Apr 262025
 


Odilon Redon Street in Samois 1888

 

President Trump Delivers Remarks on Ukraine/Russia Conflict (CTH)
Trump’s Peace Plan Triggers ‘Concern’ Among Allies – CNN (RT)
Crimea Will Stay With Russia – Trump (RT)
Zelensky Contradicts Trump On Deal With Russia (RT)
Zelensky Demands ‘At Least’ Israel-style Support From US (RT)
Ukraine ‘Pressuring’ Italy For Sideline Summit At Pope’s Funeral (RT)
Elon Musk Mocks Zelensky For Claiming Every US Taxpayer Dollar Is Accounted For (ZH)
Who Blinks First? China May Exempt Tariffs On US Ethane & Other Goods (ZH)
How Not to Fight a Trade War (Ben Shapiro)
China, Hong Kong and The Art of Blinking (Pepe Escobar)
Netherlands To Create Trial Detention Areas For Troublesome Asylum Seekers (RMX)
Trump Might Be About to Make Reagan’s Dream Come True (Green)
You Won’t Believe Who Trump Granted an Interview (Margolis)
We Need to Reclaim Our Country’s Soul From the Radical Left (Margolis)
Berlin Labor Minister Says Tesla Cars Are ‘Nazi Cars’ (RMX)
German Finance Minister Says Trust Not Yet Broken With US (CNBC)
Where Things Stand (James Howard Kunstler)
Cancelation of Romania’s Presidential Election Overturned (RT)
Exclusive: Inside Trump’s First 100 Days (Time)

 

 

 

 

https://twitter.com/sxdoc/status/1915472634252583045

Judges

Gingrich

 

 

Oz

Satan

Lavrov
https://twitter.com/DD_Geopolitics/status/1915571315966435445

Harvard
https://twitter.com/VigilantFox/status/1915579807011660139

BS

USAID and the CIA helped orchestrate Trump’s impeachment

 

 

 

 

‘sundance’ explains that the Ukraine constitution was changed right after Russia invaded, so Zelensky can now say all sorts of things are unconstitutional.

President Trump Delivers Remarks on Ukraine/Russia Conflict (CTH)

President Trump hosted Norwegian Prime Minister Jonas Gahr Støre in the Oval Office and took questions from reporters on Thursday. The majority of the question from both the U.S. and Norwegian media encompass the current effort to negotiate a ceasefire in Ukraine. One of the ceasefire ‘sticking points’ per se’, is that immediately following the breakout of the conflict the government of President Zelenskyy changed many of their constitutional rules to include the legal elimination of opposition parties in the country, removal of religion or faith-based social influence that runs counter to the Ukrainian Nazi mindset, the cessation of elections in Ukraine, and other “emergency measures” intended to assist the stability of Zelenskyy’s government as they entered a war footing.

The results of the legal changes and constitutional framework, which included non-recognition of any lost territory, is now being leveraged by Zelenskyy in negotiations for a ceasefire. President Zelenskyy is now saying the ceasefire terms proposed, which include accepting regional losses of geography to Russia, are not constitutionally possible and he has no power to agree to them. In essence, Zelenskyy’s emergency government changed the constitutional power of the President, cemented a new constitutional status during war, and now says those previous changes make it impossible to accept proposed terms. This self-fulfilling creation, intentionally done with forethought for exactly this kind of current scenario, is the baseline for frustration toward the Ukraine position. President Trump notes this Ukraine position is frustrating, while thousands die weekly in the process.


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“..if one country in Europe is forced to give up parts of its own legal territory… no country in Europe or elsewhere can feel safe, NATO or no NATO.”

Trump’s Peace Plan Triggers ‘Concern’ Among Allies – CNN (RT)

Officials in Western Europe and Asia have claimed US President Donald Trump’s reported framework to end the Ukraine conflict could set a precedent for territorial conquest, CNN reported on Thursday, citing anonymous sources. The framework, which has not been officially confirmed by the White House, reportedly includes US recognition of Crimea as Russian territory and acknowledgement of Moscow’s control over large parts of four former Ukrainian regions that have joined Russia. US Vice President J.D. Vance has also stated that the administration is considering the option to “freeze the territorial lines at some level close to where they are today.” CNN cited several unnamed diplomats who criticized the proposed settlement, claiming it would “reward” Russian President Vladimir Putin and send a “dangerous message” to other leaders, including China’s Xi Jinping.

“This is about the fundamental principles of international law,” one Eastern European diplomat told CNN, claiming that “if one country in Europe is forced to give up parts of its own legal territory… no country in Europe or elsewhere can feel safe, NATO or no NATO.” Moscow has repeatedly denied having any intention to strike NATO or EU countries, or claim their territories, accusing Western officials of “fearmongering” in order to justify further militarization. Nevertheless, many Eastern European governments, such as Poland and the Baltic states, have cited the supposed threat of a Russian attack as justification for increasing defense budgets and deploying additional forces. The CNN report comes as US special envoy Steve Witkoff is expected to meet with Russian officials in Moscow for another round of talks in the coming days. Trump has warned that Washington could abandon its diplomatic efforts altogether if no significant progress is made in the peace effort soon.

Trump has publicly expressed frustration with Ukraine’s Vladimir Zelensky, whom he has accused of obstructing peace efforts by refusing to even consider any territorial concessions. At the same time, the US president has suggested that he has found Russia easier to negotiate with than Ukraine. Moscow has welcomed the Trump administration’s attempts to settle the conflict. Russian Foreign Minister Sergey Lavrov stated this week that Moscow and Washington are “moving in the right direction” with regard to reaching a peace deal. Russian officials have repeatedly said that Moscow remains open to a negotiated solution, but have emphasized that any peace agreement must reflect the territorial realities on the ground and address the root causes of the conflict.

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Realism helps.

Crimea Will Stay With Russia – Trump (RT)

The Crimean Peninsula will remain a part of Russia under a final settlement of the Ukraine conflict, US President Donald Trump has said in an interview with Time Magazine published on Friday. Crimea officially joined the Russian Federation in 2014 after a referendum that followed a Western-backed coup in Kiev. Ukraine and its backers have dismissed the results of the referendum as illegitimate, and Kiev has continued to claim sovereignty over the peninsula, vowing to take it back by any means necessary. In an interview to mark his first 100 days in office, Trump said Crimea “went to the Russians” long ago and suggested that “everyone understands” that Ukraine will not be able to get it back. “Crimea will stay with Russia” under a final settlement of the Ukraine conflict, Trump went on to say, adding that even Ukraine’s Vladimir Zelensky understands this.

“It’s been with them for a long time,” the US president stated, noting that Russia had its submarines there “long before any period that we’re talking about” and that the majority of Crimeans speak Russian. Trump also stressed that the peninsula was “given” to Russia by former US President Barack Obama, claiming that the whole conflict is “Obama’s war,” which “should have never happened.” Since returning to office in January, Trump has been pressuring both Moscow and Kiev to settle the conflict. During last year’s election campaign, he said he would end the hostilities “within 24 hours” of entering the White House. He told Time, however, that he said this “figuratively” as an “exaggeration.” Recently, Trump has signaled that he has grown frustrated with the lack of progress on reaching a resolution of the Ukraine conflict. He has expressed dissatisfaction with Zelensky, saying he has found Russia much easier to negotiate with than the Ukrainian leader.

In a Truth Social post this week, the US president criticized Zelensky for refusing to even consider any territorial concessions. Russia has expressed its appreciation for Trump’s peace efforts and has repeatedly indicated that it is open to negotiations. However, Russian officials have stressed that a final peace deal must respect the territorial realities on the ground and address the root causes of the conflict, such as Ukraine’s NATO aspirations. In his interview with Time, Trump acknowledged that Ukraine would likely never be able to join NATO. He cited Kiev’s ambitions to enter the US-led bloc as the issue that “caused the war to start.” “If that weren’t brought up, there would have been a much better chance that [the conflict] wouldn’t have started,” he said.

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“the constitution of Ukraine says that all the temporarily occupied territories… belong to Ukraine.”

Zelensky Contradicts Trump On Deal With Russia (RT)

President Donald Trump has claimed that “most of the major points” in an agreement to end the Ukraine conflict have been resolved, even as Vladimir Zelensky once again publicly rejected a reported key clause in the proposed US peace framework. Russian President Vladimir Putin held lengthy talks with US special envoy Steve Witkoff on Friday, described by Kremlin aide Yury Ushakov as “constructive and very useful.” Trump also expressed satisfaction with the negotiations, praising a “good day in talks and meetings with Russia and Ukraine.” “They are very close to a deal, and the two sides should now meet, at very high levels, to ‘finish it off.’ Most of the major points are agreed to,” Trump wrote in a post on Truth Social late Friday, adding that “SUCCESS seems to be in the future!”

The agreement proposed by Washington reportedly includes US recognition of Russian sovereignty over Crimea, a “freezing” of the conflict along the current front line, and acknowledgment of Moscow’s control over large parts of the four former Ukrainian regions that voted to join Russia. “Crimea will stay with Russia” under a final settlement of the Ukraine conflict, Trump said in an interview with Time Magazine published on Friday. However, in direct contradiction to Trump, Zelensky reiterated on Friday that Kiev will not even discuss formally recognizing Crimea as Russian territory. “Our position is unchanged: only the Ukrainian people have the right to decide which territories are Ukrainian,” Zelensky told reporters in Kiev, arguing that “the constitution of Ukraine says that all the temporarily occupied territories… belong to Ukraine.”

Zelensky went on to claim that his “vision” of a resolution includes more “sanctions, economic and diplomatic pressure” on Moscow – even as Washington’s peace framework reportedly includes a phased removal of restrictions imposed on Russia. Trump has previously blamed Zelensky’s public statements for harming the negotiation process and warned that he risks losing the entire country if he continues to stall talks with Moscow. The US-proposed deal would also reportedly prevent Ukraine from joining NATO, an ambition enshrined in Ukraine’s constitution. Kiev’s intention to join the US-led bloc likely “caused the war to start,” Trump acknowledged in his interview with Time.

The Kremlin has consistently said it remains open to diplomacy and has expressed gratitude for Trump’s peace efforts. Ushakov confirmed that Friday’s talks touched on the possibility of resuming direct bilateral negotiations between Moscow and Kiev, but offered no details. No direct talks between the two sides have taken place since Ukraine pulled out of the Istanbul negotiations in 2022. According to Putin, Zelensky – who has banned himself from engaging in talks with Moscow – is actively sabotaging any peace process, as it would require lifting martial law, which currently allows him to remain in power. Moscow maintains that without martial law, Zelensky would be compelled under the Ukrainian constitution to either hold elections or transfer presidential authority to the current speaker of Ukraine’s parliament.

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“..Zelensky insisted that any future peace arrangement with Moscow must be backed by sustained US military, financial and political support.”

Zelensky Demands ‘At Least’ Israel-style Support From US (RT)

Kiev expects Washington to provide long-term security assistance modeled on the US relationship with Israel, Vladimir Zelensky has claimed, after Ukraine’s European backers reportedly rejected several significant points of President Donald Trump’s proposed peace plan. Washington presented its draft deal to end hostilities between Kiev and Moscow during talks in Paris last week. At a follow-up meeting in London on Wednesday – which was downgraded at the last minute after Zelensky publicly rejected key US suggestions – Ukrainian officials and their NATO European counterparts reportedly tabled a counterproposal. Speaking to journalists on Friday, Zelensky insisted that any future peace arrangement with Moscow must be backed by sustained US military, financial and political support.

“Discussions in London have focused on security guarantees from the United States. We hope them to be at least as robust as those provided to Israel. Additionally, we anticipate support from our European partners and are actively developing the infrastructure necessary for these guarantees,” Zelensky said. Deliberations about an “Israeli model” of support for Ukraine first emerged during the presidency of Joe Biden, when Western officials began to acknowledge that Kiev was unlikely to be granted NATO membership. In lieu of collective security guarantees, they sought ways to at least ensure a long-term, uninterrupted flow of Western arms. Zelensky’s comments come amid increasing friction with Washington, as Trump pushes Kiev to accept what media outlets have described as his “final offer” to end the conflict.

Reports indicate that Washington’s framework includes freezing the conflict along current front lines and recognizing Crimea as Russian territory – a condition Zelensky has firmly rejected. Trump stated that “Crimea will stay with Russia” in an interview with Time Magazine on Friday. He argued that Kiev would never have enough weapons or manpower to retake the peninsula, which “was handed over to Russia without a shot being fired.” Crimea officially joined the Russian Federation in 2014 after a referendum held following a Western-backed coup in Kiev. “Our position is unchanged,” Zelensky reiterated on Friday, despite acknowledging Kiev’s dependence on continued American support.

Trump and other senior US officials have warned that if progress is not made soon, Washington may reconsider its role as a mediator and shift its focus to other global priorities. According to reports, Ukrainian officials are already bracing for the possibility of reduced American support should negotiations collapse. Moscow has consistently expressed willingness to engage in negotiations, conveying its gratitude for Trump’s peace initiatives. However, the Russian leadership has repeatedly stressed that it seeks a lasting solution to the crisis, saying a temporary halt in the hostilities would simply allow Ukraine’s Western backers to rearm its military. Any peace deal must acknowledge the territorial reality and address the root causes of the conflict, including Ukraine’s NATO aspirations, Russia has insisted.

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“..due to the Vatican’s arrangements for the various delegations, Zelensky will be seated “very, very far away” from Trump during the funeral ceremony.”

And Meloni doesn’t need it either. The security operation in Rome today is on her. Her plate is full.

Ukraine ‘Pressuring’ Italy For Sideline Summit At Pope’s Funeral (RT)

Kiev is reportedly “pressuring” Rome to organize a mini-summit on the Ukraine conflict on the sidelines of Pope Francis’ funeral this week. Around 140 delegations are expected at the Vatican on Saturday morning to pay their final respects to the late pontiff, who passed away on Monday. Ukraine’s Vladimir Zelensky will be in attendance, as will US President Donald Trump. Diplomatic sources cited by La Repubblica on Friday said Trump may hold a few informal bilateral meetings in Rome, potentially including with Zelensky. Meanwhile, Kiev is advocating for a broader multilateral gathering involving European NATO members to be held in Italy, putting the Ukrainian delegation in front of the USA, Italy, France, Great Britain and probably also Germany.

However, Prime Minister Giorgia Meloni’s government is hesitant to facilitate such a gathering, fearing that the country’s reputation as a host could suffer from its likely failure, the outlet noted. Sources described the situation as “fluid.” This month, American officials outlined a potential framework for a truce that they believe Moscow could accept. However, Ukraine reportedly rejected key aspects of it, and in collaboration with European backers, proposed an alternative plan this week. Trump has accused Zelensky of undermining the peace process with public remarks that directly contradicted the ideas his administration reportedly included in its proposal.

A Trump-Zelensky meeting at the White House in late February ended in a diplomatic spat when the Ukrainian leader openly questioned Washington’s approach to mediating the conflict. Vice President J.D. Vance, who was present at the scene, admonished Zelensky for what he perceived as ingratitude and disrespect. La Repubblica noted that, due to the Vatican’s arrangements for the various delegations, Zelensky will be seated “very, very far away” from Trump during the funeral ceremony.

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Zelensky simply denies ever receiving half of the money. That should be about the amount that vanished?! “Hey, not our fault”

Elon Musk Mocks Zelensky For Claiming Every US Taxpayer Dollar Is Accounted For (ZH)

Ukrainian President Volodymyr Zelensky has hilariously declared that every single dollar of U.S. taxpayer money sent to Ukraine since Russia’s 2022 invasion has been meticulously tracked and accounted for, dismissing concerns about corruption or misuse. The claim, one of his most audacious yet, came during an interview with Daily Wire co-founder and conservative podcaster Ben Shapiro. Shapiro, known for his interventionist views regarding foreign affairs, pressed Zelensky on the issue of transparency, zeroing in on the nearly $200 billion in U.S. aid allocated to Ukraine’s defense. “There’s lot’s a questions about where the money is going pensions, to war profiteering, to corruption,” Shapiro noted, before asking: “What kind of transparency can you provide to the American people to guarantee that there taxpayer dollars are being used in the best possible way to fight Russia and defend Ukraine, and to ensure, if the United States wants, would an audit be possible by the United States for where those dollars are going?”

“As for the audit, the United States has the understand there’s United States inspectors working, there’s inspectors of European countries, because we’ve also allocated their money and grateful to them,” Zelensky replied. “That is why we told them at once we’re ready to have any inspections from the very beginning of the way, inspectors coming from the United States, Europe, and our own inspectors.” “We have complete reporting and accounting, absolutely transparent within the ministry of defense,” the Ukrainian president added. “There’s access to all the figures starting from the very first year of the war.” Zelensky then claimed that Russian “fake news” aimed at undermining U.S. aid to Ukraine was a primary reason for maintaining a comprehensive accounting of all American taxpayer funds provided to his government for the war.

“There’s nothing to hide, we’re absolutely open,” Zelensky told Shapiro. “There’s all the reports available.” Zelensky’s comments prompted Sen. Mike Lee (R-UT), an opponent of additional U.S. aid to Ukraine, to ask his nearly 600,000 followers on X if they believed the Ukrainian president’s claims. “Funniest thing I’ve read all day,” billionaire Elon Musk tweeted in response, with a pair of laughing emojis.

https://twitter.com/elonmusk/status/1915562708264771665?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1915562708264771665%7Ctwgr%5E65156ec4eccd8c9b49e6ec040010947d6d39dff2%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fwww.zerohedge.com%2Fpolitical%2Ffunniest-thing-ive-read-all-day-elon-musk-mocks-zelensky-claiming-every-us-taxpayer

Not only does Zelensky maintain that Ukraine’s handling is U.S. aid is corruption-free, but he’s suggested in an interview with podcaster Lex Fridman that corruption was an issue in the West. Kyiv Independent reports: “Ukraine has received less than half of the $177 billion in U.S. aid allocated to support Kyiv throughout the full-scale war, according to Zelensky. He suggested that this shortfall could be tied to issues of corruption or lobbying by U.S. companies. “If we had $177 billion and if we get the half, where is the second half? If you find the second half, you will find corruption,” he said. While Ukrainian President Volodymyr Zelenskyy firmly denies corruption allegations, Nigerian President Muhammadu Buhari claims the Russia-Ukraine conflict is fueling an influx of arms and fighters into the Lake Chad region, strengthening terrorist groups.

Of note, in 2015, The Guardian ranked Ukraine “the most corrupt nation in Europe.” VOA reported in November 2022: “Buhari called for more vigilance and cooperation among the commission’s six member nations against the increased proliferation of weapons into the Lake Chad basin. He said weapons meant for the Ukraine war and to combat terrorism in the Sahel are being diverted to West Africa and ending up in the hands of terrorist groups. Zelensky’s comments about U.S. aide comes as President Donald Trump is intensifying efforts to broker peace between Russia and Ukraine, with recent London talks pushing a ceasefire that would freeze frontlines and cede Crimea to Russia. Zelenskyy resists the plan, calling it unconstitutional, but Trump remains optimistic. On Thursday evening, Russian Foreign Minister Sergey Lavrov told CBS News that the Kremlin is “ready to reach a deal” with the U.S. regarding Ukraine, but cautioned that some of the terms need to be “fine tuned.” “The President of the United States believes, and I think rightly so, that we are moving in the right direction,” Lavrov told the news outlet.

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“U.S. Treasury Secretary Scott Bessent warned a US-China trade deal could take 2 to 3 years to finalize..”

Who Blinks First? China May Exempt Tariffs On US Ethane & Other Goods (ZH)

Those sources continued down Beijing’s laundry list of potential tariffs to be removed, including waiving the tariff for plane leases… Boeing has caught a sigh of relief. “It’s another step toward a de-escalation of the trade war,” said Kok Hoong Wong of Maybank Securities, adding that a trade deal might not be imminent, but certainly, “it would appear the worst may truly be over.” Bloomberg Economics analysts Chang Shu and Eric Zhu commented on the BBG headline: “Exempting critical, hard-to-replace U.S. products from tariffs would be a pragmatic approach that could ease tensions with the U.S. and serve the interests of Chinese industry. Anything that helps lower the temperature in the trade war is also beneficial from the perspective of avoiding broader clashes with the U.S.”

In a separate report, Reuters stated that instead of merely considering exemptions, Beijing has already “exempted” certain U.S. imports from the 125% tariff, citing businesses that were notified by authorities about the change. “As a quid-pro-quo move, it could provide a potential way to de-escalate tensions,” said Alfredo Montufar-Helu, a senior adviser to the Conference Board’s China Center. Montufar-Helu warned: “It’s clear that neither the U.S. nor China want to be the first in reaching out for a deal.”

Earlier in the week, U.S. Treasury Secretary Scott Bessent warned a US-China trade deal could take 2 to 3 years to finalize. Bessent emphasized at a closed-door investor meeting on Tuesday: “No one thinks the current status quo is sustainable, at 145% and 125%, so I would posit that over the very near future, there will be a de-escalation. We have an embargo now on both sides.” Both sides may want a deal to avoid further tariff fallout in their respective economies, but neither wants to appear desperate on the global stage. China is grappling with shuttered factories and possible ethane supply woes that threaten to roil its core manufacturing economy, while in the U.S., containerized volumes through the Port of Los Angeles are poised for a steep decline in the coming week.

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Shapiro knows better.

How Not to Fight a Trade War (Ben Shapiro)

This week, the stock market yo-yoed wildly, taking investors on a roller coaster of stunning lows and sudden highs. Rarely has investment been so gut-churning. And the reason for the turbulence is obvious: the Trump administration’s continuing mixed signals over its trade war. When that trade war was first announced on April 2 (“Liberation Day”) the Dow Jones Industrial Average immediately plummeted nearly 4%; the day after, 5.5%. After President Donald Trump put a hold on the vast majority of tariffs the following week, it recovered nearly 8%. The following day, as markets realized that Trump would retain massive tariffs on China and highly elevated tariffs on many of our allies, it dropped again 2.5%. The Dow Jones Industrial Average remained volatile but close to even for a few days. And then to open this week, it dropped almost 2.5% again, thanks to Trump’s apparent threats to fire Federal Reserve Chairman Jerome Powell.

And then, on Tuesday, it rose again, 2.7%—this time based on Treasury Secretary Scott Bessent’s leaked statements implying that the United States would come to a trade agreement with China (a sentiment seconded by Trump), as well as Trump’s statements that he would not be firing Powell. What is the purpose of recapping this potted history? To understand a simple lesson: Volatility in policy results in market volatility. Market volatility results in lack of investor confidence. And lack of investor confidence results in economic disaster. Typically, stock prices and bond yields work in inverse, since people flee to safety from stocks to bonds, driving down yields. Yet even as the Dow Jones is off approximately 13% from its high just after Trump’s inauguration, bond yields have been climbing as well—meaning that investors are showing lack of confidence in investing in American assets.

Now, taking on China is an admirable goal. And trade is certainly a chief weapon the United States could use in containing Chinese aggression across the world. But to wage a successful trade war on China would require certain preliminary steps: negotiation of strong and stable trade relationships with allies to box in China rather than a declaration of trade war on everyone; time to reshore critical national security industries and resources and to solidify non-Chinese supply chains; a military buildup capable of deterring Chinese action against Taiwan, which—based on the destruction or capture of semiconductor giant TSMC—could plunge the entire world into a depression and easily leave China itself at a technological advantage over the West.

The Trump administration did not do this preliminary groundwork. And so, the White House has been forced to punch holes in its own tariff regime, from exempting Apple products and semiconductors to unilaterally abandoning tariffs on erstwhile allies to deploying Bessent to pledge to lower tariffs on China itself. Impulsive decision-making can be an asset in foreign policy; it’s often smart to keep our enemies on their toes, unsure of what comes next. But in economic policy, impulsivity and unpredictability lead to chaos. And it’s far easier for the markets to lose trust in policymakers than to regain it. China must be contained, and Trump has been singularly transformative in forcing the world to face up to that fact. But if he wishes to truly defeat China in the economic sphere, it’s time for solid, understandable, and methodical policy that achieves the goals Trump has correctly set forth.

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Pepe’s still in China, in body and in mind. But even he does see a few problems.

China, Hong Kong and The Art of Blinking (Pepe Escobar)

So, predictably, Captain Chaos did blink first. As much as he – and his sprawling media circus – could not possibly admit it. It all started with “tariff exemptions” – from smartphones and computers to auto parts – on products imported from China. Then it veered towards carefully manicured leaks implying tariffs “could” be reduced to a range between 50% and 65%. And finally a terse admission that if there’s no deal, a “tariff number” will be unilaterally set. China’s Ministry of Commerce was unforgiving: “Trying to trade away others’ interests for temporary gains is like bargaining with a tiger for its skin – it will only backfire”. And it got fiercer. The Ministry was adamant that any Trump 2.0 claims of any progress on bilateral negotiations have “no factual basis” – de facto depicting the US President as a purveyor of fake news.

Tigers, tigers burning bright: the image does not recall poetry superstar William Blake, but Mao’s legendary depiction of the US Empire as a “paper tiger” – a flashback that struck me over and over again last week in Shanghai. If the US Empire was a paper tiger already in the 1960s, the Chinese argue, imagine now. And the pain will increase, not only for the paper tiger: any dodgy deals made by foreign – vassal – pussycat governments at the expense of Chinese interests simply will be not be tolerated by Beijing. Last week in Shanghai I was reminded over and over again – by academics and business people – that the weaponized Trump Tariff Tizzy (TTT) goes way beyond China: it is a desperate offense ordered by the US ruling classes against a peer competitor that scares the hell out of them.

The best Chinese analytical minds know exactly what’s going on in Washington. Take for instance this essay originally published by the influential Cultural Horizon magazine breaking down the “triangular power structure” of Trump 2.0. We have all-power Trump forming a “super-establishment”; Silicon Valley money politics, represented by Elon Musk; and the new right-wing elite represented by VP J.D. Vance. End result: a “governance system that is almost parallel to the federal government.” European chihuahuas – caught in the crossfire of Trump 2.0 – are simply incapable of such synthetic and precise conceptualization.

Paper tiger meets fiery dragon What a deep dive in Shanghai has revealed is that China has been handed over a rare earth-like opportunity by Trump 2.0 to consolidate its strategic initiative solidifying the role of leader of the Global South/Global Majority, at the same time carefully managing the risk of a New Cold War. Call it a Sun Tzu move that may paralyze the Empire in its tracks. Professor Zhang Weiwei, with whom I had the pleasure to share a seminar in Shanghai on the Russia-China strategic partnership, would agree. China is on the move across the spectrum. Chinese Premier Li Qiang sent a letter to Japanese Prime Minister Shigeru Ishibe urging a joint drive, right now, to counteract the tariff dementia.

President Xi’s top message in his Southeast Asia tour last week was to stand up against “unilateral bullying”. Xi deftly moved between Malaysia – current rotating chair of ASEAN, always avoiding taking sides – and Vietnam – with its “bamboo diplomacy” always hedging between US and China. Xi told Malaysia’s Prime Minister Anwar Ibrahim, directly: “We must safeguard the bright prospects of our Asian family”. Translation: let’s create an exclusive sphere of influence close to the ‘community of shared destiny’ but that does not include outside powers such as the US. In parallel, there has been a strong debate – from Shanghai to Hong Kong – that transcends the role of China as the world’s factory: what matters now is how to redirect some of China’s astonishing manufacturing capacity towards the domestic market.

