer said. (read more)”

Justice Thomas agrees with CTH prior position on the issue. IEEPA grants the president the authority to regulate imports, and tariffs are a tool for regulation.


Despite this decision the tariffs will remain in place, perhaps using various authorities which have not been challenged as noted in the Kavanaugh dissent:

“That said, with respect to tariffs in particular, the Court’s decision might not prevent Presidents from imposing most if not all of these same sorts of tariffs under other statutory authorities. For example, Section 122 of the Trade Act of 1974 permits the President to impose a “temporary import surcharge” to “deal with large and serious United States balance-of-payments deficits.” 19 U. S. C. §2132(a). Section 201 of the Trade Act of 1974 provides that, if the International Trade Commission determines an article is being imported in such quantities that it is “a substantial cause of serious injury, or the threat thereof, to the domestic industry producing an article like or directly competitive with the imported article,” the President may take “appropriate and feasible action,” including imposing a “duty.”

§§2251(a), 2253(a)(3)(A). Section 301 of the Trade Act of 1974 authorizes the President through a subordinate officer to “impose duties” if he determines that “an act, policy, or practice of a foreign country” is “unjustifiable and burdens or restricts United States commerce.” §§2411(a)(c). Section 338 of the Tariff Act of 1930 permits the President to impose tariffs when he finds that “any foreign country places any burden or disadvantage upon the commerce of the United States.” §1338(d). And Section 232 of the Trade Expansion Act of 1962 authorizes the President to, after receiving a report from the Secretary of Commerce, “adjust the imports of [an] article and its derivatives so that such imports will not threaten to impair the national security.” §1862(c)(1)(a).

So the Court’s decision is not likely to greatly restrict Presidential tariff authority going forward. (pg, 63 dissent).

Read more …

“If foreign trade regulation isn’t a core legislative function, then delegating it to the executive doesn’t violate separation of powers at all.”

Clarence Thomas Unloads on the Supreme Court Over Tariff Ruling

The Supreme Court handed President Donald Trump a significant defeat on tariffs Friday morning, and the sharpest voice in the room wasn’t in the majority. It was Clarence Thomas, writing in dissent, methodically dismantling the majority’s reasoning for stripping the president of broad tariff authority under the International Emergency Economic Powers Act. The ruling blocks Trump from using IEEPA as the legal foundation for his reciprocal tariff policy. For what it’s worth, the court didn’t wipe out his tariffs entirely — other statutes still provide Trump with opportunities to impose tariffs — but the majority made clear that sweeping executive tariff power requires explicit congressional guardrails.


What made the decision especially striking was the coalition that produced it. Chief Justice John Roberts wrote the majority opinion, joined by Amy Coney Barrett and Neil Gorsuch, alongside the court’s three liberal justices. Thomas, Samuel Alito, and Brett Kavanaugh dissented. His dissent goes straight to the constitutional text and history. “I write separately to explain why the statute at issue here is consistent with the separation of powers as an original matter,” he wrote. His argument is grounded in the Founding era’s actual understanding of foreign commerce — not a modern reinterpretation of it.

Thomas draws a hard line between domestic legislative power and foreign trade authority. Congress holds the taxing power and the power to set domestic rules governing life, liberty, and property. Foreign commerce is a different animal entirely. “Power over foreign commerce was not within the core legislative power, and engaging in foreign commerce was regarded as a privilege rather than a right,” he explained. If foreign trade regulation isn’t a core legislative function, then delegating it to the executive doesn’t violate separation of powers at all. In fact, that would mean it’s actually consistent with how the Founders understood the relationship between the branches.

Thomas backed this up with history. From the Founding forward, Congress routinely handed trade regulation, including the power to impose import duties, to the executive branch. Courts upheld that arrangement every time it was challenged. “The power to impose duties on imports can be delegated,” Thomas wrote. He concluded, “Congress’s delegation here was constitutional.” That framing treats unlimited tariff authority the same way the Court treats other major questions — skeptically, demanding Congress speak clearly before the executive acts broadly.Thomas thinks that’s the wrong test applied to the wrong power. His reading of the original Constitution puts the executive branch in charge of foreign commerce. He argues the majority conflated two distinct constitutional functions and punished the president for Congress’s longstanding practice of handing him the wheel on trade.

In his own dissent, Justice Kavanaugh argued that the majority’s decision would lead to chaos. “The United States may be required to refund billions of dollars to importers who paid the IEEPA tariffs, even though some importers may have already passed on costs to consumers or others,” he wrote. Kavanaugh also noted that Trump used tariffs as leverage while making trading deals worth trillions of dollars, and that the court’s ruling “could generate uncertainty regarding those trade arrangements,” he wrote.

Read more …

“.. Thomas, who is the perhaps the single greatest living American ..”

Will We See a Supreme Court Vacancy (or Two) This Summer? (Josh Hammer)

Few things in Washington, D.C., generate as much as excitement and intrigue as a Supreme Court confirmation showdown. For decades, since the eponymous “borking” of then-Supreme Court nominee Bob Bork in 1987, political battles surrounding the membership of the nation’s high court have been among the most contentious and raucous of Beltway affairs. Which is why it’s rather curious that very few outside the most fervid of court-watchers seem to be discussing the distinct possibility that there could be one or two Supreme Court vacancies after the current term ends this summer.


Justice Samuel Alito is 75 years old — and will be 76 by the end of this term. Justice Clarence Thomas is 77 years old — and will be 78 by term’s end. Alito just celebrated 20 years of service on the high court, and Thomas would mark 35 years of service this October — nice round numbers. Alito has a forthcoming book set for release this October, around the start of the next Supreme Court term. That isn’t anywhere near dispositive — Justice Amy Coney Barrett published a book last September, and Justice Neil Gorsuch has released two books since he was confirmed to the court in 2017 — but it has certainly fed speculation.

Thomas and Alito are, by some order of magnitude, the two most principled conservative justices currently sitting on the high court. It stands to reason that they would like to be replaced by ideological fellow travelers — something that likely requires a likeminded president and a likeminded U.S. Senate majority. As the late Justice Antonin Scalia, who was very much an ideological fellow traveler, told Chris Wallace in a 2012 interview, “I would not like to be replaced by someone who immediately sets about undoing what I’ve tried to do for 25-26 years. I mean, I shouldn’t have to tell you that, unless you think I’m a fool.”

If there is one thing we can say with certainty about Thomas, who is the perhaps the single greatest living American, and Alito, who is perhaps the most authentic Burkean conservative on the high court, it is that they are decidedly not fools.

Republicans currently hold a 53-47 majority in the Senate. What’s more, they face a remarkably favorable map this November: The GOP is defending very few (if any) swing-state Senate seats, and it will have enticing Senate pickup opportunities in Georgia, Michigan, Minnesota and New Hampshire. But to paraphrase the old quip from former Israeli diplomat Abba Eban, Republicans oftentimes never miss an opportunity to miss an opportunity. Accordingly, the increasingly voluble scuttlebutt out of Washington is that there is a chance Democrats retake not merely the nearly evenly divided House, but the Senate as well. Those odds are below 50% — the online exchange Polymarket, for instance, currently places the GOP’s odds of retaining the Senate around 60% — but there is certainly a chance it happens.

That wouldn’t just spell doom for the final two years of President Donald Trump’s second term. It would be potentially calamitous for the future of the Supreme Court as well. Does anyone think that Sen. Chuck Schumer (D-N.Y.) and his Democratic caucus are not prepared to stall and refuse to confirm any prospective Trump nominee to the high court? (SET ITAL)Of course(END ITAL) they are prepared to do that. If Republicans lose the Senate this November and Thomas and Alito stick around through the 2028 presidential election, they will in essence be wagering on Republicans maintaining the White House and winning back the Senate.

Is that a risk worth taking? In fairness, it might be. Republicans have historically botched few things more than they have Supreme Court nominations — from Justices William Brennan (brought to us by President Dwight Eisenhower), Harry Blackmun (President Richard Nixon), and David Souter (President George H.W. Bush), to some of the more milquetoast Trump selections such as Barrett and Brett Kavanaugh. The track record is not exactly inspiring. And because Thomas and Alito are the two finest conservative jurists on the high court, there is little to no room for improvement, from a constitutionalist perspective — there can only be regression.

Nonetheless, in spite of the GOP’s woeful judicial nominations track record, there are plenty of outstanding potential justices-in-waiting. My former boss Judge James C. Ho of the U.S. Court of Appeals for the 5th Circuit, a former Thomas clerk, is likely the single most principled originalist of all current lower-court federal judges. His 5th Circuit colleague Andrew Oldham, a fellow stalwart, happens to have the corresponding symbolism of being a former Alito clerk. D. John Sauer, the outstanding current U.S. solicitor general, is a former Scalia clerk and a rapidly emerging dark horse contender. There are other possible rock-solid nominees as well.

Read more …

“..Democrats argue that requiring free voter photo IDs – even when the ID itself costs nothing – harms eligible voters by creating practical barriers to casting a ballot.

Virtually All Countries Support Voter Photo ID – So Why the Filibuster? (RCW)

“The bottom line is this: voter ID is not controversial in this country,” Harry Enten, the chief data analyst for CNN, recently reported. Nor is it controversial in virtually any other country in the world. Yet despite massive support among both Democrats (71%) and Republicans (95%), only one Democratic member of the House and one in the Senate are supporting the SAVE Act. Unless seven more of the 47 Senate Democrats step forward, their filibuster will kill the bill. Democrats argue that requiring free voter photo IDs – even when the ID itself costs nothing – harms eligible voters by creating practical barriers to casting a ballot. They contend that blacks would be especially hard hit. Interestingly, every country in Africa requires government-issued identification to vote.


They also argue that such requirements would disenfranchise Hispanic voters. Yet Mexico, all twelve South American countries, and Spain require government-issued photo IDs to vote. All of these countries have lower per-capita incomes than the United States. If citizens in those nations can obtain the necessary identification to vote, why would American Hispanics and blacks be unable to do the same? While 83% of American adults support requiring government-issued photo identification to vote, support is also strong among the very groups Democrats claim would be harmed: 82% of Hispanics and 76% of black Americans favor the requirement. Those figures suggest that most black and Hispanic Americans do not view obtaining a photo ID as the obstacle Democrats describe. Ten U.S. states have similarly strong photo ID requirements.

Democrats claim that women are disproportionately disenfranchised by voter IDs, but women are also strongly supportive of IDs and have exactly the same level of support as men.Democrats argue that voter ID requirements disproportionately disenfranchise people with the least education and lowest incomes. Yet, ironically, survey results show that voters who did not graduate from high school were 27 percentage points more likely to support photo voter ID laws than those who attended graduate school. Similarly, individuals earning less than $30,000 per year were seven percentage points more likely to support photo ID requirements than those earning over $200,000 annually.

The well-educated and higher-income individuals thus express more concern about the impact of ID laws on the less educated and lower-income groups than those groups express themselves.But it isn’t just South American countries and all of Africa that require voter IDs to vote. Both of our neighbors, Canada and Mexico, require them, with Mexico also requiring a thumbprint. All 47 European countries, except parts of the United Kingdom, require a government-issued photo ID .

After widespread vote fraud, Mexico enacted major voting reforms in 1991. The government mandated voter photo IDs with biometric information, banned absentee ballots, and required in-person voter registration. Even though these changes made registration more difficult and eliminated absentee voting, turnout increased after the reforms took effect. In the three presidential elections following the 1991 changes, an average of 68% of eligible citizens voted, compared with 59% in the three elections before the reforms. As confidence in the electoral process grew, more citizens chose to participate. Many countries in Europe and beyond have learned the hard way that fraud can result from looser voting regimes – and they have instituted stricter voting measures in direct response to it. In Northern Ireland, where a bitter sectarian conflict fuels hardball electoral tactics, parties on all sides have engaged in what observers describe as “widespread and systemic“ voter fraud. Both Conservative and Labour governments enacted reforms to curb it. In 1985, under the conservative Margaret Thatcher, the U.K. began requiring voters to show identification before receiving a ballot, but that measure did not solve the problem.

In 1998, a Select Committee on Northern Ireland reported that people could “easily forge” medical cards – accepted as ID under the 1985 law – or obtain them fraudulently, enabling non-existent individuals to cast votes. By 2002, the Labour government strengthened voter identification cards to make them far harder to forge and used the more secure IDs, along with additional rules, to stop people from registering multiple times. These anti-fraud measures immediately reduced total registrations by 11%, suggesting to Labour how extensive earlier fraud had been.

Read more …

“.. Even the state government of Florida (population 23 million) spends less than New York City’…,”

Washington Post Editorial Board Brutally Mocks Mamdani (ZH)

Margaret Thatcher once said, “The trouble with Socialism is that eventually you run out of other people’s money,” and New York City’s new socialist mayor, Zohran Mamdani, is learning just how right she was, and New Yorkers are going to pay a hefty price for it. On Tuesday, a mere two months after declaring he would “replace the frigidity of rugged individualism with the warmth of collectivism,” Mamdani announced a $127 billion preliminary budget for fiscal year 2027, a $5 billion increase from the prior year, while simultaneously warning residents of “painful” tax hikes if state officials refused to bail him out to cover his socialist policies.


“That’s a city budget bigger than the state budgets of 47 states. Even the state government of Florida (population 23 million) spends less than New York City’s,” explains The Washington Post editorial board. “And the state still managed to attract hundreds of thousands of New Yorkers in recent years.” “The reality is that Americans may like the idea of ‘free’ stuff — it’s how socialists win elections — but they are less excited about having to pay for it” they continued. “They’re even less excited when they live in a state that ranks at the very bottom of the Tax Foundation’s State Tax Competitiveness Index.”

During a press conference earlier this week, Mamdani called on New York Gov. Kathy Hochul to raise income taxes on the “ultra-wealthy” help fund his budget for New York City. “The onus for resolving this crisis should not be placed on the backs of working and middle-class New Yorkers,” Mamdani said. “If we do not fix this structural imbalance and do not heed the calls of New Yorkers to raise taxes on the wealthy, this crisis will not disappear. It will simply return, year after year, forcing harder and harsher choices each time. And if we do not go down the first path, the city will be forced down a second, more harmful path. Faced with no other choice, the city would have to exercise the only revenue lever fully within our own control. We would have to raise property taxes.”


Hochul rejected the tax hike demand without hesitation, telling Mamdani to expand his “ridiculously low” proposed spending cuts instead. Mamdani has claimed his administration identified $1.7 billion in cuts. The Post’s editorial board was not impressed, calling it a “laughable number.” “The reality is that Mamdani is trying to expand a city government that already does way too much,” they argued. “ The city should provide basic services, such as law and order, but instead it pours billions into social spending like housing and health care.” They even cited California as a cautionary tale, warning that in the Golden State, “a slew of billionaires are fleeing at the mere possibility of a wealth tax. They’ll avoid the wealth tax — and California will miss out on the billions that these individuals otherwise would have contributed before a wealth tax was even imposed.”

More experienced Democrats in New York understand this. Gov. Kathy Hochul, no one’s idea of a fiscal hawk, nevertheless instigated Mamdani’s tantrum by refusing to go along with more tax hikes. The city council speaker and comptroller also have sway and are skeptical of new taxes. This week, it was revealed that acclaimed director and filmmaker Steven Spielberg officially became a New York resident on January 1, effectively avoiding the billionaire tax—though a representative for Spielberg and his wife Cate Capshaw claimed the move was to be closer to family.

Mamdani’s pre-election promises — free buses, expanded child care, cash assistance, rental aid, and smaller class sizes for teachers’ unions — were crowd-pleasers that earned him “tax the rich” chants at campaign rallies. The problem is that governing a city with a structural deficit requires something more than slogans. His preliminary budget now acknowledges a $5.4 billion shortfall for the current fiscal year, with projections that worsen over time. “No one in New York is ambitious enough to dramatically reshape city government, and residents either vote for class warfare or vote with their feet. A reckoning will have to come eventually. The question is how bad it gets before reality sets in,” the board concluded.

Ouch.

Read more …

“.. Trump fixed the border, lowered crime, and now demands the same common-sense security at the ballot box..”

President Donald Trump Stands Victim of His Own Success (David Manney)

In the early days of the NBA, George Mikan was so dominant in the paint that the league had to redraw the court. Defenders couldn’t stop him, and coaches couldn’t scheme around him, so the league widened the lane to push him further from the basket. They changed the rules because one man kept winning under the old ones. That’s where we find President Donald Trump today. He clamped down on the southern border, ending the chaos so fast that the crisis faded from daily debate. He renewed the economy and strengthened national security. He slashed narcotics imports while driving the murder rates across the country.


Instead of arguing policy, opponents now look for ways to redraw the political court around him. They protest enforcement agencies, stage walkouts, and shift attention to anything except measurable results. When outcomes favor one side so decisively, critics often stop debating the scoreboard and start questioning the game itself. Migrant encounters fell to the lowest level in more than 50 years; Customs and Border Protection recorded just 237,538 encounters for all of fiscal year 2025. January 2026 brought only 6,070 southwest border apprehensions and marked the ninth straight month with zero releases into the interior. Nationwide encounters dropped 84% in January 2025, while seizures of fentanyl dropped sharply, too.

Violent crime falls to record lows
Nationwide, murder rates fell through the floor, as major cities saw homicides drop 19% to 21% in 2025 alone. The murder rate hit its lowest point since at least 1900, marking the largest one-year decline ever recorded. Robberies fell about 20%, aggravated assaults fell nearly 10%, and overdose deaths shrank as narcotics imports dried up.

National Guard restores order in the capital
In Washington, D.C., Trump declared a crime emergency in August 2025, launching the Make DC Safe and Beautiful Task Force and bringing in federal agents, local police, and National Guard troops. Since then, authorities made more than 10,000 arrests and taken more than 1,000 illegal guns off the streets. Once real help arrived, homicides dropped extremely fast. In 2017, Forlesia Cook lost her grandson to gun violence in Washington. She stood up at the White House Black History Month reception on Feb. 18 and looked critics straight in the eye. The room erupted in applause, and Trump urged her to run for office.

Save America Act highlights the deeper divide
The SAVE America Act requires documentary proof of U.S. citizenship to register to vote in federal elections and a photo ID to cast a ballot: Rep. Chip Roy (R-Texas) introduced the bill. President Trump pushes hard for its passage because nothing matters more than clean elections. The House passed it on Feb. 11. Polling shows roughly 75% to 84% of registered voters favor voter ID and proof of citizenship. Support cuts across Democrats, independents, black, and Hispanic Americans. Yet far-left politicians fight it tooth and nail; Senate Democrats, led by Chuck Schumer (D-N.Y.), vow to block it in the Senate, warning about voter suppression and arguing it harms women who changed their names (I-9 Forms for their jobs, anyone?) or low-income voters who lack

The deeper fear shines through: Secure elections could cut off loose votes some candidates rely on to stay in power. The loudest defenders of democracy often resist clear rules that strengthen it. It’s a familiar enough-looking pattern. Open-border policies under the previous administration flooded the country with millions of people and left voter rolls vulnerable. Record border crossings from 2022 through 2024 raised real questions about who votes. Officials looked the other way while colleges, courts, and much of the legacy media repeated the same, tired story. Trump fixed the border, lowered crime, and now demands the same common-sense security at the ballot box, reaching Americans directly through streaming platforms and rallies because old gatekeepers refuse to carry the message.

Democrats protest the very agents who deliver results
Democrats and the left (pardon the redundancy) limit every argument to that old chestnut: Calling Trump evil, while demanding that he suffer defeat and humiliation. They protest ICE agents who carry out the exact policies voters chose, ignoring the sealed border, safer streets, and stronger economy. Their big idea? Stage-side rallies or boycotts for the upcoming State of the Union Address set for Tuesday, Feb. 24. How convenient. ESPN commentator Stephen A. Smith, definitely not a Republican, spoke plainly, saying Democrats show zero sense of decorum. He said they put raw politics ahead of their own constituents by planning to skip or disrupt the president’s upcoming speech.

Trump’s ready to talk with anybody; he spends the time, shows the patience, and treats people with respect. The other side offers only venom because that’s all they have left, their old arguments collapsed years ago.

Read more …

“There is absolutely no room for bias in any kind of the CIA’s work..”

Biased Spies: John Ratcliffe Cleans House at the CIA (Manney)

A rare correction at Langley
CIA Director John Ratcliffe rescinded or revised 19 intelligence reports after determining they contained political bias and violated basic tradecraft standards. The President’s Intelligence Advisory Board reviewed around 300 reports from the past decade and flagged serious problems: 17 were permanently deleted, two were pulled, revised, and reissued. A senior CIA official told Just The News that the reports were initially flagged during a review by the President’s Intelligence Advisory Board, then reviewed by career agency officials before being retracted, recalled, or revised. “There is absolutely no room for bias in any kind of the CIA’s work,” the official said. “So when we find instances where our tradecraft did not reach that high bar of impartiality, we must correct the record. And that’s why we’re taking steps to reinforce analytic integrity by ordering the public release, substantive revision, or retraction of these products that do not meet CIA’s tradecraft standards.” The action stands out because a sweeping internal correction like this rarely occurs; intelligence agencies revise their analyses over time, but mass rescissions tied to political bias seldom occur in public.


Reports that read like activism
One report warned that women embracing traditional motherhood could drift toward violent extremism, with analysts describing motherhood as a white supremacist objective, suggesting that women sharing cooking videos or family values content could aid recruitment networks. The product relied heavily on open-source material rather than on classified intelligence collection. One was an Oct. 6, 2021, assessment titled “Women Advancing White Racially and Ethnically Motivated Violent Extremist Radicalization and Recruitment” that waded into “foreign political debates about gender roles rather discussing any actual threats of political violence,” the senior CIA official said.

It had labeled the far-right Canadian YouTuber Lauren Southern as a white racially and ethnically motivated violent extremist and spoke of the dangers such figures pose to societies — in addition to women pursuing traditional roles as mothers. A July 8, 2020 a CIA report also centered on family planning and the disruptions of condom supply chains worldwide using “unobjective sources of information such as Planned Parenthood,” the official noted. Another assessment from 2020 warned that birth control shortages during the pandemic would damage economic growth in Egypt, Nigeria, and Pakistan, using sources such as Planned Parenthood, the Guttmacher Institute, and Marie Stopes International. Another report from 2015 promoted LGBT academic programs in North Africa and the Middle East while criticizing conservative governments.Intelligence Community Directive 203 requires objectivity, independence, and avoidance of any political slant. Ratcliffe said the flawed reports fell short of the high standards the agency must uphold, stressing there’s no room for bias in intelligence analysis.

Directors and oversight
The January 2015 report was issued during the tenure of CIA Director John Brennan; the July 2020 report landed on the desk of CIA Director Gina Haspel; and the October 2021 motherhood report circulated while William Burns served as CIA Director. Each director presided over an agency required to enforce Directive 203’s standards of impartiality. None of the prior directors rescinded large batches of reports over bias concerns. Past intelligence controversies drew scrutiny; the 2002 National Intelligence Estimate on Iraq’s weapons of mass destruction, produced under George Tenet, later proved deeply flawed.

