Today’s News 24th October 2018

  • Europe Still Struggling With Major Measles Outbreak

    So far this year, Europe has experienced 41,000 measles cases and 40 deaths according to the World Health Organization.

    As Statista’s Niell McCarthy notes, the number of cases is far higher than any other 12-month total reported so far this decade. 2017 was the previous worst year with 23,927 cases in total.

    Infographic: Europe Still Struggling With Major Measles Outbreak | Statista

    You will find more infographics at Statista

    Seven countries in the WHO European Region have seen over 1,000 infections this year: France, Georgia, Greece, Italy, the Russian Federation, Serbia and Ukraine.

    In the 12 months from September 2017 to August 2018, Ukraine was the worst affected country by far with 32,618 measles cases. Serbia came second with 5,710 while Russia was third with 3,940.

  • The End Of Germany's Two-Party System

    Authored by Sławomir Sierakowski, via Project Syndicate,

    Ever since Germany’s federal election last September, it has been clear that the country’s once-stable political party system is in peril. Most significantly, collapsing support for the Social Democratic Party means that Germany – along with the rest of Europe – could be heading for a new era of paralysis and instability.

    The German Social Democrats’ (SPD) existential crisis can no longer be treated as a typical party crisis. The party captured a mere 9.7% of the vote in regional elections in Bavaria this month, and it is trailing both the populist Alternative für Deutschland (AfD) and the Greens in national opinion polls. With another important regional election fast approaching in Hesse, polls indicate that the SPD will lose still more support, albeit not as dramatically as in Bavaria.

    The SPD and the Christian Democratic Union/Christian Social Union (CDU/CSU) have stood as the twin pillars of German politics since the end of World War II. But with the SPD declining, Germany is moving from a de facto two-party system to a multiparty system in which no single party plays a dominant role.

    The German post-war consensus is collapsing in key areashistory (attitudes toward WWII), geopolitics (attitudes toward Russia), the economy (attitudes toward the auto industry), and ethics (attitudes toward refugees) – and this is reflected in the fracturing of the political scene. German voters have rejected the longstanding CDU/CSU-SPD “grand coalition.” Whereas smaller parties once functioned as mere subsidiaries of either the SPD or the CDU/CSU, the bit players are now eclipsing the former stars.

    Moreover, what was once “Red Munich” has now turned Green. Whereas cities had long been SPD strongholds, they are switching to the Greens and other smaller parties. Making matters worse for the SPD, the demographic profile of its core electorate amounts to a death sentence. Only 8% of SPD voters are under the age of 30, and a whopping 54% are over 60. By contrast, just 24% of Greens are over 60. And Die Linke, meanwhile, has become increasingly attractive both to younger new leftists and aging post-communists from the former East Germany.

    Just as a two-party system ensures stability and predictability, so might its collapse contribute to radical social change. By definition, the fall of the establishment implies the rise of the anti-establishment, often in the form of populism. Since 2005, the SPD has participated as the minority partner in three grand-coalition governments. As a result, it has come to be associated with the status quo, even though it hasn’t been able to claim direct credit for the previous governments’ successes.

    Something similar happened in Austria, where the Social Democratic Party ruled either alone or in conjunction with the Austrian People’s Party between 1971 and 1999 (except for 1983-1986). Such long periods of grand-coalition rule allowed for the right-wing populist Freedom Party of Austria to present itself as an agent for change.

    When a grand coalition is threatened, its members tend to panic. Those who toe the party line lose support, as German Chancellor Angela Merkel has. Others thus attempt to appropriate populist language – as CSU leader Horst Seehofer has done in recent months – while still others will try to associate themselves with new political platforms. Hence, Alexander Dobrindt of the CSU has promised a “conservative revolution,” while Martin Schulz, the erstwhile leader of the SPD, has promoted EU federation.

    At any rate, when the constituent parts of a coalition start moving in different directions, things quickly fall apart. Still, it is worth noting that while the SPD and the CDU are currently losing support, their ideas remain popular. Their problem is not that they are devoid of ideas, but that they lack political credibility.

    This credibility deficit has created a vacuum for other parties to fill. Thus, the Greens have made gains in Bavaria by supporting an open-door refugee policy that actually originated with the CDU/SPD. Likewise, the AfD has wrested the anti-refugee mantle away from the CSU and Seehofer, who went so far as to try to undermine Merkel’s government from within while serving as Minister of the Interior. The common thread connecting all of the parties that performed well in the Bavarian election is that they ran politicians who are at least consistent in their views.

    Unfortunately for Germany, multiparty systems are generally unstable and less predictable, which explains why every other European country – Latvia is a current example – constantly struggles to establish a governing coalition. Under such conditions, it is not uncommon for bizarre arrangements to arise, including coalitions between the far left and the far right, as we have seen in Greece, Italy, and Slovakia.

    Germany’s best hope now is that its newly emerging multiparty system will impede the progress of the AfD, by nullifying its anti-establishment appeal. The AfD will take its place on the radical right as one party among many. Its support will remain in the 10-20% range, but it will not go any further than that. In fact, this has already happened in Bavaria, where the AfD garnered 10.2% of the vote this month, down from the 12.4% that it received in last year’s federal election.

    Another potential silver lining to a multiparty system is that it might lead to more political engagement. In the case of Bavaria, voter participation rose to 72.4% this election cycle, up from 63.6% five years ago.

    Looking ahead, Germany may now end up with rotating coalition governments comprising multiple parties. For example, one could imagine an arrangement between the CDU/CSU, the Free Democrats, and the Greens – the so-called Jamaica coalition. But this scenario would most likely produce political paralysis, because politicians from competing parties within the coalition would constantly undercut one another other while pandering to the popular will. Moreover, the chancellorship – traditionally very strong in Germany – will always be weaker in a patchwork government.

    Most likely, the fall of the CDU/CSU-SPD duopoly will undermine German hegemony in Europe, even if no other country can replace Germany in that role. At the same time, the weakening of the SPD will diminish the socialist faction in the European Parliament, where a similar eclipse of two-party rule could be in the offing. Yet without the twin pillars of the European People’s Party and the Party of European Socialists, the parliament will be incapable of making even insignificant decisions. As Germany and the SPD go, so goes Europe.

  • Taiwan To Hold Live-Fire Drill Near Spratly Islands In Preparation For Chinese Invasion

    China is preparing for a military invasion of Taiwan in 2020. 

    To counter the threat, Taipei has been conducting live-fire war drills. 

    The latest round of exercises will start next month. 

    Taiwan armed forces are planning a three-day live-fire military exercise on Taiping Island in the heavily disputed waters of the South China Sea to show claim to its sovereignty over the Spratly Islands — a move that will anger China and maybe Vietnam. 

    According to the South China Morning Post, the exercise is scheduled between 8 am and 9 am from November 21 to 23, is expected to upset Beijing, which has also claimed the Spratlys. 

    “Beijing’s sovereignty claim over the Spratlys is consistent with that of Taipei’s, and any live-fire drills on Taiping only serve to reinforce the mainland’s sovereignty over the region, given that Beijing considers Taiwan a part of China,” said Wang Kung-yi a professor of political science at Chinese Culture University in Taipei. 

    Taiwan’s Coast Guard Administration said Tuesday that the drill would involve firing into the sea and air in the area around Taiping Islands — using 40mm grenade machine guns and other heavy weapons. 

    “It is a routine shooting practice, which we have held for years,” Tsai Tzung-hsien, head of the public relations department of the coastguard, told the South China Morning Post. 

    The drill will be held within a five nautical mile range of Taiping, is aimed at safeguarding the integrity of Taiwan’s territory and thwarting an invasion from Beijing. 

    Tsai said the drill would not endanger commercial shipping lanes close to Taiping. 

    South China Morning Post asked what sorts of weapons would be used, Tsai said: “We will test the responsiveness both our light and heavy weapons as well as our personnel.” 

    The South China Sea is a heavily disputed economic zone and has overlapping maritime claims by Brunei, China, Taiwan, Malaysia, Indonesia, the Philippines, and Vietnam. An estimated $5 trillion of global trade flows through the region annually, which the U.S. and Australia want shipping channels to remain international waters and have launched “freedom of navigation” operations in the region. 

    Two US Navy destroyers sailed through the Taiwan Strait on Monday, in a move to aggravate China amid heightened trade war tensions with Beijing. 

    The USS Curtis Wilbur and USS Antietam, both Arleigh Burke-class destroyers, conducted routine transit to show U.S. commitment “to free and open Indo-Pacific,” said Colonel Rob Manning on Monday. 

    This was the third “freedom of navigation” operation by American destroyers in the second half of this year. Multiple Chinese warships followed the two US ships during the transit, defense officials told CNN.

    It seems Taiwan has good reason to prepare for a Chinese invasion. 

    Geopolitical intelligence analyst, in a separate report, told the South China Morning Post that Beijing’s effort to increase military readiness and defend the “one China” policy, was uncovered in a leaked document specifying Beijing has a secret plan to invade Taiwan by 2020. 

  • CJ Hopkins On The Assassination Of Donald Trump

    Authored by ‘Satirist’ and playwright CJ Hopkins via The Unz Review,

    OK… here’s a question for you.

    Let’s assume, strictly for the purposes of argument, that Donald Trump is literally Hitler, or at least a proto-Hitlerian fascist, like the neoliberal ruling classes and the corporate media have been saying he is. And let’s go ahead and also assume that he’s a treasonous Russian intelligence asset working in league with Vladimir Putin to destroy the very fabric of Western democracy, and that he isn’t even legitimately President, because he stole the election from Hillary Clinton with all those Russian bots and Facebook posts, and all that other stuff they’ve been accusing him of, which would make him the most monstrously evil villain in the history of monstrously evil villains, not to mention an existential threat to the nation, and Americans, and … well, the rest of humanity.

    And so, basically, what I want to know is, why don’t they just kill this guy?

    Seriously, if Trump is really Hitler, and a traitor, working for a foreign enemy, like The New York Times and more or less every other organ of the corporate media has been telling us he is for the last two years, well, how about getting SEAL Team 6 to storm the White House in the dead of night and shoot him in the face or something? That seems to go over pretty well with people. Or what about a simple heart attack? Don’t our spooks have some kind of heart attack juice that they could slip into his Diet Coke, or smear onto the doorknob of the Oval Office?

    Not that there’s really any need for subtlety. After all, if he’s actually a Russian operative, and a proto-Hitlerian genocidal dictator, there’s no reason to run a covert op or attempt to cover anything up. On the contrary, you would want do it openly, proudly, where all Americans could see it. Which is why I’d go with the DEVGRU option. They could waste him live on CNN. The bloodier the better. Just imagine the ratings! They could march into the Oval Office in that cool-looking kill squad body armor and beat him to death with a gold-plated golf club. It’s not like he’d put up much of a fight. What is he, like seventy years old or something?

    All right, I know you’re probably thinking that beating a sitting president to death with a gold-plated gap wedge is nothing to joke about, and that doing so (i.e., joking about it, not actually beating the President to death) is possibly a federal crime or whatever, but we’re talking Adolf Hitler here, folks. Do I have to link to every one of the literally thousands of impassioned editorials, articles, and TV and radio segments in which respected journalists at serious news outlets have warned us, over and over, and over, that Donald Trump is literally Hitler, or virtually Hitler, and probably also a Russian agent? I don’t think so. Do you think that respectable publications like The New York TimesThe Washington PostThe GuardianThe AtlanticTime, and so on, would print such inflammatory allegations if the fate of democracy were not at stake? That would be rather reckless, wouldn’t it? I mean, how many times can you call a guy Hitler before Americans demand that somebody kill him?

    This is what we do, after all.

    Killing Hitler is America’s thing. America has been killing Hitler since… well, since Hitler killed himself. Saddam was Hitler. We killed him, didn’t we? Or we got some guys to kill him for us. Same goes for Gaddafi. He was Hitler. We killed the hell out of him. That was fun. We got some guys to sodomize him with a bayonet, and shoot him in the head, and then we laughed about it on national television. Oh, and Osama bin Laden. He was definitely Hitler … OK, not while he was working with the CIA, but later, after he went native on us. We shot him in the face and dumped in the ocean. And Milosevic, he was also Hitler! OK, we didn’t kill him, but we killed his whole country, then we put him on trial in the Hague for war crimes. And what about Stalin, Ho Chi Minh, Castro, Khomeini, Bashar al Assad, and all the other Hitlers we wanted to kill, or tried to kill but couldn’t kill? The list goes on and on, and on.

    I kid you not, if there is anything Americans love more than working a hundred hours a week and buying stuff with credit cards, it is repeatedly killing Adolf Hitler.

    You just point at somebody, call him Hitler, and Americans are ready to help you kill him.

    And, even if someone isn’t technically Hitler, as long as those respectable news sources tell us it’s OK to kill them… well, that’s usually good enough for us.

    For example, if you’re messing around with our “interests,” like maybe interfering with our corporations’ exploitation of your Central American country, we will have no choice but to fund and train some sadistic death squads to hideously torture and murder your people until you come to your senses.

    Or, if you’re even considering aligning with some annoying, fanatically religious regime that deposed the puppet we installed in their country, and that is sitting in the middle of the Middle East screwing up our restructuring plans, and which the Russians won’t let us tactically nuke, well, we’ll have to help our friends, the Saudis, bomb the living Allah out of you, starve your women and children to death, and otherwise wipe you off the face of the Earth.

    So let’s not suddenly get all squeamish about killing Hitler or… you know, whoever. Killing Hitlers, and other bogeymen, and innocent men, women, and children is as American as apple pie, not to mention an extremely profitable business. So what’s the problem here, exactly? Either Trump is Hitler or he isn’t Hitler. If he’s Hitler, and a traitorous Russian agent, like all those respected media sources, and those anonymous “Intelligence Community” sources, and those people on Twitter say he is, what the hell is taking so long?

    Why doesn’t somebody get in there and kill him? What good are all these black ops types if they can’t even save America from Hitler?

    I don’t know, maybe the ruling classes don’t believe they have generated enough public support with all their “resistance” and “Hitler” stuff to brutally assassinate the president on television (which is hard to fathom, given the relentless propaganda campaign they’ve been concertedly waging).

    Perhaps it needs to be a grassroots effort. In which case, maybe the Democratic Party, Bill Kristol, Rob Reiner, Rachel Maddow, Michael Moore, General Hayden, Hillary Clinton, Alec Baldwin, the Editorial Board of The New York Times, and other key Resistance fighters could organize a “March to Assassinate Trump.”

    People could break out their pussyhats again. Everyone loves those pussyhats!

    They could march on CIA headquarters in Langley. Just think of all the signs and slogans … “SCREW DEMOCRACY, JUST KILL HIM ALREADY!” “WHAT WOULD WILLIAM CASEY DO?” and the always popular call and response, “TELL ME WHAT THE DEEP STATE LOOKS LIKE … THIS IS WHAT THE DEEP STATE LOOKS LIKE!” The possibilities are almost endless!

    I’m not saying it would be a cakewalk… or that there wouldn’t be any kind of blowback. The Resistance would likely catch a little flak from the millions of toothless, Oxy-addicted, white supremacist Nazis that voted for the guy.