Of course there are problems – such as the lack of purchasing power among scores of Chinese domestic consumers, even as the bulk of national China income is directed to fixed-asset investments. A great deal of China’s rural elderly population survives on a monthly pension of roughly $30 a month, and the hourly rate for the gig economy has stagnated at around $4. Meanwhile, in several high-tech fronts, China just built the fastest high-speed train on the planet: 400km/h, soon to run between Beijing and Shanghai. China is already receiving orders for the C919 commercial wide-bodied airliner. And China has come up with the world’s first thorium-powered nuclear reactor. Translation: unlimited cheap and clean energy is at hand.

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Wonder where they would send them.

Netherlands To Create Trial Detention Areas For Troublesome Asylum Seekers (RMX)

Dutch Asylum Minister Marjolein Faber, of the Party for Freedom (PVV), is initiating trial detention areas for disruptive asylum seekers in the Ter Apel registration center, as well as restrictions on where they can go, De Telegraaf reports. A trial “process availability location” (PBL) will be created in Ter Apel to detain “disadvantaged” asylum seekers who misbehave on public transport or shoplift. They must report there twice a day, may only stay in and around the asylum seekers’ center, and will be banned from entering residential and village areas. Faber adds that anyone who does not comply with the rules can be locked up.

“The behavior of a group of disruptive and criminal asylum seekers who abuse the hospitality offered in the Netherlands and cause nuisance and damage is, in whatever form, absolutely unacceptable,” said Faber. The PVV minister is taking action after the majority in the Dutch House of Representatives agreed that repeatedly disruptive asylum seekers need to be dealt with more quickly and severely. Her suggestion for the PBLs comes after her predecessor, Eric van der Burg (VVD), tried to do the same but had to stop it after a court ruling

Faber claims this will help get those migrants with behavioral problems — and little chance of being granted asylum — out of the Netherlands faster. The PBLs will help keep an eye on them and record their behavior as (and if) it deteriorates, she says. The new PBL in Ter Apel is specifically designed for lighter forms of nuisance and recidivism, such as shoplifting. Although not strict enough in cases demanding even tighter security, they are sufficient to justify restricting freedom. “It is unacceptable that asylum seekers who come to our country for safety, intimidate residents, and cause insecurity. These troublemakers deserve the toughest possible approach. I will not tolerate any nuisance. Not now. Not ever,” she posted on X.

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“Golden Dome.”

Trump Might Be About to Make Reagan’s Dream Come True (Green)

Acting on President Donald Trump’s promise of a “Golden Dome” against nuclear attack, the Republican Congress just placed a yuge down payment on fulfilling President Ronald Reagan’s dream of strategic missile defense. Congressional Republicans on Thursday announced a supplementary defense spending package, including $27 billion for Trump’s Golden Dome. In addition to funds for 14 new anti-missile warships, the bill includes money for the Army’s Terminal High Altitude Area Defense (THAAD) anti-missile systems, and “Elon Musk’s SpaceX and partners are expected to play a key role in missile tracking infrastructure.” When Reagan announced his Strategic Defense Initiative (SDI) in 1983, it started with some pretty crazy-sounding proposals that were nearly impossible then and aren’t much more likely now. Things like a network of orbital laser platforms and particle beam weapons, plus “smart rocks” and even “brilliant pebbles.”

That last one caught my imagination as a teen and never let go. But here’s the thing: If you throw enough time, money, and engineering talent at a problem, Americans will eventually find solutions. SDI — now known as Ballistic Missile Defense (BMD) — has come a long way since 1983. In addition to the Navy’s AEGIS systems that can shoot down anything from airplanes to satellites, we have a couple of Army land-based systems, and more on the way. Plus, some entertainingly fancy radars and satellites to detect threats and tie together the different defensive layers. One thing that hasn’t changed since 1983 is just how expensive it is. While we do have effective BMD systems, we have too few. We can (probably) defend against a small-scale nuclear attack from a rogue nation like North Korea, but that’s about it. Reagan’s dream of protecting our cities from nuclear destruction remains a dream — for now.


Reagan White House Photographs, 1/20/1981

“At least 70 or 80% of the resources applied should be going toward a system that will not evidence itself during the Trump administration,” Mark Montgomery, senior director of FDD’s Center on Cyber and Technology Innovation, cautioned. So, before you get too excited, experts say that deploying a nationwide BMD network will be an “intergenerational” project. Congress’s new budget priorities, however, are a big step in the right direction. It isn’t often appreciated, but for years, we’ve had mobile missile defense platforms that are quite good — the Navy’s guided-missile ships. The Navy took a keen interest in negating airborne threats on Dec. 7, 1941, and that interest grew only more keen after the Japanese developed kamikaze tactics. An anti-ship missile is basically an unmanned kamikaze.

So a lot of what a modern warship does is already missile defense, and a nuclear warhead is basically a very fast, very small missile. It’s more difficult to hit, sure, but the concept — one the Navy has worked on longer than I’ve been alive — is no different. The Navy’s SM-3 Standard Missile (they have got to come up with cooler names) has been in service since 2014 and can shoot down incoming nuclear warheads or even enemy satellites. Depending on the model and its capability, a single SM-3 costs between $10 million and $28 million, so we’ve only produced about 400 for us and our allies. But if you think an SM-3 is expensive, try losing a city. Reagan’s critics never seemed to understand any of this, or pretended not to for political advantage. I don’t have to imagine leaving this country open to a nuclear attack just to win a few votes because I witnessed it.

Let me finish with an anecdote that highlights how good even our limited number of BMD systems are. After retiring from the Air Force, my father-in-law spent almost 20 years working for a small BMD contractor. He had a list of clearances as long as your arm, so one of his jobs was coordinating between the disparate elements required to make BMD work, usually out of Pearl-Hickam in Hawaii. There wasn’t a room he wasn’t cleared to enter. A decade or so ago, I sketched out a scenario for him where China used long-range, hypersonic missiles across the Pacific in a theater-wide sneak attack against our naval and air bases. “I’d like to see them try,” he said with his undiminished fighter-pilot confidence. It’s nice knowing that our men and women in uniform at vital installations around the world enjoy some BMD protection. It will be nicer still when every city in America does. That won’t come soon, and it certainly won’t come cheap, but Reagan would have loved it.

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” This isn’t just an interview—it’s a reckoning.”

You Won’t Believe Who Trump Granted an Interview (Margolis)

President Trump made a huge announcement Thursday, and I’m still trying to wrap my head around it. “Later today I will be meeting with, of all people, Jeffrey Goldberg, the Editor of The Atlantic, and the person responsible for many fictional stories about me, including the made-up HOAX on “Suckers and Losers” and, SignalGate, something he was somewhat more ‘successful’ with,” Trump announced in a post on Truth Social. Jeffrey Goldberg, the notorious editor of The Atlantic who’s made a career out of publishing anonymous hit pieces against Donald Trump, is finally going to have to look President Trump in the eye. And boy, is this going to be interesting.

Trump, displaying his characteristic boldness, announced he’ll be sitting down with Goldberg and his cadre of liberal scribes, including Michael Scherer and Ashley Parker— neither of whom could be mistaken for MAGA supporters. It’s like walking into the lion’s den, except these lions have a history of making up stories out of thin air. According to Trump, the story being written will be titled “The Most Consequential President of this Century.” Let’s not forget Jeffrey Goldberg’s hall-of-shame reporting, starting with the infamously debunked cemetery smear against President Trump—a story denied by 25 witnesses, including Trump critic John Bolton. The most recent, of course, is the “Signalgate” kerfuffle, which was another flimsy hit piece the media eagerly seized on in a failed attempt to oust Defense Secretary Pete Hegseth.

Goldberg’s reporting style is all too familiar by now: a revolving door of anonymous sources and conveniently unverifiable claims that crumble under scrutiny, but are repeated ad nauseam by the liberal media as fact. But here’s what makes this deliciously ironic: Trump is doing this interview from a position of absolute strength. He’s already secured his place in history with a second term, while Goldberg and his mainstream media cohorts are no doubt still nursing their wounds from years of failed attempts to take him down. What’s Goldberg going to do when he can’t hide behind anonymous sources? When he has to actually face the man he’s spent years attacking through the safety of his keyboard? This isn’t just an interview—it’s a reckoning.

The liberal media elite have spent years constructing their anti-Trump narrative from the comfort of their coastal bubbles. Now, one of their chief architects will have to defend his “journalism” face-to-face with his favorite target. For conservatives who’ve watched the mainstream media’s relentless assault on truth, this meeting represents something larger than just another interview. It’s a moment of accountability, where one of the most egregious practitioners of fake news has to confront reality in real-time.

As Trump himself put it, he’s doing this “out of curiosity, and as a competition with myself.” The real question isn’t whether The Atlantic can write a fair story—we all know the answer to that. The real show will be watching Goldberg squirm when he has to defend his “reporting” to the very person he’s spent years maligning with fake stories. Get your popcorn ready, patriots. This is going to be wild.

Read more …

“..America witnessed a 600% increase in sex trafficking, while over 10.5 million people entered illegally. A quarter-million Americans have died from fentanyl flooding across our open borders. The brutal Tren de Aragua gang now plots assassinations on U.S. soil.”

We Need to Reclaim Our Country’s Soul From the Radical Left (Margolis)

In a stunning display of misplaced priorities, Democratic lawmakers recently traveled to El Salvador—not to address the border crisis devastating American communities, but to advocate for MS-13 gang member Kilmar Abrego Garcia. This disturbing development perfectly encapsulates how far the Democratic Party has strayed from protecting American interests. The same Democrats who rushed to El Salvador to defend a gang member remained conspicuously silent when Laken Riley, a 22-year-old nursing student, was brutally murdered by an illegal alien on her college campus. They offered no words of comfort when 18-year-old Jocelyn Nungaray was found dead in a San Diego canyon, raped and murdered by two illegal immigrants. And where were their impassioned speeches about “due process” when Rachel Morin, a mother of five, was murdered on a hiking trail by an illegal alien with a violent criminal history?

Border Czar Tom Homan and former Trump advisor Stephen Miller have both exposed the dangerous hypocrisy of these actions. While Sen. Chris Van Hollen (D-Md.) claims he’s merely defending “due process,” the facts tell a different story. Garcia’s own wife has accused him of domestic abuse, and he’s been accused of MS-13 gang affiliation. And then there are his connections to human trafficking. “The Democrat Party has become the party of terrorists and illegal aliens,” Miller declared during a recent Fox News appearance. “Who does it fight for? Who does it move heaven and earth to protect? Illegal alien gang members and foreign terrorists.” The statistics are damning: Under the Biden administration, America witnessed a 600% increase in sex trafficking, while over 10.5 million people entered illegally. A quarter-million Americans have died from fentanyl flooding across our open borders. The brutal Tren de Aragua gang now plots assassinations on U.S. soil.

“Where were you when thousands of American parents buried their children?” Homan demanded of the Democrats during a recent appearance on Sean Hannity’s show. “They got separated from their children forever ’cause they were killed by illegal aliens. That’s preventable crime.” The graves of Laken Riley, Jocelyn Nungaray, and Rachel Morin stand as stark testimonies to this preventable tragedy.Even more shocking, Van Hollen spent taxpayer money to meet with Garcia while ignoring murders committed by illegal aliens in his own state—released despite ICE detainers. During Biden’s presidency, Van Hollen never once visited the border to witness the catastrophe firsthand or spoke with the family of Rachel Morin, one of his actual constituents.

The American people face a critical choice. We can either stand with those working to secure our borders and protect our communities or watch as radical Democrats continue dismantling our national security to protect criminals and terrorists. We need your help to expose the radical left for their indifference to the safety and security of this country and its citizens.

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Some people…

Berlin Labor Minister Says Tesla Cars Are ‘Nazi Cars’ (RMX)

Berlin Senator Cansel Kiziltepe, of the Social Democratic Party (SPD), decided to attack Elon Musk on X, comparing his Tesla cars to “Nazi cars,” creating a massive backlash in the neighboring state of Brandenburg, home to Europe’s only Tesla car factory. The post is particularly odd, given her role as state minister for labor. “Who wants to drive a Nazi car? Manufacturers of electric cars are experiencing a sales boom – apart from Tesla,” according to Welt. Brandenburg’s Minister of Economic Affairs Daniel Keller (also SPD) called on her to retract the statement.

“Such a Nazi comparison hurts the people who work there and is completely inappropriate for a labor senator,” Keller told the dpa news agency. “I expect the labor senator to retract her historically unacceptable comparison and return objectively to the major economic and labor market policy challenges that Berlin and Brandenburg should tackle together.” Keller continued, saying, “Everyone can have their own personal opinion about Elon Musk. But it’s important to me that we don’t forget the people behind the Tesla factory in Grünheide. 11,000 people from 150 nations work here – more than half of the employees live in Berlin.”

Senator Kiziltepe still has a more diplomatic statement posted regarding the electric car company: “Tesla is currently experiencing a sales slump because customers attribute the right-wing extremist positions of its shareholder Elon Musk, who holds around 13% of the company,” she wrote. “I explicitly stand by my assessment of Elon Musk. Of course, this does not mean that I hold Musk’s employees or customers responsible for his political positions,” she added. But not everyone felt this was enough, especially given her comment was seen by most as potentially endangering jobs. “Denigrating the Tesla as a Nazi car shows what you’re really like. Full of hate and division. Simply disgraceful. Better to eliminate all jobs in Germany. You’d like that, wouldn’t you? After all, we’re paying you,” reads one reply.

“Are you still a senator, or have you already resigned to avert further damage to your office and democracy after your unspeakable trivialization of the Nazis? If not, you should do so immediately” another commenter posted.“Yeah, everyone knows by now that you hate Elon Musk. What are the reasons for your hatred? As a civil servant, don’t you have better things to do than vent your hatred online? another X user asked. Tesla has become the largest employer in Brandenburg in Grünheide, with some 11,500 people working there. The jobs at its Gigafactory, which opened just three years ago, are permanent with good salaries. The automaker’s net profits took a hit last quarter; the drop in sales is attributed to both a model change as well as controversies surrounding Musk’s politics.

“Brandenburg and Berlin benefit from this in terms of employment and value creation,” AfD deputy leader Stephan Brandner told the “Rheinische Post” newspaper. The Berlin-Brandenburg Business Association (UVB) also called out the comparison for insulting Tesla employees and scaring away new investment, not to mention hurting Kiziltepe’s own re-election. Managing Director Alexander Schirp stated that such defamation was unworthy of a member of the Berlin Senate. “This doesn’t increase the manufacturer’s chances of investing in the capital. Statements of this magnitude do not bode well for the election campaign,” the UVB MD said.

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“..the transatlantic partnership has been built over so many decades that we will not get carried away by the statement of tariffs..”

German Finance Minister Says Trust Not Yet Broken With US (CNBC)

The trust between Europe and the U.S. is not yet broken despite President Donald Trump’s aggressive tariff policies, Joerg Kukies, acting German finance minister, told CNBC Thursday. “For trust to be broken, a lot more would have to happen because the transatlantic partnership has been built over so many decades that we will not get carried away by the statement of tariffs,” he told CNBC’s Carolin Roth on the sidelines of the IMF World Bank Spring Meetings. Kukies added that during a previous visit to Washington, soon after the 25% tariffs on all cars imported to the U.S. was announced, there did appear to be interest in coming to an agreement. Europe and the U.S. have different interests and both parties need to understand one another’s viewpoints, he said. “But this is not the first time ever that the United States and Europe are negotiating over tariffs, so I don’t think we’re anywhere near a crisis moment.”

Kukies struck a positive tone when referring to talks, saying “everything is going in negotiation mode” with the bloc “optimistic” that it can resolve the differences. A zero-for-zero tariff agreement would be his preferred outcome, Kukies stated. This aligns with what European Commission President Ursula von der Leyen has advocated for. However, Trump has already rejected a proposal from the European Union for a deal which would see zero percent duties on industrial goods imported from the U.S. as well as on imports from the EU. Germany is currently subject to 10% tariffs — the temporarily reduced rate announced by Trump after the initially imposed 20% duties. The country’s struggling economy is heavily reliant on trade, as the U.S. serves as its most important trading partner. Tariff turmoil led by Trump is therefore expected to hit Germany especially hard.

Earlier on Thursday, the German government revised its forecast for the country’s economic growth lower, saying it was now expecting stagnation in 2025. This compares to January’s estimate of 0.3% growth. Acting economy minister Robert Habeck in a press conference cited U.S. President Donald Trump’s trade policies and their impact on the German economy as the main reason for the downward revision. The IMF in its latest World Economic Outlook, which was published earlier this week, also cut its expectations for the German economy with the body now projecting a 0.2% contraction.

Germany’s economy has been struggling for some time, contracting in both 2023 and 2024 on an annual basis. The country has however avoided a technical recession, which is characterized by two consecutive quarters of contraction. The latest GDP data is slated to be released next week. There could however also be some positives on the horizon after a major fiscal package, which could lead to a major investment boost, was enshrined in Germany’s constitution earlier this year. It included changes to the long-standing debt brake rule that are set to enable higher defense spending, as well as a 500 billion euro ($569 billion) infrastructure investment fund. Germany’s debt brake limits how much debt the government can take on and dictates the size of the federal government’s structural budget deficit

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“In order for a system to be stabIe, it requires negative feedback, also known as consequences.” —Barrie Drain

Where Things Stand (James Howard Kunstler)

“Fighting fascism,” for the American Jacobins who lead the Democratic Party, means opposing any attempt to flush the corruption out of the entrenched bureaucracy, just as their pet phrase “our democracy” actually refers to the matrix of grift and despotic activism that drives their political operating system. That is exactly how and why the USAID was so crucial to spread captured taxpayer spoils as NGO salaries for the gender studies grads to play “activist,” so as to inflict their special brand of sadistic power madness over the land — to keep the game going. Now, USAID is scattered to the winds and all they have left is their installed base of federal judges and the horde of lawfare lawyers who feed them bogus cases to halt the remaining work of Mr. Trump’s executive branch clean-up operation.

Remember: Robespierre, leader of the Jacobins in the French Revolution, was a lawyer. Their version of defending “our democracy” in 1793 was the Reign of Terror that sent at least 17,000 political opponents to the guillotine. Rep. Jamie Raskin (D-MD) is the Democrats’ Robespierre. He is promising his own reign of terror when his party recaptures Congress in the 2026 “midterm” election. Norm Eisen is his chief lawyer and legal strategist. His sole aim is to recapture power in order to restore the Democrats’ sadistic regime of thought-control and the money-flows that feed it. That’s where things stand for the moment. You can sense how this tension is tending toward something that looks like civil war.

In the House, Rep. Darrel Issa (R-CA) has introduced the No Rogue Rulings Act of 2025 (HR 1526, passed on April 9) to complement Sen. Grassley’s bill. The Constitution is somewhat vague about the composition of a federal judiciary below the Supreme Court, and essentially leaves the matter to Congress to set parameters for the power of federal judges. Congress can also alter or abolish districts, such as the DC federal district from which so much partisan Democratic Party lawfare has emanated under political activist Judges James Boasberg, Amy Berman Jackson, Tanya Chutkan, and Beryl Howell (all of them involved in the sadistic prosecutions of J-6 defendants).The bills from each house next must go through a reconciliation process that boils them down to a single piece of legislation that can be sent to Mr. Trump for the presidential signature. The House passage is likely assured.

The hang-up is that under Senate rules, the Democrats could mount a filibuster that would require 60 votes to break. The Republicans only control the chamber by a 53 to 47 majority, and no Democrats have signaled any intention to vote in favor of such a bill. In any case, the entire process would take months and might not succeed at all. A much simpler remedy would be for the Supreme Court (SCOTUS) to rule in any of a number of cases now on their docket that the lawfare antics of the federal judges amount to interference with an independent executive branch — in short, that the judiciary can’t usurp the executive powers of the President, which include the conduct of foreign policy, the ability to manage personnel in executive agencies, and certain issues around the spending of taxpayer dollars.

A different sort of remedy would be the application by the DOJ of federal statute 18 USC 371, Conspiracy to Defraud the United States against Norm Eisen and his colleagues-in-lawfare for attempting to maliciously bury the executive branch in litigation for the purpose of nullifying the executive powers of the president. Beyond all that is the abyss: a nullified election, a paralyzed chief executive, and a constitutional crisis that has the potential to lead to civil violence. The Democrats seem willing to go there, perhaps even avid for it. The Jacobins of 1793 were mad for blood, too, and they spilled a whole lot of it. By the summer of 1794, the blood was finally spouting out of their own necks. . . and then the Jacobin reign of terror came to a sudden and complete end. Heed their example.

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But they’re not done yet. Got to have that giant NATO base.

Cancelation of Romania’s Presidential Election Overturned (RT)

An appeals court in Romania has suspended the Constitutional Court’s decision to annul the results of the first round of last year’s presidential election, which was won unexpectedly by independent candidate Calin Georgescu, local media outlets reported on Thursday. Georgescu, a vocal NATO critic and opponent of arming Ukraine, made the headlines in November 2024 after securing 23% of the vote in the first round of the election. The Constitutional Court later invalidated the results, citing “irregularities” in his campaign and intelligence reports alleging Russian interference – which Moscow has denied. On Thursday, Judge Alexandru Vasile of the Ploiesti Court of Appeal overturned the annulment, according to HotNews. The prosecutor’s office attached to the Ploiesti court has filed an appeal.

George Simion, the leader of the Alliance for the Union of Romanians party, welcomed the decision as a “return to democracy” and constitutional order in a post on X. He added, however, that the Central Electoral Bureau – which barred Georgescu from running in May – “ignores it and continues its activity.” In February, Georgescu was indicted on six criminal charges, including allegedly plotting “anti-constitutional acts” and “promoting fascist, racist, or xenophobic ideologies.” He has denied all the charges, insisting the criminal case against him is part of a campaign orchestrated by the Romanian “deep state.”

The politician, who is under a 60-day travel ban as part of judicial oversight, will remain under court supervision for another 60 days, according to media reports. The preliminary findings of an investigation into the ‘irregularities’ found they were likely caused by a consulting firm associated with the pro-Western National Liberal Party running a campaign on behalf of an opponent of Georgescu, which backfired.

Romania
https://twitter.com/daily_romania/status/1915657419264246123

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“Our success depends on his ability to shock you.”

Time has a whole edition on Trump. This is just one of their stories. A look from “the other side”.

Exclusive: Inside Trump’s First 100 Days (Time)

President Donald Trump emerges through a pair of handsome wooden doors on the third floor of the White House. On his way down the wide, carpeted staircase, he passes portraits of his predecessors. Nixon is opposite the landing outside the residence. Two flights down, he has swapped the placement of Clinton and Lincoln, moving a massive painting of the latter into the main entrance hall of the mansion. “Lincoln is Lincoln, in all fairness,” he explains. “And I gave Clinton a good space.” But it’s the portrait around the corner that Trump wants to show off. It’s a giant painting of a photograph—that photograph, the famous image of Trump, his fist raised, blood trickling down his face, after the attempt on his life last July at a rally in Butler, Pa. It hangs across the foyer from a portrait of Obama, in tacit competition. When they bring tours in, everyone wants to look at this one, Trump says, gesturing to the painting of himself, in technicolor defiance. “100 to 1, they prefer that,” he says. “It’s incredible.”

Making his way out to the Rose Garden, he walks up the inclined colonnade toward the Oval Office, describing the other alterations to the decor, both inside and out. His imprint on his workspace is apparent. The molding and mantels have gold accents now, and he has filled the walls with portraits of other presidents in gilded frames. He has hung an early copy of the Declaration of Independence behind a set of blue curtains. The box with a red button that allows Trump to summon Diet Cokes is back in its place on the Resolute desk, behind which stands a new battalion of flags, including one for the U.S. Space Force, the military branch he established. A map of the “Gulf of America,” as Trump has rechristened the Gulf of Mexico, was propped on a stand nearby.

If Trump is making cosmetic changes to the White House, his effect on the presidency goes much deeper. The first 100 days of his second term have been among the most destabilizing in American history, a blitz of power grabs, strategic shifts, and direct attacks that have left opponents, global counterparts, and even many supporters stunned. Trump has launched a battery of orders and memoranda that have hobbled entire government agencies and departments. He has threatened to take Greenland by force, seize control of the Panama Canal, and annex Canada. Weaponizing his control of the Justice Department, he has ordered investigations of political enemies. He has gutted much of the civil service, removing more than a hundred thousand federal workers. He has gone to war with institutions across American life: universities, media outlets, law firms, museums.

He pardoned or gave a commutation to every single defendant charged in connection with the Jan. 6 attacks, including those convicted of violent acts and seditious conspiracy. Seeking to remake the global economy, he triggered a trade war by unleashing a sweeping array of tariffs that sent markets plummeting. Embarking on his promised program of mass deportation, he has mobilized agencies across government, from the IRS to the Postal Service, as part of the effort to find, detain, and expel immigrants. He has shipped some of them to foreign countries without due process, citing a wartime provision from the 18th century. His Administration has snatched foreign students off the streets and stripped their visas for engaging in speech he dislikes. He has threatened to send Americans to a notorious prison in El Salvador. Says one senior Administration official: “Our success depends on his ability to shock you.”

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2032

 

 

Sun

 

 

Miniatures
https://twitter.com/Rainmaker1973/status/1915721903483875524

 

 

Laundry

 

 

Willy

https://twitter.com/nicksortor/status/1915771350137897215

 

 

Rowe

 

 

Machine

 

 

Baby swan

 

 

Puffer

 

 

 

 

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

 

 

 

 

 

Oct 232024
 


René Magritte After the water, the clouds 1926

 

Biden Wants Trump ‘Locked Up’ (RT)
“This Is War”: Musk Responds To Bombshell “Kill Twitter” Plot (ZH)
Musk’s Trump Support Follows Wave Of Government Probes Into His Companies (JTN)
Polymarket Is Singlehandedly Moving The Entire US Bond Market (ZH)
Biden Admin Under Fire Over Virginia Non-Citizen Voter Removals (Turley)
Two Weeks Before the Meltdown Begins (Miele)
Questions Are All “Pre Determined” At Kamala’s FAKE Town Hall (MN)
Trump-Rogan Interview Set For Friday: Politico (ZH)
Texas AG Demands FEC Action Over ‘Suspicious Donations’ To Democrats (ZH)
Ukrainian Troops Increasingly Refusing Orders – El Pais (RT)
Dumping US Dollar ‘Keeps Politics Out Of Economic Development’ – Putin (RT)
Dollar’s Diktat Will Prove Its Downfall Once Emerging Powers Unite (Sp.)
EU Bracing For Trade War With Trump – Politico (RT)
Sharp Rise In Russia’s Share Of EU LNG Market (RT)
Harris Denies Israel Is Committing Genocide in Gaza – Campaign (Antiwar)
Biblical Cruelty Took Power In Israel: “Mein Kampf In Reverse” (José Goulão)

 

 

 

 


Elon Musk: “It must reach 69%, as foretold in the prophecy”

 

 

 

 

Vivek

High speed

Election day
https://twitter.com/i/status/1848572247650537955

Count

Lara

Convicted felon

RFK


https://twitter.com/i/status/1848550176925093961

Dana White

IRS

Tulsi

 

 

 

 

 

 

Scripted clickbait. “I know this sounds bizarre. If I had said this five years ago, you’d lock me up, but we’ve got to lock him up..”

