Aug 182022
 


Odilon Redon Fallen angel 1872

 

Something is Looming Geopolitically, We Better Start Taking It Seriously (CTH)
A Eurasian Jigsaw: BRI and INSTC (Escobar)
Russia Urges International Inspection Of Shelled Nuclear Site (RT)
Europe’s Powers Gave Ukraine No New Military Pledges In July (Pol.eu)
Ukraine Could Be Put On ‘Ammo Diet’ – US Military Expert (RT)
Germany Declares War On Europe And Refuses To Ban Russians (CdS)
Putin First, Populists Next – Who To Blame For The Energy Crisis? (RT)
Russia Names Main Victim Of US Energy ‘Victory’ (RT)
Government Must Quickly Start Repairing Purchasing Power – Professor (AD)
Central Bank Warns Gov’t: Be Cautious With Purchasing Power Repairs (NOS)
UK Green Party Calls For Nationalisation Of Big Five Energy Firms (G.)
Audio Tapes In Bill Clinton’s Sock Drawer And Mar-a-Lago Search Dispute (JTN)
FBI Sought Documents Trump Hoarded for Years, Including about Russiagate (NW)
CDC Admits To Botched Covid-19 Responses (RT)

 

 

 

 

 

 

 

 

Roth

Roth/Ratner

 

 

France

 

 


Gas & electricity bill for a business owner in the South of Italy. – July 2021: EUR 120k – July 2022: EUR 979k In his own words: ”A holiday in July would have been more profitable than running my business with these input costs”

 

 

 

 

 

 

Lawyer sundance: “.. the think-tanks and high-minded climate change ideologues do not have the ability to manage a transition and still meet the needs of people..”

Something is Looming Geopolitically, We Better Start Taking It Seriously (CTH)

As a result of western governments’ taking collective action under the auspices of a ‘climate change’ agenda, we are on the cusp of something happening with ramifications that no one has ever seen before. Western governments’, specifically western Europe, North America (U.S-Canada) and Australia/New Zealand, are intentionally trying to lower economic activity to meet the intentional drop in energy production. This is the core consequence of the Build Back Better agenda as promoted by the World Economic Forum. Anyone who says there is a reference point to determine both the short-term and long-term consequences is lying. There is no precedent for nations’ collectively and intentionally trying to reduce economic activity.

Hiding behind the false justification that current inflation is driven by too much demand, central banks in Europe, the Bank of England, Bank of Canada and U.S. federal reserve are raising interest rates. The outcome we are currently feeling is an intentional economic contraction and global recession. The Build Back Better monetary policy is successfully shrinking western economic activity; however, the impacted nations that produce goods for markets in North America and Europe, specifically southeast Asia, Japan and China, are not raising interest rates in an effort to try and offset the drop in demand. China has announced they are dropping their central bank rates in a desperate effort to lower costs and keep their export dependent economy working.

Underneath all of this, is a drop in energy production in the same nations trying to lower economic activity. The political policymakers are attempting to manage this process without informing the citizens of the unspoken goal. Shortages of oil, coal and natural gas are self-inflicted problems, all part of the BBB agenda. Beyond the massive increases in energy costs, which is the true source of inflation and a direct/intentional outcome of the BBB effort, Europe is now facing a looming winter without the energy resources to heat homes and sustain people. Things are going to be very uncomfortable in Europe this winter as roaming brownouts are now predicted.

As the collective west attempts to, using their words, “manage the transition,” they do not have mechanisms to control an outcome of this magnitude. It is simply too big a situation to manage. Where the rubber meets the road, the think-tanks and high-minded climate change ideologues do not have the ability to manage a transition and still meet the needs of people. Beyond the esoteric thinking, there are real consequences from these actions.

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What would we know about modern Asian politics without Pepe Escobar?

A Eurasian Jigsaw: BRI and INSTC (Escobar)

There’s no question that the proxy war in Ukraine between the US and Russia has been creating serious problems for BRI expansion. After all, the US war on Russia is also a war against BRI. The top three BRI corridors from Xinjiang to Europe are the New Eurasian Land Bridge, the China-Central Asia-West Asia Economic Corridor, and the China-Russia-Mongolia Economic Corridor. The New Eurasian Land Bridge uses the Trans-Siberian and a second link through Xinjiang-Kazakhstan (via the dry land port of Khorgos) and then Russia. The corridor via Mongolia is in fact two corridors: one from Beijing-Tianjin-Hebei to Inner Mongolia and then Russia; and the other from Dalian and Shenyang and then to Chita in Russia, near the Chinese border.

As it stands, the Chinese are not using Land Bridge and the Mongolian corridor as much as before, mainly because of western sanctions on Russia. The current BRI emphasis is via Central Asia and West Asia, with one branch then bisecting toward the Persian Gulf and on the Mediterranean. And this is where we see another – highly complex – level of intersection quickly developing: how the increasing importance for China of Central Asia and West Asia mixes with the increasing importance of the INSTC for both Russia and Iran in their trade with India. Call it the friendly vector of the War of Transportation Corridors.

The hardcore vector – real war – is already being deployed by the usual suspects. They are predictably bent on destabilizing and/or smashing any node of BRI/INSTC/EAEU/SCO Eurasia integration, by any means necessary: be it in Ukraine, Afghanistan, Balochistan, the Central Asian “stans” or Xinjiang. As far as the major Eurasian actors are concerned, that’s bound to be an Anglo-American train to nowhere.

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Someone will find excuses not to go. They first need to hide evidence.

Russia Urges International Inspection Of Shelled Nuclear Site (RT)

Russia is calling on the International Atomic Energy Agency (IAEA) to visit the Zaporozhye nuclear power plant as soon as possible to fulfill its mandate as the UN’s nuclear watchdog, a senior Russian diplomat said. “We would like such an IAEA mission to take place soon. Russia will do its best to facilitate it,” Igor Vishnevetsky, the deputy foreign minister for arms control, said during a Nuclear Nonproliferation Treaty conference on Wednesday. The inspection was supposed to happen sometime ago, he added, but was derailed “not due to a fault of ours.” The diplomat pointed the finger at Ukraine, saying that its regular attacks on the nuclear site was why it was not safe for IAEA monitors to visit it. “People should not attack nuclear sites, should not use artillery or other weapons against nuclear power plants,” Vishnevetsky stressed.


“The Ukrainian side knows it very well, and nevertheless does it, effectively committing acts of nuclear terrorism.” The Ukrainian power plant, the largest of its kind in Europe, comes under regular artillery shelling. One projectile this week reportedly struck ten meters from a container holding spent nuclear fuel. Kiev denies carrying out the strikes and claims that Russian troops are shelling the plant to discredit Ukraine. It also accused Russia of stationing its military forces at the Zaporozhye plant. The UN would neither confirm nor deny allegations by either side and called for a demilitarized zone around the nuclear facility. The US said that Russia had to cede control of the plant and the city of Energodar, where it’s located, to Ukraine, to prevent the risk of a nuclear disaster.

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“..European military aid commitments for Ukraine have been on a downward trend since the end of April…”

Europe’s Powers Gave Ukraine No New Military Pledges In July (Pol.eu)

Throughout all of July, Europe’s six largest countries offered Ukraine no new bilateral military commitments, according to new data — the first month that had happened since Russia invaded in February. The revelation is a sign that despite historic shifts in European defense policy — which have seen once reluctant countries like France and Germany ship arms to Ukraine — military aid to Ukraine may be waning just as Kyiv launches a crucial counteroffensive. The fresh data, covering the U.K., France, Germany, Spain, Italy and Poland and set for release on Thursday, comes from the Kiel Institute for the World Economy, which has been maintaining a Ukraine Support Tracker throughout the war.

It illustrates a point Ukrainian military officials and politicians have been repeatedly making: That major European powers are not keeping up with the military aid coming from the U.S., and that having led the charge, big-hitting Britain and Poland may be running out of steam. Military specialists and some members of European Parliament have increasingly echoed the point recently. Christoph Trebesch, head of the team compiling the Ukraine Support Tracker, said the organization’s data showed European military aid commitments for Ukraine have been on a downward trend since the end of April. “Despite the war entering a critical phase, new aid initiatives have dried up,” he said.

Western allies did meet last week in Cophenhagen to gather pledges for boosting Ukraine’s military, amassing €1.5 billion in commitments. But Trebesch, who said his team is still analyzing the numbers, cautioned the figure “is meager compared to what was raised in earlier conferences.” Trebesch argued that European countries should be considering the Ukraine war as more akin to the eurozone crisis or the coronavirus pandemic, two events that promoted the Continent to funnel hundreds of billions into emergency funding measures. “When you compare the speed at which the checkbook came out and the size of the money that was delivered, compared to what is on offer for Ukraine, it is tiny in comparison,” he said.

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You won’t see it in the rhetoric, but “we” are withdrawing.

Ukraine Could Be Put On ‘Ammo Diet’ – US Military Expert (RT)

Ukraine’s European backers may be about to put the country on an “ammunition diet”, an American military analyst has claimed in an interview with Germany’s Der Spiegel. Michael Kofman said these nations may already have reached their limit in terms of weapons supplies to Kiev. In an article published on Tuesday, Kofman was quoted as saying it is not in the Ukrainian military’s best interests to bide its time, as the weather will soon begin to worsen, making any counteroffensive more difficult to pull off. On top of that, according to the US expert, Russian troops could use a hiatus to regroup and “solve some of their personnel problems.” He noted that time would be on Kiev’s side if Western support was unlimited. However, that is likely not the case, and the Ukrainian leadership is well aware of this, Kofman suggested.

He added that the “Ukrainians are apparently quite concerned about for how long they can expect further support, especially from the Europeans.” The analyst went on to suggest that Kiev’s European backers may already have “given Ukraine most of the weapons they are ready to give.” “The Ukrainians will likely go on a kind of ammunition diet,” Kofman predicted. The analyst told journalists that, with this in mind, the leadership in Kiev may be concerned that Ukraine “could come under pressure to accept the stalemate” in the absence of any major success by the start of next year. Such a scenario “would be a defeat for Ukraine,” he noted. Kofman concluded that Kiev’s ability to reclaim territories seized by Russia ultimately hinges on the extent of its Western support.

He also acknowledged “some small Russian successes in the southern part of Donbass, like in Peski,” adding, however, that the offensive is largely being carried out by the militaries of the Donetsk People’s Republic (DPR) and the Lugansk People’s Republic (LPR), as well as by “Wagner mercenaries.” When asked about the possibility of a Ukrainian counteroffensive to reclaim the southern city of Kherson, which is currently held by Russian forces, Kofman pointed out that while Kiev has a lot of personnel on paper, only a limited number of units are “really trained and equipped for that.”

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Translated from Le Courrier du Soir. “The European Union on the brink of a new unprecedented political crisis.”

Germany Declares War On Europe And Refuses To Ban Russians (CdS)

The European Union on the brink of a new unprecedented political crisis. Less than a year after the violent crisis over Russian gas which had deeply divided the Union, it is now the thorny issue of the visa granted to Russian citizens which risks provoking a real internal war. Indeed, it all started a few days ago when the Ukrainian President, Zelensky, asked that European countries prohibit access to their soil to all Russian nationals. His wishes seem granted because for three days, EU countries have been working hard to stop granting visas to Russians. But the project risks leading to a total fiasco because Germany, Europe’s leading economic power, is firmly opposed to it. This is at least the information that Lecourrier-du-soir.com obtained on August 16 from several reliable sources including the Euronews media.

