Jan 082021
 
 January 8, 2021  Posted by at 9:57 am Finance Tagged with: , , , , , , , , , ,  56 Responses »


Joan Miro The tilled field 1924

 

Only In Your Imagination Was That An Attempted “Coup” (Tracey)
Violence in the Capitol, Dangers in the Aftermath (Greenwald)
Enough With The Outrage (PL)
Facebook, Twitter Finally Do Slightly More Than Nothing About Trump (IC)
US Capitol Police Say Reports Of Officer Death Not Accurate (R.)
Donald Trump’s Ruinous Legacy (Tracey)
The US and UK May Not Will Assange’s Death, But … (Cook)
Biden’s One-Two Stimulus Punch (Axios)
There Are So Many Covid Patients, Younger This Time (Anon)
Very Risky To Delay 2nd Dose Of COVID19 Vaccine – Former FDA Director (Hill)
British Scientists Develop World’s First Covid-19 Vaccine Smart Patch (Unilad)
Americans Need Federal Commission To Look Into The 2020 Election (Turley)

 

 

 

 

All I saw was a bunch of clowns.

Only In Your Imagination Was That An Attempted “Coup” (Tracey)

We are being told that a “coup attempt” no longer needs to be understood as constituting an “attempt” to seize control of the government — as had generally been the common understanding of the term before the events of yesterday, which have caused the entire political and media establishment to go completely haywire Is it unusual for a mob to breach the Capitol Building — ransacking offices, taking goofy selfies, and disrupting the proceedings of Congress for a few hours? Yes, that’s unusual. But the idea that this was a real attempt at a “coup” — meaning an attempt to seize by force the reins of the most powerful state in world history — is so preposterous that you really have to be a special kind of deluded in order to believe it.

Or if not deluded, you have to believe that using such terminology serves some other political purpose. Such as, perhaps, imposing even more stringent censorship on social media, where the “coup” is reported to have been organized. Or inflicting punishment on the man who is accused of “inciting” the coup, which you’ve spent four years desperately craving to do anyway. He’s already been effectively banned from Facebook, Instagram, and Twitter — a rubicon-crossing event in the suppression of political speech which, of course, is being cheered by all the usual suspects who otherwise claim to be stalwart defenders of enlightened liberal values. At no point yesterday was the American government at risk of being “overthrown,” as members of Congress have laughably suggested.

Per usual, our guardians of consensus can’t bring themselves to describe what unfolded with any degree of dispassion or calm. Instead we’re told by the incoming Senate Majority Leader, for example, that January 6, 2021 will now “live in infamy” right alongside December 7, 1941. Elected officials issued emotional notices that they were “okay,” like they had just narrowly avoided being crushed in an earthquake, or escaped the World Trade Center on 9/11. This is made all the more odd because the only person upon whom lethal force was committed appears to have been a Trump-supporting woman who was shot point-blank in the throat by a Capitol Hill police officer. She’s now dead. Congress was temporarily inconvenienced.

Journalists and pundits, glorying in their natural state — which is to peddle as much free-flowing hysteria as possible — eagerly invoke all the same rhetoric that they’d abhor in other circumstances on civil libertarian grounds. “Domestic terrorism,” “insurrection,” and other such terms now being promoted by the corporate media will nicely advance the upcoming project of “making sure something like this never happens again.” Use your imagination as to what kind of remedial measures that will entail. Trump’s promotion of election fraud fantasies has been a disaster not just for him, but for his “movement” — such as it exists — and it’s obvious that a large segment of the population actively wants to be deceived about such matters.

But the notion that Trump has “incited” a violent insurrection is laughable. His speech Monday afternoon that preceded the march to the Capitol was another standard-fare Trump grievance fest, except without the humor that used to make them kind of entertaining. Trump didn’t command that his followers physically breach the Capitol Building. In fact, after previously saying he would join the march, he seems to just have gone home to tweet and watch TV. So, basically his normal routine on a typical day, minus a trip to the golf course.

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“..striking at cherished national symbols — the World Trade Center, the Pentagon, the Capitol — ensures rage and terror far beyond body counts or other concrete harms.”

It’s about cliockbait, Glenn. Not reason.

Violence in the Capitol, Dangers in the Aftermath (Greenwald)

The U.S. Capitol remains a potent and cherished symbol even for Americans who are deeply cynical about the ruling class and political system. Its nobility is something continually engrained deep into our collective psyche since childhood, and that meaning endures even when our rational faculties reject it. It is therefore not hard to understand why watching a marauding band of hooligans invade and deface both the House and the Senate, without any identifiable objective other than venting grievances, reflexively engenders a patriotic disgust across the political spectrum. It is unhinged to the point of being obscene to compare yesterday’s incursion to the 9/11 attack or (as Sen. Chuck Schumer did last night) to Pearl Harbor. By every metric, the magnitude and destructiveness of those two events are in an entirely different universe.

But that does not mean there are no applicable lessons to be drawn from those prior attacks. One is that striking at cherished national symbols — the World Trade Center, the Pentagon, the Capitol — ensures rage and terror far beyond body counts or other concrete harms. That is one major reason that yesterday’s event received far more attention and commentary, and will likely produce far greater consequences, than much deadlier incidents, such as the still-motive-unknown 2017 Las Vegas mass shooting that killed 59 or the 2016 Orlando shooting that left 49 dead at the Pulse nightclub. Unlike even horrific indiscriminate shooting sprees, an attack on a symbol of national power will be perceived as an attack on the state or even the society itself.

There are other, more important historical lessons to draw not only from the 9/11 attack but subsequent terrorism on U.S. soil. One is the importance of resisting the coercive framework that demands everyone choose one of two extremes: that the incident is either (a) insignificant or even justifiable, or (b) is an earth-shattering, radically transformative event that demands radical, transformative state responses. This reductive, binary framework is anti-intellectual and dangerous. One can condemn a particular act while resisting the attempt to inflate the dangers it poses. One can acknowledge the very real existence of a threat while also warning of the harms, often far greater, from proposed solutions.

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“They’re not gonna stop. And everyone beware because they’re not gonna stop. They’re not gonna stop before Election Day and they’re not going to stop after Election Day. And everyone should take note of that. They’re not gonna let up and they should not.”

Enough With The Outrage (PL)

Like pretty much all conservatives, I have consistently criticized riots and other forms of political violence for many years. That includes yesterday’s Washington, D.C. riot. You can’t say the same about liberals, however. Until yesterday, one might have thought that liberals consider rioting and other forms of political violence to be as American as apple pie. You could write a book in support of that proposition, but for now let’s cite just a few examples. Do you remember when President Trump was inaugurated on January 20, 2017? Leftist Democrats rioted in Washington that day. That riot was arguably worse, more violent and more destructive, than what happened in D.C. yesterday. The liberal rioters destroyed stores, set vehicles on fire and battled with the police. Six police officers were wounded.

I don’t recall a single Democratic office-holder denouncing the Democrats’ Inauguration Day riot, and the Associated Press came perilously close to praising the rioters. Over the ensuing four years, Antifa and Black Lives Matter rioted countless times, bringing devastation to cities like Portland, Seattle, Kenosha and Minneapolis. Did any Democrats denounce these riots? Not that I remember. Many Democrats endorsed them, or seemed to do so. Kamala Harris, for example, said about the riots in June: “They’re not going to stop. They’re not going to stop. This is a movement, I’m telling you. They’re not gonna stop. And everyone beware because they’re not gonna stop. They’re not gonna stop before Election Day and they’re not going to stop after Election Day. And everyone should take note of that. They’re not gonna let up and they should not.”

This was after 12 people had been killed in Democrat-sanctioned rioting, and billions of dollars in destruction committed. Have any Democrats denounced Black Lives Matter for its role in the riots? Not one. Has any Democrat denounced Antifa? Not that I know of, and some, like Keith Ellison, have specifically endorsed Antifa’s political violence. Democratic Party journalists have joined the party’s politicians in excusing riots. The New York Times, for example, published an admiring profile of Antifa. The Washington Post, likewise, has carried water for Antifa. The litany could go on for a long time. Yesterday’s assault on the Capitol was outrageous, but let’s not forget that last time out-of-control demonstrators interrupted business at the Capitol, shouted down senators and pounded on the doors of the Supreme Court, it was Democrats objecting to the nomination of Brett Kavanaugh to the Supreme Court.

And speaking of assaults on capitols, did any Democrats object when leftists occupied the Wisconsin Capitol in Madison for four months, destroying property, impeding public business and violently assaulting conservatives? Not a peep.

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Are we going to celebrate corporate power in politics now? Are we inviting censorship in through the front door?

Facebook, Twitter Finally Do Slightly More Than Nothing About Trump (IC)

The advertising industry is generally acknowledged as one of the most risk-averse and craven industries on the planet, with decision-making guided largely by attempting to be as inoffensive as possible to as many people as possible, taking a position on an issue only in the weakest, safest, most carefully hedged terms available. Though companies like Facebook and Twitter hold the unfathomable power to control the distribution of information to billions of people around the world and like to think of themselves as helping bring humankind to some next level of consciousness, they are still very much in the advertising business.

As advertising companies, cowardice runs deep in the souls of Twitter, Facebook, and Google, companies that have spent the past four years looking the other way, equivocating, and contorting themselves into pretzels in an attempt to justify Trump’s unfettered access to the most powerful information distribution system in world history. Despite perennial speculation in the press as to what might psychologically or ideologically explain Mark Zuckerberg and Jack Dorsey’s total unwillingness to meaningfully act, there is just one factor: money. Twitter and Facebook are only worth anything as businesses if they can boast to advertisers of their access to an enormous swath of the American market, across political and ideological lines, and fear of a right-wing backlash has been enough to keep Peter Thiel on Facebook’s board and Trump’s voter suppression dispatches on Twitter’s servers.

According to a Facebook moderator who spoke to The Intercept on the condition of anonymity for fear of employer retaliation, watching the company drag its feet, yesterday in particular, has been excruciating. According to internal communications reviewed by The Intercept, the Capitol break-in is now considered, for purposes of Facebook’s willy-nilly application of the rules, “a violating event,” and any “praise,” “support,” or even friendly “representation” is banned on the basis of the company’s “Dangerous Organizations” policies, which this moderator explained is typically applied to posts celebrating terrorist attacks, drug cartel murders, and Aryan street gangs.

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Not sure what is going on with this.

US Capitol Police Say Reports Of Officer Death Not Accurate (R.)

U.S. Capitol Police said in a statement on Thursday that media reports that an officer had died after the storming of the Capitol by supporters of President Donald Trump were inaccurate. The agency said that several officers were injured and some hospitalized after the unrest Wednesday, but that no officers had died as a result. Four people had died after Trump’s supporters swarmed the building on Wednesday in a failed attempt to disrupt efforts to certify President-elect Joe Biden’s victory.

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“..he can rest easy knowing that he successfully used Trump as a vehicle to achieve the generations-long dream of the conservative donor class — a 6-3 majority on the Supreme Court..”

Donald Trump’s Ruinous Legacy (Tracey)

The stultification of Republican electoral strategy stems fundamentally from the fact that there has been no substantial intra-party public debate about the reasons for Trump’s loss. Even now, more than two months later, to merely state that Trump lost provokes profound rage among a large segment of the party’s voters. You can be mercilessly attacked online and threatened with career-ending repudiation for doing so; Purdue and Loeffler couldn’t deviate from this line, for fear of alienating fraud-believing Trump supporters in Georgia. But Republican turnout dipped anyway, most probably because conservative media had been completely inundated with accusations that the Republican-led state government of Georgia was complicit in a conspiracy to oust Trump. It turns out “fraud-pilling” one’s own voters might not be the most reliable path to victory.

The manic Trump-induced obsession with purported fraud thereby delayed any thoroughgoing public discussion of how Congressional Republicans over-performed in November, across many metrics, even as Trump went down to defeat. So instead of capitalising on those gains, Republicans jettisoned them. As for McConnell, it was one of the more astounding moves in recent political history to sacrifice his own Senate majority, which most of his professional life has been structured around preserving at all costs, because he was dead-set against sending out the $2,000 cheques. A figure which in the grand scheme of things, as Trump would say, is “peanuts”.