Biden Wants Trump ‘Locked Up’ (RT)

US President Joe Biden has claimed that Republican contender Donald Trump wants presidential immunity and powers to kill his opposition, and therefore should be locked up, as he spoke to a Democratic crowd with the election just half a month away. Biden, who stepped aside earlier this year to allow Vice President Kamala Harris to become the Democratic nominee, made the statement at a campaign office in New Hampshire on Tuesday. “He thinks he has a version of the Supreme Court ruling on immunity that allows him, if necessary, to physically eliminate someone he believes is a threat to him,” he said, referring to former President Trump. “I know this sounds bizarre. If I had said this five years ago, you’d lock me up, but we’ve got to lock him up,” Biden stated, drawing applause from the audience.

https://twitter.com/i/status/1848854784054571349

“Politically lock him up,” he clarified amid the crowd noise, seemingly backtracking on his statement. “Lock him out. That’s what we have to do.” Biden has faced scrutiny in the media over numerous gaffes, often misspeaking at similar events. He stepped aside as his party’s contender earlier this year amid concerns about his mental state following a disastrous televised debate against Trump. Last week, Biden suggested that Trump is running for president again “to stay out of jail,” referencing the Republican’s legal troubles.

Earlier this year, a Manhattan jury found Trump guilty on 34 charges related to falsifying business documents to cover up hush money paid to porn star Stormy Daniels. Trump also faces charges related to the January 6, 2021, Capitol riots. He denies any wrongdoing and insists that all of his legal troubles are a political witch hunt by his opponents. After Biden endorsed Harris as his party’s nominee, the Democrats initially enjoyed a honeymoon period with voters, rising in the polls. However, recent averages from the RCP polling data aggregator indicate that Trump is leading in all swing states.

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“..British advisors from Labour Together rescuing the distressed political damsel that is the Harris/Walz campaign..”

“This Is War”: Musk Responds To Bombshell “Kill Twitter” Plot (ZH)

Elon Musk has responded to a bombshell report by journalists Paul Thacker and Matt Taibbi which reveals that a the UK’s Center for Countering Digital Hate – which is advising the Kamala Harris campaign, aims to “kill Musk’s Twitter”. [..] The British are coming, to meddle in our elections! In an explosive leak with ramifications for the upcoming U.S. presidential election, internal documents from the Center for Countering Digital Hate—whose founder is British political operative Morgan McSweeney, now advising the Kamala Harris campaign—show the group plans in writing to “kill Musk’s Twitter” while strengthening ties with the Biden/Harris administration and Democrats like Senator Amy Klobuchar, who has introduced multiple bills to regulate online “misinformation.”

[..] The documents obtained by The DisInformation Chronicle and Racket show CCDH’s hyperfocus on Musk — “Kill Musk’s Twitter” is the first item in the template of its monthly agenda notes dating back to the early months of this year. KILL, KILL, KILL: No matter what else the CCDH talks about, “Kill Musk’s Twitter” is its first item of business. The Center for Countering Digital Hate is the anti-disinformation activist ally of Prime Minister Keir Starmer’s Labour Party, and a messaging vehicle for Labour’s neoliberal think tank, Labour Together. Both the CCDH and Labour Together were founded by Morgan McSweeney, a Svengali credited with piloting Starmer’s rise to Downing Street, much as Karl Rove is credited with guiding George W. Bush to the White House.

The CCDH documents carry particular importance because McSweeney’s Labour Together political operatives have been teaching election strategy to Kamala Harris and Tim Walz, leading Politico to call Labour and the Democrats “sister parties.” CCDH’s focus on “Kill Musk’s Twitter” also adds to legal questions about the nonprofit’s tax-exempt status as a 501(c)(3) organization. According to the IRS, CCDH could lose its special tax status if “a substantial part of its activities is attempting to influence legislation.” Yet, CCDH’s third item on its annual priority list is “Trigger EU and UK regulatory action” and the group previously employed the firm Lot Sixteen to lobby congressional offices on “misinformation” in Washington. Both The DisInformation Chronicle and Racket have sent multiple, extensive questions to CCDH’s current CEO Imran Ahmed, another British political operative tied to McSweeney’s Labour Together. [..]

In the last two months, the Washington Post and Politico, among others, have run a series of features about British advisors from Labour Together rescuing the distressed political damsel that is the Harris/Walz campaign. Politico casts McSweeney as the “election mastermind” who first helped Keir Starmer defeat leftist Jeremy Corbyn to become the head of Labour, all the way to Starmer’s “landslide” win over Conservatives to become Prime Minister this past July, implying that McSweeney and his team can perform a similar miracle for Harris.

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“Take the red pill..”

Musk’s Trump Support Follows Wave Of Government Probes Into His Companies (JTN)

As Elon Musk ramps up his $1 million-a-day support for Donald Trump, what appears to be a record of progressive harassment of his many companies may explain how the world’s richest man went all-in for Republicans. Musk’s transformation from a politically unengaged tech billionaire to mega-donor and avid campaigner has earned him the ire of Democrats who have derided “disinformation” on his X platform and suggest he is violating the law in his support for Trump. Undeterred, Musk, touting his most recent effort over the weekend, announced that his Trump-supporting Save America PAC would give away $1 million a day to people who sign an online petition pledging support for the First and Second Amendments. To date, the multibillionaire has reportedly dumped $75 million of his own cash into the political action committee to support Trump’s third bid for the presidency.

He has also joined the candidate on the campaign trail and is holding events in swing state Pennsylvania, becoming a de facto surrogate for the former president. “Take the red pill,” Elon Musk posted to X, alluding to the famous choice in the cult-classic movie “The Matrix” which has now come to represent a choice between the Red (Republican) and Blue (Democratic) political parties. Musk’s evolution into a fervent Trump supporter comes after years increasingly aggressive probes into his four companies by various agencies of the Biden administration for seemingly frivolous and potentially serious concerns alike. It is likely no accident that Musk now wants to see the government reduced in size and scope after burdensome lawsuits and regulatory actions against his companies, previously saying publicly that bureaucracy is “smothering” large projects in the United States.

Most recently, a California body responsible for managing the coastlines blocked a proposal for the Defense Department on behalf of SpaceX for increasing launches from Vandenberg Space Force Base in the state. Musk’s SpaceX has raked in billions from contracts primarily with DOD and NASA. The California Coastal Commission drew scrutiny after its members voiced criticisms of Musk’s political leanings during a meeting about whether to approve more frequent launches by the company in addition to other concerns, like the environment. “We’re dealing with a company, the head of which has aggressively injected himself into the presidential race and he’s managed a company in a way … that I find to be very disturbing,” said agency chair Caryl Hart. “The Coastal Commission has one job — take care of the California coast,” Musk shot back on X Tuesday before SpaceX filed a lawsuit against the commission.

“It is illegal for them to make decisions based on what they (mostly wrongly) think are my politics.” “Rarely has a government agency made so clear that it was exceeding its authorized mandate to punish a company for the political views and statements of its largest shareholder and CEO,” SpaceX alleged in the 45-page lawsuit. This is not the first time Musk’s SpaceX has been the target of government action. Last August, the Department of Justice announced a high profile lawsuit against the space exploration company for allegedly discriminating against asylum claimants and refugees in its hiring process. The suit alleged Musk’s company “routinely discouraged asylees and refugees from applying and refused to hire or consider them, because of their citizenship status,” according to the DOJ press release.

“SpaceX was told repeatedly that hiring anyone who was not a permanent resident of the United States would violate international arms trafficking law, which would be a criminal offense,” Musk said in post to X, which he acquired in a $44 billion deal in 2022. “We couldn’t even hire Canadian citizens, despite Canada being part of NORAD! This is yet another case of weaponization of the DOJ for political purposes.” Several months later, a federal judge in Texas blocked the administrative case against the company from proceeding while it challenged the specific internal adjudication process. In a preliminary ruling earlier this year, a Texas judge ruled that the internal DOJ administrative panel process was unconstitutional, though the decision is not binding on the federal government.

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“..both Treasuries and the Mexican peso appear to be pricing in a rising probability of Donald Trump winning..”

Polymarket Is Singlehandedly Moving The Entire US Bond Market (ZH)

Online betting exchange Polymarket has not only taken the attention space by storm, rapidly becoming one of the most downloaded Apple apps… it is also quickly becoming a key driver behind the world’s largest and most liquid bond market. According to Bloomberg’s Masaki Kondo writes, Polymarket has become instrumental in setting at least the near-term price signals not only for the $28 trillion marketable US Treasury markets, but also for FX markets: that’s because both Treasuries and the Mexican peso appear to be pricing in a rising probability of Donald Trump winning the US presidential election, as indicated by Polymarket, while ignoring traditional polls which for the most part still show Kamala in the lead.

As this Bloomberg chart shows, the benchmark 10Y yield has been closely tracking the spread in the perceived odds of a vote victory between Trump and Kamala Harris. This difference has reached almost 30% points, according to data from Polymarket, with Trump seen leading the race, and where competitors such as Kalshi and PredictIt now show the same odds with a notable delay behind Polymarket which has emerged as the undisputed leader in the online betting space. Even such Bloomberg luminaries as John Authers admit Polymarket’s role in setting bond prices: “In the last few months, it’s striking that the 10-year yield has traced the Trump odds according to Polymarket — an offshore market that may be over-influenced by a few large bettors, but which seems to be driving opinion on Wall Street.”

Of course, Polymarket is just the starting signal: the actual driver behind the blowout move in yields, which as we noted earlier have surged by a whopping 50bps since the Fed’s very unironic 50bps rate cut one month ago…is because memory is still be fresh among bond traders that the 10-year yield soared almost 80bps in about a month after Trump’s last victory in November 2016. Granted, one can argue this time may be different, as the jump in yields back then was in part driven by the start of the Federal Reserve’s tightening cycle while the direction of Fed policy is the opposite now, but the kneejerk reaction to a market that is now is now aggressively pricing in a Trump presidency is there.

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“Motor Voter Law..”

Biden Admin Under Fire Over Virginia Non-Citizen Voter Removals (Turley)

Call it the Mark of Kaine. The heated dispute between the Biden Administration and the State of Virginia just took a curious turn after Virginia lawyers released support for the effort to remove alleged noncitizens from the voting rolls ahead of the presidential election. The main witness against the Biden Administration may prove to be Sen. Tim Kaine (D., Va.) who is on the ballot this election. The Biden Administration sued to stop the removal of 6,303 alleged noncitizens from Virginia’s voter rolls before the election, which is expected to be close in the state. It relies on the National Voter Registration Act (NVRA), or the “Motor Voter Law,” which bars “systemic” removals for voters from the rolls less than 90 days before an election. Youngkin ordered compliance with existing laws, citing Virginia code 24.2-439, requiring the removal of noncitizens whose names were added under false pretenses. It also cited Virginia Code 24.2-1019, requiring registrars to immediately notify their county or city prosecutor of such situations.

The NVRA has exceptions for removals within what the Justice Department calls the “quiet” period before an election, including the removal of individuals who are “ineligible to vote because of a criminal conviction or mental incapacity, or for “correction of registration records pursuant to this chapter.” However, the state argues as a threshold matter that these are not systemic removals. The state argues that these are individual actions triggered automatically by citizens identifying themselves as noncitizens but then joining the voting rolls. It is a crime for a noncitizen to vote in the election. The state notes that the voter is notified of the problem and allowed to correct any errors to remain on the rolls. If they do not correct the problem, they are removed from the rolls. However, they can still vote on election day with a “provisional” ballot to challenge any removal.

Virginia is not targeting any group and does not know how these voters might vote. It is responding to a notice coming from the Department of Motor Vehicle of a possible ineligibility and potential criminal act if they person actually votes, which is admittedly rare for noncitizens. While the Justice Department insists that some of these individuals are actually citizens, the system allows for those citizens to remain on the rolls by simply correcting the DMV record. I understand concerns over changes close to the election, but there seemed to be a host of options for the Justice Department short of this lawsuit, including working with the state to be sure that this relatively small number of voters are given ample opportunity to correct their records. This weekend, Virginia added a new wrinkle in the litigation. The Virginia law has been on the books since 2006.

The bipartisan legislation was signed into law by then Virginia Gov. Tim Kaine. It has been used without any objection for all those years. However, it now appears that Kaine’s administration specifically asked the Justice Department to determine if the law was compliant with federal laws, including an express inquiry about the NVRA. On December 16, 2006, the Justice Department completed its review and found no objections to the Virginia law though it added that it reserves the right to object in the future to any such laws. Gov. Glenn Youngkin further told Fox News that past governors continued to use the law within the 90 days period without a peep of objection from the Justice Department. These facts distinguish the Virginia case from the Alabama case where a court enjoined removal of names of suspected non-citizens.

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“..a red, white and blue cap inscribed with “TUSA,” short for “Told U So America!”

Two Weeks Before the Meltdown Begins (Miele)

I wouldn’t be much of a political pundit if I weren’t willing to share my prediction for what will happen in 15 days when one of the most important presidential elections in history is decided. So here goes: Donald Trump will win, and he will win convincingly. But that doesn’t mean the progressive left won’t have a meltdown. Just as in 2016, when Trump was first elected president, the media will be dismayed, the Democrats will be shocked, and there will be protests in the streets, possibly violent. Congressional Democrats such as Jamie Raskin will try to prevent Trump from being sworn in by declaring him an insurrectionist. Seven so-called battleground states are supposed to decide the election: Pennsylvania, Michigan, Wisconsin, North Carolina, Georgia, Nevada, and Arizona. But even more important will be the experience of the American people, who in large measure have come to regret the election that put Joe Biden in the White House four years ago.

That is the underlying story that the media will never acknowledge. Polling within the last year shows that less than one-third of Republicans believe Biden is the legitimate president, and 36% of all Americans have doubts about the 2020 election. That is only a feeling, not a fact, but feelings decide presidential elections, and the almost gleeful anti-American thrust of Biden’s presidency has given more than 60% of potential voters a feeling that we are on the wrong track as a nation. Five days before the 2020 election, I published a spoof that proved modestly prophetic as a warning about the pitfalls of a Democratic victory. Called “The Short Happy Presidency of Joe Biden,” it predicted that Kamala Harris would invoke the 25th Amendment immediately after Biden’s inauguration in order to seize power in a bureaucratic coup. It didn’t quite happen that way, of course, but 3 1/2 disastrous years later, Kamala along with Chuck Schumer and Nancy Pelosi seemingly used the specter of the 25th Amendment to force Biden to end his reelection bid. Life imitating art.

In my pastiche, President Trump had appeared close to sealing his victory in the 2020 election, thanks to late mail-in votes in Pennsylvania. But “in an emergency session, the Pennsylvania Supreme Court convenes and reverses its earlier ruling that late votes could be counted for up to three days. The new ruling asserts that late voting amounts to election interference ‘on account of Trump winning,’ thus handing the state and the Electoral College victory to Biden.” Exaggerated, yes, but prescient in regard to how courts across the country would eventually rule in Biden’s favor on almost every issue, refusing to look at the evidence of fraud or unconstitutional irregularities. Perhaps the most prophetic aspect of my column four years ago was how I depicted the reaction of Trump to losing a disputed election. Just two days after the inauguration of first Biden and then Harris:

“Former President Donald Trump announces that he is running for re-election in 2024 after taking a four-year rest to catch up on his golf and make a few billion dollars. Trump says his new role model will be Grover Cleveland, the only president to serve non-consecutive terms. “If it’s good enough for Grover, it’s good enough for me!” Trump also tries out a new campaign slogan, as he takes a swing at Biden voters with a red, white and blue cap inscribed with “TUSA,” short for “Told U So America!” When you think about it, that really is the underlying message that Trump has been sharing for the past four years. And Americans got the message – because it matched their lived experience. They saw with their own eyes that the wide-open Biden border was being called secure by Biden, Harris, and Homeland Security Secretary Alejandro Mayorkas. They saw that Biden’s Supreme Court nominee couldn’t say for sure what makes a woman a woman, and then they watched as boys began to dominate girls’ sports. They watched prices on the rise and safety in decline.

Worst of all, they stood helpless as the world seemed to be rushing headlong toward World War III, first in Ukraine, then the Middle East, all the while as China has been threatening to cripple the world economy by attacking Taiwan. So, yes, Trump will be elected as the 47th president of the United States, and the liberal talking heads will melt down just as they did in 2016. But what matters most is what happens after the election, and whether the experience of Americans will reflect renewed prosperity, a safer world, and respect for tradition and common sense. Many will try to prevent that, but making America great again should be a unifying goal. “Ask not what your country can do for you – ask what you can do for your country.” And if I am wrong and Kamala Harris becomes the 47th president, I pray that divine providence takes hold of her and guides her to protect, defend, and strengthen these United States and their Constitution. Seems like a long shot, but without Trump, prayer is all we got.

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“..hopefully I will be able to ask some questions that will be in your head..”

Questions Are All “Pre Determined” At Kamala’s FAKE Town Hall (MN)

Kamala Harris held a “town hall” meeting Monday, giving those in attendance a chance to ask questions and testing her mettle when it comes to being put on the spot. Not really. It was all fake and scripted. The reality of the situation was unintentionally exposed by Maria Shriver, the moderator of the event in Royal Oak, Michigan. Shriver had to inform an audience member that they couldn’t actually ask any real questions at Kamala’s town hall because they were all scripted and handed to Harris beforehand. “We have some pre-determined questions and hopefully I will be able to ask some questions that will be in your head,” Shriver told the person. The thing was full of her own supporters and an anchor who was never going to challenge her on anything.

Why did it still have to be fake? What does this tell you about her if she were to become president? Even the press conference for the event was fake with Harris’ handler directing pre selected reporters with pre screened questions. The rest of the fake event was just word salads and empty platitudes as usual. It’s so hard to watch without grinding one’s teeth to pulp from cringing. Enough already. To top it all off they sat war obsessed RINO Liz Cheney next to her. Why can’t she do the fake Q&A on her own?

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“..the two have had a complicated relationship..”

Trump-Rogan Interview Set For Friday: Politico (ZH)

Former President Donald Trump is set to record an interview with podcasting king Joe Rogan on Friday at Rogan’s studio in Austin, Texas. According to Politico, Rogan – who has over 14 million followers on Spotify, continues to dominate national podcast ratings. Trump’s appearance is expected to help Trump win young male voters – after appearing on such podcasts as “This Week w/ Theo Vaughn” and “Full Send.” Trump has never appeared on Rogan’s podcast and the two have had a complicated relationship. In August, Trump called out Rogan after the podcaster claimed that politicians on both sides are manipulative except for Robert Kennedy Jr., who at the time was running for president. -Politico

Reactions have been mixed – with some suggesting this is “incredible news,” and others suggesting this might not go well for the former president. Meanwhile, after rumors first emerged of a Trump appearance on Rogan, Reuters reported that Vice President Kamala Harris ‘could’ also sit down for an interview. (lol)

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ActBlue.

Texas AG Demands FEC Action Over ‘Suspicious Donations’ To Democrats (ZH)

Texas Attorney General Ken Paxton says he has evidence that the Democrat fundraising platform ActBlue is interfering in the 2024 US election by allowing straw donors to mask “bad actors” donating to candidates “Our investigation into ActBlue has uncovered facts indicating that bad actors can illegally interfere in American elections by disguising political donations,” Paxton said in a statement on X. “It is imperative that the FEC close off the avenues we have identified by which foreign contributions or contributions in excess of legal limits could be unlawfully funneled to political campaigns, bypassing campaign finance regulations and compromising our electoral system.”

In a Monday press release, Paxton says he sent a Petition for Rulemaking to the Federal Election Commission (FEC) detailing how “suspicious actors appear to be using ActBlue’s political fundraising platform to make a large number of straw political donations.” “Our investigation into ActBlue has uncovered facts indicating that bad actors can illegally interfere in American elections by disguising political donations.” Last December, Paxton launched an investigation into ActBlue. In August, of this year he said that “straw donations” were systematically being made using false identities through untraceable payment methods. “I am calling on the FEC to immediately begin rulemaking to secure our elections from any criminal actors exploiting these vulnerabilities,” said Paxton. As Fox News reports further;

“ActBlue targets small-dollar donations, the Hill first reported, and has been an integral part of the Democratic fundraising structure, collecting an estimated $1.5 billion from about 7 million donors. While that influx of cash was split among nearly 19,000 campaigns, an excessive amount has gone to the highest profile races. In just the first few days of the Harris campaign, for example, donors gave her $200 million through the platform, per ActBlue’s account on the social platform X, the Hill reported. In September, Rep. Bryan Steil (R-Wis.) introduced a bill that would require political committees to collect CVVs — the three- or four-digit “card verification value” on the back of a credit card — along with political donations.

Steil, who chairs the Committee on House Administration, sent a letter to top FEC officials urging them to “immediately initiate an emergency rulemaking to require political campaigns to verify the card verification value (‘CVV’) of donors who contribute online using a credit or debit card, and to prohibit political campaigns from accepting online contributions from a gift card or other prepaid credit cards.” The Aug. 5 request came in response to accusations that ActBlue is skirting campaign donation laws that allow for rampant fraud on the site. Paxton’s office has said previously that “secure elections are the cornerstone of our republic.”

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“He fought the entire war on the front line, in Robotino, Soledar, Kherson… He was exhausted, he couldn’t take it anymore and the commanders didn’t give him a break. A few days ago he left, just like that..”

Ukrainian Troops Increasingly Refusing Orders – El Pais (RT)

Ukrainian servicemen are increasingly refusing to follow orders and fleeing their positions, accusing their leadership of assigning them suicide missions, the Spanish newspaper El Pais reported on Monday, citing several Ukrainian officers. The outlet claimed that soldiers from four brigades fighting near the besieged settlement of Kurakhovo in Russia’s Donetsk People’s Republic have claimed that “the future of the war is bleak for their interests because there are not enough replacements.” “Why are we retreating? Because we have no rotations, we don’t rest, we are demoralized,” one officer told the outlet, adding that there is a growing problem of Ukrainian soldiers fleeing their positions. “I had a friend, we called him England. He fought the entire war on the front line, in Robotino, Soledar, Kherson… He was exhausted, he couldn’t take it anymore and the commanders didn’t give him a break. A few days ago he left, just like that,” the officer said.

A Ukrainian sergeant who goes by Churbanov also told the Spanish outlet that the shortage of soldiers had become the biggest problem facing the Ukrainian military, noting that servicemen often have to spend three months in their positions without rest or rotation. Another serviceman, identified as Alexander, who serves in the Territorial Defense Forces (TRO), also told El Pais that at one point the 116th TRO brigade near Kurakhovo staged a mass rebellion and refused to follow orders. After that, the whole brigade was supposedly transferred to Sumy Region, from where Kiev launched its incursion into Russia’s Kursk Region, according to the officer. A source within Russia’s security services has also confirmed to the TASS news agency that Ukraine’s 116th TRO brigade had indeed been transferred to participate in the Kursk incursion as punishment for its mutiny.

According to a source cited by the outlet, Kiev was trying to “somehow correct the situation in Kursk Region at the expense of the already demoralized Ukrainian Armed Forces soldiers.” Alexander also told El Pais that there had been a high-profile case earlier this month where 100 soldiers of the 123rd TRO Brigade abandoned their positions near Ugledar several days before the city was captured by Russian forces. The officer explained that they did this to “announce that without sufficient training and weapons they were being assigned to a suicidal defense,” according to El Pais. Moscow has long characterized the hostilities in Ukraine as a US-initiated proxy war against Russia in which Ukrainian soldiers were being expended as “cannon fodder” with the complicity of their government.

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“..helps to keep economic development free from politics as far as possible in the context of today’s world.”

Dumping US Dollar ‘Keeps Politics Out Of Economic Development’ – Putin (RT)

Boosting trade settlements in national currencies between members of the BRICS group is a strategic necessity, Russian President Vladimir Putin has said, adding that a shift from the US dollar would strengthen financial independence and reduce geopolitical risks. Russia is currently hosting the 16th annual BRICS Summit in the city of Kazan. The group comprises Brazil, Russia, India, China, and South Africa, as well as new members Iran, Egypt, Ethiopia, and the UAE, which joined in January. Speaking on Tuesday with the president of the BRICS New Development Bank, Dilma Rousseff, Putin emphasized that the use of local currencies instead of the dollar or euro “helps to keep economic development free from politics as far as possible in the context of today’s world.”

The unprecedented US-led sanctions campaign against Moscow due to the Ukraine conflict has forced Russia and other BRICS members to seek alternative ways to pursue trade. Russia’s leading banks were banned outright from the SWIFT international payment system back in 2022 as part of the restrictions. Last month, Putin said that Russia was already actively switching to the use of national currencies in cross-border trade with its BRICS partners, and that the group’s members were jointly developing a payment and settlement framework to be used in trading. In August, Russian Prime Minister Mikhail Mishustin said that over 95% of mutual settlements between Russia and its biggest trading partner, China, are carried out using the ruble or yuan. Earlier this month, Indian Foreign Minister Subrahmanyam Jaishankar said New Delhi was looking to secure its interests and find “workarounds” in settlements with global partners, including Russia.

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“Other economies have to improve to a point where the relative US domination declines further, and in that case the alternative system will easily emerge.”

Dollar’s Diktat Will Prove Its Downfall Once Emerging Powers Unite (Sp.)

The annual meetings of the International Monetary Fund and the World Bank kicked off in Washington, DC on Monday, with the gatherings, set to run through Saturday, expected to focus on the global debt crisis and ways to save the US-led international financial order. Here’s what will need to happen for the dollar’s dominance to fade into history. The US accounts for over a third of the skyrocketing $100 trillion in global public debt, with the country’s $35.75 trillion in borrowing (and climbing) gradually putting the economic behemoth in jeopardy as its share of global GDP by PPP sinks to below 15% – its lowest showing since the Great Depression of the 1930s, and down from a historic high of as much as 50% (in nominal terms) in the mid-1940s and the creation of the Bretton Woods System of international exchange.

“Countries are seeking ways and means of conducting trade and business outside the US-dominated financial architecture, because they are fed up with the US dictating terms to multiple countries, especially by preventing countries from doing business with countries under US sanctions,” Chintamani Mahapatra, founder and chairman of the Kalinga Institute of Indo-Pacific Studies, told Sputnik, commenting on the US’s relative decline against the backdrop of this week’s IMF/World Bank Group meetings. There is essentially no other option for many countries at the moment “to conduct business with countries under US sanctions, even if they do not support US sanctions,” Mahapatra stressed, pointing out that the rising Chinese yuan has a way to go before it can “emerge as a credible international currency,” and that US-led institutions like the IMF, World Bank and WTO will be certain to do their best to “ensure that the US and its allies maintain their dominance in the global financial ecosystem.”