Indeed, according to information provided by this press organ, German Chancellor Olaf Scholz expressed his disagreement (on this subject) during a trip to Oslo. In front of the press, his remarks were blunt. “This is not the Russian people’s war. It’s Putin’s war and we have to be clear about it,” he said. The German Chancellor also made a point of pointing out that several Russian citizens are fleeing Russia because they are not in phase with the policy of the regime in place. Meanwhile, the subject is already on the table but could trigger a new political crisis within the EU where some believe that banning Russians from entering Europe is a good move. This is at least the opinion of Kaja Kallas, Prime Minister of Estonia who, in a tweet posted on August 09, did not mince words.

“Stop granting visas to Russians. Visiting Europe is a privilege, not a human right. Airspace must be closed. This means that while Schengen countries continue to issue visas, Russia’s neighbors bear the burden. It is time to end tourism from Russia immediately”, she reacted. And Estonia is not the only European country to refuse to grant visas to Russians. Because, on August 14, in a tweet posted on his official account, Andriy Yermak, close to the Polish president, also made it known that his country will prohibit access to its territory to all Russian nationals.

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“..close the local swimming pool amid the record summer heat, citing a choice between the cost of feeding school kids increasingly pricy organic food in the cafeteria… or keeping the facility open.”

Putin First, Populists Next – Who To Blame For The Energy Crisis? (RT)

At the outset of the Ukraine conflict, Western officials proclaimed their unity against Moscow and vowed to accelerate their transition away from Russian fossil fuels and towards greener energy. The idea was to deprive the Kremlin of revenues which, in their minds, would result in defunding the military operation in Ukraine. So they went full scorched-earth on their own cheap energy supply – that is, gas from Europe’s largest country – and sanctioned it. It wasn’t long before it became obvious that was something much easier said than done. Soon, officials started making public requests of their citizens to “do their part” by sacrificing their everyday comforts and quality of life, like taking shorter showers – as though that would remedy the fact that industrial representatives were already sounding the alarm about rationing and manufacturing shortages.

Next, Western officials started backpedalling on their pledges to eradicate those forms of energy they had previously considered non-green. It was barely a few months earlier that Germany was chastising France for persisting with nuclear energy. Now, Berlin may potentially be joining Paris in turning back to it as a source, all while it also fires the old coal plants back up. Western Europeans had initially figured that they could at least maybe rely on hydroelectric energy from Norway, but the dry summer heat now threatens that, too, as Oslo considers cuts to its exports. And even liquified natural gas from Britain may not be exportable to the EU, since toxic and even radioactive contaminantshave recently been found in the supply originally sourced from countries like the US and Qatar.

The first flickers of real trouble are already evident – well ahead of the winter heating boom. The British consulting firm, Cornwall Insights, is warning of possible planned blackouts and empty shelves in Britain. Average household energy costs in the UK have reached £4,000 ($4,860) per year and are estimated to go even higher. The Bank of England is warning of a recession amid inflation which, in Germany, has just hit the highest level since reunification in 1990. Countries like Spain and Italy are imposing limits on heating and air conditioning in both public and commercial buildings. The EU’s imposition of a 15% energy cut across all member states has just come into effect, providing yet another pretext to reduce services to taxpayers. The mayor of the French town of Cabriès used it as an excuse to close the local swimming pool amid the record summer heat, citing a choice between the cost of feeding school kids increasingly pricy organic food in the cafeteria… or keeping the facility open.

And whose fault is all this? It should seem obvious, no? Western officials cut themselves off from their own energy source in order to play geopolitics by pulling Ukraine into their orbit – but the blame is squarely on Russia. That’s what they said and that’s what they’re doubling down on. Britain’s Daily Mail refers in a graphic to Putin cutting the gas supply. “Putin’s new gas squeeze condemns Europe to recession and a hard winter of rationing,” according to a CNBC headline. US President Joe Biden has framed it as “Putin’s tax on both food and gas.”Yet these officials did it to themselves – and to their citizens – “for Ukraine.”

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“US attempts to divide the energy markets into ‘good’ and ‘bad’ leads to destabilization, rising fuel prices and inflation..”

Russia Names Main Victim Of US Energy ‘Victory’ (RT)

Europe’s current woes with natural gas supplies are due to US pressure to block the Nord Stream 2 pipeline from coming online, Russian ambassador in Washington Anatoly Antonov said in a TV interview on Wednesday. With this, he said, the US won a victory not so much over Russia, but over European industry, which now has to rely on far more expensive American “molecules of freedom.” “No matter how much Washington tries to present Russia as an unreliable supplier, this is not true,” Antonov told Russia-24 in an interview that aired Wednesday evening. “The problems of our buyers began solely as a result of sanctions and restrictions imposed or inspired by the US,” the ambassador added. “We are ready to sell to everyone who needs inexpensive and high-quality resources.”

He cited the example of Nord Stream 2, the pipeline under the Baltic Sea that was supposed to deliver natural gas from Russia to Germany. It was completed last year but Berlin halted its certification in February – prior to the escalation of hostilities in Ukraine – and refused to make it operational despite appeals from German industry and local officials to do so. “The pipeline was ready to launch and could solve almost all the supply problems that arose with [Nord Stream 1] due to the sanctions confusion,” Antonov said. “The only thing missing is political will, the EU states just need to press the button and the pipeline will start working. But in the EU capitals they gave in to persistent pressure from the White House. As a result, a bet was made on expensive LNG.”

Liquefied natural gas is exported by the US in quantities nowhere near sufficient for the European market. Antonov made a pointed reference to the US Department of Energy calling it “molecules of freedom” back in 2019. Nord Stream 2 was a victory for Washington, which “struck a massive blow not so much against Russia, but against European competitiveness,” Antonov said. Addressing the reports that the US and its allies are trying to impose a price cap on Russian oil and gas exports, Antonov pointed out that such attempts would backfire, as there would be a realignment of commodity markets “not in favor of Western countries.” “US attempts to divide the energy markets into ‘good’ and ‘bad’ leads to destabilization, rising fuel prices and inflation,” Antonov said.

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Google translate from Dutch. Don’t think this guy buys his own groceries.

Government Must Quickly Start Repairing Purchasing Power – Professor (AD)

The passive attitude of the cabinet to protect the purchasing power of citizens is incomprehensible, says Tilburg economics professor Harald Benink. “A lot was possible quickly during the corona pandemic, now it is going very slowly.” High inflation, especially the high prices for energy and food, will become a huge problem, Benink predicts. “It is unprecedented what is happening with purchasing power. Energy bills that go from 2000 euros to 6000 euros per year. New families are confronted with this every day. And then the groceries are also 10 to 20 percent more expensive,” says Benink. High inflation threatens to put millions of households in financial trouble. And that will lead to more problems, Benink fears. “There will be a great demand for debt relief. But the municipalities do not have the capacity to help all those people at all.”

Benink foresees major economic damage if nothing is done to repair purchasing power. Sooner or later people will have to cut their spending. An economic contraction of more than 4 percent is then possible. And it’s not just about low-income people, middle-income people are also affected by the declining purchasing power.” Added to this is the consequential damage of problematic debts. People get stressed by money problems and that leads to illness, failure and reduced productivity. According to Benink, the government is probably so passive because they underestimated the increase in energy prices. “It was immediately clear during the corona pandemic that it was a major problem. A package of tens of billions of aid was quickly rigged. Now it is less than 10 billion euros.”

While it is the government’s turn, the professor believes. “It is a classic government function to protect people against uninsurable risks. And that’s inflation. You cannot get vaccinated against that. It’s a tsunami that’s hitting the people.” Benink thinks the cabinet will have to come up with a mix of measures to repair purchasing power. Targeted support for lower and middle incomes. I am thinking of the proposal from the Eneco director who wants an income-related energy discount. But it will also be possible to take generic measures, such as a further reduction in VAT or lower income tax.” Money is not the problem. “For example, if we spend 8 billion extra, the government debt will increase by one percentage point. We can have that easily. Doing nothing costs a lot more.”

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Ha! Also Google translate from Dutch. The Central bank plays with fire. Not a matter for a central bank. The government should talk to Russia.

Central Bank Warns Gov’t: Be Cautious With Purchasing Power Repairs (NOS)

The government is under great pressure to do something about sky-high inflation and high energy bills and is considering measures to compensate for rising prices and save purchasing power. However, the Dutch Central Bank (DNB) warns the cabinet against excessively generous financial support measures, because this could be counterproductive and actually fuel inflation. In NRC, DNB director Olaf Sleijpen argues for restraint in compensating companies and households for the increased prices. It is true that companies and households were kept afloat during the corona crisis in 2020 and 2021 with aid measures costing billions of euros, but the current price crisis works differently. “Large-scale support is now unwise and even counterproductive”, says Sleijpen. “During the corona crisis, we benefited from broad financial support – and therefore a decisive role for the government. Now we are not. As difficult as that message is, we can’t get around it.”

The cause of the high inflation is not in demand but in supply, because there is a scarcity and shortage of products and energy. Financial support does not remedy scarcity, but it does stimulate demand and thus fuel prices. “The ECB is trying to slow down demand with its interest rate policy. If the government presses the accelerator at the same time, it does not help to reach the destination (lower inflation),” Sleijpen told the newspaper. On the other hand, DNB shares the concerns about the major economic and social consequences of the rising prices of energy and groceries. Payment problems are looming for low-income households. “It goes without saying that the government will at least address the worst needs, and really focus on the hardest hit households.”

However, generic measures, such as lower energy taxes and fuel taxes, mainly benefit the higher incomes who do not need them. Additional income support measures should also not lead to a larger budget deficit. “Financing income compensation with a higher government debt means that the bill is passed on to the next generations,” says Sleijpen. The idea of asking employers to raise employees’ wages to keep up with rising inflation has raised eyebrows at DNB. It must be “an appropriate wage increase”. “We do not benefit from the full effect of inflation on wages”. There is as yet no sign of the feared wage-price spiral, DNB notes. and so there is room for stronger wage growth for the time being.

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Saw a pic of this on Twitter. Went looking on the Guardian frontpage, nothing. Their UK page: nada. Went through Google search in the end. So they finally publish something useful, and then try to hide it. But it’s not about the Green Party, or even the UK: we will see this discussion in many European countries.

UK Green Party Calls For Nationalisation Of Big Five Energy Firms (G.)

The Greens have called for the permanent nationalisation of the main energy supply companies and for domestic fuel bills to be reduced to the level of last autumn, describing this as a solution to the failed experiment with a market-based energy system. In a proposal that goes well beyond Labour’s idea for a freeze on energy bills for at least six months, the Greens said nationalising the main five energy firms was a necessary part of a plan sufficiently ambitious “to avoid a catastrophe this winter”. The scheme would be based on one proposed by the TUC last month. This was based on a cost of about £2.85bn to nationalise the big five supply firms – British Gas, E.ON, EDF, Scottish Power and Ovo. As a comparison, the government spent £2.2bn bailing out another firm, Bulb.