    There would probably be a bit of ‘civil unrest’, but then, what’s the point of militarizing virtually every major police force in the country if you’re not prepared to turn them loose on the citizenry every once and while?

    And anyway, the main thing is, regardless of how messy things would probably get, it would provide the global capitalist ruling classes with an opportunity to remind these unruly “populists” what happens when you vote for Hitler!

  • Israel's Defense Chief Says "No Choice But War" As Forces Build Along Gaza Border

    We reported over the weekend that Israel has mustered its largest build-up of tanks and armored personnel carriers since 2014 at a deployment area along the border with Gaza and that “all-out war” looks inevitable after weeks of heightened tensions with Hamas. This after special UN envoy for the Middle East, Nickolay Mladenov late last week warned the UN Security Council that “we remain on the brink of another potentially devastating conflict.”

    It now appears Israel is ready to act, as on Monday Defense Minister Avigdor Lieberman told Israeli parliament that he’s been left with “no choice” but to launch military action against Hamas militants. Last week rockets were launched from the Gaza Strip, with one landing dangerously near the densely populated city of Tel Aviv, and unrest along the border fence has continued largely unabated for months. 

    Palestinians protesting along the Gaza border fence. Via Reuters.

    During his bellicose speech before lawmakers, Lieberman threatened invasion of Gaza: “Wars are only conducted when there is no choice, and now there is no choice,” the defense minister said. He indicated that anything less than the “toughest response” to Hamas is not being considered as Tel Aviv has “exhausted the other options.”

    He said of protests which Israeli forces have somewhat routinely fired upon as Palestinians approach the fence and a security “no-go” zone: “There is no popular uprising,” and added, “There is violence organized by Hamas. Fifteen thousand people don’t come by foot to the border at their own will. They come by bus and are paid.”

    Lieberman’s accusation that Hamas pays large sums to protesters comes as international human rights groups have frequently decried Israel’s lose of live ammo to stop protesters from approaching the fence, which have over the past six months resulted in dozens of Palestinian casualties. 

    The defense minister said further that Hamas “controls the levels of the flames,” but Israel can take deterrent and defensive measures, according to the Jerusalem Post. “I don’t believe in reaching an arrangement with Hamas,” he argued. “It hasn’t worked, doesn’t work and won’t work in the future.”

    Israeli tanks staging at Gaza border, via Reuters

    Last week tensions escalated further after Israel retaliated against Hamas rocket attacks on Wednesday by unleashing limited airstrikes on Gaza, which reportedly killed at least one Palestinian while injuring several more. Israeli Prime Minister Benjamin Netanyahu convened his security cabinet on the same day of the Gaza rocket launches and promised to take “very strong action” if such attacks continued.

    It does indeed look like broader military action is coming as a Reuters photographer had by the close of last week documented some 60 Israeli tanks and armored personnel carriers stationed along the Gaza-Israel border – with that number likely growing since – which Reuters noted is the largest reported mustering of forces since the 2014 war between Israel and Hamas.

  • College Scraps Homecoming King, Queen For Gender-Neutral Titles

    Authored by Jacob Floam via Campus Reform,

    Administrators at Stony Brook University (SBU) in New York caved to pressure from activists on the Student Affairs Homecoming Committee to get rid of the homecoming king and queen titles, traditions since 1984, and replace them with three “Stony Brook Royals.” 

    The change, which was originally reported by Stony Brook News, was also pushed by the University’s LGBTQ Services along with LGBTQ Services assistant director, Chris Tanaka

    “Programs, events, and competitions that are categorized by gender put folks in the awkward position of either choosing to not be seen or affirmed for who they are or just not participating at all,” Tanaka said to Stony Brook News.

    “This change has opened the door for more students to feel like Homecoming is an event in which they can fully participate.”

    Under the new format, ten students, regardless of their gender and without ratio, will be chosen as finalists to become Stony Brook Royals. The previous format required that five men and five women be chosen as finalists.

    “I applaud the Homecoming Committee for making this innovative change,” Chief Diversity Officer Lee Bitsoi told Stony Brook University News.

    “This is another step toward building a welcoming, caring, supportive and inclusive campus community where all students feel that they belong.”

    “It’s a dream come true,” Stony Brook “nonbinary” student and homecoming finalist, Allilsa Fernandez told NEWS12.

    “It doesn’t take away any opportunities from students who would like to be either king or queen,” Stony Brook student RJ Samodal told WABC-TV.

    “You can still apply. It’s just the title is different.”

    The scrapping of the homecoming queen and king titles is nothing new on college campuses.

    San Diego State replaced the titles in 2015.  

    In 2017, Northwestern University announced that students would vote on a “Homecoming Wildcat,” rather than a King and Queen.

    Penn State made the award gender-neutral in April of the same year.

    This September, Purdue University followed suit

    Stony Brook University also has a decade-old gender-inclusive housing program, which lets students “from across the gender spectrum” live together.

    SBU is a publicly-funded school in Suffolk County, Long Island and is part of the State University of New York system. The university has not shied away from public controversy. 

    During spring 2018, Campus Reform reported on an incident in which SBU’s Students for Justice in Palestine club threatened to “eradicate” Zionism on campus. Also, last semester, in the wake of the Stoneman Douglas High School shooting in Parkland, Fla., the Young Democratic Socialists of America group at Stony Brook demanded that the campus police be disarmed

    Campus Reform  reported that the university’s Graduate Queer Alliance claimed that a debate in which a Christian author participated was “hate speech” in 2015. Furthermore, the entire SUNY system, which comprises of more than sixty colleges and universities, passed a resolution to “Create Transgender Health Care Education at SUNY Campuses” in Jan. 2017.

  • 'Overheating' US Economy Sparks Buying Frenzy For Private Jets

    Nothing says “healthy middle class recovery” quite like the luxury private jet market catching fire, which is the phase where the global economy finds itself right now with private aircraft getting so “hot” that even used planes are difficult to find.

    According to Bloomberg,  only a dozen pre-owned Falcon 7X planes are on the market currently, down from about 35 that were on sale a ayear and a half ago. As the market is tightening, buyers of luxury private aircraft are getting more aggressive, according to aircraft broker Steve Varsano.

    Varsano found out that bidding aggressively in the luxury plane market doesn’t even work sometimes. He recently bid on a plane sight unseen for a client who wanted a Dassault Aviation SA aircraft in India. He lost the bid when three other buyers emerged, and commented to Bloomberg: “The tables have turned. Just last year, the person running the sale would have been calling me everyday saying, ‘Hey, when are you coming over?'”

    Luxury jets had been in a glut for years, allowing buyers to call the shots. However, tax cuts in the United States have put sellers in control and companies like Emerson Electric and NextEra Energy Inc are helping the market rebound with recent purchases.

    And it’s great news for companies that make these planes like Embraer SA, Textron Inc. and General Dynamics Corp.’s Gulfstream division. They are all in the process of rolling out new models and are expected to deliver 8% more aircraft next year than this year. That stat defies the trend of deliveries being flat or down since 2014.

    The resurgence in the industry is coming mostly from the United States. About 70% of new plane deliveries have gone to the US, which already houses about 60% of the world’s private jets. The reduction of corporate taxes in the United States, from 35% to 21% has made companies flush with cash for large purchases. In addition, the rule change to allow for depreciation of capital investments has increased the incentive to buy aircraft.

    According to Bloomberg, here are some of the new models that will be hitting the market soon:

    • Bombardier is awaiting certification from the U.S. and Europe to begin deliveries of the Global 7500, the largest purpose-built corporate jet.
    • Gulfstream, whose G650 is the current holder of the biggest-jet crown, delivered a somewhat smaller plane, the G500, in September. It expects another model, the G600 to begin service early next year.
    • Cessna, a unit of Textron, is awaiting certification of its Longitude. The midsize jet is bigger than the company’s existing Latitude plane.
    • Not to be outdone, Embraer is increasing the range and improving cockpit controls of its similarly-sized Legacy planes and giving them a new moniker: Praetor.
    • Switzerland’s Pilatus Aircraft began deliveries earlier this year of its first jet aircraft, the PC-24.

    In addition, demand is also spiking for brand new planes that are based on older designs. For instance, Anadarko took delivery last month of a 2018 Gulfstream G550. This was the plane that Gulfstream made prior to the popular G650. Synovus Financial Corp. and NextEra Energy both recently purchased 2018 Embraer Legacy 500s. In September, Emerson purchased a used 2013 Falcon 7X. The company told Bloomberg: “Emerson is retiring an aging corporate aircraft. The 30-plus-year-old plane is significantly less efficient than the 2013 plane, which will offer better fuel efficiency and a much improved range to access global facilities.”

    As a result of purchases like these, prices have stabilized in the industry and used jet inventory is depleted. 

    According to Honeywell, pre-owned private jet inventory is down 13% from a year ago. For jets that are younger than 10 years, the number is more pronounced: inventory has decreased by 30%. The lowering of inventory in the used jet market foreshadows robust new jet sales. Honeywell estimates that 7,700 planes will be delivered over the next decade.

    Barry Justice, president of Corporate Aviation Asset Professionals, told Bloomberg: “Inventory is getting picked over. Good airplanes with high-quality avionics and interiors in good condition are getting harder to come by.”

    To be sure, the private jet market – which is reserved for the ultra high net worthy and corporations – is a bright spot in the US, where the stock market is just now starting to show some semblance of volatility. The recession, now nearly a decade ago, wound up throwing the jet market into turmoil at the time. Some in the industry haven’t lost sight of that. 

    Brian Foley, a business-aircraft consultant who spent 20 years as marketing director for Dassault’s North American jet unit, stated: “There’s one bogeyman hanging out there and that’s how long can this U.S. expansion go.”

  • "It's Like A Western Movie" – Paul Craig Roberts Fears A US-Russia Showdown In The Making

    Authored by Paul Craig Roberts,

    It has taken the US military/security complex 31 years to get rid of President Reagan’s last nuclear disarmament achievement – the INF Treaty that President Reagan and Soviet President Gorbachev achieved in 1987.

    The Intermediate Range Nuclear Forces Treaty was ratified by the US Senate on May 27, 1988 and became effective a few days later on June 1. Behind the scenes, I had some role in this, and as I remember what the treaty achieved was to make Europe safe from nuclear attack by Soviet short and intermediate range missiles, and to make the Soviet Union safe from US attack from short and intermediate range US nuclear missiles in Europe. By restricting nuclear weapons to ICBMs, which allowed some warning time, thus guaranteeing retaliation and non-use of nucular weapons, the INF Treaty was regarded as reducing the risk of an American first-strike on Russia and a Russian first-strike on Europe, strikes that could be delivered by low-flying cruise missiles with next to zero warning time.

    When President Reagan appointed me to a secret Presidential committee with subpoena power over the CIA, he told the members of the secret committee that his aim was to bring the Cold War to an end, with the result that, in his words, “those God-awful nuclear weapons would be dismantled.” President Reagan, unlike the crazed neoconservatives, who he fired and prosecuted, saw no point in nuclear war that would destroy all life on earth. The INF Treaty was the beginning, in Reagan’s mind, of the elimination of nuclear weapons from military arsenals. The INF Treaty was chosen as the first start because it did not substantially threaten the budget of the US military/security complex, and actually increased the security of the Soviet military. In other words, it was something that Reagan and Gorbachev could get past their own military establishments. Reagan hoped that as trust built, more nuclear disarmament would proceed.

    Now that President Reagan’s remaining achievement has been destroyed, what are the consequences of the Trump administration’s concession to the profits of the US military/security complex?

    There are many, none good.

    The massive US military/security complex profits will increase as more increasingly scarce American resources flow into the production of intermediate range missiles in order to counter “the Russian threat.” The Republicans will want to pay for this by cutting Social Security and Medicare. I am unsure that the Democrats would be any different.

    The Zionist neoconservatives now have their hope rekindled of re-establishing American and Israeli hegemony with an undetected first strike nuclear cruise missile attack on Russia.

    More pressure will be on Putin’s government from Alexei Kudrin, the Jewish Lobby, and the billionaire oligarchs put in place by Washington and Israel during the Yeltsin years when Russia was degraded to an American vassal state. These Russian traitors are so powerful that Putin has to tolerate them. With neoconized Washington doing everything it can possibly do to damage the Russian economy and to draw Russian resources off from economic and infrastructure needs to military spending, Kudrin and the Western-supported elements of the Russian media will, with their demands to accommodate Washington, encourage Washington to put yet more pressure on Russia with the intention of forcing Russia into a vassal status with the Germans, British, French, and the rest of Europe, along with Canada, Australia, and Japan.

    The Russian government, by its meek response to extraordinary provocations, continues to encourage more provocations, as the provocations cost the US and its vassals nothing. The Russian government’s toleration of traitors, such as Kudrin, does not convince Western peoples that Russia is an open, free speech society. Instead, they believe Kudrin, not Putin. Americans believe that Putin is a thug who stole $50 billion and is one of the world’s richest men. I heard this yesterday from my own cousin. The Western media never paints a correct picture of life in Russia. The only achievement of the Russian government’s non-confrontational response to the West and toleration of treason within its own government is to convince Washington that Putin can be overthrown, just like the pro-Russian president of Ukraine and the presidents of Honduras, Brazil, Argentina.

    In the 20th century Americans, or that small percentage that is sentient, were influenced by dystopic novels such as Kafka’s The Trial, Orwell’s 1984, and Huxley’s Brave New World. We identified these novels with life in the Soviet Union, and we feared being conquered and subjectged to such life.

    It was a long time before I realized that the “Soviet threat” was a hoax, like Saddam Hussein’s “weapons of mass destruction,” like “Iranian nukes,” like “Assad’s use of chemical weapons,” like . . . you can provide the examples.

    The vast majority of the peoples in the world have no idea what is happening. They are trying to find or to keep jobs, to provide housing and food, to find the money for a mortgage or car or credit card payment in the US, and in much of the world water to drink and a bit of food to eat. They are stressed out. They have no energy to confront bad news or to figure out what is happening. They are abandoned by governments everywhere.

    Outside of Russia, China, Iran, Venezuela, where is there a government that represents the people?

    Even in Russia, China, Iran, Venezuela, and North Korea, are there governments that actually believe in themselves instead of in Western propaganda?

  • As Trump Approval Hits Record High, Dems Fear Low Millennial, Hispanic Turnout

    With just two weeks left until the midterm vote, Democrats are worrying that their get-out-the-vote efforts (which have included such novel strategies as catfishing people on twitter) won’t mobilize the two demographic groups that are seen as crucial to a Democratic victory: Young people and Hispanics, per Bloomberg.

    Trump

    Meanwhile, the latest Gallup poll shows that support for President Trump surged to 44% during the first two weeks of October, just one percentage point below his personal best, which was reached during his first week in office. Gallup attributed the bump to the contentious confirmation of Supreme Court Justice Brett Kavanaugh, as the decades-old accusations of sexual misconduct apparently galvanized support for the president.