Read more …

“There’s a reason why Trump nicknamed him “Sloppy Steve.”

The Shattered Dreams of Steve Bannon (Scott Pinsker)

Until the impossible became possible — and Donald Trump engineered the political upset of his generation, toppling Hillary Clinton in 2016 — most Americans had no idea who Steve Bannon was. Visually, he wasn’t much to look at. Bannon wasn’t a workout wonder like RFK Jr., with six-pack abs, nor was he blessed with movie star good looks. Some guys were born with oodles of charisma — the kind of raw, undeniable magnetism that leaps off the screen. Bannon, alas, wasn’t one of those people. There’s a reason why Trump nicknamed him “Sloppy Steve.”


But after Trump was elected, the media hunted for an explanation. Surely a bumble-headed dunce like Trump couldn’t get elected president on his own! That’s impossible! So they searched high and low for the behind-the-scenes maestro who pulled all the strings — the shrewd strategist who orchestrated the single greatest political upset since Dewey Defeats Truman Truman Defeats Dewey. At which point, Steve Bannon leapt out of the shadows: Yup, I’m the genius. It was me all along! The media, quite naturally, ate it up:

And not without reason. As far as personal bios go, Bannon was an odd duck with a helluva story. He had military experience as a Navy officer. He was financially savvy enough to work at Goldman Sachs. He was clever enough to acquire a financial stake in Seinfeld (Bannon still receives residuals for Seinfeld reruns). He knew enough about conservative media to run Breitbart — a platform that had long championed Trump’s candidacy. And then he assumed command of Trump’s campaign in August of 2016, just in time to claim credit for the victory?Maybe he really was the maestro of it all!

Bannon, for very obvious reasons, worked feverishly to advance the narrative of “Steve Bannon, Political Genius.” Within the Trump White House, his media leaks became increasingly self-serving. Instead of leveraging media relations to elevate his boss or the MAGA mission, he sought to mythologize himself. It all culminated with Bannon losing his job in the White House and getting fired from Breitbart after he leaked negative information about Trump’s children to the fierce Trump critic, journalist Michael Wolff. Among the delightful headlines Bannon helped produce was Business Insider’s Jan. 3, 2018, story, “Steve Bannon Says Ivanka Trump Is ‘Dumb as a Brick’.” Trump responded in typically Trumpian fashion:

“Steve Bannon has nothing to do with me or my Presidency,” Trump said. “When he was fired, he not only lost his job, he lost his mind.” […] “Steve doesn’t represent my base — he’s only in it for himself,” Trump said. “Steve pretends to be at war with the media, which he calls the opposition party, yet he spent his time at the White House leaking false information to the media to make himself seem far more important than he was. It is the only thing he does well. Steve was rarely in a one-on-one meeting with me and only pretends to have had influence to fool a few people with no access and no clue, whom he helped write phony books.”

Today, of course, we know the truth: Steve Bannon didn’t control Trump — because NOBODY controls Trump. The very premise is preposterous. For better or worse, Donald J. Trump is his own man. He’s like a wild stallion — uncontrollable. Then in 2024, with Steve Bannon sidelined, Trump proved his point by winning the presidency once again — this time by an even greater margin. Turns out that Bannon was less the leader and more the luggage, because Trump did more to carry him than the other way around. That’s not to say Bannon is a dim bulb. Clearly, he’s an exceptionally bright man. Some of his political calculations are off-the-charts prescient, i.e. his April 2025 prediction that Cardinal Prevost would become the first American-born pope:

He’s also a man brimming with ambition. Just 40 days ago, Axios reported that Bannon was planning to run for president in 2028: “Former Trump White House adviser Steve Bannon is laying the groundwork for a 2028 run for president, two people familiar with his thinking tell Axios.” […] Former Rep. Matt Gaetz (R-Fla.), who has appeared on Bannon’s “War Room” podcast, said: “The Bannon campaign will merge the foreign policy of Rand Paul with the tax policy of Elizabeth Warren.” (Not sure if the MAGA base is clamoring for a Warren-Paul themed agenda, but whatever. Not my monkey, not my circus.) Either way, it’s a deeply damaging PR look. Setting up your own presidential bid barely a year into Trump’s term seems awfully arrogant and self-indulgent. That’s a poor plan for winning GOP hearts and minds.

[..] He’s a conspiracy peddler who denies conspiracies — while participating in conspiracies! No matter. The Epstein revelations were a deathblow to Bannon’s presidential ambitions. There’s ZERO demand in Republican circles for a 75-year-old Epstein-whisperer to replace Vance, Rubio, or anyone else as MAGA’s heir apparent. Because, the more we learned about Epstein, the more we realized that Steve Bannon isn’t a political savant, a super-genius, or a 4-D chess mastermind. He’s a lying, duplicitous, self-serving hypocrite who can’t be trusted. And that’s not a “coincidence” either. It’s causation.

Read more …

It looks easier from the outside.

When Does Accountability For The Deep State Begin? (Dornik)

We were told this time would be different. We were told that a second Trump administration would not repeat the mistakes of the first, that hard lessons had been learned, and that the Deep State would finally be confronted rather than tolerated. One year into President Trump’s second term, it is both fair and necessary to ask whether those assurances are being honored—not from hostility but from a sincere desire to see the America First agenda succeed, endure, and become irreversible.


President Trump’s first term, Congress squandered its moment. The first two years were consumed by infighting, hesitation, and internal paralysis, even with Republican control. Then came the midterms, control was lost, and meaningful legislative progress effectively ended. What followed were impeachment spectacles and relentless political warfare, while entrenched corruption inside the federal government remained untouched. Now, just past the first year of President Trump’s second term, the pattern feels disturbingly familiar. The urgency voters demanded is not being matched by the actions of those entrusted to deliver it.

The question that must be asked plainly is this: when is the Trump administration actually going to root out the Deep State?

Executive Orders are being signed at a rapid pace, but Executive Orders are not reform. They are temporary directives that can be erased with a single signature the moment someone like Gavin Newsom takes office. Without legislation, without prosecutions, and without accountability, nothing is secured. Power is being exercised, but it is not being anchored, and lasting change is never achieved that way.

Kash Patel built his credibility by telling the truth about corruption in Washington. His book and documentary, Government Gangsters, documented in detail how entrenched bureaucrats and intelligence officials worked against President Trump from within the federal government. He even came on my show and spoke openly about this corruption, and he stated repeatedly across multiple platforms that the FBI, particularly at its highest levels, was deeply compromised and required fundamental reform. He did not argue that the Bureau should be abandoned, but that it could not be trusted without aggressive leadership, restructuring, and accountability for the Deep State operatives within the bureau. He warned that the Deep State would never reform itself and would have to be confronted directly. He also told Glenn Beck that the head of the FBI possessed Jeffrey Epstein’s client list. These were not casual remarks. They were core assertions made publicly and repeatedly.

Now Kash Patel is the head of the FBI, and the public posture has shifted dramatically. The same institution he once described as captured is now treated as credible and restrained. The Epstein client list, once discussed as a known reality, is now dismissed as conspiracy, even as new Epstein-related documents continue to be released to the public over the protest of the Trump administration. Each document release raises more questions, not fewer, and every delay from federal law enforcement deepens public distrust rather than restoring confidence. A reversal this significant demands explanation. Trust is not rebuilt through silence, and credibility is not preserved by pretending prior statements were never made.

These questions extend far beyond the FBI and land squarely on the Department of Justice, where accountability appears to collapse the moment it threatens entrenched power. The removal of Ed Martin from his role inside the DOJ is not just a minor personnel decision; it appears to be a clear signal that real investigations into weaponization and lawfare are not being tolerated. Ed Martin was positioned to expose how the Biden Department of Justice targeted Americans, abused prosecutorial authority, and used federal power as a political weapon. According to Emerald Robinson, whose reporting has repeatedly exposed corruption others refuse to confront, Martin was removed from his position by the same people who refer to parents as terrorists: “Vance Day, senior counsel for Todd Blanche, refers to parents targeted by Biden DOJ as ‘terrorists’ in recent meeting with one parent asking for accountability. Blanche’s office also removed Ed Martin from his role at the DOJ.” That disclosure alone should alarm every American paying attention.

Parents who were targeted and persecuted by the Biden Department of Justice are now being labeled terrorists by senior DOJ leadership, while the man tasked with investigating that persecution is sidelined. Whether this is described as a firing or a demotion is irrelevant, because the outcome is the same. Another one of the good guys has been removed from doing the work voters were promised would finally drain the swamp. This is not an isolated incident or a misunderstanding but a pattern that repeats with disturbing consistency. Every time someone begins making real progress against the Deep State, authority is stripped, investigations are stalled, and momentum is deliberately crushed before accountability can be delivered.

So the questions must be asked: Where are the arrests? Where are the prosecutions? Why has Attorney General Pam Bondi not brought cases against members of the January 6 Committee despite documented misconduct and destroyed records? Why has the Department of Justice taken no action against Anthony Fauci even after Sen. Rand Paul issued criminal referrals? Why is the DOJ actively fighting to shut down Brook Jackson’s case against Pfizer instead of allowing it to proceed and standing with a whistleblower who exposed documented fraud? Why do Epstein-related documents continue to surface while no meaningful accountability follows? What happened to transparency, and what happened to equal justice under the law?

Read more …

Serious threats.

Susan Rice Warns Of ‘Accountability Agenda’ When Democrats Return To Power (JTN)

Former Democratic Ambassador to the United Nations Susan Rice warned corporations Thursday who have “taken a knee” to President Donald Trump and his administration that there would be repercussions when her party returns to power. The comment comes after The Late Show host Stephen Colbert accused CBS News this week of bowing to Trump by allegedly blocking the host from airing an interview with Texas state Rep. James Talarico, a Democrat who is running for the U.S. Senate. CBS has denied blocking the interview, which was posted to YouTube instead.


Rice insisted an “accountability agenda” was coming for the people and corporations who worked with the Trump administration if Democrats win back the majority in the House or Senate this November. “If these corporations think that the Democrats, when they come back in power, are going to play by the old rules, and, you know, say, ‘Oh, never mind. We’ll forgive you for all the people you fired, all the policies and principles you’ve violated, all, you know, the laws you’ve skirted.’ I think they’ve got another think coming,” she told former U.S. Attorney Preet Bharara.

Rice, who worked in the Obama and Biden administrations, claimed the corporations and other entities like universities acted in a “very short-term self-interest” when deciding to work with the administration in certain capacities. “Companies are already starting to hear they better preserve their documents,” she said. “They better be ready for subpoenas. If they’ve done something wrong, they’ll be held accountable, and if they haven’t broken the law, good for them. “This is not going to be an instance of, you know, forgive and forget,” she continued. “The damage that these people are doing is too severe to the American people and to our national interest.”

Read more …

”.. Rubio noted that documents leaked from inside the group outline ambitious plans to “kill Musk’s Twitter” and “trigger EU and UK regulatory action.”

Deporting Censorship: US Targets UK Government Ally Over Free Speech (Thaccker)

As ICE sweeps in Minneapolis have drawn wide attention, a little-noticed immigration case playing out in a New York federal court has significant implications for America’s relationship with Britain and the ongoing debate over global censorship.


In late December, the State Department announced its intention to revoke the visas of five foreign individuals who have allegedly censored Americans. The most consequential member of this group is Imran Ahmed, a British Labour Party political operative now living in the U.S., who is the CEO of an influential nonprofit, the Center for Countering Digital Hate.

In documents released Feb. 6 in federal court, the State Department claims Ahmed and the Center have been key players in efforts to censor Americans. A memo written by State Department Undersecretary Sarah Rogers asserts that “Ahmed was a key collaborator with the Biden administration on weaponizing the national security bureaucracy to censor U.S. citizens and pressure U.S. companies into censoring, and his group advocates for foreign regulatory action that extraterritorially impacts American citizens and companies.”

In a follow-up memo, Secretary Marco Rubio wrote that Ahmed had led efforts to censor Americans and harm U.S. media outlets, including ZeroHedge and The Federalist. “I have determined that Ahmed’s activities and presence in the United States have potentially serious adverse foreign policy consequences and comprise a compelling U.S. foreign policy interest.” Rubio asserted. While the Center casts itself as a disinterested nonprofit trying to stop online hate, Rubio noted that documents leaked from inside the group outline ambitious plans to “kill Musk’s Twitter” and “trigger EU and UK regulatory action.”

Ahmed has a small army of lawyers working to halt his deportation proceedings, which are now being litigated. Ahmed’s lead attorney is Roberta Kaplan – a former advisor to New York Gov. Andrew Cuomo – who sued President Trump on behalf of his niece, Mary Trump. Ahmed is also represented by Norm Eisen, a Democratic Party fundraiser and former advisor to Obama. Last Thursday, they filed an updated court complaint against the U.S. government to keep Ahmed in the United States.

International Implications
. The effort to deport Ahmed has broader political implications because of the close ties he and his associates have to the highest reaches of the British government. Morgan McSweeney, who co-founded the Center with Ahmed, is widely seen as the architect of Prime Minister Keir Starmer’s Labour Party victory in 2024. McSweeney served as Starmer’s chief of staff until earlier this month, when he resigned because of a separate scandal connected to Jeffrey Epstein.

U.K. government documents reviewed by RCI show that the organization’s influence extends throughout Starmer’s government. The Trump administration’s pushback on Ahmed’s weaponization of speech against U.S. citizens and companies suggests a deep concern about foreign intervention and censorship stemming from one of America’s closest allies.In a recent interview with Undersecretary Rogers, RCI noted that the State Department appeared to be “knocking on the door of the Prime Minister’s office.” Rogers demurred, declining to detail her discussion with Starmer officials. “We have a very special relationship with the British government,” she responded. “The issue has been communicated.”

Senior Labour Minister Chi Onwurah accused the Trump administration of attacking free speech after Rubio announced shortly before Christmas that the administration was seeking Ahmed’s deportation. “Banning people because you disagree with what they say undermines the free speech the administration claims to seek,” Onwurah said, adding that Ahmed was an articulate advocate for greater regulation of online speech. However, internal British government documents show that Onwurah is one of Starmer’s many advisors who have been working with Ahmed on activities many consider censorship..

Read more …

 

 

 

 

 

 

Support the Automatic Earth in wartime with Paypal, Bitcoin and Patreon.

 

 

 

 

 

Aug 082020
 


Alfred Palmer Annette del Sur in salvage campaign, Douglas Aircraft Co., Long Beach, CA 1942

 

55% Of COVID Patients Still Have Neurological Problems 3 Months Later (MW)
US Intel: China Opposes Trump Reelection; Russia Works Against Biden (NPR)
US Officials Now Worry About Election Logistics More Than Hacking (R.)
Trump Tees Up Executive Orders On Economy But Won’t Sign Yet (Hill)
Can An Airline Put You On A No-Fly List For Refusing To Mask Up? (NPR)
The WeChat Ban (China Collection)
China Allows First Commercial Bank To Go Bankrupt (Xinhua)
Democratic Convention Lineup To Include AOC, Clinton, Warren (Hill)
Dems VP Candidate Susan Rice Made a Lot of Money in Fossil Fuels (Jacobin)
Billionaires That Donated to Gates-Buffet Pledge Now Richer Than Ever (MPN)
Things Going By (Jim Kunstler)
Your Bones Are Made Out of Exploded Stars (Fut.)
Dow Skyrockets After Coronavirus Begins Trading On NYSE (Onion)

 

 

US “intelligence” is at it again. Russia, China, Iran are all spying, but they take care of us. Now fork over more money for your security. Has there ever been a bigger scam in history?

 

 

Can we get those numbers down please?! All of them!

 

 

 

 

 

 

 

 

 

 

 

 

At first I thought this was a parody account.

Adam, we’re stil waiting for all the evidence you said you had time and again of collusion. Why not show us that and then after maybe open your mouth again. It’s to do with credibility.

 

 

What happens when a large segment of them have this for life? What are the costs to them, to society, and to the health care system?

55% Of COVID Patients Still Have Neurological Problems 3 Months Later (MW)

Could the coronavirus lead to chronic illness? While lung scarring, heart and kidney damage may result from COVID-19, doctors and researchers are starting to clock the potential long-term impact of the virus on the brain also. Younger COVID-19 patients who were otherwise healthy are suffering blood clots and strokes. And many “long-haulers,” or COVID-19 patients who have continued showing symptoms for months after the initial infection passed, report neurological problems such as confusion and difficulty concentrating (or brain fog), as well as headaches, extreme fatigue, mood changes, insomnia and loss of taste and/or smell.= Indeed, the CDC recently warned that it takes longer to recover from COVID-19 than the 10- to 14-day quarantine window that has been touted throughout the pandemic.

In fact, one in five young adults under 34 was not back to their usual health up to three weeks after testing positive. And 35% of surveyed U.S. adults overall had not returned to their normal state of health when interviewed two to three weeks after testing. Now a study of 60 COVID-19 patients published in Lancet this week finds that 55% of them were still displaying such neurological symptoms during follow-up visits three months later. And when doctors compared brain scans of these 60 COVID patients with those of a control group who had not been infected, they found that the brains of the COVID patients showed structural changes that correlated with memory loss and smell loss.

And that’s not exclusive to adults. A case study published in JAMA Neurology in June highlighted four U.K. children with multisystem inflammatory syndrome, a severe and potentially fatal condition that appears to be linked to COVID-19. These children developed neurological manifestations such as headaches, muscle weakness, confusion and disorientation. While two of the kids recovered, the other two continued to show symptoms, including muscle weakness so severe that they needed a wheelchair.

Read more …

The US pays huge salaries to its various intelligence agencies so they can make up stories from whole cloth that can then be used to argue that we must spend more money on intelligence.

This is so incredibly vapid it’s hard to see why people don’t tell them to stick it where the sun don’t shine.

“2020 will be the most protected and most secure election in modern history…” Yeah, just not from you…

US Intel: China Opposes Trump Reelection; Russia Works Against Biden (NPR)

The top counterintelligence official in the U.S. government warned Friday of ongoing interference and influence efforts by China, Russia and Iran. William Evanina, who leads the National Counterintelligence and Security Center, said that the U.S. government has assessed that China prefers President Trump losing the election, because Beijing considers him “unpredictable,” while Russia is working to undermine Democrat Joe Biden. “Ahead of the 2020 U.S. elections, foreign states will continue to use covert and overt influence measures in their attempts to sway U.S. voters’ preferences and perspectives, shift U.S. policies, increase discord in the United States, and undermine the American people’s confidence in our democratic process,” Evanina said.

In discussing tactics, Evanina noted that the countries could try to compromise election equipment either to affect results or give the illusion of tampered results, but he did not say that such activities have been observed. China has grown more aggressive in recent months, criticizing the U.S. response to the coronavirus, although Evanina noted that Beijing continues to weigh the “risks and benefits of aggressive action” when it comes to influencing the election. Russia, however, has been observed using a number of tactics, including spreading propaganda on social media and Russian television, to denigrate Biden, the former vice president and presumptive Democratic nominee.

Iran also seeks to spread disinformation online, with the intent to undermine U.S. institutions and Trump, and to divide the country ahead of the election, according to Evanina. The statement did not refer to any specific cyberattack attempts on the part of any of the three countries in the style of Russia in 2016. And Evanina noted that it would be difficult, due to the disparate nature of America’s election infrastructure, to affect vote tallying at scale. Similarly, Chris Krebs, the Department of Homeland Security’s top cybersecurity official, said in a speech this week that his team had seen “nothing at the directed, focused level of 2016.” The year “2020 will be the most protected and most secure election in modern history,” Krebs said.

In a joint statement, Rep. Adam Schiff, D-Calif., who leads the House Intelligence Committee, and House Speaker Nancy Pelosi, said the disclosure was a good step toward more transparency, but they expressed frustration at how Evanina lumped the countries’ actions together. Instead, the lawmakers said, intelligence officials should share more specific information to “allow voters to appraise for themselves the respective threats posed by these foreign actors, and distinguish these actors’ different and unequal aims, current actions, and capabilities.” “Unfortunately, today’s statement still treats three actors of differing intent and capability as equal threats to our democratic elections,” the lawmakers said.

In a statement, Tim Murtaugh, a spokesman for the president’s reelection campaign, said: “We don’t need or want foreign interference, and President Trump will beat Joe Biden fair and square.” In a separate statement, Tony Blinken, a senior adviser to the Biden campaign, said: “Joe Biden … has led the fight against foreign interference for years, and has refused to accept any foreign materials intended to help him in this election — something that Donald Trump and his campaign have repeatedly failed to do.”

Read more …

More pushing for mail-in ballots.

US Officials Now Worry About Election Logistics More Than Hacking (R.)

In a reversal from a few years ago, many officials who oversee U.S. election technology and outside security experts now worry less about hacking in the November elections than about misinformation and logistics such as a shortage of poll workers and slowdowns at the U.S. postal service. Though most computerized voting systems can be hacked, some undetectably, more states have moved away from paperless balloting and more vendors are listening to warnings about software flaws, longtime specialists told the annual Black Hat and Def Con security conferences this week. “We finally know how to do this well,” Georgetown University professor Matt Blaze said in a keynote at Black Hat, held online this year because of the pandemic.

In addition, the sheer number of jurisdictions and varied versions of software would make fraud with a national impact impractical, officials said. On Friday, the U.S. head of counterintelligence, William Evanina, said publicly that while Russia, China and Iran might all act to interfere in the election, substantial vote changes were a low risk. U.S. Senator Ron Wyden, an Oregon Democrat who sits on the intelligence committee, said at Def Con he remained concerned about electronic pollbooks that could malfunction and internet voting by armed forces overseas. But Blaze and others said they were mainly worried that many localities do not have enough funding for election-day workers to handle in-person votes under pandemic conditions, with possible protests and disruptions, at the same time as they plan for a record number of mailed ballots.

Christopher Krebs, director of the Cybersecurity and Infrastructure Security Agency, said people should vote as early as possible and prepare for delayed election results. Any delay is likely to be fertile ground for misinformation both foreign and domestic, others warned. A Def Con panel including Kimber Dowsett, director of security engineering at Truss, said instead of flagging new voting machine flaws to an already cynical public, researchers should talk to Krebs’ agency and the vendors and hope for the best.

Read more …

There will be no agreement.

Trump Tees Up Executive Orders On Economy But Won’t Sign Yet (Hill)

President Trump said Friday that he is prepared to act unilaterally to reinstate expanded unemployment benefits and suspend the payroll tax due to the coronavirus, but signaled he wouldn’t do so immediately. Trump told reporters that his administration is working “in good faith” to reach an agreement on the next stimulus package with Democratic leaders, before lambasting House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Charles Schumer (D-N.Y.) for seeking funding for states and cities that he said have been mismanaged by Democratic politicians. “If Democrats continue to hold this critical relief hostage, I will act under my authority as president to get Americans the relief they need,” Trump said during a hastily scheduled news conference at his golf club in Bedminster, N.J., on Friday evening.