The Green plan would also involve the energy price cap – the maximum households can pay – being put back to the level of last autumn, before this April’s increase of nearly £700 a year for the average household. Putting this in place throughout the autumn and winter would cost about £37bn, the party said, compared with the £29bn estimated cost of Labour’s proposal to keep the cap at its current level. The cost would be paid for in part by tightening up the government’s windfall tax on oil and gas firms’ extra profits from higher global prices, and the party also proposes higher taxes for very wealthy people. Carla Denyer, a co-leader of the Greens alongside Adrian Ramsay, said the party would also aim to create more energy efficiency by introducing differential tariffs under which households that use a lot of power face proportionally rising prices, with exceptions for people with disabilities or chronic health conditions.

The party is already committed to a mass programme of home insulation to improve energy efficiency. “This experiment with an energy supply market has failed,” Denyer said. “Only the government can intervene at the scale required to avoid a catastrophe this winter.” She said there was “nationwide anxiety about the prospect of unpayable energy bills”, adding: “Other parties have only offered to fix energy prices at current levels, but we know these are already unaffordable. We would return energy prices to an affordable level.” s

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I sense a link with Melania’s underwear.

Audio Tapes In Bill Clinton’s Sock Drawer And Mar-a-Lago Search Dispute (JTN)

When it comes to the National Archives, history has a funny way of repeating itself. And legal experts say a decade-old case over audio tapes that Bill Clinton once kept in his sock drawer may have significant impact over the FBI search of Melania Trump’s closet and Donald Trump’s personal office.= The case in question is titled Judicial Watch v. National Archives and Records Administration and it involved an effort by the conservative watchdog to compel the Archives to forcibly seize hours of audio recordings that Clinton made during his presidency with historian Taylor Branch. For pop culture, the case is most memorable for the revelation that the 42nd president for a time stored the audio tapes in his sock drawer at the White House. The tapes became the focal point of a 2009 book that Branch wrote.

U.S. District Judge Amy Berman Jackson in Washington D.C. ultimately rejected Judicial Watch’s suit by concluding there was no provision in the Presidential Records Act to force the National Archives to seize records from a former president. But Jackson’s ruling — along with the Justice Department’s arguments that preceded it — made some other sweeping declarations that have more direct relevance to the FBI’s decision to seize handwritten notes and files Trump took with him to Mar-a-Lago. The most relevant is that a president’s discretion on what are personal vs. official records is far-reaching and solely his, as is his ability to declassify or destroy records at will.

“Under the statutory scheme established by the PRA, the decision to segregate personal materials from Presidential records is made by the President, during the President’s term and in his sole discretion,” Jackson wrote in her March 2012 decision, which was never appealed. “Since the President is completely entrusted with the management and even the disposal of Presidential records during his time in office, it would be difficult for this Court to conclude that Congress intended that he would have less authority to do what he pleases with what he considers to be his personal records,” she added.

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FBI cover-up.

FBI Sought Documents Trump Hoarded for Years, Including about Russiagate (NW)

The FBI raid on Mar-a-Lago last Monday was specifically intended to recover Donald Trump’s personal “stash” of hidden documents, two high-level U.S. intelligence officials tell Newsweek. To justify the unprecedented raid on a former president’s residence and protect the source who revealed the existence of Trump’s private hoard, agents went into Trump’s residence on the pretext that they were seeking all government documents, says one official who has been involved in the investigation. But the true target was this private stash, which Justice Department officials feared Donald Trump might weaponize. “They collected everything that rightfully belonged to the U.S. government but the true target was these documents that Trump had been collecting since early in his administration,” says the source, who was granted anonymity to discuss sensitive issues.

The sought-after documents deal with a variety of intelligence matters of interest to the former president, the officials suggest—including material that Trump apparently thought would exonerate him of any claims of Russian collusion in 2016 or any other election-related charges. When Trump left the White House in January 2021, many of the normal processes of transition were not followed, especially because the president would not admit that he had lost the election or that he would be leaving office. As a result, we now know, some 42 boxes of documents were shipped to Mar-a-Lago by mistake: officials papers under U.S. law, which the National Archives is supposed to take custody of and catalog.

Over the past 18 months, the Trump camp and the Archives were engaged in a back-and-forth which resulted in the return of 15 boxes (and some additional documents). As late as June 3, when officials from the FBI and Justice visited Mar-a-Lago to serve a Grand Jury subpoena for specific documents, these negotiations were largely cordial. But in the course of its investigation, the FBI and Justice became aware of Trump’s private collection. As Newsweek previously reported, a confidential human source revealed that the former president wasn’t planning to divulge that he had possession of some of his own documents and that he did not intend to return them.

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Disband. First fire Walensky.

CDC Admits To Botched Covid-19 Responses (RT)

The CDC has acknowledged flaws in its response to the Covid-19 pandemic and announced plans to restructure the agency to rehabilitate its public image and better respond to future public health crises. “For 75 years, CDC and public health have been preparing for COVID-19, and in our big moment, our performance did not reliably meet expectations,” CDC director Dr. Rochelle Walensky said on Wednesday. “As a long-time admirer of this agency and a champion for public health, I want us all to do better.” The overhaul announcement follows an internal review that found the CDC’s “rigid, compartmentalized bureaucracy” undermined its response to Covid-19 and slowed its data analysis and releases of public advisories. When pandemic guidance was offered, it was often “confusing and overwhelming,” the review found.

The US leads the world in Covid-19 cases and deaths, by far, and the CDC has been criticized for confusing messaging and slow response times. The agency also held back much of the data it collected, in some cases because it feared the information could be “misinterpreted.” For instance, it withheld dataon Covid-19 infections among fully vaccinated Americans and the efficacy of vaccine booster shots for 18- to 49-year-olds. “Our public health infrastructure in the country was not up to the task of handling this pandemic,” Walensky told CBS News on Wednesday. She added, “We learned some hard lessons over the last three years, and as part of that, it’s my responsibility, it’s the agency’s responsibility, to learn from those lessons and do better.”

The CDC also has drawn criticism for its handling of the monkeypox outbreak. The reorganization plan, which will require approval from higher-ups in President Joe Biden’s administration, aims to get information to the public more quickly and speak about health issues in plain English, rather than scientific jargon. Walensky also plans to make the CDC more streamlined, with fewer reporting layers, and to develop a nimbler workforce that is prepared to respond to crises. “We need to have special forces, if you will, to deploy during pandemic times,” she said. Plans also call for creating a new office to promote “equity in health care,” though Walensky didn’t clarify how that would improve pandemic response.

Brilliant Sagan

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Britain’s railways

 

 

 

 

 

 

 


Mark Morris: My family owned an iconic restaurant, Bens Deli, in Montreal for 100 years. This is Leonard Cohen entering its doors in 1965. What a beautiful picture and legacy.

 

 

 

 

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Jan 112020
 
 January 11, 2020  Posted by at 10:50 am Finance Tagged with: , , , , , , , , , ,  5 Responses »


Milton Greene “Actress Marilyn Monroe in bed” 1955

 

US Rejects Iraq Request To Discuss Troop Withdrawal (R.)
US, Iran Used An Encrypted Swiss Fax Machine To Defuse Crisis (ZH)
Iran Admits It Shot Down Ukrainian Plane (AlJ)
The Cost of Debt-Financed War (Peltier)
Trump Impeachment Charges May Go To Senate As Early As Next Week (R.)
How’s This Working Nancy? (Kunstler)
Central Bankers Are Quietly Freaking Out About How To Fight The Next Recession (F.)
Boeing’s Ousted CEO Departs With $62 Million, Even Without Severance Pay (R.)
FAA Seeks To Fine Boeing $5.4 Million For Defective Parts On 737 MAX (R.)
Key Boeing 737 MAX Supplier Spirit Aerosystems To Cut 2,800 Jobs (CNBC)
Joe Biden Gets $Millions In TV Ads In Iowa From Undisclosed Donors (IC)

 

 

Cue mass demonstrations. Here’s where the US empire is drawing to a close. See the video for those who resist that close.

US Rejects Iraq Request To Discuss Troop Withdrawal (R.)

The United States rebuffed an Iraqi request on Friday to prepare to pull out its troops, amid heightened US-Iranian tensions following the US killing of Iranian commander Qassem Soleimani. Seeking to tighten pressure on its rival, the US, meanwhile, imposed more sanctions on Iran, responding to an attack on US troops in Iraq launched by Tehran in retaliation for the assassination of Soleimani. Iraq looks set to bear the brunt of any further violence between neighbouring Iran and the US. Its leaders are caught in a bind as Washington and Tehran are also the Iraqi government’s main allies and vie for influence there.

Iraq’s caretaker prime minister, Adel Abdul Mahdi, made his request in a phone call with US Secretary of State Mike Pompeo late on Thursday in line with a vote by Iraq’s parliament last week, his office said in a statement. Abdul Mahdi asked Pompeo to “send delegates to put in place the tools to carry out the Parliament’s decision,” it said, adding without elaborating, that the forces used in the killing had entered Iraq or used its airspace without permission. However, the US State Department said any US delegation would not discuss the withdrawal of US troops as their presence in Iraq was “appropriate”. “There does, however, need to be a conversation between the US and Iraqi governments not just regarding security, but about our financial, economic, and diplomatic partnership,” spokeswoman Morgan Ortagus said in a statement.

The latest flare-up in the long shadow-war between Iran and the US started with the killing of Soleimani in a US drone attack on January 3. Iran responded on Wednesday by firing missiles at US forces in Iraq. In the aftermath, both sides backed off from intensifying the conflict but the region remains tense, with Iranian commanders threatening more attacks. [..] Iraq’s top Shia leader on Friday condemned the US-Iranian confrontation taking place on Iraqi soil, saying it risked plunging an already war-ravaged country and the wider Middle East into deeper conflict. Grand Ayatollah Ali al-Sistani said it was Iraqis who stood to suffer most from the US-Iranian conflict.

In a message delivered through a representative at Friday prayers in the holy city of Karbala, al-Sistani said no foreign powers should be allowed to decide Iraq’s fate. “The latest dangerous aggressive acts, which are repeated violations of Iraqi sovereignty, are a part of the deteriorating situation” in the region, al-Sistani said. Al-Sistani, who wields huge influence over public opinion in Iraq, only weighs in on politics during times of crisis and is seen as a voice of moderation. “The people have suffered enough from wars … Iraq must govern itself and there must be no role for outsiders in its decision-making,” Sistani said.

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As Russiagate showed with great clarity, presidents must be able to talk to each other. Safety requires it.

US, Iran Used An Encrypted Swiss Fax Machine To Defuse Crisis (ZH)

Even as Trump was rage-tweeting on Jan 4, two days after the killing of Iran’s top military leader Qassem Soleimani, that he would hit 52 targets including Iranian heritage sites for potential retaliation if America suffered losses following an Iranian attack, warning that “those targets, and Iran itself, WILL BE HIT VERY FAST AND VERY HARD”, the US president was busy, secretly using an encrypted back-channel to bring the world back from the brink of war. As the WSJ reports, just hours after the U.S. strike which killed Iranian Maj. Gen. Qassem Soleimani, the Trump administration sent an urgent back channel message to Tehran: “Don’t escalate.”