    G

    The boost in Trump’s approval rating helped push his average approval rating for his seventh quarter in office, which began July 20 and ended October 19, to 41.2%. This Q7 average  fell short of his 41.9% sixth-quarter average, but it’s still nearly 5 percentage points above where it stood one year ago. And while Trump’s Q7 approval is still comparatively low, it’s not much lower than similar ratings for Bill Clinton (41.4% in 1994), Ronald Reagan (41.7% in 1982) and Jimmy Carter (42.3% in 1978). Trump’s immediate predecessor, Barack Obama, also registered a weak Q7 approval rating during his seventh quarter in office, averaging 44.7% job approval in the late summer and early fall of 2010.

    G

    In addition to Kavanaugh, several other notable developments occurred during Trump’s 7th quarter. The BEA confirmed that GDP growth expanded to 4.2% during the second quarter, consumer confidence climbed to its highest level in 2 decades while the S&P 500 broke through 2,900 for the first time.

    G

    Unsurprisingly, Americans who identify or lean Republican have consistently given Trump higher job approval ratings, and during his seventh quarter in office, their average approval rating increased from 81% to 85%, a sign that the president is slowly winning over more voters who were likely once members of the “#NeverTrump” camp. His average Q7 approval rating among independent voters also improved by 3 percentage points.

    FOur

    And while poll suggest that Republicans are closing the gap with Democrats, increasing the likelihood that they retain control of the House and the Senate following the Nov. 6 midterm, the Dems are worried that signs of interest among Latino voters won’t translate to the voting booth. According to Bloomberg, one survey released Sunday found 71% of Latinos registered high interest in the midterms, a jump from the 49% of Latinos who said that in mid-September. Among voters under 35, the poll said 51% expressed high interest, which is lower than the 65% average for all registered voters.

    This is hugely problematic for Democratic strategists, because there are 31 GOP-controlled districts where Hispanics make up one-quarter of the population or more.

    “It’s just a really, really big question about who’s going to turn out to vote,” Lake said. “We could lose Senate seats over it. We could lose – the margin in the House could be greatly reduced. There are a good 15 seats where the millennial and Latino vote make a huge difference, could be the margin of victory.”

    In the past, any interest ahead of the vote expressed by young voters and minorities didn’t translate at the ballot box, as both demographics largely sat out the midterms in 2014, 2010 and 2006. Historically, the trend in non-presidential elections is that voters are older, white and married – demographics that often benefit Republicans.

    In 2014, Hispanics comprised 25.1% of eligible voters but just 6.8% of the electorate. In 2010, they accounted for 21.3% of eligible voters and 6.6% of the electorate. In 2006, a strong year for Democrats, they were 17.3% of eligible voters and just 5.6 percent of the electorate.

    One strategist perfectly summed up the contradiction in the data: while young voters are “very, very fired up, but the question is: Are they fired up for the next protest or for the next election?”

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Today’s News 23rd October 2018

  • New Cold War In Africa? Russia Bolstering Military Advisers To Central African Republic

    Following the significant expansion of United States Africa Command (AFRICOM) forces throughout the African continent over the past half-decade, Russia is playing its own hand at advising indigenous forces while increasing its military footprint in central Africa. 

    At the end of last week Russia announced it would be significantly expanding its military advisory role in the Central African Republic (CAR) after earlier this year it established 175 trainers to CAR forces and donated hundreds of weapons weapons following an exemption from a United Nations arms embargo that would allow external forces to bolster the CAR government’s fight against militia groups waging an insurgency. 

    Last Friday Russia said it is deploying 60 more instructors to engage it what international reports have described as “its most significant military foray in Africa in decades”. And on Monday, a high Russian official who personally represents President Putin in the region indicated an open-ended commitment to the conflict which could involve sending more troops

    The Russian President’s Special Representative for the Middle East and Africa, Deputy Foreign Minister Mikhail Bogdanov, addressed the issue of scope and timeline to the operations on Monday to reporters: “It all depends on the will of the country’s government, of its legitimate authorities,” according to TASS. “When we have the opportunity, we always respond to requests. I am talking about cooperation in the sphere of security.”

    “So I am not ruling that out [sending additional military instructors to the Central African Republic]. If there is a need for more, there will be more,” Bogdanov said.

    Russia had initially sent military advisers and technical aid to country last March at the request of the CAR’s president. The country has been in crisis since 2013 when the Islamist Seleka coalition from the north of the country took over Bangui – the country’s capital and largest city – toppling then-President Francois Bozize. Chaos was unleashed further as counter-militias went after Muslims in the wake of massacres against Christians and followers of traditional African religions. The U.N. has cited that over 6,000 people were killed during the opening part of the crisis. 

    The Central African Republic (CAR):

    Meanwhile Russian media sources have long confirmed that many of the Russians in CAR are private security contractors engaged in multiple roles such as “mediating negotiations among armed groups, securing mining projects and advising CAR’s president,” according to TASS. 

    According to Reuters, the number of Russian contractors in the country remains a matter of speculation:

    Estimates of the total number of Russians in CAR vary widely, from 250 to 1,000. The foreign ministry did not respond directly to questions about the presence of private security contractors.

    But Russia has also been quick to note that it coordinates with the U.N. and operates in accordance with its approved obligations: “There is an agreed framework, some restrictions, but we act in accordance with our obligations,” the deputy foreign minister explained. The 60 additional instructors Russia lately announced will reportedly coordinate with U.N. forces already in the country. 

    Western media began more closely scrutinizing Russia’s role in central Africa after three Russian journalists were murdered while reporting from the country in late July.

    The three journalists were well-known for their independent and Russian-opposition reporting, and were said by their editors to be investigating a Russian private military company, called Wagner, with links to the Kremlin when they were ambushed near the village of Sibut, almost 200 miles north of CAR’s capital of Bangui.

  • Britain's Grooming Gangs: Part 2

    Authored by Denis MacEoin via The Gatestone Institute,

    Read Part 1 here…

    Men, after a certain age — as nature seems to have intended to preserve the human race — are often sexually attracted to women. Women, similarly, are often sexually attracted to men, even if many cultures try to keep that proclivity a closely-guarded secret.

    Different cultures handle human sexuality in different ways, presumably to avoid the potential social disruption it could create. This control has traditionally been affected by religious doctrines, laws, and patriarchal priests, ministers, rabbis, muftis and other clergy. In the West, women’s dress, behaviour, and rights to autonomy have been freed from religious control only in the 20th and 21stcenturies, with the rise of the suffragettes, feminism and the availability of safe contraception.

    Judaeo-Christian culture has involved restrictions of this kind, with monogamy enforced, adultery condemned, divorce often hard or sometimes impossible to obtain even for women suffering physical and psychological abuse, a lifetime of childbirth and nurturing, often while turning a blind eye to men’s sexual independence. Changes that have taken place in Western culture for the past century are unlikely to undergo much reversal in the years to come. Most women today in the West dress as they choose, some modestly, others in inviting ways. Women insist on civil rights, play increasingly important roles in politics, business, the military, education, and all professions, and there are even female members of the clergy in many churches, such as the Anglican Church and the synagogues and temples of the Jewish Reform and Conservative movements.

    This is the new, Western world in which immigrants from other cultures now live, some with relief, others too bewildered to find safe pathways through which to negotiate their way between our freedoms and their inherited assumptions about women, their place in society, and their sexuality. Nowhere is this dilemma sharper than between Muslim immigrants in the West and the democratic values they encounter.

    In part, this is because traditional and current Islamic culture with regard to sexuality differs markedly from that of the West. As in the Judaeo-Christian universe, women are restricted and men are given superior rights, but Islam, both as a religion and a culture, has a very different set of rules and legal codes for relations between the sexes, both in the obvious ways (burqas, niqabs, and hijabs) and in less familiar concepts. It is possible that these differences that go far to explain why child sexual grooming gangs and the collective sexual harassment of women have taken hold in some places.

    Here are a few of those differences.

    Shari’a law allows a man up to four wives, but women only one husband. Shari’a law also allows a man the right to have sexual relations with as many slave girls or concubines as he can afford (hence the sometimes massive harems kept by Muslim rulers, officials, and wealthy men). Shari’a law also allows a man the freedom to divorce a wife sometimes by as little as saying three times “I divorce you”. The practice was outlawed in India only this year, and rights for divorce are much harder for a woman to exercise.

    Shari’a law allows a man in Shi’i Islam the liberty of taking a temporary wife in mut’a (“pleasure”) marriage in a contract for as short as an hour; and, in some places in Sunni Islam, to have a “traveller’s wife” or wives in misyar marriage when travelling from home. To add to all this, men are granted houris (beautiful virgin companions) when they pass into eternal life, with some 70 reserved for martyrs. In one famous statement by a religious scholar, “the erection is eternal”.

    To a certain type of Western man, this might seem to be sexual heaven: almost as many women as you want on a flexible basis. No alimony in case of divorce, automatic custody of children once they turn seven, no guilt. The 19th-century ruler of Iran, Fath-‘Ali Shah (1769-1834), was famous for his long beard, his more than 1,000 wives, his 60 sons, his 55 daughters, and his royal family of over ten thousand by the mid-century.

    Although Muslim men are, of course, no different from the rest of us, nevertheless, all the rules governing sexuality may be easily found in the learned tomes of Shari’a law, enforced by fatwas from jurisprudents, and enshrined in the judicial systems of more than one Islamic country in the present day. The result is the perpetuation of attitudes towards women that often appear to debase them and allow men to treat them with contempt.

    The most painful modern examples of this contempt may be found in Muslim countries that carry out public floggings (see here, here and here) for offences such as “standing too close” to a man or for running away from husbands who beat them and stoning women to death, even for being raped (for example, here and here).

    These take place in SudanIndonesiaIran, in some Gulf States such as Saudi Arabia and the UAE, in parts of Pakistan, the Maldives, and, of course, in areas controlled by the Islamic State.

    As often cruelty to women happens not only behind closed doors, but in the public square, one can only guess how this display affects both women and men. Sons see how their mothers are treated; this too doubtless informs their behaviour.

    In Iran, the use of sexual torture on women in prisons is the subject of a full-length study. Shadi Sadr and Shadi Amin’s book, Crime and Impunity: Sexual Torture of Women in Islamic Republic Prisons details topics such as “Raping of Virgins before Execution”, “Prison Marriages”, “Rape of Prisoners” — all backed by witness testimonies and case studies.

    One cannot rule out the likelihood that even knowing of — let alone witnessing — such humiliation may have, in a way, energised Britain’s child sexual grooming gangs.

    A congruent practice found in some Arab states, notably Egypt, is another public spectacle that involves men watching women being chased, sexually abused, and raped. This is known as taharrush (harassment) or taharrush jama’i (mass harassment). Here is one description of what happens:

    A group of Muslim men target a (non-Muslim) woman who is not wearing Hijab in a crowd, encircle her, sometimes singing, dancing and/or chanting, and push her companions, if any, out of the circle. The woman is caught off guard and at first thinks the Muslim men just want to sing and dance with her, until the circle closes around her, at which point more Muslim men join to form three layers that render the circle virtually impenetrable.

    At that point, those in the inner layer rip off the woman’s clothes, grope, beat, sexually assault and rape her while those in the second layer watch the assault take place, and those in the outer layer, who are too far away or too short to watch the assault, dissuade or fight off would-be rescuers, even telling them that they are just helping a woman in need.

    It should be added that the woman need not be a non-Muslim. Many Muslim women are chased and handled in this way. The online journal Jadaliyya, published by the Beirut-based Arab Studies Institute, studied this activity as far back as 2013. The journal stated that, “In Egypt, sexual harassment is widespread and touches the lives of the majority of women whether on the streets, in public transportation, or at the work place, the super market, or political protests.” The same article later declares:

    “… one key argument in the victim-blaming that is salient in our everyday narratives is the common and vulgar perception that sexual harassment occurs when women dress ‘provocatively.’ In fact, the only thing that Egyptians who face sexual harassment have in common is that over ninety-nine percent of them are females.”

    It should not be surprising, then, that the sight of non-Muslim girls and women walking freely on European streets even in winter clothes has provoked large numbers of male refugees and migrants to engage in taharrush jama’i, starting with the assaults in Cologne and other German cities on New Year’s Eve 2016. Cologne’s police chief, Jürgen Mathies, declared:

    “Many of the alleged attackers were from countries where this behaviour, where women are hemmed in and then abused by a large number of men at once. I must say that this phenomenon was not known to me in Germany before.” [For his full statement in German, see here.]

    By January 7, Germany’s Federal Criminal Police Office (Bundeskriminalamthad already identified the assaults as a form of taharrush jama’i, and on June 7 their full report on the incidents made the same link.

    At this point it is necessary, however painfully, to note that the common denominator in all these forms of harassment and abuse of women is that the men involved are all members of the same religious and cultural group. There are, of course, variations between countries and even parts of countries, specific groups, and many individuals. It would be totally inaccurate, wrong and invidious to say that all Muslim men share these characteristics, but it remains clear that hundreds of thousands, if not millions, (out of 1.8 billion) do. The problem has been exacerbated since the late 1970s and the Iranian Revolution by the shift away from secularism back towards religiosity. Even Turkey, which, under Atatürk and his successors, had been the most secular Muslim state, has now reverted to pious and radical Islamism.

    Turkey’s educational system now rears children and young people to become obedient Muslims instead of thinking adults.

    One aspect of Shari’a law exists, however, that may well have a bearing on attitudes towards non-Muslim girls and women of all ages. This is the ruling that “captive women” (who are invariably non-Muslims: Jews, Christians, Yazidis, Hindus or others) taken in jihad wars may be made sex slaves, forcibly married, used as concubines, and bought and sold in the marketplace.

    It is important not to assume that the members of British grooming gangs consider themselves jihadis entitled to capture non-Muslim girls. They do not even appear at all pious. But knowledge of such practices (for example herehere, and here) is likely to have some impact on Muslims coming from countries where some form of slavery or indentured servitude still exists. In December 2014, Daniel Pipes identified Afghanistan, Mali, Mauritania, Oman, rural Pakistan, Saudi Arabia, Sudan, and Yemen as Muslim-majority states holding on to enslavement, even despite some laws to ban the practice. World Atlas adds Iran and South Sudan to its list of countries with the highest prevalence of slaves in our era.

    Sadly, in the case of Britain’s grooming gangs, religious ideology does not play a role in forbidding child sexual grooming. It is important to examine, as we shall do in Part 3, just how crucial a factor this seems to have been in community silence about them.

  • From Earthquake-Sensing To Sex-Simulation – Microchip-Implanted Biohacking Has Gone Wild

    The human augmentation market could increase tenfold, to $2.3 billion, in seven years. Biohacking advocates say 100,000 people around the world have already been transformed into human cyborgs, which means they have microchip implants in their bodies to open doors, store passwords, hold personal data, and or even for simulation sex. 

    Patrick Kramer, the chief executive officer of Digiwell, a Hamburg startup turning people into cyborgs, spoke with Bloomberg about microchipping and body hacking.

    Kramer said he had implanted about 2,000 microchips in the past 18 months, and even told Bloomberg that he has three chips in his hands: one to open his office door, another to store health data, and the last enables him to share contact information.

    Digiwell is one of a handful of biohacking and human augmentation companies in Europe and estimates that there are about 100,000 cyborgs worldwide. “The question isn’t ‘Do you have a microchip?” Kramer says. “It’s more like, ‘How many?’ We’ve entered mainstream.” 