Trump said he is prepared to take four actions without Congress: defer the payroll tax until the end of the year; enhance unemployment benefits until the end of the year; defer student loan payments and forgive interest indefinitely; and reinstate a federal moratorium on evictions. Asked for a timeline, Trump said he could act as soon as the end of the week. The president also insisted he has the legal authority to take the actions unilaterally, despite doubts about his ability to do so. Trump also acknowledged that the moves were likely to invite legal challenges. “You always get sued,” Trump said. “We’ll probably get sued.”

Read more …

Yes, they’re private companies. You buy a ticket under their conditions.

Can An Airline Put You On A No-Fly List For Refusing To Mask Up? (NPR)

Early this week, Delta Air Lines made news after a plane headed to Atlanta circled back to its gate in Detroit, delaying takeoff. The crew was returning to expel two passengers who had been unwilling to follow a new but quintessential coronavirus rule. They had refused to don masks. That transgression is the latest addition to a bevy of infractions that can get you booted from an aircraft — even before contagion racked our world. Those no-nos vary wildly in severity and how often they’re enforced, but the theoretical gamut is wide: from a joke about, say, hijacking, to smoking a cigarette … all the way to more serious acts like transporting illegal contraband like guns or drugs.

[..] When it comes to the new rules for the novel coronavirus, airlines like Delta are taking them very seriously. So far, the carrier has banned 100 anti-maskers from taking their flights and gone a step further by adding them to a “no fly” list. Delta says its strict policies about masking are part of an effort to promote best public health practices and safety amid the pandemic. In a statement provided to NPR, Delta wrote: “Medical research tells us that wearing a mask is one of the most effective ways to reduce the COVID-19 infection rate.” The airline “remains committed to requiring customers and employees to wear a mask or face covering as a consistent layer of protection across all Delta touchpoints.”

And it’s not just Delta. All major U.S. airlines now require passengers to wear face coverings — a dramatic change to plane etiquette. Children under age 2 and slightly older children who cannot maintain a face covering are exempt from the requirement on Delta and other airlines. Adults are generally permitted to remove a mask only when eating or drinking, though policy varies. Though the scientific consensus is clear and strong that masks are critical in stemming the spread of the virus, some consumers feel aggrieved by what they consider an attack on personal freedom. But according to aviation, health and legal experts, such outrage ignores a few fundamentals: In entering into agreements (read: contracts) with airline carriers (by purchasing a ticket), you’re required to adhere to their policies. And that pretty much ends the matter.

In other words, Delta’s no-fly list is perfectly within its scope of rights, experts stress. The legal reasoning is pretty straightforward, says Sharona Hoffman, co-director of Case Western Reserve University’s Law-Medicine Center. She puts it simply: “They’re a private business, and private businesses can have rules.”

Read more …

What I said yesterday, but in more words.

The WeChat Ban (China Collection)

The ban on WeChat will not cut people in the US off from their friends and family in China. They communicated before WeChat existed and will continue to do so if it’s banned. There are many quite serviceable alternatives. And who exactly is bigger in the banning business, anyway? I’m seeing a lot of what seem to me to be overwrought reactions to the WeChat ban on my Twitter feed. For example, when the ban was first mooted by Pompeo, Stuart Lau of the South China Morning Post tweeted that if it went through, “countless Chinese people who live in the US could be cut off from their friends and families in China, where WhatsApp or Facebook Messenger is banned.” Two points:

First, can we please remember that before WeChat existed, people somehow managed to communicate between the US and China, and it wasn’t difficult? At this very moment, there are a number of ways that it can be done: telephone calls, text messages, email, WhatsApp, Signal, and let’s not forget QQ, another TenCent app that does basically everything WeChat does in terms of communication, and used to be widely used in China before it was supplanted by WeChat. So before you tell me that people won’t be able to communicate with friends and family in China any more, you need to explain (a) why what they did before WeChat won’t work any more, and (b) why none of the communications methods I’ve mentioned above won’t work any more. I get that WeChat has many convenient functions and a great interface that people like. That’s why it’s been so successful. But come on, people: the idea that banning it cuts off communication between people in the US and China is silly.

Second, let’s suppose for the sake of argument (but only for the sake of argument) that banning WeChat did indeed seriously impinge on the ability of people to communicate between the US and China. Where does the fault lie, causally speaking? To figure that out we need to ask why alternatives are not available, and who is responsible for that. Two alternatives are (as the Stuart Lau post notes) Whats App and Facebook Messenger. There is also Line, a communications app that is widely used in Japan and Taiwan, with over 700 million users worldwide by 2017, according to the Wikipedia entry. But they are all banned in China. So it is a bit hard to say that it is the ban on WeChat that is making communications difficult. The Chinese government is the one that is actively in the banning business, and they’ve got a big head start on the Trump administration.

Read more …

Amidst the first (re-appearing) rumors of dollar shortages in the country.

China Allows First Commercial Bank To Go Bankrupt (Xinhua)

China’s central bank has announced that the disposal of risks concerning the troubled Baoshang Bank will be completed soon, and the bank will file for bankruptcy. Equity and unsecured claims from its original shareholders will be liquidated by law, according to a report released by the People’s Bank of China (PBOC) on Thursday. The PBOC and the China Banking and Insurance Regulatory Commission took over the Inner Mongolia-based commercial bank in May last year due to its “serious credit risks.”


With capital from deposit insurance funds and the PBOC, principal and interest on personal savings deposits, and those of most institutional creditors, are guaranteed the full amount, while large corporate deposits are guaranteed an average level of 90 percent, the report said. After the takeover, the PBOC arranged for 23.5 billion yuan (about 3.39 billion U.S. dollars) in a standing lending facility (SLF) quota for Baoshang Bank on the premise of enough high-quality collateral.

Read more …

Apart from AOC, it’s the same old same old crowd that lost bigly in 2016. Most of them are way past retirement age in any other job. But the lust for power is eternal.

And who do you think they’re going to talk about most?

Democratic Convention Lineup To Include AOC, Clinton, Warren (Hill)

The speaking lineup for this month’s Democratic National Convention is beginning to take form, with several high-profile Democrats securing spots. Rep. Alexandria Ocasio-Cortez (D-N.Y.), a progressive superstar, is expected to have some sort of speaking slot, a House member told Politico, and Sen. Elizabeth Warren (D-Mass.) and 2016 presidential nominee Hillary Clinton will also speak, according to Axios. Warren and Clinton are reportedly slated to speak on Aug. 19, the day before former Vice President Joe Biden will formally accept the 2020 Democratic nomination. Other Democrats expected to have speaking slots are Biden’s wife, Jill Biden, Speaker Nancy Pelosi (D-Calif.), Sen. Kamala Harris (D-Calif.) and Barack and Michelle Obama.


Both Warren and Harris are known to be on Biden’s shortlist to be his running mate. Neither the Democratic National Committee nor the convention immediately responded to requests for comment from The Hill. The convention has largely been relegated to digital events so participants can observe social distancing and other health guidance during the ongoing coronavirus pandemic. Biden was originally slated to deliver his acceptance speech from Milwaukee, but will now do so virtually from Delaware, his home state.

Read more …

Just another multi-millionaire who raked in fortunes while providing “public service”.

Dems VP Candidate Susan Rice Made a Lot of Money in Fossil Fuels (Jacobin)

Former national security adviser Susan Rice, reportedly one of two finalists in Joe Biden’s vice presidential search, had millions invested in fossil fuels and energy companies as recently as 2015. The revelations come as Biden has faced renewed questions about his commitment to environmental policies that would combat climate change. A financial disclosure form obtained by Too Much Information reveals that Rice had investments in at least five such companies, including as much as $100,000 in TransCanada, which is behind the controversial Keystone XL pipeline. Rice also had over $1 million invested in pipeline firm Enbridge as well as more than $2 million split between fossil fuel companies Cenovus, Encana, and Imperial Oil — all companies with significant involvement in developing the tar sands of Alberta.

The investments netted as much as $237,000 in dividends that year. In addition, Rice reported significant holdings in Canadian banks which fund pipeline projects, according to the disclosure. A veteran of multiple Democratic administrations, Rice has a traditionally impressive resume on paper. She worked as a consultant for McKinsey & Co. before serving as assistant secretary of state for African affairs under Bill Clinton, UN ambassador under Barack Obama, and national security adviser. But her record has made her a controversial candidate for VP. Pledged delegates for Vermont Sen. Bernie Sanders have urged Biden to avoid naming her to the ticket, and have also urged him to remove a number of other foreign policy hawks from his team. Among other things, the delegates cited her past support for military intervention in Iraq, Libya, and Syria.

On Friday, environmental advocates criticized Rice’s past fossil fuel investments in a Politico report. In 2012, when Rice was a candidate to succeed Hillary Clinton as secretary of state, environmentalists took aim at her for the holdings, even circulating a petition urging Obama not to select her. Even then, Rice, whose net worth with her husband was estimated to be between $23.5 million and $43.5 million, had significant investments in Canadian energy interests, including as much as $600,000 in TransCanada. She also owned stock in Enbridge, Encana, Cenovus, and Suncor, along with other fossil fuel companies like Chesapeake Energy, Devon Energy, Royal Dutch Shell, Iberdrola, ATP Oil & Gas Corp., and energy utility TransAlta. Rice would hardly be the first person with fossil fuel ties that Biden has brought onboard this cycle. Biden’s climate adviser, Heather Zichal, previously served on the board of a natural gas company, Cheniere Energy.

Read more …

Have you ever trusted a billionaire? They only get so rich by wanting ever more money. That doesn’t stop all of a sudden.

Billionaires That Donated to Gates-Buffet Pledge Now Richer Than Ever (MPN)

A study released by the Institute for Policy Studies (IPS) through its Program on Inequality and the Common Good, titled “Gilded Giving 2020: How Wealth Inequality Distorts Philanthropy and Imperils Democracy” examines the reality behind the ostensible charitableness of the billionaire donor class and the disturbing trend of charitable organizations and foundations relying more and more on fewer and fewer wealthy donors; funds which “end up in family foundations and donor-advised funds that could legally exist in perpetuity,” while donations from lower and middle-income sources are disappearing. In particular, the paper looks at The Giving Pledge initiative started in 2010 by a few dozen U.S. billionaires and led by Bill Gates and Warren Buffet.


The professed goal of the initiative was to have the wealthiest people in the world pledge to give at least half of their fortunes away to charitable causes before their death. The study found that contrary to the stated purpose of the philanthropic commitment of the organization, a full 75 percent of participants have actually increased their net worth in the ten years since they made their charitable vow. More concerning is the finding that a growing share of “high-end” donations never ends up in organizations that do any kind of altruistic work. Rather, they go to tax-privileged private foundations designed to serve as tax shelters for the very wealthy, which then only disburse a small percentage of their assets to charitable non-profits; a particularly galling fact considering how much more wealthy the one-percenters have gotten over the course of the pandemic in contrast to the 54 million Americans who’ve filed for unemployment in that same span of time.

Read more …

“[..] who needs an online class in Contemporary Sexual Transgression ($2000-a-credit) when you can just click on Porn-hub for free?

Localize!

Things Going By (Jim Kunstler)

Higher education committed suicide with its dual racketeering model. First was the college loan racket, in which schools colluded with the federal government to jam too many “customers” through the pipeline who didn’t belong there, and who buried themselves under a lifetime debt obligation they could never escape. The second was the intellectual racket of creating sham fields of study that contaminated all the other “humanities” with poisonous bullshit theory, and eventually even invaded the STEM disciplines. Covid-19 screwed the pooch on all that, scotching the four-year party-hearty in-residence part of the deal. For now, who needs an online class in Contemporary Sexual Transgression ($2000-a-credit) when you can just click on Porn-hub for free? Hundreds of colleges and universities will be going out of business in the years ahead.

The outlook for the big centralized high schools is also pretty dark. The teachers’ unions’ insatiable needs are only part of the picture. Consolidating many smaller schools to save on administrative costs seemed like a good idea at the time. But we ended up with thousands of gigantic schools that looked like insecticide factories and felt like minimum security prisons. They all depend on the costly yellow bus fleets to collect the kids from far and wide. The whole scheme ended up as an elaborate day-care operation that actually retarded the development of young people into functional, autonomous adults.

Covid-19 and the economic collapse it triggered will put an end to all that. How will the school districts cope with an epic loss of tax revenue from all the homeowners defaulting on their mortgages? They won’t. Schooling will have to reorganize, and probably at a very grassroots level, with home-schools evolving into neighbor-pods of tiny schools, and only among parents who have the literacy and numeracy to pull it off. We’ll be lucky if, years from now, we’ll see something like local academies spring up that can handle a few hundred students. I’d also warn you about assuming that the Internet is a permanent installation of the human condition. It depends utterly on a pretty fragile electric grid. We do, after all, have libraries, and maybe they can be persuaded to stop trying to get rid of all their books.

Read more …

Didn’t we already know we’re stardust? That some of it is calcium makes a lot of sense.

Your Bones Are Made Out of Exploded Stars (Fut.)

According to new research, half the calcium in our universe came from “calcium-rich supernova.” That means the stuff our teeth and bones is made from is, essentially, the remains of dead stars that blew up a long, long time ago. “These events are so few in number that we have never known what produced calcium-rich supernova,” said Wynn Jacobson-Galan, Northwestern graduate student and lead author of the new study published in The Astrophysical Journal this week, in a statement. “By observing what this star did in its final month before it reached its critical, tumultuous end, we peered into a place previously unexplored, opening new avenues of study within transient science,” Jacobson-Galan added.

An extremely bright event some 55 million light years from Earth grabbed the attention of the international astronomy community in April 2019. “Every single country with a prominent telescope turned to look at this object,” Jacobson-Galan recalled. Astronomers were so quick that many observed the supernova just ten hours after the explosion. “The explosion is trying to cool down,” Raffaella Margutti from Northwestern University and a senior author of the study, explained in the statement. “It wants to give away its energy, and calcium emission is an efficient way to do that.” As it turns out the explosion spewed out an immense amount of calcium. “It wasn’t just calcium rich,” Margutti said. “It was the richest of the rich.”

They caught the event just in time to conclude that it was the most calcium to have ever been observed to be emitted from just a single event. “The luminosity tells us how much material the star shed and how close that material was to the star,” Jacobson-Galan explained. “In this case, the star lost a very small amount of material right before it exploded. That material was still nearby.”

Read more …

“This is an unusually strong stock, and we are predicting it will see at least six months of straight gains, probably more.”

Dow Skyrockets After Coronavirus Begins Trading On NY Stock Exchange (Onion)

With investors highly bullish about the long-term prospects of the respiratory virus, market reports confirmed Friday the Dow Jones Industrial Average skyrocketed nearly 400 points after the novel coronavirus began trading on the New York Stock Exchange. “Following its initial public offering, this coronavirus has become the hot new thing on Wall Street, and you can bet everyone will be getting a piece of it soon if they haven’t already,” said Darya Abbas, an analyst at Zacks Investment Research, observing that the SARS-CoV-2 virus, which is listed under the ticker symbol COV, traded at incredibly high volumes throughout the day. “This is an unusually strong stock, and we are predicting it will see at least six months of straight gains, probably more. Not since the original SARS in 2003 have we seen an airborne pathogen with such massive growth potential.” At press time, the coronavirus was reportedly in talks to take part in a major merger with Johnson & Johnson.

Read more …

 

 

We try to run the Automatic Earth on donations. Since ad revenue has collapsed, your support is now an integral part of the process.

Thank you.

 

 

 

 

 

 

Speed reading

 

 

 

 

Support the Automatic Earth in virustime.

 

Aug 012020
 


Inge Morath Street Corner at World’s End London 1954

 

100s Of Georgia Campers Infected With Corona At YMCA Camp In Days – CDC (WSB)
College Students Who Get Tested Every Two Days Can Return To Campus Safely (F.)
Visiting People At Home Banned In Parts Of Northern England (BBC)
Nassim Nicholas Taleb on the Pandemic (Sav)
Trump Says Will Ban TikTok Through Executive Action As Soon As Saturday (CNBC)
US Dollar Net Shorts Soar To Highest In Nine Years (R.)
Eurozone Economy Records Its Deepest Contraction On Record In Q2 (R.)
The End of Housing as We Know It (TNR)
Judge Rips Into Ghislaine Maxwell As Sealed Documents Begin To Emerge (McC)
US Appeals Court Delays Release Of Ghislaine Maxwell Deposition (R.)
UK Government Refuses To Release Information About Assange Judge (DecUK)
When the Going Gets Weird, the Weird Get Punked (Kunstler)
The Triumph Of Small People In An Era Of Great Events (Turley)
Susan Rice’s Testimony on Being Out of Russiagate Loop Doesn’t Add Up (RCI)

 

 

WHO posted a new record, Worldometer is 195 cases short. Numbers remain stubbornly high. US deaths at 1462 vs two consecutive days of 1465. No progress.

 

 

 

 

 

 

 

 

 

 

 

 

Taleb WHO 1

Taleb 2

 

 

“We’ve confirmed YMCA Camp High Harbor is the un-named camp in new @CDCgov camp outbreak investigation. 51% of campers ages 6-10 contracted COVID19.”

100s Of Georgia Campers Infected With Corona At YMCA Camp In Days – CDC (WSB)

A CDC report released Friday reveals that hundreds of campers at a north Georgia YMCA camp were infected with coronavirus in just days before the camp was shut down. Channel 2 Action News has confirmed that the report documents COVID-19 cases at the YMCA’s Camp High Harbor on Lake Burton in Rabun County. According to the report, of the 597 residents who attended the camp, 344 were tested and 260 tested positive for the virus. The camp was only open for four days before being shut down because of the virus, and officials followed all recommended safety protocols. In total, the virus attacked 44% of the children, staff members and trainees who attended the camp.

The CDC said that what happened at High Harbor shows that earlier thinking that children might not be as susceptible to COVID-19 is wrong. According to the report, the age group with the most positive coronavirus tests was 6 – 10 years old. Under Gov. Kemp’s executive orders, overnight summer camps in Georgia were allowed to open on May 31. All campers and staff members had to test negative for the coronavirus before attending. Channel 2 Action News first reported on June 24 that a teenage counselor at the camp tested positive for the virus. Camp officials started sending campers home on June 24 and shut the camp down on June 27. Camp Harbour’s second location at Lake Allatoona in Bartow County was also closed.

“The counselor… passed the mandated safety protocols and screening, inclusive of providing a negative COVID-19 test, before arriving at camp and did not exhibit any symptoms upon arrival,” officials said. “In fact, all counselors and campers attending passed all mandatory screenings.” The Georgia Department of Public Health (DPH) was notified and initiated an investigation. DPH recommended that all attendees be tested and self-quarantine, and isolate if they had a positive test result. By July 10, 85 campers and staff members had tested positive. “These findings demonstrate that SARS-CoV-2 spread efficiently in a youth-centric overnight setting, resulting in high attack rates among persons in all age groups, despite efforts by camp officials to implement most recommended strategies to prevent transmission,” the report said.

Read more …

Until the first one comes in infected.

College Students Who Get Tested Every Two Days Can Return To Campus Safely (F.)

A study published today says that college students living on campus can be kept safe from contracting the coronavirus if they are tested every two days for Covid-19. The study pegs the cost at $470 per student per semester. Published in the Journal of the American Medical Association’s Open Network, the study was authored by researchers from the Yale School of Public Health, Harvard Medical School and Massachusetts General Hospital. One interesting finding: Even when tests aren’t 100% accurate, if they are given with the study’s recommended frequency, they ensure a safe environment for students. The researchers used a computer simulation where they took a hypothetical pool of 4,990 healthy students and exposed them to 10 students infected with the virus.

They assumed that students would be on campus for an abbreviated 80-day semester, which is the plan at many schools that have said they are reopening campuses. The study also said students who test positive should quarantine in an isolated setting. The model assumed that students would strictly follow safety precautions like frequent handwashing, wearing masks indoors, “limited bathroom sharing with frequent cleaning, dedensifying campuses and classrooms and other best practices.” But the study’s lead author, A. David Paltiel, a professor at Yale’s school of public health, says he and his team also took into account the fact that students would occasionally deviate from safety protocols. “Colleges aren’t going to be able to create a hermetically sealed, walled garden,” he says.

“We assumed that once in a while students would go to a face-to-face party or a dining hall worker who traveled on the subway would come into contact with a student or somebody would cough on a student.” Even with occasional exposure, getting a rapid-response test every two days would make it safe for students to live on campus, he says. In the Boston area, inexpensive, quick-turnaround nasal swab tests are being made available from the Broad Institute of MIT and Harvard. The tests will be provided at cost, for $25-$30 each. Schools will administer the tests and the institute will process them within 24 hours.

Read more …

But they can meet up in the pub?!

Visiting People At Home Banned In Parts Of Northern England (BBC)

Millions of people in parts of northern England are now facing new restrictions, banning separate households from meeting each other at home after a spike in Covid-19 cases. The rules impact people in Greater Manchester, east Lancashire and parts of West Yorkshire. The health secretary told the BBC the increase in transmission was due to people visiting friends and relatives. Labour criticised the timing of the announcement – late on Thursday night. Health Secretary Matt Hancock told BBC Breakfast the government had taken “targeted” action based on information gathered from contact tracing, which he said showed that “most of the transmission is happening between households visiting each other, and people visiting relatives and friends”.


The new lockdown rules, which came into force at midnight, mean people from different households will not be allowed to meet in homes or private gardens. They also ban members of two different households from mixing in pubs and restaurants, although individual households will still be able to visit such hospitality venues. The changes come as Muslim communities prepare to celebrate Eid this weekend, and nearly four weeks after restrictions were eased across England – allowing people to meet indoors for the first time since late March. The same restrictions will apply in Leicester, where a local lockdown has been in place for the last month. However, pubs, restaurants and other facilities will be allowed to reopen in the city from Monday, as some of the stricter measures are lifted.

Read more …

Simple is elegant.

Podcast: https://www.econtalk.org/nassim-nicholas-taleb-on-the-pandemic/

Nassim Nicholas Taleb on the Pandemic (Sav)

On Societal Risk There’s a big difference between risks that simply lead to different outcomes and risks of ruin, particularly on the systemic level. We should be worrying about multiplicative risks — such as pandemics. On the other hand, car accidents are not a societal risk of ruin, as car accidents don’t lead to other car accidents. If you found out that 1 billion people died in a single year, and didn’t know how, your guess wouldn’t be car accidents. It would be something fat-tailed like nuclear war or pandemics. It’s worthwhile figuring out what the systemic risks that we should be avoiding are — it liberates us and allows us to take lots of risks elsewhere.

On Personal Risk If you don’t behave conservatively, you’ll increase collective risk dramatically because risk due to pandemics doesn’t scale linearly. You wear a mask more for the systemic effect, not to mitigate personal risk. Prudence on the individual level may seem like ‘overreacting’, and it would be ‘rational’ not to overreact. However, it’s important to note that rationality doesn’t scale; what’s rational for the collective may seem irrational for you personally. People doing the right thing will look irrational.