“The combined West will try not to allow an alternative system from rising. And the non-West is hardly united. Countries have complex interdependence,” the observer said. “Thus, one cannot write the obituary of the dollar-dominated system at the moment. Other economies have to improve to a point where the relative US domination declines further, and in that case the alternative system will easily emerge.” “The first step should be to attempt to create an alternative financial system for global trade, so that the payment system can be other than the current financial architecture dominated by the United States. However, de-dollarization is not easy. The emerging economies will have to resolve their bilateral political and security differences before seeking to create a de-dollarized order based on non-discrimination, equity and justness,” Mahapatra emphasized.

For now, “the US, and not many other countries, are benefiting a great deal from the current war in Europe and the West Asian region. Thus, expecting other economies to perform better now is not appropriate,” Mahapatra added. As far as the IMF/World Bank agenda’s focus on debt is concerned, the observer stressed that so long as the dollar’s hegemony is maintained, growing debt in the US will create major risks for the global economy. “Although the US, the largest global economy, is facing huge public debt, the US economy is unlikely to suffer much. After all, the US Federal Reserve prints dollars and not any other country. But decline or turbulence in the US economy due to huge and unsustainable debt will have global ramifications and thus countries are trying to avoid shocks as a natural reaction,” Mahapatra said.

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“Our allies have taken advantage of us. More so than our enemies..”

“To me, the most beautiful word in the dictionary is ‘tariffs’..”

EU Bracing For Trade War With Trump – Politico (RT)

The EU is bracing for a massive trade war with Donald Trump if he wins the US presidential race in November and erects new barriers to commerce with Europe, Politico reported on Monday, citing senior diplomats and EU officials. Concerns are mounting in EU capitals since the former US president has pledged to target the bloc with a slew of new punitive trade measures in a bid to address what he says are serious imbalances in imports and exports, the outlet said. Washington and Brussels have been at odds over the issue since Trump imposed 25% tariffs on imports of European steel and 10% on aluminum in 2018 in his first term as president, arguing EU competition was endangering US national security. The EU retaliated, imposing duties on companies including motorcycles produced by Harley-Davidson Inc. and Levi Strauss & Co jeans.

Trump went even further however, and threatened to impose tariffs on EU car exports. Although the threatened duties never took effect, Brussels “was shocked” by Trump’s willingness to overhaul supply chains. “Last time we didn’t believe how far Trump would actually go,” one of the diplomats told Politico. “This time we’ve had time to prepare. Europe has changed a lot, and we will be ready to act.” Trump has previously said that as president, he may also introduce counter-measures against EU digital services taxes that implicitly target US technology leaders. “Our allies have taken advantage of us. More so than our enemies,” Trump said last week in an interview with Bloomberg News Editor-in-Chief John Micklethwait. “Our allies are the European Union. We have a trade deficit of $300 billion with the European Union.”

The EU is preparing a coordinated impact assessment of a potential Trump victory with the European Commission overseeing the process, and is determined to retaliate and “hit back hard,” one diplomat told Politico. According a second diplomat, the bloc is confident it can “win this trade war.” The EU should aggressively retaliate given that Trump uses trade and tariffs as a negotiating tactic to force countries to act in the interest of the US, the report said. At his rallies, Trump has vowed to impose a 10% baseline duty on imports from other countries. “To me, the most beautiful word in the dictionary is ‘tariffs’,” he said. “It’s my favorite word.” He also took aim at German car producers last week, pledging to slap high levies on imported cars. According to Trump, such duties targeting EU industry would force producers in the bloc to move their factories to the US, boosting its long-term global manufacturing position.

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”There is no growth in Germany, there is growth in other countries, and the tax situation is not particularly good either..”

Sharp Rise In Russia’s Share Of EU LNG Market (RT)

The share of Russian liquified natural gas (LNG) in the EU market has reached 20% this year, the bloc’s energy watchdog reported in a quarterly review released on Tuesday. In 2023, the share of Russian-sourced tanker-movable fuel was 14%, according to statistics cited by the Agency for the Cooperation of Energy Regulators (ACER). The shift came as supplies from Qatar, Nigeria, and minor suppliers declined. The US remains the biggest source of LNG, accounting for 45% of EU imports. The total flow as well as the EU’s share in the global LNG market have both shrunk this year. The bloc now accounts for 18% of all imports, down from 24% last year, the ACER report estimated. Roughly a third of all EU gas imports come in the form of LNG, with the rest being delivered via pipelines, according to the report.

Russian pipeline supplies grew from 7.9 billion cubic meters in Q3 of 2023 to 8.6 billion cubic meters this year. Commenting on the findings, Bloomberg said it highlighted challenges in implementing the EU’s policy of reducing reliance on Russian supplies. This summer, Brussels banned investment in LNG projects in Russia and targeted the transshipment of Russian gas by third nations with a port access ban. Qatar, a major natural gas producer, has been diverting shipments to Asian markets, in part due to the worsening security situation in the route through the Red Sea, Bloomberg said, explaining why its presence in the EU market has declined. The Yemeni-based Houthi rebels have been targeting commercial ships which they believe to be linked to Israel, in a campaign to pressure West Jerusalem to end its military action in Gaza.

The EU declared the intention wean itself off Russian supplies in its economy, particularly in the energy sector, following the outbreak of the Ukraine conflict in February 2022. Supplies of expensive US fuel have replaced much of the cheap pipeline gas that was previously delivered by Russia. The change contributed to a drop in the competitiveness of Western Europe, which was highlighted last week by an executive from German industrial giant Siemens. Speaking at a public hearing of the Bundestag’s Financial Committee, Christian Kaeser, the company’s head of global taxation, said it no longer invests at home due to the poor business climate. ”There is no growth in Germany, there is growth in other countries, and the tax situation is not particularly good either,” he stated.

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“..each one of them “treated pre-teen children who were shot in the head or chest on a regular or even a daily basis.”

Harris Denies Israel Is Committing Genocide in Gaza – Campaign (Antiwar)

Vice President Kamala Harris’s presidential campaign has clarified that she does not believe Israel is committing genocide in Gaza after an incident at a rally suggested that she did. At a campaign event at the University of Wisconsin-Milwaukee, a protester interrupted Harris and said she invested “billions of dollars in genocide” and pressed her about the massive child casualties in Gaza, repeatedly describing the Israeli onslaught as a genocide. Addressing the students, Harris said, “What he’s talking about, it’s real. That’s not the subject that I came to discuss today, but it’s real, and I respect his voice.”

A spokesperson for Harris’s campaign said Sunday that the comments made by the protester “don’t reflect the position of the Biden-Harris administration or the vice president’s stance.” The spokesperson added that Harris “didn’t agree with defining the war as a genocide, and she has not expressed such a stance in the past, as this is not her position.” The International Court of Justice (ICJ) has ruled that its “plausible” Israel is committing genocide against the Palestinian population of Gaza. There have been massive civilian casualties in the onslaught, and Israeli forces have purposely targeted children.

A group of 99 American healthcare workers who volunteered in Gaza said in an open letter to Harris and President Biden that each one of them “treated pre-teen children who were shot in the head or chest on a regular or even a daily basis.” The American healthcare workers also estimated that over 118,000 Palestinians had been killed in Gaza, or about 5% of the population. Despite the mass slaughter, the Biden administration maintains Israel is not committing genocide since that would mean US officials are supporting genocide. Harris also angered pro-Palestine groups over the weekend when discussing the situation in Gaza by labeling the October 7 Hamas attack on southern Israel the “most tragic” part of the conflict.

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This is good. And long.

Biblical Cruelty Took Power In Israel: “Mein Kampf In Reverse” (José Goulão)

The founding fallacy of Zionism has survived many decades since the establishment of the State while the continued colonization of Arab territories was developing, an illegal process only possible thanks to the tolerance and complicity of the UN, the United States and the countries involved in European integration: first in the territories allocated to the Arab population through the sharing agreement approved in 1948 by the United Nations; from 1967 and the so-called Six-Day War, in the Palestinian regions of Gaza, the West Bank and East Jerusalem occupied at that time, allowing the installation of settlements in vast areas stolen by the Zionist regime from the original population. They are now home to almost 700,000 fanatical fundamentalist Jews from all over the world, the overwhelming majority without any ethnic roots in Palestine.

This brutal and massive demographic violence, always with the character of ethnic cleansing, as it was written, mortally wounded the fallacy of secular Zionism. Real, fascist, fiercely racist and segregationist Zionism, which has the expulsion of all Palestinians on the horizon, has taken power over the most recent decades and intends to remain there eternally “by the will of God”, respected and fulfilled through “prophets ” self-taught and terrorists who consider themselves mandated by him to guarantee their vigilante role on Earth by applying the terrifying mythology of the Old Testament to the letter. Netanyahu is just another leader in this process of transforming the character of the State, even though the role of head of government played almost exclusively over the last 30 years has given him a natural prominence, although overestimated in relation to his real weight in the fundamentalist environment.

He inherited the mission from his father, Benzion Netanyahu, in turn personal secretary and one of the main ideological disciples of Volodymir Jabotinsky, the Ukrainian who was a collaborator of Mussolini and in 1925 had caused the great schism between the secular Zionism opportunistically proclaimed at birth and that designated “ revisionist Zionism” founded by him. This variant of extremist colonialism under “Hebrew” cover inspires the political-religious fanaticism that prevails in the current government and aims to create a theocracy – the primacy of the “Law of God”. Maintaining, of course, the mission of defending Western civilization in the Middle East. It is no small matter that this fanatical tendency has enormous representation within the World Jewish Congress and is supported without practical restrictions by the United States regime and the non-democratic bodies that define European Union policies.

Ehud Barak, one of the most experienced Israeli politicians, prime minister of a government at the beginning of the century that practiced a savage repression of the so-called Second Palestinian Intifada and was the last head of the Labor Party as an influential political organization, has a relevant opinion about the ongoing events. “Under the cover of war,” he says, “a governmental and constitutional coup is taking place without a shot being fired; If the coup is not stopped it will turn Israel into a dictatorship within weeks – Netanyahu and his government are murdering democracy.” The path proposed by the now “centrist” leader is to “close the country through large-scale civil disobedience 24 hours a day, seven days a week”.

A much more incisive and advanced opinion, and also alarming, comes from General Moshe Yalon, former Chief of Staff of the Armed Forces and former Minister of Defense: “An angry, eschatological cult is laying down the law in Tel Aviv, the headquarters of the genocidal and colonial construction of the settler community; This process is completed with a huge vigilante militia, or interconnected militias of hundreds of thousands of colonists armed to the teeth, uncontrollable and prepared for anything, even attacking the military and the State.” A “former Mossad director” quoted by the newspaper “Haaretz” even questions the future of the so-called “Jewish State” saying that if it takes the form of “a racist and violent State it will not be able to survive; and it’s probably already too late.”

When following the globalist media network, it will be said that the current Israeli government is made up only of Prime Minister Netanyahu and the Minister of Finance, Bezalel Smotrich, and the Minister of Security, Itamar Ben-Gvir, these two benevolently considered as “ far-right” when, in practice, they are nothing more than Nazi terrorists. Smotrich is a settler head of the National Religious Party who denies the existence of the Palestinian people, “composed of sub-humans”. On his record he has several accusations of terrorist attacks, including against Zionist authorities.

Itamar Ben-Gvir is the son of an Iraqi Kurdish Jew who was part of the terrorist group Irgun, a founding branch of the Israeli army born in the ranks of Mussolini and historically led by former prime minister Menahem Begin. He heads the Otzmar Yehdiut organization, equally “extreme right” and heir to the banned Kach movement of the fascist icon Meir Kahane, an American terrorist born in New York, where he committed several attacks for which he was sentenced to one year in prison, which he served in a hotel. He then settled in Israel to fight for the expulsion of all Palestinians from Palestine, was arrested at least 60 times for terrorist attacks and was elected a member of the Knesset (Parliament).

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Bike lock
https://twitter.com/i/status/1848688384392171691

 

 

Baby dog

 

 

Kiss
https://twitter.com/i/status/1848765037688557721

 

 

Pineapple
https://twitter.com/i/status/1848612938208215460

 

 

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Oct 252019
 
 October 25, 2019  Posted by at 9:37 am Finance Tagged with: , , , , , , , , , ,  20 Responses »


Ivan Shishkin The wilds 1881

 

Justice Dept. To Launch Criminal Investigation Into Its Own Russia Probe (Hill)
Trump Cancels All Admins’ NYT, WaPo Subscriptions (ZH)
EU Set To Put Brexit Delay On Hold After Johnson’s Ultimatum (G.)
Russian Gun Activist Maria Butina To Touch Down In Moscow Saturday (RT)
Despite Ultra-Low Mortgage Rates, New House Prices At Multi-Year Low (WS)
Vladimir Putin, Syria’s Pacifier-in-Chief (Escobar)
WikiLeaks Releases New Docs Questioning Syria Chemical Attack Narrative (ZH)
Indonesia’s Report On Lion Air 737 MAX Crash Faults Design, Certification (R.)
South Korea Grounds Nine Boeing 737 NG Planes With Cracks (R.)
Can The US Beat China In A “Trade War”? (Vltchek)
Johannesburg Shuts Down Computers City-Wide After Bitcoin Ransomware Attack (CCN)

 

 

It’s a probe of the Mueller probe. The MSM will do what they can to ridicule it, saying it’s for political reasosns only. But the Mueller probe wasn’t? At least they haven’t dared attack Durham yet, or his reputation.

Justice Dept. To Launch Criminal Investigation Into Its Own Russia Probe (Hill)

The Justice Department has reportedly opened a criminal investigation into its own Russia probe The New York Times reports. The newspaper reports that after former special counsel Robert Mueller closed the official investigation months ago, a new criminal inquiry will proceed to find out how the investigation of Russian interference into the 2016 presidential election and Trump’s alleged collusion with Russia “all began.” Attorney General William Barr has closely reviewed how the department handled the Russia investigation.

But shifting the administrative review to a criminal inquiry would allow the prosecutor presiding over the inquiry, John H. Durham, to subpoena for witness testimony and documents, people familiar with the matter told the Times. It would also enable Durham, a U.S. attorney appointed by Barr to lead the inquiry, to put together a grand jury and to file charges. When defined as an administrative review, Durham could only voluntarily interview witnesses and investigate government documents, according to the Times.

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Yes, this made me laugh.

Trump Cancels All Admins’ NYT, WaPo Subscriptions (ZH)

In what we are sure will be “hair-on-fire” screamed about as ‘tyrannical-book-burning’, President Trump has reportedly planning to instruct federal agencies to not renew their subscriptions to the New York Times and the Washington Post. As The Wall Street Journal reports, White House press secretary Stephanie Grisham said in an email Thursday: “Not renewing subscriptions across all federal agencies will be a significant cost saving – hundreds of thousands of taxpayer dollars will be saved.” The decision comes days after the president cancelled the White House’s print subscriptions to the Post and the Times after expressing frustration with their coverage.


“We don’t even want it in the White House anymore,” Mr. Trump said of the Times during an interview with Fox News host Sean Hannity that aired Monday night. “We’re going to probably terminate that and the Washington Post. They’re fake.” Additionally, The Journal reports that a White House official confirmed that print editions of the Times and the Post weren’t among the newspapers delivered to the White House on Thursday. And while liberals use “fact checkers” to force advertisers to boycott “right wing” websites/newspapers, President Trump’s response is even cleaner: “your subscription has been terminated.”

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Corbyn insists Boris must take No-Deal off the table.

EU Set To Put Brexit Delay On Hold After Johnson’s Ultimatum (G.)

The EU’s plan to offer the UK an extension until 31 January on Friday is expected to be put on hold after Boris Johnson threatened to pull the Brexit deal if Jeremy Corbyn rejects a general election. Sources said the dramatic developments in Westminster needed to be fully understood and the choreography in Brussels could change. Donald Tusk, the European council chairman, had been expected to announce on Friday morning, following a meeting with ambassadors, that the EU27 had accepted the delay requested in a letter reluctantly sent by Johnson last Saturday. But senior EU sources said the developments in London had left the situation in flux. An announcement is expected on Monday or Tuesday.

Suggestions that the Labour leader could reject Johnson’s demand for a general election on 12 December provoking the prime minister to pull his deal set alarm bells ringing. Sources said the French government wanted to see the outcome of the vote on a general election before making a decision, but that the other 26 member states were ready to grant the three-month extension. The final offer could differ from the extension requested in the Benn act by specifying that the UK could leave on 15 November if the deal was ratified in the UK and European parliament. Before Johnson’s ultimatum to the Labour leader, the EU looked set to offer a three-month extension, which could be cut short at the point at which the Brexit deal was ratified.

It remains the most likely outcome. “We don’t want to be dragged into British politics and this is what was requested,” said one senior EU diplomat. “They can leave earlier if they ratify the deal. To echo your prime minister, we just want Brexit done.”

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Bless her. Casualty of Russophobia.

Russian Gun Activist Maria Butina To Touch Down In Moscow Saturday (RT)

Maria Butina is finally coming back home, after spending over a year behind bars in a bizarre case of anti-Russian hysteria that saw the gun rights activist libeled in the media and locked up as “unregistered foreign agent.” She is expected to leave a federal prison in Tallahassee, Florida and would be transferred from to a migrant center in Miami on Friday, Russian ambassador in Washington, Anatoly Antonov confirmed, saying The same day Butina would board the plane to Moscow and is set to touch down in the Russian capital on Saturday morning.


Butina was sentenced by a US federal judge for 18 months in April after pleading guilty to conspiring to act as a foreign agent without registration, Antonov said that he hopes Butina’s belated homecoming would “put an end to the most difficult period in her life,” and wished the 30-year-old reunite with her family and loved ones as soon as possible after her ordeal is over.

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A broken market. The Fed broke it.

Despite Ultra-Low Mortgage Rates, New House Prices At Multi-Year Low (WS)

The median price of new single-family houses in September fell 8.8% from a year ago to $299,400 – down 12.8% from the peak in November and December 2017 and back where the median price had first been in November 2014, according to the Commerce Department this morning: “Median price” means half of the houses sold for more, and half sold for less. The decline in the median price does not include incentives that are thrown in by homebuilders to close deals, such as free granite counter tops.

This median-price data – produced jointly by the Census Bureau and the Department of Housing and Urban Development – is “volatile” on a month-to-month basis. To show the longer-term trend, I added the 12-month moving average, which eliminates the monthly ups and downs. The September data point, being the average of the past 12 months, lags months behind of today’s market, but it allows for longer-term trends to become clearer. The lag of the 12-month moving average (red line) shows up in how, on the way up, median prices were mostly above the red line, and now on the way down, median prices are mostly below it:

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Let’s see what develops. Bit early to draw grand conclusions.

Vladimir Putin, Syria’s Pacifier-in-Chief (Escobar)

Russia-Turkey deal establishes ‘safe zone’ along Turkish border and there will be joint Russia-Turkey military patrols The negotiations in Sochi were long – over six hours – tense and tough. Two leaders in a room with their interpreters and several senior Turkish ministers close by if advice was needed. The stakes were immense: a road map to pacify northeast Syria, finally. The press conference afterwards was somewhat awkward – riffing on generalities. But there’s no question that in the end Russian President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdogan managed the near impossible.

The Russia-Turkey deal establishes a safe zone along the Syrian-Turkish border – something Erdogan had been gunning for since 2014. There will be joint Russia-Turkey military patrols. The Kurdish YPG (People’s Protection Units), part of the rebranded, US-aligned Syrian Democratic Forces, will need to retreat and even disband, especially in the stretch between Tal Abyad and Ras al-Ayn, and they will have to abandon their much-cherished urban areas such as Kobane and Manbij. The Syrian Arab Army will be back in the whole northeast. And Syrian territorial integrity – a Putin imperative – will be preserved.

This is a Syria-Russia-Turkey win-win-win – and, inevitably, the end of a separatist-controlled Syrian Kurdistan. Significantly, Erdogan’s spokesman Fahrettin Altun stressed Syria’s “territorial integrity” and “political unity.” That kind of rhetoric from Ankara was unheard of until quite recently. Putin immediately called Syrian President Bashar al Assad to detail the key points of the memorandum of understanding. Kremlin spokesman Dmitry Peskov once again stressed Putin’s main goal – Syrian territorial integrity – and the very hard work ahead to form a Syrian Constitutional Committee for the legal path towards a still-elusive political settlement.

[..] For all the cliffhangers in Sochi, there was not a peep about an absolutely key element: who’s in control of Syria’s oilfields, especially after President Trump’s now-notorious tweet stating, “the US has secured the oil.” No one knows which oil. If he meant Syrian oil, that would be against international law. Not to mention Washington has no mandate – from the UN or anyone else – to occupy Syrian territory.

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Just as the US donates millions more to the White Helmets. OPCW should be dismantled.

WikiLeaks Releases New Docs Questioning Syria Chemical Attack Narrative (ZH)

A whistleblower with the Organization for the Prohibition of Chemical Weapons (OPCW), responsible for conducting an independent investigation into the alleged chemical attack in the Syrian town of Douma on April 7, 2018, has presented WikiLeaks with a body of evidence suggesting the chemical weapons watchdog agency manipulated and suppressed evidence. A prior official OPCW report of the investigation issued last March found “reasonable grounds” for believing a toxic chemical was used against civilians, likely chlorine. Long prior to any independent investigators reaching the site, however, Washington had launched major tomahawk airstrikes against Damascus in retribution for “Assad gassing his own people”.

]WikiLeaks published documents based on evidence presented by the internal OPCW whistleblower to an expert review panel on Wednesday. “The panel was presented with evidence that casts doubt on the integrity of the OPCW,” WikiLeaks editor Kristinn Hrafnsson wrote. An official WikiLeaks press release said as follows: “Kristinn Hrafnsson took part in the panel to review the testimony and documents from the OPCW whistleblower. He says: “The panel was presented with evidence that casts doubt on the integrity of the OPCW. Although the whistleblower was not ready to step forward and/or present documents to the public, WikiLeaks believes it is now of utmost interest for the public to see everything that was collected by the Fact Finding Mission on Douma and all scientific reports written in relation to the investigation.”

“Based on the whistleblower’s extensive presentation, including internal emails, text exchanges and suppressed draft reports, we are unanimous in expressing our alarm over unacceptable practices in the investigation of the alleged chemical attack in Douma,” the experts pointed out.

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An aditional report comes out today from a US transportation board. Boeing’s reply: we’re updating the software…

Indonesia’s Report On Lion Air 737 MAX Crash Faults Design, Certification (R.)

Indonesia has called for better Boeing cockpit systems and oversight by US regulators after design flaws helped bring down a Lion Air 737 MAX jet – a crash that was compounded by errors from ground staff and crew. In its final report into the crash of the jet on Oct 29, 2018 that killed all 189 people on board, Indonesia made recommendations to Boeing, Lion Air, the US Federal Aviation Administration (FAA) and other agencies. A copy was seen by Reuters and it is due to be released publicly later on Friday.


Less than five months after the Lion Air accident, an Ethiopian Airlines 737 MAX crashed, leading to a global grounding of the model and a growing crisis for the world’s biggest planemaker, which has just ousted the top executive of its commercial airplanes division. In the report, Indonesian regulators criticised the design of the anti-stall system known as MCAS, which automatically pushed the plane’s nose down, leaving pilots fighting for control. During the flight, the control column was in such disarray that it required 103 pounds of strength to counter the automated system. “The design and certification of the MCAS did not adequately consider the likelihood of loss of control of the aircraft,” the report said.

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It’s company wide.

South Korea Grounds Nine Boeing 737 NG Planes With Cracks (R.)

South Korea’s transport ministry on Friday said nine Boeing 737 NG planes in the country had been grounded after checks found structural cracks requiring repairs. The suspension follows an order from the U.S. Federal Aviation Administration earlier this month for aircraft operators to inspect older Boeing 737 NGs for structural cracks. Boeing on Oct. 11 said inspections of 810 of the planes globally had led to 38 requiring repair. South Korea said it found nine planes with cracks among 42 planes examined. Among the nine grounded planes are five operated by Korean Air Lines, according to the transport ministry.

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It is possible to sing the praises of China too much.

Can The US Beat China In A “Trade War”? (Vltchek)

There are now many new systems, in numerous corners of the world. These systems, some Communist, others socialist or even populist, are ready to defend their citizens, and to use the natural resources to feed the people, and to educate, house and cure them. No matter how popular these systems are at home, the West finds ways to demonize them, using its well-established propaganda machinery. First, to smear them and then, if they resist, to directly liquidate them. As before, during the colonial era, no competition has been permitted. Disobedience is punishable by death.

Naturally, the Western system has not been built on excellence, hard work and creativity, only. It was constructed on fear, oppression and brutal force. For centuries, it has clearly been a monopoly. Only the toughest countries, like Russia, China, Iran, North Korea or Cuba, have managed to survive, defending they own cultures, and advancing their philosophies. To the West, China has proved to be an extremely tough adversary. With its political, economic, and social system, it has managed to construct a forward-looking, optimistic and extraordinarily productive society. Its scientific research is now second to none. Its culture is thriving. Together with its closest ally, Russia, China excels in many essential fields.

That is precisely what irks, even horrifies the West. For decades and centuries, Europe and the United States have not been ready to tolerate any major country, which would set up its own set of rules and goals. China refuses to accept the diktat from abroad. It now appears to be self-sufficient, ideologically, politically, economically and intellectually. Where it is not fully self-sufficient, it can rely on its friends and allies. Those allies are, increasingly, located outside the Western sphere.

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“The group is demanding 4 Bitcoin..”

Johannesburg Shuts Down Computers City-Wide After Bitcoin Ransomware Attack (CCN)

Hackers have breached the computer network of South Africa’s commercial capital Johannesburg in an attempt to ransom the city for Bitcoin. Consequently, the city has shut down its website and suspended all e-services as a ‘precautionary measure’. At the time of writing the city’s website was still inaccessible. Per The Times, the group behind the cyber-attack is an outfit known as Shadow Kill Hackers. The group is demanding 4 Bitcoin – nearly $30,000 at the current Bitcoin price – by the close of business on October 28. In their ransom note received by several employees of the city, Shadow Kill Hackers claimed to have obtained valuable and confidential data from the city:


“All your servers and data have been hacked. We have dozens of back doors inside your city. We have control of everything in your city. We also compromised all passwords and sensitive data such as finance and personal population information.” Failure to pay the Bitcoin ransom, the hackers have warned, will see the sensitive data released publicly. Some of the e-services that will be affected by the shutdown include online billing services. Internet-based customer care services have also been suspended. An investigation into the Bitcoin ransomware attack has already been launched and is expected to take 24 hours.

Read more …

 

 

 

 

 

Sep 092019
 
 September 9, 2019  Posted by at 9:48 am Finance Tagged with: , , , , , , , , ,  4 Responses »


Pablo Picasso Portrait of Maya 1939

 

 

To everyone used to receiving Automatic Earth posts in their email, I’m sorry but since Saturday they’re suddenly bouncing again en masse. This makes me very tired by now, but I’ll look for a solution. I suspect there may be a connection between this and Google accusing me of violating their rules, without telling me what rules I’m supposed to have violated.