    Advisory firm Gartner Inc. identified do-it-yourself biohacking as an emerging technology trend– others include artificial intelligence, automation, and blockchain with the potential to severely disrupt businesses heading into 2020. 

    Another research firm OG Analysis predicts the human augmentation market, which includes bionic limbs and computer brains could grow more than tenfold, to $2.3 billion. “We’re only at the beginning of this trend,” says Oliver Bendel, a professor at the University of Applied Science & Arts Northwestern Switzerland who specializes in machine ethics. 

    A Spanish dancer named Moon Ribs told Bloomberg she has a microchip in her arm connected to seismic sensors, which is triggered by earthquakes. She uses the technology in a performance art piece called Waiting for Earthquakes. Neil Harbisson, a colorblind artist from Ireland, has sensors in his head that lets him “hear” colors. And lastly, if these cyborgs are not weird enough, Rich Lee, from Utah, developed a cyborg sex toy he calls the Lovetron 9000, a vibrating device to be implanted in the pelvis. 

    Lee gave a speech at BdyHax, a conference in Austin earlier this year that brought together national and international speakers on wearable and implantable tech, brain-computer interfaces, prosthetic tech, gene therapy, bioethics, and the latest breaking research in the field. At the Austin conference, speakers included the developer of an artificial pancreas, a representative of a group advocating tech connections to the brain, and a scientist from DARPA.

    Friedmann Ebelt, an activist with Digitalcourage, a German data privacy and internet rights group, told Bloomberg that biohacking raises many questions, particularly about data protection and cybersecurity as every tech gadget risks being hacked. Ebelt said that hackers could turn implants into cyberweapons, with the potential to send malicious links to others. “You can switch off and put away an infected smartphone, but you can’t do that with an implant.”

    To become a cyborg, Digiwell charges $40 to $250 per chip, plus a $30 fee to inject the device, which can be completed at their Hamburg office. His clients include a lawyer who wants access to confidential files by using his hand to open an electronically locked filing cabinet, a teen with no arms that has a chip in her foot to open doors and an elderly man with Parkinson’s disease who continually forgets his keys. 

    Kramer is also the co-founder of another company called VivoKey Technologies, which is developing a device that will generate passwords for online transactions, and buyers can download software to upgrade it with more functions. “Humanity can’t wait millions of years for evolution to improve their brains and bodies,” Kramer says. “That’s why we’re doing it ourselves.” 

    BofA chief investment strategist Michael Hartnett tends to agree technological innovation is becoming rapidly transformational, notably in fields of information technology, biotech, and automation. 

    He said in a recent note: 

    “The greater speed & connectivity of technology is extremely disruptive to numerous industries; accelerating supplies of robots, AI, data, human life are profoundly deflationary. 

    By 2023, the average $1,000 laptop will be able to communicate at speed of the human brain…and 25 years later, at the rate of the entire human face.

    The number of connected devices per person: 0.08 million in 2003; 3.5 billion in 2015, 6.6 billion in 2020.” 

    Biohacking is an open innovation and social movement that seeks to enhance the capabilities of the human body. This technology is rapidly turning people into cyborg-like creatures. Some of the tech has not been rigorously tested in laboratories, which means there are many unknown unknowns about the long-term health implications of biohacking. 

  • "Putin's Puppet" Advances Nuclear Missile Escalations Against…Putin?

    Authored by Caitlin Johnstone via Medium.com,

    Yesterday the news broke that Swamp Monster-In-Chief John Bolton has been pushing President Trump to withdraw from the Intermediate-Range Nuclear Forces Treaty, the 1988 arms control agreement between the US and the Soviet Union eliminating all missiles of a specified range from the arsenals of the two nuclear superpowers. Today, Trump has announced that he will be doing exactly as Bolton instructed.

    This would be the second missile treaty between the US and Russia that America has withdrawn from since it abandoned the Anti-Ballistic Missile Treaty in 2002. John Bolton, an actual psychopath who Trump hired as his National Security Advisor in April, ran point on that move as well back when he was part of the increasingly indistinguishable Bush administration.

    https://platform.twitter.com/widgets.js

    “This is why John Bolton shouldn’t be allowed anywhere near US foreign policy,” tweeted Senator Rand Paul in response to early forecasts of the official announcement.

    “This would undo decades of bipartisan arms control dating from Reagan. We shouldn’t do it. We should seek to fix any problems with this treaty and move forward.”

    “This is the most severe crisis in nuclear arms control since the 1980s,” Malcolm Chalmers, the deputy director general of the Royal United Services Institute, told The Guardian.

    “If the INF treaty collapses, and with the New Start treaty on strategic arms due to expire in 2021, the world could be left without any limits on the nuclear arsenals of nuclear states for the first time since 1972.”

    “A disaster for Europe,” tweeted Russia-based journalist Bryan MacDonald. “The treaty removed Cruise & Pershing missiles, and Soviet ss20’s from the continent. Now, you will most likely see Russia launch a major build up in Kaliningrad & the US push into Poland. So you’re back to 1980, but the dividing line is closer to Moscow.”

    “Russia has violated the agreement. They’ve been violating it for many years and I don’t know why President Obama didn’t negotiate or pull out,” Trump told reporters in Nevada.

    “We’re not going to let them violate a nuclear agreement and do weapons and we’re not allowed to. We’re the ones that have stayed in the agreement and we’ve honored the agreement but Russia has not unfortunately honored the agreement so we’re going to terminate the agreement, we’re going to pull out.”

    What Trump did not mention is that the US has indeed been in violation of that agreement due to steps it began taking toward the development of a new ground-launched cruise missile last year. The US claims it began taking those steps due to Russian violations of the treaty with its own arsenal, while Russia claims the US has already been in violation of multiple arms control, nonproliferation, and disarmament agreements.

    https://platform.twitter.com/widgets.js

    So, on the one front where cooler heads prevailing is quite literally the single most important thing in the world, the exact opposite is happening. Hotter, more impatient, more violent, more hawkish heads are prevailing over diplomacy and sensibility, potentially at the peril of the entire world should something unexpected go wrong as a result. This is of course coming after two years of Democratic Party loyalists attacking Trump on the basis that he has not been sufficiently hawkish toward Russia, and claiming that this is because he is Putin’s puppet.

    In response to this predictable escalation the path for which has been lubricated by McResistance pundits and their neoconservative allies, those very same pundits are now reacting with horror that Putin’s puppet is now dangerously escalating tensions with Putin.

    “BREAKING: Trump announces that the United States will pull out of the Intermediate-Range Nuclear Forces Treaty that the US has been in for 31 years,” exclaimed the popular Russiagater Brian Krassenstein in a tweet that as of this writing has over 5,000 shares. “Welcome back to the Cold War. This time it’s scarier And no, It’s not Obama, or Hillary or the Democrat’s fault. It’s ALL TRUMP!”

    “Hilarious to listen to all this alarmed screaming about US withdrawal from INF Treaty emanating from those who for 2 years have been demanding that Trump get tough with Russia,” tweeted George Szamuely of the Global Policy Institute. “Now that they’ve got their arms race I hope they are pleased with themselves.”

    “Are those who have spent the past two years warning of a Trump-Kremlin conspiracy & cheering confrontation w/ Russia ready to shut the fuck up yet?” asked Aaron Maté, who has been among the most consistently lucid critics of the Russiagate narrative in the US.

    https://platform.twitter.com/widgets.js

    Are they ready to shut the fuck up? That would be great, but this is just the latest escalation in a steadily escalating new cold war, and these blithering idiots didn’t shut the fuck up at any of the other steps toward nuclear holocaust.

    They didn’t shut the fuck up after Trump’s capitulation to the longstanding neoconservative agenda to arm Ukraine against Russia.

    They didn’t shut the fuck up after Americans killed Russians in Syria as part of their regime change occupation of that country.

    They didn’t shut the fuck up when this administration adopted a Nuclear Posture Review with greatly increased aggression toward Russia and blurred lines between when nuclear strikes are and are not appropriate.

    They didn’t shut the fuck up when Trump started sending war ships into the Black Sea “to counter Russia’s increased presence there.”

    They didn’t shut the fuck up when this administration forced RT and Sputnik to register as foreign agents.

    They didn’t shut the fuck up when this administration helped expand NATO with the addition of Montenegro, at the assigning of Russia hawk Kurt Volker as special representative to Ukraine, at the shutting down of a Russian consulate in San Francisco and throwing out Russian diplomats in August of last year, when Trump threw out dozens more diplomats in response to shaky claims about the poisoning of Sergei and Yulia Skripal, or when he implemented aggressive sanctions on Russian oligarchs.

    Why would they shut the fuck up now?

    As signs point to Mueller’s investigation wrapping up in the near futurewithout turning up a single shred of evidence that Trump colluded with the Russian government, it’s time for everyone who helped advance this toxic, suicidal anti-Russia narrative to ask themselves one question: was it worth it? Was it worth it to help mount political pressure on a sitting president to continually escalate tensions with a nuclear superpower and loudly screaming that he’s a Putin puppet whenever he takes a step toward de-escalation? Was it worth it to help create an atmosphere where cooler heads don’t prevail in the one area where it’s absolutely essential for everyone’s survival that they do? Or is it maybe time to shut the fuck up for a while and rethink your entire worldview?

    *  *  *

    Thanks for reading! The best way to get around the internet censors and make sure you see the stuff I publish is to subscribe to the mailing list for my website, which will get you an email notification for everything I publish. My articles are entirely reader-supported, so if you enjoyed this piece please consider sharing it around, liking me on Facebook, following my antics on Twitter, checking out mypodcast, throwing some money into my hat on Patreon or Paypal,buying my new book Rogue Nation: Psychonautical Adventures With Caitlin Johnstone, or my previous book Woke: A Field Guide for Utopia Preppers.

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  • China Slams Pompeo's "Ignorant And Malicious" Debt-Trap Warning

    The Communist Party’s simmering antipathy toward Secretary of State Mike Pompeo – which was on full display earlier this month during an unprecedented public confrontation between Pompeo and his Chinese counterpart during a meeting in Beijing – boiled over once again this week as a series of editorials in China’s Global Times and China Daily newspapers attacked the secretary of state over remarks he made during a recent tour of Latin America, where he warned about the dangers of China’s so-called “debt diplomacy.”

    Pompeo

    Per Reuters, Pompeo met heads of state in Panama and Mexico during a Latin American tour late last week. And during one brief meeting with reporters, Pompeo warned during a visit to Mexico City that “when China comes calling it’s not always to the good of your citizens” referring to China’s strategy of extending cheap credit, then seizing assets – like they did with a port in Sri Lanka – that will help further the country’s neocolonialist ambitions.

    “When they show up with deals that seem to be too good to be true it’s often the case that they, in fact, are,” he said on Thursday in Mexico City, according to comments posted on the US State Department’s website.

    Though Pompeo clarified that the US has nothing against legitimate Chinese investments.

    “When they show up with a straight-up, legitimate investment that’s transparent and according to the rule of law, that’s called competition and it’s something that the United States welcomes,” said Pompeo. “But when they show up with deals that seem to be too good to be true it’s often the case that they, in fact, are.”

    Of course, Pompeo isn’t the only senior Trump administration official to criticize these aggressive tactics. Mike Pence centered his criticism of China’s economic aggression around the country’s strategy of using credit as a tool to entrench its global dominance and further expand its One Belt One Road global development strategy.

    But in an editorial published Monday, the state-run China Daily newspaper said Pompeo’s comments were “ignorant and malicious” and that criticisms surrounding the country’s use of “debt traps” were false.

    “Pompeo’s latest undisguised message to Panama and other countries not to participate in China-proposed Belt and Road projects lays bare the U.S. condescending and bullying manner to the region,” said the English-language China Daily.

    “Washington continually tries this tired old tactic of trying to pin suspicions about China’s motives on the Belt and Road so as hinder its advancement,” the newspaper added.

    The Global Times said in a separate editorial that Pompeo’s comments were “disrespectful” and accused the US of “trying to drive a wedge” between China and Latin America.

    “For years, Latin American countries have been pursuing peace and development, on which, however, the U.S. did not offer much support. Latin American countries depend on the U.S. economy, but the U.S. does not make the region rich and prosperous.”

    “Relations between China and Latin America are based on mutual respect and equality. As China is winning trust and support from Latin America, the U.S. feels lost and is trying to drive a wedge.”

    There’s a hint of irony in these criticisms, because while the US has long maintained strong political influence in the region, more recently, China has been making inroads that have driven several Latin American countries away from the US sphere of influence. Over the past two years, three Latin American countries – El Salvador, Panama, and the Dominican Republic – have switched diplomatic ties from Taiwan to Beijing. And China’s money-for-oil loans have essentially kept Venezuela’s disintegrating economy on life support. America’s dominance of the region may be nearing its twilight – no matter what Pompeo does or doesn’t say.

  • CDC's Salmonella Warning: Don't Dress Up Chickens For Halloween

    Authored by Mac Slavo via SHTFplan.com,

    The Centers for Disease Control and Prevention has had to warn Americans about the dangers of dressing up their chickens for the upcoming Halloween festivities. The CDC warns that putting your chickens in a costume could result in a salmonella infection.

    The agency says handling chickens to put on a costume on them and cuddling the birds can lead to salmonella exposure and an eventual infection. However, for some chicken owners, like Stephanie Morse, the birds are family and their owners enjoy dressing them up each year.

    “I just like to put a t-shirt on them or a sweater,” Morse said according to KOAA News 5, an NBC affiliate.

    This Salmonella outbreak appears  to be dominated by a strain of bacteria that seems to be resistant to drugs making it much more difficult to treat if a person is sickened Antibiotics resistance is becoming worrisome to health officials too, as many in developed countries overuse antibiotics, or take them for a virus such as the common cold or the flu. 

    Symptoms of a salmonella bacterial infection, which typically begin 12 to 72 hours after exposure to the bacteria, include diarrhea, fever, and stomach cramps and can last four to seven days. Most people infected with Salmonella recover without treatment, though in rare cases, antibiotics are needed for treatment. This particular strain of Salmonella has demonstrated resistance to multiple antibiotics, meaning treatment may be more difficult for the more severe cases. –SHTFPlan

    As of right now, the CDC is still tracking and investigating a current salmonella outbreak and so far it’s reached 29 states, and infected 92 people. The agency says handling chickens could be a contributing factor to the outbreak. But for chicken owners like Morse, it’s as if she was told to not pet her dog.

    “Can you ever imagine not being able to dress up your chickens? Or hold them?” she asked reporters

    “No. No. I love to hold them, I love to talk to them. Everybody has names,” Morse said.

  • "This Is Just The Very Tip Of The Iceberg" – Spike In Tariffs Paid By US Businesses

    President Trump is about to get an earful from Americans hurt by the escalating trade war.

    New data shows, American businesses and consumers just paid a 45% spike in duties, according to Tariffs Hurt the Heartland, a campaign that highlights the negative impacts of President Trump’s trade war on US businesses and the economy.

    Trade data released last Thursday during a town hall meeting in Pennsylvania discussed the tariffs’ impacts, featuring distillers, pork producers, frame manufactures, and other industry experts. 