But even with the majority vanquished, McConnell will maintain a fair amount of power as minority leader. As of 20 January the Senate will stand as split 50-50 with future Vice President Kamala Harris as the tie-breaking vote. The possibility of a few Democratic defections here and there means McConnell will have plenty of opportunities to exert legislative influence. And he can rest easy knowing that he successfully used Trump as a vehicle to achieve the generations-long dream of the conservative donor class — a 6-3 majority on the Supreme Court, as well as some corporate tax cuts.

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Where is the next appeal? And when?

The US and UK May Not Will Assange’s Death, But … (Cook)

[..] while denying the extradition claim, she supported all the arguments advanced by the US accruing to itself the right to prosecute Assange – and any other journalist – for the crime of doing journalism. She ignored the facts, the expert testimony presented in court and the legal arguments – all of which favoured Assange – and backed instead what amounted to a purely political case made by the US. She disregarded warnings from Assange’s legal team that acceptance of the political rationale for extradition amounted to an all-out attack on fundamental journalistic freedoms. She established a terrifying legal precedent for the US to seize foreign journalists and prosecute them for “espionage” if they expose Washington’s crimes. Her ruling will inevitably have a profoundly chilling effect on any publication trying to dig out the truth about the US national-security state, with terrifying consequences for us all.

But while she enthusiastically backed the political case for Assange’s extradition and trial, Baraitser at the same time got the Wikileaks founder off the hook by accepting the humanitarian concerns raised by medical and prison experts. They had counselled that extradition to the US could be expected to lead to Assange spending the rest of his life in a barbaric US super-max prison, exacerbating mental health problems and the risk of suicide. Her ruling, while deeply disturbing in its political and legal implications, did at least suggest that Baraitser was ready to take a compassionate approach in regard to Assange’s health, even if not his journalistic exposure of western war crimes. He should have walked free there and then, had the US not immediately said it would appeal her decision.

Given Assange’s discharge by Baraitser, his team hoped that bail – his release from a high-security prison while the lengthy appeals process unfolds – would prove a formality. They hurried to make such an application after the extradition ruling on Monday, assuming that the legal logic of her decision dictated his release. Baraitser demurred, suggesting that they prepare their case and make it to her more fully on Wednesday. It now seems clear the judge manipulated Assange’s defence team. Apparently like Assange’s lawyers, former British ambassador Craig Murray, who has attended and reported on the hearings in detail, was lulled by Baraitser into assuming that she wanted a cast-iron case from the defence to justify a decision to release Assange on bail.

There were good reasons for their confidence. Any move to prevent his release would look perverse given that she had decided Assange should not be extradited or stand trial in the US. They were deceived. Baraitser denied bail, effectively signalling that she thinks her ruling might be wrong and overturned in a higher court. That is extraordinary. It suggests that she has no confidence in her own judgment of the facts of the case. As Murray has noted: “There was little or no precedent for the High Court overturning any ruling against extradition on Section 91 health grounds.”

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$4 trillion. Green.

Biden’s One-Two Stimulus Punch (Axios)

Joe Biden is considering asking Congress to help suffering Americans in two steps: give them the balance of their coveted $2,000 coronavirus payments, followed by a $3 trillion tax and infrastructure package. Biden is confident he can get multiple packages through Congress after Democrats won both Georgia Senate elections. The president-elect’s team also wants to get cash in Americans’ hands as quickly as possible, according to people familiar with the matter. In July Biden rolled out his Build Back Better plan, which includes billions of dollars for caregivers, incentives for manufacturers and some $4 trillion for green jobs and infrastructure spending.

He proposed paying for this plan with a series of tax increases on the wealthy, including taxing capital gains as regular income and increasing the marginal tax rate for top earners to almost 40%. Democrats are concerned that if they miss early opportunities to combat COVID and reverse its broader effect on the economy, the twin problems could cripple the rest of Biden’s presidency. The first bite would come in the form of $1,400 payments that would be added to the $600 in cash Congress approved last month. Also included in this quick-hit package would be money for state and local aid, as well as funding for vaccine distribution. Biden’s push for a tax and infrastructure plan, which is part of his “Build Back Better” program, will slide to later in the spring and be considered under budget reconciliation rules.

They allow the Senate to pass measures with a simple majority, instead of a more challenging filibuster-proof 60 votes. Biden is essentially dusting off his pre-election plans, back when many of his economic and political advisers assumed that if he won the presidency, he would carry the Senate along with him. Those ambitions were thrown into doubt when Republicans ran strong in the Senate on Election Day and Democrats’ only hope for regaining the majority was if they won the two uphill runoff elections held Tuesday. Biden’s blitz for a quick spending measure could allow him to build goodwill with Senate Republicans for a bigger package in the spring, especially if it includes liability protection the GOP wants for businesses fearing coronavirus lawsuits.

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Britain is brutal. How much of the healthcare system has been budgeted away in the past 20 years?

There Are So Many Covid Patients, Younger This Time (Anon)

Truly, I never imagined it would be this bad. Once again Covid has spread out along the hospital, the disease greedily taking over ward after ward. Surgical, paediatric, obstetric, orthopaedic; this virus does not discriminate between specialities. Outbreaks bloom even in our “clean” areas and the disease is even more ferociously infectious. Although our local tests do not differentiate strains, I presume this is the new variant. The patients are younger this time around too, and there are so many of them. They are sick. We are full. There can be no debate: this is much, much worse than the first surge. We start the morning with 10 new patients to be concerned about. These are just the worst of them; we cannot worry about those who, though less unwell, would have had us scared in days gone by.

They are scattered on general wards around the hospital, being given as much oxygen as possible through a standard mask. Most are lying prone on their fronts, breathing rapid, shallow breaths, too breathless to talk, blood oxygen saturations alarmingly low. The eldest is in his 70s but most are much younger. All urgently need respiratory support. This is ideally given non-invasively using a Cpap mask or very high oxygen flows through the nose. Like most hospitals we have set up a new respiratory-led breathing support unit for this purpose, but it filled up with patients weeks ago. Our intensive care unit, able to deliver these therapies as well as invasive ventilation for the very sickest, is also full despite being stretched and pushed way beyond its previous capacity.

Our neighbouring hospitals are under the same pressures, or worse; even if patients were well enough to transfer out safely there is no space to receive them. We divide and conquer. Some of us rush through the morning ward rounds on the breathing support and intensive care units, desperately hoping to find patients that have improved enough to step down on to a normal ward or could be swapped between the two units according to their needs. Some of us go to assess the new referrals. We make sure that everything possible has been done to avoid the need for more support but our colleagues have already been thorough. They need to come to us, and soon. We initiate difficult conversations with some patients who were frailer before catching Covid and would therefore have less chance of benefit from additional breathing therapy.

We no longer have the luxury of “giving it a go”; we have to ensure that we select only those with the best chance of survival. Getting it wrong may occupy a precious high dependency bed for many days, often ending in a difficult and symptomatic death while preventing other patients from receiving the correct therapy. Conversely, identifying those who will not survive will allow us to ensure better symptom control and a kinder end to life. These conversations, often barely intelligible through our PPE, are draining, fraught, brutal. We must justify to patients and their families, and often our colleagues too, why we cannot offer these therapies to everyone.

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All on red. Casino.

Very Risky To Delay 2nd Dose Of COVID19 Vaccine – Former FDA Director (Hill)

Questions surrounding the deployment and quantity of available COVID-19 vaccine doses linger as inoculations continue, with vaccine reticence and concerns about dose availability dominating the conversation. For the current approved vaccines, two separate shots are required, and some European countries have opted to delay the administration of the second dose in a bid to cultivate broader immunity. Both Pfizer and Moderna’s vaccines require two shots administered intramuscularly roughly three weeks apart, which the U.S. is currently undertaking. As for whether or not the U.S. should follow the lead of countries like the U.K. and Denmark, Norman Baylor, former director of the U.S. Food and Drug Administration (FDA), called the plan “very risky” on CNBC.

“I understand some of the rationale to do this, but again, it’s not really data driven,” Baylor said. “It’s a very risky venture because if it fails, you’re in worse shape.” Baylor, who previously headed the FDA’s Center for Biologics Evaluation and Research, further elaborated that there isn’t enough data to fully illustrate the immunity benefits just one dose with a prolonged second dose will bring. While more people would receive a vaccination by increasing the time between when the administration of both doses, immunity may be different from what promising clinical trials suggest. “The concern though is that space, that time, and how vulnerable you are, because…we don’t have all the data in that will indicate what the duration of protection is,” Baylor said. “If it fails, you’re in worse shape.”

The need to vaccinate more people comes as a more contagious COVID-19 strain makes its rounds through countries including the U.K. and the U.S. The U.K. in particular has seen record new daily confirmed COVID-19 cases, with 403,914 new cases recorded over the past week, per national data. This represents a 42.6 percent increase.

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In 3 years time.

British Scientists Develop World’s First Covid-19 Vaccine Smart Patch (Unilad)

Scientists from Swansea University in Wales are striving to develop the first coronavirus vaccine ‘smart patch’. The patch will use microneedles to both administer the coronavirus vaccine and monitor its efficacy for the patient by tracking the body’s immune response. The research team plans to develop a prototype by the end of March, in the hope it can be put forward for clinical trials and ultimately released to the public, as part of the effort to tackle the coronavirus outbreak. Scientists at Swansea’s IMPACT research centre hope to carry out human clinical studies in partnership with Imperial College London with the aim of making the device commercially available within three years.


Using polycarbonate or silicon millimetre-long microneedles, the smart patch can penetrate the skin to administer a vaccine. It can be held in place with a strap or tape for up to 24 hours, during which time it simultaneously measures a patient’s inflammatory response to the vaccination by monitoring biomarkers in the skin. Once the vaccine has been administered, the device is scanned to produce a data reading that can provide an understanding about the efficacy of the vaccine and the body’s response to it.

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What are the odds?

Americans Need Federal Commission To Look Into The 2020 Election (Turley)

First, and most important, this was an unprecedented election in the reliance of mail-in voting and the use of new voting systems and procedures. We need to review how that worked down to the smallest precincts and hamlets. Second, possibly tens of millions of voters believe that this election was rigged and stolen. I am not one of them. However, the integrity of our elections depends on the faith of the electorate. Roughly 40% of that electorate have lingering doubts about whether their votes actually matter. Most of the cases challenging the election were not decided on the merits. Indeed, it seems they haven’t even been allowed for discovery. Instead, they were largely dismissed on jurisdictional or standing groups or under the “laches” doctrine that they were brought too late.

Those allegations need to be conclusively proven or disproven in the interests of the country. Third, there were problems. There was not proof of systemic fraud or irregularities, but there were problems of uncounted votes, loss of key custodial information and key differences in the rules governing voting and tabulations. We have spent billions to achieve greater security and reliability after prior election controversies. Indeed, we had a prior election commission that failed to achieve those fundamental goals. A real commission will take a couple years to fully address these allegations. It will be meaningless if it’s stacked by the same reliable political cutouts used historically in federal commissions. It should be formed on a commitment of absolute transparency with public hearings and public archiving of underlying material before the issuance of any final report. That way, the public at large can analyze and contribute to the review of this evidence.

[..] The main challenge, however, remains the same: Whether Congress can appoint a real federal commission without rigging the result by appointing partisan members. In 1877, to quote from a speech of Ohio Sen. Allen Granberry Thurman, “It was perfectly clear that any bill that gave the least advantage, ay, the weight of the dust in the balance, to either party, could not become the law of the land.” Nothing has changed. The stakes are too high to allow even a dust particle to tip the difference on the ultimate findings. The dust-free option requires a dependent, not independent, commission. Otherwise, the public will be the loser.