The encrypted fax message was sent via the Swiss Embassy in Iran, one of the few means of direct, confidential communication between the two sides, U.S. officials told the WSJ. Then, in frantic attempts to de-escalate even as top US and Iranian leaders were stirring patriotic sentiment and nationalistic fervor, the White House and Iranian leaders exchanged further messages in the days that followed, which officials in both countries described as far more measured than the fiery rhetoric traded publicly by politicians.

It worked: a week later, and after a retaliatory, if highly theatrical, Iranian missile attack on two military bases hosting American troops that purposefully inflicted no casualties, Washington and Tehran have stepped back from the brink of open hostilities (for now). “We don’t communicate with the Iranians that much, but when we do the Swiss have played a critical role to convey messages and avoid miscalculation,” a senior U.S. official said. While a spokesman at Iran’s mission to the United Nations declined to comment on the exchanges, he said “we appreciate [the Swiss] for any efforts they make to provide an efficient channel to exchange letters when and if necessary.” Another Iranian official said the back channel provided a welcome bridge, when all others had been burned: “In the desert, even a drop of water matters.”

[..] The first American fax was sent immediately after Washington confirmed the death of Soleimani, the most important figure in Iran’s Islamic Revolutionary Guard Corps, the U.S. officials said. It arrived on a special encrypted fax machine in a sealed room of the Swiss mission – the most enduring, and secret, method since the 1979 Islamic Revolution – for the White House to exchange messages with Iran’s top leadership, especially when the two nations are concurrently parading in public media in their bellicose propaganda to earn political brownie points. The equipment operates on a secure Swiss government network linking its Tehran embassy to the Foreign Ministry in Bern and its embassy in Washington, say Swiss diplomats. Only the most senior officials have the key cards needed to use the equipment.

Former Swiss ambassadors say the diplomatic channel is effective because the U.S. and Iran can trust a message will remain confidential, be delivered quickly, and will reach only its intended recipients.

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Allegedly, Khameini personally intervened. There are too many voices speaking for Tehran.

Iran Admits It Shot Down Ukrainian Plane (AlJ)

Iran has announced that its military “unintentionally” shot down a Ukrainian jetliner, killing all 176 on board. The statement on Saturday morning blames “human error” for the incident, adding that the military mistook Flight 752 for a “hostile target”. Press TV also quoted Iran’s General Staff of the Armed Forces as saying that the plane had flown close to a “sensitive military site”. The military said it was at its “highest level of readiness” amid the heightened tensions with the United States. “In such a condition, because of human error and in a unintentional way, the flight was hit,” the military said. It apologised and said it would upgrade its systems to prevent future tragedies.

In a statement posted on social media, Iranian President Hassan Rouhani wrote that the country “deeply regrets this disastrous mistake”. “My thoughts and prayers go to all the mourning families. I offer my sincerest condolences,” he said, adding that “investigations continue to identify and prosecute this great tragedy and unforgivable mistake”. Iran had denied for several days that a missile downed the aircraft. But then the US and Canada, citing intelligence, said they believe Iran shot down the aircraft. On Friday, Ali Abedzadeh, head of Iran’s civil aviation authority, said it was impossible due to close coordination between Iran’s air defence and the civil aviation department. “What is obvious for us, and what we can say with certainty, is that no missile hit the plane,” Abedzadeh told reporters in Tehran.

[..] Al Jazeera’s Assed Baig, reporting from Tehran, said questions were now being raised as to why Iranian authorities kept the country’s air space open during a military operation. “There’s a lot of explaining to do by Iranian authorities. People want to know why and how it happened.” In a social media post, Iranian Foreign Minister Mohammad Javad Zarif said that “human error at time of crisis caused by US adventurism led to the disaster”. “Our profound regrets, apologies and condolences to our people, to the families of all victims and to other affected nations.”

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PDF file from Brown University. The changes in US war financing, from war bonds and direct taxation until the Korean War, to limitless borrowing – and interest payments- ever since.

The Cost of Debt-Financed War (Peltier)

Throughout the 18 years the U.S. has been engaged in the “Global War on Terror,” mainly in Iraq and Afghanistan, the government has financed this war by borrowing funds rather than through alternative means such as raising taxes or issuing war bonds. Thus, the costs of the post-9/11 wars include not only the expenses incurred for operations, equipment, and personnel, but also the interest costs on this debt. Since 2001 these interest payments have been growing, resulting in more and more taxpayer dollars being wasted on interest payments rather than being channeled to more productive uses. This paper calculates that the debt incurred for $2 trillion in direct war-related spending by the Department of Defense and State Department has already resulted in cumulative interest payments of $925 billion.

Even if military interventions ceased immediately, interest payments would continue to rise, and will grow further as the U.S. continues its current military operations. War is expensive — in terms of lives lost, physical damage to people and property, mental trauma to soldiers and war-zone inhabitants, and in terms of money. The expense of war is not restricted to the annual budgetary costs of the war spending itself, but also depends upon the way in which war is financed. When war is financed through debt, the costs are much greater than when it is financed through taxation or other revenues, since interest payments must be made as long as the debt is outstanding. In fact, interest payments can sometimes grow to beyond the level of the debt itself, as will likely be the case with the post-9/11 wars.

If war spending ceased immediately, interest payments on the $2 trillion of existing war debt would rise to over $2 trillion by 2030 and to $6.5 trillion by 2050. These interest payments will grow larger as the U.S. continues its post-9/11 military interventions and continues amassing debt to pay for the costs of war. This level of borrowing to pay for the post-9/11 wars has been unique. Since the country’s founding, U.S. wars have been funded at least partly through revenues raised specifically for that purpose, including war bonds and direct taxes levied for war. As noted by Boston University political scientist Rosella Cappella-Zielinski, “Taxation as a percent of war finance was significant during the World Wars, meeting 30 percent of the cost of World War I and almost 50 percent of the cost of World War II, and peaked as a method of war finance during the Korean War, which was fully financed by taxes. Starting with the Civil War and ending with the Korean War, the government made a systematic effort to pay for its wars via direct taxation

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Looks like Pelosi was losing her own people.

Trump Impeachment Charges May Go To Senate As Early As Next Week (R.)

The Democratic-led U.S. House of Representatives will send formal impeachment charges against President Donald Trump to the Senate as early as next week, House Speaker Nancy Pelosi said on Friday, setting the stage for his long-awaited trial. Pelosi, the top Democrat in the House, has been engaged in a three-week cat-and-mouse game with Senate Majority Leader Mitch McConnell over the rules for Trump’s trial in the Republican-controlled Senate. Democrats have demanded it include new witness testimony and evidence about the Republican president’s pressuring of Ukraine to probe former Vice President Joe Biden, a leading Democrat running for the right to face Trump in the November election.


McConnell slammed the door on that idea this week, saying he had enough Republican votes to start the trial without a commitment to hear from additional witnesses, including former Trump national security adviser John Bolton. Democrats are trying to convince a few moderate Republican senators to allow witnesses. One moderate, Senator Susan Collins of Maine, told reporters in her home state that she and a “fairly small group” of her fellow Republican senators are working to ensure witnesses can be called. The Senate is expected to acquit Trump before the 2020 presidential election campaign heats up, as no Republicans have voiced support for ousting him, a step that would require a two-thirds majority.

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Whose side is the Trojan horse on?

Also, if Pelosi makes Adam Schiff a “manager”, can the GOP still call him to testify?

How’s This Working Nancy? (Kunstler)

The case for House members to get access to all that backstage Mueller material could go up to the Supreme Court. In the meantime, Impeachment’s second act is about to get underway whether Mrs. Pelosi likes the terms or not. It’s the Senate’s prerogative to decide. These terms appear to be exactly the same as the ones used by the Senate for Bill Clinton’s impeachment trial — which means that each side chooses a team of “managers” to present its case, and then the managers are subject to grilling by senators. The House Democrats are insisting on calling witnesses solely to maintain their court claim for testimony from the White House counsel, with which the aforesaid Mueller material is associated in the case.

If the rules eschew witnesses, that case is moot, and the Democrats lose access to a trove of political oppo research obtained for them under false pretenses by their own operatives in the Department of Justice. Secondarily, the impeachment was designed to get senators in swing states on the record voting to acquit the president in the hopes that it will somehow taint their re-election prospects and possibly flip control of the Senate to the Democrats. That outcome would above all insure that Mr. Trump could not get another Supreme Court nominee confirmed in his second term, nor continue the wholesale appointment of lesser federal district judges. Plus, of course, it would obstruct any other legislative initiative his party brought for four years.

Personally, I would miss the chance to hear from the so-called “whistleblower” who instigated the impeachment phase of the long-running coup against Mr. Trump. Contrary to the disinformation put out by The New York Times and other coup co-conspirators, the “whistleblower” enjoys no right to anonymity. It would also be satisfying to hear how his enabler, Intel Community IG Michael Atkinson, might account for the process that steered the “whistleblower” to Rep. Adam Schiff and his staff — for instance, back-dating the official documents that green-lighted the “whistleblower’s” case. Mr. Atkinson is deeply implicated himself as a player in the earlier 2017 RussiaGate FISA court mischief, since his previous job was agency counsel to DOJ National Security chief John Carlin, who signed off on fraudulent FISA warrants. Mr. Atkinson must have counseled Mr. Carlin to do that.

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Where the main economic damage continues to emanate from.

Central Bankers Are Quietly Freaking Out About How To Fight The Next Recession (F.)

The world’s top central bank officials are rightly concerned that politicians in rich economies missed one key lesson of the last recession: Interest rate cuts can help to moderate a downturn, but aggressive fiscal policy is key to a healthy recovery. It was a pro-austerity stance both in the United States, and even more saliently in the euro zone, that arguably prolonged the period of high unemployment and low wage growth that plagued most of the decade-long recovery from the 2007-2009 U.S. Great Recession. Outgoing Bank of England Governor Mark Carney told the Financial Times this week that central banks are running low on fuel. “If there were to be a deeper downturn, [that requires] more stimulus than a conventional recession, then it’s not clear that monetary policy would have sufficient space,” he said.


“It’s generally true that there’s much less ammunition for all the major central banks than they previously had and I’m of the opinion that this situation will persist for some time.” That echoed the sentiment of Christine Lagarde, who recently took over the ECB. She’s telling budget-shy European politicians (especially in Germany) to get to work. Now, a new paper from Fed board economist Michael Kiley points to similar alarm among U.S. central bankers about their ability to fight future slumps. Drawing up two basic assumptions of what a downturn might look like, Kiley finds that “a recession may result in near-zero interest rates at long maturities, bringing U.S. experience closer to that seen in Europe and Japan.” This, says Kiley, “could imply limits on the ability of monetary policy to support a recovery.”

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“This is corruption, plain and simple,” U.S. Senator Elizabeth Warren said on Twitter.”

No, Elizabeth, this is legal. Corruption is not. Look it up.

Boeing’s Ousted CEO Departs With $62 Million, Even Without Severance Pay (R.)