    “For the most recent months available, August 2018, the amount of tariffs paid increased by $1.4 billion — or 45% — as compared to tariffs paid in August 2017. Tariff costs in Michigan tripled to $178 million and more than doubled in multiple states — to $424 million in Texas, $193 million in Illinois, $50 million in Alabama, $29 million in Oklahoma, $23 million in Louisana, and $7.3 million in West Virginia. 

    These costs strain businesses of all sizes but are particularly painful for small business, manufacturers, and consumers who bear the burden of tariff increases in the form of higher prices,” via the data compiled by The Trade Partnership and released by Tariffs Hurt the Heartland. 

    “These tariffs are taxes on American businesses and consumers,” said Tariffs Hurt the Heartland spokesperson Angela Hofmann. “They aren’t paid by other countries. They are paid here at home. What this data shows is that we are already seeing a steep increase both nationally and at the state level in the tariff costs businesses and consumers are paying.” 

    “This is just the very tip of the iceberg. The data released today offers a glimpse at what the coming pain from the trade war looks like. Once the tariffs on an additional $200 billion in goods kick in — these numbers will continue to trend sharply upward. We are hopeful that this data, combined the personal stories of harm that we’re sharing across America, will encourage this administration to move away from tariffs and to find new solutions to growing access to foreign markets,” Hofmann said. 

    The graduation of the trade war, and respective GDP hit, is shown by the Bloomberg chart below.

    Tariffs Hurt the Heartland noted that today’s trade data is showing a vicious spike in duties paid, which is only the beginning of the trade war; costs will continue to rise as the other announced tariffs go into effect. 

    “In Pennsylvania alone, we are seeing 55% higher costs or $45 million a month for state business from last year to this year. And it’s only going to get worse once additional tariffs kick in. Continuing to go down this track will only lead to more layoffs and higher prices,” Hofmann said. 

    “The steel and aluminum tariffs have had significant cost implications for the states. The section 232 steel tariffs have cost American companies an additional $1.5 billion, including $475 million in August. Previously, these products were duty-free. Imports into these states paid the most taxes for steel subject section 232 tariffs: Texas ($289 million), Michigan ($139 million), California ($104 million), Illinois ($103 million), Pennsylvania ($98 million) and Ohio ($77 million). 

    Aluminum tariffs also hurt producers throughout the country, costing American companies more than $125 million in the month of August alone. The largest increases to existing tariffs were paid in Texas ($14 million), New York ($11 million), California ($10 million), Kentucky ($7.4 million) and Illinois ($6 million).

    Lastly, section 301 tariffs cost American companies roughly $550 million in August. Products subject to section 301 remedies faced $594 million in tariffs in August, compared to just $46 million in August 2017. The large increase in tariffs came despite a less than 1% increase in the value of imports. Keep in mind: “List 2” tariffs did not take effect until August 23 and another batch of “List 3″ tariffs will take effect in September, so tariff costs should rise significantly in future months,” said the report. 

    Companies in Texas have paid $654 million more in tariffs in June through August than in the same three months the prior year, a 142% increase that is a direct consequence of President Trump’s escalating trade war. The impact is hurting small and medium-sized businesses. 

    Tariffs Hurt the Heartland shows that duties are not limited to just Texas, but have affected companies and consumers across the entire country. 

    A Reuters/Ipsos poll from early Sept. shows people in each of the five industrial states: Indiana, Ohio, Michigan, Pennsylvania, and Wisconsin; overwhelmingly think President Trump’s trade wars are “Not good” for their families. 

    Earlier this month, JPMorgan Chase & Co. turned cautious on the global economy, as they warned: a “full-blown trade war” next year between China and the US is expected. It seems like trade conflict between the world’s largest economies could erupt in the coming months, further straining American business and consumers, and send the world plunging into a global recession sometime in the next 12 to 16 months. 

    “A full-blown trade war becomes our new base case scenario for 2019,” JPM wrote in a recent note. “There is no clear sign of mitigating confrontation between China and the U.S. in the near term.” 

    Tariffs Hurt the Heartland ends the report with this video, letting the American people know that tariffs are nothing more than taxes. Prepare for 2019 and beyond; your taxes could jump significantly. 

     

  • America Has A Milk Problem

    Authored by Fred Dunkley via Safehaven.com,

    Not only does America have milk – it’s got a surplus of over 8 million metric tons, forcing dairy farms to shutter and farmers to simply start dumping millions of gallons of milk that far exceeds domestic and foreign demand.

    Declining consumption, increased production, retaliatory tariffs and lower prices in the face of increased costs have been walloping American farmers for some two years now, according to the Reedsburg Times Press.

    Northeastern states are the most affected by the glut. The State of Wisconsin has seen a net loss of more than 400 dairy farms this year alone, and in December last year, the state’s farmers dumped a record 160 million pounds of skim milk they couldn’t sell. That’s three times the amount they were forced to dump in 2012, according to CSMonitor.  

    By July, farmers in the Northeast had dumped 145 million pounds of milk, and 23.6 million pounds of that was dumped in July alone, according to Bloomberg.

    Much of the blame will be laid on Canada, which moved last year to implement its own supply management by restricting dairy trade from the U.S.

    But the blame isn’t all about Canada, and you have to follow some less direct paths to the end of this glut.

    For instance, the European Union has also seen a surge in its exports of dairy, and because Russia in 2014 largely banned all dairy exports from the EU, the EU has tapped up other markets, pushing out American dairy.

    Nor is it just about exports.

    Americans, while enjoying a brief flirtation with a yogurt craze, are now weaning themselves off milk, which has always been the dairy farmers top revenue generator.

    But American farmers aren’t necessarily like other industries from an operational perspective. They milk cows whether the market wants them to or not. They keep producing, even when supply is at the glut level. Then, it’s either shut down or find another way to put all the milk to use.

     “Dairy farmers are free-market guys – they don’t want to be told how much to produce,” Richard A. Ball, commissioner of New York’s Department of Agriculture and Markets, told Bloomberg.

    “It’s a lot more fun to talk about how to increase demand than restrict what they’re doing.”

    One potential light amid all this dairy darkness is the ‘New NAFTA’ agreement reached at the end of September, replacing NAFTA with the United States-Mexico-Canada Agreement (USMCA), which will give the U.S. greater access to the Canadian dairy market. In other words, dairy farmers from New York and Wisconsin, most notably, will be able to sell more of their product to Canada’s protected dairy market. In figures, it means opening up the Canadian market to American dairy farmers by 3.6 percent—or, accessing 3.6 percent of Canada’s $16-billion dairy market.

    According to the Wisconsin Agriculturalist, prior to the new trade deal, Canada had a 7.5-percent tariff on milk exports that were within quotas. Once it fell outside of quotas, that tariff became 241 percent. For blended dairy powder, over-quota tariffs were 270 percent. 

    So the new deal is a potential light – but not enough, say some. And while it might have somewhat of a stabilizing effect, it’s not enough to raise prices for American farmers.

    Other milk deals with top trading partners Mexico and China will have to be realized for American farmers to see prices increase at all—and this is where Trump’s tariffs still really hurt. Last year, U.S. producers sold $1.31 billion in dairy products (cheese, mostly) to Mexico, and $576 million to China. Both are now levying new tariffs on American dairy. 

    According to a study commissioned by the U.S. Dairy Export Council (USDEC), retaliatory tariffs by China and Mexico could lower dairy exports by $2.7 billion and depress dairy farmers’ revenues by $16.6 billion over the next several years.

    And a little good news on the domestic front wouldn’t hurt, either. Milk is being vilified by food gurus and health figures.

    There are plenty of other domestic enemies to the American dairy farmer, too. According to Public Opinion Online, more than 100 farmers have seen their supply contracts canceled by Dean Foods to make way for Walmart to start producing its own milk and attempt to dominate the supply chain. And from a price point, the retail giant is facing a win-win situation. While the national average for a gallon of milk is around $3.23, Walmart is selling its own brand for $2.

  • Harvard Calls It: Housing Market Slowdown Will Hurt Renovation Boom 

    The Trump bump has faded, and the real estate market is expected to soften into 2019. 

    The annual growth in national home improvement and repair spending by Americans is expected to slow in 2019, according to the Leading Indicator of Remodeling Activity (LIRA) released Thursday by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. 

    The LIRA project seems to be ringing the proverbial bell on the US real estate market, indicating year-over-year increases in residential remodeling expenditures will peak at 7.7% this year and then start a downward trajectory through the second half 2019. 

    Chris Herbert, managing director of the Joint Centers for Housing Studies, explained that remodeling activity remains above trend, but due to rising interest rates and waning existing home sales, the renovation boom could be constructing a top. 

    “Rising mortgage interest rates and flat home sales activity around much of the country are expected to pinch otherwise strong growth in homeowner remodeling spending moving forward,” said Herbert. “Low for-sale inventories are presenting a headwind because home sales tend to spur investments in remodeling and repair both before a sale and in the years following.” 

    Last month, Bank of America warned existing home sales have peaked, reflecting declining affordability, greater price reductions, and deteriorating housing sentiment. 

    Chief economist Michelle Meyer, said that “the housing market is no longer a tailwind for the economy but rather a headwind.” 

    BofA economist, John Lovallo became even more bearish on US real estate last week. He downgraded homebuilder stocks Toll Brothers, PulteGroup, and NVR and lowered his homebuilding estimates for 2018 and 2019. 

    “This morning BofA Merrill Lynch’s US economic team lowered its 2018-2019 housing starts and new home sales forecasts and thus we slightly temper our macro housing assumptions,” Lovallo said in a note Thur. 

    Analysts at Credit Suisse also downgraded homebuilding stocks, along with Home Depot and Lowe’s, due to higher interest rates hurting housing demand. 

    Homebuilders have been under pressure in Oct. The SPDR S&P Homebuilders ETF is down more than -23% YTD. This collapse in price coincides with a surge in interest rates. The 10-year note yield hit its highest level since 2011 earlier this month, and if 3.21 continues to violate, then yields risk higher highs. 

    Reuters News – Homebuilders down for three days in a row 

    • Shares of U.S. homebuilders continued their fall on the third consecutive day after BAML downgrades weak housing data earlier this week
    • D.R. Horton, KB Home, PulteGroup, M/I Homes, Lennar and Toll Brothers fell between 2pct and 3.2 pct
    • PHLX housing index .HGX down 1 pct
    • Analyst expect rising interest rates to temper some demand and affect housing affordability in U.S., weighing on earnings of homebuilders
    • BofA Merrill Lynch said Thur. U.S. housing recovery will be driven by entry-level and first-time buyers
    • Weak housing data Wed. showed homebuilding dropped more-than-expected in Sept., while building permits fell to a near 1.5 yr low
    • Separately, on Thur., Toll Brothers founder Robert Toll stepped down as executive chairman; Toll to remain a member of the board
    • PHLX housing index .HGX fell 25.9 pct YTD

    With housing peaking – if Harvard, BofA and Credit Suisse are all correct – the real estate market could be in for a whirlwind of trouble next year; something the Trump administration cannot afford into the next presidential election. 

     

     

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Today’s News 22nd October 2018

  • Putin Announces New Hypersonic Weapon Will Be Deployed In "Months"

    Russian President Vladimir Putin said Thursday that Moscow would deploy new Avangard hypersonic glider warheads in the “coming months,” adding that Russia’s hypersonic program is the most advanced in the world, according to a new report from the Financial Times

    “We are improving our attack systems in response to the construction of a missile defense system by the United States. Some of them are already in service, and some will be supplied in the near future,” said Putin, who was speaking at the Valdai Discussion Club in the Black Sea resort of Sochi Thursday, adding that Moscow’s hypersonic weapons program was well ahead of China and the US.

    “The Avangard system [will be deployed] in the next few months.” 

    Video of Putin at the Valdai Club in Sochi: 

    “It is a fact of life that we are ahead of all our partners and competitors in this sphere of high precision, hypersonic weapons,” he said.

    “No one else has that . . . In that sense, we feel very comfortable, very safe.” 

    This latest revelation comes seven months after Putin shocked Russia’s political elite at the annual Russian state of the union address in March by claiming Moscow had developed new nuclear weapons that cannot be shot down by US anti-ballistic missile defenses. The missiles, Putin said, are capable of striking almost any point on Earth while traveling at hypersonic speeds.   

    In what sounded like an implicit threat to the West, Putin also said back in March that Russia had repeatedly warned Washington not to go ahead with anti-missile systems that Moscow fears could erode its nuclear deterrent. However “nobody listened to us. Listen Now,” he said, to a loud ovation from the crowd of legislators, officials, and dignitaries

    A hypersonic glider is a projectile that can fly at speeds of over Mach 5 (+3,800 mph). The glider is extremely maneuverable, which makes its ballistic trajectory unpredictable, thus rendering most Western missile defense shields useless. 

    Still, according to CNBC of the six weapons Putin debuted in March, only two of them will be ready for war by 2020. 

    * * *

    Below is a list of recent developments in advanced Russian defense systems with the latest newly released videos by the Russian Defense Ministry, which Russia hopes will change “the configuration of threats and military power in general”:

    Kinzhal hypersonic missile

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    Russian MiG-31K fighters and Tu-22M3 long-range bombers are seen air launching the hypersonic missile. The Kinzhal is air-launched by the aircraft, which rockets it up to Mach 10 (7,600 mph). The missile has a range of 1,240 miles once launched and has struck fear in NATO officials.

    Avangard hypersonic missile system

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    The hypersonic missile with intercontinental range and the ability to fly Mach 20, more than 15,000 miles per hour, will be entering the battlefield in the near term, according to a Tass report. Earlier this year, serial production of the missile’s warheads had begun, according to a report.

    Sarmat (ICBM)

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    While combat deployments for the Sarmat ICMB system are not expected until 2021, a TASS report Thursday said “pop-up tests,” the ability to propel the missile out of its underground silo had been successful. TASS noted flight trials are next.

    Poseidon underwater drone

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    Trials of the underwater nuclear drone could be next. The video shows the manufacturing facility of the alleged Poseidon drone, which can carry a nuclear warhead to an enemy port or wipe out an entire carrier battle group.

    Burevestnik nuclear-powered cruise missile

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    Russia’s Defense Ministry says this nuclear propulsion system for the cruise missile, dubbed ‘Burevestnik’ has been successfully tested. The missile, which is designed to have “unlimited range and unlimited ability to maneuver,” will undergo more ground tests in the near term.

    Combat laser system 

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    The “combat laser system” Putin announced back in March is the most mysterious of them all. Little information has been provided on the system. However, the video features a military unit, operating with several Peresvet systems, accompanied by support vehicles.

    * * * 

    Glancing at the current position in the 53.5 Year War Cycle, it seems the “Mid-90s Peace Dividend” has transitioned into the chaotic world of today: Cold War 2.0, but this time — conflict is more likely. 