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“Journalism is popular, but it is popular mainly as fiction. Life is one world, and life seen in the newspapers another.”
– G.K. Chesterton

 

 

 

 

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Sep 212020
 


Ray K. Metzker Europe 1961

 

Leak Shows Biggest Western Banks Finance Cartels, Terrorists & Mobsters (ZH)
Can We, Like, Stop Praising Sweden Now? (MB)
How COVID-19 Spreads (CDC)
People Not Rushing Back to Movie Theaters (NBCW)
Mitch McConnell’s Kentucky Home Targeted In Supreme Court Protest (Fox)
The War on Populism: The Final Act (CJ Hopkins)
Hunter Biden Is “Riding The Dragon” (ZH)
Biden’s Foreign Policy Advisors Loyal to Israel, Defense Contractors (CP)
Down the 1619 Project’s Memory Hole (Quillette)
JK Rowling’s Books Burned or Banned Around the World (Turley)
World’s Richest 1% Cause Double CO2 Emissions Of Poorest 50% – Oxfam (G.)
Ilargi: Why Trump Will Win (Yves Smith)

 

 

US new deaths lowest since July 5.

 

 

 

 

 

 

 

 

Biden 200 million

 

 

Lots of questions. My first and immediate one was: would this have been leaked to Assange if he had been available, and not to, of all places, BuzzFeed? Second: will the journalists and publishers (BBC et al) involved, now be treated the same way Assange has? There will be much more on this, but do keep watching out for criminal investigations. That will say a lot.

Leak Shows Biggest Western Banks Finance Cartels, Terrorists & Mobsters (ZH)

In what looks like one of the biggest leaks of private banking records since the Panama Papers, Buzzfeed News has published a lengthy investigation into how the world’s biggest banks allow dirty money from organized criminals, drug cartels, and terror groups like Al Qaeda and the Taliban to flow through their networks. The “FinCEN Files”, as Buzzfeed calls them, offer “a never-before-seen picture of corruption and complicity.” A lengthy investigation by Buzzfeed and the International Consortium of Investigative Journalists – the same group that handled the Mossack Fonseca leaks – Instead of combating financial crime, the current system of requiring banks to report all suspicious transactions to FinCen simply allows money laundering to flourish, while ensuring that any enforcement will be of the ‘whack-a-mole’ variety.

“These documents, compiled by banks, shared with the government, but kept from public view, expose the hollowness of banking safeguards, and the ease with which criminals have exploited them. Profits from deadly drug wars, fortunes embezzled from developing countries, and hard-earned savings stolen in a Ponzi scheme were all allowed to flow into and out of these financial institutions, despite warnings from the banks’ own employees. Money laundering is a crime that makes other crimes possible. It can accelerate economic inequality, drain public funds, undermine democracy, and destabilize nations — and the banks play a key role. “Some of these people in those crisp white shirts in their sharp suits are feeding off the tragedy of people dying all over the world,” said Martin Woods, a former suspicious transactions investigator for Wachovia.

Laws that were meant to stop financial crime have instead allowed it to flourish. So long as a bank files a notice that it may be facilitating criminal activity, it all but immunizes itself and its executives from criminal prosecution. The suspicious activity alert effectively gives them a free pass to keep moving the money and collecting the fees. The Financial Crimes Enforcement Network, or FinCEN, is the agency within the Treasury Department charged with combating money laundering, terrorist financing, and other financial crimes. It collects millions of these suspicious activity reports, known as SARs. It makes them available to US law enforcement agencies and other nations’ financial intelligence operations. It even compiles a report called “Kleptocracy Weekly” that summarizes the dealings of foreign leaders such as Russian President Vladimir Putin. What it does not do is force the banks to shut the money laundering down.”

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Let’s.

Can We, Like, Stop Praising Sweden Now? (MB)

I don’t expect the virus psychos to listen but here is the chart, courtesy of Greg Jericho at The Fake Left:

Sweden and EL Trumpo, hand in hand. Unleash the virus and unleash the economic decline.

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CDC update. Seemed easier as a pic. Do they still have any credibility left? You know, after Redfield’s “Act for one Man and one Mask”?

How COVID-19 Spreads (CDC)

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Common sense. Works better than any lockdown.

People Not Rushing Back to Movie Theaters (NBCW)

About three quarters of the country’s movie theaters are open, but Americans are not going back in significant numbers in the COVID-era, even with new films coming into the marketplace weekly. The biggest movies continue to limp along. According to studio estimates Sunday, Warner Bros.’ “Tenet” earned $4.7 million in its third weekend from nearly 2,930 locations, Disney’s “The New Mutants” added $1.6 million in its fourth weekend, “Unhinged” brought in $1.3 million and Sony’s rom-com “The Broken Hearts Gallery” picked up an additional $800,000 in its second frame. And newcomers aren’t faring any better. The faith-based “Infidel,” which stars Jim Caviezel, did the best with $1.5 million from just over 1,700 theaters.


This weekend also saw the limited release of two adult dramas, IFC’s “The Nest,” with Jude Law and Carrie Coon, and Bleecker Street’s “The Secrets We Keep,” with Noomi Rapace. Both played in under 500 theaters across the country and neither got much more than $200 per location. “The Nest” earned an estimated $62,000 from 301 locations and “The Secrets We Keep” brought in just under $90,000 from 471 theaters. “There’s no question that this is an extraordinarily challenging marketplace, especially for North America,” said Paul Dergarabedian, Comscore’s senior media analyst. “This is a slow roll out. It’s going to take some time.”

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Stay away from people’s homes and families.

But what curious details in the article, feels like a small town daily:

“After facing the towing of her vehicle, the woman went inside the store and bought a six-pack of beer but police arrested her anyway, the report said. The arrest prompted other protesters to start chanting, and one member of the crowd kicked a glass door and damaged it, the newspaper reported. Other protesters agreed to move vehicles that were blocking traffic on a nearby street, following a police request.”

Mitch McConnell’s Kentucky Home Targeted In Supreme Court Protest (Fox)

At least one protester was arrested Saturday after a group of about 100 people gathered outside the Kentucky home of Republican Sen. Mitch McConnell. The Senate majority leader is a key figure in determining whether a nominee appointed by President Trump will succeed the late Justice Ruth Bader Ginsburg on the Supreme Court before Election Day. “Ruth Sent Us,” and “No Ethics No Shame,” read some of the signs carried by crowd members in Louisville, local FOX station WDRB-TV reported. “Hey-hey, ho-ho, Mitch McConnell has got to go,” others chanted. Reports were unclear on whether McConnell was at home in Kentucky or in Washington on Saturday.


In addition to the impending battle over the court vacancy, McConnell, 78 – a member of the Senate since 1985 — also faces a reelection fight on Kentucky’s November ballot. One protester was arrested on charges of disorderly conduct and improper parking, after police determined she used a pharmacy parking lot without planning to patronize the store, the Courier Journal of Louisville reported. After facing the towing of her vehicle, the woman went inside the store and bought a six-pack of beer but police arrested her anyway, the report said. The arrest prompted other protesters to start chanting, and one member of the crowd kicked a glass door and damaged it, the newspaper reported. Other protesters agreed to move vehicles that were blocking traffic on a nearby street, following a police request.

2016/2020
https://twitter.com/i/status/1307877608487628802

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“..our protagonist is GloboCap (i.e., the global capitalist empire), or “democracy,” as it is known in the entertainment business.”

The War on Populism: The Final Act (CJ Hopkins)

So, it appears the War on Populism is building toward an exciting climax. All the proper pieces are in place for a Class-A GloboCap color revolution, and maybe even civil war. You got your unauthorized Putin-Nazi president, your imaginary apocalyptic pandemic, your violent identitarian civil unrest, your heavily-armed politically-polarized populace, your ominous rumblings from military quarters … you couldn’t really ask for much more. OK, the plot is pretty obvious by now (as it is in all big-budget action spectacles, which is essentially what color revolutions are), but that won’t spoil our viewing experience. The fun isn’t in guessing what is going to happen. Everybody knows what’s going to happen. The fun is in watching Bruce, or Sigourney, or “the moderate rebels,” or the GloboCap “Resistance,” take down the monster, or the terrorists, or Hitler, and save the world, or democracy, or whatever.

The show-runners at GloboCap understand this, and they are sticking to the classic Act III formula (i.e., the one they teach in all those scriptwriting seminars, which, full disclosure, I teach a few of those). They’ve been running the War on Populism by the numbers since the very beginning. I’m going to break that down in just a moment, act by act, plot point by plot point, but, first, let’s quickly cover the basics. The first thing every big Hollywood action picture (or GloboCap color revolution) needs is a solid logline to build the plot around. The logline shows us: (1) our protagonist, (2) what our protagonist is trying to do, and (3) our antagonist or antagonistic force. For example, here’s one everyone will recognize: “A computer hacker learns from mysterious rebels about the true nature of his reality and his role in the war against its controllers.”

In our case, the logline writes itself: “After America is taken over by a Russian-backed Hitlerian dictator, the forces of democracy unite to depose the tyrant and save the free world.” Donald Trump is our antagonist, of course. And what an antagonist he has been! As the deep-state spooks and the corporate media have been relentlessly repeating for the last four years, the man is both a Russian-backed traitor and literally the resurrection of Hitler! In terms of baddies, it doesn’t get any better. It goes without saying that our protagonist is GloboCap (i.e., the global capitalist empire), or “democracy,” as it is known in the entertainment business.

Now, we’re in the middle of Act III already, and, as in every big-budget action movie, our protagonist suffered a series of mounting losses all throughout Act II, and the baddie was mostly driving the action. Now it’s time for the Final Push, but, before all the action gets underway, here’s a quick recap of those previous acts. Ready? All right, here we go …

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Full 40 minute movie. is Hunter’s basement the one below Joe’s?

Hunter Biden Is “Riding The Dragon” (ZH)

In the lead-up to the November election political investigator and author Peter Schweizer, who currently heads the Florida-based Government Accountability Institute, has unveiled a bombshell exposé presenting damning evidence of Hunter and his father Joe Biden’s shady and hidden financial dealings with China. Directed by Matthew Taylor, whose prior works include Clinton Cash and Creepy Line, the 41-minute film entitled “Riding the Dragon: The Bidens’ Chinese Secrets,” details a pile of corporate records, financial documents, legal briefings as well as court papers which tie Hunter’s firm with a major Chinese defense contractor, namely Aviation Industry Corp. of China (AVIC), and multiple other PLA linked companies.


“It’s a relationship that grew while Joe Biden was vice president of the United States and shortly after he was appointed the point person on U.S. policy towards China,” Schweizer, who narratives the film, described upon the documentary’s release earlier this month. “This new firm started making investment deals that would serve the strategic interests of the Chinese military.” “It’s the story of the second most powerful man in the world at the time and how his family was striking deals with America’s chief rival on the global stage, the People’s Republic of China,” he added.

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“Biden’s campaign is so beholden to AIPAC that they have adopted racist tropes to define Palestinians, the same tropes used to justify apartheid policies.”

Biden’s Foreign Policy Advisors Loyal to Israel, Defense Contractors (CP)

When Donald Trump was elected president, the foreign policy apparatus that Barack Obama’s administration built did not disappear. The power brokers went to think tanks and lobbying firms, cashing in on the uncertainty with help from defense contractors and other corporations. Democratic presidential nominee Joe Biden’s potential foreign policy would likely be a continuation of Obama’s aggressive approach with the use of extrajudicial killings and jailing of asylum seekers. Advisors have made clear that Biden would have no intention of making military aid to Israel conditional on Israel’s human rights abuses of Palestinians. Michèle Flournoy, a front-runner for Biden’s pick for Secretary of Defense, is already considered something of a glass ceiling breaker as the highest-ranking woman to have served as a Senate-confirmed Presidential appointee in the Pentagon.

In 2011 the Washington Post described her as “tall and slender with a regal manner” and “known for being extremely poised and rarely showing emotion.” In 2018, Flournoy co-founded WestExec advisors with Biden foreign policy advisor Antony Blinken, Former Deputy Secretary of State. Blinken, who is also a contributing opinion writer for The New York Times and global affairs analyst at CNN, is on leave from the firm to focus on the presidential campaign. The firm is a group of senior national security professionals who advise corporations, including former CIA deputy director David S. Cohen and Dan Shapiro, former U.S. Ambassador to Israel. WestExec does not disclose its clients, but according to the American Prospect, they work with Israeli artificial intelligence company Windward.