How to Deal With Pandemics Any infectious disease with over 1000 deaths can be considered a pandemic. If the count is below that, you don’t have to worry about it. If above, it means you’re dealing with a fat-tailed event. Treat all pandemics the same way — the moment they kill 1000, take measures. The most effective way to prevent pandemics is to do systemic quarantine. Follow a protocol and don’t take chances — it was foolish to quarantine people only coming from China, as the virus could have came from anywhere (and it did). Reduce connectivity. Close borders. You don’t need cases at 0, just make sure that the cases don’t overwhelm your system. Identify superspreaders. Subways, elevators, big gatherings, things like that. Do this for all pandemics, no matter how impactful, until we figure out the specific properties of the one we’re dealing with.

Absence of Evidence ≠ Evidence of Absence For example, if you have no evidence of cases, it doesn’t mean you have no cases. Or if you have no evidence that masks work, it doesn’t mean that masks don’t work. Err on the side of prudence when dealing with risks of ruin. “If you don’t know if masks work, wear them.”

The central idea of the Incerto is: when you have uncertainty in a system, it makes your decision making much much easier rather than harder. “If I tell you that I’m not certain about the quality of this water, would you drink it?” “If I tell you that we have uncertainty about the pilot’s skills — he could be excellent, but we’re not sure — would you get on the plane?”

The WHO Initially, WHO, CDC, and others said not to wear masks. The WHO made two mistakes. First, they didn’t realize scaling: if the probability of infection is p, if both people wear masks it becomes p squared. For example, if p=0.50, both people wearing a mask would lower p to 0.25. Second mistake: if I reduce the viral load by half, I don’t decrease probability of infection by half — I may decrease it by 99%. That’s because the probability of infection is nonlinear — it’s an S-curve. In addition, they lied because they were worried about a mask shortage. People’s instincts were much better than what the WHO, CDC, etc advised. “All of these people are completely incompetent when it comes to basic things that your grandmother gets.” Have the WHO removed — it’s a bureaucratic organization that has been harmful to mankind by telling people not to wear masks.

Read more …

Good thing for him that schoolgirls don’t vote.

Trump Says Will Ban TikTok Through Executive Action As Soon As Saturday (CNBC)

President Donald Trump on Friday told reporters he will act as soon as Saturday to ban Chinese-owned video app TikTok from the United States, NBC News reported. Trump made the comments while chatting with reporters on Air Force One during the flight back to Washington from Florida. “As far as TikTok is concerned we’re banning them from the United States,” Trump said, calling the action a “severance.” Trump did not specify whether he will act through an executive order, or another method. such as a designation, according to NBC News. “Well, I have that authority. I can do it with an executive order or that,” Trump said.


Trump’s comments come as it was reported Friday that Microsoft has held talks to buy the TikTok video-sharing mobile app from Chinese owner ByteDance, one person close to the situation told CNBC. This person characterized the talks as having been underway for some time, rather than being brand new. Trump told reporters that he didn’t support the reported spinoff deal involving Microsoft buying TikTok, NBC News reported. A TikTok acquisition could make Microsoft, a major provider of business software, more concentrated on consumer technology, which Microsoft has moved away from somewhat in recent years, by exiting the smartphone hardware, fitness hardware and e-book markets.

Read more …

The casino is open and the house always wins.

US Dollar Net Shorts Soar To Highest In Nine Years (R.)

Speculators’ net short U.S. dollar positioning soared to the highest level since August 2011, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday. The position hit $24.27 billion in the week ended July 28, up from $18.81 billion the prior period. U.S. net shorts rose for a fourth straight week as bets against the greenback have persisted since mid-March. U.S. dollar positioning was derived from net contracts of International Monetary Market speculators in the Japanese yen, euro, British pound, Swiss franc as well as the Canadian and Australian dollars. In a wider measure of dollar positioning that includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real, and Russian ruble, the U.S. dollar posted a net short position of $24.53 billion, compared with net shorts of $19.37 billion the week before.


This week’s net short position was largest since April 2018, according to Reuters data. In contrast, net euro longs hit a record high, CFTC data showed. Net euro longs were 157,559 contracts this week. The greenback has struggled over the last few months, driven by factors including near-zero interest rates as well as Federal Reserve measures that flooded the international market with dollars via swap lines. The buck was down about 10% from the year’s high hit in March against a basket of currencies. On Friday the dollar fell to its lowest in more than two years. “The combination of falling real rates and rising risk assets has been a dominating force across markets over the past few months, which has likely contributed to the dollar sell-off over the same period,” said Goldman Sachs in a research note on Friday.

Read more …

And with the euro surging vs the USD, the EU economy is crashing.

Forget about the inflation talk, velocity of money is in the gutter. Sure some prices may rise for a bit, everyone’s trying to stay alive. But who has the money left to afford the higher prices? Or better yet: who will by Christmas?

Eurozone Economy Records Its Deepest Contraction On Record In Q2 (R.)

The euro zone’s economy recorded its deepest contraction on record in the second quarter, preliminary estimates showed on Friday, while the bloc’s inflation unexpectedly ticked up in July. In the months from April to June, gross domestic product in the 19-country currency bloc shrank by 12.1% from the previous quarter, the European Union’s statistics office Eurostat said in its flash estimates. The deepest GDP fall since the time series started in 1995 coincided with coronavirus lockdowns which many euro zone countries began to ease only from May. The contraction was slightly more pronounced than market expectations of a 12.0% fall, and followed the 3.6% GDP drop recorded in the first quarter of the year.

Among the countries for which data were available, Spain posted the worst output slump, with its economy shrinking by 18.5% quarter-on-quarter, worse than expected and wiping out all the post-financial crisis recovery of the last six years. GDP in Italy and France also fell sharply but less than forecast, respectively by 12.4% and 13.8%. Germany, the largest economy in the bloc, saw a 10.1% contraction in the second quarter, worse than expectations of a 9.0% slump. Inflation continued instead its upward trend, defying expectations of a slowdown, supporting the European Central Bank’s expectation that a negative headline reading may be avoided. Eurostat said consumer prices in the bloc rose 0.4% on an annual basis in July from 0.3% in June and 0.1% in May. Economists polled by Reuters had forecast a 0.2% increase in July.

Underlying price pressure also accelerated. Excluding volatile food and energy prices, a key measure watched by the ECB, inflation rose by 1.3% from 1.1% in June, Eurostat’s flash estimates showed. An even narrower gauge, which also excludes alcohol and tobacco, jumped to 1.2% from 0.8% in June. The acceleration in headline inflation was driven by higher prices of industrial goods which rose by 1.7% after a 0.2% increase in June. Food, alcohol and tobacco prices went up by 2.0% on the year, but slowed from the 3.2% rise recorded in June. Energy prices fell by 8.3% in July, after plunging 9.3% in June.

Read more …

The bottom is falling out.

The End of Housing as We Know It (TNR)

In 2018, 44 percent of New York renter households paid at least 30 percent of their incomes on rent. Half of those were severely rent-burdened, spending more than half of their incomes on housing. Relief is also hard to come by: For a family of three earning less than $30,720 a year—a household that would be classified by the city as “extremely low income”—there are 650 applications for each apartment in the affordable housing lottery. This was before the pandemic. In the months since, an untold number of New York’s working-class immigrants have lost their jobs, with some social service organizations in the city reporting that upward of 90 percent of their immigrant clients are out of work, according to a study by the Center for an Urban Future.

The city comptroller’s office found that 900,000 fewer New Yorkers reported working in May than in February, with job losses mostly concentrated among people of color and young people. Now, with temporary protective measures like rent moratoriums lasting only through the end of the pandemic and enhanced unemployment benefits set to expire (and with millions of undocumented immigrants shut out of many of those protections in the first place), New York City is on the brink of a new phase of its long-festering housing crisis. “They do not have to worry about what we have been through,” Ramirez, who has been on rent strike with other tenants in her building since March, said of the big landlords who own buildings like hers. “They do not worry about what their children are going to eat, what they are going to do, what is going to happen with that.”

[..] A recent report by Americans for Tax Fairness shows that the wealth of New York’s billionaires increased by $77 billion from March to June. Juxtapose that obscene accumulation of wealth to the $9 billion deficit New York City is facing for the 2020-2021 fiscal year. Despite this, Governor Andrew Cuomo balked at calls to tax the wealthy to fill the shortfall that might result in cutbacks to vital services and, after public pressure, offered a mere $100 million in relief through the State Division of Housing and Community Renewal. And instead of providing support for renters, New York City Mayor Bill de Blasio approved a budget that cuts investment in affordable housing by 40 percent.

Read more …

Nice set of names. Let the denials emerge.

Judge Rips Into Ghislaine Maxwell As Sealed Documents Begin To Emerge (McC)

A much-anticipated batch of newly unsealed documents from a settled defamation suit began trickling out Thursday night over the objections of Ghislaine Maxwell, the British socialite accused of sex trafficking and alleged to be the madam of disgraced financier Jeffrey Epstein. In a 2015 e-mail Epstein advised Maxwell to return to the high-society world the two had inhabited without any shame. “You have done nothing wrong and i would urge you to start acting like it,” Epstein wrote. “[G]o outside, head high, not as an escaping convict. go to parties. deal with it.” Maxwell, awaiting trial in a federal prosecution, had delayed the planned release of the documents from a 2015 civil suit by filing objections at the last minute, provoking the ire of U.S. District Judge Loretta Preska. The judge ruled last week that the documents should be unsealed.

“The Court is troubled — but not surprised — that Ms. Maxwell has yet again sought to muddy the water as the clock clicks closer to midnight,” Preska wrote in a filing denying a request from Maxwell’s lawyers for an emergency phone conference. They argued, unsuccessfully, that the documents threaten her defense and complained she had already been convicted by the media. The judge had allowed two key depositions to be exempt from release while Maxwell filed an appeal Thursday with the 2nd Circuit Court of Appeals. But Preska ordered a second large tranche of documents from the case settled in 2017 unsealed and released Thursday night.

[..] That same transcript also names people who traveled with Epstein. While many of the names have been publicly linked to Epstein before, seeing them in the context of the document was jarring. Giuffre tells of celebrities traveling with Epstein like magician David Copperfield, model Naomi Campbell, former Sony Records President Tommy Mottola and Alexandra Cousteau, granddaughter of the famed undersea explorer Jacques Cousteau. Giuffre also provides a sworn statement about former President Bill Clinton visiting Epstein’s Little St. James Island. “When you say you asked him why is Bill Clinton here, where was he?” Giuffre was asked in her deposition, answering, “On the island.”

In the newly released 24-page transcript of “Document 16,” Giuffre added that two young girls from New York and Maxwell were on the island at the same time as Clinton, who has denied any improper relations. So have the numerous men she identified. The earlier documents also included the names of a number of men whom Giuffre said she and other victims were directed to have sex with, including former U.S. Sen. George Mitchell, former New Mexico Gov. Bill Richardson, Hyatt hotels magnate Tom Pritzker, the late scientist Marvin Minsky, modeling scout Jean-Luc Brunel, and prominent hedge fund manager Glenn Dubin.

Read more …

Well, she has one win. But it’s Pyrrhic.

US Appeals Court Delays Release Of Ghislaine Maxwell Deposition (R.)

The 2nd U.S. Circuit Court of Appeals issued the order after last-ditch scrambles by Maxwell to keep potentially embarrassing information, which her lawyer said could make it “difficult if not impossible” to find an impartial jury, out of the public eye. Maxwell’s appeal will be heard on an expedited basis, with oral argument scheduled for Sept. 22. Her deposition had been taken in April 2016 for a now-settled civil defamation lawsuit against the British socialite by Virginia Giuffre, who had accused Epstein of having kept her as a “sex slave” with Maxwell’s assistance. Dozens of other documents from that case were released late on Thursday, after the presiding judge concluded that the public had a right to see them.= The release of Maxwell’s deposition had been scheduled for Monday, pending the outcome of the appeal.


[..] In seeking to keep Maxwell’s deposition sealed, her lawyers said in court papers on Thursday she had been promised confidentiality by Giuffre’s lawyers and the presiding judge at the time, through an agreed-upon protective order, before answering many personal, sensitive and “allegedly incriminatory” questions about her dealings with Epstein. They said further that Maxwell was blindsided when prosecutors quoted from the deposition in her indictment, and accusing Giuffre of leaking the deposition to the government. In a court filing on Friday, Giuffre’s lawyers called Maxwell’s appeal “frivolous, and a transparent attempt to further delay the release of documents to which the public has a clear and unequivocal right to access.” The lawyers also called the allegation Giuffre leaked the deposition “completely and utterly false.”

Read more …

This is not about something being rotten IN the state, this is a rotten state. It’s the core.

UK Government Refuses To Release Information About Assange Judge (DecUK)

The United Kingdom’s Ministry of Justice is blocking the release of basic information about the judge who is to rule on Julian Assange’s extradition to the US in what appears to be an irregular application of the Freedom of Information Act, it can be revealed. Declassified has also discovered that the judge, Vanessa Baraitser, has ordered extradition in 96% of the cases she has presided over for which information is publicly available. Baraitser was appointed a district judge in October 2011 based at the Chief Magistrate’s Office in London, after being admitted as a solicitor in 1994. Next to no other information is available about her in the public domain.

Baraitser has been criticised for a number of her judgments so far concerning Assange, who has been incarcerated in a maximum security prison, HMP Belmarsh in London, since April 2019. These decisions include refusing Assange’s request for emergency bail during the Covid-19 pandemic and making him sit behind a glass screen during the hearing, rather than with his lawyers. Declassified recently revealed that Assange is one of just two of the 797 inmates in Belmarsh being held for violating bail conditions. Over 20% of inmates are held for murder. Declassified has also seen evidence that the UK Home Office is blocking the release of information about home secretary Priti Patel’s role in the Assange extradition case.

A request under the Freedom of Information Act (FOIA) was sent by Declassified to the Ministry of Justice (MOJ) on 28 February 2020 requesting a list of all the cases on which Baraitser has ruled since she was appointed in 2011. The MOJ noted in response that it was obliged to send a reply within 20 working days. Two months later, on 29 April 2020, an information officer at the HM Courts and Tribunals Service responded that it could “confirm” that it held “some of the information that you have requested”. But the request was rejected since the officer claimed it was not consistent with the Constitutional Reform Act. “The judiciary is not a public body for the purposes of FOIA… and requests asking to disclose all the cases a named judge ruled on are therefore outside the scope of the FOIA,” the officer stated.

A British barrister, who wished to remain anonymous, but who is not involved with the Assange case, told Declassified: “The resistance to disclosure here is curious. A court is a public authority for the purposes of the Human Rights Act and a judge is an officer of the court. It is therefore more than surprising that the first refusal argued that, for the purposes of the FOIA, there is no public body here subject to disclosure.” The barrister added: “The alternative argument on data doesn’t stack up. A court acts in public. There is no default anonymity of the names of cases, unless children are involved or other certain limited circumstances, nor the judges who rule on them. Justice has to be seen to be done.”

Read more …

“..selling postcards of the hanging..”

When the Going Gets Weird, the Weird Get Punked (Kunstler)

The election itself is another front in this undeclared civil war. How exactly did the Democratic Party come to settle on a candidate with no credible capacity to serve as president? Who is Joe Biden fronting for, and who do they think they’re fooling? How can he possibly deliver an acceptance speech three weeks from now without giving away the game? That will be something to see — but I doubt we will actually see it. If the Dems don’t switch him out, there is no way Mr. Biden can survive the three-month homestretch of an election campaign. He can barely make it through a ten-minute appearance in front of twenty-three hand-picked partisans in a TV studio. Life imitates art, as Oscar Wilde tartly observed. The Manchurian candidate is truly here.


Mr. Barr is quite correct when he avers that an election by mail-in ballots is an invitation to fraud. The parallel campaign by the news media to ramp up extra hysteria over the corona virus is designed to ensure that scam. Keeping kids out of school is another angle on it, to plant a narrative that parents can’t possibly leave the house to go to a polling station. Wait for it. The result would be an election that can’t be resolved even by the Supreme Court. What will happen then? I’ll tell you how it goes: Donald Trump will stand aside and yield to the military, to some general or committee of generals, and the country will be under martial law until the election is sorted out or re-run. And by then, the election may be the least of our problems, with tens of millions out-of-work, out-of-business, penniless, homeless, and hungry. That’s when they’ll truly be selling postcards of the hanging, as the old song goes. Then comes America’s Bonaparte moment. Yes, things can get that weird.

Read more …

“..the hearing had as much class as a demolition derby..”

The Triumph Of Small People In An Era Of Great Events (Turley)

Winston Churchill said, “The best argument against democracy is a five minute conversation with the average voter.” If he knew members of the House Judiciary Committee, he could have cut that time in half, as they might convince people that democracy is a failed experiment. The hearing with Attorney General William Barr had been long awaited for weeks as a way to get answers on issues ranging from the controversial clearing of Lafayette Park, to the intervention in the case of Roger Stone, to the violence across various cities. Instead, the public watched as both parties engaged in hours of primal scream therapy, with Barr for the most part forced to remain as silent as some life size anatomical doll. The videos shown by the rival parties captured the utter absurdity of the day.

Republicans played what could only be described as eight minutes of virtual “riot porn” for the hard right. By the end, one would think much of the nation is a smoking dystopian hellscape. Democrats then played their alternate reality video showing thousands of protesters chanting together in perfect harmony. Add a soundtrack to the scene and you would have a soda commercial. There was nothing in the middle: either the protests are either our final Armageddon or the Garden of Eden. After testifying recently on the Lafayette Park controversy, I was one of those who had great expectations for answers to significant questions. Instead, Democrats dramatically demanded answers and then stopped Barr from answering by immediately “taking back the time.” It happened over and over during the hearing. Democrats simply did not want to hear any answers that would undermine the popular narratives.

Several Democrats insisted the clearing of Lafayette Park was for the sole purpose of a photo for President Trump in front of Saint John Church. Barr sought to explain that there was no connection between the plan formed the weekend before and the photo, but he was stopped by members like Hank Johnson saying “you clearly will not answer the question” before he could even start to answer. It got more and more bizarre. Barr was repeatedly cut off by Democrats, while Republicans, who have done the same thing to witnesses in other hearings, raged against their colleagues. The result was mayhem. While Barr sarcastically referred to Jerrold Nadler as a “real class act” after Nadler refused a request for a break, the hearing had as much class as a demolition derby.

Read more …

Lying under oath?!

Susan Rice’s Testimony on Being Out of Russiagate Loop Doesn’t Add Up (RCI)

Rice insisted she knew nothing about the FBI’s counterintelligence probe regarding Trump and Russia, let alone anything that could be characterized as spying on the incoming administration. She had her lawyer, Kathryn Ruemmler, write a letter to Sens. Charles Grassley, Dianne Feinstein, Lindsey Graham, and Sheldon Whitehouse. “While serving as National Security Advisor, Ambassador Rice was not briefed on the existence of any FBI investigation into allegations of collusion between Mr. Trump’s associates and Russia,” Ruemmler wrote, “and she later learned of the fact of this investigation from Director Comey’s subsequent public testimony” – testimony that didn’t occur until March 20, 2017 On Wednesday, September 8, 2017, Rice repeated that she knew nothing of the FBI’s investigation while in the White House. This time she made the claim under oath.


Rice was at the Capitol, sitting in a secure room used by the House Permanent Select Committee on Intelligence. The official reason for the interview was to ask what the Obama administration had done to thwart Russian efforts to interfere in the 2016 presidential election. Behind those questions was a different query: Had Barack Obama’s team used the power of the presidency to spy on and smear the Trump campaign? With the expectation of facing unfriendly questions, Rice arrived with two attorneys from the law firm Latham & Watkins. The Republican staffer running the interview emphasized to Rice the importance of telling the truth: “You are reminded that it is unlawful to deliberately provide false information to members of Congress or staff.” She was asked to raise her right hand and take an oath: “Madam Ambassador, do you swear or affirm that the testimony you’re about to give is the truth, the whole truth, and nothing but the truth?” “I do,” Rice said.

[..] Comey told Horowitz that in August 2016 “he did mention to President Obama and others at a meeting in the Situation Room that the FBI was trying to determine whether any U.S. person had worked with the Russians in their efforts to interfere in the 2016 U.S. election.”“[A]lthough [Comey] did not recall exactly what he said,” Horowitz writes, “he may have said there were four individuals with ‘some association or connection to the Trump campaign.’” This revelation failed to strike anyone at the meeting as remarkable: “Comey stated that after he provided this information, no one in the Situation Room responded or followed up with any questions.” [..] Comey provided Horowitz with a list of those at the meeting. The inspector general shares that list in footnote 194 to his report: President Obama was there, as well as his chief of staff, Dennis McDonough; also present were James Clapper, John Brennan, Michael Rogers and Susan Rice.

Read more …

 

 

We try to run the Automatic Earth on donations. Since ad revenue has collapsed, your support is now an integral part of the process.

Thank you.

 

 

 

 

 

 

Support the Automatic Earth in virustime.

 

Jul 312020
 
 July 31, 2020  Posted by at 10:08 am Finance Tagged with: , , , , , , , , , , ,  19 Responses »


Elliot Erwitt California 1955

 

Young Children Carry Much Higher Viral Load Than Other Age Groups (SD)
Tokyo Could Declare Emergency If Situation Worsens (R.)
China Reports 127 New Coronavirus Cases, Highest Since March 5 (R.)
Netherlands Refuses To Mandate Mask Wearing In Public (ZH)
Australia To Make Facebook, Google Pay For News In World First (R.)
The Grifters, Chapter 1 – Kodak (Ben Hunt)
Trader Joe’s Won’t Change Packaging On International Food Brands (JTN)
Michael Flynn Case To Be Reheard By Full US Appeals Court (R.)
Kamala Harris’s Record On Antitrust & White-Collar Crime (TMI)
What Does Susan Rice Bring to a Biden Ticket? (Lee Smith)

 

 

New global daily cases record, and global deaths are creeping up again. As are deaths in the US and many European countries, Hong Kong, China, Japan. This ain’t over.

 

 

 

 

 

 

 

 

 

 

 

 

Varon

 

 

A new surprise every day.

Young Children Carry Much Higher Viral Load Than Other Age Groups (SD)

A study from Ann & Robert H. Lurie Children’s Hospital of Chicago discovered that children younger than 5 years with mild to moderate COVID-19 have much higher levels of genetic material for the virus in the nose compared to older children and adults. Findings, published in JAMA Pediatrics, point to the possibility that the youngest children transmit the virus as much as other age groups. The ability of younger children to spread COVID-19 may have been under-recognized given the rapid and sustained closure of schools and daycare during the pandemic.

“We found that children under 5 with COVID-19 have a higher viral load than older children and adults, which may suggest greater transmission, as we see with respiratory syncytial virus, also known as RSV,” says lead author Taylor Heald-Sargent, MD, PhD, pediatric infectious diseases specialist at Lurie Children’s and Assistant Professor of Pediatrics at Northwestern University Feinberg School of Medicine. “This has important public health implications, especially during discussions on the safety of reopening schools and daycare.”