  • Britain's Grooming Gangs: Part 1

    Authored by Denis MacEoin via The Gatestone Institute,

    On July 24, 2018, Britain’s Home Secretary, conservative MP Sajid Javid, issued orders for research into the ethnic origins of the country’s many sexual grooming gangs that had involved large numbers of loosely-termed “Asian men”, who, over many years, had taken vulnerable young white British girls to use or pass on for sexual purposes. Most of the men have, Javid has stated been of Pakistani extraction, which makes the Home Secretary’s intervention significant. Javid’s father came, as did many other Pakistani immigrants, from Punjab, and with only £1 to his name. He became a bus driver, then a clothing store owner. Yet his five sons have all become fully integrated Britons, with successful careers in business, politics and the public sector. They are all models of second-generation immigrant achievement, miles away from the men in the gangs. Reporting on the Javid family, The Times wrote:

    “Javid’s appointment as the first non-white person — and the first with a Muslim background — to hold one of Britain’s great offices of state is the culmination of a six-decade family journey.”

    Given the great potential for controversy over identifying ethnicity as a factor in serious crimes, Javid showed courage in taking this move only months after his appointment in April to lead the Home Office. Criticism came quickly from the Labour Party. “Jeremy Corbyn denied there was any ‘problem’ with Pakistani men and abuse, saying: ‘The problem is the crime that’s committed against women from any community.” His combined political and ethnic experience will have shown Javid, based on previous Home Office bans and academic reports, that any such investigation might be used by the far right to attack Pakistanis and Muslims.

    Crossing party lines, Javid made his commitment to investigate the ethnic origins in a letter to Sarah Champion, the Labour Member of Parliament for Rotherham, the first city to experience grooming gangs on a large scale, and the site of the UK’s largest ever child sexual abuse scandal. Just under a year before, Champion had come under fire for daring to draw public attention to the problem of the preponderance of Pakistanis in the gangs.

    First elected to parliament in 2012, Champion, in 2015, served as the Shadow Minister for Preventing Abuse. She was awarded the post in recognition of her work on child sexual exploitation, notably by chairing a cross-party inquiry into child sexual exploitation. The inquiry was done in conjunction with the children’s charity Barnardo’s, which published a report in April 2014. Unfortunately, Champion had to resign briefly in 2016, when a number of MPs stood down in an attempt to remove Jeremy Corbyn. She was appointed Shadow Secretary of State for Women and Equalities in October 2016, a role for which she was well suited. In November, she launched a National Action Plan (Dare2Care) to prevent child abuse and violence in teenage relationships.

    Then things went wrong. She remains an MP, but was forced to resign her shadow cabinet post nearly a year later, on August 16, 2017, after a major controversy. During an interview with BBC Radio 4, on August 10, she said, about a major grooming gang which had just been convicted in Newcastle upon Tyne:

    All the towns where these cases have gone on, the majority of the perpetrators have been British Pakistanis…. One of the things that, for example, on the news last night, there was a picture of eighteen of the people who were convicted, that seventeen of those were clearly Asian men. And it just pains me that this is going on time and time and time again, and the government aren’t researching – you know – what is going on. Are these cultural issues, some sort of message going out inside the [Pakistani] community? We have got now hundreds of men, Pakistani men, who have been convicted of this crime. Why are we not commissioning research on what’s going on, and how we need to check and how we need to change what’s going on?

    On the same day, the less respectable tabloid newspaper, The Sunpublished an article by Champion saying much the same. Entitled, “British Pakistani men ARE raping and exploiting white girls and it’s time we faced up to it”, the article argued in part:

    For too long we have ignored the race of these abusers and, worse, tried to cover it up.

    No more. These people are predators and the common denominator is their ethnic heritage.

    We have to have grown-up conversations, however unpalatable, or in six months’ time we will be having this same scenario all over again.

    The irony of all of this is that, by not dealing with the ethnicity of the abusers as a fact, political correctness has actually made the situation about race.

    Although Champion subsequently tried to distance herself from the article, it had done her no favours in the Labour Party, which has stressed its opposition to racism — except against Jews. A cross-party group of MPs wrote to The Sun, condemning the article. Even though Champion had courageously stated that, “The perpetrators are criminals and we need to deal with them as such, not shy away from doing the right thing by fearing being called a racist”, she was forced to resign on August 16.

    Ironically, another Labour MP, Naz Shah, herself of Pakistani origin, tried to deflect Champion’s comments by stating, no doubt correctly, that nearly 90% of child abusers (presumably in the UK) are white men. She added, “What I won’t accept, or tolerate, is a narrative that demonizes every Pakistani man as a rapist.” But, of course, Champion had not been talking about child abuse in general in a mainly white country, only about the specifics of the grooming gang situation, previously unheard of in Britain; nor had she claimed for a moment that all Pakistani men were rapists. Not surprisingly, Shah herself (who had just been suspended in an antisemitism dispute, but then reinstated) was appointed in July this year to be the Shadow Secretary of State for Women and Equalities, the very post Champion had held.

    Champion, meanwhile, after death threats, had to be given increased security by the counter-terrorism police. So-called human rights activists, evidently caring nothing for the rights of little girls and teenagers in the North of England or presumably elsewhere, accused her of “industrial-scale racism.”

    Champion, incidentally, was not the first to draw attention to the crimes and the perpetrators. Another MP, Ann Cryer, had revealed details about grooming gangs in her Yorkshire constituency, Keighly, as far back as 2003. When she did so, she was “ridiculed, branded a racist, a liar and a fantasist [and] forced to install a panic button in her own home.”

    Champion’s reputation was saved at an early stage by other MPs. Barry Sheerman, Labour MP for Huddersfield, a town where twenty-eight men of mostly Pakistani origin had been tried and sentenced only months earlier for the same offenses, declared that it was a “shameful and disgusting campaign against a courageous and remarkable woman”. Most importantly, it was Sajid Javid, not yet Home Secretary, who spoke out in her defence. He tweeted, “Corbyn wrong to sack Sarah Champion. We need an honest open debate on child sexual exploitation, including racial motivation”. It was an intention he fulfilled virtually as soon as he headed the Home Office.

    Although the sexual abuse of children and young teenagers occurs around the world, the grooming gang crisis in the UK, certainly in its wide extent, appears to be unique in the West. As far back as 2013, Britain’s Attorney General, Lord Morris of Aberavon, stated in the House of Lords that 27 police forces were then investigating no fewer than 54 alleged gangs involved in child sexual grooming. He asked:

    “Is it collective amnesia that has blinded us to the underlying circumstances, whereby at least 27 police forces are investigating 54 alleged child grooming gangs?

    “Why has investigating and prosecuting in so many different parts of the country taken so much time?

    “Is it the fear of racialism, or is it the fact that many of these vulnerable girls come from care homes?”

    Four years later, in August 2017, the Daily Express presented a map showing eight towns and cities where gangs had been active. An inquiry in April had, in fact, already brought 29 men from Huddersfield to court, prior to a January 2018 trial in which all were convicted, thereby making the total nine cities.

    On September 15, 2018, what was described as “the most serious example of sex grooming yet to emerge in this country” was made public, following a speech in the House of Lords by Baroness Caroline Cox, a staunch defender of women’s rights within Britain’s Muslim communities. 

    The case involved a girl, Sarah, who was abducted by a Muslim gang when 15, held in captivity for twelve years, forced twice into marriage, repeatedly raped, beaten, and made to endure eight abortions. As in other cases, her family’s pleas for help were ignored by the police to whom they had turned. “I know Sarah and her family,” said Baroness Cox. “Every sex grooming case is terrible. But the length and cruelty of her abduction make it the worst I have known.”

    Sarah is a single victim, but it is likely that the gang involved will have dealt with more young women taken from the same streets.

    In 2017, the English Defence League, which some disparage as racist — to which the EDL responds, “The truth cannot be racist” — published online a list of “Muslim grooming gangs and other rape jihad convictions”. It provides a long, alphabetical list of “170 known completed trials with convictions for rape jihad offences at 68 main locations”. The list may be of intrinsic interest, in that it provides links to news reports about these trials, but it is in reality, highly misleading.[1] First of all, there is no evidence that any of the men involved (most often one or two) had the least notion of conducting “rape jihad”, a concept seemingly made up by the EDL.

    The behaviour of the grooming gangs differs greatly from the rapes and sexual harassments — often of people above the age of 16, by men in general in Britain and in other countries — in its clannish and organized nature. Pakistanis seem almost unique in combining efforts to engage in this harassment. That is why Javid’s inquiry must proceed even if it does upset parts of the Pakistani and wider communities — given that large numbers of those community members are themselves keen to see the matter cleared up and their reputations restored. These include other prominent British Muslims such as Yasmin Alibhai BrownMohammed Shafiq, and Nazir Afzal.

    Although Javid’s inquiry will focus on the question of why it is Pakistani men who organize and dominate these gangs, it is important that this not be interpreted as a racist endeavour, as some have claimed it to be — for example, when Sarah Champion was accused of “industrial scale racism”. No one is claiming that the racial characteristics of the rapists are remotely a factor in their crimes, and no one should criticize the inquiry on such grounds.

    The problem, then, seems to stem not from race but from culture. Many people, trapped by the inquiry’s emphasis on multiculturalism, appear to deem it “racist”to comment negatively on any culture except for Western (including Israeli) culture. For some, it is even racist to borrow from another culture’s dress, food, religion, architecture, art or music – which they term “cultural appropriation” or “cultural voyeurism” — instead of what it might well be: admiration and respect.

    The men in the grooming gangs are not proper representatives of many regular aspects of Pakistani culture and Muslim ethics. According to Ben Sixsmith:

    “Quite apart from being abusively adulterous, these criminals drank, did drugs, and made their victims have abortions. These were not, in other words, devout Muslim men.”

    Speaking on the BBC’s leading political debate show, Newsnight, Muhbeen Hussain, the founder of British Muslim Youth went so far as to deny that the men convicted were real Muslims:

    These grooming gangs were individuals that were using alcohol, using drugs and actually having ‘sessions’ exploiting these young girls. I don’t know what’s Islamic about drinking alcohol, drugs and exploiting young girls.

    Despite rising secularism in some cities, Pakistan remains a deeply religious society in which outward expressions of piety are ubiquitous, and blasphemy and heterodox allegiance are major social issues. So, the question comes to be: to what extent might some Pakistani values influence men like these?

    A partial answer is that, despite tight regulations concerning the behaviour of women in Pakistan and restrictions on male-female relationships there, the country, like some other Muslim countries, has a reputation for a high level of sexual harassment, even if this harassment does not take the form of grooming underage girls. Pakistani social activist Muhammad Usman Awan, for instance, has written at length about various forms of harassment in Pakistan. In one 2016 article, he writes:

    According to a research conducted by UNISON in 2008, more than 50% working women face sexual harassment in Pakistan. An increasing number of violence cases are filed every day and there is an even bigger number of incidents which go unreported. A total of 24119 of violence against women cases were reported during 2008-10 among which only 520 workplace harassment cases were filed…

    7,733 cases of violence against women were reported in the media in 2013. 1,516 were murdered while 472 were killed for reasons of ‘honor’. The country has notoriously failed to curb the flow of harassment cases.

    Clearly, there is a predominance of physical violence here, but there are other forms of harassment, including the sexual harassment of women when they use public transport:

    The condition of public transport in Pakistan is not even close to a satisfactory level. Daily commute for an average Pakistani woman is through public transport buses. But commuting through these public buses has become considerably difficult because of the unwanted attention and indecent remarks.

    Harassment is especially experienced, it seems, in the workplace, as Pakistani journalist Nosheen Abbas has described in some detail. The bill on the harassment of women in the workplace that she writes about became an Act of Parliament in 2010, but has yet to make much of an impact. In a lengthy and detailed article in Dawn, published in May 2018, Nazish Brohi writes that things have improved since the 2010 law was passed, but that severe problems remain, particularly for women making complaints of harassment.

    Last year, Shahid Javed Burki, a former Pakistani finance minister and vice-president of the World Bank, spoke out about the treatment of women in his country, arguing that the low status given to women has had serious social, demographic, educational, and financial effects. He compares it to neighbouring Bangladesh, which, he said, has improved women’s lot considerably, especially through their engagement in the workforce:

    “The main factor accounting for women’s higher social status in Bangladeshi society is the rate of female participation in the labour force which, at 43.1 per cent, is almost double of Pakistan’s 24.3 per cent.”

    This problem is, in some measure, reflected in the UK, where Muslim women (mainly of Pakistani origin) face limitations on their participation in the workplace, in higher education, and even knowledge of the English language — matters examined by Dame Louise Casey in her 2016 government review into opportunity and integration. Bringing Pakistani attitudes into the UK, often within segregated communities, only serves to perpetuate the belief that women are intrinsically the inferiors of men in all respects. Once women as such are demeaned to this extent, some men may come to regard sexual mistreatment of non-Muslim women as their God-given right. It is important to note that all of the women treated in this way are Muslims.

    One justification used for the UK grooming cases is that the girls involved are non-Muslims who may, as supposed inferiors, be attacked with impunity. Many victims of foreign rapists report that they have kept repeating that rape is permitted in the Quran.

    In addition, a female professor from al-Azhar, has claimed that Allah allows “Muslims to rape non-Muslim women to ‘humiliate’ them.”

    The second part of this article will examine the roles played by an absence of integration combined with conservative or radical religious attitudes, as well as the Arab practice of taharrush jama’i (mass harassment), both of which may well be keys to why this abuse is happening in the first place.

  • Only 4% Of Americans Consider Saudi Arabia An Ally

    Saudi Arabia is still at the center of an international storm of condemnation following the now confirmed murder of journalist Jamal Khashoggi.

    Even though President Trump has continued to defend the Washington’s most important Arab partner, a new YouGov poll has found that only 4 percent of the U.S. public consider Saudi Arabia an ally…

    Infographic: Only 4% Of Americans Consider Saudi Arabia An Ally | Statista

    You will find more infographics at Statista

    As Statista’s Niall McCarthy notes, views are similarly grim along party lines with 3 percent of Democrats and 5 percent of Republicans considering the Saudis an ally.

    When it comes to whether Saudi Arabia is friendly to the U.S., the share agreeing rises to 23 percent. Despite the fact that the U.S. government has sold billions of dollars of sophisticated weaponry to Saudi Arabia, 27 percent of the U.S. public consider Riyadh unfriendly while 15 percent would go as far as saying the Saudis are America’s enemy.

    Of course, the less politically-palatable title for this post is “96% Of Americans Know Saudis Did 9/11 And Got Away With It”

  • The United States Of Empire: "We're Getting Close To The End Now"

    Authored by Jonathan via LesTraveledRoad.com,

    We’re getting close to the end now. Can you feel it?  I do.  It’s in the news, on the streets, and in your face every day. You can’t tune it out anymore, even if you wanted to.

    Where once there was civil debate in the court of public opinion, we now have censorshipmonopolyscreaminginsultsdemonization, and, finally, the use of force to silence the opposition. There is no turning back now. The political extremes are going to war, and you will be dragged into it even if you consider yourself apolitical.

    There are great pivot points in history, and we’ve arrived at one. The United States, ruptured by a thousand grievance groups, torn by shadowy agencies drunk on a gross excess of powerrobbed blind by oligarchs and their treasonous henchmen and decimated by frivolous wars of choice, has finally come to a point where the end begins in earnest. The center isn’t holding… indeed, finding a center is no longer even conceivable. We are the schizophrenic nation, bound by no societal norms, constrained by no religion, with no shared sense of history, myth, language, art, philosophy, music, or culture, rushing toward an uncertain future fueled by nothing more than easy money, hubris, and sheer momentum.