In July, as part of the Democratic National Committee, Shapiro called on members to oppose a measure to condition U.S. aid to Israel so “no US aid may be used to facilitate annexation or to violate Palestinians rights.” The measure was rejected by a wide margin. “While we understand that those concerns have not been addressed to the full satisfaction of all parties, we believe we have taken significant and overdue strides while sustaining the unity of our Party,” Shapiro said. Vice presidential candidate Kamala Harris has drawn criticism in the past for her relationship with the Israeli government. In May 2019, she met with representatives of American Israel Public Affairs Committee (AIPAC) from California in her Senate office after saying she would not attend the conference. Her campaign communications director said at the time that “her support for Israel is central to who she is.”

In 2017, Harris visited Israel, where she was photographed speaking with two members of the Israel Defense Forces in front of a Raytheon Iron Dome missile defense battery. She visited a cybersecurity development program run by the Israeli Defense Forces, the Israeli National Cyber Bureau in the Prime Minister’s Office, and Ben Gurion University of the Negev. Finally, she met with Netanyahu in Jerusalem the day after he had announced a plan to deport 40,000 African asylum seekers. She told AIPAC the same year: “[The] first resolution I co-sponsored as a United States senator was to combat anti-Israel bias at the United Nations and reaffirm that the United States seeks a just, secure, and sustainable two-state solution.” Abed Ayoub, the legal director of the American-Arab Anti-Discrimination Committee (ADC), told the Middle East Eye: “Biden’s campaign is so beholden to AIPAC that they have adopted racist tropes to define Palestinians, the same tropes used to justify apartheid policies.”

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Rewriting history is not as easy as it may seem.

Down the 1619 Project’s Memory Hole (Quillette)

The history of the American Revolution isn’t the only thing the New York Times is revising through its 1619 Project. The “paper of record” has also taken to quietly altering the published text of the project itself after one of its claims came under intense criticism. When the 1619 Project went to print in August 2019 as a special edition of the New York Times Magazine, the newspaper put up an interactive version on its website. The original opening text stated: The 1619 project is a major initiative from The New York Times observing the 400th anniversary of the beginning of American slavery. It aims to reframe the country’s history, understanding 1619 as our true founding, and placing the consequences of slavery and the contributions of black Americans at the very center of our national narrative.

The passage, and in particular its description of the year 1619 as “our true founding,” quickly became a flashpoint for controversy around the project. Critics on both the Left and Right took issue with the paper’s declared intention of displacing 1776 with the alternative date—a point that was also emphasized in the magazine feature’s graphics, showing the date of American independence crossed out and replaced by the date of the first slave ship’s arrival in Jamestown, Virginia. For several months after the 1619 Project first launched, its creator and organizer Nikole Hannah-Jones doubled down on the claim. “I argue that 1619 is our true founding,” she tweeted the week after the project launched. “Also, look at the banner pic in my profile”—a reference to the graphic of the date 1776 crossed out with a line. It’s a claim she repeated many times over.

But something changed as the historical controversies around the 1619 Project intensified in late 2019 and early 2020. A group of five distinguished historians took issue with Hannah-Jones’s lead essay, focusing on its historically unsupported claim that protecting slavery was a primary motive of the American revolutionaries when they broke away from Britain in 1776. Other details of the project soon came under scrutiny, revealing both errors of fact and dubious interpretations of evidence in other essays, such as Matthew Desmond’s 1619 Project piece attempting to connect American capitalism with slavery. Finally back in March, a historian who the Times recruited to fact-check Hannah-Jones’s essay revealed that she had warned the paper against publishing its claims about the motives of the American Revolution on account of their weak evidence. The 1619 Project’s editors ignored the advice.

Throughout the controversy, the line about the year 1619 being “our true founding” continued to haunt the Times. This criticism did not aim to denigrate the project’s titular date or the associated events in the history of slavery. Rather, the passage came to symbolize the Times’s blurring of historical analysis with editorial hyperbole. The announced intention of reframing the country’s origin date struck many readers across the political spectrum as an implicit repudiation of the American revolution and its underlying principles. Rather than address this controversy directly, the Times—it now appears—decided to send it down the memory hole—the euphemized term for selectively editing inconvenient passages out of old newspaper reports in George Orwell’s dystopian novel 1984.

Without announcement or correction, the newspaper quietly edited out the offending passage such that it now reads: The 1619 Project is an ongoing initiative from The New York Times Magazine that began in August 2019, the 400th anniversary of the beginning of American slavery. It aims to reframe the country’s history by placing the consequences of slavery and the contributions of black Americans at the very center of our national narrative.

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Rewriting history 2.0. Harry Potter meets George Orwell. It feels an eternity ago that I wrote “No More Washington or America”, about once you get started, there is no end.

JK Rowling’s Books Burned or Banned Around the World (Turley)

In Harry Potter, Albus Dumbledore told the students of Hogwarts School of Witchcraft and Wizardry that “It takes a great deal of bravery to stand up to our enemies, but just as much to stand up to our friends.” Many are learning the truth of that line written by famed author JK Rowling as self-described progressives burn her books or ban them from shelves because she personally holds an opposing view of gender. Much like the boycott movement of Chick-Fil-A over comments by its CEO, people are seeking to punish Rowling through attacks on her literature. We previously discussed the embracing of art destruction as analogous to book burning, but now actual book burning is being embraced as a weapon of the woke.

A TikTok series show people around the world burning copies of Rowlings’ books. In one video of a burning pile of books by TikTok user @elmcdo, a voice is heard saying “You have to stop using ‘death of the author’ as an excuse to have your cake and eat it too. While the reader’s perspective is an important part of interpretation and meaning, it is impossible to completely divorce a work from its creator. The positive impact that J.K. Rowling’s work had on millions of readers does not negate how her hateful lobbying has affected the trans community.” That sums up the logic of every book burner in history. You cannot read a book because of the views or religion or identity of the author. It is better to burn the book to protect society.

Then there is Rabble Books and Games in Maylands, Perth. The owner owner Nat Latter proudly declared on Facebook that he had removed all fo the Harry Potter books from bookshelves to guarantee “a safer space for our community.” So you can buy a Rowlings book by having it retrieved from behind the back room like pornography. It is a form of censoring by making it more difficult to buy some books rather than others because you disfavor authors with opposing views. Latter seems to relish the role of a book censoring book seller: “Whilst stocking a book isn’t an endorsement (good grief, that would be a minefield), and we will always take orders for books that aren’t in stock, there are more worthy books to put on the shelf, books that don’t harm communities and won’t make us sad to unpack them.”

Does Latter also hide works with opposing views on gender from the Bible to the Koran to classic novels? Indeed, why not pull all of the work of authors like Hemingway and others for their views of women or race relations or other issues? Book sellers used to be people who wants to be gateways to knowledge and a world of different ideas and values. Now readers are being protected from even seeing the name of an author who personally holds opposing or offensive views. [..] These actions only prove again what Albus Dumbledore said (and J.K. Rowling wrote): “Dark times lie ahead of us and there will be a time when we must choose between what is easy and what is right.”

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Not in the least surprising. The poorest half, 3.5 billion people, are good for just 7% of emissions.

World’s Richest 1% Cause Double CO2 Emissions Of Poorest 50% – Oxfam (G.)

The wealthiest 1% of the world’s population were responsible for the emission of more than twice as much carbon dioxide as the poorer half of the world from 1990 to 2015, according to new research. Carbon dioxide emissions rose by 60% over the 25-year period, but the increase in emissions from the richest 1% was three times greater than the increase in emissions from the poorest half. The report, compiled by Oxfam and the Stockholm Environment Institute, warned that rampant overconsumption and the rich world’s addiction to high-carbon transport are exhausting the world’s “carbon budget”.

Such a concentration of carbon emissions in the hands of the rich means that despite taking the world to the brink of climate catastrophe, through burning fossil fuels, we have still failed to improve the lives of billions, said Tim Gore, head of policy, advocacy and research at Oxfam International. “The global carbon budget has been squandered to expand the consumption of the already rich, rather than to improve humanity,” he told the Guardian. “A finite amount of carbon can be added to the atmosphere if we want to avoid the worst impacts of the climate crisis. We need to ensure that carbon is used for the best.”

The richest 10% of the global population, comprising about 630 million people, were responsible for about 52% of global emissions over the 25-year period, the study showed. Globally, the richest 10% are those with incomes above about $35,000 (£27,000) a year, and the richest 1% are people earning more than about $100,000.

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Yves posted my essay from yesterday at Naked Capitalism, with this interesting comment. I know some people here feel poorly treated at NC, but I never have, and Yves and I have had a solid relationship for 12 years or so.

Ilargi: Why Trump Will Win (Yves Smith)

Yves here. As Financial Times columnist Lucy Kellaway said: “The good thing about someone else’s prejudices is that they either confirm your own, or they make you cross – either of which is a blessing in these bland times.” Here Ilargi reveals a bias…but not, as some might suggest, of being pro-Trump, but of seeing this Presidential election as being personality-driven. I doubt that is correct, which is one of the many factors that makes this contest too difficult to call despite Trump lagging in polls. Historically, marketers did not like “psychographic” market segmentations because they would cross demographic and geographic lines, which made it difficult to target prospects cost-effectively.

With the Internet creating social media outlets that cater to people with particular views, like lovin’ gunz or believing in Russiagate, suddenly that sort of segmentation is not only viable but may actually be attractive. As readers know well, Sanders was running on policy, not personality. As one friend said, Sanders has all the charm of your cranky Jewish uncle telling you to take your feet off the coffee table. Under prodding, he did make some small efforts in his 2020 campaign to seem less scold-y by smiling more and telling a bit of his life story. And as readers also know, Sanders had strong support among young voters. The Democratic party leadership beat Sanders not by having better policies or a more appealing a candidate, but by using what amounts to machine politics: rallying different voter blocs that are loyal to the party either by design or default.

The extension of the machine policy mindset is the Democratic party strategm of invoking tribalism. This is particularly effective because their core, the professional-managerial class, is so convinced of its right to rule via merit that it is almost incapable of seeing itself as a class (see Thomas Frank’s Listen, Liberal for a brilliant description of its ethnography). But its shadow side, in Jungian terms, of the PMC is its stereotype of the white working class. In their minds, this uneducated, undisciplined lot is getting what it deserves, and having them have influence is an affront to the proper ordering of society. Hillary’s “deplorables” remark was no accident. Time recapped what she said:

“You know, to just be grossly generalistic, you could put half of Trump’s supporters into what I call the basket of deplorables. Right?” Clinton said. “The racist, sexist, homophobic, xenophobic, Islamaphobic—you name it. And unfortunately there are people like that. And he has lifted them up.” She said the other half of Trump’s supporters “feel that the government has let them down” and are “desperate for change.” “Those are people we have to understand and empathize with as well,” she said. What is the subtext of Hillary’s remark? That Trump’s voters are lower income and less educated. The less educated part is correct, the lower income is not.

[..] What about the general election? A few weeks ago, the American National Election Study — the longest-running election survey in the United States — released its 2016 survey data. And it showed that in November 2016, the Trump coalition looked a lot like it did during the primaries…many of the voters without college educations who supported Trump were relatively affluent. It isn’t hard to imagine that higher income/less educated voters would resent the preening of the credentialed elites and would find Trump’s total lack of respect for what they hold dear to be attractive. But the gods look to have handed Biden a gift with the timing of Ruth Bader Ginsburg’s death. It’s galvanizing Democratic Party donations and will probably persuade some voters who weren’t terribly keen about Biden to go to the effort of voting for him.

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 August 13, 2017  Posted by at 9:20 am Finance Tagged with: , , , , , , , , ,  3 Responses »


Vincent van Gogh Still life with bible 1885

 

China Takes On State-Owned Firms (Balding)
Trump Warns Xi: Trade War With China Begins Monday (ZH)
The Actual Terrorists (PCR)
How Money Launderers Used Commonwealth Bank of Australia (CNBC)
The Euro Area Is Due for a Reboot. Here’s What Is Being Proposed
Italy’s Midsummer Dream: Shaking Off Sick Man of Europe Label (BBG)
Greece Seen Needing Credit Line To Exit Program (K.)
Stop Targeting the Greeks, says Merkel in First Pre-Election Rally (GR)
Canada Orders Ships To Reduce Speed To Prevent Whale Deaths
Scientists Discover 91 Volcanoes Below Antarctic Ice Sheet (G.)