Dr. Heald-Sargent and colleagues analyzed 145 cases of mild to moderate COVID-19 illness within the first week of symptom onset. They compared the viral load in three age groups — children younger than 5 years, children 5-17 years and adults 18-65 years. “Our study was not designed to prove that younger children spread COVID-19 as much as adults, but it is a possibility,” says Dr. Heald-Sargent. “We need to take that into account in efforts to reduce transmission as we continue to learn more about this virus.”

Read more …

Japan has been doing quite well so far. Opening up may not be a good idea.

Tokyo Could Declare Emergency If Situation Worsens (R.)

Tokyo Governor Yuriko Koike warned on Friday that the Japanese capital could declare a state of emergency if the coronavirus situation deteriorated further, after new cases jumped by a record single-day high of 463. “If the situation worsens, Tokyo would have to think about issuing its own state of emergency,” Koike said, imploring residents to follow health guidelines to avoid that happening.

Read more …

Xi is nervous.

China Reports 127 New Coronavirus Cases, Highest Since March 5 (R.)

China reported 127 new coronavirus cases on the mainland on July 30, up from 105 the previous day, the country’s health authority said on Friday, the highest daily number since March 5. Of the total, 112 were in the far northwestern region of Xinjiang, up from 96 a day earlier. Another 11 were in Liaoning province in the northeast, up from five the previous day. There were four new imported coronavirus cases on July 30, compared to three a day earlier, while the number of new asymptomatic coronavirus carriers stood at 11, down from 21 on the previous day. China has reported a total of 84,292 coronavirus cases by the end of July 30.

Read more …

First, they had no masks or tests, so they told the people these were not needed. Then when all neighbors went in lockdown, they had their “intelligent” lockdown. Now they say no masks, but they will “experiment” with mask requirement in busy places. Confuse people enough and they will turn their backs on you. And all this nonsense about wearing masks outside makes people do worse than turn their backs.

Meanwhile cases there are rising again. So much for the flat curve.

This “mask refusal” was based largely on a report from a Norwegian scientist, who as soon as he saw he was quoted, said: my report says no such thing! But it doesn’t really matter: as soon as masks became a political issue, they were lost.

Something I hadn’t seen before: “Mask-wearing may also prompt people to touch their face more frequently”. Haha, No, masks were supposed to PREVENT people from touching their faces, remember?

Netherlands Refuses To Mandate Mask Wearing In Public (ZH)

American public health experts, led by Dr. Anthony Fauci, have struggled over the past couple of months to push a specific narrative on the public: Wearing a mask doesn’t so much protect you from being infected with SARS-CoV-2, but if you are infected, wearing a mask could stop you from passing the virus to someone else. The mainstream media has backed up these assertions with vague references to “science” and “research”, while a coalition of celebrities and progressive activists have tried to tar anybody who doubts this narrative – or, worse, refuses to wear a mask at all times outside their home – as a “denier”. Well, if everybody who is skeptical of the “masks save lives, period” is a “denier”, then how does one explain the Dutch government’s decision to refuse to mandate mask wearing (the only place where masks must be worn in the Netherlands is on public transit).

On Thursday, Reuters reported that the Dutch government had decided the day before that it would not advise the public to wear masks to slow the spread of coronavirus because their effectiveness has not yet been proven. The decision was announced by the Netherlands Minister for Medical Care Tamara van Ark following a review by the country’s National Institute for Health. Following a resurgence in cases over the past week or so, the Dutch government has decided it will instead seek better adherence to social distancing rules. “Because from a medical perspective there is no proven effectiveness of masks, the Cabinet has decided that there will be no national obligation for wearing non-medical masks” Van Ark said.


[..] The Dutch government insists that it’s strictly following the advice of the experts in the so-called Outbreak Management Team, which doesn’t believe in the general use of masks. Dutch virologist Jaap van Dissel from the National Institute for Public Health and the Environment said Wednesday that masks can lead to a “false sense of security”. When wearing masks, people might not follow other social distancing rules like keeping their distance which also help prevent spread. Mask-wearing may also prompt people to touch their face more frequently, putting them at risk of accidentally infecting themselves while adjusting their masks.

Read more …

What good is it if they’re the only one?

Australia To Make Facebook, Google Pay For News In World First (R.)

Australia will force U.S. tech giants Facebook and Alphabet Inc’s Google to pay Australian media outlets for news content in a landmark move to protect independent journalism that will be watched around the world. Australia will become the first country to require Facebook and Google to pay for news content provided by media companies under a royalty-style system that will become law this year, Treasurer Josh Frydenberg said. “It’s about a fair go for Australian news media businesses. It’s about ensuring that we have increased competition, increased consumer protection, and a sustainable media landscape,” Frydenberg told reporters in Melbourne. “Nothing less than the future of the Australian media landscape is at stake.”


The move comes as the tech giants fend off calls around the world for greater regulation, and a day after Google and Facebook took a battering for alleged abuse of market power from U.S. lawmakers in a congressional hearing. Following an inquiry into the state of the media market and the power of the U.S. platforms, the Australian government late last year told Facebook and Google to negotiate a voluntary deal with media companies to use their content. Those talks went nowhere and Canberra now says if an agreement cannot reached through arbitration within 45 days the Australian Communications and Media Authority would set legally binding terms on behalf of the government. Google said the regulation ignores “billions of clicks” that it sends to Australian news publishers each year.

Read more …

What an insane story this is.

The Grifters, Chapter 1 – Kodak (Ben Hunt)

On Tuesday afternoon, the White House announced that Kodak – a public company with less than $100 million in market cap, basically a pension fund with a famous brand name attached – would receive $765 million in “loans” from the US government to create a “pharmaceutical start-up” that over a period of 8 YEARS will start making pharmaceutical “supplies”. Whatever the hell that means. This $765 million in non-recourse, non-secured loans for pharmaceutical supply production, given to this micro-cap company with zero experience or expertise in pharmaceutical supply production, comes from the International Development Finance Corporation (DFC), a $60 billion piggy bank established by the Trump administration in 2019 to replace the Overseas Private Investment Corporation (OPIC).

Yes, “international development” and “overseas investment”. The DFC is an institution that, per its mission statement and Congressional charter via the 2018 Better Utilization of Investments Leading to Development (BUILD) Act, is “focused on promoting inclusive economic growth in the world’s least developed countries.” I mean … I knew things were bad in Rochester, but I didn’t know they were that bad. To dust off an old Epsilon Theory catchphrase: They’re. Not. Even. Pretending. Anymore. Who is “they”? On the corporate-grift side, it’s Kodak Chairman and CEO Jim Continenza, who picked up about 3 million shares and cheap options over the past year. It’s Kodak board member George Karfunkel, of the private equity and banking Zyskind-Karfunkel family, with his 6.4 million shares. It’s Kodak board member Philippe Katz, who owns about 4.3 million shares through at least five shell companies.


Based on yesterday’s closing price of $33.20 for the stock, I figure Jim and George and Philippe have made about $400 million over the past 48 hours. The numbers looked even better when Kodak hit $53 earlier earlier in the day, but easy come, easy go.

Read more …

Goya, Red Bull, Trader Joe’s.

Trader Joe’s Won’t Change Packaging On International Food Brands (JTN)

The popular U.S. grocery chain Trader Joe’s says it won’t retire the packaging name on some of its international products – including one called Trader José’s – amid a petition to change the names because of their “racist” connotation. “A few weeks ago, an online petition was launched calling on us to “remove racist packaging from [our] products,” Trader Joe’s said Friday on its website. “Following were inaccurate reports that the petition prompted us to take action. We want to be clear: we disagree that any of these labels are racist. We do not make decisions based on petitions. “We make decisions based on what customers purchase, as well as the feedback we receive from our customers and Crew Members. If we feel there is a need for change, we do not hesitate to take action.”


Trader Joe had suggested earlier this month that it might change the name on some packaging, but apparently held firm amid the poll and a resurgence of so-called “cancel culture,” in which people and entities are being forced to apologize or amend statements or actions deemed racially or culturally insensitive. The Change.org petition was reportedly started by California high school senior Briones Bedell and as of Thursday had roughly 5,000 signatures. Among the other Trader Joe’s packaging names cited on the petition site are Trader Giotto’s and Trader Ming’s.

Read more …

“Never before has appeals court granted en banc hearing to a judge when neither party wanted it.”

Michael Flynn Case To Be Reheard By Full US Appeals Court (R.)

A U.S. appeals court on Thursday agreed to rehear arguments over whether the judge assigned to the criminal case against Michael Flynn, President Donald Trump’s former national security adviser, must grant a request to dismiss it. The U.S. Court of Appeals for the District of Columbia Circuit said it would hold an oral argument in the politically charged criminal case on Aug. 11. In a 2-1 decision on June 24, a three-judge panel of the same court ruled in favor of Flynn and the Trump administration and said U.S. District Judge Emmet Sullivan in Washington had to grant the Justice Department’s motion to clear Flynn. Sullivan asked the full court to reconsider the three-judge panel’s ruling, saying the Justice Department’s dropping of the Flynn case was unprecedented and had to be carefully scrutinized.


Flynn, a retired Army lieutenant general, was one of several former Trump aides charged under former Special Counsel Robert Mueller’s investigation that detailed Moscow’s interference in the 2016 U.S. presidential election. Flynn twice pleaded guilty to lying to the FBI about his conversations with Russia’s then-ambassador, Sergey Kislyak. Flynn then switched lawyers to pursue a new scorched-earth tactic that accused the FBI of setting him up, and asked the judge to dismiss the charge. After the Justice Department took the highly unusual step of seeking to abandon the case against Flynn, Sullivan appointed a retired judge to argue against the Justice Department’s request. Sullivan, represented by his own lawyers, has said he cannot serve as a “rubber stamp” and must carefully review the facts before deciding on the request for dismissal. The D.C. Circuit panel disagreed in June, saying Sullivan was intruding on the Justice Department’s authority to decide which cases it pursues.

Read more …

Kamala Harris was about the least popular candidate in the Primaries, and one of the first to drop out. She won’t bring in any votes, she’ll take them away.

Kamala Harris’s Record On Antitrust & White-Collar Crime (TMI)

This week, a House subcommittee held a high-profile hearing interrogating the CEOs of Amazon, Apple, Facebook and Google about their growing market power. But as more congressional Democrats scrutinize corporate America’s monopolistic business practices, their party may end up giving the vice-presidential nomination to a lawmaker who previously expressed misgivings about antitrust enforcement when it comes to Silicon Valley. California Sen. Kamala Harris’ meteoric rise from San Francisco District Attorney to Democratic presidential contender occurred in the span of just over a decade and today, insiders believe she tops Joe Biden’s shortlist for VP.

During the 2020 election, Harris’s record on criminal justice proved too steep a hurdle during her party’s presidential primary just a few short months ago. She was dogged by criticism that as California Attorney General, she had been soft on white-collar crime like mortgage fraud while pursuing low-level offenses like truancy with zeal. Questions also arose about her refusal to act on her staff’s memo that identified what it called “widespread misconduct” at a financial firm run by Steve Mnuchin, who donated to her Senate campaign.

[..] HuffPost procured 1,400 pages of emails which revealed how Harris’ relationships with tech giants had been mutually beneficial. For example, she’d participated in a promotional for Facebook Chief Operating Officer Sheryl Sandberg’s 2013 book about women in power, “Lean In,” which increased her national profile. Sandberg would also become a donor to her 2016 Senate campaign. All told, that year, Harris raked in $214,000 in contributions from the industry. During her 2020 presidential run, Harris was a favorite of big tech, taking large sums from lobbyists for companies like Uber and Facebook. Donors from Apple, Amazon and Google’s parent company Alphabet were collectively among her top contributors.

Harris’ position on the size of tech giants did not substantially change during the campaign. When she was asked by the New York Times in January 2019 if companies like Facebook, Amazon and Google should be broken up, Harris responded: “I believe that the tech companies have got to be regulated in a way that we can ensure and the American consumer can be certain that their privacy is not being compromised.” Pressed by the interviewer to respond directly about the size of the companies, Harris continued to sidestep. “My first priority is going to be that we ensure that privacy is something that is intact and that consumers have the power to make decisions about what happens with their personal information and that it is not being made for them,” she said.

Read more …

And who likes Susan Rice? Anybody at all?

“Nominating Rice as Biden’s VP would virtually ensure her immunity, protecting her from investigation or prosecution during the campaign. [..] Crucially, it would also cut off the investigation at the rung below her, thereby insulating Obama and Biden.

What Does Susan Rice Bring to a Biden Ticket? (Lee Smith)

But there is another possible explanation that is worth considering, since it’s at least legally true: Putting Susan Rice on the ticket would protect both Biden and Obama (as well as Rice herself) from the ongoing investigation into the origins of Crossfire Hurricane, the discredited FBI probe of Trump’s ties to Russia. As official reports hinting at the role Obama and Biden may have played in targeting Trump officials were declassified in the spring, Attorney General William Barr said in May that neither were in the sights of John Durham, the U.S. attorney in charge of the investigation. “I don’t expect Mr. Durham’s work will lead to a criminal investigation of either man,” Barr said. “Our concern over potential criminality is focused on others.”

Since Barr’s May statement, it has come to light that Obama and Biden were more directly involved in the targeting of incoming Trump officials than was previously publicly known. In late June, FBI notes of January 2017 Oval Office meetings were declassified, showing that both men were not only keeping close watch on the FBI’s investigation of Trump’s first national security adviser, Michael Flynn, but were advising it. A New York Times article from earlier this week promoting Rice’s audition obscured the evidence declassified in the last several months. It noted that Trump has accused Rice “of having participated in an Obama administration plot against” Flynn, and added that “no such effort has been documented.” Rice herself personally documented a meeting in which she, Obama, and Biden decided Flynn’s fate.

Presumably, Barr does not want America to take a step closer to resembling a third-world regime on his watch. And so, in order to avoid the appearance of a politicized investigation of senior Democrats in retaliation for what was in fact a politicized investigation of a Republican administration, neither Obama nor Biden are being investigated. But that does not mean that they are shielded if someone wants to save themselves by pointing further up the chain of command. And Rice left a paper trail that implicates herself, Obama, and Biden.

Nominating Rice as Biden’s VP would virtually ensure her immunity, protecting her from investigation or prosecution during the campaign. In February, Barr issued a memo stating that no investigation of a presidential or vice presidential candidate can be undertaken without his written approval. Because it is nearly inconceivable that Barr would expose himself to this type of scrutiny or risk compromising the election, Rice would be safe. Crucially, it would also cut off the investigation at the rung below her, thereby insulating Obama and Biden.

Read more …

 

 

We try to run the Automatic Earth on donations. Since ad revenue has collapsed, your support is now an integral part of the process.

Thank you.

 

 

 

 

Support the Automatic Earth in virustime.

 

Jun 012020
 


Christo & Jeanne Claude The Gates, Central Park NYC 2005 (Christo died yesterday at 84)

 

 

New Coronavirus Losing Potency, Top Italian Doctor Says (R.)
Russia To Roll Out ‘Game Changer’ COVID19 Drug Next Week (R.)
UK Has One Of Highest COVID19-Related Excess Deaths Levels In Europe (G.)
Health Officials Make Last-Minute Plea To Stop Lockdown Easing In England (G.)
It’s The Virus, Stupid! (AHEB)
Australia’s Stalled Migrant Boom Derails Golden Economic Run (R.)
Asia Stocks Hit 3-Month Peaks, Resilient To US Rioting (R.)
Asia’s Factory Pain Worsens As China’s Recovery Fails To Lift Demand (R.)
The Stunning Chart That Blows Up All Of Modern Central Banking (ZH)
FBI’s Top Lawyer Resigns As Agency Faces Pressure From Trump (R.)

 

 

The riots have completely taken over the -US- news cycle from COVID19, to such an extent that I don’t really know what to add to it. Only perhaps to say there is an enormous amount of brutal videos circling around, more than on any topic ever before, and there’s no way that doesn’t influence people on all sides.

 

 

 

 

 

 

 

Counted from Saturday, since there was no Debt Rattle yesterday:

Cases 6,288,176 (+ 233,399 from Saturday’s 6,054,777)

Deaths 374,327(+ 7,039 from Saturday’s 367,288)

 

 

 

Note: I dropped the SCMP graph, it doesn’t appear very useful anymore.

From Worldometer yesterday evening -before their day’s close-:

 

 

From Worldometer:

 

 

From COVID19Info.live:

 

 

 

 

Would be good news, but this sounds a little goal-seeked.

New Coronavirus Losing Potency, Top Italian Doctor Says (R.)

The new coronavirus is losing its potency and has become much less lethal, a senior Italian doctor said on Sunday. “In reality, the virus clinically no longer exists in Italy,” said Alberto Zangrillo, the head of the San Raffaele Hospital in Milan in the northern region of Lombardy, which has borne the brunt of Italy’s coronavirus contagion. “The swabs that were performed over the last 10 days showed a viral load in quantitative terms that was absolutely infinitesimal compared to the ones carried out a month or two months ago,” he told RAI television. Italy has the third highest death toll in the world from COVID-19, with 33,415 people dying since the outbreak came to light on Feb. 21. It has the sixth highest global tally of cases at 233,019.

However new infections and fatalities have fallen steadily in May and the country is unwinding some of the most rigid lockdown restrictions introduced anywhere on the continent. Zangrillo said some experts were too alarmist about the prospect of a second wave of infections and politicians needed to take into account the new reality. “We’ve got to get back to being a normal country,” he said. “Someone has to take responsibility for terrorizing the country.” The government urged caution, saying it was far too soon to claim victory. “Pending scientific evidence to support the thesis that the virus has disappeared … I would invite those who say they are sure of it not to confuse Italians,” Sandra Zampa, an undersecretary at the health ministry, said in a statement.


“We should instead invite Italians to maintain the maximum caution, maintain physical distancing, avoid large groups, to frequently wash their hands and to wear masks.” A second doctor from northern Italy told the national ANSA news agency that he was also seeing the coronavirus weaken. “The strength the virus had two months ago is not the same strength it has today,” said Matteo Bassetti, head of the infectious diseases clinic at the San Martino hospital in the city of Genoa. “It is clear that today the COVID-19 disease is different.”

Read more …

A bit better than remdesivir (which is not hard), and worse than HCQ?! What game is it that will be changed?

Russia To Roll Out ‘Game Changer’ COVID19 Drug Next Week (R.)

Russia will start administering its first approved antiviral drug to treat coronavirus patients next week, its state financial backer told Reuters, a move it described as “a game changer” that should speed a return to normal economic life. Russian hospitals can begin giving the drug to patients from June 11, with enough to treat around 60,000 people per month, the head of Russia’s RDIF sovereign wealth fund told Reuters in an interview. There is currently no approved vaccine for the highly contagious and sometimes fatal illness and no consensus within the global scientific community about the efficacy of medication such as the Russian modified antiviral drug.

Registered under the name Avifavir, it is the first potential coronavirus treatment to be approved by Russia’s health ministry, however. It appeared on a government list of approved drugs on Saturday after clinical trials. RDIF head Kirill Dmitriev said clinical trials involved 330 people and showed that the drug successfully treated the virus in most cases within four days. Trials were due to be concluded in around a week, he said, and more would be conducted. The health ministry had given its approval for the drug’s use under a special accelerated process and manufacturing had begun in March, he added. “We believe this is a game changer. It will reduce strain on the healthcare system, we’ll have fewer people getting into a critical condition, and for 90% of people it eliminates the virus within 10 days,” he said.

“We believe that the drug is key to resuming full economic activity in Russia. People need to follow social distancing rules, and of course we need to have a vaccine, but it’s a combination of those three levers.” With 405,843 cases, Russia has the third highest number of infections in the world after Brazil and the United States, though with 4,693 official deaths, a much lower fatality rate, something that has been the focus of debate. Dmitriev said the new drug, which comes in tablet form, would allow people to spend less time in hospital and reduce the time they are contagious, saying the drug had few side-effects but was not suitable for pregnant women. It was particularly effective, he said, for patients suffering from mild or mid-level symptoms.

[..] Avifavir, known generically as favipiravir, was first developed in the late 1990s by a Japanese company later bought by Fujifilm as it moved into healthcare. The drug works by short-circuiting the reproduction mechanism of certain RNA viruses such as influenza. Russian specialists modified the generic drug to enhance its efficacy for treating COVID-19 [..]

Read more …

Excess deaths may be the best, if not only, way to get an accurate fatality number for COVID19.

UK Has One Of Highest COVID19-Related Excess Deaths Levels In Europe (G.)

Britain’s excess death toll at the peak of the Covid-19 pandemic was the highest among 11 countries analysed by the Guardian. The UK had the biggest spike among countries including Sweden, France, Germany and Spain. At its peak the UK death toll was more than double that of an average week, at 109%, compared with Spain’s peak in week 14 where the death toll was double the average at 100%. By week 20 of 2020 the UK death toll – inclusive of both Covid-related and non-Covid deaths – was 21% higher than the average of recent years meaning, for every five deaths that occur in the UK in a normal year, six people have died this year to date.

Excess deaths are those above what we might expect to see in normal circumstances. The figure is the difference in the number of people who have died in a given week compared with the average number of deaths that occurred in the same period in the previous five years. Italy and the Netherlands also have excess deaths of 10% or more so far this year according to the latest data, although the data for those countries is not as up to date as that for the UK. Patterns in the data show countries that locked down earlier tended to have fewer deaths. Austria, which imposed strict containment measures on 16 March, when there was just one death attributed to Covid-19 in the country, recorded a peak in excess deaths of 14%.


By contrast, the Netherlands waited until its excess deaths were already 17% higher than usual before locking down, and at its peak the death toll was 74% above average. The data also shows that in Sweden, which has adopted a different approach with no lockdown in place, excess deaths peaked at 46%. The figures come from mortality statistics gathered by the Guardian. Not all of the deaths are directly attributable to Covid-19 but the figures indicate how many people have died directly and indirectly as a result of the virus in different countries.

Read more …

That cat’s out of the bag. Too late.

Health Officials Make Last-Minute Plea To Stop Lockdown Easing In England (G.)

Senior public health officials have made a last-minute plea for ministers to scrap Monday’s easing of the coronavirus lockdown in England, warning the country is unprepared to deal with any surge in infection and that public resolve to take steps to limit transmisson has been eroded. The Association of Directors of Public Health (ADPH) said new rules, including allowing groups of up to six people to meet outdoors and in private gardens, were “not supported by the science” and that pictures of crowded beaches and beauty spots over the weekend showed “the public is not keeping to social distancing as it was”.

On Saturday and Sunday, parks and seafronts were packed as people anticipated the lifting of restrictions on what has been dubbed “happy Monday”. Car showrooms and outdoor markets will also be reopened, millions of children will return to primary schools and the most vulnerable “shielded” people will be allowed out for the first time since lockdown began in March, all as long as physical distancing is maintained. But Jeanelle de Gruchy, president of the ADPH, said her colleagues across England were “increasingly concerned that the government is misjudging the balance of risk between more social interaction and the risk of a resurgence of the virus, and is easing too many restrictions too quickly”.


They have called on ministers to postpone the easing of restrictions until more is known about the infection rate, the test-and-trace system is better established and public resolve to maintain physical distancing and hygiene can be reinforced. “We have not spoken out in this way before,” De Gruchy said, “but we are concerned that if there is a spike it will be in our communities. We need to be confident we can get on top of it, and we are not confident yet.”