    There comes a time when hard choices must be made…when it is no longer possible to remain aloof or amused, because the barbarians have arrived at the gate. Indeed, they are here now, and they often look a whole lot like deracinated, conflicted, yet bellicose fellow Americans, certain of only one thing, and that is that they possess “rights”, even though they could scarcely form an intelligible sentence explaining exactly what those rights secure or how they came into being. But that isn’t necessary, from their point of view, you see. All they need is a “voice” and membership in an approved victim class to enrich themselves at someone else’s expense. If you are thinking to yourself right now that this does not describe you, then guess what? The joke’s on you, and you are going to be expected to pay the bill…that “someone else” is you.

    In reality, though, who can blame the minions, when the elites have their hand in the till as well? In fact, they are even more hostile to reasoned discourse than Black Lives Matter, Occupy Wall Street, or Antifa. Witness the complete meltdown of the privileged classes when President Trump mildly suggested that perhaps our “intelligence community” isn’t to be trusted, which is after all a fairly sober assessment when one considers the track record of the CIAFBINSA, BATF, and the other assorted Stasi agencies. Burning cop cars or bum-rushing the odd Trump supporter seems kind of tame in comparison to the weeping and gnashing of teeth when that hoary old MIC “intelligence” vampire was dragged screaming into the light. Yet Trump did not drive a stake into its heart, nor at this point likely can anyone… and that is exactly the point. We are now Thelma and Louise writ large. We are on cruise control, happily speeding towards the cliff, and few seem to notice that our not so distant future involves bankruptcy, totalitarianism, and/or nuclear annihilation. Even though most of us couldn’t identify the band, we nonetheless surely live the lyrics of the Grass Roots: “Live for today, and don’t worry about tomorrow.”

    The “Defense” Department, “Homeland” Security, big pharma, big oil, big education, civil rights groups, blacks, Indians, Jews, the Deep State, government workers, labor unions, Neocons, Populists, fundamentalist Christians, atheists, pro life and pro death advocates, environmentalists, lawyers, homosexuals, women, Millenials, Baby Boomers, blue collar/white collar, illegal aliens… the list goes on and on, but the point is that the conflicting agendas of these disparate groups have been irreconcilable for some time. The difference today is that we are de facto at war with each other, and whether it is a war of words or of actual combat doesn’t matter at the moment. What matters is that we no longer communicate, and when that happens it is easy to demonize the other side. Violence is never far behind ignorance.

    I am writing this from the bar at the Intercontinental Hotel in Vienna, Austria. I have seen with my own eyes the inundation of Europe with an influx of hostile aliens bent on the destruction of Old Christendom, yet I have some hope for the eastern European countries because they have finally recognized the threat and are working to neutralize it. Foreign malcontents can never be successfully integrated into a civilized society because they don’t even intend to try; they intend to conquer their host instead. Yet even though our own discontents are domestic for the most part, we have a much harder row to hoe than Old Europe because our own “invaders” are well entrenched and have been for decades, all the way up to the highest levels of government. That there are signs Austria is finally waking up is a good thing, but it serves to illustrate the folly of expecting the hostile cultures within our own country to get along with each other without rupturing the republic. Indeed, that republic died long ago, and it has been replaced by a metastasizing mass of amorphous humanity called the American Empire, and it is at war with itself and consuming itself from within.

    Long ago, we once knew that as American citizens each of us had a great responsibility. We were expected to work hard, play fair, do unto others as we would have them do unto us, and serve our country when called upon to do so. Today, we don’t speak of duty, except in so much as a slogan to promote war, but we certainly do speak of benefits for ourselves and our “group” of entitled peeps. We will fail because of our greed and avarice. The United States of Empire has become quite simply too big, too diverse, and too “exceptional” to survive.

  • Facebook's New Troll-Crushing "War Room" Confirms Surveillance By Corporation Is The New America

    Facebook on Wednesday briefed journalists on its latest attempt to stop fake news during the election season, offering an exclusive tour of a windowless conference room at its California headquarters, packed with millennials monitoring Facebook user behavior trends around the clock, said The Verge

    This is Facebook’s first ever “war room,” designed to bring leaders from 20 teams, representing 20,000 global employees working on safety and security, in one room to lead a crusade against conservatives misinformation on the platform as political campaigning shifts into hyperdrive in the final weeks leading up to November’s US midterm elections. The team includes threat intelligence, data science engineering, research, legal, operations, policy, communications, and representatives from Facebook and Facebook-owned WhatsApp and Instagram. 

    “We know when it comes to an election, every moment counts,” said Samidh Chakrabarti, head of civic engagement at Facebook, who oversees operations in the war room.

    “So if there are late-breaking issues we see on the platform, we need to be able to detect and respond to them in real time, as quickly as possible.” 

    This public demonstration of Facebook’s internal efforts comes after a series of security breaches and user hacks, dating back to the 2016 presidential elections. Since the announcement of the Cambridge Analytics privacy scandal in March, Facebook shares have plunged -14.5% It seems the war room is nothing more than a public relations stunt, which the company is desperately trying to regain control of the narrative and avoid more negative headlines. 

    The war room is staffed with millennials from 4 am until midnight, and starting on Oct. 22, social media workers will be monitoring trends 24/7 leading up to the elections. Leaders from 20 teams will be present in the room. Workers will use machine learning and artificial intelligence programs to monitor the platform for trends, hate speech, sophisticated trolls, fake news, and of course, Russian, Chinese, and Iranian interference. 

    Nathan Gleicher, Facebook’s head of cybersecurity, told CNBC the company wants fair elections, and that “debate around the election be authentic. … The biggest concern is any type of effort to manipulate that.” 

    In the first round of presidential elections in Brazil, Facebook’s war room identified an effort to suppress voter turnout: 

    “Content that was telling people that due to protest, that the election would be delayed a day,” said Chakrabarti. “This was not true, completely false. So we were able to detect that using AI and machine learning. The war room was alerted to it. Our data scientist looked into what was behind it and then they passed it to our engineers and operations specialist to be able to remove this at scale from our platform before it could go viral.” 

    The war room has been focused on the US and Brazilian elections because it says misinformation in elections is a global problem that never ends. Gleicher warns that Facebook is observing an increased effort to manipulate the public debate ahead of US midterms. 

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    “Part of the reason we have this war room up and running, is so that as these threats develop, not only do we respond to them quickly, but we continue to speed up our response, and make our response more effective and efficient.” Gleicher adds that it is not just foreign interference but also domestic “bad actors” who are hiding their identity, using fake accounts to spread misinformation. 

    “This is always going to be an arms race, so the adversaries that we’re facing who seek to meddle in elections, they are sophisticated and well-funded,” said Chakrabarti.

    “That is the reason we’ve made huge investments both in people and technology to stay ahead and secure our platforms.”

    Big Brother is watching you: surveillance by corporations is the new America.

  • Johnstone: An Embarrassing End May Soon Be Near For Russia-Gaters

    Via CaitlinJohnstone.com,

    After more than two years of mania about Russia stealing the 2016 election for Trump and demonization of anyone who questioned it, an embarrassing end may soon be near for the Russia-gaters…

    In a new article titled “Mueller report PSA: Prepare for disappointment“, Politico cites information provided by defense attorneys and “more than 15 former government officials with investigation experience spanning Watergate to the 2016 election case” to warn everyone who’s been lighting candles at their Saint Mueller altars that their hopes of Trump being removed from office are about to be dashed to the floor.

    “While [Mueller is] under no deadline to complete his work, several sources tracking the investigation say the special counsel and his team appear eager to wrap up,” Politico reports.

    “The public, they say, shouldn’t expect a comprehensive and presidency-wrecking account of Kremlin meddling and alleged obstruction of justice by Trump – not to mention an explanation of the myriad subplots that have bedeviled lawmakers, journalists and amateur Mueller sleuths,” the report also says, adding that details of the investigation may never even see the light of day.

    https://platform.twitter.com/widgets.js

    So that’s it then.

    An obscene amount of noise and focus, a few indictments and process crime convictions which have nothing to do with Russian collusion, and this three-ring circus of propaganda and delusion is ready to call it a day.

    This is by far the clearest indication yet that the Mueller investigation will end with Trump still in office and zero proof of collusion with the Russian government, which has been obvious since the beginning to everyone who isn’t a complete fucking moron. For two years the idiotic, fact-free, xenophobic Russiagate conspiracy theory has been ripping through mainstream American consciousness with shrieking manic hysteria, sucking all oxygen out of the room for legitimate criticisms of the actual awful things that the US president is doing in real life. Those of us who have been courageous and clear-headed enough to stand against the groupthink have been shouted down, censored, slandered and smeared as assets of the Kremlin on a daily basis by unthinking consumers of mass media propaganda, despite our holding the philosophically unassailable position of demanding the normal amount of proof that would be required in a post-Iraq invasion world.

    As I predicted long ago, “Mueller isn’t going to find anything in 2017 that these vast, sprawling networks wouldn’t have found in 2016. He’s not going to find anything by ‘following the money’ that couldn’t be found infinitely more efficaciously via Orwellian espionage. The factions within the intelligence community that were working to sabotage the incoming administration last year would have leaked proof of collusion if they’d had it. They did not have it then, and they do not have it now. Mueller will continue finding evidence of corruption throughout his investigation, since corruption is to DC insiders as water is to fish, but he will not find evidence of collusion to win the 2016 election that will lead to Trump’s impeachment. It will not happen.” This has remained as true in 2018 as it did in 2017, and it will remain true forever.

    None of the investigations arising from the Russiagate conspiracy theory have turned up a single shred of evidence that Donald Trump colluded with the Russian government to rig the 2016 election, or to do anything else for that matter. All that the shrill, demented screeching about Russia has accomplished is manufacturing support for steadily escalating internet censorship, a massively bloated military budget, a hysterical McCarthyite atmosphere wherein anyone who expresses political dissent is painted as an agent of the Kremlin and any dissenting opinions labeled “Russian talking points”, a complete lack of accountability for the Democratic Party’s brazen election rigging, a total marginalization of real problems and progressive agendas, and an overall diminishment in the intelligence of political discourse. The Russiagaters were wrong, and they have done tremendous damage already.

    In a just world, everyone who helped promote this toxic narrative would apologize profusely and spend the rest of their lives being mocked and marginalized. In a world wherein pundits and politicians can sell the public a war which results in the slaughter of a million Iraqis and suffer no consequences of any kind, however, we all know that that isn’t going to happen. Russiagate will end not with a bang, but with a series of carefully crafted diversions. The goalposts will be moved, the news churn will shuffle on, the herd will be guided into supporting the next depraved oligarchic agenda, and almost nobody will have the intellectual honesty and courage to say “Hey! Weren’t these assholes promising us we’ll see Trump dragged off in chains a while back? Whatever happened to that? And why are we all talking about China now?”

    But whether they grasp it or not, mainstream liberals have been completely discredited. The mass media outlets which inflicted this obscene psyop upon their audiences deserve to be driven out of business. The establishment which would inflict such intrusive psychological brutalization upon its populace just to advance a few preexisting agendas has proven that it deserves to be opposed on every front and rejected at every turn.

    And those of us who have been standing firm and saying this all along deserve to be listened to. We were right. You were wrong. Time to sit down, shut up, stop babbling about Russian bots for ten seconds, and let those who see clearly get a word in edgewise.

    *  *  *

    Thanks for reading! The best way to get around the internet censors and make sure you see the stuff I publish is to subscribe to the mailing list for my website, which will get you an email notification for everything I publish. My articles are entirely reader-supported, so if you enjoyed this piece please consider sharing it around, liking me on Facebook, following my antics on Twitter, checking out my podcast, throwing some money into my hat on Patreon or Paypal,buying my new book Rogue Nation: Psychonautical Adventures With Caitlin Johnstone, or my previous book Woke: A Field Guide for Utopia Preppers.

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  • McConnell And Wife Berated In Packed Restaurant; Diners Side With Mitch

    A group of protesters confronted Senate Majority Leader Mitch McConnell and his wife on Friday night at a Louisville, KY restaurant – however the crowd wasn’t having it. 

    A woman who recorded the incident said that the protester “slammed his fists on McConnell’s table and threw food out of the restaurant after accusing McConnell of killing people with his views,” according to Fox News

    Video obtained by TMZ shows at least one diner berating McConnell on issues such as Social Security at a restaurant in Louisville. The video starts with him yelling at McConnell and arguing with Transportation Secretary Elaine Chao — to whom McConnell is married. The outlet reported that four men first confronted McConnell.

    “Oh yeh, why don’t you get out of here? Why don’t you leave our entire country,” the protester tells the couple.

    As Chao argues with the protester, McConnell appears unperturbed and sips on a drink. But other diners begin yelling at the protester, telling him to “leave him alone” and making shoo-ing gestures. –Fox News

    Following the incident, McConnell reportedly thanked some of the supporters, shaking their hands before leaving. 

    “The Leader and Sec. Chao enjoyed their meal in Louisville last night and they appreciate those who spoke up against incivility,” McConnell spokesman David Popp said in a statement via Fox News. “They hope other patrons weren’t too inconvenienced by left-wing tantrums. As the Leader often says, the Senate will not be intimidated by the antics of far-left protestors.”

    Mitch the magnet

    Friday’s incident marks the third time McConnell has been heckled by protesters. In June, several protesters at Georgetown University ambushed Chao and McConnell as they left a dinner, which resulted in Chao shouting at them: “Why don’t you leave my husband alone?”

    The man who recorded the video identified as “Roberto,” interned at the Soros-funded “open borders” group, United We Dream. 

    And in July, McConnell was confronted by protesters after leaving a Louisville, KY restaurant.  

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    Instead of retracting into his shell, McConnell tweeted: “I see what they did here. They waited until Elaine wasn’t around. -MM”

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  • Visualizing The 8 Major Forces Shaping The Future Of The Global Economy

    Authored by Jeff Desjardins via VisualCapitalist.com,

    “I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.”

    – Jimmy Dean

    The world is changing faster than ever before.

    With billions of people hyper-connected to each other in an unprecedented global network, it allows for an almost instantaneous and frictionless spread of new ideas and innovations.

    Combine this connectedness with rapidly changing demographics, shifting values and attitudes, growing political uncertainty, and exponential advances in technology, and it’s clear the next decade is setting up to be one of historic transformation.

    But where do all of these big picture trends intersect, and how can we make sense of a world engulfed in complexity and nuance? Furthermore, how do we set our sails to take advantage of the opportunities presented by this sea of change?

    THE INTERSECTION OF DATA AND POWERFUL VISUALS

    Interpreting massive amounts of data on how the world is changing can be taxing for even the most brilliant thinkers.

    For this reason, our entire team at Visual Capitalist is focused on using the power of visual storytelling to make the world’s information more accessible. Our team of information designers works daily to transform complex data into graphics that are both intuitive and insightful, allowing you to see big picture trends from a new perspective.

    After all, science says that 65% of people are visual learners – so why not put data in a language they can understand?