 

 

A very communist style economy still.

China Takes On State-Owned Firms (Balding)

A little-noticed statement last week could portend the next big battle in China’s effort to control its debt. On Aug. 2, the finance ministry issued directives that state-owned companies improve returns, control risks and make sure that “projects are financially viable before decisions are made.” That the government feels the need to spell out such obvious goals tells you the depth of the problem. China’s sprawling array of state-owned enterprises — with millions of employees across all sectors of the economy — may be the biggest obstacle to its broader effort at financial reform. Previous attempts to rein them in have largely failed. But if the government has any hope of real deleveraging, this time will have to be different. SOEs are huge, and so are their liabilities. They’re responsible for non-financial corporate debt equal to 90% of GDP.

Facing limited competitive pressure, they’ve driven the worst of China’s debt-led excess: Return on assets for these firms in 2016 was a paltry 2.9%, compared to 10.2% in the private sector. One reason is that China’s banking industry, which is itself almost exclusively state-owned, channels loans to SOEs in the expectation that they’ll have an implicit government guarantee. SOEs provide only 16% of China’s jobs and less than a third of its output, but they receive an astonishing 30% of all loans. With credit so easily available, they have little incentive to economize. They’re also burdened with conflicts of interest. Despite the new directive to focus on profitability, SOEs are still subject to orders from Party committees that sit above their corporate boards. Some firms have chafed at this arrangement, but in general political objectives – such as maximizing local employment – take priority over profits. Party leaders even refer to privatization as “wrongheaded thinking.”

China’s “Belt and Road” initiative offers a case in point. Even amid a broad crackdown on overseas investment, firms are being prodded to plow hundreds of billions of dollars into the initiative — mostly for unprofitable infrastructure projects — while simultaneously being told to prioritize return on investment. They can be forgiven for being a little confused. Given all these challenges, complying with the new directives will be difficult. Regulators have tried numerous reform strategies in the past. One has been to merge multiple inefficient SOEs, in the unlikely hope that combined they will create one efficient SOE. Another has been to draw distinctions between “commercial” and “public service” SOEs, hoping to give the former some private-sector-like flexibility. But as long as these companies can fall back on favorable bank loans, the impetus to improve efficiency will be limited.

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Xi understands. But the risk is he will use it as a rallying cry at the Communist Party Congress in the fall.

BTW, I don’t want to comment on Charlottesville. Other than: there’s so much underlying hatred in America, built up over so many years, and something other than blame seems necessary.

Trump Warns Xi: Trade War With China Begins Monday (ZH)

As if there weren’t enough geopolitical stress points in the world to fill a lifetime of “sleepy, vacationy” Augusts, late on Friday night President Trump spoke to Chinese President Xi Jinping and told him that he’s preparing to order an investigation into Chinese trade practices next week, according to NBC. Politico confirms that Trump is ready to launch a new trade crackdown on China next week, citing an administration official, a step that Trump delayed two weeks ago under the guidance of his new Chief of Staff Gen. Kelly, but now appears imminent. It is also an escalation which most analysts agree will launch a trade war between Washington and Beijing. As Politico details, Trump on Monday will call for an investigation into China over allegations that the nation violated U.S. intellectual property rights and forced technology transfers, the official said.

While it’s unclear how much detail Trump will get into in the announcement, administration officials expect U.S. Trade Representative Robert Lighthizer to open an investigation against China under Section 301 of the Trade Act of 1974. The ordering of the investigation will not immediately impose sanctions but could lead to steep tariffs on Chinese goods. Trump has expressed frustration in recent months over what he sees as China’s unfair trade policies. As we discussed two weeks ago, Trump had planned to launch the trade investigation more than a week ago, but he delayed the move in favor of securing China’s support for expanded U.N. sanctions against North Korea, the senior administration official said.

The pending announcement also comes amid heightened tension between the United States and China, even after the Trump administration scored a victory in persuading Beijing to sign onto new United Nations sanctions on North Korea. Still, Trump has delayed trade action before, amid pressure from business groups and major trading partners: Two Commerce Department reports examining whether to restrict steel and aluminum imports on national security grounds were expected by the end of June but have been bottled up in an internal review. Trading partners raised threats of retaliation and domestic steel users complained of being hurt by price increases and restricted supply.

The trade investigation will immediately strain relations between the U.S. and China as the two countries wrestle with the unpredictable situation over North Korea. Should Trump follow through, the move will lay the groundwork for Trump to impose tariffs against Chinese imports, which will mark a significant escalation in his efforts to reshape the trade relationship between the world’s two largest economies. In other words, even if there is now conventional war announced with either North Korea or Venezuela, Trump’s next step is to launch a trade war against China.

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Bit confusing at times with reagrds to who said what, but the gist is clear.

The Actual Terrorists (PCR)

This is an article written by an Austrian, Klaus Madersbacher, who, somehow, was able to see through the heavy blanket of Amerian propaganda that suffocates the ability to think and to pereive throughout the entirety of Europe. He correctly undersands the Western destruction of Libya as a war crime. Germans were executed by the Nuremberg Tribunal for less. Madersbacher is correct that Libya was a monstrous war crime committed by the Obama regime and Washington’s NATO puppets. However, Libya is a worse crime than the Nazis committed, as is Afghanistan, Iraq, Yeman, Somalia, and parts of Syria. The Germans never destroyed entire countries and murdered the leaderships. Life in Nazi-occupied France was not as pleasant as in unoccupied France, but it was far more pleasant than life today in Afghanistan, Iraq, Libya, Somalis, Yemem, and part of Syria after America “brought democracy” to the countries.

Under the Nuremberg standard, the country (or countries) that originates war is the country that is responsible for the war crimes. The irony is that World War 2 was the responsibility of the British and French who started the war by declaring war on Germany. So under the Nuremberg standard it is Britian and France who are responsible for the war crimes. Madersbacher believes, as I did prior to reading David Irving’s book, Nuremberg, that Robert Jackson, the chief prosecutor, succeeded in establishing the legal principle that it is a war crime to launch a war of aggression. In actual fact, the principle was not established. Irving points out that no other Tribunal was ever formed until the Clinton regime sent the Serbian president, Milosevic, to a tribunal that cleared Milosevic of the orchestrated charges.

Of course, as Madersbacher understands, for now Washington’s “might makes right” prevails, and no one is going to send the criminal regines of Clinton, George W. Bush, Obama, and Trump if he follows their path, to a War Crimes Tribunal. But if Washington one day is militarily defeated or suffers economic collapse that makes the US dependent on foreign support, Washington’s war criminals, who exceed in number Nazi war criminals, could be finally held accountable. As Madersbacher writes, we await a Stalingrad 2.0 that paves the way to a Nuremberg 2.0.

The actual terrorists – Klaus Madersbacher, www.antikrieg.com

”Sometimes I ask myself about the value of a ‘culture’ which isn´t able to provide people with sufficient mental capacity to enable them to recognize if they are lied to as impudently as it is presently done by the media. It doesn´t need to be said that these are targeting the interests of the overwhelming majority of mankind.” I wrote this in July 2011, when three big European nations of culture and civilization together with some smaller ones under the leadership of the cultural superpower bombed peaceful Libya into ruins and systematically devastated the whole country. This is exactly the kind of crime the Nazi leaders have been hanged for. The crime against peace, which apparently only very few seem to know that it does exist at all. The crime against peace – “To initiate a war of aggression, therefore, is not only an international crime, it is the supreme international crime differing only from other war crimes in that it contains within itself the accumulated evil of the whole.” – the International Court at Nuremberg declared.

Simply said that means, that the party which initiates a war is responsible for all crimes committed in the context of this war. In the next two paragraphs, Madersbacher is saying, I think, that countries called democracies are excluded as war criminals because a parliament or congress acting for the people fund the war. He disagrees, correctly in my opinion, from this excuse for criminality. It’s not like that, that killing or hurting people in war is no crime, that the destruction of houses etc. is no crime, when carried out by means of high tech war machinery by armies financed by a budget decided by a parliament. Even if such outstanding democratic institutions as the Congress of the United States of America, her Majesties´ Parliament or the German Bundestag authorize such activities, this wouldn´t change a fart of the fact that these are crimes.

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Slap on the wrist. Want to bet?

How Money Launderers Used Commonwealth Bank of Australia (CNBC)

In a run-down mall in one of Sydney’s biggest Chinese neighborhoods in 2015, 29-year-old Jizhang Lu showed up at the top-floor offices of a meat export company carrying a carrier bag stuffed with hundreds of thousands of dollars in cash. According to police documents filed in court and reviewed by Reuters, Lu said he made the trip to the shopfront of CC&B International eight times over three weeks. Each time a CC&B employee would hand him a receipt showing a different company had bought tens of thousands of kilograms of meat. The cash — as much as A$530,200 ($416,840) at a time — was then deposited at a Commonwealth Bank of Australia (CBA) branch, according to the police statement of facts agreed by Lu.

But the apparent purchases were fake, and last year Lu was jailed for two years after pleading guilty to helping launder A$3.2 million of what police allege were proceeds from an unidentified international drug syndicate. The court records reviewed by Reuters did not name Lu’s lawyer. Lu could not immediately be contacted directly because he was in custody. The police case against Lu is now one of several being cited by financial intelligence agency AUSTRAC in its statement of claim against CBA, the largest civil court action of its kind in Australian corporate history.

AUSTRAC has accused CBA of “serious and systemic” breaches of money-laundering and counter-terrorism financing rules, alleging the country’s second biggest mortgage lender failed to detect suspicious transactions nearly 54,000 times. It faces fines potentially amounting to billions of dollars. CBA has said it will fight the AUSTRAC lawsuit, saying it would never deliberately undertake action that enables any form of crime. CBA said a coding error with new automated teller machines was behind most of the breaches but that it recognized there were “other serious allegations” in AUSTRAC’s claim were unrelated to that software problem.

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Europe needs to step back from these ever more Europe plans.

The Euro Area Is Due for a Reboot. Here’s What Is Being Proposed

When France elected Emmanuel Macron in May, the prospects of mending the euro’s inherent flaws suddenly brightened. Adopted in 1999, the common European currency was intended as a political project to foster unity, but the crisis in Greece a decade later exposed the euro’s inability to enforce shared rules, principally on government debt and spending. The French president is pushing for greater fiscal integration among the 19 nations that now use the euro as a way to address at least some of those shortcomings. With Germany indicating an openness to Macron’s calls, the political stars may be aligning to overhaul the euro, and so reboot the European Union.

A common budget Macron has proposed the creation of a euro-area budget, aiming to help fund investments to boost growth, provide emergency financial assistance and streamline the bloc’s response to economic crises. While nations would still have discretion over their own budgets, this common pool of resources could be a boon during periods of financial turmoil and would reduce reliance on the European Central Bank to stimulate the euro-zone economy. Access to this budget would be contingent on states sticking to the bloc’s rules. German Chancellor Angela Merkel has said she’s open to the idea. “I’ve personally always said: it depends on how,” Merkel said during a July 13 press conference in Paris. “I have nothing against a euro-area budget. I have proposed in 2012 a smaller euro-area budget and failed miserably.” “I’m very glad that this idea is being introduced again,” she said.

A single finance minister Macron has also proposed creating the role of a finance chief for the euro area, an idea long supported by German Finance Minister Wolfgang Schaeuble. This person would be responsible for a budget and could operate under the supervision of the European Parliament. Schaeuble has said that such a change would require adjusting EU treaties, which isn’t realistic at the moment.

Debt sharing Perhaps the most controversial proposal is the issuance of debt that would be guaranteed by the euro states, an idea that has been rejected by Schaeuble as putting too much risk on taxpayers. In an effort to quell objections, the commission floated the creation of so-called European Safe Assets, a financial instrument that would bundle sovereign debt from across the currency bloc so it can be sold to investors as one product.