 

 

 

Brexit Heading For Dramatic Supreme Court Showdown (Ind.)
Boris Johnson ‘Sabotage’ Letter To EU ‘Would Break Law’ (G>)
Johnson Has Reneged On Good Friday Agreement Vows, Says EU (G.)
EU’s Ex-Legal Chief Says Johnson’s Plan To ‘Shut Down EU’ Will Fail (Ind.)
China’s Exports To US Fell 16% In August As Trump Escalates Trade War (CNBC)
Air China Denies Plans To Take Over Cathay Pacific (R.)
Nearly All British Airways Flights Canceled As Pilots Go On Strike (CNN)
States Expected To Target Google In New Antitrust Probe (AP)
Yanis Varoufakis’ Close-Up (K.)
Australia Launches Emergency Relocation Of Fish (G.)

 

 

Really, what is not to like about the Brexit comedy? it’s the British doing what they do best. Parliament will vote for a law that forces Boris to send a letter to Brussels asking for an extension to Article 50, and he plans to send a second letter saying he doesn’t want that extension.

Anyway, Supreme Court it always would be. But can that court tell parliamentarians or a prime minster what to do, or are they above the court in legal standing, as a lower court suggested last week? Too late to get a constitution now. But not too late to make this much more chaotic still.

There is even a plan for the UK to shut down the EU.

Brexit Heading For Dramatic Supreme Court Showdown (Ind.)

The battle for Brexit is heading for a nailbiting showdown in the Supreme Court in late October – when the deadline for crashing out of the EU will be just days away – after Boris Johnson’s new strategy was revealed. Ministers plan to manufacture a legal fight to avoid directly breaking the law when compelled to ask for a further Article 50 extension, while also sidestepping the requirement to comply with it. The “plan B” paves the way for an unprecedented constitutional crisis after parliament’s deadline for seeking a Brexit delay passes on 19 October – with the threat of the prime minister being jailed for contempt of court. With the deadline for crashing out on 31 October, it will be a race against time to force Mr Johnson to Brussels before Halloween, or to bring him down in a vote of no confidence and send a replacement.

Labour condemned the strategy as behaving like “every tinpot dictator on the planet throughout history” – demanding that Mr Johnson obey the “duty” imposed by parliament. No10 is also reported to be considering sending a letter to the EU requesting a Brexit extension, in order to meet the conditions passed by MPs last week, but then immediately sending another saying the government does not actually want a delay. Legal experts, including former attorney general Lord Falconer, warned that this would still breach the law. If Mr Johnson disregards some or all of the bill’s requirements – which is set to receive royal assent on Monday – this could lead to an emergency judicial review in the courts by MPs.

The unprecedented case would start in the High Court and the expectation is that it would very quickly move to the Supreme Court, almost certainly before 31 October. And it triggered an extraordinary warning from the justice secretary, Robert Buckland, to obey “the rule of law”, as he denied he was poised to follow Amber Rudd by resigning.

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“..he risked the resignation of the justice secretary, the attorney general, and other members of his cabinet…”

Boris Johnson ‘Sabotage’ Letter To EU ‘Would Break Law’ (G>)

A former supreme court justice has said Boris Johnson would be in contempt of court if he applied for article 50 extension while simultaneously trying to get the EU to reject it. Reports in the Daily Telegraph suggested that the prime minister has drawn up plans to “sabotage” parliament’s efforts to force through a Brexit extension to prevent the UK leaving the bloc without a deal. He is said to be considering sending an accompanying letter to the EU alongside the request to extend article 50, which would say the government does not want any delay to Brexit. Lord Sumption, a former supreme court justice, said it would not be legal for the prime minister to ask for an extension while rubbishing the request at the same time.


He told BBC Radio 4’s Today programme: “The bill or the act as its about to become says that he’s got to apply for an extension. Not only has he got to send the letter, he’s got to apply for an extension. And to send the letter and then try and neutralise it seems to me to be plainly a breach of the act.” A Downing Street source said: “We intend to sabotage any extension. The ‘surrender bill’ only kicks in if an extension is offered. Once people realise our plans, there is a good chance we won’t be offered a delay. Even if we are, we intend to sabotage that too.” Sumption said he had read the bill and there was not “the slightest obscurity” about what the government was obliged to do. [..] Sumption said Johnson would not only be in contempt of court if he failed to do what the bill states, he risked the resignation of the justice secretary, the attorney general, and other members of his cabinet.

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“This avoidance of the hard border, it is not just a desire, it is not just about preferences, it is legal obligation.”

Johnson Has Reneged On Good Friday Agreement Vows, Says EU (G.)

European officials have accused Boris Johnson of reneging on pledges to uphold the Good Friday agreement, ahead of the prime minister’s first meeting with his Irish counterpart. Johnson will meet the Irish taoiseach, Leo Varadkar, in Dublin on Monday at a tumultuous moment in the Brexit process, with only 52 days until the UK’s departure. Talks are set to be tense as fears grow in Dublin and Brussels that the British prime minister is backsliding on promises to protect the tightly knit economic and social links on the island of Ireland. “The commitment to all aspects and all the provisions of the letter and spirit of the Good Friday agreement recently seems to be taken more lightly than before,” a senior diplomat from a continental member state told the Guardian.

“This avoidance of the hard border, it is not just a desire, it is not just about preferences, it is legal obligation.” A senior official working for the EU’s chief negotiator, Michel Barnier, told diplomats this week that the UK had reneged on commitments to protect north-south co-operation on the island of Ireland, a key pillar of the Good Friday agreement. Alarm bells were set off by Johnson’s recent letter to the European council president, Donald Tusk, which declared his government could not endorse a commitment made by Theresa May in a December 2017 EU-UK joint report. The Brexit secretary, Stephen Barclay, fuelled concerns that the government was seeking to back out of past commitments, when he tweeted that the government was “committed to no infrastructure on the NI border”.

Such comments were seen in Brussels as “meaningless” words that marked a significant dilution of the promise to uphold an open border. The May government pledged to protect “north-south cooperation” on the island of Ireland in the 2017 joint report, widely seen in Brussels as a landmark in Brexit talks.

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Something tells me Dominic Cummings will have more before this is over.

EU’s Ex-Legal Chief Says Johnson’s Plan To ‘Shut Down EU’ Will Fail (Ind.)

Brussels’ former top law officer has rubbished Boris Johnson’s extraordinary plan to sabotage the EU and make it ‘no longer legal’, arguing it makes no sense. Downing Street has threatened to render the bloc no longer “legally constituted”, paralysing its decision making, to force EU leaders to cave in to the UK’s demands. But Jean-Claude Piris, formerly the director-general of the EU Council’s legal service, said the idea – refusing to appoint a new commissioner – would fail to shut down the EU, as No 10 hoped. “The Commission can continue to work and decide legally,” Mr Piris wrote on Twitter, citing a precedent dating back to 1999. Instead, he said: “The UK will be brought to the EUCJ [the European Court of Justice] for violation of its obligation.”


Richard Corbett, the leader of Labour’s bloc of Euro-MPs, echoed the criticism, tweeting: “Nonsense idea that Johnson could paralyse EU to force it to expel UK. “If he refuses to nominate a Commissioner, the UK would be in breach of the treaty – that being so, EU Commission not at fault and can operate legally.” In a dramatic escalation of its battle with Brussels, No 10 believes it can put the EU in breach of its own legal duty for all 28 member states to be represented on its executive branch. The UK would be “disrupting” Brussels life to such a degree that member states will then make it clear they will refuse to grant an Article 50 extension – even if asked for – it hopes. A source told The Independent: “We will turn the pressure onto the EU to show how difficult it will be for them if the UK is still hanging around.”

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That’s a lot.

China’s Exports To US Fell 16% In August As Trump Escalates Trade War (CNBC)

China’s exports unexpectedly fell in August as shipments to the United States slowed sharply, pointing to further weakness in the world’s second-largest economy and underlining a pressing need for more stimulus as the Sino-U.S. trade war escalates. Beijing is widely expected to announce more support measures in coming weeks to avert the risk of a sharper economic slowdown as the United States ratchets up trade pressure, including the first cuts in some key lending rates in four years. On Friday, the central bank cut banks’ reserve requirements for a seventh time since early 2018 to free up more funds for lending, days after a cabinet meeting signalled that more policy loosening may be imminent.


August exports fell 1% from a year earlier, the biggest fall since June, when it fell 1.3%, customs data showed on Sunday. Analysts had expected a 2.0% rise in a Reuters poll after July’s 3.3% gain. That’s despite analyst expectations that a falling yuan would offset some cost pressure and looming tariffs may have prompted some Chinese exporters to bring forward or “front-load” U.S.-bound shipments into August, a trend seen earlier in the trade dispute. China let its currency slide past the key 7 per dollar level in August for the first time since the global financial crisis, and Washington labelled it a currency manipulator.

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“..the biggest corporate casualty of anti-government protests after China demanded it suspend staff involved in, or who support, demonstrations..”

Air China Denies Plans To Take Over Cathay Pacific (R.)

Air China has no plans to take over Hong Kong’s Cathay Pacific Airways, an independent director of the state-owned Chinese carrier told the South China Morning Post newspaper. “Based on what I know, I wouldn’t think that is anywhere on the agenda, no way,” Air China non-executive director Stanley Hui told the newspaper when asked if the carrier, a 30% shareholder, might seek to buy Cathay outright. The Hong Kong airline has become the biggest corporate casualty of anti-government protests after China demanded it suspend staff involved in, or who support, demonstrations that have plunged the former British colony into a political crisis.


Cathay Chairman John Slosar last week announced plans to step down in November, less than three weeks after CEO Rupert Hogg left amid mounting regulatory scrutiny. Air China is Cathay’s second-largest shareholder, behind manager Swire Pacific with a 45% stake. Long-time Swire executive Patrick Healy was last week appointed as Slosar’s replacement.

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No flights tomorrow either. Big airline.

Nearly All British Airways Flights Canceled As Pilots Go On Strike (CNN)

British Airways says it was forced to cancel “nearly 100 per cent” of flights for Monday and Tuesday after the British pilots union went ahead with a strike. The strike was called for by the British Airline Pilots Association (BALPA) amid a heated dispute over pay with the airline. BALPA said Sunday on Twitter that it put forward a proposal to the carrier’s management Wednesday, but had yet to receive a reply. British Airways said in a statement posted Monday it remains “ready and willing to return to talks with BALPA.”


The airline said it was forced to cancel so many flights because “with no detail from BALPA on which pilots would strike, we had no way of predicting how many would come to work or which aircraft they are qualified to fly.” Customers who had flights booked for Monday and Tuesday will likely “not be able to travel as planned,” British Airways said. The airline also advised customers not to go to the airport. Members of the pilots union voted 93% in favor of a strike in July. BALPA said last week that it would be willing to call it off if British Airways returned to the negotiating table. According to its website, BALPA represents more than 10,000 pilots in the United Kingdom — more than 85% of all commercial pilots who fly there.

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And Facebook in a different probe. But Google is CIA.

States Expected To Target Google In New Antitrust Probe (AP)

A group of states led by Texas is expected to announce an investigation into Google on Monday to examine whether the Silicon Valley tech giant has gotten too big and effective at stomping or acquiring rivals. The probe is the latest blow against big tech companies as antitrust investigations ramp up in the U.S. and around the world. A separate group of states announced an investigation into Facebook’s dominance on Friday. The Department of Justice , the Federal Trade Commission and Congress are also conducting probes.


Texas Attorney General Ken Paxton has said only that the investigation will look at “whether large tech companies have engaged in anticompetitive behavior that stifled competition, restricted access, and harmed consumers.” Reports in The Washington Post and The Wall Street Journal say Google will be the primary target. Google expects state attorneys general will ask it about past similar investigations in the U.S. and internationally, senior vice president of global affairs Kent Walker wrote in a blog post Friday . Google’s parent company, Alphabet, has a market value of more than $820 billion and controls so many aspects of the internet that it’s hard to imagine surfing the web for long without running into at least one of its services. Experts believe the antitrust probe could focus on at least one of three aspects of Google’s business that have caught regulators’ eyes.

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Background: renowned Greek film director Costa-Gravas has made a movie based on Varoufakis’ book “Adults in the Room,” which recounts Yanis’ dealings with the EU. It was presented at the Venice film festival this week. Well, the Greek press still doesn’t like him (but they dare not ignore Costa-Gavras either). And because of the structure of the press, neither do many Greeks. But they make it about how Yanis presents himself, and sure, maybe it’s too much about him at times. But really, it should be about his ideas, about substance. Unfortunately, those ideas go above their paygrade and understanding. So appearance it is then…

Yanis Varoufakis’ Close-Up (K.)

The term “narcissist,” which has become almost a permanent fixture in any description of Yanis Varoufakis – in tones ranging from the deliberate and angry to the lighthearted and playful, sometimes to the point of absolving him of his sins – is inadequate. A man who writes a book while simultaneously envisioning himself as a big-screen hero does not simply fall into the category of garden-variety delusions of stardom because his actions are rife with intent. Viewing reality through the realm of fiction neither clears nor burdens an official of complicity with regard to how he managed the country’s economic affairs and the stance he adopted more generally, and especially when this concerns an exceptionally crucial period.


Walking down the red carpet does not instantly transform Varoufakis from a former finance minister (who is co-credited with a memorandum and capital controls) into a movie star. The Venice International Film Festival – the glamour, the camera flashes, the gowns – and the reviews of critics neither erase nor transfer political responsibility. The publicity shone on Greece as a result of Costa-Gavras’ film “Adults in the Room,” based on Varoufakis’ book of the same title, shifts the focus of the conversation from the intentions and rules according to which officials with institutional responsibilities ought to abide, to the rule-free realm of art. It takes it away from the need for political figures to answer for their actions and omissions, to the extremely capacious realm of film production and artistic creativity.

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Noah.

Australia Launches Emergency Relocation Of Fish (G.)

Faced with a looming ferocious summer with little rain forecast, the New South Wales government has embarked on a Noah’s Ark type operation to move native fish from the Lower Darling – part of Australia’s most significant river system – to safe havens before high temperatures return to the already stressed river basin. Researchers have warned of other alarming ecological signs that the Lower Darling River – part of the giant Murray-Darling Basin – is in a dire state, following last summer’s mass fish kills. Professor Fran Sheldon, from Griffith University’s Australian Rivers Institute, said only one surviving colony of river mussels had been found along the river and there were signs that river red gums were under severe stress.


“If the river red gums die, and some are hundreds of years old, there will be a domino effect. Banks will collapse, there will be massive erosion and it will send sediments down the river.” “These sort of ecological collapses are much harder and expensive to reverse,” she warned. The New South Wales government announced a $10m rescue package last week to mitigate the effects of the river crisis on native fish this summer. The NSW agriculture minister, Adam Marshall, said the unprecedented action would provide “a lifeline for key native species ahead of an expected summer of horror fish kills”. “We’re staring down the barrel of a potential fish Armageddon, which is why we’re wasting little time rolling out this unprecedented action,” Marshall said.

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Sep 062019
 


Claude Monet Éretrat sunset 1882-3

 

The Trade War Is Smart Geopolitics (NR)
China’s Growth Is Slowing, but not Because of the Trade War (PIIE)
The Ugly Truth About The Trade War (Alt-M)
Fed QE Unwind Continues Via Sharp Drop In MBS (WS)
Trump Administration Backs Privatizing Fannie Mae And Freddie Mac (MW)
Is Armed Conflict Possible in Today’s Europe? (Spiegel)
Boris Johnson: I’d Rather Be Dead In a Ditch Than Delay Brexit (BBC)
Hong Kong Braces For More Protests As Merkel Calls For Peaceful Solution (R.)
The Pentagon Wants More Control Over the News. What Could Go Wrong? (Taibbi)
Germany Announces Plan to Ban Glyphosate (CD)
Targeting the Tongass National Forest for Amazon-like Destruction (CP)
They Want Him Dead As A Warning (Maurizi)

 

 

A bunch of views on the trade war. I’d say take your pick. Something for everyone.

The Trade War Is Smart Geopolitics (NR)

Why is our industrial supply chain located inside of an adversary? Why does our military readiness therefore depend on that adversary? Why are American companies allowed to transfer critical technologies to China in exchange for short-term market access? Why can Tesla build self-driving cars in Shanghai? Why can Google run an AI lab in Beijing after canceling an AI contract with the Pentagon? The free traders have an answer: because the market wills it. But of course, markets have no reason to prefer one global power over another, and there’s no market rule barring a surveillance state from winning the competition. In that competition, our ideological commitment to free trade is nearly as great a handicap as the Soviet Union’s commitment to central planning was during the Cold War.

Free trade with China means allowing its distortions into our market. Refusing to allow our government to “pick winners” by rejecting industrial-policy support to key sectors means that Beijing will pick winners for us. Depending on Ricardian comparative advantage to organize supply chains means, in effect, that we will watch helplessly as American innovations are transformed into growth-boosting industries elsewhere, as firms reap efficiency gains by locating their engineering and management operations next to their manufacturing. Inevitably, the innovation will depart too. A recent survey of 369 manufacturers found that American firms are moving their R&D operations to China not just to take advantage of lower costs, but to be in close proximity to their supply chains.

Some 50 percent of foreign R&D centers in China are now run by American companies, helping China achieve first place in market share for manufacturing R&D. If we remain neutral as to where supply chains are located, “we innovate, they build” will become “they innovate, they build.” China’s rise may be inevitable. But given the danger represented by that rise, America can choose to minimize its risk. It can reduce opportunities for China to erode the long-term competitive advantage of American firms through forced technology transfer and R&D migration, and reduce our dependence on Chinese manufacturing for crucial industrial and military supply chains. In a word: decoupling.

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China’s problem is the dollar. It’s not dependent on the US for its GDP, but that is a problem in itself. If exports to the US were larger, it would receive more dollars.

China’s Growth Is Slowing, but not Because of the Trade War (PIIE)

First, as is well known, US taxpayers, not Chinese consumers and companies, are bearing the burden of Trump’s tariffs. The president acknowledged as much when he postponed new tariffs on goods (such as toys and consumer electronics) likely to be purchased during the US holiday shopping season. US tariffs on imports from China will likely subtract about half a percentage point from US GDP growth in 2019.

But second, China’s growth began to slow long before the trade war started (see figure). The pace of growth has moderated from the double-digit pace of 2010 to only 6.2 percent in the most recent quarter. As for the assertion that the trade war has accelerated China’s economic decline, the facts show the opposite. As shown in the figure, the pace of the slowdown has moderated since the initial imposition of tariffs by the United States in July 2018. Most of the slowdown is the result of President Xi Jinping’s ill-advised policy choice of allocating credit and other resources to less efficient state firms rather than private firms. Moreover, since 2017, China has reduced the growth of credit overall in order to reduce financial risk at a time of growing corporate indebtedness, a trend that also contributes to slowing growth throughout the economy.

Third, properly measured, China’s dependence on exports to the United States is not as large as some, including President Trump, may think. China’s exports to the United States before tariffs were imposed ran at $500 billion annually, or 4 percent of its $12.25 trillion GDP, which in theory is a significant number. In fact, the percentage is far less. The potential impact of US tariffs on China’s growth needs to be adjusted to measure only value added by China. GDP is measured in value-added terms; US imports from China are measured in gross sales. The value-added share in US imports from China is about one-half, so the direct contribution to China’s GDP from its sales to the United States is approximately $250 billion or only 2 percent of China’s GDP.

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Brandon Smith doesn’t appear to fully agree with PIIE.

The Ugly Truth About The Trade War (Alt-M)

The US only comprises around 18% of Chinese exports. While this is a nice piece of the pie, it’s hardly enough leverage to bring down China’s economy. China would suffer profit losses in certain sectors as well as a recession, but not the kind of crisis that some in the alternative media are predicting. Around 40% of China’s GDP is generated domestically, and 80% of its GDP growth comes from private consumption. For quite some time I have warned that China was shifting its economic model from an export based system to a more self reliant domestic based system, and that this might be an indication of a coming economic war with the US. As it turns out, this is exactly what has happened. Since 2010, China’s domestic market has grown dramatically, indicating that China has no intention of relying on the US consumer as an economic pillar.

The US consumer is almost tapped out. While retail sales in certain areas remain steady and this has been used by the mainstream media and the Fed to promote the idea that the economy is still “going strong”, this is not the big picture. The reality is that US consumption is driven by historic levels of debt. Household debt is now FAR above levels last seen after the last financial crisis, with total debt at $1.2 trillion higher today than its last peak in 2008. The downturn in retail is more obvious in the steady closings of thousands of outlets in 2019 alone. This year has seen a 29% increase in store closings compared to 2018, even though 2018 saw a considerable spike in store shutdowns. Around 12,000 stores are slated to close this year.

So the question is, with the US consumer stretched thin by debt and US retail on the verge of a recessionary plunge, why would China feel threatened by the loss of the American consumer market? They are losing it already by attrition. The truth is they aren’t threatened, which is why, as I predicted last year, the trade war continues unabated despite the fact that so many people argued that China would “quickly fold” to Trump’s demands. I realize this is not what many people want to hear, but it is foolish to get caught up in a farcical mob mentality and ignore the fundamentals in the trade war. If you think that the US is going to “win” based on leverage, you are sorely mistaken. The US is in no better shape economically than China; in many ways we are much worse off.

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Close down the place before it can do even more harm.

Fed QE Unwind Continues Via Sharp Drop In MBS (WS)

In August, the Fed shed Mortgage Backed Securities (MBS) at a rate that exceeded its self-imposed “cap” of $20 billion for the fourth month in a row, but added some Treasury securities, with a new emphasis on short-term Treasury bills. Total assets on the Fed’s balance sheet fell by $20 billion, to $3.76 trillion, as of the balance sheet for the week ended September 4, released this afternoon. This brought the balance sheet to the lowest level since September 2013. So far this year, the Fed has shed $314 billion in assets. Since the beginning of the “balance sheet normalization” process, the Fed has shed $700 billion. Since peak-QE in January 2015, it has shed $738 billion:

During the month of August, $70 billion in Treasury securities in the Fed’s portfolio matured and were redeemed by the US Treasury Department. The Fed replaced all those with new Treasury securities. This replacement would have kept its holdings level. Per its new plan to replace its MBS securities with Treasury securities – more on that in a moment – it added about $15 billion in Treasury securities, bringing the total to $2.095 trillion. This was the first monthly increase since the end of 2017, bringing its Treasury holdings back to the level of last July, and just above the September 2013 level:

As part of its new regime to shorten the overall maturity of its holdings, the Fed’s holdings now include $3 billion in Treasury bills (maturing in one year or less), up from zero a few months ago. After “Operation Twist,” which was layered between QE-2 and “QE Infinity,” the Fed had not held any Treasury bills. About four months ago, it started dabbling in them again, but in August it got serious. These T-bills replaced some of the MBS that ran off its balance sheet.

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Trump giveth and the Fed taketh away. End the Fed AND Fannie and Freddie.

Trump Administration Backs Privatizing Fannie Mae And Freddie Mac (MW)

The Trump administration said it would support returning mortgage-finance giants Fannie Mae and Freddie Mac to private hands, a development that could keep the companies at the center of the housing market for decades to come. The principles announced Thursday represent a major reversal from what leaders of both parties over the past decade promised — to abolish the companies, which guarantee roughly half the U.S. mortgage market. The approach, which doesn’t require approval by Congress, would mark an important win for investors who have been betting politicians wouldn’t follow through on those promises. Treasury officials said they would aim to privatize the government-controlled firms without making it tougher and more expensive for people to get mortgages.


They generally avoided making specific policy recommendations on how to accomplish these goals in a report released Thursday. They said they would work with federal regulators to flesh out the details on how to put Fannie and Freddie on a sounder financial footing as well as to curtail the firms’ roles in housing finance. The process could take years to implement and won’t affect existing mortgages. “Our view is that the government footprint has become too big,” Treasury Secretary Steven Mnuchin said in an interview ahead of Thursday’s report. ”There are people in Washington who are happy to leave this the way it is for another 10 or 20 years, and that’s not us. We feel an obligation to try to fix this.”

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“The direction of European history would seem to have changed – shifting away from convergence and back to delineation.”

Is Armed Conflict Possible in Today’s Europe? (Spiegel)

“The war changed everything.” This statement by the late British historian Tony Judt contains the kernel of modern-day Europe. It was the war that made possible an extended period of peace. Things had to get extremely bad before they could get good again. For the last 75 years, there has been peace on the Continent, with just a few exceptions. Now, this Europe finds itself in crisis. It is no longer the Europe where national thinking is slowly dwindling. It is no longer the Europe that is growing together step by step. It is no longer the Europe in which all countries seem to be committed to democracy forever. The direction of European history would seem to have changed – shifting away from convergence and back to delineation.


What does that mean for the most important of all questions, the question of war or peace? At the moment, it doesn’t look at all as though the long period of peace is going to come to an end. There is no reason for alarm. But if the direction of European history is changing, we should take a close look at what that could mean. Not in the immediate future, but in the long term. History is a snail that persistently crawls along its path. Exactly 80 years ago, the war that changed everything began — on Sept. 1, 1939, with Adolf Hitler’s Germany invading neighboring Poland. Almost six years later, more than 60 million people around the world were dead as a result of the violence, huge portions of the Continent were destroyed, millions of Europeans had been forced from their homes and millions more were plunged into poverty. A state of shock reigned.

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When will he quit?

Boris Johnson: I’d Rather Be Dead In a Ditch Than Delay Brexit (BBC)

Boris Johnson has said he would “rather be dead in a ditch” than ask the EU to delay Brexit beyond 31 October. But the PM declined to say if he would resign if a postponement – which he has repeatedly ruled out – had to happen. Mr Johnson has said he would be prepared to leave the EU without a deal, but Labour says stopping a no-deal Brexit is its priority. The prime minister’s younger brother, Jo Johnson, announced earlier that he was standing down as a minister and MP. Speaking in West Yorkshire, Boris Johnson said Jo Johnson, who backed Remain in the 2016 referendum, was a “fantastic guy” but they had had “differences” over the EU.

Announcing his resignation earlier in the day, the MP for Orpington, south-east London, said he had been “torn between family loyalty and the national interest”. During his speech at a police training centre in Wakefield, the prime minister reiterated his call for an election, which he wants to take place on 15 October. He argued it was “the only way to get this thing [Brexit] moving”. “We either go forward with our plan to get a deal, take the country out on 31 October which we can or else somebody else should be allowed to see if they can keep us in beyond 31 October,” Mr Johnson said.

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Mutti? You here?

Hong Kong Braces For More Protests As Merkel Calls For Peaceful Solution (R.)

Hong Kong is bracing for more demonstrations this weekend, with protesters threatening to disrupt transport links to the airport, after embattled leader Carrie Lam’s withdrawal of a controversial extradition bill failed to appease some activists. Germany’s Chancellor Angela Merkel raised Hong Kong with Chinese premier Li Keqiang in Beijing on Friday, saying a peaceful solution is needed. “I stressed that the rights and freedoms for (Hong Kong) citizens have to be granted,” said Merkel. “In the current situation violence must be prevented. Only dialogue helps. There are signs that Hong Kong’s chief executive will invite such a dialogue. I hope that materializes and that demonstrators have the chance to participate within the frame of citizens’ rights,” she said during a visit to Beijing.