Boeing Co’s ousted chief executive officer, Dennis Muilenburg, is leaving the company with $62 million in compensation and pension benefits but will receive no severance pay in the wake of the 737 MAX crisis. Muilenburg was fired from the job in December as Boeing failed to contain the fallout from a pair of fatal crashes that halted output of the company’s bestselling 737 MAX jetliner and tarnished its reputation with airlines and regulators. The compensation figures were disclosed in a regulatory filing late on Friday during a difficult week for Boeing when it also released hundreds of internal messages — two major issues hanging over the company before new CEO David Calhoun starts on Monday.


The messages contained harshly critical comments about the development of the 737 MAX, including one that said the plane was “designed by clowns who in turn are supervised by monkeys.” The 737 MAX has been grounded since March following the second of two crashes that together killed 346 people within a span of five months. “It is incredibly heart wrenching to see the man at the heart of our loss walk away with a reward,” said Zipporah Kuria, whose 55-year-old father from Kenya died in the second crash. Lawmakers also blasted Boeing. “346 people died. And yet, Dennis Muilenburg pressured regulators and put profits ahead of the safety of passengers, pilots, and flight attendants. He’ll walk away with an additional $62.2 million. This is corruption, plain and simple,” U.S. Senator Elizabeth Warren said on Twitter.

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As CEO, Muilenburg was responsible for the installation of defective parts on 737 MAX. His golden handshake is worth about 12 times the FAA’s fine for that. And he doesn’t even have to pay it.

FAA Seeks To Fine Boeing $5.4 Million For Defective Parts On 737 MAX (R.)

The Federal Aviation Administration (FAA) said on Friday it was seeking to fine Boeing $5.4 million, alleging it failed to prevent the installation of defective parts on 737 MAX airplanes. The FAA alleged Boeing “failed to adequately oversee its suppliers to ensure they complied with the company’s quality assurance system, … Boeing knowingly submitted aircraft for final FAA airworthiness certification after determining that the parts could not be used due to a failed strength test.” The FAA proposed a $3.9 million civil penalty against Boeing for the same issue in December involving 133 737 NG airplanes, which is the prior generation of the 737.


The 737 MAX has been grounded since March after two fatal crashes killed 346 people. Boeing’s safety record on a number of issues have come under scrutiny from lawmakers and the FAA. The parts issue is completely unrelated to the crashes, Boeing said. The FAA disclosed in June that about 300 NG and 737 MAX airplanes could contain improperly manufactured parts and said it would require these parts to be quickly replaced. The parts at issue are tracks on the leading edge of the wings used to guide the movement of slats that provide additional lift during takeoff and landing, the FAA said. The issue could result in a slat striking an airplane, potentially resulting in injury to passengers or preventing a safe landing.

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More Muilenburg fallout.

Key Boeing 737 MAX Supplier Spirit Aerosystems To Cut 2,800 Jobs (CNBC)

A key Boeing 737 Max supplier said Friday that it is planning to cut about 2,800 jobs as the planes remain grounded far longer than expected and the financial impact ripples through the aerospace company’s supply chain. Wichita, Kansas-based Spirit Aerosystems, which produces fuselages for the beleaguered planes, said it made the decision due to uncertainty around the Max’s return to service. The company’s shares fell after its announcement, trading down 2.7%. Boeing was off nearly 1.5%. The 737 Max accounts for half of Spirit’s revenue. The planes have been grounded since mid-March [..] Regulators haven’t said when they would allow the planes to fly again.


“This is not the news I wanted to share, and I know it’s not the news you wanted to hear,” CEO Tom Gentile told employees on Friday. “But the continued grounding of the Max fleet and the suspension of production has created a challenging situation for us.” In addition to fuselages, Spirit makes thrust reversers, engine pylons and wing parts. Spirit, which issued what’s known as a WARN notice that requires companies to give employees 60 days notice of mass layoffs, said more job cuts are possible, a sign of how Boeing’s 737 Max crisis continues to hurt suppliers and the communities where they’re based. The laid-off employees, while they will have to depart in the coming weeks, will be paid for the entire 60-day notice period, Spirit said.

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Going through all the amounts spent, how can you not despair? What is fair about this sytem?

Joe Biden Gets $Millions In TV Ads In Iowa From Undisclosed Donors (IC)

Heading into the Iowa caucus, a Super PAC backing Joe Biden is spending big on TV ads in the state, giving him a boost over his fellow Democratic presidential frontrunners. Unite the Country PAC, which was launched in October by longtime advisers to the former vice president and allies of former President Barack Obama, has spent $2.3 million on TV ads in support of Biden in Iowa, according to recent disclosures. In recent years, political campaigns have devoted more of their resources to digital advertising and email distribution, but they continue to spend big on TV ads. For candidates like Biden, whose campaign had been struggling with fundraising in the fall, Super PACs can play a key role in helping reach people on the airwaves.

Biden had disavowed the support of Super PACs early in his campaign, but walked that position back just before Unite the Country launched in October. The timing of the launch comes with an additional benefit: The PAC will be able to keep its donors under wraps until just three days before the February 3 Iowa caucus. Under Federal Election Commission rules, the Super PAC’s first disclosure is due on January 31. The schedule gives Biden more of a chance to escape scrutiny of who exactly is bundling for the PAC — a list likely to include more major industry players, far and away from the working-class voters for whom Biden has cast himself as a hero. Asked about the date the group was required to file its next disclosure, a spokesperson for the PAC said it followed the FEC’s reporting schedule.

As Sen. Cory Booker’s campaign continues to flounder, his Super PAC, United We Win, has spent $250,000 on TV advertising on his behalf. Other campaigns have made massive investments in TV ads in Iowa. Both Bernie Sanders and Pete Buttigieg have spent around $3.9 million on TV ads in the state so far. Andrew Yang has spent $2.5 million, Biden has spent $1.8 million, and Elizabeth Warren has spent $1.6 million. Billionaire Tom Steyer has spent $9 million in Iowa and $116.5 million overall, and it’s paying off: According to a Fox News poll released this week, Steyer is polling ahead of Sanders, Warren, and Buttigieg in South Carolina, where he’s spent $8.3 million on TV ads, and ahead of Warren in Nevada, where he’s spent $8.7 million. Former New York City Mayor Mike Bloomberg, who is self-funding his campaign, has spent $153.1 million on TV ads so far.

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This aged remarkably well.

 

 

 

Include the Automatic Earth in your 2020 charity list. Support us on Paypal and Patreon.

 

Jan 082019
 


Pablo Picasso Bather on the beach 1920

 

German Industrial Production Unexpectedly Slumps (WSJ)
China’s Current GDP Growth Likely Less Than 6% (CNBC)
Samsung Warns Of 29% Profit Drop (BBC)
UK Not Looking To Extend Article 50, Brexit Minister Says (R.)
UK MPs Raise Safety Fears With Police (G.)
Yanis Varoufakis Says France’s Macron Is a ‘Spent Force’ (BBG)
A Farewell to “Bargain Shopping” (Kunstler)
Rival Fiefdoms Emerge In Scramble Over Trump’s Syria Withdrawal (AlM)
Turkey To Ask US To Hand Over Military Bases In Syria (R.)
China Approves Five GMO Crops For Import (R.)
India’s Top Court Backs Monsanto On GMO Cotton Patents (R.)
Ecuador To Audit Julian Assange’s Asylum & Citizenship (PBR)
WikiLeaks Tells Reporters 140 Things Not To Say About Julian Assange (R.)
140 “False And Defamatory” Statements About Julian Assange (ZH)
Warming Of Oceans Equivalent To An Atomic Bomb Per Second For 150 Years (G.)

 

 

Just what Europe needs: a recession in Germany.

German Industrial Production Unexpectedly Slumps (WSJ)

German industrial production unexpectedly slumped in November, adding to recent evidence that a nine-year recovery in Europe’s largest economy is foundering. The data underscore how trade tensions and weaknesses in emerging markets are putting a brake on Germany’s longrunning economic upswing, and could delay any move by the ECB to lift short-term interest rates. Production in Germany’s key industrial sector, adjusted for inflation and seasonal swings, fell 1.9% in November from the previous month, the country’s statistics agency said Tuesday. Economists polled by The Wall Street Journal had expected a 0.3% gain. It was the second consecutive monthly fall in German industrial output and comes after data Monday showed an ongoing decline in new manufacturing orders.

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Has been for years.

China’s Current GDP Growth Likely Less Than 6% (CNBC)

China’s current economic growth is likely below the 6 percent level amid faltering domestic demand, an economist said Tuesday. Recent signals about the world’s second-largest economy point to weaker growth, including tech giant Apple recently lowering revenue guidance for the first quarter as it blamed a variety of factors including Chinese demand. And, on Monday, Hong Kong-listed automaker Geely said it missed its sales target in 2018 and was forecasting flat sales in 2019. “It’s intriguing that the domestic demand part is the weak part — the external demand is not that bad,” said Taimur Baig, chief economist at DBS Group Research.

“Particularly weak” domestic demand was possibly signaling structural changes in the Chinese economy, Baig told CNBC’s “Capital Connection.” For its part, DBS forecasts China’s GDP growth to be “sub-6 percent” currently, Baig said. Last year, China reported economic growth of 6.5 percent in the third quarter — marking its weakest pace since the global financial crisis. Still, the country’s official growth target for 2018 was around 6.5 percent.

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Everyone has a phone who wants one.

Samsung Warns Of 29% Profit Drop (BBC)

Samsung Electronics expects to post a 29% drop in quarterly operating profit as demand for smartphones and memory chips slows. The firm forecasts operating earnings of 10.8 trillion Korean won ($9.7bn; £7.6bn) for the last three months of 2018. It marks the first quarterly profit drop in two years as strong demand for chips had boosted earnings at the firm. Samsung also faces fierce competition from Apple and Chinese rivals. In a statement on Tuesday, the firm cited lacklustre demand and rising competition for its darkening outlook. “We expect earnings to remain subdued in the first quarter of 2019 due to difficult conditions for the memory business,” the South Korean tech giant said in a statement. It forecasts revenue will decline 11% to 59 trillion won.

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But I betcha they’re talking about it.

UK Not Looking To Extend Article 50, Brexit Minister Says (R.)

The United Kingdom will leave the European Union on March 29 and is not looking to extend the Article 50 exit process, Brexit Secretary Stephen Barclay said on Tuesday. The Daily Telegraph reported that British and European officials are discussing the possibility of extending Britain’s formal notice to withdraw from the EU amid fears a Brexit deal will not be approved by March 29. “The government’s policy is clear on this, the prime minister has said it on many an occasion: We are leaving the European Union on the 29th of March. We are not looking to extend,” Barclay told Sky News. When asked if any lawmakers in the Conservative Party had changed their minds on opposing May’s deal, Barclay said: “Some have said they are much more open to but it is obviously challenging.”

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The lunatics have long ruled the asylum.

UK MPs Raise Safety Fears With Police (G.)

Dozens of MPs have written to the UK’s most senior police officer to raise concerns about safety outside parliament after the Conservative MP Anna Soubry faced chants from protesters on Monday calling her a “Nazi”. At least 55 parliamentarians signed the letter to the Metropolitan police commissioner, Cressida Dick, after the Commons Speaker, John Bercow, urged officers to do more to protect MPs and Soubry criticised the lack of police response to the abuse. Scotland Yard later confirmed it had opened an investigation into whether any offences had been committed when chants of “Soubry is a Nazi” could clearly be heard while the pro-remain MP was being interviewed by BBC News on Abingdon Green, a grassed area outside parliament used by broadcasters.