A European Monetary Fund One idea supported by large euro-area members including Germany is to turn the Luxembourg-based European Stability Mechanism – the euro-area bailout fund – into a European Monetary Fund by giving it greater power on fiscal monitoring and more say over future rescue programs. This would allow the fund to monitor the finances of countries that are in trouble and oversee future bailouts, a move that could take some powers away from the European Commission, which is in charge of fiscal surveillance. Giving the ESM a broader remit would also hand more powers to the fund’s board of governors — euro-area finance ministers themselves. Germany is in favor, pushing to strengthen the role of the fund, while the commission would most likely prefer to keep as many of its powers concentrated in Brussels.

Completing the banking union Many officials argue that the most crucial reforms are in the field of financial regulation. This primarily means concluding the so-called third leg of the banking union: a common deposit guarantee framework. Germany has so far resisted, concerned that its taxpayers might end up responsible for problems lurking on bank balance sheets in other countries. Instead, Berlin is seeking risk reduction among member states through limiting lenders’ exposure to government debt. But this idea has few supporters (beyond Germany, only Finland and the Netherlands have been in favor) and has been vehemently opposed by other countries such as Italy. States are also trying to complete the establishment of a common financial backstop to the single resolution fund, an entity designed to foot the bill for winding down failed banks. While the commission and countries including France and Italy have been pushing for the ESM to offer a credit line for that backstop, Germany has been strongly opposed.

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Something tells me it’s much worse than this.

Italy’s Midsummer Dream: Shaking Off Sick Man of Europe Label (BBG)

Italy is working hard to shake off the sick man tag. Through government tensions, bank rescues and a migrant crisis, business sentiment has improved and the economy managed to maintain consistent growth after multiple false dawns. A report on second-quarter economic expansion this week is expected to top off a streak of encouraging numbers ranging from the labor market to exports. Yet, the country still has challenges from a drought that hit farming and – longer term – a less favorable monetary policy and elections next year that may produce a hung parliament. GDP probably rose 0.4% in the three months through June, economists forecast, matching the pace of the previous quarter. That gain would boost expectations that full-year growth could top 1% for first time since 2010, helping the economy regain ground lost in the financial crisis of a decade ago.

Italy’s recovery from a record-long recession is still lagging behind growth in euro-area peers Germany, France and Spain, while the economy faces more uncertainty in the coming months. Elections are due in the first half of next year and about the same time the ECB is expected to start rolling back its stimulus, progressively reducing its purchase of Italy’s government bonds. Finance Minister Pier Carlo Padoan has downplayed the effect of less expansionary monetary conditions, telling SkyTg24 television on Aug. 3 that the economy is strong enough to withstand higher interest rates and bond yields. According to UniCredit economist Loredana Federico, a 0.4% quarterly growth pace would help Italy reduce its debt ratio, which at more than 130% of GDP is the second highest in the euro area. “It would certainly allow it to weather the possible difficulties of higher debt-financing costs” as quantitative easing ends, she said.

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Keep walking in chains.

Greece Seen Needing Credit Line To Exit Program (K.)

Not everyone in the government shares the optimism that Prime Minister Alexis Tsipras expressed recently that Greece will be able to achieve a “clean exit” from the bailout program in August 2018, in other words without the support of a credit line. Finance Ministry officials are preparing for the start of the third review, which involves pushing through a number of prior actions that have to be completed. They are also preparing new legislation and planning for the possibility of Greece needing a credit line after the bailout program ends. This would come with conditions, although they would be less strict than the terms Athens currently has to meet. In its strictest form, the European Stability Mechanism’s credit line, or ECCL, foresees a quarterly review. It is said that finance ministers are always more conservative than their prime ministers and it appears that Euclid Tsakalotos is no exception.

For Greece to make a clean exit from its program, it needs the full confidence of the markets so that it can borrow at a reasonable rate. Sources on the institutions’ side do not believe this will be possible. The credit line would provide some security, helping secure better borrowing terms from the market. Exactly what will happen, though, is still under discussion. The third review is expected to begin after the German elections, which are scheduled for September 24. According to sources, though, the Greek negotiating team will hold preliminary talks with the lenders toward the end of August or beginning of September either via teleconference or in Brussels. The aim of the meeting will be to set a timetable for the negotiations.

[..] The Finance Ministry does not foresee the IMF asking for additional measures in 2018, even though the IMF does not expect Greece to reach its 3.5% of GDP primary surplus target. Athens does not rule out the possibility that the IMF will ask for the reduction to the tax-free threshold to be brought forward by a year and implemented in 2019, along with the planned pension cuts.

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No one has more responsibility for what happened to Greece than Merkel, but: “We should not generalize and say that Greeks cannot work, or that the Germans have a fetish with austerity. Every person has its own dignity..”

Stop Targeting the Greeks, says Merkel in First Pre-Election Rally (GR)

Chancellor Angela Merkel kicked off her re-election campaign on Saturday with a plea to European solidarity and the values that govern the European Union. Speaking in Dortmund, she focused mainly on the economy, but she also highlighted the importance of the EU for Germany. “It should be clear that, despite the difficulties, it is in our own interest, in the interests of peace and prosperity that we remain engaged in Europe,” she said. In this context and referring to the values that govern the EU – “freedom, solidarity, justice, social market economy, protection of human dignity” – the Chancellor asked everyone to refrain from targeting other nations and stop categorizing them.

“We should not generalize and say that Greeks cannot work, or that the Germans have a fetish with austerity. Every person has its own dignity…In Germany, as in any other nation, there are both lazy and hardworking people,” she said. Merkel is far ahead of her rivals in opinion polls but, wary of complacency setting in among her supporters, she plans 50 rallies in towns and cities across Germany in the run-up to the September 24 election, when she will seek a fourth term in office.

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Horses and barns.

Canada Orders Ships To Reduce Speed To Prevent Whale Deaths

Certain ships are being ordered to reduce speed because of the deaths of at least 10 North Atlantic right whales in Canada’s Gulf of St Lawrence during the past two months, the government said on Friday. The deaths have made 2017 the deadliest year for the endangered marine mammal since scientists began tracking their numbers in the 1980s, researchers said. The ministries of transport and fisheries issued a temporary order for vessels 20 meters or longer to slow to a maximum of 10 knots in the western portion of the Gulf, which stretches from Quebec to north of Prince Edward Island. There have been an increase in right whales in the area over the last three to four years, said Tonya Wimmer, director of the Marine Animal Response Society.

Human activity has caused at least some of the deaths. Three whales died from blunt force trauma consistent with being struck by a large vessel and one was entangled in fishing nets. Wimmer said reducing ship speeds can improve the chance of survival for the whales. The whales can weigh up to 96,000 kilograms (105.8 tons). The order will be enforced by Transport Canada inspectors and the Canadian Coast Guard. It is effective immediately and will be lifted once the whales have migrated from the area, usually by the time of the northern winter. Ships violating the order could be fined up to C$25,000 ($19,706.76). There are only 300 to 500 North Atlantic right whales left, and despite conservation efforts since the 1930s, there is no evidence of population growth, according to the World Wide Fund for Nature (WWF).

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“..the densest region of volcanoes in the world..”

Scientists Discover 91 Volcanoes Below Antarctic Ice Sheet (G.)

Scientists have uncovered the largest volcanic region on Earth – two kilometres below the surface of the vast ice sheet that covers west Antarctica. The project, by Edinburgh University researchers, has revealed almost 100 volcanoes – with the highest as tall as the Eiger, which stands at almost 4,000 metres in Switzerland. Geologists say this huge region is likely to dwarf that of east Africa’s volcanic ridge, currently rated the densest concentration of volcanoes in the world. And the activity of this range could have worrying consequences, they have warned. “If one of these volcanoes were to erupt it could further destabilise west Antarctica’s ice sheets,” said glacier expert Robert Bingham, one of the paper’s authors. “Anything that causes the melting of ice – which an eruption certainly would – is likely to speed up the flow of ice into the sea. “The big question is: how active are these volcanoes? That is something we need to determine as quickly as possible.”

The Edinburgh volcano survey, reported in the Geological Society’s special publications series, involved studying the underside of the west Antarctica ice sheet for hidden peaks of basalt rock similar to those produced by the region’s other volcanoes. Their tips actually lie above the ice and have been spotted by polar explorers over the past century. But how many lie below the ice? This question was originally asked by the team’s youngest member, Max Van Wyk de Vries, an undergraduate at the university’s school of geosciences and a self-confessed volcano fanatic. He set up the project with the help of Bingham. Their study involved analysing measurements made by previous surveys, which involved the use of ice-penetrating radar, carried either by planes or land vehicles, to survey strips of the west Antarctic ice.

[..] These newly discovered volcanoes range in height from 100 to 3,850 metres. All are covered in ice, which sometimes lies in layers that are more than 4km thick in the region. These active peaks are concentrated in a region known as the west Antarctic rift system, which stretches 3,500km from Antarctica’s Ross ice shelf to the Antarctic peninsula. “We were amazed,” Bingham said. “We had not expected to find anything like that number. We have almost trebled the number of volcanoes known to exist in west Antarctica. We also suspect there are even more on the bed of the sea that lies under the Ross ice shelf, so that I think it is very likely this region will turn out to be the densest region of volcanoes in the world, greater even than east Africa, where mounts Nyiragongo, Kilimanjaro, Longonot and all the other active volcanoes are concentrated.”

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Feb 192015
 
 February 19, 2015  Posted by at 1:20 pm Finance Tagged with: , , , , , , , ,  2 Responses »


Russell Lee “Yreka, California, seat of a county rich in mineral deposits” 1942

The US Will Have To Bail Out Greece (MarketWatch)
Greece – It’s a Revolution, Stupid! (Mathew D. Rose)
Germany Rejects Greece’s Application To Extend Its Loan Agreement (CNBC)
Europe and Greece Are at War Over Nothing (Bloomberg ed.)
How I Became An Erratic Marxist (Yanis Varoufakis)
For Greece And Many Others, Economic Reform Kills Economic Health (Steve Keen)
February 24 To Be The First Crunch Day For Greek State Coffers (Kathimerini)
Greek Debt Payment Plan Offers Huge Haircut (Kathimerini)
Greek Philosophy: Conflict Of Ideas Driving The Crisis (CNBC)
Greece Runs Up The Austerity White Flag In Brussels (Guardian)
Besieged Ukraine Town Debaltseve Falls (Reuters)
‘Guantanamo of the East’: Ukraine Locks Up Refugees at EU’s Behest (Spiegel)
Ukraine Finance Minister’s American ‘Values’ (Robert Parry)
Are the World’s Biggest Banks Moving Money for Terrorists? (Bloomberg)

“The IMF looks to have abdicated all responsibility for fixing the mess.”

The US Will Have To Bail Out Greece (MarketWatch)

Fighting has flared up again in the Ukraine. The Egyptians are sending soldiers into Libya as another North African state collapses into chaos. The militants of Islamic State are spreading their influence across the region. You’d think Barack Obama might have bigger foreign policy issues to worry about than a small state of 10 million people on the eastern edges of the Mediterranean. But Greece may be about to turn from a European into an American problem. As the game of brinkmanship between the radical Syriza government elected last month and the European Union gets played out, it has become increasingly clear that both sides may have a strong interest in the talks failing. The IMF looks to have abdicated all responsibility for fixing the mess.

The worrying point is this: Both sides have an increasing interest in a catastrophic failure. But the U.S., with the U.K. perhaps in a subsidiary role, has an equally strong interest in a stable Greece. If a crunch comes, America will have no choice but to bail Greece out. How? It may well need to extend emergency loans, prop up its banks, and if necessary help it establish a new currency as well. On Monday, talks between Greece and the finance ministers of the eurozone ended chaotically. The Syriza government, led by the charismatic young Prime Minister Alexis Tsipras, is committed to ending the austerity regime imposed on Athens by the EU and the IMF and is refusing to borrow any more money under the terms of the bailout agreement.