Li told a news conference with Merkel: “The Chinese government unswervingly safeguards ‘one country, two systems’ and ‘Hong Kong people govern Hong Kong people’”. He said Beijing supported the Hong Kong government “to end the violence and chaos in accordance with the law, to return to order, which is to safeguard Hong Kong’s long-term prosperity and stability”. Protesters plan to block traffic to the city’s international airport on Saturday, a week after thousands of demonstrators disrupted transport links, sparking some of the worst violence since the unrest escalated three months ago. Many protesters have pledged to fight on despite a withdrawal of the extradition bill, saying the concession is too little, too late.

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The Pentagon will protect you from “large-scale, automated disinformation attacks” by publishing “large-scale, automated disinformation attacks..”

The Pentagon Wants More Control Over the News. What Could Go Wrong? (Taibbi)

If there’s a worse idea than the Pentagon becoming Editor-in-Chief of America, I can’t remember it. But we’re getting there: From Bloomberg over Labor Day weekend: “Fake news and social media posts are such a threat to U.S. security that the Defense Department is launching a project to repel “large-scale, automated disinformation attacks,” as the top Republican in Congress blocks efforts to protect the integrity of elections.” One of the Pentagon’s most secretive agencies, the Defense Advanced Research Projects Agency (DARPA), is developing “custom software that can unearth fakes hidden among more than 500,000 stories, photos, video and audio clips.”

Once upon a time, when progressives still reflexively distrusted the military, DARPA was a liberal punchline, known for helping invent the Internet but also for developing lunatic privacy-invading projects like LifeLog, a program to “gather in a single place just about everything an individual says, sees, or does.” DARPA now is developing a semantic analysis program called “SemaFor” and an image analysis program called “MediFor,” ostensibly designed to prevent the use of fake images or text. The idea would be to develop these technologies to help private Internet providers sift through content. It’s the latest in a string of stories about new methods of control over information flow that should, but for some reason do not, horrify every working journalist.

From the Senate dragging Internet providers to the Hill to demand strategies against the sowing of “discord,” to tales of hundreds of Facebook sites zapped for “coordinated inauthentic behavior” following advice by government-connected groups like the Atlantic Council, it’s been clear the future of the information landscape is going to involve elaborate new forms of algorithmic regulation. Stories about the need for such technologies are always couched as responses to the “fake news” problem. Unfortunately, “fake news” is a poorly-defined, amorphous concept that the public has been trained to fear without really understanding.

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Why wait 4 years?

Germany Announces Plan to Ban Glyphosate (CD)

The German government announced Wednesday it had agreed on a plan to phase out the use of glyphosate—the key chemical in the weedkiller Roundup—with a total ban set to begin by the end of 2023. “Way to go, Germany!” tweeted the U.S.-based advocacy group Organic Consumers Association. Chancellor Angela Merkel’s cabinet agreed to the plan Wednesday. The proposal, reported Bloomberg, also says that the “government intends to oppose any request for the E.U. to renew the license to produce the weedkiller, according to a release by the environment ministry.” The European Commission, the E.U.’s rules and regulations body, in 2017 renewed the license for glyphosate in the bloc through the end of 2022.


Germany’s environment Minister, Svenja Schulze, framed the new move as necessary to protect biodiversity, and said that “a world without insects is not worth living in”. “What harms insects also harms people,” Schulze said at a press conference. “What we need is more humming and buzzing.” Glyphosate is no longer exclusive to Monsanto’s Roundup, as it “is now off-patent and marketed worldwide by dozens of other chemical groups including Dow Agrosciences and Germany’s BASF,” as Reuters noted. That’s despite the World Health Organization’s International Agency for Research on Cancer’s 2015 designation of glyphosate as a “probable carcinogen,” increasing concerns over its health effects, and mounting legal woes for Bayer, which acquired Monsanto last year, as multiple juries have found Roundup to have been a factor in plaintiffs’ cancers.

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Stop calling them conservatives.

Targeting the Tongass National Forest for Amazon-like Destruction (CP)

Alaskan politicians, the governor, Mike Dunleavy, and the two senators, Lisa Murkowski and Dan Sullivan, all Republican, convinced Trump to dismantle federal protections of the Tongass National Forest. The Trump administration ordered the Forest Service to approve this process of destruction. In March 16, 2019, the Forest Service designed a 15-year logging project in the Prince of Wales Island that included the opening of 164 miles of new roads in 67 square miles of land and the clearcutting of up to 23,000 acres of old-growth trees – trees several centuries old.

Environmental organizations like Earthjustice, Sierra Club, Alaska Wilderness League, Southeast Alaska Conservation Council, Alaska Rainforest Defenders, National Audubon Society, Natural Defense Council, Defenders of Wildlife, and the Center for Biological Diversity sued the Forest Service and the US Department of Agriculture for violating the National Environmental Policy Act and other environmental laws. They pointed out that such massive timber sale from the projected clearcutting of old growth trees was “wasteful, destructive, and a giveaway” to a timber industry contributing less than 1 percent to the economy of Alaska.

In addition, clearcutting 23,000 acres of ancient trees would harm the Alexander Archipelago wolf, flying squirrels, and birds like Goshawk. Why this violent attack on a forest these environmental organizations call the crown jewel of America? The Alaskan politicians, like Bolsonaro of Brazil, have a distorted and selfish vision: satisfy the landowners in Brazil and the timber barons in Alaska. Do these politicians, including Trump, ever think about the real bad effects, ecological and social, of their actions? They must have heard of the inferno in the Brazilian Amazon and its potentially horrific consequences on the planet. They cannot really assume or believe that adding quite a bit more carbon to the atmosphere from logging Tongass would be a good thing for America or the world? Or could they?

The only reasonable explanation of the murky world of Trump and the Republican politicians (of Alaska and the rest of the country) is that they reject science. Certainly, the Evangelicals do. These Christian Republicans support Trump. They make no secret they expect Jesus to rise up, thus signaling the end of life on Earth. This delusion gets scary as high officials of the Trump administration are its fervent believers.

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Long-time Assange confidant Stefania Maurizi talks to Roger Waters.

They Want Him Dead As A Warning (Maurizi)

He is one of the legends of rock famous for his progressive battles. At seventy-six, the Pink Floyd co-founder, Roger Waters, has not given up at all and does not hesitate to call his country, Great Britain, “disgusting” for its treatment of Julian Assange. Last Monday, Waters sang his great classic, “Wish You Were Here” in front of the UK Home Office in London in support of Assange, while the Australian journalist, John Pilger, explained the serious risk the WikiLeaks founder runs of being extradited to the US, and Assange’s brother, Gabriel, described an emotional meeting with Julian Assange. Roger Waters is currently in Venice to present his film “US + Them”. Repubblica interviewed him.


What made you go very public about Julian Assange’s situation? “Clearly, there has been a really powerful and international smear campaign, really since the Collateral Murder video. I have been watching it developing. Assange is the pet hate of Western governments, particularly the government of the United States, because he published evidence that shows the United States to have committed heinous war crimes, crimes against humanity in a big way. This smear campaign against him is all about getting him extradited to the US. They want him dead as a warning: they want to persuade any young person who might be thinking about the work of Julian Assange, or any whistleblower or any investigative journalist, that to pursue the path of truth-telling is extremely bad for your health. The message is: if you tell the truth, we will kill you, watch! The same with Chelsea Manning”.

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Withdrawing the extradition bill is no longer enough:

 

 

 

 

 

Aug 262019
 


Joan Miro The farmer’s wife 1923

 

In Jackson Hole on Friday, Bank of England’s outgoing governor Mark Carney talked about a Synthetic Hegemonic Currency (SHC) that the world ‘must’ create, and I thought: that sounds as creepy as anything Halloween. Now, Carney is a central banker as well as a former Giant Squid partner, hence a certified cultist, but still.

He even mentioned Facebook’s Libra ‘currency’ as some sort of example for something that should replace the US dollar internationally. And that replacement is allegedly needed because countries are hoarding dollars. And/or “protecting themselves by racking up enormous piles of dollar-denominated debt.” Whichever comes first, I guess?!

I’ve read quite a few comments on Carney’s speech, but far as I’ve seen they all ignore one aspect of it: the current shape and form of globalization. See, Carney can see only one thing: more centralization, more things moving more in the same direction. Remember, he’s the man who with Michael Bloomberg in 2016 wrote “How To Make A Profit From Defeating Climate Change”. Aka things are worth doing only if they make you richer.

It’s a state of mind that works fine when you’re inside a system and an echo chamber, when you’re a central banker or a corporate banker. But there’s nothing that indicates it’s a useful state of mind when the system you’re serving must undergo change. What is as true when it comes to climate change as it is for changing the entire global economy. Carney’s got blinders on.

 

World Needs To End Risky Reliance On US Dollar: BoE’s Carney

Carney [..] said the problems in the financial system were encouraging protectionist and populist policies. [..] Carney warned that very low equilibrium interest rates had in the past coincided with wars, financial crises and abrupt changes in the banking system. As a first step to reorder the world’s financial system, countries could triple the resources of the IMF to $3 trillion as a better alternative to countries protecting themselves by racking up enormous piles of dollar-denominated debt.

In other words, to reorder the world’s financial system, you must put a ton of money into a fund that has served (and failed) to uphold the old system. Really?

“While such concerted efforts can improve the functioning of the current system, ultimately a multi-polar global economy requires a new IMFS (international monetary and financial system) to realize its full potential,” Carney said. China’s yuan represented the most likely candidate to become a reserve currency to match the dollar, but it still had a long way to go before it was ready. The best solution would be a diversified multi-polar financial system, something that could be provided by technology, Carney said.

There is no doubt that the present system is a little off balance, that the USD’s role in the financial system is way bigger then America’s share of global trade. But the yuan is completely unfit as a reserve currency because it’s not freely traded. And whether “technology” could “provide a diversified multi-polar financial system” (quite the statement) is very much in question. Perhaps that is true in theory, but Carney’s claims are not only about theory -anymore-.

Facebook’s Libra was the most high-profile proposed digital currency to date but it faced a host of fundamental issues that it had yet to address. “As a consequence, it is an open question whether such a new Synthetic Hegemonic Currency (SHC) would be best provided by the public sector, perhaps through a network of central bank digital currencies,” Carney said.

 

The most fundamental issue about Libra would appear to be that it doesn’t exist. Then there are a whole slew of other issues, like why should Facebook and its partners play any role at all in finance. Because they’re such benign enterprises who focus on guarding your privacy? Why Carney would present it as a potential ‘solution’ is totally unclear, other than Libra is something that could fit inside his echo chamber.

I’m still nervous about crypto, too many things still go wrong, too many thefts, too many things too many people don’t understand. But I would support Bitcoin over Carney’s “network of central bank digital currencies” any day. Because that’s the creepiness of this “Synthetic Hegemonic Currency” in all its infamy.

Carney and his echo chamber banker mates seek control, we get it. But that doesn’t mean we want them to have it. Look at the present system, which they created, and the failure of which necessitates the creation of yet another system. And then they want to control that one too?

 

But that’s still all a bit of a sideshow. I’m thinking Carney is not just wearing blinders, he’s simple too late. The globalization that his proposals might serve is already past its peak. He may not be able to see beyond it, but we should.

Globalization is a process, it’s something that moves, it can’t stand still. And now that it’s fully reached China, there’s nowhere else for it to go. Sure, there are some smaller countries that might be willing to produce at even lower prices, like Vietnam or Cambodia, but they could never do it at the same scale as China has.

The same goes for Africa. Moving the entire manufacturing capacity to Africa that was transferred from the west to China starting 20-30 years ago, would be such a logistical nightmare nobody would seriously consider it, And so we have come to a standstill. Globalization can no longer move, because it has nowhere to move to. The world is as fully globalized as it ever will be. But globalization is a process.

Perhaps counterintuitively, the only thing it can really do is to move back. For a number of different reasons, I think that’s exactly what will happen. And I don’t think that’s all that bad. Trump is of course already preparing part of that move with his tariffs war. But it can, and I’m quite sure will, go much further.

If globalization only means, and is restricted to, the transfer of manufacturing anything and everything from the US and Europe to China, and that’s what it appears to mean, the drawback for the former(s) is painfully obvious. So is the one for the planet.

 

It may make sense to produce high end products, like intricate complex electronics, in one location in the world, but why on earth should China produce our underwear? Yeah, they can do it cheaper, sure, but the main effect of that is it kills our jobs. The narrative about this over the past few decades has been that we were building a ‘knowledge economy’ or a ‘service economy’, but that’s a whole lot of BS.

Not only do we now depend on China to make our underwear, all those panties and shorts and shirts have to be hauled halfway across the planet by fossil-fuel-powered behemoth container ships. While we could make them right where we live, pay people a living wage to do it, and lower pollution in the process. Not a hard choice, even if your boxers would cost a dollar more.

And whether you worry about the planet and climate and species extinction or not, enough people do to make it an ever growing factor in decision making on these topics. And there’s more. Henry Ford understood it: people must be paid enough to afford your products if your business is to be successful. The whole “globalization” towards lower wage countries has not only lowered prices in the US and Europe, but also wages.

And that in turn has opened the way towards higher pay for executives, higher stock prices and dividends etc., in other words towards more inequality. Very few people understand the mechanics that drive this, but more of them will and must as their wages become the same as those in China.

 

So anyway, Mark Carney’s grand Synthetic Hegemonic plans are too little too late. Not that that will keep him from blabbing about them, he represents the ruling classes after all, which are doing just fine and would like to be doing even finer. But even he, and they, cannot deny that globalization is like a shark that dies when it can no longer move. Scary movie title: Globalization Never Sleeps…

And Trump plays his role in this just dandy. Not that he’s the smartest guy around, far from it, but he does recognize how globalization hurts America. And that China, a third world country not long ago, is now perhaps the world’s largest economy and will have to be subject to entirely different rules and scrutiny than in, say, 1980.

China must open up its economy to US and EU products, or the latter must close theirs to what China produces. That’s what the trade war, and/or the currency war, the whole enchilada, is about. And perhaps it needed an elephant like Trump to say it, but that’s not important. The entire world economy has reached the limits of its lopsided-ness , and the imbalance must be fixed. Simple stuff.

I’ve been using underwear as an example, but we all know -or we could- how much of what we purchase daily comes from China. Well, that, too, like globalization, and because of it, has reached its peak. We will make our own underwear again. It that a bad thing? How? Henry Ford would have understood it is not, even if he might have been the first to move his production lines to Shenzhen if he would have had the option.

Ford understood the link between prices and wages, but that knowledge appears to be gone. Except perhaps in China, but their model relies exclusively on exports and that can’t last either. Ford sought to sell his cars to his own workers. Which is just about the very opposite of what today’s financial elites are after, and why Carney wants a -belated- Synthetic Hegemonic Currency.

See the point? I predict Carney and his ilk will propose a cloud-based world currency soon, ‘guaranteed’ by -probably- the IMF’s Special Drawing Rights (SDR), but that is totally unfit for the role they have in mind.

Because you don’t need such a currency to pay for the underwear that’s produced by your neighbors just down the road. You only need it for the underwear that comes from China.

 

 

 

 

Aug 262019
 
 August 26, 2019  Posted by at 9:10 am Finance Tagged with: , , , , , , , ,  11 Responses »


Marc Chagall The Smolensk newspaper 1914

 

Yield Curve Screams “Recession” as Trade War Picks Up Steam (Mish)
China’s Yuan Slumps To 11-Year Low, Stocks Fall As Trade War Escalates (R.)
Trump Says China Called Twice To Restart Trade Talks (MW)
China Willing To Resolve Trade Dispute With US Via Dialogue (R.)
Mnuchin: If China Agreed To Fair Relationship, We’d Sign ‘In A Second’ (CNBC)
Hong Kong Police Arrest 36 After Running Battles With Protesters (R.)
Australia’s Big Banks Gear Up For Capital Raising Rush (R.)
Why The Next ECB Stimulus Plan May Fail (Lacalle)
Britain Can ‘Easily Cope’ With No-Deal Brexit, Claims Boris Johnson (G.)
Has Anyone Loved Being Prime Minister As Much As Boris Johnson? (Peston)
England’s Homeless Children Problem (ZH)
English Police Could Patrol Northern Ireland Border After No-Deal Brexit (RT)

 

 

To think that until recently this was not considered possible at all.

Yield Curve Screams “Recession” as Trade War Picks Up Steam (Mish)

Futures pick up where they left off Friday with equity prices and bond yields lower. Sunday Evening Futures: • Equities Down • Gold Up • Treasury Yields Down As of 1:36 AM Central on Monday morning, the 30-year long bond is a record low 1.942%. It’s now inverted 17.8 basis points with the Fed Funds rate. The 5-year note is a whopping 78.4 basis points inverted. Few seem to believe it, but the yield curve is now screaming recession.

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“The impact of the new tariffs on China’s economic growth will be sizeable..”

China’s Yuan Slumps To 11-Year Low, Stocks Fall As Trade War Escalates (R.)

China’s yuan slumped to a fresh 11-year low against the dollar on Monday and stocks fell as the Sino-U.S. trade war sharply escalated, threatening to inflict more damage on the world’s largest economies and weigh further on global growth. In Hong Kong, a weekend flare-up in violence during anti-government protests added to pressure on share prices. The onshore yuan fell 0.6% in early trade to 7.15 per dollar, its weakest since February 2008 and its second biggest one-day drop of the month. The offshore yuan fell to a record low of 7.1850, before regaining some ground to around 7.1595.


The Chinese authorities have allowed the tightly-managed yuan to fall some 3.6% so far this month as trade tensions between Beijing and Washington worsened, sparking fears of a global currency war. It was trading around 7.1419 by 0330 GMT. On Friday, U.S. President Donald Trump announced an additional duty on some $550 billion of targeted Chinese goods, hours after China unveiled retaliatory tariffs on $75 billion worth of U.S. goods. “This tit-for-tat escalation shows how unlikely a trade deal and de-escalation have become,” Louis Kuijs, of Oxford Economics, wrote in a note late on Sunday. “The impact of the new tariffs on China’s economic growth will be sizeable,” he said.

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China denies.

Trump Says China Called Twice To Restart Trade Talks (MW)

In a comment that moved financial markets, President Donald Trump on Monday said serious negotiations with China will begin after the U.S. received two “very good calls” from Beijing. “China called last night our top trade people and said let’s get back to the table,” the president said after meeting Egyptian President Abdel-Fattah el-Sissi. “I have great respect for it.” Trump said “we are going to start talking very seriously.” He says the Chinese want to make a deal and he thinks one will finally be reached. Trump says he’ll say more about China later Monday.


China’s foreign ministry meanwhile said it wasn’t aware of any such calls and that a U.S.-China decoupling will lead to market chaos, according to wire reports. After the Dow Jones Industrial Average DJIA, -2.37% dropped 623 points on Friday, U.S. stock futures were higher in the early hours of Monday morning. The dollar rose against the Japanese yen. Europe stocks were a bit weaker, with trading light with the U.K. market closed for a holiday.

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All has to be said in a way that avoids losing face.

China Willing To Resolve Trade Dispute With US Via Dialogue (R.)

Chinese Vice Premier Liu He said on Monday that China is willing to resolve its trade dispute with the United States through calm negotiations and resolutely opposes the escalation of the conflict, a state-backed newspaper reported. Liu, China’s top trade negotiator, was speaking at a tech conference in Chongqing in southwest China, the Chongqing Morning Post reported. The comments come after U.S. President Donald Trump last week announced an extra 5% duty on some $550 billion of Chinese goods, the latest tit-for-tat move announced hours after China unveiled its retaliatory tariffs on $75 billion worth of U.S. products.

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“They have free entrance into our markets, our investments, our companies and we do not have the same thing there. That’s the only reason why we are in this situation..”

Mnuchin: If China Agreed To Fair Relationship, We’d Sign ‘In A Second’ (CNBC)

American Treasury Secretary Steven Mnuchin doubled down on the White House’s latest punch in the U.S.-China trade war by calling out Beijing for unfair trade practices. “We do not have free trade with them,” Mnuchin said Sunday on the sidelines of the G-7 meeting in France. “It’s a one way street: They have free entrance into our markets, our investments, our companies and we do not have the same thing there. That’s the only reason why we are in this situation with China. If China would agree to a fair and balanced relationship, we would sign that deal in a second,” he added.


“Sometimes you’ve got to take stern measures,” White House economic advisor Larry Kudlow said alongside Mnuchin, adding that American companies should heed the president’s call to leave China. “Come home to America, we’ve got the best tax system, we’ve got the best regulatory system, it’s an easy place to make money, the best technology in the world. Come home. That’s what the president is saying,” Kudlow said. Before leaving for the G-7, U.S. President Donald Trump said he would raise existing duties on $250 billion in Chinese products to 30% from 25% on Oct. 1. Additionally, he said, tariffs on another $300 billion of Chinese goods, which start to take effect on Sept. 1, will now be 15% instead of 10%.

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Protesters are escalating because their demands are ignored.

Hong Kong Police Arrest 36 After Running Battles With Protesters (R.)

Hong Kong police said on Monday they arrested 36 people, the youngest aged 12, after violence during anti-government demonstrations escalated as protesters hurled Molotov cocktails at security forces who responded with water cannon and tear gas. Sunday’s protests saw some of the fiercest clashes yet between police and demonstrators since protests escalated in mid-June over a now-suspended extradition bill that would have allowed Hong Kong people to be sent to mainland China for trial. Police fired water cannon and volleys of tear gas in running battles with brick-throwing protesters on Sunday, the second day of violent clashes in the Chinese-ruled city.

Six officers drew their pistols and one officer fired a warning shot into the air, police said in a statement. “The escalating illegal and violent acts of radical protesters are not only outrageous, they also push Hong Kong to the verge of a very dangerous situation,” the government said in a statement.

More demonstrations are planned in the days and weeks ahead, including a rally at Hong Kong’s Cathay Pacific Airways headquarters on Wednesday to protest against perceived “white terror”, a common expression to describe anonymous acts that create a climate of fear. Cathay has emerged as the biggest corporate casualty of the protests after China demanded it suspend staff involved in, or who support, the anti-government demonstrations that have plunged the former British colony into a political crisis. The protests also pose the gravest popular challenge to Chinese President Xi Jinping since he took power in 2012, with Beijing eager to quell the unrest ahead of the 70th anniversary of the founding of the People’s Republic of China on Oct 1.

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Bubbling below the surface.

Australia’s Big Banks Gear Up For Capital Raising Rush (R.)

Australia’s biggest banks are expected to cut dividend payments and tap bond markets for more funding to cope with tougher capital requirements as regulators look to safeguard the sector from future market volatility, according to analysts and bankers. This week, Commonwealth Bank of Australia Chief Executive Matt Comyn and Chief Financial Officer Alan Docherty will finalise a roadshow with Australian equity investors before holding similar meetings in New York next month as well as London and Hong Kong. The bank traditionally meets with investors following its full-year results and the presentations have often preceded CBA tapping the bond markets. However, the meetings this year come as Australia’s banks are under increasing pressure to boost their capital.


Last week, the Australian Prudential Regulation Authority (APRA) said local banks would only be allowed to have 25% of their tier one capital – core funds held to help absorb losses – exposed to international operations or related parties from January 2021, down from the current 50%. That means banks such as Australia and New Zealand Banking Group face higher costs because they will have to fund each unit separately. The news came on top of another decision by APRA last month ruling that Australian banks would need to raise an extra A$50 billion ($33.8 billion) of so-called “tier two” bonds – riskier instruments that suffer losses before tier one capital is touched – by 2024 as part of its new total loss absorbing capital rules.

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“..all this happens amidst an unprecedented chained stimulus.”

Why The Next ECB Stimulus Plan May Fail (Lacalle)

When many analysts tell us that Europe “is not so bad” or that “it is only a slowdown,” they ignore that all this happens amidst an unprecedented chained stimulus. The results are not only extremely poor, but they are also deeply worrying. According to Morgan Stanley, the European Central Bank could be preparing a new repurchase program of between 2.2 and 3.3 billion euros. Not only buying back bonds from governments, but also from banks and companies. What for? Even Italy – in the midst of a political crisis – has negative real sovereign bond yields. The sovereign debt of all the eurozone countries shows negative yields in two-year maturity and negative as well going up to seven years. Germany has just launched a 30-year bond at -0.11%.

Is it really necessary to artificially depress yields even more? In the eurozone there are already fourteen junk bonds listed with negative yields and high-risk bonds of banks and companies are listed with ridiculous returns of 3-4%. The problem of the eurozone is not lack of liquidity, when excessive liquidity reaches 1.8 trillion euros, or low rates when they are already negative,. The eurozone problem is precisely the constant practice of using monetary policy as a perverse incentive to maintain structural imbalances. Monetary policy works as a huge transfer of wealth from savers and productive sectors of the eurozone to inefficient governments and unproductive sectors that are constantly refinanced, zombifying the economy, putting obstacles to productivity and technological change.

The stimulus chain described above can be summed up in the phrase: a huge subsidy to low productivity. Here is the debate. Why has it worked in the US and not in Europe? First, because it is not true that the United States owes its improvement to quantitative easing. In a report by Stephen Williamson for the Federal Reserve, he already warned that “there is no relationship between greater economic activity and quantitative easing.” The US economy is the most dynamic, open and least dependent on bank financing of the world’s leading countries. The Federal Reserve never accounted for 100% of the demand for government bonds, it always kept an eye on the secondary market. The ECB became seven times the bond supply, according to Deutsche Bank.

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Blaming the EU will not work.

Britain Can ‘Easily Cope’ With No-Deal Brexit, Claims Boris Johnson (G.)

Britain could “easily cope” with a no-deal Brexit, which would be the fault of EU leaders’ “obduracy”, Boris Johnson claimed at the summit of G7 countries in France, as he continued to resist mounting pressure to spell out his own plans for breaking the deadlock. “I think we can get through this, this is a great, great country, the UK, we can easily cope with a no-deal scenario,” Johnson insisted in Biarritz, as he made his debut on the international stage as prime minister with a series of bilateral meetings with world leaders including Donald Trump, the EU council president Donald Tusk and Indian prime minister Narendra Modi. Johnson said preparations for no deal were being ramped up to help secure an agreement, but also “so that if and when we are forced by the obduracy by our European friends to come out on 31 October without a deal that things are as smooth as they can possibly be”.


Johnson claimed food shortages – one of the risks outlined in the leaked Operation Yellowhammer documents on no-deal planning – were “highly unlikely”, and offered a “guarantee” that patients would be able to access medicines unhindered. The prime minister said that in the event of no deal the UK would withhold much of the £39bn financial settlement agreed by Theresa May – and insisted it was up to the EU27 to avert that eventuality. “If we come out without an agreement it is certainly true that the £39bn is no longer, strictly speaking, owed,” he said “There will be very substantial sums available to our country to spend on our priorities. It’s not a threat. It’s a simple fact of reality.”

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Robert Peston was once a serious journalist. What is this, the elites are closing ranks?

Has Anyone Loved Being Prime Minister As Much As Boris Johnson? (Peston)

I’ve learned only one thing at the G7 summit of big rich countries here in Biarritz: Boris Johnson absolutely loves being Prime Minister. There’s little of the conspicuous sense of duty that weighed on the shoulders of Theresa May, Gordon Brown and Sir John Major. Nor is there that unnerving claim to embody the spirit of a nation that Tony Blair and Margaret Thatcher perhaps made too often and believed too much. There’s a touch of David Cameron’s Old Etonian entitlement, the idea that it would be odd if he weren’t PM. But mostly Johnson simply seems to be having fun – whether by pointing a joshing finger at the imperious president of France or telling an incredulous President of the EU that they agree on absolutely everything.