It is the second time in recent weeks that Soubry has been targeted by a small group of pro-Brexit protesters wearing yellow vests, some of whom have links to the far right. On the earlier occasion, she was surrounded by shouting men calling her a traitor. The MPs’ letter to Dick reads: “After months of peaceful and calm protests by groups representing a range of political views on Brexit, an ugly element of individuals with strong far-right and extreme-right connections, which your officers are well aware of, have increasingly engaged in intimidatory and potentially criminal acts targeting members of parliament, journalists, activists and members of the public.

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No doubt there.

Yanis Varoufakis Says France’s Macron Is a ‘Spent Force’ (BBG)

Yanis Varoufakis, former Greek Finance Minister and founder of the Democracy in Europe Movement 2025, discusses political risks in Europe and his view that French President Emmanuel Macron is a “spent force.” He speaks on “Bloomberg Surveillance.”

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Remember when stores employed half the town? You see much progress since then? First boxstores, then Amazon. Have they made people happier?

A Farewell to “Bargain Shopping” (Kunstler)

What’s up is the international implosion of the bad debt, and the fading illusion that it doesn’t matter. It has any number of ways to express itself, from store closings, to dissolving pensions, to stock market instability, to divorce, homelessness, and war. It’s what you get from a hyper-financialized economy that doesn’t really produce wealth but only steals it from somewhere else. It’s not the fault of “capitalism,” which, in theory just stands for the management of a society’s savings. America doesn’t save, it borrows. Zero interest rates made savings a mug’s game, and zero interest rates were necessary to extend the borrowing far beyond the credible boundaries of repayment.

Debt isn’t capital, it just pretends to be for a period of time. Wall Street made its trillions off the time-value of that pretense and now time is up. Even in the hardship economy we’re sailing into, people will need to buy and sell things and it is very hard to see how that fundamental process of exchange might be reorganized going forward. Back in the 1990s I attended many a town meeting (in many towns) where chain stores applied for permits to set-up operations. It was often contentious. There was always a contingent of locals — organized by the chains themselves — waving placards that said “We Want Bargain Shopping.” And there were the short-sighted town officials drooling over the real estate tax “ratables” that chain stores represented.

Their adversaries feared that their locally-owned Main Street businesses would be killed, and that was exactly what happened, in very short order. You could see it coming from a thousand miles away. Now the Big Boxes are going down. Boo Hoo…. What will emerge out of the current disorder? Perhaps Generations X-Y-and-Z will recognize an opportunity to go into business — as an alternative to purchasing a degree in gender studies for $200,000 (at 6 percent interest). There will be lots of opportunities, even in a world with generally less shopping. But it may require a deeper collapse to sweep away the impediments, both practical and mental, before that awareness turns to action.

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Trying to frustrate the withdrawal.

Rival Fiefdoms Emerge In Scramble Over Trump’s Syria Withdrawal (AlM)

Even after Secretary of Defense Jim Mattis resigned over the decision, two of President Donald Trump’s top advisers have offered different messages about his intentions for a Syria withdrawal. Secretary of State Mike Pompeo has asserted, in both internal briefings and public interviews, that Trump’s instructions are clear and the troops are coming out, while saying the administration’s overall goals for the region have not changed. Meanwhile, national security adviser John Bolton, currently traveling in Israel and Turkey with a press pool in tow, has said any US withdrawal from Syria will be conditions-based, and won’t occur until the so-called Islamic State in Syria (IS or ISIS) is fully defeated and unless Turkey guarantees protection for Syrian Kurdish fighters that Ankara considers terrorists.

“There are objectives that we want to accomplish that condition the withdrawal,” Bolton told journalists traveling with him in Israel on Sunday. “The timing of the withdrawal occurs as a result of the fulfillment of the conditions and the establishment of the circumstances that we want to see. And once that’s done, then you talk about a timetable.” Pompeo offered a different emphasis in an internal briefing to State Department Syria watchers last week, sources said: We are leaving. Pompeo, in a Jan. 3 briefing to State Department personnel who work on Syria, “made clear we are leaving. Period,” a former US official, speaking not for attribution, told Al-Monitor. “He did not mention Iran. Or [Syrian President Bashar al-]Assad. He said we are leaving. That was it. Then he left.”

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Trump better watch out that there isn’t an all-out bloody war between Turkey and the Kurds coming.

Turkey To Ask US To Hand Over Military Bases In Syria (R.)

Turkey will ask U.S. officials in talks on Tuesday to hand over its military bases in Syria to Ankara or destroy them, the Hurriyet newspaper reported, a request that could further complicate discussions over the U.S. withdrawal from Syria. U.S. National Security Adviser John Bolton was meeting with his Turkish counterpart Ibrahim Kalin on Tuesday, days after Bolton added a condition to the U.S. withdrawal, saying Turkey must agree to protect the United States’ Kurdish ally, the YPG militia, which Ankara views as a terrorist group. President Donald Trump said last month he was bringing home the some U.S. 2,000 troops in Syria, saying they had succeeded in their mission to defeat Islamic State.

His abrupt move sparked concern among officials in Washington and allies abroad and prompted Defense Secretary Jim Mattis to resign. The YPG has been the key U.S. ally in its fight against Islamic State, support that has long caused tension between Washington and Ankara. Turkey views the YPG as an extension of the outlawed Kurdistan Workers Party (PKK), which has waged a three-decade insurgency in Turkey’s mainly Kurdish south east. “Give them or destroy them,” a Hurriyet newspaper headline said, referring to what it said were 22 U.S. military bases in Syria. It cited unspecified sources as saying Turkey would not accept Washington handing them over to the YPG.

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Monsanto profits from the trade talks.

China Approves Five GMO Crops For Import (R.)

China approved five genetically modified (GM) crops for import on Tuesday, the first in about 18 months in a move that could boost its overseas grains purchases and ease pressure from the United States to open its markets to more farm goods. The United States is the world’s biggest producer of GM crops, while China is the top importer of GM soybeans and canola. U.S. farmers and global seed companies have long complained about Beijing’s slow and unpredictable process for approving GM crops for import, stoking trade tensions between the world’s two largest economies. The approvals, announced on the agriculture ministry’s website, were granted while a U.S. trade delegation is meeting with its counterparts in the Chinese capital this week.

“It’s a goodwill gesture towards the resolution of the trade issue,” said a China representative of a U.S. agricultural industry association. “It’s been in the system for a long time but they chose today to release this good news,” he added, declining to be identified due to the sensitivity of the matter. Two of the newly approved products – BASF’s RF3 canola and Bayer-owned Monsanto’s glyphosate-tolerant MON 88302 canola – had been waiting six years for permission. The other approved products were DowDuPont’s DP4114 corn and DAS-44406-6 soybean, as well as the SYHT0H2 soybean developed by Bayer CropScience and Syngenta but now held by BASF.

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Devastating.

India’s Top Court Backs Monsanto On GMO Cotton Patents (R.)

India’s Supreme Court ruled on Tuesday that U.S. seed maker Monsanto can claim patents on its genetically modified (GM) cotton seeds in the world’s biggest producer of the fibre. The decision on appeal overturns an earlier ruling by the Delhi High Court that Monsanto – which has been bought by German drug and crop chemical maker Bayer AG – was unable to claim patents on GM cotton seeds. The outcome is positive for foreign agricultural companies such as Monsanto, Bayer, Dupont Pioneer and Syngenta which have been concerned that they could lose patents on GM crops in India.

“This is a very good move as most international companies have stopped releasing new technology in the Indian market due to the uncertainty over patent rule,” said Ajit Narde, a leader of the Shetkari Sanghatana, a farmers’ body, which has been demanding access to new technologies. Access to advanced technology was important to help Indian farmers to compete with rivals overseas, Narde said.

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Trying to find a way out, so the IMF loan can come in.

Ecuador To Audit Julian Assange’s Asylum & Citizenship (PBR)

Ecuador has begun a “Special Examination” of Julian Assange’s asylum and citizenship as it looks to the IMF for a bailout, the whistleblowing site reports, with conditions including handing over the WikiLeaks founder. Former Ecuadorian President Rafael Correa tweeted an image of the letter he received from the State Comptroller General on December 19, which outlines the upcoming examination by the Direction National de Auditoria. The audit will “determine whether the procedures for granting asylum and naturalization to Julian Assange were carried out in accordance with national and international law,” and will cover the period between January 1, 2012 and September 20, 2018. Assange has been in the Ecuadorian Embassy in London since he sought asylum there in 2012.

He was granted Ecuadorian citizenship last December in a bid to protect him from being extradited to the US where he fears he faces secret charges for publishing US government cables and documents. “Because of their hatred and persecution, we are the laughing stock of the world,” Correa said of the audit. WikiLeaks tweeted the news on Wednesday, joining the dots between the audit and Ecuador’s consideration of an International Monetary Fund bailout. The country owes China more than $6.5 billion in debt and falling oil prices have affected its repayment abilities. According to WikiLeaks, Ecuador is considering a $10 billion bailout which would allegedly come with conditions such as “the US government demanded handing over Assange and dropping environmental claims against Chevron,” for its role in polluting the Amazon rainforest.

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Not sure such an extensive format is the way to go. The Guardian gets away with stonewalling its fake Assange news.

WikiLeaks Tells Reporters 140 Things Not To Say About Julian Assange (R.)

WikiLeaks on Sunday advised journalists not to report 140 different “false and defamatory” statements about its founder Julian Assange, who has been holed up in the Ecuadorean embassy in London since June 2012. It was not immediately clear what prompted the advice to media organizations, but WikiLeaks singled out Britain’s Guardian newspaper for publishing what it said was a false report about Assange. The Guardian did not immediately respond late on Sunday to a Reuters request for comment. The Australian set up WikiLeaks as a channel for publishing confidential information from anonymous sources. He is a hero to some for exposing what supporters cast as government abuse of power and for championing free speech, but to others he is a rebel who has undermined the security of the United States.

WikiLeaks angered Washington by publishing hundreds of thousands of secret U.S. diplomatic cables that laid bare often highly critical U.S. appraisals of world leaders from Russian President Vladimir Putin to members of the Saudi royal family. “There is a pervasive climate of inaccurate claims about WikiLeaks and Julian Assange, including purposeful fabrications planted in large and otherwise ‘reputable’ media outlets,” Wikileaks said an email sent to media organizations and marked “Confidential legal communication. Not for publication.” “Consequently journalists and publishers have a clear responsibility to carefully fact-check from primary sources and to consult the following list to ensure they are not spreading, and have not spread, defamatory falsehoods about WikiLeaks or Julian Assange.”

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Tyler has the entire list.