The rest of the EU, led by Germany, is standing firm. It may be willing to make some minor concessions, such as rebranding the loans or extending their duration. But it does not look willing to compromise on the core issue — that Greece has to stick to the austerity plan, and keep tight controls on public spending. There may still be a deal to be struck. Greece after all only accounts for a small percentage of the total eurozone economy. Its debts amount to just 315 billion euros, hardly a massive sum in the context of an economic bloc with a total gross domestic product of €9.5 trillion. But the worrying point is this: Both sides have an increasing interest in a catastrophic failure.

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“The German government has never wanted democratic reform in Greece..”

Greece – It’s a Revolution, Stupid! (Mathew D. Rose)

I fear most people have become so fixated on the Greek debt and the fate of the Euro, that they have completely ignored the political dimensions of the current conflict in Europe, shich are no less dramatic. The ongoing dispute between the German and Greek governments is nothing less than a democratic revolution against German hegemony and the attempt of the Germans and their paladins in the EU to dictate Greek domestic policy. It is a struggle by the Greeks to re-establish national sovereignty. What is more, this is the first time in the history of the EU that a political party with true leftist credentials has led a member nation. For reactionary Germany, with its neoliberal agenda, that is intolerable. This conflict is profound, if not existential, and thus could well be intractable.

The Greek people have made a decision to liberate themselves from a repressive regime of austerity and its incumbent humanitarian disaster. The Germans on the other hand refer to the developments of the past five years in Greece as a success. Yes, it has been a success in the sense that the Germans and French were able to rescue their banks and leave the Greek people to foot the bill. It was even more successful in that Greece was stripped of its political and economic autonomy – with the assistance of the quislings Antonis Samaras and Evangelos Venizelos. The German government has never wanted democratic reform in Greece, leaving the perpetrators of the Greek financial crisis, the political and financial elites, unscathed.

Success has meant Greece being reduced to a vassal state, raising the market above all other values, where multinational corporations, including German companies, could take over profitable state assets cheaply and German tourists could enjoy cut-rate holidays or buy holiday homes at bargain prices. What occurred in Greece with the bailout is an occupation, not with troops and panzers, but by financial means. Following the recent elections in Greece, Germany and its EU compradors are making it clear who is in charge. The Germans are currently not offering any compromise, but iterate the same blunt demand: Greece has to accept what is being dictated; in other words, capitulate or be annihilated. This time it will not be the Wehrmacht und Luftwaffe that are to force the Greek nation into submission, but a weapon just as lethal: national bankruptcy.

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“The letter does not meet the criteria agreed by the Eurogroup on Monday..”

Germany Rejects Greece’s Application To Extend Its Loan Agreement (CNBC)

Germany has rejected Greece’s application to extend its loan agreement and renegotiate the terms of its bailout, raising the very real threat of Athens running out of money in the coming weeks. The Berlin government Thursday said Greece’s application for a six-month extension of its loan and a renegotiation of some its terms was “no substantial solution.” “In truth it goes in the direction of a bridge financing, without fulfilling the demands of the program. The letter does not meet the criteria agreed by the Eurogroup on Monday,” German finance ministry spokesman Martin Jaeger said in a statement.

Earlier Thursday Athens had formally placed a request to prolong its “master financial assistance facility agreement.” In the proposal the left-leaning Syriza Party had offered a series of concessions to the previous hardline stance that it would unilaterally scrap the austerity measures imposed as part of the country’s €240 billion bailout. However, the Greek proposal Thursday had pledged to work with the EU and the IMF in reworking the terms of the bailout and to not make any unilateral decisions when it came to the terms of the austerity package.

The Eurogroup of finance ministers from the 19 countries that use the single currency is due to meet on Friday to discuss the Greek plan. There has to be unanimous agreement among the group for any policy decision to go ahea.d The current program – which included the EU and IMF as creditors – was due to expire in little more than a week. Without further funds, Greece would soon run out of money rasing the prospect of a default on its bonds and a possible exit from the euro zone.

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“The EU is staking the future of its monetary union not on principles but on semantics.”

Europe and Greece Are at War Over Nothing (Bloomberg ed.)

Even by the demanding standards of European dysfunction, the continuing standoff between Greece and the other euro countries is impressive. On substance, the distance between the two sides has narrowed almost to nothing — yet the stalemate and the risk of a new financial crisis drag on as if it were vast. The EU is staking the future of its monetary union not on principles but on semantics. Initially, the new Greek government was at fault for making reckless election promises and presenting these to its European Union partners as non-negotiable. It has since climbed down a long way – in particular, dropping its demand for big debt write-downs. Now it wants a new bailout with softer terms and a temporary arrangement to bridge the financing gap between the present deal and the new one.

Reportedly, it’s even willing to call this bridge an “extension.” With Germany’s government leading the demand for strict propriety, Europe’s response has been to say that the current program must be successfully concluded, perhaps with some flexibility, before anything else can be discussed. So here’s the puzzle. What’s the difference between an extension that’s a bridge to a new program and an extension with flexibility pending agreement on a new program? To the sane observer, too little to care. Yet because of this difference, whatever it may be, the euro system threatens to break apart. Funny, isn’t it, that Europe’s voters express growing disenchantment with the whole project?

The situation is all the more absurd because the details of any transitional provisions don’t much matter anyway. What’s crucial are the terms of the new longer-term agreement — which the EU is refusing to discuss until Greece capitulates. The need for a new deal isn’t seriously disputed. The existing bailout imposed too tight a fiscal squeeze, which held back growth. The country’s debt burden therefore failed to shrink as intended in relation to gross domestic product. The error has been widely acknowledged, including by the International Monetary Fund (one of the plan’s architects) and by other EU governments.

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“Europe’s crisis is far less likely to give birth to a better alternative to capitalism than it is to unleash dangerously regressive forces..”Europe’s crisis is far less likely to give birth to a better alternative to capitalism than it is to unleash dangerously regressive forces

How I Became An Erratic Marxist (Yanis Varoufakis)

In 2008, capitalism had its second global spasm. The financial crisis set off a chain reaction that pushed Europe into a downward spiral that continues to this day. Europe’s present situation is not merely a threat for workers, for the dispossessed, for the bankers, for social classes or, indeed, nations. No, Europe’s current posture poses a threat to civilisation as we know it. If my prognosis is correct, and we are not facing just another cyclical slump soon to be overcome, the question that arises for radicals is this: should we welcome this crisis of European capitalism as an opportunity to replace it with a better system? Or should we be so worried about it as to embark upon a campaign for stabilising European capitalism?

To me, the answer is clear. Europe’s crisis is far less likely to give birth to a better alternative to capitalism than it is to unleash dangerously regressive forces that have the capacity to cause a humanitarian bloodbath, while extinguishing the hope for any progressive moves for generations to come.For this view I have been accused, by well-meaning radical voices, of being “defeatist” and of trying to save an indefensible European socioeconomic system. This criticism, I confess, hurts. And it hurts because it contains more than a kernel of truth. I share the view that this European Union is typified by a large democratic deficit that, in combination with the denial of the faulty architecture of its monetary union, has put Europe’s peoples on a path to permanent recession.

And I also bow to the criticism that I have campaigned on an agenda founded on the assumption that the left was, and remains, squarely defeated. I confess I would much rather be promoting a radical agenda, the raison d’être of which is to replace European capitalism with a different system. Yet my aim here is to offer a window into my view of a repugnant European capitalism whose implosion, despite its many ills, should be avoided at all costs. It is a confession intended to convince radicals that we have a contradictory mission: to arrest the freefall of European capitalism in order to buy the time we need to formulate its alternative.

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“I want you to bear this empirical reality in mind when you consider the pressure that is being applied to Greece to get it to “stick with the program..”

For Greece And Many Others, Economic Reform Kills Economic Health (Steve Keen)

A quick quiz: which four countries do you think have done the most to reform their economies over the last seven years? OK, who said Greece, Portugal, Ireland and Spain? No one? Actually, someone did: the OECD. Yes, I kid you not, according to the OECD, the country that has done the most to reform its economy over the last seven years—that is, from before the 2008 economic crisis until well after it—is Greece. Followed at some distance by Portugal, Ireland and Spain. I saw this in a tweet, and even though I am a total sceptic on the value of what conventional economists call “economic reform”, I still couldn’t believe this graphic: surely it was an Onion spoof? I simply had to go searching to see for myself.

And there it was, on page 111 of the OECD’s publication Going For Growth 2015, released on February 9 (in a slightly different form, and with New Zealand pipping in between Ireland and Spain—maybe this graphic was revised later). The top economic reformers were the basket cases of Europe and the world in general. Unemployment in Greece is 27%; in Portugal it’s 15%, Ireland 12%, and Spain 25%. Those are very, very sick economies. And yet they are also the OECD’s top reformers. You are, I hope, wondering “how come? Isn’t reform supposed to be good for you?” Well, that’s the fairy story—sorry, theory—purveyed and fervently believed in by mainstream economists: reform your economies according to our recommendations, and—whatever else happens—your economy will grow more rapidly and be more stable to boot.

Unfortunately for those purveying this fairytale, they also developed metrics by which the degree of reform could be measured, so that a decade later, we can compare the fairy story to the reality. And one quick look shows that we’ve been had. We were told to expect the beautiful Cinderella at the economic ball; instead we got one of her ugly step-sisters. I’ll cover at length someday soon why economic reform as recommended by mainstream economists will normally make your economy more dysfunctional and unstable. For now, I want you to bear this empirical reality in mind when you consider the pressure that is being applied to Greece to get it to “stick with the program” invented for it by the EU.

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“Finance Ministry officials assure they have identified resources they could tap if a small extension on Greece’s bailout obligations, up to the first week of March, is granted from the eurozone.”

February 24 To Be The First Crunch Day For Greek State Coffers (Kathimerini)

February 24 is expected to be the first crucial day for state finances, as projections of cash flows see state coffers starting to run dry on that date. Finance Ministry officials, however, assure they have identified resources they could tap if a small extension on Greece’s bailout obligations, up to the first week of March, is granted from the eurozone. The state of cash reserves – not robust before – has deteriorated further in recent days due to a shortfall in revenues, as a €1 billion hole in January revenues is putting the execution of the state budget in jeopardy and hampering the management of cash reserves. According to figures released yesterday by the Bank of Greece, in January the net cash result of the central administration posted a deficit of €217 million, against a surplus of €603 million in January 2014.

Budget revenues reached €3.1 billion, against 4.4 billion in January 2014, while expenditure dropped to €3.2 billion from €3.6 billion last year. Given these figures, the Finance Ministry estimates that cash reserves will run out next Tuesday. It has the option, however, of using the reserves of general government entities kept in commercial banks in order to cover short-term needs next week. However, the problem that cannot be addressed as things stand concerns needs for the first week of March. Unless something changes drastically to the country’s funding, Greece will not be able to fulfill all of its March obligations. Finance Minister Yanis Varoufakis had called on the ECB to increase the limit of treasury bills to €23 billion from the current 15 billion in a bid to address this shortfall.

The additional funds would have covered the state’s short-term obligations while also providing a cushion until the Greek government is able to strike a deal with its eurozone partners. The request, however, was rejected, as the ECB deemed it an act of direct monetary funding: In practical terms the European Central Bank would have been financing the obligations of a state, which contravenes its regulations.

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“Depending on the number of installments, there will be a reduction to penalties and fines ranging from 30% to 90%..”

Greek Debt Payment Plan Offers Huge Haircut (Kathimerini)

A new repayment plan for expired debts to the state and social security funds announced by the government on Wednesday provides for a reduction to the fines and penalties levied against debtors as well as for a writedown of the original debt, reaching as much as 50% rate in some cases. The new scheme, which has already generated concern among Greece’s international creditors but also among consistent taxpayers, foresees the repayment of debts in up to 100 monthly installments regardless of their size. The minimum installment will be set at €20, while for debts up to €5,000 there will be no interest attached. Depending on the number of installments, there will be a reduction to penalties and fines ranging from 30% to 90%, and in cases of repayment in a lump sum the penalties will be written off entirely.

Crucially, for debts generated up until December 31, 2013, a part of the original debt can be written off, by as much as 50% in certain cases. The plan further waives the limit of 1 million euros for debts that can be negotiated for settlement, making repayment easier for major state debtors. In presenting the new scheme yesterday, Alternate Finance Minister Nadia Valavani stressed that this will be the very last opportunity given to taxpayers to settle their debts to the state. She added that at a later stage there will be another, more favorable plan, concerning only those who find themselves in financial hardship. Ministry calculations show that out of the €76 billion of outstanding debts by taxpayers and corporations to the state, no more than €9 billion can actually be collected.