Read more …

Awful headline for a reasonable piece.

It’s The Virus, Stupid! (AHEB)

Many economists expressed disbelief after glancing at recent economic statistics. Since the arrival of the virus and the subsequent lockdowns we have observed a never-before-seen decline in production and consumption. In the UK alone, millions of jobs are at risk immediately. The IMF estimated that, for the UK, the expected economic growth this year will turn into a contraction of 6.5%. It was only the day after the presentation of this forecast when Kristalina Georgieva, the director of the IMF, said that the predictions had been overly positive. Globally, it is predicted that many hundreds of millions of people will fall back below the poverty line. The bad news just doesn’t seem to stop. And what for? To keep a virus in check.

A virus that will cause more death than a serious flu, but that does much less damage to health compared to other diseases like cancer or cardiovascular disease. Assuming an infection mortality risk of 1%, group immunity at 70% and 10 years of life lost per death, we arrive at an average loss of life expectancy of one month for the average UK person. This is in sharp contrast to, for example, the 2 to 3 years with which cancer shortens the life of the average UK person. Some economists read these numbers and conclude that the lockdown has to end immediately. That is understandable at first. The costs per year of life saved are higher than we are willing to spend on regular care. The difference is at least a factor 2, and probably much more. If we weren’t prepared to make such sacrifices for an extra year of life before, why now?


The comparison is flawed. While we can lift the lockdown, we cannot return to normality. If we assume 25% of the UK population is at risk, then 17 million people belong to one of the risk groups. For them, the virus is usually not fatal, but not safe either. Many of these people are likely to adopt a risk-averse position. The risks for the rest of the population are limited. However, they too will likely be cautious, as almost all of them are in direct contact with people from the risk groups. This raises the question to what extent the economic damage is caused by the lockdown or by the virus itself. The way to find out is to lift the lockdown in some regions and continue in others. Obviously, such an experiment will not be allowed because of the ethical aspects.

Read more …

We import oil and rich people.

Australia’s Stalled Migrant Boom Derails Golden Economic Run (R.)

Australia’s three decades of uninterrupted prosperity are coming to an abrupt end as the global coronavirus pandemic crashes one of its most lucrative sources of income – immigration. The country has been successful in managing the outbreak and reopening its A$2 trillion ($1.33 trillion) economy, thanks in part to an early closure of its borders. But the policy has led to a halt in mass immigration – a key source of consumer demand, labour and growth – in an economy which is facing its first recession since the early 1990s. Net immigration, including international students and those on skilled worker visas, is expected to fall 85% in the fiscal year to June 2021, curbing demand for everything from cars and property to education and wedding rings.


Gurmeet Tuli, who owns a jewellery store in the Sydney suburb of Parramatta, said his business is already hurting in a neighbourhood which is home to tens of thousands of migrants. “My main clientele is young people who come here to study, they find work here and settle down, fall in love and want to get married,” Tuli said. “I have not sold a single diamond ring in the past two months,” he added, noting business is down about 40% so far this year. So critical is migration to Australia that analysts reckon the economy would have slipped into a recession last year without new arrivals to boost population growth.

Read more …

That’s not terribly interesting…

Asia Stocks Hit 3-Month Peaks, Resilient To US Rioting (R.)

Asian shares pushed to three-month highs on Monday as progress on opening up economies helped offset jitters over riots in U.S. cities and unease over Washington’s power struggle with Beijing. There was also relief that while President Donald Trump began the process of ending special U.S. treatment for Hong Kong to punish China, he left their trade deal intact. “With specific and verifiable measures against China appearing to be weak, markets may draw hollow consolation that the U.S. is treading carefully,” said analysts at Mizuho in a note.

After a cautious start Asian markets were led higher by China on signs parts of the domestic economy were picking up. Hong Kong .HSI managed to rally 3.6%, while Chinese blue chips put on 2.4%. An official business survey from China showed its factory activity grew at a slower pace in May but momentum in the services and construction sectors quickened. A private survey showed a return to growth in May, though exports remained depressed. That helped lift MSCI’s broadest index of Asia-Pacific shares outside Japan 2.1% to its highest since early March. Japan’s Nikkei added 0.7% to also reach a three-month peak.


[..] The resilience was notable given major U.S. cities were cleaning up streets strewn with broken glass and burned out cars as curfews failed to stop confrontations between activists and law enforcement. The turmoil was a fresh setback for the economy which was only just emerging from a downturn akin to the Great Depression. Following poor data on spending and trade out on Friday, the Atlanta Federal Reserve estimated economic output could drop a staggering 51% annualised in the second quarter. The May jobs report due out on Friday is forecast to show the unemployment rate surged to 19.8%, smashing April’s record 14.7%. Payrolls are expected to drop by 7.4 million, on top of the 20.5 million jobs lost the previous month.

Read more …

… this is far more interesting. Why are stocks “resilient” and hitting peaks as economies plunge?

Asia’s Factory Pain Worsens As China’s Recovery Fails To Lift Demand (R.)

Asia’s factory pain deepened in May as the slump in global trade caused by the coronavirus pandemic worsened, with export powerhouses Japan and South Korea suffering the sharpest declines in business activity in more than a decade. A series of manufacturing surveys released on Monday suggest any rebound in businesses will be some time off, even though China’s factory activity unexpectedly returned to growth in May. China’s Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) hit 50.7 last month, marking the highest reading since January as easing of lockdowns allowed companies to get back to work and clear outstanding orders.


But with many of China’s trading partners still restricted, its new export orders remained in contraction, the private business survey showed on Monday. China’s official PMI survey on Sunday showed the recovery in the world’s second-largest economy intact but fragile. Japan’s factory activity shrank at the fastest pace since 2009 in May, a separate private sector survey showed while South Korea also saw manufacturing slump at the sharpest pace in more than a decade. [..] Taiwan’s manufacturing activity also fell in May. Vietnam, Malaysia and the Philippines saw PMIs rebound from April, though the indices all remained below the 50-mark threshold that separates contraction from expansion. Official data on Monday showed South Korea extending its exports plunge for a third straight month.

Read more …

Japan’s policy for years now hs been to force people to spend. The more -and longer- you do that, the more afraid they get and the less they spend.

Also, as mentioned 1000 times, talking about inflation means zilch unless velocity of money is included. The Deutsche bank graph down below gives that point a lot more perspective.

The Stunning Chart That Blows Up All Of Modern Central Banking (ZH)

[..] amusingly it was all the way back in 2015 that we predicted – correctly in retrospect – just what the monetary endgame is: “fear not: when even “moar” QE and NIRP do not work, and the economists of the ECB admit the “monetary twilight zone” was a disaster, there is one last “tool” they can and will use – helicopters. Because when it comes to printing money, whether in digital reserve format, or physical paper format, there is literally no limit how much can and will be created to achieve what is the endgame of the current monetary dead end: the total destruction of fiat as a store of wealth in order to preserve the global equity tranche while wiping away a few hundred trillion in debt.”


Thanks to covid-19, we have now moved beyond merely the “twilight” and are now in the “helicopter” zone. But what about the relationship between rates and savings, and by extension inflation? After all that is the topic of this post. Well, we can now confirm that our intuition from 2015 that negative rates are not only not inflationary but outright deflationary, and encourage consumers to save even more, was correct all along. Below we post a chart from the latest Research Investment Committee report by BofA titled “Stagnation, stagflation or elevation”, which with just one image blows up everything that is flawed with monetary policy. It shows that while lower rates indeed stimulate spending and lead to lower savings, this effect peaks at around 4% and then goes negative. In fact, the lower yields – and rates – drop below 4% – not to mention to 0% or below – the lower the propensity to spend and the higher the savings rate!

There is another reason why this chart of such epic importance: it confirms what so many have known but were afraid to voice as it ran against decades of flawed economic theory: it demonstrates without a shadow of doubt, that hyper-easy monetary policy is not inflationary but is deflationary. Which is catastrophic for central banks, who publicly state that the only reason they are pursuing ultra easy monetary policy which includes QE and negative rates, is not to goose the market higher (even though by now we all know that’s the real reason) but to stimulate inflation. This is how Bank of America summarizes this stunning observation: As low growth & inflation make low-risk-asset income scarce (e.g. from government bonds), households are forced to reduce consumption and increase savings in order to meet retirement goals. Forced saving further depresses demand in a vicious cycle.


This means that the lower (and more negative) central banks push rates, the lower (not higher) the spending, the higher (not lower) the savings rate, the lower the inflation, the higher the disinflation (or outright deflation), which in turn forces central banks to cut rates even more, to add QE, yield curve control, buy junk bonds, buy ETFs, or pursue any of a host of other monetary policies that are even more devastating to consumer psychology, forcing even more savings, resulting in even more disinflation, causing even more intervention by central banks in what is without doubt the most diabolical feedback loop of modern monetary policy and economics. Said otherwise, monetary easing is deflationary. Let that sink in.

Read more …

Not entirely sure what this is. The DOJ supposedly tells the FBI’s top lawyer to leave. And there’s no protest, he just does.

Impossible to see this as something wholly separate from the entire developing issue, for which Susan Rice is an appropriate symbol.

FBI’s Top Lawyer Resigns As Agency Faces Pressure From Trump (R.)

The FBI said on Saturday that its top lawyer, Dana Boente, had announced his resignation as the agency faces scrutiny over its investigations of former staffers and supporters of President Donald Trump. As a senior Justice Department official, Boente was involved in the investigation of Trump’s former national security adviser Michael Flynn, who pleaded guilty to lying to the FBI. The Justice Department has since asked a judge to drop those charges, arguing that prosecutors should not have brought them in the first place. Trump has repeatedly criticized the FBI for investigating Flynn and other allies.


NBC News, citing two sources, said Boente was asked to resign. Boente held several senior roles at the Justice Department and the FBI over the course of a 38-year career. He briefly served as acting Attorney General in 2017 after Trump fired Sally Yates, who held the job during the first weeks of his presidency. “Few people have served so well in so many critical, high-level roles at the Department,” FBI Director Christopher Wray said in a prepared statement.

Read more …

 

 

We try to run the Automatic Earth on people’s kind donations. Since their revenue has collapsed, ads no longer pay for all you read, and your support is now an integral part of the interaction.

Thank you.

 

 

 

 

 

 

Support the Automatic Earth in virustime.

 

Apr 052017
 
 April 5, 2017  Posted by at 8:43 am Finance Tagged with: , , , , , , , , , ,  1 Response »


DPC Times Square seen from Broadway 1908

 

JPMorgan CEO Jamie Dimon Warns ‘Something Is Wrong’ With the US (BBG)
US Housing Boom Is Anything But as Ownership Loses Appeal (A. Gary Shilling)
Young Americans Are Killing Marriage (BBG)
The Comex Is The World’s Most Corrupted Market (IRD)
The Real Russiagate (Paul Craig Roberts – Michael Hudson)
Fed Leak Probe Dooms Lacker But Leaves Key Question: Who Leaked? (BBG)
I Tried To Ask Yellen About The Fed Leak (Da Costa)
Australia’s Household Debt Crisis Is Worse Than Ever (Abc.au)
Australian Economy At Risk As Debt Bomb Grows (Aus.)
Chinese Brokers Are Muscling in on Asia’s Junk Bond Underwriters
Zombie Nation: In Japan, Zero Public Companies Went Bust in 2016 (BBG)
The World’s Best Economist (PCR)
New Zealand Post To Deliver KFC (AFP)

 

 

Actually, a lot is wrong. Including Dimon talking his book and people thinking he’s doing something else, like trying to help anyone other than himself.

JPMorgan CEO Jamie Dimon Warns ‘Something Is Wrong’ With the US (BBG)

JPMorgan CEO Jamie Dimon has two big pronouncements as the Trump administration starts reshaping the government: “The United States of America is truly an exceptional country,” and “it is clear that something is wrong.” Dimon, leader of world’s most valuable bank and a counselor to the new president, used his 45-page annual letter to shareholders on Tuesday to list ways America is stronger than ever – before jumping into a much longer list of self-inflicted problems that he said was “upsetting” to write. Here’s the start: Since the turn of the century, the U.S. has dumped trillions of dollars into wars, piled huge debt onto students, forced legions of foreigners to leave after getting advanced degrees, driven millions of Americans out of the workplace with felonies for sometimes minor offenses and hobbled the housing market with hastily crafted layers of rules.

Dimon, who sits on Donald Trump’s business forum aimed at boosting job growth, is renowned for his optimism and has been voicing support this year for parts of the president’s business agenda. In February, Dimon predicted the U.S. would have a bright economic future if the new administration carries out plans to overhaul taxes, rein in rules and boost infrastructure investment. In an interview last month, he credited Trump with boosting consumer and business confidence in growth, and reawakening “animal spirits.” But on Tuesday, reasons for concern kept coming. Labor market participation is low, Dimon wrote. Inner-city schools are failing poor kids. High schools and vocational schools aren’t providing skills to get decent jobs. Infrastructure planning and spending is so anemic that the U.S. hasn’t built a major airport in more than 20 years.

Corporate taxes are so onerous it’s driving capital and brains overseas. Regulation is excessive. “It is understandable why so many are angry at the leaders of America’s institutions, including businesses, schools and governments,” Dimon, 61, summarized. “This can understandably lead to disenchantment with trade, globalization and even our free enterprise system, which for so many people seems not to have worked.”

Read more …

I like Shilling. But this reeks of nonsense. It’s not about appeal, it’s about getting poorer.

US Housing Boom Is Anything But as Ownership Loses Appeal (A. Gary Shilling)

By many measures, the U.S. housing market seems in very good shape. The National Association of Realtors in Washington said last week that contracts to buy existing homes jumped 5.5% in February, the biggest increase since July 2010. Fannie Mae’s National Housing Survey showed that Americans expect home prices to rise a robust 3.2% over the next year as its sentiment index reached a record high. So, are boom times ahead for housing? Not quite. To understand why, it helps to revisit recent history. The housing bubble of the early 2000s was driven by subprime mortgages and other loose-lending practices. The subsequent collapse left many potential new homeowners with inadequate credit scores, not enough money for a down payment and insufficient job security to buy a house.

They also saw, for the first time since the 1930s, that not only house prices fall nationwide, but nosedive by a third. Homeownership plunged and those who did form households moved into rental apartments instead of single-family houses. That drove rental vacancy rates down and starts of multi-family housing – about two-thirds of which are rentals – up to 396,000 units, more than the earlier norm of 300,000 starts at annual rates. But single-family housing starts – even with the rebound to an 872,000 annual rate from the bottom of about 400,000 – are still far below the pre-housing bubble average of more than 1 million. Despite the recovery in house prices, rents have risen at a much faster pace. As a share of median income, rents have jumped while mortgage costs have fallen. The latest data from the National Association of Realtors show its Housing Affordability Index was up 52% in the fourth quarter of 2016 from the early 2007 low.

Read more …

Yesterday we saw IMF head Lagarde saying the loss of productivity can be solved with education. But the younger have had a boatload more education than their parents.

Young Americans Are Killing Marriage (BBG)

There’s no shortage of theories as to how and why today’s young people differ from their parents. As marketing consultants never cease to point out, baby boomers and millennials appear to have starkly different attitudes about pretty much everything, from money and sports to breakfast and lunch. New research tries to ground those observations in solid data. The National Center for Family and Marriage Research at Bowling Green State University set out to compare 25- to 34-year-olds in 1980—baby boomers—with the same age group today. Researcher Lydia Anderson compared U.S. Census data from 1980 with the most recent American Community Survey data in 2015. The results reveal some stark differences in how young Americans are living today, compared with three or four decades ago.

In 1980, two-thirds of 25- to 34-year-olds were already married. One in eight had already been married and divorced. In 2015, just two in five millennials were married, and only 7% had been divorced. Baby boomers’ eagerness to get married meant they were far more likely than today’s young people to live on their own. Anderson looked at the share of each generation living independently, either as heads of their own household or in married couples. The chance that Americans in their late twenties and early thirties live with parents or grandparents has more than doubled. In 1980, just 9% of 25- to 34-year-olds were doing so. In 2015, 22% lived with parents or grandparents. Millennials are also less likely than boomers to be living with kids—and to be homeowners.

It’s easy to look at these figures and say millennials are lagging behind their boomer parents. However, even as young Americans delay marriage, kids, and homeownership, they’re ahead of their parents by one measure: education.

Read more …

Dazzling. “Historically, when the amount of paper exceeds the amount of underlying commodity that is available for delivery by more than 20-30%, the CFTC intervenes by investigating the possibility of market manipulation. But never with gold and silver.”

The Comex Is The World’s Most Corrupted Market (IRD)

If you were to poll the public about comparing the investment returns between gold, silver and stocks during the first quarter of 2017, it’s highly probable that the majority of the populace would respond that the S&P 500 outperformed the precious metals. That’s a result of the mainstream media’s unwillingness to report on the precious metals market other than to disparage it as an investment. In reality, among silver, gold, the Nasdaq 100 and the S&P 500, the S&P 500 had the lowest ROR in Q1. Silver led the pack at 14%, followed by tech-heavy Nasdaq 100 at 11.1%, gold at 8.6% and the S&P 500 at 4.8%. Put that in your pipe and smoke it, Cramer. Imagine the performance gold and silver would have turned in if the Comex was prevented from creating paper gold and silver in amounts that exceeded the quantity of gold and silver sitting in the Comex vaults.

As an example, as of Friday the Comex is reporting 949k ozs of gold in the registered accounts of the Comex vaults and 9 million ozs of total gold. Yet, the open interest in paper gold contracts as of Friday totaled 41.7 million ozs. This is 44x more paper gold than the amount of physical that has been designated – “registered” – as available for delivery. It’s 4.6x more than the total amount of gold sitting on Comex vaults. With silver the situation is even more extreme. The Comex is reporting 29.5 million ozs of silver as registered and 190.2 million total ozs. Yet, the open interest in paper silver is a staggering 1.08 billion ozs. 1.08 billion ozs of silver is more silver than the world mines in a year. The paper silver open interest is 5x greater than the total amount of silver held in Comex vaults; it’s an astonishing 37x more than the amount of silver that is available to be delivered.

This degree of imbalance between the open interest in CME futures contracts in relation to the amount of the underlying physical commodity represented by those contracts never occurs in any other CME commodity – ever. Historically, when the amount of paper exceeds the amount of underlying commodity that is available for delivery by more than 20-30%, the CFTC intervenes by investigating the possibility of market manipulation. But never with gold and silver. The Comex is perhaps the most corrupted securities market in history. It is emblematic of the fraud and corruption that has engulfed the entire U.S. financial and political system. The U.S. Government has now issued $20 trillion in Treasury debt for which it has no intention of every redeeming. It’s issued over $100 trillion in unfunded liabilities (entitlements, pensions, etc) for which default is not a matter of “if” but of “when.”

Read more …

“..We are now in a position to see the real story behind “Russiagate.” It’s not about Russia, except incidentally…”

The Real Russiagate (Paul Craig Roberts – Michael Hudson)

Wall Street Journal editorialist Kimberley A. Strassel poses the real question: Why hasn’t the Trump administration had the Secret Service arrest Comey, Brennan, Schiff, the DNC and Hillary for trying to overthrow the President of the United States? “Mr. Nunes has said he has seen proof that the Obama White House surveilled the incoming administration—on subjects that had nothing to do with Russia—and that it further unmasked (identified by name) transition officials. This goes far beyond a mere scandal. It’s a potential crime.” What we are watching is turning out to be traces of a plot against a government elected by the American people. Attempts by House national security committee Chairman Devin Nunes have been countered with demands by his potential victims to recuse himself so as to stop his exposé of how “Team Obama was spying broadly on the incoming administration.”

[..] We are now in a position to see the real story behind “Russiagate.” It’s not about Russia, except incidentally. The Obama regime abused the government’s surveillance powers and spied on Donald Trump and other Republicans in order to build a dossier for the DNC to leak to the press in an attempt to slander or compromise Trump and throw the election to Hillary. They’ve been caught, but we can now see that they took steps to protect themselves against this. They prepared a cover story. They pretend they were not spying on Trump, but on Russians – which only by fortuitous happenchance turned up incriminating smoke against Trump. This cover story was buttressed by the fake news story prepared by former MI6 freelancer Christopher Steele.

As Whitney reports, Steele “was hired as an opposition researcher last June to dig up derogatory information on Donald Trump.” Unvetted and unverified information paid for by so-called informants “somehow” found its way into U.S. intelligence agency reports. These reports were then leaked to Democrat-friendly media. This is where the crime lies. Obama regime and DNC were using these agencies for domestic political use, KGB style. The Obama/Clinton cover story is now falling to pieces. That explains the desperation in the attack by Adam Schiff, the ranking Democrat on the House Intelligence Committee, on Committee Chairman Devin Nunes to stop the exposure. Russiagate is not a Trump/Putin collusion but a domestic spy job carried out by Democrats. Law requires Trump to arrest those responsible and to put them on trial for treason and conspiracy to overthrow the government of the United States.

Read more …

They end the investigation without answering the question that started it?!

Fed Leak Probe Dooms Lacker But Leaves Key Question: Who Leaked? (BBG)

The Federal Reserve’s inspector general says it will be ending its investigation into the 2012 release of confidential information. Even after the scandal cut short the career of one top Fed official, the answer to the most important question remains a mystery. Who did the initial leaking? Richmond Fed President Jeffrey Lacker resigned abruptly Tuesday as he announced his role in the unauthorized disclosure of information to Medley Global Advisors about policy options that the central bank was considering in 2012. His explanation suggested he was confirming facts the Medley analyst already knew. It was a sudden career stop for a Fed president who was frequently in opposition to the Fed board consensus on interest-rate policy, and the news will likely revive questions in Congress about the value of the central bank’s discretion and transparency.

“The story is not over today,” said Andrew Levin, a professor at Dartmouth College who was previously a special adviser at the Fed board and helped then-Vice Chair Janet Yellen develop the Fed’s policy on external communication. “There are a number of distinct details that suggest that Lacker wasn’t the main source of information.” Aaron Klein, a fellow at the Brookings Institution and the former chief economist on the Senate Banking Committee, said the Lacker statement “is not a full and complete accounting of what happened.” “The Fed, internally and its inspector general, would be wise to fully explore every aspect of what happened here because today’s actions and statements by Lacker raise more questions than they answer,” he said.

[..] Lacker’s carefully worded statement, distributed by his attorney, said he “crossed the line to confirming information that should have remained confidential.” The investigation into Lacker has concluded and no charges will be brought against him, the attorney said. He also said the Medley analyst “introduced into the conversation an important non-public detail” about one of the policy options under consideration. Lacker says he didn’t decline to comment “and the interview continued.” His statement doesn’t suggest that he tipped the Medley analyst initially. Indeed, the Fed board’s own investigation said “a few Federal Reserve personnel” had contact with the Medley analyst.

Read more …

Lacker the only leaker? Doesn’t quite look that way.