140 “False And Defamatory” Statements About Julian Assange (ZH)

WikiLeaks is sick and tired of mainstream media outlets publishing inaccurate and at times defamatory claims about its founder, Julian Assange. So in a recent email to journalists who regularly cover the organization, Wikileaks described 140 “false and defamatory” claims about its founder, who has been living inside the Ecuadorian embassy in London since June 2012. According to Reuters, WikiLeaks accused the Guardian of publishing a false report about Assange, though it was not immediately clear what specific report prompted the warning. The Guardian has refused to comment on the allegations.

The 5,000 word email claimed it was defamatory to suggest that Assange had ever been an “agent or officer of any intelligence service,” or that he had ever been employed by the Russian government, or that he is – or has been – closely connected with the Russian state. Some of the claims were more bizarre, like claiming that Assange was a pedophile, rapist, murder or a member of the Muslim Brotherhood. Others pertained to personal hygiene, like that Assange bleaches his hair, or has poor grooming habits. They also said it was defamatory to claim that Assange is a hacker or that he is not an Australian citizen.

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How many people can understand this?

Warming Of Oceans Equivalent To An Atomic Bomb Per Second For 150 Years (G.)

Global warming has heated the oceans by the equivalent of one atomic bomb explosion per second for the past 150 years, according to analysis of new research. More than 90% of the heat trapped by humanity’s greenhouse gas emissions has been absorbed by the seas, with just a few per cent heating the air, land and ice caps respectively. The vast amount of energy being added to the oceans drives sea-level rise and enables hurricanes and typhoons to become more intense. Much of the heat has been stored in the ocean depths but measurements here only began in recent decades and existing estimates of the total heat the oceans have absorbed stretch back only to about 1950. The new work extends that back to 1871. Scientists have said that understanding past changes in ocean heat was critical for predicting the future impact of climate change.

A Guardian calculation found the average heating across that 150-year period was equivalent to about 1.5 Hiroshima-size atomic bombs per second. But the heating has accelerated over that time as carbon emissions have risen, and was now the equivalent of between three and six atomic bombs per second. “I try not to make this type of calculation, simply because I find it worrisome,” said Prof Laure Zanna, at the University of Oxford, who led the new research. “We usually try to compare the heating to [human] energy use, to make it less scary.” She added: “But obviously, we are putting a lot of excess energy into the climate system and a lot of that ends up in the ocean,. There is no doubt.” The total heat taken up by the oceans over the past 150 years was about 1,000 times the annual energy use of the entire global population.

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Jul 082018
 


Jean-Léon Gérôme Truth Coming Out of Her Well to Shame Mankind 1896

 

Here’s the lowdown: the EU’s single market mechanism dictates freedom of movement for labor, capital, services and goods. These are not divisible; you cannot have one without the other. Still, that’s precisely what Theresa May, again, is proposing. She basically wants to keep the UK in the single market for goods, and make other arrangements for the rest. The EU will not accept that because it could have 27 other countries coming with their own versions of single market à la carte.

So why does she come with version 826 of what she already knows will not be accepted? And why did her cabinet comply? There are a few possibilities. Perhaps May has finally understood that there is no manner of leaving the EU left to her that will not lead to utter disaster. Maybe she just wants the whole thing to stop. Or maybe Boris Johnson et al, sensing failure for May, see a chance to dethrone her and take over power. Then again, maybe they all look for a way to blame the EU for their own failures.

It’s hard to say, really. What’s obvious, through the comments of industries like Airbus and Jaguar Land Rover, is that 100,000s of jobs are at stake, along with 100s of billions of investments in Britain. Large enterprises are often branched out all through the EU, and they need to comply with EU rules; separate rules for their business with the UK would be a nightmare.

And even smaller companies, to varying degrees, face those same problems. For all you may think of the EU, it has arranged the single market strictly and successfully. There are enormous advantages for companies in that. Take those away and they will look at relocating towards the continent, where they would regain those advantages.

There appear to be three options (and May’s plan is not one of them): a hard Brexit, new elections, or no Brexit at all.

A hard Brexit would be an unmitigated disaster, because everything in Britain runs according to EU rules and regulations. Changing that to British rules is a Herculean task, and one for which the UK is not at all prepared (and they just lost 2 years). An example: thousands of new border officials will be needed, something for which preparations reportedly haven’t even started in earnest. And that’s just one obvious example. A hard Brexit would ruin the country. Not because Britain couldn’t function as a country, but because it’s so utterly unprepared to do so.

New elections wouldn’t solve the issues, they probably would even necessitate an extension of the March 29 2019 date by which the UK is set to leave the EU. But they would open the way to have another look at what’s actually at stake. Do Britons really want to lose all those jobs, and see their standard of living deteriorate accordingly? Because from what I’m reading all the time, the Tories’ austerity has already hit hard, and infrastructure – roads, schools, hospitals, NHS etc.- is being dismantled. A hard Brexit on top of that would be very painful.

No Brexit at all : that’s the most interesting option. Quite a few of the protagonists involved must realize by now how bad things are. Not just May. And that’s where the jockeying for position starts. On the one hand the sociopaths want the power, on the other they want to deflect the blame if things go awry.

A nice angle is emerging for Labour leader Jeremy Corbyn, who has so far insisted his party must protect the people’s Brexit voice: he can now make the case that since the Tories wasted two years, that vote has lost validity, because a ‘decent split’ is no longer possible. It would even be against national security (no joke).

A stronger case could perhaps be found in the campaign financing of the Leave campaign. It seems clear that there have been irregularities, it’s just a matter of how much. If it was too much, the entire referendum could be declared null and void. But what do the media focus on?

Yes, the Russians, who allegedly furnished capital for the campaign. At the very time that the May government comes out with a Novichok 2.0 tale, which has even less credibility than its older sibling (which led to 324 diplomats being expelled). Britain has a Russia problem. Or, its government does. The English football team and its supporters do not.

Cut out the Russia stuff. Focus on Arron Banks and the money flows around him. It may be the way for everyone involved, except for those close to Leave.EU, to get out of this mess unscathed. The path is clear, says lawyer Jessica Simor:

Why It’s Not Too Late To Step Back From The Brexit Brink

[..] the government does not deny that reversal is legally possible. Its position accords with advice, which I am told from two good sources the prime minister has received, namely that the article 50 notification can be withdrawn by the UK at any time before 29 March 2019, resulting in the UK remaining in the EU on its current favourable terms. [..] As a lawyer, I agree with them. Article 50 provides for the notification – not of withdrawal but of an “intention” to withdraw. In law, an “intention” is not a binding commitment; it can be changed or withdrawn.

Article 50(5) is, moreover, clear that it is only after a member state has left that it has to reapply to join. Had the drafters intended that once a notification had taken place, a member state would have to request readmission (or seek the consent of the other member states to stay), then article 50(5) would have referred not just to the position following withdrawal, but also following notification. Such an interpretation is in line with the object and purpose of article 50.

I’d say this has turned into a story not of political preferences or ideology, but into one of sheer incompetence. Britain risks being thrown back into the age of Marx and Dickens. I’m all for independence and sovereignty, and I fully agree the EU is a massive threat to both, but this is not the way to go about these things. Get in, stay in, while you can.

Oh, and as for incompetence, that’s something you’ll see everywhere as economies dwindle, it’s not a British trait. They’re just among the first to face the challenges. The vast majority of politicians in the west will be exposed as grossly incompetent once the markets start to really go down. It’s easy to make the impression that you know what you’re doing in times of growth, but the litmus test is trying to deal with crisis. Most ‘leaders’ will fail.

 

 

Mar 302018
 
 March 30, 2018  Posted by at 9:46 am Finance Tagged with: , , , , , , , , , , ,  8 Responses »


James McNeill Whistler Nocturne in Blue and Silver, The Lagoon, Venice 1880

 

The Donald’s Blind Squirrel Nails An Acorn (David Stockman)
Russia To Expel 150 Diplomats And Close US Consulate In St Petersburg (Ind.)
Yulia Skripal No Longer In Critical Condition (G.)
UK Household Spending Hit Six-Year Low In 2017 Amid Brexit Inflation (PA)
Bitcoin Drops Below $7,000, Down 50% in 2018 (BBG)
Tesla Recalls 123,000 Early Model S Cars (BBG)
Volkswagen Stores 300,000 Diesels Across US (R.)
Trump Says US Withdrawing From Syria ‘Very Soon’ (AFP)
Sessions Rejects Calls for Second Special Counsel, Appoints Investigator (BBG)

 

 

“Amazon is a monstrous predator enabled by the state..” Are we seeing the Big Tech Backlash of 2018?

The Donald’s Blind Squirrel Nails An Acorn (David Stockman)

It is said that even a blind squirrel occasionally finds an acorn, and so it goes with the Donald. Banging on his Twitter keyboard in the morning darkness, he drilled Jeff Bezos a new one – or at least that’s what most people would call having their net worth lightened by about $2 billion: “I have stated my concerns with Amazon long before the Election. Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!” You can’t get more accurate than that. Amazon is a monstrous predator enabled by the state, but Amazon’s outrageous postal subsidy – a $1.46 gift card from the USPS stabled on each box – isn’t the half of it.

The real crime here is that Amazon has been exempted from making a profit, and the culprit is the Federal Reserve’s malignant regime of Bubble Finance. The latter has destroyed financial discipline entirely and turned the stock market into the greatest den of speculation in human history. That’s why Bezos can kill established businesses with impunity. The casino allows him to run a pernicious business model based on “price to destroy”, rather than price for profit and a return on capital. Needless to say, under a regime of sound money and honest capital markets Amazon would be a far more benign economic creature. That’s because no real investors would value AMZN’s money-loosing e-Commerce business at $540 billion – nor even a small fraction of that after 25-years of profitless growth.

[..] At the end of the mini-correction in February 2016 Amazon’s market cap was $230 billion, but just 25 months later it was worth $775 billion at its March 12 peak. That staggering $545 billion gain in market cap had absolutely nothing to do with financial performance, of course. Operating free cash flow was a meager $6.4 billion during 2017 and had been $6.6 billion two years earlier. That is to say, AMZN was valued at a frisky 35X free cash flow in early 2016 and a completely insane 121X a few weeks ago. The fact that Bezos’ net worth exploded by $100 billion during that same 25 month interval perhaps explains why even the Donald found his acorn.

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By all means, let’s stop talking.

Russia To Expel 150 Diplomats And Close US Consulate In St Petersburg (Ind.)

Russia has said it will expel around 150 diplomats and close the US consulate in St Petersburg in retaliation to the coordinated international response over the poisoning of a former Russian spy in Britain. More than two dozen countries, including the US and many EU nations – as well as Nato – have ordered more than 150 Russian diplomats out this week in a show of solidarity with Britain over the poisoning of Sergei Skripal and his daughter Yulia in Salisbury earlier this month. The UK has accused Russia of responsibility for the attack, during which it claims the Skripals were exposed to a class of nerve agent called novichok. Russia has denied being involved and its foreign minister Sergei Lavrov made clear that all expulsions will be responded to in kind.

Mr Lavrov said that US Ambassador Jon Huntsman was summoned to the Foreign Ministry where he was given notice that Russia is replicating the US decision to order 60 Russian diplomats out. Mr Lavrov added that Moscow will also retaliate to the decision by Washington to shut the Russian consulate in Seattle by closing the US consulate in St Petersburg. The tit-for-tat expulsions come as no surprise. But the shuttering of the American consulate in Russia’s second city is an escalation. The Seattle consulate is Russia’s smallest diplomatic outpost in the US. Fifty-eight of the US officials are based in Moscow, with another two general consulate officials in the eastern city of Yekateringburg. They have been declared persona non grata and have been told to leave Russia by 5 April.