Social security funds are anticipating a total of €1.2 billion from debt repayments this year thanks to the new plan, from total arrears of €20 billion. The bill in Parliament, which Prime Minister Alexis Tsipras said on Tuesday would be put before Parliament on Thursday, has been postponed until next week. The official explanation cites a need for technical changes to be made to draft, though it has been suggested that the postponement of the process was decided in order to prevent a reaction from the country’s creditors in this week’s crucial negotiations.

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“Whether “doing what is right” in this case means “doing what Varoufakis wants” is, of course, open to debate.”

Greek Philosophy: Conflict Of Ideas Driving The Crisis (CNBC)

As European politicians ponder how to solve the current impasse over Greece’s debts to international creditors, some of the key players seem to be digging out their philosophy books.The country’s erudite Finance Minister, Yanis Varoufakis, cited German philosopher Immanuel Kant in a New York Times editorial published Tuesday – a nice reminder of Europe’s shared cultural history – as he pled with those reading to help the Greek people escape the bonds of austerity. Kant “taught us that the rational and the free escape the empire of expediency by doing what is right,” he argued.

Whether “doing what is right” in this case means “doing what Varoufakis wants” is, of course, open to debate. Wolfgang Schaueble, the German finance minister, seemed to be adopting a rather dogmatic philosophy, by contrast. When asked about the potential for changes to the existing programme by German state television channel ZDF Tuesday night, he said: “It’s not about extending a credit programme but about whether this bailout programme will be fulfilled, yes or no.”

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I don’t think so.

Greece Runs Up The Austerity White Flag In Brussels (Guardian)

The white flag has been raised over Athens. Greece has bowed to the intense pressure of its eurozone partners and will stick to austerity. After defiantly saying for the past three weeks that it will end the country’s fiscal waterboarding, the Syriza-led government is suing for peace. That, bluntly, is the only way to interpret news that Greece has formally asked for a six-month extension to its bailout agreement. There is no longer the pretence that the bailout is to be replaced by a loan agreement with no strings attached. The hated troika of the European Central Bank, the European Union and the International Monetary Fund will be monitoring Greece’s economy for the next six months, something that has been anathema to Syriza until now.

The Greek government has some demands of its own. It wants to negotiate a new growth deal for the four years until 2019. It is asking for debt relief under the terms of the bailout agreement signed in November 2012. And it wants to be able to take steps to deal with the humanitarian crisis caused by the 25% collapse in the size of the economy over the past five years. None of these demands are unreasonable. Indeed, they are all entirely sensible. As Dhaval Joshi of BCA Research has noted, for every euro the Greek government has saved through spending cuts or tax increases the economy has contracted by €1.2. Austerity has resulted in Greece’s debt to GDP ratio going up, not down. A change of tack is overdue. It is unlikely, though, that Syriza will get much of what it wants. The rest of Europe does not really want to negotiate with Alexis Tsipras and his finance minister, Yanis Varoufakis; it wants capitulation.

What’s more, it is in a position to get it. Tsipras has two big weaknesses. Firstly, Greece is suffering from capital flight and is dependent on emergency support from the ECB for its banks. This funding has just been increased by the ECB but not by as much as Greece would have liked. The life support could be cut off at any time. Secondly, and perhaps more significantly, Greece has failed to deploy its most potent weapon: a threat to leave the euro. For all the talk in Brussels and Berlin that the single currency could withstand a Greek departure from the single currency, the threat of withdrawal would have put the frighteners on. Would the euro group really want to risk chaos given the shaky state of the economy? Would Angela Merkel want to go down in history as the German chancellor responsible for rolling back more than half a century of European integration?

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Curiously left out of the ceasefire deal.

Besieged Ukraine Town Debaltseve Falls (Reuters)

Ukraine pulled thousands of troops out of an encircled town on Wednesday after a massive assault by pro-Russian rebels, who ignored a new ceasefire to seize the strategic railway junction. The fall of the besieged town of Debaltseve was one of the worst defeats of the war for Ukraine’s troops, who proved unable to stop an advance by Moscow-backed rebels fighting for territory the Kremlin calls “New Russia”. President Petro Poroshenko told security chiefs on Wednesday night that six Ukrainian soldiers had been killed during the pullout from Debaltseve. “According to preliminary data, six Ukrainian heroes were killed during the withdrawal, more than 100 were wounded,” he said, according to Interfax news agency.

Twenty-two Ukrainian soldiers had earlier been killed in the town in the past few days, the Ukrainian military high command said, with more than 150 wounded. Poroshenko, who flew to the frontline, nevertheless tried to cast the battle in a positive light, saying that by holding out as long as they had, Ukraine’s troops had exposed “the true face of the bandits and separatists who are supported by Russia”. The Ukrainian troops had held out for three days beyond the start of a Europe-brokered ceasefire, forcing the rebels to disavow the truce to pursue their advance on the town. Ukrainian troops, their faces blackened, some in columns, some in cars, arrived in Artemivsk, about 30 km (20 miles) north of Debaltseve in government-held territory.

Fighting did not halt with the retreat. A Reuters correspondent near Debaltseve saw black smoke rising over the town and heard loud blasts hours after the withdrawal began. “One hundred and sixty-seven wounded have been taken to Artemivsk. They did not pick up a lot of bodies. I don’t know the total figure,” Semen Semenchenko, who heads the Donbass paramilitary battalion, said on Facebook.

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Bet you never knew.

‘Guantanamo of the East’: Ukraine Locks Up Refugees at EU’s Behest (Spiegel)

Hasan Hirsi has been learning German for the last year and a half, and recently even enrolled in a class that meets for five hours a day, from 1 to 6 p.m. Nevertheless, he still has no words to describe what happened to him before his arrival in Germany. Hirsi, a 21-year-old refugee from Somalia, is huddled on a worn sofa in an apartment in Landau, a small town in southwestern Germany, which he shares with three other Somalian asylum-seekers. He is wearing a gray hoodie and has short, black hair. A retiree from Landau who has volunteered to assist the refugees is sitting next to him. He wants to help Hirsi adjust to his new life in Europe.

But Hirsi is finding it difficult to forget the past. Indeed, he still has nightmares about Ukraine, a place where he became stranded for a lengthy stay on his way to Europe. He now refers to the country as “hell.” Staring at the floor, Hirsi says: “It is difficult.” He repeats the same word, “difficult,” in different languages. After fleeing from Somalia in the summer of 2008, Hirsi tried several times to reach Europe through Ukraine. He was detained once each by Ukrainian and Hungarian border patrols, and twice by police in Slovakia. Ukrainian security forces robbed, beat and tortured him, he says. After being apprehended, he spent almost three years in four different Ukrainian prisons – for committing no crime other thanseeking shelter and protection in Europe.

Most migrants reach Europe through Italy or Greece and many of them die on the way. A broad coalition, ranging from Pope Francis to German President Joachim Gauck, is demanding better protection for refugees on Europe’s southern border and the United Nations refugee agency, UNHCR, describes the route across the Mediterranean as the world’s deadliest. But when it comes to the eastern route, and the fate of migrants like Hasan Hirsi, interest has thus far been limited. SPIEGEL and “Report Mainz,” a program on Germany’s ARD public television network, have now taken a closer look at the stories of refugees who were locked up in Ukrainian prisons for months during their journeys to Europe.

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Bad smell.

Ukraine Finance Minister’s American ‘Values’ (Robert Parry)

Ukraine’s new Finance Minister Natalie Jaresko, who has become the face of reform for the U.S.-backed regime in Kiev and will be a key figure handling billions of dollars in Western financial aid, was at the center of insider deals and other questionable activities when she ran a $150 million U.S.-taxpayer-financed investment fund. Prior to taking Ukrainian citizenship and becoming Finance Minister last December, Jaresko was a former U.S. diplomat who served as chief executive officer of the Western NIS Enterprise Fund (WNISEF), which was created by Congress in the 1990s and overseen by the U.S. Agency for International Development (U.S. AID) to help jumpstart an investment economy in Ukraine.

But Jaresko, who was limited to making $150,000 a year at WNISEF under the U.S. AID grant agreement, managed to earn more than that amount, reporting in 2004 that she was paid $383,259 along with $67,415 in expenses, according to WNISEF’s public filing with the Internal Revenue Service. Later, Jaresko’s compensation was removed from public disclosure altogether after she co-founded two entities in 2006: Horizon Capital Associates (HCA) to manage WNISEF’s investments (and collect around $1 million a year in fees) and Emerging Europe Growth Fund (EEGF) to collaborate with WNISEF on investment deals. Jaresko formed HCA and EEGF with two other WNISEF officers, Mark Iwashko and Lenna Koszarny. They also started a third firm, Horizon Capital Advisors, which “serves as a sub-advisor to the Investment Manager, HCA,” according to WNISEF’s IRS filing for 2006.

U.S. AID apparently found nothing suspicious about these tangled business relationships – and even allowed WNISEF to spend millions of dollars helping EEGF become a follow-on private investment firm – despite the potential conflicts of interest involving Jaresko, the other WNISEF officers and their affiliated companies. For instance, WNISEF’s 2012 annual report devoted two pages to “related party transactions,” including the management fees to Jaresko’s Horizon Capital ($1,037,603 in 2011 and $1,023,689 in 2012) and WNISEF’s co-investments in projects with the EEGF, where Jaresko was founding partner and chief executive officer. Jaresko’s Horizon Capital managed the investments of both WNISEF and EEGF.

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Interesting lawsuit.

Are the World’s Biggest Banks Moving Money for Terrorists? (Bloomberg)

Steven Vincent had just left a money exchange in the southern Iraqi city of Basra when a group of men in police uniforms drove up in a white truck and grabbed him and his translator. It was Aug. 2, 2005. Vincent, a freelance American journalist, had reported on the war for two-and-a-half years. British troops occupied Basra, but he operated without an embed arrangement. British and Iraqi authorities later found Vincent on the outskirts of the city shot dead. The Iraqi translator survived. Three days earlier the New York Times had published an op-ed article by Vincent, Switched Off in Basra, in which he described the infiltration of the local police by Iranian-backed Islamic extremists. Steven was executed for what he wrote, says his widow, Lisa Ramaci.

She’s set up a foundation in his name that donates money to the families of Iraqis injured or killed because of their work with U.S. journalists. And Ramaci did something else. In November she joined a lawsuit on behalf of relatives of U.S. soldiers and civilians who’ve died in Iraq as a result of violence linked to Iranian-backed militias and terrorist groups. The suit, filed in federal court in Brooklyn, seeks hundreds of millions of dollars not from death squads, whose members aren t likely to show up with lawyers in tow. Instead, it targets five of the largest banks in the world: HSBC, Credit Suisse, Barclays, Standard Chartered, and Royal Bank of Scotland. Defendants, the suit declares, committed acts of international terrorism. The suit, known as Freeman v. HSBC, takes its name from lead plaintiff Charlotte Freeman, whose husband, Brian, an Army captain, died in a Jan. 20, 2007, attack by Iranian-trained militants in Karbala, Iraq.

This far-fetched-seeming attempt to pin culpability for violent deaths on bankers relies on an intricate theory of causation: The European-based banks have handled hundreds of billions of dollars in international transfers for Iranian financial institutions. The Iranian financial institutions, in turn, have moved money for the Islamic Revolutionary Guard Corps (IRGC), an elite Iranian paramilitary organization, and for Hezbollah, the militant Shia movement based in Lebanon and backed by Iran. The Revolutionary Guard and Hezbollah have trained and armed Shia groups in Iraq that have kidnapped, shot, and blown up Americans, including Vincent and Freeman. Can the global banking industry be held liable for the detonation of improvised explosive devices and destruction of lives? It may sound wild-eyed or quixotic, but that s what we re trying to do, says Gary Osen, the New Jersey lawyer who recruited the 230 plaintiffs for Freeman v. HSBC.

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