Johnson’s bonhomie is all the more odd because the UK – as his advisers remind him continuously – is in the grips of the most acute peacetime crisis for generations, over how and even whether to leave the EU, and Johnson’s grip on power is almost non-existent, with no majority in Parliament and fratricide in his own Tory party as unremarkable as shaking hands. But in Johnson we have the clown prince of prime ministers, who – for the first time in years, or perhaps ever – plainly thinks he is home. His interlocutors – Emmanuel Macron, Donald Tusk, Justin Trudeau – all laugh. With him or at him? I am not sure that matters, in that he seems to cheer them up.

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Feel-good Boris.

England’s Homeless Children Problem (ZH)

New estimates from the Children’s Commissioner’s Office for England have revealed that, in addition to the official figure for child homelessness of 124 thousand, there are thought to be around 92 thousand children ‘sofa surfing’ in the country. Statista’s Martin Armstrong notes that the report, ‘Bleak Houses’ also found that the temporary accommodation of families and children is often not fit for human habitation with shipping containers, office blocks and B&Bs being re-purposed to house them.

Commenting on the findings, Children’s Commissioner Anne Longfield said: “It is a scandal that a country as prosperous as ours is leaving tens of thousands of families in temporary accommodation for long periods of time, or to sofa surf.” On the reasons for the current situation, Polly Neate, chief executive of charity Shelter blamed “a cocktail of punitive welfare policies, a woeful lack of social homes and wildly expensive private rents mean this is frighteningly commonplace.”

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Oh no.

English Police Could Patrol Northern Ireland Border After No-Deal Brexit (RT)

Despite a wealth of history suggesting that it’s a very bad idea, UK politicians have reportedly devised detailed plans to deploy English police officers in Northern Ireland in the event of a no-deal Brexit. According to a report in The Sunday Times, the plans would first see approximately 300 Scottish police drafted in to support the Police Service of Northern Ireland (PSNI) as a preliminary step. However, if tensions between the unionist and nationalist communities boil over or civil unrest erupts, officers from English forces will be deployed in the province.


A source at London’s City Hall told the newspaper: “All the police forces have agreed to give support to Northern Ireland. It is a concern. Thankfully it wouldn’t affect too many London officers, but we would be there. Imagine it: officers from the mainland in Northern Ireland. Bloody hell.” Unsurprisingly the report has triggered alarm bells in Northern Ireland and Ireland with many people worrying that it could incite anger among Irish nationalists and endanger the fragile peace in the region. “English police on the Irish border. What could go wrong? Don’t remember this on the referendum ballot paper or being debated in 2016? In the week we have remembered Mo Mowlam I despair at such a reckless attitude to hard-won peace,” Labour MP Anna Turley said.

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Jun 032019
 


Paul Ranson Apple tree with red fruit 1902

 

Global Recession Fears Mount As Manufacturing Shrinks Across Asia (R.)
How Many People Will Be Retiring in the Years to Come? (St.L.Fed)
Economic Growth Is An Unnecessary Evil (TLE)
Mueller Must Testify Publicly To Answer Three Critical Questions (Turley)
Alan Dershowitz: US ‘Overplayed Its Hand’ on Assange (NM)
The Intelligence Community Needs A House-Cleaning (Matt Taibbi)
Juncker: Not Enough Work To Keep 28 EU Commissioners Busy (EuA)
US Regulators Say Some Boeing 737 MAX Planes May Have Faulty Parts (R>)
Science institute That Advised EU and UN ‘Actually Industry Lobby Group’ (G.)
EU Candidate To Run UN Food Body Will ‘Not Defend’ EU Stance On GMO (G.)
Helsinki’s Radical Solution To Homelessness (G.)

 

 

One tool left: lower interest rates.

Global Recession Fears Mount As Manufacturing Shrinks Across Asia (R.)

Factory activity contracted in most Asian countries last month as an escalating trade war between Washington and Beijing raised fears of a global economic downturn and heaped pressure on policymakers in the region and beyond to roll out more stimulus. Such growth indicators are likely to deteriorate further in coming months as higher trade tariffs take their toll on global commerce and further dent business and consumer sentiment leading to job losses and delays in investment decisions. Some economists predict a world recession and a renewed race to the bottom on interest rates if trade tensions fail to ease at a Group of 20 summit in Osaka, Japan at the end of June, when presidents Donald Trump and Xi Jinping could meet.


In China, Asia’s economic heartbeat, the Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) showed modest expansion at 50.2, offering investors some near-term relief after an official gauge on Friday showed contraction. The outlook, however, remained grim as output growth slipped, factory prices stalled and businesses were the least optimistic on production since the survey series began in April 2012. PMIs were below the 50-point mark separating contraction from expansion in Japan, South Korea, Malaysia and Taiwan, came below expectations in Vietnam and improved slightly in the Philippines. “The additional shock from the escalated trade tensions is not going to be good for global trade and if demand in the U.S., China and Europe continues to soften, which is very likely, it will bode ill for Asia as a whole,” said Aidan Yao, senior emerging markets economist at AXA Investment Managers.

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And because of those lower interest rates, very few Americans will be able to retire, let alone at 65. Which makes this St. Louis Fed article outright insane, insulting even.

How Many People Will Be Retiring in the Years to Come? (St.L.Fed)

In this post, I will describe a preliminary estimate of the number of people retiring each month over the next 20 years. I started with the population of workers between the ages of 40 and 65 in 2018 using data gathered by IPUMS-USA. I then used age- and gender-specific mortality rates from the Human Mortality Database to compute how many people are expected to still be alive the next year (at only one year older). I continued iterating this procedure for a few years, assuming that the age-specific mortality rates remain constant over the years I specify. Finally, I counted the number of people reaching age 65 each year, further breaking it down to the averages of those reaching 65 each day and each month. The figure below shows the result of this calculation.

Initially, it is evident that there will be around 10,000 people (taking the total of retiring males and females) turning 65 each day for the next two decades. The right axis indicates the number of people turning 65 each month, which is an easier number to compare with the BLS monthly report on the current employment situation in the U.S. Not surprisingly, the peak corresponds to the retiring of the baby boomers. From 2025 onward, the trend is declining, which is likely because of the baby bust that followed the baby boom.

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Don’t worry, growth will soon be a thing of the past.

Economic Growth Is An Unnecessary Evil (TLE)

In 2012, writing as a lone economics blogger, I put forward a case for why countries should ditch economic growth as a political priority. Long revered as a stalwart of a capitalist society the need to grow has come to overshadow everything else. We prioritise it over our personal health, we prioritise it over the health of the planet and we prioritise it over our happiness. But given that the function of any economy is to provide an environment of subsistence, that could be little short-sighted. Economist Kenneth Boulding once said that we eat in order to achieve the state of being well-fed, and moving our jaws is simply the ‘cost’ of getting there.

We would therefore be mistaken to focus our attention on the act of chewing as the desired end-state when it is simply the price we pay to become fed. But as long as growth is the target of our economic systems people will continue to focus on chewing, which is neither a sustainable nor desirable trait of an economy. Which is why I welcomed news that New Zealand’s Prime Minister Jacinda Ardern has put out a national budget where spending is dictated by what best encourages the “well-being” of citizens, rather than focussing on traditional bottom-line measures like productivity and economic growth.

The government will put an emphasis on goals like community and cultural connection and equity in well-being across generations in what has been described as a “game-changing event” by LSE professor Richard Layard. As part of the framework Ardern has set aside more than $200 million to bolster services for victims of domestic and sexual violence and included a promise to provide housing for the homeless population. New guidance on policy suggests all new spending must advance one of five government priorities: improving mental health, reducing child poverty, addressing the inequalities faced by indigenous Maori and Pacific islands people, thriving in a digital age, and transitioning to a low-emission, sustainable economy.

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But he said he wouldn’t say another word…

Mueller Must Testify Publicly To Answer Three Critical Questions (Turley)

In that twinkling zone between man and myth, Robert Mueller transcends the mundane. Even in refusing to reach a conclusion on criminal conduct, he is excused. As Mueller himself declared, we are to ask him no questions or expect any answers beyond his report. But his motivations as special counsel can only be found within an approved range that starts at “selfless” and ends at “heroic.” Representative Mike Quigley defended Mueller’s refusal to reach a conclusion as simply “protecting” President Trump in a moment of “extreme fairness.” Yet, as I noted previously, Mueller’s position on the investigation has become increasingly conflicted and, at points, unintelligible.

As someone who defended Mueller’s motivations against the unrelenting attacks of Trump, I found his press conference to be baffling, and it raised serious concerns over whether some key decisions are easier to reconcile on a political rather than a legal basis. Three decisions stand out that are hard to square with Mueller’s image as an apolitical icon. If he ever deigns to answer questions, his legacy may depend on his explanations. One of the most surprising disclosures made by Attorney General William Barr was that he and Deputy Attorney General Rod Rosenstein expressly told Mueller to submit his report with grand jury material clearly marked to facilitate the release of a public version.

The Justice Department cannot release grand jury material without a court order. Mueller knew that. He also knew his people had to mark the material because they were in the grand jury proceedings. Thus, Barr and Rosenstein reportedly were dumbfounded to receive a report that did not contain these markings. It meant the public report would be delayed by weeks as the Justice Department waited for Mueller to perform this basic task. Mueller knew it would cause such a delay as many commentators were predicting Barr would postpone the release of the report or even bury it. It left Barr and the Justice Department in the worst possible position and created the false impression of a coverup.

Why would a special counsel directly disobey his superiors on such a demand? There is no legal or logical explanation. What is even more galling is that Mueller said in his press conference that he believed Barr acted in “good faith” in wanting to release the full report. Barr ultimately did so, releasing 98 percent of the report to select members of Congress and 92 percent to the public. However, then came the letter from Mueller.

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“..the Supreme Court. “I suspect that is where this case is headed as well..”

Alan Dershowitz: US ‘Overplayed Its Hand’ on Assange (NM)

Bringing charges against WikiLeaks founder Julian Assange under the Espionage Act is one thing, but legal extradition is going to be far more difficult for merely publishing stolen material, not actually stealing it, according to legal expert Alan Dershowitz. “I think the Trump administration has overplayed its hand, so did the Justice Department,” Dershowitz told “The Cats Roundtable” on 970 AM-N.Y.. “They had a very strong case for extradition when they initially accused him of breaking into a password [-protected machine] to try to get classified material, that’s a crime. “But publishing materials? That’s very different. That’s The New York Times and The Washington Post, and I think Great Britain is going to have a lot of difficulty extraditing Assange to the U.S. to face trial for merely publishing material stolen not by him but by others.”


The case will not be one of espionage but a case of free speech and the First Amendment, according to Dershowitz. I think we’re in for a very interesting First Amendment case, probably the most interesting First Amendment case involving national security since Pentagon Papers.” Dershowitz was one of the lawyers of the Pentagon Papers case related to Watergate and the ultimate impeachment proceedings and resignation of former President Richard Nixon, taking the case to the Supreme Court. “I suspect that is where this case is headed as well,” Dershowitz told host John Catsimatidis.

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“Schiff was gung-ho to declassify “as much as possible about Russia hacking our elections” back in the summer of 2016, but now describes attempts to declassify information about the reasons for the probe as an attempt to “weaponize law enforcement.”

The Intelligence Community Needs A House-Cleaning (Matt Taibbi)

CIA director Gina Haspel crowed to the Washington Post a year ago that disclosing the name of informant Stefan Halper “could risk lives.” It turned out Halper had been outed as a spook in the pages of the New York Times back in 1983, and openly traded on his intelligence past as a professor in England. Where were lives at risk, in the Cambridge University Botanical Garden? We also saw reports that revealing the name of former British spy Christopher Steele would imperil his life. When the Wall Street Journal outed him in January of 2017, Steele responded by telling British media that he was “terrified for his safety.” He added he was going into hiding because he feared a “potentially dangerous backlash against him from Moscow.”

We later found out Steele had more media contacts than the Kardashian family, meeting with (at minimum) the Times, Post, Yahoo!, The New Yorker, CNN and Mother Jones in the space of about seven weeks in September-October 2016. In the years since his report became public, Steele fought through his terror to keep commiserating with the media. He invited a sprawling, laudatory 2018 profile in The New Yorker that described him answering “one of his two phones” in Farnham, a Surrey town with a “beautiful Georgian high street,” where he and his four children live on “nearly an acre of land.” He’s given depositions, negotiated to testify before congress, and been a primary source in several bestselling books. Thanks to such elaborate precautions, he’s managed somehow to avoid assassination since 2016.

[..] The release of the Page warrant turned out to not to compromise anything but the reputation of the FBI and other agencies. The major revelation was the FBI had indeed used Steele, a “compensated” FBI informant as well as a private oppo researcher, as a source despite having “suspended its relationship” with him in October 2016, ostensibly over failure to disclose media contacts. House Intel committee ranking member Adam Schiff knew this information when he conducted his “bombshell” hearing” on March 20, 2017. That was the one in which he and other members questioned not-yet-fired FBI chief James Comey and Rogers, and read out information from the Steele report as if it were factual, not giving any hint that there might be issues with it.

Schiff was gung-ho to declassify “as much as possible about Russia hacking our elections” back in the summer of 2016, but now describes attempts to declassify information about the reasons for the probe as an attempt to “weaponize law enforcement.” The hemming and hawing about “sources and methods” is really a pre-emptive ass-covering campaign. A bunch of these people are about to be highlighted in the upcoming review by Justice IG Michael Horowitz, as well as the larger probe led by former Connecticut U.S. Attorney John Durham. This is why we’ve seen stories that essentially show James Comey and Brennan pointing fingers and blaming the other for using the Steele material.

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“..a million euro per Commissioner, for relocation, staff and the lifelong pension which every Commissioner gets, no matter how long he or she has been in office..”

Juncker: Not Enough Work To Keep 28 EU Commissioners Busy (EuA)

European Commission President Jean-Claude Juncker has urged member states not to name short-term replacements for the Commissioners that have been elected as MEPs, insisting there is not enough work for 28 Commissioners anyway. Five of Juncker’s Commissioners have been elected as MEPs: First Vice President Frans Timmermans, vice-presidents Andrus Ansip and Valdis Dombrovskis, and Commissioners Corina Cretu and Mariya Gabriel. In an interview with BILD am Sontag yesterday (2 June), Juncker made a strong appeal that the member states should not replace them until the end of the mandate in November.


The elected MEPs must decide whether to take their seats before 1 July. If some of the elected Commissioners take their MEP seats, their countries will be without a Commissioner for four months. “Each member state has the right to appoint a new Commissioner for the remaining four months,” Juncker said, adding that “this would cost the European taxpayer a million euro per Commissioner, for relocation, staff and the lifelong pension which every Commissioner gets, no matter how long he or she has been in office, because the member states have decided that this is so. I’m trying to stop this.”

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“If it is in the air by Christmas (Dec. 25) I’ll be surprised – my own view..”

US Regulators Say Some Boeing 737 MAX Planes May Have Faulty Parts (R>)

The U.S. Federal Aviation Administration on Sunday disclosed a new problem involving Boeing Co’s grounded 737 MAX, saying that more than 300 of that troubled plane and the prior generation 737 may contain improperly manufactured parts and that the agency will require these parts to be quickly replaced. The FAA said up to 148 of the part known as a leading-edge slat track that were manufactured by a Boeing supplier are affected, covering 179 MAX and 133 NG aircraft worldwide. Slats are movable panels that extend along the wing’s front during takeoffs and landings to provide additional lift. The tracks guide the slats and are built into the wing.

[..] In a statement issued after the FAA announcement, Boeing said it has not been informed of any in-service issues related to this batch of slat tracks. Boeing, the world’s largest plane maker, said it has identified 20 737 MAX airplanes most likely to have the faulty parts and that airlines will check an additional 159 MAXs for these parts. Boeing said it has identified 21 737 NGs most likely to have the suspect parts and is advising airlines to check an additional 112 NGs. The NG is the third-generation 737 that the company began building in 1997. The affected parts “may be susceptible to premature failure or cracks resulting from the improper manufacturing process,” the FAA said.

[..] Boeing in April said the two fatal crashes had cost it at least $1 billion as it abandoned its 2019 financial outlook, halted share buybacks and lowered production. The company’s shares have fallen by nearly 20 percent since the Ethiopian Airlines crash in March. Some international carriers are skeptical the plane will resume flying by August as some U.S. airlines have suggested. Tim Clark, president of Emirates, told reporters in Seoul that it could take six months to restore operations as other regulators re-examine the U.S. delegation practices. “If it is in the air by Christmas (Dec. 25) I’ll be surprised – my own view,” he said.

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And there’s Monsanto again.

Science Institute That Advised EU and UN ‘Actually Industry Lobby Group’ (G.)

An institute whose experts have occupied key positions on EU and UN regulatory panels is, in reality, an industry lobby group that masquerades as a scientific health charity, according to a peer-reviewed study. The Washington-based International Life Sciences Institute (ILSI) describes its mission as “pursuing objectivity, clarity and reproducibility” to “benefit the public good”. But researchers from the University of Cambridge, Bocconi University in Milan, and the US Right to Know campaign assessed over 17,000 pages of documents under US freedom of information laws to present evidence of influence-peddling.

The paper’s lead author, Dr Sarah Steele, a Cambridge university senior research associate, said: “Our findings add to the evidence that this nonprofit organisation has been used by its corporate backers for years to counter public health policies. ILSI should be regarded as an industry group – a private body – and regulated as such, not as a body acting for the greater good.” In a 2015 email copied to ILSI’s then director, Suzanne Harris, and executives from firms such as Coca-Cola and Monsanto, ILSI’s founder Alex Malaspina, a former Coca-Cola vice-president, complained bitterly about new US dietary guidelines for reducing sugar intake.

“These guidelines are a real disaster!” he wrote. “They could eventually affect us significantly in many ways; Soft drink taxations, modified school luncheon programs, a strong educational effort to educate children and adults to significanty [sic] limit their sugar intake,, curtail advertising of sugary foods and beverages and eventually a great pressure from CDC [the US Center for Disease Control and Prevention] and other agencies to force industry to start deducing [sic] drastically the sugar we add to processed foods and beverages.”

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And more Monsanto. Europe is losing.

EU Candidate To Run UN Food Body Will ‘Not Defend’ EU Stance On GMO (G.)

Europe’s candidate to run the UN’s Food and Agriculture Organisation (FAO), which guides policymakers around the world, has promised the US she will “not defend the EU position” in resisting the global spread of genetically modified organisms (GMOs). In a bid for US support, Catherine Geslain-Lanéelle told senior US officials at a meeting in Washington on 15 May that under her leadership the FAO would be more open to American interests and accepting of GMOs and gene editing, according to a US official record of the meeting seen by the Guardian. The issue has been a longstanding point of conflict in trade talks with the EU, which has adopted a far more cautious approach to biotechnology in food and agriculture.

All GMO imports are subject to strict safety assessments imposed on a case-by-case basis. Plants and animals whose genome has been manipulated through gene editing are deemed to be GMOs and are subject to similar restrictions. The US portrays such restrictions as trade barriers and has demanded they be dropped. In the meeting with officials from the US agriculture and state departments, Geslain-Lanéelle, a former director general of the French agriculture and food ministry who also ran the European Food Safety Authority, signalled she would veer to the US side if she ran the FAO. “She is proud to be European, who she is, and where she comes from; however, she will promote FAO from a global perspective rather than with European Union or French views,” said a US government internal memo.

“She will not defend the EU position on biotechnology and genetically modified organisms. This is not what agriculture needs. She will defend a global project that includes US interests.”

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“..you don’t need to solve your problems before you get a home. Instead, a home should be the secure foundation that makes it easier to solve your problems.”

Helsinki’s Radical Solution To Homelessness (G.)

As in many countries, homelessness in Finland had long been tackled using a staircase model: you were supposed to move through different stages of temporary accommodation as you got your life back on track, with an apartment as the ultimate reward. “We decided to make the housing unconditional,” says Kaakinen. “To say, look, you don’t need to solve your problems before you get a home. Instead, a home should be the secure foundation that makes it easier to solve your problems.” With state, municipal and NGO backing, flats were bought, new blocks built and old shelters converted into permanent, comfortable homes – among them the Rukkila homeless hostel in the Helsinki suburb of Malminkartano where Ainesmaa now lives.

Housing First’s early goal was to create 2,500 new homes. It has created 3,500. Since its launch in 2008, the number of long-term homeless people in Finland has fallen by more than 35%. Rough sleeping has been all but eradicated in Helsinki, where only one 50-bed night shelter remains, and where winter temperatures can plunge to -20C. The city’s deputy mayor Sanna Vesikansa says that in her childhood, “hundreds in the whole country slept in the parks and forests. We hardly have that any more. Street sleeping is very rare now.” In England, meanwhile, government figures show the number of rough sleepers – a small fraction of the total homeless population – climbed from 1,768 in 2010 to 4,677 last year (and since the official count is based on a single evening, charities say the real figure is far higher).

But Housing First is not just about housing. “Services have been crucial,” says Helsinki’s mayor, Jan Vapaavuori, who was housing minister when the original scheme was launched. “Many long-term homeless people have addictions, mental health issues, medical conditions that need ongoing care. The support has to be there.”

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It’s discouraging to think how many people are shocked by honesty and how few by deceit.
– Noel Coward

 

 

 

 

Jun 012019
 


 

Relentless and Unrestrained Public Mobbing, Intimidation and Defamation (CN)
UN Special Rapporteur Calls for Julian Assange to Be Freed (DN)
Assange ‘Psychologically Tortured To Breaking Point By Democratic States’ (RT)
Are US/UK Trying To Kill Assange? – Ron Paul (DM)
Assange May Have To Die Before Journalists Realize Implications – Galloway (RT)
36 Countries The US Has Bullied This Week (RT)
Prelude to a Fiasco (Jim Kunstler)
US Stock Market Forgoes $5 Trillion In Returns Due To Trade War – Deutsche (MW)
Dow 25,000! Oops…(WS)
Mexico Tariffs May Hurt $600 Billion In Cross-Border Trade, US Economy (MW)
Brazil Snubs Venezuelan Opposition Envoy As Doubts Rise On Guaido (R.)

 

 

NOTE: quite a few video’s today, which don’t always show if you receive this by mail. In that case, please refer to the Automatic Earth site.

 

 

“I’ve seen atrocities in war areas that were physically more horrible but I’ve never seen a single person pursued so relentlessly and with so little foundation.”

Relentless and Unrestrained Public Mobbing, Intimidation and Defamation (CN)

“It was obvious that Mr. Assange’s health has been seriously affected by the extremely hostile and arbitrary environment he has been exposed to for many years. Most importantly, in addition to physical ailments, Mr. Assange showed all symptoms typical for prolonged exposure to psychological torture, including extreme stress, chronic anxiety and intense psychological trauma.” “My most urgent concern is that, in the United States, Mr. Assange would be exposed to a real risk of serious violations of his human rights, including his freedom of expression, his right to a fair trial and the prohibition of torture and other cruel, inhuman or degrading treatment or punishment,” said Melzer.

He said he was “particularly alarmed” by the Espionage Act charges. “This may well result in a life sentence without parole, or possibly even the death penalty, if further charges were to be added in the future,” said Melzer. “[Assange] is really something I’ve never seen in 20 years,” Melzer said. “I’ve seen atrocities in war areas that were physically more horrible but I’ve never seen a single person pursued so relentlessly and with so little foundation. “[When I saw him] I immediately compared him to some of the graver cases in interrogation prisons in terms of his psychological reaction patterns. That’s what alarmed me so much.” He said Assange’s treatment was “very close to the intentional, purposeful infliction of coercive measures to try to break him”.

He appeared “extremely agitated and preoccupied,” Melzer said. “He asked a lot of questions and he would jump around, he was so preoccupied with everything he can’t even compute my answers any more. “There were episodes of this, then he was part of the conversation as normal, then again he would enter into this agitated state. I have seen with other victims of psychological torture that would happen.” Melzer also blasted the government of Assange’s native Australia. He told the newspaper, “Australia is a glaring absence in this case. They’re just not around, as if Assange was not an Australian citizen. That is not the correct way of dealing with that.”

 

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Interesting man for sure. This part of his report stands out:

“I believe we have to take a step back and look at all these proceedings, how they have been conducted, and come to our own conclusions whether these are fair. We also have to take a step back and look at this whole narrative of suspected rapist; narcissist; selfish, ungrateful person; hacker, and scratch the surface a little bit and see what’s below there.


When I was first approached by his defense team seeking protection from my mandate in December last year, I was reluctant to do so, because, me, too, I had been affected by this prejudice that I had absorbed through all these public, you know, narratives spread in the media over the years. And only when I scratched the surface a little bit, I saw how little foundation there was to back this up and how much fabrication and manipulation there is in this case. So I encourage everybody to really look below the surface in this case.”

UN Special Rapporteur Calls for Julian Assange to Be Freed (DN)

The United Nations special rapporteur on torture is warning that WikiLeaks founder Julian Assange is suffering from the effects of “psychological torture” due to his ongoing detention and threats of possible extradition to the United States. The U.N. expert, Nils Melzer, also warned that Assange would likely face a “politicized show trial” if he were to be extradited to the United States. Melzer writes, “In 20 years of work with victims of war, violence and political persecution, I have never seen a group of democratic states ganging up to deliberately isolate, demonize and abuse a single individual for such a long time.” Julian Assange is currently serving a 50-week sentence for skipping bail in 2012 at London’s Belmarsh Prison, after he was forcibly removed from the Ecuadorean Embassy by British police last month.


Last week, the U.S. Justice Department announced it was charging Assange with 17 counts of violating the Espionage Act for his role in publishing U.S. classified military and diplomatic documents exposing U.S. war crimes in Iraq and Afghanistan. Assange, who had already been charged on one count of hacking a government computer, now faces up to 170 additional years in prison under the new charges—10 years for each count of violating the Espionage Act. Assange was due to appear by video link before a magistrates’ court on Thursday but failed to appear, reportedly due to health problems. We speak with U.N. Special Rapporteur on Torture Nils Melzer.

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Nils Melzer did a whole range of interviews in one day.

Assange ‘Psychologically Tortured To Breaking Point By Democratic States’ (RT)

Jailed WikiLeaks co-founder Julian Assange shows clear signs of degrading and inhumane treatment which only adds to his deteriorating health, UN Special Rapporteur on Torture Nils Melzer told RT. Assange has “all the symptoms typical for a person who has been exposed to prolonged psychological torture,” Melzer told RT’s Afshin Rattansi. This adds to the toll of his deteriorating physical state caused by a lack of adequate medical care for several years, he said. Melzer said he was judging from two decades of experience in working with POWs and political prisoners, and only after applying “scientific” UN methods to assess Assange’s condition. But the journalist’s case still “shocked” him.


An individual has been isolated and singled out by several democratic states, and persecuted systematically… to the point of breaking him. Earlier this month, a UK court sentenced the WikiLeaks co-founder to nearly a year in jail for skipping bail in 2012. The courts are now deciding whether to extradite Assange to the US where he is wanted for 17 charges under the Espionage Act. He can end up serving up to 175 years in prison if proven guilty.