I Tried To Ask Yellen About The Fed Leak (Da Costa)

I once asked Janet Yellen a rather straightforward question that would echo for much longer than I expected. It was March 2015, and the Federal Reserve was under pressure from Congress to reveal details about an internal investigation into how key details of its interest rate policy deliberations had made their way into a report by a private sector firm. I was a reporter at the Wall Street Journal, and I asked the following at a press conference:

Let’s make something clear: Like any journalist, I love a good leak. But this was not your typical leak of important information to a journalist who then reported it to the public. This was the sharing of private, market-sensitive details with a private party – Medley Global Advisors – which then shared that information with its clients. The leak, it should be noted, happened all the way back in 2012 but it was still being discussed in 2015 because – despite the Fed’s internal investigation – nobody seemed to have gotten to the bottom of what had happened. And back in 2012, any read on what the Federal Reserve might do to suppress interest rates as the US economy continued to crawl out of the Great Recession, could lead to huge profits for the traders who bet on such things. These days, traders are thinking about the next rate hike.

Back then, interest rates were already at zero and the real insight gleaned from Medley’s report was how aggressively the Fed would work to keep them there by using its balance sheet. My question to Yellen had to do with basic public trust in the Fed. Why should the American people believe the central bank is working in its best interests if policymakers chat privately with movers and shakers on Wall Street? This was an alarming trend I had been reporting on since 2010, when I co-authored a report for Reuters entitled “Cozying up to big investors at Club Fed.” In it, my colleagues and I detailed other instances of market-moving information inappropriately being shared with investors, a trend we first observed when Fed officials speaking to bankers and hedge fund managers at conferences would suddenly go silent when a reporter walked by.

After the Yellen press conference, I took two weeks of paid leave for the birth of my daughter. When I returned, my editor at the paper told me I would no longer be attending Fed press conferences. No reason was given, and I left the job a few months later. Market bloggers speculated the Fed had “banned” me from the press conference. I have no reason to think that was the case because the central bank let me back in as soon as I changed news organizations. Fast-forward to April 4, 2017: Richmond Fed President Jeffrey Lacker resigns abruptly after admitting he was a source of the leak. As soon as I saw the news, the whole press conference incident flashed before my eyes. But Lacker’s admission that the Medley leak originated with him doesn’t entirely settle the matter. We know Yellen also met with Medley herself. Why? What did she say to them? Former Fed economist and Treasury official Seth Carpenter was also under scrutiny on the issue. What were the results of the Fed’s own investigation? And of Congress’?

Read more …

Meanwhile in the gutter….

Australia’s Household Debt Crisis Is Worse Than Ever (Abc.au)

Mr Russell told me there had been a big increase in debt-distressed Australians calling the [National Debt] helpline in recent months unable to pay their utilities bills. Naturally, he explained, rent and mortgage repayments take priority over the utilities bills because, in the order of survival priorities, you first need a roof over your head. Generally speaking, though, the National Debt helpline told me the rising cost of living is becoming crippling. Utilities bills, mortgage repayments and credit card debt, are all contributing to household financial stress. Last year over 150,000 calls were made to the National Debt Helpline. This year, monthly call volumes for the helpline are already 20% higher, compared to 2016. Based on current call volumes, the NDH predicts that there will be over 182,000 calls this year.

Martin North is the principal of financial research firm Digital Finance Analytics. He crunched the numbers and calculated that, in March, of the 3.1 million mortgaged households, around 22% were in “mild mortgage stress”. That’s up 1.5% on February, and is directly related to the even the smallest of interest rate increases by some of the big four banks. That means those households are managing to make their mortgage repayments, but only by cutting back on other expenditure, or putting more on credit cards, and generally hunkering down. Then there are those Australians under extreme levels of financial stress. Data from Digital Finance Analytics show 1% of households are in severe stress. That means they’re behind with their repayments, and are trying to dig their way out by refinancing, selling their property, or seeking help from services like the National Debt Helpline.

Read more …

Ha ha: “Our banks are resilient and they are soundly capitalised,” he said.”

Australian Economy At Risk As Debt Bomb Grows (Aus.)

The rampant debt-fuelled surge in the Sydney and Melbourne property markets will threaten the health of the national economy if it continues, Reserve Bank governor Philip Lowe has warned. However, Treasurer Scott Morrison has talked down drastic action on house prices after a “strong intervention” from Dr Lowe. The RBA is worried that housing debts are rising more than twice as fast as household incomes and that banks are lending to people who cannot afford to repay their debts. The concern has been that the longer the recent trends continued, the greater the risk to the future health of the Australian economy, Dr Lowe told a business dinner in Melbourne last night. “Stretched balance sheets make for more volatility when things turn down.” “For many people, the high debt levels and low wage growth are a sobering combination.”

The chairman of the government’s Financial System Inquiry, former Future Fund chairman David Murray, yesterday sounded a further alarm on the housing boom, saying a crisis on the scale of the 1890s great property collapse could not be ruled out. “What people should do is look at the 1890s, which was caused by a housing land boom,” he told The Australian. “To say it won’t happen and simply ignore it is wrong.” Half of the nation’s banks closed their doors following the 1890s crash. “Many people say a crisis has a low probability of occurrence, but the problem with that view is that whatever the probability, the severity can be very high if it occurs”, Mr Murray, who is also a former Commonwealth Bank chief executive, said. “It shouldn t be allowed to grow & it’s too big a risk to take.”

[..] House prices in Australia’s capital cities have risen 12.9% compared with this time last year, with a surge of 18.9% in Sydney and 15.9% in Melbourne, according to data released on Monday by property analytics firm CoreLogic. [..] Dr Lowe dismissed fears that the banks would be undermined by a housing downturn, saying the Council of Financial Regulators did not believe the boom was a threat to financial stability. “Our banks are resilient and they are soundly capitalised,” he said.

Read more …

In China, the shadow banks are taking over…

Chinese Brokers Are Muscling in on Asia’s Junk Bond Underwriters

China’s brokerages are out-muscling global investment banks to win more underwriting business in Asia’s junk bond market amid record offerings, as they increasingly help borrowers from the nation raise foreign currency debt. Haitong Securities topped the league table for high-yield notes denominated in dollars, euro and yen from companies in Asia excluding Japan in the first quarter, according to data compiled by Bloomberg. China Merchants Securities moved up four places to fifth. While HSBC rose three places to second, Standard Chartered and UBS slid to eighth and 11th from first and second in the first quarter of 2016. Junk bonds offer more lucrative fees than high-grade bonds, giving an extra boost to financial institutions that can expand in the business.

As Chinese firms have flocked to the offshore high-yield market, mainland banks and brokerage firms have grabbed market share away from international peers. Issuance of junk notes in dollars, euro and yen from Asia excluding Japan swelled to a record $14.6 billion in the first quarter, with nearly 70% from Chinese companies. “It’s increasingly competitive and Chinese banks are effectively buying market share with their balance sheet,” said Veronique Lafon-Vinais at the Hong Kong University of Science and Technology. Alexi Chan, global co-head of debt capital markets at HSBC, said that the significant rise in Asia high-yield bond sales reflected the “constructive market sentiment” and “positive outlook for China’s economy.”

Read more …

… and in Japan, the zombies take over.

Zombie Nation: In Japan, Zero Public Companies Went Bust in 2016 (BBG)

Corporate Japan achieved a rare feat in the fiscal year that ended last week. Not one of its almost 4,000 publicly-traded firms filed for bankruptcy protection. Yet that’s no reason to celebrate, according to analysts who see Japan’s easy credit conditions standing in the way of a much-needed, corporate restructuring to flush out failing companies and make room for new businesses. “It’s totally unhealthy,” says Martin Schulz, an economist at Fujitsu Research Institute in Tokyo. “Japan’s business cycle isn’t working. When no old companies go out of business, no new ones can come in because there isn’t room. The old companies will always compete on price, simply because they can.”

The last time not a single Japanese corporate titan went belly up was a four-year stretch 26 years ago, according to a report published this week by research firm Teikoku Databank. Back then, though, an overheated Japanese economy averaged 5.5% growth per year and then hit a wall when stock and real estate asset bubbles burst. This time, ultra-low interest rates and government loan guarantees left over from the global financial crisis are keeping companies afloat. Prime Minister Shinzo Abe touts fewer business failures as an economic success, but critics say too-easy credit is keeping “zombie” firms alive, worsening labor shortages, and excess competition is putting downward pressure on prices.

The Austrian economist Joseph Schumpeter in 1942 coined the term “creative destruction” to describe the messy way that capitalism reinvents itself. Japan may be stuck in a rut because it refuses to take the economic pain needed for a revival. Yet it’s hardly the only country keeping companies on life support. A January study by the OECD blamed zombies – defined as firms with persistent difficulties paying interest on debt – for slowing productivity, and thus causing sluggish growth, in the developed world. In South Korea, where the shipping industry has been hit by slumping global trade, state-run banks last month agreed to lend Daewoo Shipbuilding $2.6 billion and swap debt for equity to prevent a default. It was the second time in less than two years that the troubled shipbuilder was bailed out.

In China, roughly 10% of the country’s publicly-traded companies are “among the walking dead,” being kept alive by continuous support from government and banks, according to research by He Fan, an economist at Beijing’s Renmin University. Banks keep lending, often because they don’t want to own up to their bad debts. Meanwhile, the government fears the unemployment that would result if so many troubled firms were left to wither away.

Read more …

“..the owners of property along the subway line experience a rise in property values. They owe their increased wealth and their increased incomes from the rental values of their properties to the expenditure of taxpayer dollars. If these gains were taxed away, the subway line could have been financed without taxpayers’ money.”

The World’s Best Economist (PCR)

If you want to learn real economics instead of neoliberal junk economics, read Michael Hudson’s books. What you will learn is that neoliberal economics is an apology for the rentier class and the large banks that have succeeded in financializing the economy, shifting consumer spending power from the purchase of goods and services that drive the real economy to the payment of interest and fees to banks. His latest book is J is for Junk Economics. It is written in the form of a dictionary, but the definitions give you the precise meaning of economic terms, the history of economic concepts, and describe the transformation of economics from classical economics, where the emphasis was on taxing incomes that are not the product of the production of goods and services, to neoliberal economics, which rests on the taxation of labor and production.

This is an important difference that is not easy to understand. Classical economists defined “unearned income” as “economic rent.” This is not the rent that you pay for your apartment. Economic rent is an income stream that has no counterpart in cost incurred by the receipient of the income stream. For example, when a public authority, say the city of Alexandria, Virginia, decides to connect Alexandria with Washington, D.C., and with itself, with a subway paid for with public money, the owners of property along the subway line experience a rise in property values. They owe their increased wealth and their increased incomes from the rental values of their properties to the expenditure of taxpayer dollars. If these gains were taxed away, the subway line could have been financed without taxpayers’ money.

It is these gains in value produced by the subway, or by a taxpayer-financed road across property, or by having beachfront property instead of property off the beach, or by having property on the sunny side of the street in a business area that are “economic rents.” Monopoly profits due to a unique positioning are also economic rents. Hudson adds to these rents the interest that governments pay to bondholders when governments can avoid the issuance of bonds by printing money instead of bonds. When governments allow private banks to create the money with which to purchase the government’s bonds, the governments create liabilities for taxpayers than are easily avoidable if, instead, government created the money themselves to finance their projects. The buildup of public debt is entirely unnecessary.

No less money is created by the banks that buy government bonds than would be created if the government printed money instead of bonds. The inability of neoliberal economics to differentiate income streams that are economic rents with no cost of production from produced output makes the National Income and Product Accounts, the main source of data on economic activity in the US, extremely misleading. The economy can be said to be growing because public debt-financed investment projects raise the rents along subway lines. “Free market” economists today are different from the classical free market economists. Classical economists, such as Adam Smith, understood a free market to be one in which taxation freed the economy from untaxed economic rents. In neoliberal economics, Hudson explains, “free market” means freedom for rent extraction free of government taxation and regulation. This is a huge difference.

Read more …

I got nothing. We’re doomed.

New Zealand Post To Deliver KFC (AFP)

New Zealand Post has announced its couriers will home-deliver KFC fast food, in a trial that could provide a recipe for success as letter volumes continue to dwindle. Under a pilot scheme that started this week in the North Island town of Tauranga, KFC customers can order online and have their food delivered by NZ Post drivers. KFC operator Restaurant Brands NZ said that while it knew how to produce food, it had no experience in logistics, making the postal service a natural fit. “NZ Post has an extensive delivery distribution network around New Zealand, and KFC is available in most towns nationwide,” chief executive Ian Letele said.

“With the support of NZ Post, we hope to service the home delivery needs of many more KFC customers throughout New Zealand.” New Zealand Post has struggled in the digital age as email and texts have replaced traditional “snail mail”. The state-owned service slashed 2,000 jobs, or 20% of its workforce in 2013, and two years later moved to three-day-a-week deliveries, down from six. It said in its last financial statement that the fall in letter deliveries meant it was losing up to NZ$30 million ($21 million) a year in revenue. However, it said parcel volumes were up due to rising online orders and NZ Post was concentrating on capturing more e-commerce business.

Read more …

Apr 042017
 
 April 4, 2017  Posted by at 8:59 am Finance Tagged with: , , , , , , , , , ,  Comments Off on Debt Rattle April 4 2017


Esther Bubley Child living in alley near US Capitol 1943

 

Living Standard Will Fall Without Productivity Boost, Warns IMF (G.)
67% Of Low-Income Americans Worry A Lot About Hunger, Homelessness (ZH)
The Issue With China Isn’t Trade, It’s Excess Savings (Pettis)
Toronto Bidding Wars So Fierce That Homebuyers Skip Inspections
Can Housing Bubbles Be Stopped? (WSJ)
Cernovich Explains How He Learned About Susan Rice (ZH)
The Deep State Now Works For The ‘Good Guys’ (AlJ)
The Deep State Now Works For The ‘Good Guys’ (AlJ)
Putin Derangement Syndrome Arrives (Matt Taibbi)
Euro MPs ‘Unanimously’ Condemn Dijsselbloem’s No-Show (AFP)
Greek Pensions Hot Potato Puts Tsipras in Tight Spot on Bailout (BBG)
Austerity-Crushed Greek Households Keep Cutting Food Purchases (TNH)
Youth Unemployment Shows Euro-Area Recovery Not Working for All (BBG)
Erdogan Says Turks In Europe Should Defy ‘Grandchildren Of Nazism’ (R.)
Yes, Let’s Allow The Syrian People To Decide For Themselves (Ron Paul)
New Evidence Undermines EU Report Tying Refugee Rescue Group To Smugglers (IC)
The Vanishing Art Of Seizing The Day (Krznaric)

 

 

Interesting. I’m sure Lagarde has no idea why productivity fell. She has some textbook explanation, for sure, but her ‘solutions’ are bland: education and technology. But those were available all along as productivity was falling. Plus, technology costs jobs too. Then again, for the IMF there’s always ‘reforms’ of course: more globalization. But wait: that also costs jobs. Question then: if you lose enough jobs, will productivity rise?

Living Standard Will Fall Without Productivity Boost, Warns IMF (G.)

The head of the IMF has issued a stark warning that living standards will fall around the world unless governments take urgent action to increase productivity by investing in education, cutting red tape and incentivising research and development. Christine Lagarde used a speech in Washington to tell policymakers they could not simply wait for innovation to drive up productivity growth and help living standards recover from the legacy of the global financial crisis. She highlighted a poor global record on productivity growth in recent years and said IMF analysis suggested GDP in advanced economies would be about 5% higher today if the pre-crisis trend had continued for total factor productivity growth – a broad measure of what goes into production, such as research spending.

“That would be the equivalent of adding another Japan – and more – to the global economy,” the IMF managing director in a speech to the American Enterprise Institute. Legarde warned the world could not afford to leave productivity growth in the doldrums. “Another decade of weak productivity growth would seriously undermine the rise in global living standards. Slower growth could also jeopardise the financial and social stability of some countries by making it more difficult to reduce excessive inequality and sustain private debt and public obligations. “Leaning back and waiting for artificial intelligence or other technologies to trigger a productivity revival is simply not an option.”

[..] In the UK, productivity growth has been sluggish for years and is behind most other big economies, prompting the chancellor, Philip Hammond, to pledge more investment in infrastructure and other areas with a £23bn national productivity investment fund. Calling on all governments to do more, Lagarde sought to emphasise productivity as the most important source of higher income and rising living standards. “For example, the average American worker today works only about 17 weeks to live at the annual real income level of the average worker in 1915,” she said. That kind of progress had been seen in many countries, she added. “But this engine of prosperity has slowed down in recent years, with negative consequences for growth and incomes that look very hard to unwind.”

She also echoed concerns over how rapid changes in technology had cost jobs in some sectors, hitting lower skilled workers hardest. Governments must help such workers through targeted education programmes, Lagarde said. That in turn would help solve productivity problems and create more inclusive and sustainable growth.

Read more …

Bit of a vague survery, but who today is going to be surprised at the outcome?

67% Of Low-Income Americans Worry A Lot About Hunger, Homelessness (ZH)

Something unexpected happened on the road to Obama’s economic “recovery” – according to Gallup, over the past two years, a record two-thirds, or an average of 67% of lower-income U.S. adults, up from 51% from 2010-2011, have worried “a great deal” about the problem of hunger and homelessness in the country. They are not alone: concern has also increased among middle- and upper-income Americans, but they still worry far less than do lower-income Americans. Some details: since 2001, worry has been highest among those residing in lower-income households, likely because those with limited financial resources are more at risk of going hungry or becoming homeless. A consistent majority of lower-income adults worried about the problem before 2012, but that has only increased in the past five years. Concern among middle-income Americans in 2016-2017 falls just short of the majority level at 47%, while 37% of upper-income Americans are worried.

Rising concern among all income groups could be a result of the political and media attention devoted to U.S. income inequality in recent years. Americans may also worry more about hunger and homelessness when other issues are not dominating the national consciousness, such as the economy and budget deficit were in 2010-2011 and terrorism was in the years after 9/11. Overall, 47% of Americans now worry about hunger and homelessness “a great deal,” according to Gallup’s March 1-5 survey, tied with 2016 as the high in the trend. Previously, concern had been as low as 35% in 2004 and as high as 45% in 2001, the first year Gallup asked the question.

Read more …

In which paying off debt is counted towards savings. And not savings at household level.

The Issue With China Isn’t Trade, It’s Excess Savings (Pettis)

trade imbalances were mostly determined by direct differences in the cost of traded goods, while capital flowed from one country to another mainly to balance trade flows. Today, however, conditions have changed dramatically. Capital flows dwarf trade flows, and investment decisions by fund managers determine their direction and size. This has profound implications for trade. Large, persistent trade surpluses such as the one China runs with the U.S. are no longer the consequence of explicitly mercantilist measures. Instead, they’re driven by policies that distort domestic savings rates by subsidizing production at the expense of households. Take Germany, for example. After a decade of trade deficits and high unemployment, worried leaders in Berlin implemented labor reforms in 2003-05 whose main effect was to weaken wage growth.

As unemployment dropped and business profits surged, the reforms also shrunk the share of national income allocated to ordinary households, driving down the consumption share as well. German businesses, blessed with higher profits, responded unhelpfully. They paid down debt instead of investing the profits, increasing the share of national income devoted to savings. As the growing gap between German savings and investment soon became among the largest in history, so did the German trade surplus. German banks exported the excess savings into other European countries, no longer protected by the interest-rate and currency adjustments proscribed under the rules of the euro. By 2009, after insolvency prevented one European country after another from absorbing any more of the German tsunami of capital outflows, these shifted to countries outside Europe.

While the experiences of China and Japan may seem different on the surface, they were broadly similar in impact. China, for example, severely repressed interest rates in order to boost growth. This simultaneously reduced the household share of Chinese GDP to among the lowest ever recorded and raised Chinese savings to among the highest – so high that, even with the fastest-rising investment in the world, China still needed large trade surpluses to make up for weak domestic demand. What happens next is the most confusing part for economists who don’t understand how trade has changed. When new capital pours into advanced economies that have always had easy access to investment – such as the U.S. and southern Europe – it doesn’t boost investment further. Instead it automatically causes savings to contract.

Read more …

Not a bubble. Why of sound mind gets into this?

Toronto Bidding Wars So Fierce That Homebuyers Skip Inspections

In Toronto, some homebuyers are so desperate to win bidding wars that they’re rushing to make offers without even getting an inspection. The average price for a detached home in Canada’s largest metropolitan area jumped to C$1.21 million ($905,950) in February, up a third from a year earlier, amid a dearth of properties for sale. In the same period, Toronto-based home-inspection firm Carson Dunlop saw a 34% drop in volume. Murray Parish, president of the Ontario Association of Home Inspectors, said he’s seen a 30% decline at his firm, Parish Home Inspections. “The bottom line is we are in a shortage of supply,’’ said Tasis Giannoukakis, a Century 21 broker based in Toronto, adding that it’s not uncommon to see bids of as much as C$200,000 over the asking price.

“That pressure is what’s causing everybody to remove the conditions on an inspection.’’ Home-price increases in North America’s fourth-largest city and its suburbs have outpaced growth in places including Manhattan, Vancouver, Seattle and San Francisco, leading local officials to search for ways to control price gains and spurring concerns a correction may be coming. The frothy market, buoyed by low interest rates, is resulting in frenzied bidding wars, causing many shoppers to leave once-standard clauses such as a professional home inspection and financing contingencies out of their purchase offers. A move away from inspections isn’t unique to Toronto.

Vancouver, Canada’s hottest real estate market until Toronto took that mantle last year, saw a surge in unconditional purchase offers in the first half of 2016, said Adil Dinani, an agent with Royal LePage West Real Estate Services in the West Coast city. The same is true in hot U.S. markets. Mark Attarha, president of Bay Sotheby’s International Realty, which has seven offices in the in San Francisco Bay area, said he’s seeing a spate of offers without contingencies, along with a raft of “overbidding.” Attarha estimates that 75% of prospective buyers he works with are accepting a home-inspection report from the seller rather than ordering their own or including an inspection clause in their purchase offers.

Read more …

Let your house do the work for you: “Demand in Melbourne is driving up valuations of house land plots by $7,500 a week..”

Can Housing Bubbles Be Stopped? (WSJ)

From Australia to Canada, authorities are learning a hard lesson in their efforts to curb the foreign money flooding their property markets: deterrents quickly lose their punch. In recent years, regulators in several countries have raised taxes on residential real-estate purchases, required banks to demand bigger down payments and taxed empty homes—to little long-term avail. Now they are trying again. Australian regulators on Friday ordered banks to limit the flow of interest-only loans—a villain in the U.S. subprime mortgage crisis—to 30% of new loans from about 40% now and to restrict loans to people making small down payments. The country’s corporate regulator said on Monday it was investigating whether lenders and mortgage brokers are inappropriately promoting interest-only loans.