The US Consulate in St Petersburg has two days to suspend operations, according to Russian media. During the briefing Mr Lavrov accused Britain of “forcing everyone to follow an anti-Russian course” and that they were “making mockery of international law”. Russia has called for a meeting with the executive council of the Organisation for the Prohibition of Chemical Weapons (OPCW) to ask questions to “establish the truth”, he said. “The measures would be reciprocal … They include expulsion of the equivalent number of diplomats and they include our decision to withdraw our agreement to allow the United States’ general consulate to operate in St Petersburg,” Mr Lavrov said.

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How does one recover from being infected with one of the most lethal nerve agents ever?

The photo, dated 3 days after the ‘attack’, shows a policeman standing by the front door to the Skripal home, the very door through which father and daughter were allegedly poisoned. He wears no protection.

Yulia Skripal No Longer In Critical Condition (G.)

The condition of Yulia Skripal, who was poisoned with a nerve agent in Salisbury along with her father, is improving rapidly, doctors have said. Salisbury NHS foundation trust said on Thursday the 33-year-old was no longer in a critical condition, describing her medical state as stable. Christine Blanshard, the medical director for Salisbury district hospital, said: “I’m pleased to be able to report an improvement in the condition of Yulia Skripal. She has responded well to treatment but continues to receive expert clinical care 24 hours a day. “I want to take this opportunity to once again thank the staff of Salisbury district hospital for delivering such high-quality care to these patients over the last few weeks. I am very proud both of our frontline staff and all those who support them.”

Her father’s condition was described by the hospital as still critical but stable. Sergei Skripal, 66, a former Russian double agent, is believed to have been the main target of the attack. The update came as Russia said it was taking tit-for-tat measures against all the nations that have expelled Russian diplomats over attack. In a separate development, Scotland Yard said police had placed a cordon around a children’s play area near Sergei Skripal’s home as a precautionary measure. “Officers investigating the attempted murders of Sergei Skripal and his daughter Yulia Skripal are continuing to focus their enquiries around the Skripals’ home address,” a police statement revealed.

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Both spending and saving are hit.

UK Household Spending Hit Six-Year Low In 2017 Amid Brexit Inflation (PA)

Household spending slowed to its lowest annual growth for six years in 2017 amid Brexit-fuelled inflation, with borrowing surging and family savings slumping to a record low. Figures from the Office for National Statistics (ONS) confirmed economic growth slowed to 0.4% in the final three months of last year, down from 0.5% in the third quarter as weaker household spending took its toll. The ONS revised upgrowth for the year as a whole to 1.8% from the previous estimate of 1.7%, but this was still the lowest since 2012. It leaves the UK with the lowest growth among the G7 economies at the end of 2017 as it enters the final year of its membership of the European Union.

The quarterly national accounts data showed Britons turned to debt to support spending in the face of last year’s surging inflation, which outstripped paltry wage growth. The proportion of total income saved by households dropped to 4.9% in 2017, its lowest level since records began in 1963, the ONS said. Overall household spending fell last year to 1.7%, which was the lowest annual growth since 2011, according to the ONS. But there was some cheer in Thursday’s latest official data dump as figures revealed the UK’s current account deficit with the rest of the world narrowed to £82.9bn or 4.1% of GDP in 2017 – the smallest gap since 2011. This came as a growing world economy boosted the earnings on foreign investments.

In the fourth quarter, the current account deficit shrank by more than expected to £18.4bn, or 3.6% of GDP, down from £19.2bn in the previous three months. Net trade – exports less imports – made its largest contribution to full-year growth since 2011, the ONS reported.

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Shaky?!

Bitcoin Drops Below $7,000, Down 50% in 2018 (BBG)

Bitcoin’s miserable quarter isn’t over yet. The world’s biggest cryptocurrency by market value dropped below the $7,000 mark Friday morning in Asia, the first time it’s breached that level since early February, according to data compiled by Bloomberg. It fell as low as $6,912 before rebounding, trading at $7,094 as of 7:50 a.m in Hong Kong. The moves took the token’s losses in 2018 to a whopping 50%, and other digital assets, including rivals Ripple and Litecoin, slumped more. In addition, regulatory pressure is mounting in the cryptocurrency space, while major social media platforms are distancing themselves from the industry. Reddit, a community hub popular in the crypto community, no longer accepts payments made in Bitcoin, while Twitter confirmed Monday that it’s banning advertisements for initial coin offerings, joining Facebook and Google.

Looming over the market are sales of Bitcoin held by the trustee of Mt Gox, the now-defunct Japanese exchange. The trustee sold about $400 million in Bitcoin and Bitcoin Cash in the last few months to reimburse the exchange’s creditors, according to his recent report. The trustee had said that he will sell more of the cryptocurrency he holds. As of early March, he was sitting on more than $1 billion. “Bitcoin is under selling pressure again and chances of its recovery are looking slim,” Naeem Aslam at TF Global Markets said in a note. It has “slid significantly, since the tech giants’ ban on ICOs,” he noted. The slump this year is its biggest quarterly decline since 2011. Keep in mind that Bitcoin rallied 1,400% last year.

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“Classic two hours after the close before a three-day weekend news release. Unbelievable (almost)!”

Tesla Recalls 123,000 Early Model S Cars (BBG)

Tesla is recalling all Model S cars built before April 2016 to retrofit a power-steering component as the company caps its worst one-month performance in the stock market since December 2010. The issue, which the carmaker said has not led to any accidents or injuries, impacts only the flagship Model S sedan, not the Model X sport utility vehicle or more affordable Model 3. The recall affects roughly 123,000 vehicles globally. The carmaker said it’s performing the voluntary recall after observing “excessive corrosion in the power steering bolts, though only in very cold climates, particularly those that frequently use calcium or magnesium road salts,” according to an email sent to impacted customers Thursday.

“Nonetheless, Tesla plans to replace all early Model S power steering bolts in all climates worldwide to account for the possibility that the vehicle may later be used in a highly corrosive environment,” the electric-car maker said in the customer email. Tesla has been routed this month as analysts and investors have questioned the company’s ability to mass-manufacture its new Model 3 sedan. Bottlenecks at Tesla’s battery factory and assembly plant have undermined that effort, limiting the return on that investment and arousing concern that the company may need to raise more cash. Moody’s Investors Service also downgraded Tesla’s credit rating further into junk on Tuesday.

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Maybe they can figure something out with Musk?

Volkswagen Stores 300,000 Diesels Across US (R.)

Volkswagen has taken parking lots to a whole new level in the US – and will not be emptying them soon. Volkswagen AG has paid more than $7.4bn to buy back about 350,000 US diesel vehicles, a recent court filing shows. The German automaker has been storing hundreds of thousands of vehicles around the US for months. Volkswagen has 37 secure storage facilities around the US housing nearly 300,000 vehicles, the filing from the program’s independent administrator said. The lots include a shuttered suburban Detroit football stadium, a former Minnesota paper mill and a desert site near Victorville, California.

VW spokeswoman Jeannine Ginivan said in a statement the storage facility in Victorville, California, is one of many “to ensure the responsible storage of vehicles that are bought back” under the terms of the Volkswagen diesel settlements. “These vehicles are being stored on an interim basis and routinely maintained in a manner to ensure their long-term operability and quality, so that they may be returned to commerce or exported once US regulators approve appropriate emissions modifications,” she said. In total VW has agreed to spend more than $25bn in the US for claims from owners, environmental regulators, states and dealers and offered to buy back about 500,000 polluting vehicles.

The buybacks will continue through the end of 2019. The court filing said through 31 December Volkswagen bought back 335,000 diesel vehicles, resold 13,000 and destroyed about 28,000. As of the end of last year VW was storing 294,000 vehicles around the country. VW must buy back or fix 85% of the vehicles involved by June 2019 or face higher payments for emissions.

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A populist address? What does that mean?

Trump Says US Withdrawing From Syria ‘Very Soon’ (AFP)

US President Donald Trump insisted Thursday that US forces would pull out of Syria “very soon” and lamented what he said was Washington’s waste of $7 trillion in Middle East wars. In a populist address to industrial workers in Ohio, Trump said US forces were close to securing all of the territory that the Islamic State jihadist group once claimed. “We’ll be coming out of Syria, like, very soon. Let the other people take care of it now,” he promised, to applause. Trump did not say who the others were who might take care of Syria, but Russia and Iran have sizable forces in the country to support President Bashar al-Assad’s regime. “Very soon – very soon we’re coming out. We’re going to have 100% of the caliphate, as they call it – sometimes referred to as ‘land’ – taking it all back quickly, quickly,” he said.

“But we’re going to be coming out of there real soon. Going to get back to our country, where we belong, where we want to be.” State Department spokeswoman Heather Nauert was later asked at a briefing if she was aware of any decision for the US to pull out of Syria. She responded, “I am not, no. No.” The United States has more than 2,000 military personnel in eastern Syria, working with local militia groups to defeat the Islamic State group while trying to keep out of Syria’s broader civil war. Trump’s eagerness to quit the conflict flies in the face of a new US Syria strategy announced in January by then secretary of state Rex Tillerson – who has since been sacked. Tillerson argued that US forces must remain engaged in Syria to prevent IS and Al-Qaeda from returning and to deny Iran a chance “to further strengthen its position in Syria.”

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This is not over.

Sessions Rejects Calls for Second Special Counsel, Appoints Investigator (BBG)

Attorney General Jeff Sessions rejected calls from Republican lawmakers for a second special counsel to look into potential misconduct by the Justice Department and the FBI in past investigations of Hillary Clinton, saying that the issues were already under scrutiny. In a letter to three Republican committee chairmen, Sessions disclosed Thursday that he has assigned John Huber, a U.S. attorney based in Utah, to conduct an internal probe into complaints of FBI bias and wrongdoing. “I am confident that Mr. Huber’s review will include a full, complete and objective evaluation of these matters in a manner that is consistent with the law and facts,” Sessions wrote to Senate Judiciary Chairman Chuck Grassley, House Judiciary Chairman Bob Goodlatte, and House Oversight Chairman Trey Gowdy.

Sessions said he would consider the recommendations Huber might make, including “whether any matters merit the appointment of a special counsel” later. Huber has been the U.S. attorney in Utah since June 2015 and was twice confirmed unanimously by the Senate. He served for almost two years as an appointee of Democratic President Barack Obama, and was appointed by Sessions to continue his work in March 2017.| Gowdy and Goodlatte, in a joint statement released Thursday night, said that “while we continue to believe the appointment of a second special counsel is necessary, this is a step in the right direction.”

[..] Sessions reminded the chairmen in his letter that the department’s inspector general also is looking into some of the same matters. The attorney general’s letter came a day after that internal watchdog, Michael Horowitz, confirmed that he’s now examining the FBI’s actions early in its investigation into Russian campaign interference, including how it obtained a warrant to monitor Carter Page, a foreign policy adviser to the Trump campaign.

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