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Me too, I thought of Warmbier: “..how would we look a lot different to the North Koreans on the surface?’

Are US/UK Trying To Kill Assange? – Ron Paul (DM)

Former Congressman and presidential candidate Ron Paul says Julian Assange could die in prison and blames the apparent deterioration in the WikiLeaks founder’s heath on how he is being treated by the US and UK governments. Speaking on ‘Ron Paul Liberty Report, the 83-year-old accuses the US government of pursuing Assange and says they would like to either challenge him with a death penalty or a life time in prison ‘for being a journalist.’ The Libertarian calls Assange’s a ‘tragic story’ and describes his health as ‘very very bad,’ commenting that friends of the whistleblower are worried that his health may not hold up. [..] Paul also compares Assange’s plight to the case of Otto Frederick Warmbier, an American college student imprisoned in North Korea in 2016.


In June 2017, Warmbier was released by North Korea in a vegetative state and died soon afterward. Paul goes on to ask what the ramifications would be if Assange is much sicker than is being revealed and dies in prison as the result of how his case has been handled by Washington and London. ‘If he had a terminal disease or something happens to him, good, bad, or whatever and he dies in the prison, how would we look a lot different to the North Koreans on the surface?’ Paul questions. Paul goes on to slam the American media and journalists for their lack of reporting on Assange’s health problems, adding that news of his ill health came out via a Swedish newspaper. Paul adds there is ‘not much good journalism around any more’ and that by not doing more reporting on Assange, journalists ‘don’t want to protect their right to be a journalist.’

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They still wouldn’t realize a thing.

Assange May Have To Die Before Journalists Realize Implications – Galloway (RT)

“Julian Assange may have to die in the hospital wing of Belmarsh prison in order to bring it about” George Galloway believes it’s not long until ‘we could be in George Orwell’s 1984’ as he talks to In Question’s Manila Chan about the Wikileaks founder being too ill to appear at extradition hearing.

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The US will end up all alone.

36 Countries The US Has Bullied This Week (RT)


© Global Look Press / Uwe Skrzypczak

It’s been a busy few days for American diplomacy, with three dozen nations ending up at the receiving end of threats, ultimatums and sanctions this week alone. And it’s only Friday. Mexico is the latest target, slapped with 5 percent tariffs on each and every export, gradually increasing to 25 percent until it stops the flow of Latin American migrants into the US, thus fulfilling one of President Donald Trump’s election promises. Most of those migrants aren’t even from Mexico. On the other side of the world, India is reportedly about to be forced to face a choice: ditch the purchase of Russian S-400 air defense systems or face sanctions under the Countering America’s Adversaries Through Sanctions Act (CAATSA, Washington’s go-to cooperation enforcement instrument).

Turkey is facing a similar ultimatum: abandon S-400s (something Ankara has repeatedly refused to do) or lose access to the F-35 fighter jet program. This threat was repeated on Thursday by Kathryn Wheelbarger, US acting assistant secretary of defense for international security affairs. Ankara has already invested some $1.25 billion into the super-expensive American fighter, but with a lot of its parts being made in Turkey, it’s still an open question who would be the bigger loser. The entire European Union could be facing punishment if it tries to trade with Iran using its non-dollar humanitarian mechanism to bypass the American embargo. Having worked hard on the 2015 nuclear deal with Tehran, which has repeatedly been confirmed to be working, EU member states are not ready to ditch trade at Trump’s whim – and US Special Representative to Iran Brian Hook on Thursday reaffirmed the threat of CAATSA sanctions.

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”The object is solely to divert the nation’s attention with an impeachment circus, allowing Mr. Mueller to slip away harmlessly into history..”

Prelude to a Fiasco (Jim Kunstler)

You’d think that Robert Mueller might know what any licensed attorney-at-law in the land tells a client in a tight spot with a lame alibi: better keep you mouth shut. Instead, Mr. Mueller crept Sphinx-like out of the Deep State woodwork on little cat’s paws and in a brief nine minutes blabbed out a set of whopperish riddles much more likely to get himself in trouble than the target of his hinky inquisition. The key whopper was that he could not make “a determination” on an obstruction-of-justice charge against Mr. Trump because guidance policy from the DOJ’s Office of Legal Counsel had said some years ago that a sitting president can’t be indicted. That is not what he told his boss, Mr. Barr, the Attorney General (and a roomful of the AG’s staffers who heard it), in person when he delivered his final report a few weeks ago.

Upon receipt of that report, Mr. Barr asked the Special Counsel three times whether his inability to conclude anything on an obstruction charge was due to the OLC guidance, and three times Mr. Mueller answered “no.” Mr. Barr relayed this on-the-record in testimony before the House Judiciary Committee and, as averred above, he has plenty of witnesses. It should not be hard to reach a determination on who is telling truth here. In fact, Mr. Mueller could have declared that he found chargeable obstruction crimes were committed based on the evidence, and also demurred to press them at this time — leaving them available to federal prosecutors until after the president was out of office, one way or another.

The reason he didn’t is that Mr. Mueller does not want the case to come to trial, ever, because he would lose badly and his reputation would be destroyed. Consider that in any trial, the defendant gets to call witnesses and make his own case. The evidence for gross prosecutorial misconduct on the part of Mr. Mueller and his associates is mountainous compared to the molehill of Mr. Trump’s temper tantrums over the seditious hoax he was subject to. And that matter is now moving in the direction of adjudication. So instead, Mr. Mueller has set in motion a potential political crisis as momentous as the Civil War, but completely unlike it.

Knowing that congress can impeach the president on just about anything — especially this president, publicly reviled like no other before him — he served congress the platter of material to use in the form of his final report, and pretty much dared them to not go forward with it. Get this: it is a ruse. The object is solely to divert the nation’s attention with an impeachment circus, allowing Mr. Mueller to slip away harmlessly into history without sacrificing his own reputation in a courtroom.

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We like big numbers.

US Stock Market Forgoes $5 Trillion In Returns Due To Trade War – Deutsche (MW)

The U.S. stock market has left $5 trillion on the table as trade tensions over the past 17 months contributed to an effectively sideways trade, Deutsche Bank estimated on Friday. “While other factors also arguably played a role, the trade war has been key in preventing a recovery in global growth and keeping U.S. equities range bound. Foregone U.S. equity returns from price appreciation for 17 months are worth $5 trillion,” wrote Binky Chadha, the bank’s chief strategist, in a Friday note, based on an price appreciation at an annual rate 12.5% (see chart below).

Chadha’s calculation is based on the capitalization of the Russell 3000, a broad measure of equity markets, which had a capitalization of $28.7 trillion at the start of 2018. Foregone returns for the index over 17 months comes out to $5 trillion. The S&P 500 in the first four months of 2019 bounced back sharply from a steep fourth-quarter selloff nudging to an all-time closing high in April. But the index has retreated more than 6% in May, posting its first monthly decline since December and its worst May performance since 2010. The Dow Jones Industrial Average which failed to return to record territory before the May swoon, also fell more than 6% for the month.

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What $20 trillion in stimulus bought you.

Dow 25,000! Oops…(WS)

Stocks were already gunning for the worst May since 2010 when, on the evening before the last trading day, Trump tweeted that he would impose tariffs on imports from Mexico, if Mexico doesn’t crack down on migration flows coming through its southern border. Those tariffs would hit the automakers particularly hard because they imported 2.6 million vehicles from Mexico in 2018, up 10% from the prior year. Not even counting the component makers. But the Presidential tweet was just the icing on the cake. May had been crappy for stocks before the tweet went out.


The S&P 500 index, which earlier this week had fallen through 2,800, dropped another 1.3% today to 2,752, down 6.8% from its peak in early May that had exceeded by a hair the prior peak of September 2018. The index is now back where it had first been on January 9, 2018, having spent nearly 17 months going nowhere, despite intoxicating surges and nerve-wracking drops. And the chart is morphing from “not pretty” to something a little uglier (data via S&P Dow Jones Indices):

The Dow Jones Industrial Average fell 1.1% today, unceremoniously plopping through the 25,000 level and closed at 24,815. It’s now 7.9% below its October 2018 peak and right back where it had first been in December 2017, having spent 17 months gyrating to nowhere, including a 19% peak-to-trough plunge in four months followed by a blistering 22% rally in four months. The Nasdaq composite dropped 1.5% today, to 7,453, the level it first reached in January 2018, also going nowhere in nearly 17 months despite a huge bout of volatility. It fell 8.7% in May. The Russell 2000 index, which covers stocks with smaller market capitalization, fell 1.3% today, to 1,478. It’s down 9.2% in May alone, down 15.7% from its October 2018 peak, and right back where it had first been on September 26, 2017, a very volatile 20 months of going nowhere. Chart looking ugly (data via Investing.com):

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This just might go horribly wrong.

Mexico Tariffs May Hurt $600 Billion In Cross-Border Trade, US Economy (MW)

The U.S. economy could suffer a wrenching blow, business leaders and economists say, if President Trump follows through on his threat to slap tariffs on all imports from Mexico in a dispute over immigration controls. The president on Thursday said he would apply a 5% tariff on $350 billion in imports from Mexico unless the country reduces the flow of immigrants seeking to enter the United States. The surprise move slammed the stock market and prompted an immediate backlash from business. “These proposed tariffs would have devastating consequences,” said Jay Timmons, president of the National Association of Manufacturers. “Workers should not be forced to suffer because of the failure to fix our immigration system.”

Households could face higher prices for groceries and other key consumer staples, economists say. And businesses would have to pay more for key parts and materials, especially in the auto industry. “The duties represent a significant risk to business activity both north and south of the border,” said chief economist Gregory Daco of Oxford Economics. He said Mexico could be thrown into recession while U.S. growth could fall to 1% or less by 2020. The economies of the U.S. and Mexico have become inextricably intertwined in the quarter of a century since the North American Free Trade Agreement deal was signed in 1994. The two countries exchanged a whopping $612 billion in goods last year, making Mexico the third largest trading partner after Canada and China. More than $1.5 billion in products cross the border between the two countries every day.


Although Mexico is popularly known as the main U.S. source for avocados and tequila, the huge amount of products it sends to its northern neighbor each year touch almost every major segment of America’s economy. The U.S. imports enormous quantities of autos and parts, computer equipment, oil and gas, appliances and plastic and rubber products — not to mention fruits and vegetables such as tomatoes, berries and melons. Mexican imports in 2018 hit a record $347 billion.

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Geez, is that still on?

Brazil Snubs Venezuelan Opposition Envoy As Doubts Rise On Guaido (R.)

Brazil withdrew an invitation to the envoy for Venezuelan opposition leader Juan Guaido to present her diplomatic credentials, she said on Friday, and the government in Brasilia said it would decide later whether to accept them. Brazilian President Jair Bolsonaro still recognises Guaido as the legitimate president of Venezuela, his spokesman said. Guaido’s envoy, Maria Teresa Belandria, played down the idea that the snub reflected scepticism from Bolsonaro’s government. Diplomatic analysts said mounting evidence that a change of government in Venezuela is not imminent may have Bolsonaro and his aides wondering if they overplayed their support for Guaido.


Former military officers making up about a third of Brazil’s cabinet have been wary of provoking Venezuelan President Nicolas Maduro, warning against moves that could tip an economic and political crisis into violence across Brazil’s northern border. Belandria had been invited to present her credentials at the presidential palace along with ambassadors from other countries next Tuesday, but the government changed its mind. “I was uninvited,” she told Reuters, but went on to dismiss any suggestion the snub reflected diminished support for Guaido. “There will be another opportunity,” she said. “Brazil’s support continues to be strong, solid and decisive. It’s merely a protocol matter.”

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Julian on Google

 

 

 

 

Sep 182018
 
 September 18, 2018  Posted by at 9:30 am Finance Tagged with: , , , , , , , , , ,  7 Responses »


M. C. Escher Development II 1939

 

Trump Orders More Russia-Related Probe Documents To Be Declassified (R.)
David Stockman Exposes The “$20 Trillion Elephant In The Room” (ZH)
An Economic Recovery Based Around High Debt Is Really No Recovery (G.)
Four Lessons (Not) Learned From The Financial Crisis (F.)
Trump Is ‘A Symptom And Not The Cause’ Of The Trade War With China (CNBC)
UK Will Shift Brexit Stance In Its ‘Darkest Hour’ Claim EU Officials (G.)
Christine Lagarde Warns Of ‘Dire Consequences’ Of Disorderly Brexit (G.)
Monsters All the Way Down (Kunstler)
Vulnerable Migrant Groups Must be Removed from Greek Island – MSF (GR)
WikiLeaks Slams AP “Assange Letter” As Fake, Denies He Sought Russian Visa (ZH)

 

 

As I said would happen a few weeks ago. Inevitable. But what a curious choice of headline for Reuters. The docs are related to the probe, not to Russia.

Trump Orders More Russia-Related Probe Documents To Be Declassified (R.)

U.S. President Donald Trump has directed the Justice Department to immediately declassify more information related to the investigation into possible election meddling by Russia, the White House said on Monday. Trump’s demands mark his latest effort to turn up the heat on the Justice Department, whom he and his Republican allies have accused of running a tainted probe into Russian interference in the 2016 U.S. presidential election. Among the documents Trump ordered the Justice Department and the director of national intelligence to make public are 20 additional pages of FBI surveillance warrant applications related to his former campaign adviser Carter Page.

Trump also ordered the release of FBI interview reports with Justice Department official Bruce Ohr related to the Russia probe, and FBI interview reports related to the Page surveillance warrant applications, White House spokeswoman Sarah Sanders said in a statement. Finally, Trump directed the Justice Department to release, without redactions, text messages relating to the Russia probe from former FBI Director James Comey, former FBI Deputy Director Andrew McCabe and other officials, including FBI agent Peter Strzok.

Trump fired Comey in May 2017, originally citing the Russia probe, and then saying that the firing was not “because of the phony Russia investigation.” McCabe was fired in March by Attorney General Jeff Sessions. Strzok was also recently fired, and has been criticized for sending texts disparaging Trump as a presidential candidate.

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Look at that graph. And keep looking.

David Stockman Exposes The “$20 Trillion Elephant In The Room” (ZH)

In a recent interview with Sprott Media in Vancouver, Stockman reiterated that he remains a skeptic, particularly in an era where central banks (thanks to their $20-trillion-plus aggregate balance sheet) have destroyed price discovery and contributed to the blowing of a debt bubble that – when it finally pops – will make the aftermath of the financial crisis appear tame by comparison. Stockman begins his interview by clarifying that he would be optimistic about the long-term prospects for growth and markets if it wasn’t for this $20 trillion ‘elephant in the room’.

“I am an optimist, I truly am – if it weren’t for the fact that central banks are totally out of control. So my talk centered on the Great $20 trillion elephant in the room, which is the balance sheets of all the central banks in the world, in excess of what it probably should be in a rational stable historically prudent world”. As central banks have bought up assets, they’ve repressed interest rates, rigged equity prices and provided the fuel for the explosion of debt that has occurred over the past 20 years, Stockman said.And when the music finally stops – as they say – it will be the central banks that bear the brunt of the blame.

“And it’s that $20 trillion, built up over the last two decades, that has basically distorted everything – falsified prices, repressed interest rates, caused an explosion of debt. Twenty years ago there was $40 trillion of debt in the world today there is $250 trillion worth of debt in the world. The leverage of the world has gone from 1.3 times which is stable…to 3.3 times, which basically means the world has created a huge temporary prosperity by burying itself in debt.

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Same difference.

An Economic Recovery Based Around High Debt Is Really No Recovery (G.)

Rickard Nyman and Paul Ormerod have compared economic forecasting by humans and machines in both the US and the UK, and come up with some stark conclusions. At the start of 2008 the survey of professional forecasters in the US failed to predict that within a year their country would be in a deep recession. Had US policymakers relied on machine-learning algorithms they would have been much better prepared for the trouble ahead. Even more impressive results using machine learning were obtained for the UK. There’s more, however. Nyman and Ormerod sift through all the economic and financial variables that might have been responsible for causing the downturn and come up with a conclusion that explodes the myth that overspending governments were to blame.

“The evidence suggests quite clearly that public sector debt played no causal role in generating the Great Recession” they say. “In contrast, the ratio of private sector debt to GDP does appear to have played a significant role, especially in the UK.” In truth, the idea that state profligacy caused the Great Recession has never been credible. What really happened was that the expansion of the global marketplace led to cheap goods flooding the west. Inflationary pressure abated and that persuaded central banks to cut interest rates. Financial deregulation meant the only remaining constraint on excessive borrowing – high interest rates – was removed – and so credit was cheap and readily available. The private sector loaded up on debt, which was fine so long as the assets on the other side of the balance sheet were going up in value. When the markets turned, things went pear-shaped very quickly.

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Excellent example.

Four Lessons (Not) Learned From The Financial Crisis (F.)

Let’s say you know three people: Alexandra, Meg and Melanie. Alex owes Meg $5, and Meg owes Melanie $5. Further say that they have run into financial trouble. You, the government, believe that if this is not addressed then it could have terrible consequences for the rest of the macroeconomy. So you decide to come to the rescue by paying the $5 . . . but to whom? You have three choices, each of which costs exactly $5: i. Give the money to Alexandra, who passes it to Meg, who passes it on to Melanie. All debts are retired and the economy returns to financial health. ii. Give the money to Meg, who passes it on to Melanie. They both return to economic health, while Alexandra remains saddled with debt. iii. Give the money to Melanie, who then becomes viable once again. Alexandra and Meg remain weighed down.

Guess which one we did? The one that bailed out Wall Street while leaving Main Street indebted. This has two huge consequences. One, higher levels of debt reduce spending and therefore represent a drag on the economy. Second, they increase “financial fragility,” or the likelihood of system-wide insolvency. If the second part sounds like the financial crisis, it should. Fortunately, however, we have avoided such a consequence. Reuters suggests that the structure of debt has changed in a positive way and we should be especially thankful for the low unemployment rate which has meant that people have not had difficulty making payments.

But data from the Bank for International Settlements (displayed below) show two things: 1) the ratio appears to be making an upward turn and 2) it remains much closer to the dangerous levels of the 2000s than those of the New Economy of the 1990s. It was precisely that 2000s level that raised red flags to analysts like Steve Keen, who went on to be recognized as the economist who most accurately forecast the financial crisis. Incidentally, he’s worried again.

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It should have been resolved years ago.

Trump Is ‘A Symptom And Not The Cause’ Of The Trade War With China (CNBC)

George Yeo, Singapore’s former foreign minister, said at the conference that the “big story” here was the rise of China. The trade war is but one manifestation in the tensions between the world’s two largest economies which could go on for years, he added. There’s a growing anxiety in the U.S. about China’s rise, said Yeo, who is currently chairman of logistics company Kerry Logistics Network. He pointed to how former White House Chief Strategist Steve Bannon said it was an “economic war” and not a trade war. “For Peter Navarro, it’s Death by China,” Yeo added, referring to Trump’s trade advisor and fierce China critic, who wrote a book of that title. “It’s not difficult for an economic war to become a political war to become a real war,” he said.

Both superpowers need to find some kind of “accommodation” in this multi-polar world, Rodrik stressed. China may say that it knows how to manage its economy, and the West needs to recognize Asia’s largest economy has its own model. “On the other hand, I think China will need to understand that it has been a free rider on the system created by the U.S., of openness, and it would have to provide a certain amount of … policy space for the Europeans and the Americans too,” he said, adding that this would be an example of “peaceful co-existence.” “China is playing the long game,” Rodrik said, and the question is how the world can accommodate such a new power. “I view Trump really as a temporary phenomenon, there are deeper issues,” he concluded.

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Oil on fire.

UK Will Shift Brexit Stance In Its ‘Darkest Hour’ Claim EU Officials (G.)

The British government will have to experience its “darkest hour” and stare into the abyss of a no-deal Brexit before it will cave in to Brussels demands, senior EU diplomats have predicted. Ahead of a summit of EU leaders in Salzburg, diplomats in Brussels privately warned that Theresa May still needed to make a significant shift on her red lines for a deal to be possible, with the Irish border issue remaining a major hurdle in the talks. The stark prediction came as a French government official said that the president, Emmanuel Macron, wanted to nail down the key terms of the future deal now, rather than allow any ambiguous drift on the major issues after 29 March 2019.

That was at odds with the UK environment secretary, Michael Gove, who had claimed over the weekend that any deal with the EU on the political declaration could be undone by MPs after Brexit, as he urged his Tory colleagues to support the Chequers proposals “for now”. Brussels wants credible assurances from May that any deal will not be unpicked by her successor. The prime minister was only to be given “a few minutes” to talk to leaders at a dinner on Wednesday night in Salzburg before the 27 talk among themselves the following day, in a sign of the low expectation that she will have anything significant to say until after the Conservative party conference.

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Let’s hope someone pays attention.

Christine Lagarde Warns Of ‘Dire Consequences’ Of Disorderly Brexit (G.)

The UK economy would rapidly start to contract in the event of a disruptive exit from the EU next spring, according to a stark International Monetary Fund report that highlights the recession risks of a no-deal Brexit. Christine Lagarde, the IMF’s managing director, added that there would be costs to the UK under any outcome that involves leaving the EU. Expressing the IMF’s growing concern at the possibility of an acrimonious divorce next March, Lagarde said: “If that happened there would be dire consequences. It would inevitably have consequences in terms of reduced growth, an increase in the [budget] deficit and a depreciation of the currency. “In relatively short order it would mean a reduction in the size of the economy.”

Lagarde said the IMF’s forecast of 1.5% growth next year was based on a smooth exit from the EU. Her remarks were seized upon by the chancellor, Philip Hammond, as evidence that the UK had to strike a deal that would safeguard jobs and prosperity. “As the IMF has said, no deal would be extremely costly for the UK as it would be for the EU,” Hammond said. “Despite contingency planning, it would put at risk the significant progress made over the past 10 years in repairing the economy.” No 10, however, pointedly refused to endorse Hammond’s gloomy predictions. When asked about what he had said, her spokesman referred to what Theresa May told the BBC in an interview broadcast earlier: “The PM said very clearly that she believes our best days are ahead of us and that we will have plans in place for us to succeed in all scenarios.”

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All roads lead to Podesta.

Monsters All the Way Down (Kunstler)

Robert Mueller’s fishing crew was out trawling for Manafort, a blubbery swamp mammal valued for its lubricating oil when, by happenstance, a strange breed of porpoise called a Podesta got caught up in the net. Turns out it was a traveling companion of the Manafort. Back in 2014, the pair swam all the way to a little country called Ukraine via the Black Sea where the Podesta used some Manafort SuperLube on then-president of Ukraine, Victor Yanukovych. The objective was to grease the wheel of NATO and the EU for Ukraine to become a member. But the operation went awry when Yanukovych got a better offer from the Eurasian Customs Union, a Russian-backed trade-and-security org.

And the next thing you know, the US State Department and the CIA are all over the situation and, whaddaya know, the Maidan Square in Kiev fills up with screaming neo-Nazis and Mr. Yanukovych gets the bum’s rush — and despite the major screw-up, the Manafort and the Podesta swim off with a cool few million in fees and return to the comforts of the swamp where they finally part ways. Mr. Mueller is apparently concerned about just what happened with those fees. Possibly the loot ended up getting washed and rinsed through an international banking laundromat, and somehow went unreported to the federal tax authorities.

Of course, the charge raises some interesting questions, such as: were Manafort and Podesta over in Ukraine as opportunistic freelancers, or were they part of phase one of a US government effort to get Ukraine to sign up for Team West against its old Uncle Russia, the manager of Team East? Kind of seems like that was exactly what they were doing, so it will be interesting to see whether Mr. Mueller may have stepped into a big pile of dog shit on his way to the Manafort plea session in federal court.

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Please stop it.

Vulnerable Migrant Groups Must be Removed from Greek Island – MSF (GR)

Greek authorities must remove children and other vulnerable groups from the Moria refugee camp on Lesvos as their physical and mental health is in danger, the Medecins Sans Frontieres (MSF) aid agency said on Monday. A total 615 migrants arrived on Lesvos island in the past three days, local authorities say, adding to the already overcrowded Moria migrant registration center and making living conditions hazardous to public health. The MSF suggests that at least the vulnerable groups (children, elderly, ill) must me moved to the mainland. Overall, there are 11,000 asylum seekers on Lesvos at the moment, with 9,000 of them at the Moria camp.

The policy of over-concentrating migrants and refugees in the Greek islands has led to more than 9,000 people — one third of them children — to be packed in the Moria camp, which has a maximum capacity of 3,000 people, MSF says. “Every week, Medecins Sans Frontieres teams see incidents of adolescents who have attempted suicide or make self-inflicted wounds. They also offer help in serious incidents of violence and self-harm. The lack of access to emergency medical care shows the significant gaps in the protection of children and other vulnerable groups,” the aid agency statement says.

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Picked the story up yesterday on Twitter. Tyler doesn’t do the greatest write-up, but I can’t really repost the AP thing either. WikiLeaks was very clear in its reaction:

“”Mr. Assange did not apply for such a visa at any time or author the document. The source is document fabricator & paid FBI informant Sigurdur Thordarson who was sentenced to prison for fabricating docs impersonating Assange, multiple frauds & pedophilllia.”

Pointing to this 3-year old Iceland news article: https://grapevine.is/news/2015/09/25/siggi-the-hacker-gets-3-years-in-prison/.

“Thordarson distributed these docs to Scandinavian media outlets years ago who found them to be untrustworthy. Thorsdarson, a proven serial document fabricator & media hoaxer has been released, so the docs are being recycled yet again.”

Looks like AP was had. Why they run with it anyway is unclear. Due diligence, anyone? Yeah, they claim to have talked to FIVE different Wikileaks people, all anonymous of course. AP claims to have 1000s of docs, and this is the best they can get out of all that?

WikiLeaks Slams AP “Assange Letter” As Fake, Denies He Sought Russian Visa (ZH)

For years international media outlets worked collaboratively with WikiLeaks to publish leaked files on subjects ranging from the Iraq and Afghan wars to Syria to State Department diplomatic cables, but now it’s WikiLeaks itself that media outlets are attempting to expose. An exclusive Associated Press story claims that WikiLeaks founder Julian Assange sought to obtain a Russian visa as his legal troubles and pressures from Western politicians grew. This comes after US officials have long sought to smear Assange as a Russian asset and the WikiLeaks organization as a whole as working with Russian intelligence.

The AP has published a letter it says is from a WikiLeaks laptop and penned by Julian Assange only days after the group made world headlines by publishing hundreds of thousands of US diplomatic cables in 2010, however WikiLeaks immediately disputed the authenticity of the letter. The AP story begins as follows: “Julian Assange had just pulled off one of the biggest scoops in journalistic history, splaying the innards of American diplomacy across the web. But technology firms were cutting ties to his WikiLeaks website, cable news pundits were calling for his head and a Swedish sex crime case was threatening to put him behind bars. Caught in a vise, the silver-haired Australian wrote to the Russian Consulate in London. “I, Julian Assange, hereby grant full authority to my friend, Israel Shamir, to both drop off and collect my passport, in order to get a visa,” said the letter, which was obtained exclusively by The Associated Press.

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Amazon is scary.