New South Wales state, home to Sydney, is considering a further property-tax rise for foreigners. The moves are an attempt to blunt a price rise that has resumed after the last crackdown starting in late 2014. House prices in Sydney and Melbourne, the nation’s two biggest cities, rose by about 19% and 16% in the year through Mar. 31, much of it in the last six months, according to an analysis by data company CoreLogic released on Monday. The median house price in Sydney hit $821,000 last year, according to Demographia, a U.S. think tank. It said the figure, equivalent to 12.2 times the average annual wage, made Sydney the world’s second most expensive city after Hong Kong on a house-price-to-income ratio. Demand in Melbourne is driving up valuations of house land plots by $7,500 a week, said Giles Bray, a local mortgage broker.

Developers are now building 300-square-foot apartments—roughly a third of the average new American unit—with 8-foot ceiling heights to pack in more units. In the past three years, foreigners have bought thousands of them sight unseen. “They are poorly built and lack light,” Mr. Bray said. The gains are testing the limits of government measures aimed at preventing housing bubbles from developing in cities around the world. The frothiness is driven by ultralow interest rates at central banks that spur investors to hunt for returns in tangible assets. Chinese investors also are a big driver of the phenomenon. The concern: foreign, speculative investors are making properties unaffordable for locals and adding economic risk because these buyers are more likely to flee in a downturn. In 2010 the Reserve Bank of Australia tightened policy to cool things off. But lately the central bank has been keeping rates at a record-low 1.5% to aid an economy that is still struggling to adjust at the end of a long mining boom.

Read more …

The Susan Rice story has many quirks. A big one: what did Obama know? RandPaul wants her to testify under oath to that. It could go a long way towards proving Trump’s wiretap allegations. But also very odd: BBG and NYT sat on the story for -at least- days. And yes, Cernovich is a bit of an oddball. But he has proof, something that’s still sorely lacking for all of the Russia narrative. So much so that it doesn’t matter anymore if proof comes eventually: the US media have published millions of words of innuendo and accusations without any proof. That may work in the echo chamber, but it kills your credibility outside of it.

Cernovich Explains How He Learned About Susan Rice (ZH)

Ever since Mike Cernovich dropped the bombshell report over the weekend outing Obama’s National Security Advisor, Susan Rice, as the person behind the unmasking of the identity of various members of Trump’s team who were ‘incidentally’ surveilled during the 2016 campaign, a report which was subsequently confirmed by Eli Lake of Bloomberg earlier this morning, everyone has been wondering who within the Trump White House or the intelligence community supplied him with such a massive scoop. But, as it turns out, Cernovich didn’t need a ‘deep throat’ within the NSA or CIA for his blockbuster scoop, all he needed was some well-placed sources inside of a couple of America’s corrupt mainstream media outlets. As Cernovich explains below, his sources for the Susan Rice story were actually folks working at Bloomberg and the New York Times who revealed that both Eli Lake (Bloomberg) and Maggie Haberman (NYT) were sitting on the Susan Rice story in order to protect the Obama administration.

“Maggie Haberman had it. She will not run any articles that are critical of the Obama administration.” “Eli Lake had it. He didn’t want to run it and Bloomberg didn’t want to run it because it vindicates Trump’s claim that he had been spied upon. And Eli Lake is a ‘never Trumper.’ Bloomberg was a ‘never Trump’ publication.”

“I’m showing you the politics of ‘real journalism’. ‘Real journalism’ is that Bloomberg had it and the New York Times had it but they wouldn’t run it because they don’t want to run any stories that would make Obama look bad or that will vindicate Trump. They only want to run stories that make Trump look bad so that’s why they sat on it.”

“So where did I get the story? I didn’t get it from the intelligence community. Everybody’s trying to figure out where I got it from. I got it from somebody who works in one of those media companies. I have spies in every media organization. I got people in news rooms. I got it from a source within the news room who said ‘Cernovich, they’re sitting on this story, they’re not going to run it, so you can run it’.”

“If you’re at Bloomberg, I have people in there. If you’re at the New York Times, I have people in there. LA Times, Washington Post, you name it, I have my people in there. I got IT people in every major news room in this country. The IT people see every email so that’s how I knew it.”

Read more …

“Anyone, including experienced journalists, who raises questions or recommends caution is immediately dismissed as a Putin stooge or a Trump apologist by an army of progressives convinced, with obdurate certainty, of who is guilty and what is true.”

The Deep State Now Works For The ‘Good Guys’ (AlJ)

US progressives are clinging on to false heroes like the FBI and CIA in their existential battle to dethrone Trump. [..] In Comey’s case, his rather abrupt and miraculous transformation from devil to saint came after his March 20 testimony before a House Intelligence Committee where he finally, belatedly, confirmed that the FBI was indeed investigating the disturbing, cob-web-like connections between the Trump campaign team and Russia before, during and after the presidential election. Ah, now that the G-men are on the case, the indictments would surely follow, the familiar progressive chorus wrote. Trump’s days are numbered. Resignation and impeachment are in the offing. The cavalry is riding to America’s rescue. Comey’s role in torpedoing Clinton’s chances at becoming America’s first female president has fast receded into the rear-view mirror.

The political executioner has become a prince of probity and the rule of law. Defying history and credulity, joining Comey and the FBI in the progressives’ new-found white knight brigade are, incredibly, the CIA and the National Security Agency (NSA). Like the FBI, the spooks are also being widely celebrated as guardian angels in the existential battle to dethrone the treasonous King. The thinking – such as it is – goes something like this: the CIA and NSA must have the surreptitious “goods” on Trump and his gang of Russian mob and FSB consorting thugs that they will, in time, share with Americans and the world. The “goods” perhaps involves oodles of various types of intercepted and incriminating communications and possibly even a notorious Moscow hotel videotape, starring the deviant king himself.

And the hope is that, taken together, it will all eventually expose and doom him. Apparently, these days, the “deep state” is no longer working for the bad guys, but the good guys. It has, in effect, changed sides. Sure, the deep state may have denied Clinton her rightful and long overdue crown and has, for years, systematically spied on, collected and stored intimate details about the lives of countless people with little or no oversight, let alone a warrant. But progressives are too busy letting bygones be bygones to remember. The good guys have fixed their crosshairs on Trump and treacherous company and that’s all that matters.

Read more …

“One way we recognize a mass hysteria movement is that everyone who doesn’t believe is accused of being in on the plot..” Journalism should not ever be about ‘belief’, but about proven facts. But there are none. oh, and the syndrome doesn’t ‘arrive’, it’s been here for a long time.

Putin Derangement Syndrome Arrives (Matt Taibbi)

So Michael Flynn, who was Donald Trump’s national security adviser before he got busted talking out of school to Russia’s ambassador, has reportedly offered to testify in exchange for immunity. For seemingly the 100th time, social media is exploding. This is it! The big reveal! Perhaps it will come off just the way people are expecting. Perhaps Flynn will get a deal, walk into the House or the Senate surrounded by a phalanx of lawyers, and unspool the whole sordid conspiracy. He will explain that Donald Trump, compromised by ancient deals with Russian mobsters, and perhaps even blackmailed by an unspeakable KGB sex tape, made a secret deal. He’ll say Trump agreed to downplay the obvious benefits of an armed proxy war in Ukraine with nuclear-armed Russia in exchange for Vladimir Putin’s help in stealing the emails of Debbie Wasserman-Schultz and John Podesta.

I personally would be surprised if this turned out to be the narrative, mainly because we haven’t seen any real evidence of it. But episodes like the Flynn story have even the most careful reporters paralyzed. What if, tomorrow, it all turns out to be true? What if reality does turn out to be a massive connect-the-dots image of St. Basil’s Cathedral sitting atop the White House? (This was suddenly legitimate British conspiracist Louise Mensch’s construction in The New York Times last week.) What if all the Glenn Beck-style far-out charts with the circles and arrows somehow all make sense? This is one of the tricks that keeps every good conspiracy theory going. Nobody wants to be the one claiming the emperor has no clothes the day His Highness walks out naked. And this Russia thing has spun out of control into just such an exercise of conspiratorial mass hysteria.

Even I think there should be a legitimate independent investigation – one that, given Trump’s history, might uncover all sorts of things. But almost irrespective of what ends up being uncovered on the Trump side, the public prosecution of this affair has taken on a malevolent life of its own. One way we recognize a mass hysteria movement is that everyone who doesn’t believe is accused of being in on the plot. This has been going on virtually unrestrained in both political and media circles in recent weeks.

Read more …

Illustrating what a dud the European Parliament is. They want the man who’s negotiating with Greece to come explain what he does, and he simply refuses. Imagine that in Congress. A Dutch MP said Dijsselbloem is now effectively a ‘persona non grata’ in the European Parliament. And remember: the Eurogroup has no official status, so what can thay do?

Euro MPs ‘Unanimously’ Condemn Dijsselbloem’s No-Show (AFP)

European Parliament lawmakers on Monday “unanimously condemned” the refusal by Eurogroup chief Jeroen Dijsselbloem to appear at a hearing on Greece this week. Dijsselbloem, who is also the Dutch finance minister, has been facing calls to step down since he suggested in an interview in a German newspaper that southern European countries blew their money on “drinks and women”. In the wake of the controversy, the parliament had invited the head of the Eurogroup of eurozone finance ministers to discuss the stalled Greek bailout at this week’s plenary session in Strasbourg. Expectations were that MEP’s would use the opportunity to harshly criticise Dijsselbloem.

“Unanimous condemnation by the European Parliament against Jeroen Dijsselbloem for umpteenth refusal to answer questions on sacrifices made by our citizens,” European Parliament chief Antonio Tajani posted on Twitter. MEP Gianni Pittella, the head of the left-of-centre S&D group, said Dijsselbloem’s refusal to attend was “a further slight after his previous shameful remarks”. “He should resign,” Pittella added. In a letter on Thursday, Dijsselbloem said he was unable to attend the hearing because of a scheduling conflict.

Read more …

To repeat: Why are Greek pension costs relatively high? Because “The country hasn’t yet put in place a proper social welfare system”. And it can’t of course, because that would cost money it’s not allowed to spend by Brussels. Let’s see all benefits expenditures for all nations, and then talk again.

Greek Pensions Hot Potato Puts Tsipras in Tight Spot on Bailout (BBG)

Greece is set to miss yet another self-imposed deadline with no accord expected when the Eurogroup meets in Malta on Friday. While there has been “a lot of progress,” there will be no agreement on April 7, Jeroen Dijsselbloem, the group’s chief, said on March 31. “That’s too early.” Europe has become impatient with Greece as the region prepares for Brexit and the threat from emerging populist movements. The failure to reach an accord stems in part from the conflicting political interests of the two sides — Tsipras doesn’t want to face a scheduled general election in 2019 at the same time as pensioners take a cut of as much as 30% in their monthly payments. Creditors worry that if the plan is put in place after 2019, a new government that’s not a signatory of the accord might not implement it.

The IMF, backed by Greece’s euro-area creditors, is pushing Athens to save €1.8 billion, or 1% of GDP, from pension cuts. Greece spends more than 13.3% of its GDP on old-age pensions, the highest proportion in the EU, Eurostat figures show. Greece, which crossed what it once characterized as a red line and accepted the need for pension cuts, is asking creditors to give the country more time to see how measures agreed to last year work before embarking on anything new. The country hasn’t yet put in place a proper social welfare system , making pensions the de facto safety net for many families, supporting several generations. A survey in January showed that 49% of households relied on pensions as a primary source of income.

Further cuts in pensions has become a thorny issue to sell at home as pensioners use their ever-shrinking income to support jobless children at time when youth unemployment stands at more than 40%. Take Panagiotis Papapetrou, for example. The 65-year-old retiree and his wife, who collectively take home a pension of €1,480 a month, support two grown children. “Not only can we not afford any kind of entertainment, but we also have made cuts in our diet,” he said. “We eat less meat and we seek to buy cheap goods.”

Read more …

This economy cannot survive. It will keep on shrinking. There is no other possibility as long as there is a Troika. Economies run on consumer spending, and that keeps on falling in Greece. It needs stimulus, not austerity. Europe is creating a powder keg here.

Austerity-Crushed Greek Households Keep Cutting Food Purchases (TNH)

More than seven years into a brutal economic crisis worsened by austerity measures hitting workers, pensioners and the poor, Greek households are continuing to cut food purchases, even for essential items. Repeated salary and pension cuts have left millions unable to keep up, with a survey by the Marketing Laboratory of the Athens University of Economics and Business showing consumers spending almost €40 ($42.72) less a month at supermarkets this year compared to 2016. Average monthly household expenditure came to €274 against €310 a year earlier, with the 13% decline also reflected on supermarket turnover as the sector struggles to lure customers despite sales and 2-for-1 deals.

The study was aimed at average consumers who make up the bulk of supermarket customers drawing a bleak picture of their ability to buy what they want and as more turn away from brand names in favor of cheaper goods. Some 63.4% of Greeks said they buy fewer products and 45.8% buy only the absolute necessities with 54.4% turning to private-label chain products. Data from Nielsen researchers showed that in 2016, some 51% of brand products sold in supermarket were on special offer, up from 33.1% in 2009 and after super markets wouldn’t cut prices despite the crisis, until they were forced to do so by lagging sales. Sales fell another 4% in 2016, driving the cumulative downturn to 18% since 2009, as the crisis began and a year before the then-ruling PASOK Socialists asked for what turned into €326 billion in three bailouts.

The data compiled by Nielsen researchers showed that besides a sharp decline in demand and with more people turning as well to generic brands and looking for offers, that mergers and acquisitions had taken a big bite out of the sector. The phenomenon is likely to continue for several more years with analysts expecting a further drop of 2-3%. In 2016, the sales value of food retailing – including small grocery stores – amounted to about €10.78 billion, down 4.1% from 2015, pushing the sector back to 2005 levels and showing the devastating effect of the crisis and harsh austerity measures that brought big pay cuts, tax hikes, slashed pensions and worker firings. The number of small food retail stores has dropped from about 32,000 in 2005 to 27,000 in 2015 with major chains showing their sales values plummet at the same time with only the discount food chain Lidl showing increases.

Read more …

It shows Euro area is not working. Period.

Youth Unemployment Shows Euro-Area Recovery Not Working for All (BBG)

For all the continued momentum in the euro-area recovery, differing prospects for young people across the bloc show the wounds of the debt crisis remain very raw. The unemployment rate for those under age 25 was at 19.4% in February, according to data on Monday. While that’s an improvement compared with a year ago – and is the lowest since 2009 – it’s more than twice the total for the euro-area of 9.5%. In four southern European countries – Greece, Spain, Italy and Cyprus – at least three in 10 young people are still out of work. [..] the unevenness across geography and age groups show how complicated it is for the ECB to set monetary policy for 19 nations.

In Germany, the youth unemployment rate is just 6.6%. That’s lower than the overall rate in Spain has ever been since the euro’s introduction. In Greece, still struggling seven years after its first bailout, the figure in December was almost seven times greater than Germany’s, at 45.2%. Draghi has said that monetary policy can’t take the whole weight of the economic recovery, and repeatedly urged governments to implement reforms to reduce structural unemployment. That’s made harder by the rise of populist parties across Europe, with France and Germany all facing general elections in the coming months.

Read more …

Waiting for real craziness over the next 2 weeks.

Erdogan Says Turks In Europe Should Defy ‘Grandchildren Of Nazism’ (R.)

President Tayyip Erdogan on Monday called on Turkish voters in Europe to defy the “grandchildren of Nazism” and back a referendum this month on changing the constitution, comments likely to cause further ire in Europe. Erdogan has repeatedly lashed out at European countries, including Germany and the Netherlands, in campaigning for the referendum, accusing them of “Nazi-like” tactics for banning his ministers from speaking to rallies of Turkish voters abroad. Both the Germans and Dutch have been incensed by the comparisons to Nazism and German Chancellor Angela Merkel has said the references must stop. “With this determination, we will never allow three or four European fascists … from harming this country’s honor and pride,” Erdogan told a packed crowd of flag-waving supporters in the Black Sea city of Rize, where his family comes from.

“I call on my brothers and sisters voting in Europe…give the appropriate answer to those imposing this fascist oppression and the grandchildren of Nazism.” Erdogan is counting on the support of expatriates in Europe, including the 1.4 million Turks eligible to vote in Germany, to pass constitutional changes that would give him sweeping presidential powers. But ties with Europe have deteriorated in the run-up to the campaign. Erdogan last month said Turkey would reevaluate its relationship with the bloc, and may even hold a second referendum on whether to continue accession talks. On Monday, he said he could take the issue of whether Turkey should restore the death penalty to referendum if necessary. “The European Union will not like this. But I don’t care what Hans, George or Helga say, I care what Hasan, Ahmet, Mehmet, Ayse and Fatma say. I care what God says… If necessary, we will take this issue to another referendum as well,” he told the rally.

Read more …

“Congress can rein him in with very little effort by saying no money can be spent to deploy US troops to areas where they may encounter hostilities unless a state of war is declared.”

Yes, Let’s Allow The Syrian People To Decide For Themselves (Ron Paul)

Is common sense beginning to creep into US policy in the Middle East? Last week Secretary of State Rex Tillerson said that the longer-term status of Syrian President Assad would be “decided by the Syrian people.” The media reported this as a radical shift in US foreign policy, but isn’t this just stating what should be obvious? What gives any country the right to determine who rules someone else? Washington is currently paralyzed by evidence-free rumors that the Russians somehow influenced our elections, but no one blinks an eye when Washington declares that one or another foreign leader “must go.” It’s only too bad that President Obama hadn’t followed this back in 2011 instead of declaring that Assad had to go and then arming rebel groups who ended up being allies with al-Qaeda.

Imagine how many thousands of lives and billions of dollars would have been saved by following this policy in the first place. Imagine the millions of refugees who could still be in their homes, running their businesses, living their lives. Will the Trump Administration actually follow through on Tillerson’s Syria policy statement? It is too early to tell. The President has illegally sent hundreds of US troops to fight on the ground in Syria. Current US positions in eastern Syria suggest that Washington may be looking to carve out parts of oil-rich areas of the country for some kind of future federation. The White House followed up on Tillerson’s comments by stating that getting rid of Assad was no longer a top priority for the US. This also sounds good. But does this mean that once the current top priority, destroying ISIS, is completed, Washington may return to its active measures to unseat the Syrian president?

Neocons in Washington still insist that the rise of ISIS in Syria was due to President Assad, but in fact ISIS did not appear in Syria until the US began trying to overthrow Assad. They haven’t given up on their desire to overthrow the Syrian government and they do have influence in this Administration. If the Trump Administration is serious about letting the people of Syria decide their fate he needs to take concrete steps. Rather than sending in more troops to fight an ISIS already on its last legs, he must bring US troops home and prohibit the CIA from further destabilizing the country.

It would also be nice if Congress would wake up from its long slumber and start following the Constitution. The President (and his predecessors) have taken this country to war repeatedly without proper Constitutionally-required authority to do so. The president has reportedly decided not to even bother announcing where next he plans to send the troops. Congress can rein him in with very little effort by saying no money can be spent to deploy US troops to areas where they may encounter hostilities unless a state of war is declared.

Read more …

Frontex plays a very ugly role here. We saw that coming from miles away.

New Evidence Undermines EU Report Tying Refugee Rescue Group To Smugglers (IC)

Last month, an Italian prosecutor opened an investigation into whether nonprofits working to rescue refugees in the Mediterranean had connections to smuggling operations. “We want to know who is behind all these humanitarian groups that have proliferated in the last few years,” the prosecutor said, and “where all the money they have is coming from.” The implication of the investigation is inflammatory: Why would humanitarian groups want to have anything to do with human traffickers or smugglers? But the idea that nonprofits are directly involved in smuggling people into Europe has swept through conservative media in recent months, fueled by a news report that the EU’s border agency, Frontex, had “accused charities operating in the Mediterranean of colluding with people smugglers.”

The report, which appeared in the Financial Times in December, didn’t name any particular charities, and it quickly started to show holes; within a week, the paper issued a correction and Frontex distanced itself from the accusations. Despite the walk-back, the story stuck, and the Italian prosecutor cited Frontex’s concerns about “collusion with smugglers” in announcing his investigation. The Intercept has obtained a full copy of the Frontex report on which the Financial Times story was based. The report, along with video evidence and interviews with rescue workers who witnessed the incident described in it, further undermines the allegations of collusion. In the report, Frontex does say that people were smuggled to Europe via an NGO ship. But the report provides little evidence for the allegation, and what it does contain is contradicted by the rescue crew.

The confusion shows the fraught conditions of rescue work in the Mediterranean – where smugglers and opportunists do take advantage of refugees and their rescuers, but where the situation is not always so cut and dry. In dire rescues, if a nonprofit accepts help from nearby Libyan boats, they may have no idea who they are working with. “It’s not us that force the people on the boats and cause them to be out there. But once they are out there, we all have to apply maritime law,” said Ruben Neugebauer, who works with the group Sea-Watch. “If there is a boat in distress, we are obliged to help, but also a potential smuggler is also obliged to help.”

Read more …

Watching TV. Still far more important than other media. “..television takes up a full 50% of our leisure time..” and “if you live to 75, you will have spent around nine years of your life watching television.”

The Vanishing Art Of Seizing The Day (Krznaric)

Carpe diem – seize the day – is one of the oldest philosophical mottos in Western history. First uttered by the Roman poet Horace over 2,000 years ago, it retains an extraordinary resonance in popular culture. Ask someone to spell out their philosophy of life and there’s a good chance they will say something like “seize the day” or “live as if there’s no tomorrow” – even if they appear to be trapped by routine or paralysed by procrastination. It’s a message found in Hollywood films like Dead Poets Society, in one of the most successful brand campaigns of the last century (“Just Do It”), and in the social media hashtag #yolo (“you only live once”). Almost every language has an equivalent expression for the original Latin phrase. Carpe diem has been a call to arms for everyone from the Jewish sage Hillel the Elder, who in the first century bce asked, “If not now, when?”, to the Rastafarian sage Bob Marley, who sang out: “Wake up and live!”

However, in the course of writing my new book on the vanishing art of seizing the day, I discovered that carpe diem has been hijacked – in part, by the most popular leisure pursuit in the Western world. I loved television as a kid, fitting in an hour before school each day (Thunderbirds, Superheroes) and at least an hour-and-a-half before dinner (5.30: Wheel of Fortune, 6.00: The Goodies, 6.30: Dr Who). What I didn’t realise as a teenager, as I sat on my beanbag in suburban Sydney making the agonising decision whether to break tradition and watch Gilligan’s Island instead of The Goodies, was that I was absorbed in a ritual that ranks as one of the most momentous cultural transformations ever experienced by humankind. Within less than 50 years of the first ever television demonstration in

Selfridges London department store in 1925, around 99 per cent of Western households had a set. Today the typical European or American watches an average of around three hours per day, whether it’s on flat-screen TVs, computers, phones or other devices. This is apart from time spent engaged in digital pursuits such as internet surfing, social media, texting or video games. So television takes up a full 50% of our leisure time, and more time than we spend doing any other single activity apart from work or sleep. Perhaps the best way to grasp how much TV has colonised our lives is to tape the following statistic to your remote control: assuming your viewing habits are somewhere near average, if you live to 75, you will have spent around nine years of your life watching television.

Read more …