    While we regularly publish our visuals in an online format, our most recent endeavor has been to compile our best charts, infographics, and data visualizations into one place: our new book Visualizing Change: A Data-Driven Snapshot of Our World, a 256-page hardcover coffee-table book on the forces shaping business, wealth, technology, and the economy.

    The book focuses on eight major themes ranging from shifting human geography to the never-ending evolution of money. And below, we present some of the key visualizations in the book that serve as examples relating to each major theme.

    1. THE TECH INVASION

    For most of the history of business, the world’s leading companies have been industrially-focused.

    Pioneers like Henry Ford and Thomas Edison innovated in the physical realm using atoms – they came up with novel ways to re-organize these atoms to create things like the assembly line and the incandescent lightbulb. Then, companies invested massive amounts of capital to build physical factories, pay thousands of workers, and build these things.

    The majority of the great blue chip companies were built this way: IBM, U.S. Steel, General Electric, Walmart, and Ford are just some examples.

    But today’s business reality is very different. We live in a world of bytes – and for the first time technology and commerce have collided in a way that makes data far more valuable than physical, tangible objects.

    The best place to see this is in how the market values businesses.

    As you can see above, companies like Apple, Amazon, and Microsoft have supplanted traditional blue chip companies that build physical things.

    The tech invasion is leveraging connectivity, network effects, artificial intelligence, and unprecedented scale to create global platforms that are almost impossible to compete with. The tech invasion has already taken over retail and advertising – and now invading forces have their eyes set on healthcare, finance, manufacturing, and education.

    Will atoms ever be more valuable than bytes again?

    Interesting Facts:

    2. THE EVOLUTION OF MONEY

    Money is arguably one of humanity’s most important inventions. From beaver pelts to gold bars, the form and function of money has constantly fluctuated throughout history.

    In the modern world, the definition of money is blurrier than ever. Central banks have opted to create trillions of dollars of currency out of thin air since the financial crisis – and on the flipside, you can actually use blockchain technology to create your own competing cryptocurrency in just a few clicks.

    Regardless of what is money and what is not, people are borrowing record amounts of it.

    The world has now amassed $247 trillion in debt, including $63 trillion borrowed by central governments:

    In today’s unusual monetary circumstances, massive debt loads are just one anomaly.

    Here are other examples that illustrate the evolution of money: Venezuela has hyperinflated away almost all of its currency’s value, the “War on Cash” is raging on around the world, central banks are lending out money at negative interest rates (Sweden, Japan, Switzerland, etc.), and cryptocurrencies like Bitcoin are collectively worth over $200 billion.

    How we view money – and how that perception evolves over time – is an underlying factor that influences our future.

    Interesting Facts:

    3. THE WEALTH LANDSCAPE

    Wealth is not stagnant – and so for those looking to make the most out of global opportunities, it’s imperative to get a sense of how the wealth landscape is changing.

    The modern view is either extremely healthy or bubbly, depending on how you look at it: Amazon and Apple are worth over $1 trillion, Jeff Bezos has a $100+ billion fortune, and the current bull market is the longest in modern history at 10 years.

    Will this growth continue, and where will it come from?

    Here’s one look based on projections from the World Bank:

    Despite these estimates, there is a laundry list of items that the ultra-wealthy are concerned about – everything from the expected comeback of inflation to a world where geopolitical black swans seem to be growing more common.

    Here’s why those building and protecting wealth are rightly concerned about such events:

    But the wealth landscape is not all just about billionaires and massive companies – it is changing in other interesting ways as well. For example, the definition of wealth itself is taking on a new meaning, with millennials leading a charge towards sustainable investing rather than being entirely focused on monetary return.

    How will the wealth landscape look a decade from now?

    Interesting Facts:

    4. EASTERN PROMISES

    The economic rise of China has been a compelling story for decades.

    Up until recently, we’ve only been able to get a preview of what the Eastern superpower is capable of – and in the coming years, these promises will come to fruition at a scale that will still be baffling to many.

    Understandably, the scope of China’s population and economy can still be quite difficult to put into perspective.

    The following map may help, as it combines both elements together to show that China has countless cities each with a higher economic productivity than entire countries.

    In fact, China has over 100 cities with more than 1,000,000 inhabitants. These cities, many of which fly below the radar on the global stage, each have impressive economies – whether they are built upon factories, natural resource production, or the information economy.

    As one impressive example, the Yangtze River Delta – a single region which contains Shanghai, Suzhou, Hangzhou, Wuxi, Nantong, Ningbo, Nanjing, and Changzhou – has a GDP (PPP) of $2.6 trillion, which is more than Italy.

    Interesting Facts:

    5. ACCELERATING TECHNOLOGICAL PROGRESS

    As we’ve already seen, there are many facets of change that will impact our shared future.

    But here’s the kicker: when it comes to technological progress, the rate of change itself is actually getting faster and faster. Each year brings more technological advancements than the last, and once the exponential “hockey stick” kicks into overdrive, innovations could happen at a blindsiding pace.

    This could be described as a function of Moore’s Law, and the law of accelerating returns is also something that futurists like Ray Kurzweil have talked about for decades.

    Interestingly, there is another offshoot of accelerating change that applies more to the business and economic world. Not only is the speed of change getting faster, but for various reasons, markets are able to adopt new technologies faster:

    New products can achieve millions of users in just months, and the game Pokémon Go serves as an interesting case study of this potential. The game amassed 50 million users in just 19 days, which is a blink of an eye in comparison to automobiles (62 years), the telephone (50 years), or credit cards (28 years).

    As new technologies are created at a faster and faster pace – and as they are adopted at record speeds by markets – it’s fair to say that future could be coming at a breakneck speed.

    Interesting Facts:

    6. THE GREEN REVOLUTION

    It’s no secret that our civilization is in the middle of a seismic shift to more sustainable energy sources.

    But to fully appreciate the significance of this change, you need to look at the big picture of energy over time. Below is a chart of U.S. energy consumption from 1776 until today, showing that the energy we use to power development is not permanent or static throughout history.

    And with the speed at which technology now moves, expect our energy infrastructure and delivery systems to evolve at an even more blistering pace than we’ve experienced before.

    Interesting Facts:

    7. SHIFTING HUMAN GEOGRAPHY

    Global demographics are always shifting, but the population tidal wave in the coming decades will completely reshape the global economy.

    In Western countries and China, populations will stabilize due to fertility rates and demographic makeups. Meanwhile, on the African continent and across the rest of Asia, booming populations combined with rapid urbanization will translate into the growth of megacities, holding upwards of 50 million people.

    By the end of the 21st century, this animation shows that Africa alone could contain at least 13 megacities that are bigger than New York:

    By this time, it’s projected that North America, Europe, South America, and China will combine to hold zero of the world’s 20 most populous cities. What other game-changing shifts to human geography will occur during this stretch?

    Interesting Facts:

    8. THE TRADE PARADOX

    By definition, a consensual and rational trade between two parties is one that makes both parties better off.

    Based on this microeconomic principle, and also on the consensus by economists that free trade is ultimately beneficial, countries around the world have consistently been working to remove trade barriers since World War II with great success.

    But nothing is ever straightforward, and these long-held truths are now being challenged in both societal and political contexts. We now seem to be trapped in a trade paradox in which politicians give lip service to free trade, but often take action in the opposite direction.

    To get a sense of how important trade can be between two nations, we previously documented the ongoing relationship between the U.S. and Canada, in which each country is the best customer of the other:

    With the recent USMCA agreement, the two countries seem to have sorted their differences for now – but the trade paradox will continue to be an ongoing theme in economics and investing at a global level for many years to come, especially as the trade war against China rages on.

    Points to Consider:

    HOW YOU CAN VISUALIZE CHANGE

    The forces behind change are not always evident to the naked eye, but we believe that by fusing data, art, and storytelling together that we can create powerful context on the trends shaping our future.

    If you enjoyed our summary above, you can explore these ideas further with our book “Visualizing Change”, which offers 256 pages of infographics, data visualizations, and charts on the future direction of the global economy and technology.

    Our book makes a great holiday gift. Get it on Amazon.com or Amazon.ca, or even customize a bulk order with your logo

  • "Largest Ever Ponzi Scheme In Maryland" Rocks Investors, $345 Million Vanishes

    The Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) announced last month the indictment and arrests of three people, including a Baltimore man, involved in the largest-ever Ponzi scheme in Baltimore-Washington metropolitan area. 

    More than 230 people have been taken for a financial rollercoaster as three men ((Kevin B. Merrill (“Merrill”), Jay B. Ledford (“Ledford”), and Cameron Jezierski (“Jezierski”) raised $345 million, more than $90 million was invested by over 200 individual investors (including small business owners, restauranteurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, current and former professional athletes, and financial advisors); approximately $52 million by family officers; and nearly $203 million from feeder funds, said the SEC.

    According to an indictment from Federal prosecutors in Baltimore, Merrill and Ledford touted their experience in collecting on and reselling consumer debt to investors, with the promise of significant profits. The pair operated a web of companies they owned and/or controlled, including Defendants Global Credit Recovery, LLC; Delmarva Capital, LLC; Rhino Capital Holdings, LLC; Rhino Capital Group, LLC; DeVille Assets Managment LTD; and Riverwalk Financial Corporation, which they then sold securities to investors. 

    Merrill and Ledford used the corporate entities and 55 bank accounts to shift investor money, deceive investors, and continue their Ponzi scheme that only survived with the influx of greater and greater investor cash inflow. 

    Here is how the Merrill – Ledford scheme worked: 

    Documents show the men used a web lies, forgeries, and fake documents to conduct the fraud since 2013, using investor money for exotic cars, high-end real estate, private jets, private clubs, casinos, and funding their lavish lifestyles. 

    “We allege defendants engaged in a brazen fraud, deceiving investors to perpetuate their wrongdoing and line their pockets with ill-gotten gains,” said Kelly Gibson, the associate regional director of the SEC’s Philadelphia office. 

    The SEC stated approximately $200 million of the money was used to pay prior investors and deceive current investors that their money was generating high returns. 

    Merrill owned five mansions, 25 exotic cars — including Bugattis, Ferraris, and Rolls Royces — private jets, powerboats, and more, according to filings. 

    Merrill’s mansions- 

    Merrill’s cars- 

    • 2014 Ford Explorer 
    • 2014 Lamborghini Aventador Roadster 
    • 2014 Mercedes-AMG S63
    • 2015 BMW S1000R Motorcycle 
    • 2015 Harley-Davidson VRSCDX Night Rod Special Edition Motorcycle
    • 2016 Ferrari 488 GTB
    • 2017 Audi R8 5.2 Plus
    • 2017 Lamborghini Huracan Spyder
    • 2017 Land Rover Range Rover
    • 2017 Land Rover Range Rover Sport
    • 2017 Porsche 911 Turbo S
    • 2017 Rolls-Royce Dawn
    • 2017 Rolls-Royce Wraith
    • 2018 McLaren 720s
    • 2008 Bugatti Veyron
    • 2013 Ferrari California 
    • 2014 BMW M6 Gran Coupe
    • 2014 Ferrari F12 Berlinetta
    • 2014 Pagani Huayra
    • 2015 Mercedes-AMG S63
    • 2017 Cadillac Escalade ESV
    • 2017 Ferrari 488 Spider
    • 2018 Lamborghini Huracan

    Ledford’s cars- 

    • 2016 Ferrari 488 GTB
    • 2016 Tesla Model S
    • 2015 Bentley Flying Spur

    If Merrill, Ledford, and Jezierski are convicted, their assets, will be seized by the U.S. Government. In the latter stages of a credit cycle, fraud schemes are usually not sustainable and go bust — an ominous sign that an economic downturn is nearing. 

     

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Today’s News 21st October 2018

  • Converting Khashoggi Into Cash

    Authored by James George Jatras via The Strategic Culture Foundation,

    The hazard of writing about the Saudis’ absurd gyrations as they seek to avoid blame for the murder of the late, not notably great journalist and Muslim Brotherhood activist Jamal Khashoggi is that by the time a sentence is finished, the landscape may have changed again.

    As though right on cue, the narrative has just taken another sharp turn.

    After two weeks of denying any connection to Khashoggi’s disappearance, Riyadh has ‘fessed up (sorta) and admitted that he was killed by Saudi operatives but it wasn’t really on purpose:

    Y’see, it was kinda’f an ‘accident.’

    Oops…

    Y’see the guys were arguing, and … uh … a fistfight broke out.

    Yeah, that’s it … a ‘fistfight.’

    And before you know it poor Jamal had gone all to pieces.

    Y’see?

    Must’ve been a helluva fistfight.

    The figurative digital ink wasn’t even dry on that whopper before American politicos in both parties were calling it out:

    • “To say that I am skeptical of the new Saudi narrative about Mr. Khashoggi is an understatement,” tweeted Republican Sen. Lindsey Graham of South Carolina. “First we were told Mr. Khashoggi supposedly left the consulate and there was blanket denial of any Saudi involvement. Now, a fight breaks out and he’s killed in the consulate, all without knowledge of Crown Prince. It’s hard to find this latest ‘explanation‘ as credible.”
    • California Rep. Adam Schiff, the ranking Democrat on the House Intelligence Committee, said in a statement that the new Saudi explanation is “not credible.” “If Khashoggi was fighting inside the Saudi consulate in Istanbul, he was fighting for his life with people sent to capture or kill him,” Schiff said. “The kingdom and all involved in this brutal murder must be held accountable, and if the Trump administration will not take the lead, Congress must.”

    Turkish President Recep Tayyip Erdogan must think he’s already died and gone to his eternal recreation in the amorous embraces of the dark-eyed houris. The acid test for the viability of Riyadh’s newest transparent lie is whether the Turks actually have, as they claim, live recordings of Khashoggi’s interrogation, torture, murder, and dismemberment (not necessarily in that order) – and if they do, when Erdogan decides it’s the right time to release them.

    Erdogan has got the Saudis over a barrel and he’ll squeeze everything he can out of them.

    From the beginning, the Khashoggi story wasn’t really about the fate of one man. The Saudis have been getting away with bloody murder, literally, for years. They’re daily slaughtering the civilian population of Yemen with American and British help, with barely a ho-hum from the sensitive consciences always ready to invoke the so-called “responsibility to protect” Muslims in Bosnia, Kosovo, Libya, Syria, Xinjiang, Rakhine, and so forth.

    Where’s the responsibility not to help a crazed bunch of Wahhabist head-choppers kill people?

    But now, just one guy meets a grisly end and suddenly it’s the most important homicide since the Lindbergh baby.

    What gives?

    Is it because Khashoggi was part of the MSM aristocracy, on account of his relationship with the Washington Post?

    Was it because of his other, darker, connections? As related by Moon of Alabama:

    “Khashoggi was a rather shady guy. A ‘journalist’ who was also an operator for Saudi and U.S. intelligence services. He was an early recruit of the Muslim Brotherhood.”

    This relationship, writes MoA, touches on the interests of pretty much everyone in the region:

    “The Ottoman empire ruled over much of the Arab world. The neo-Ottoman wannabe-Sultan Recep Tayyip Erdogan would like to regain that historic position for Turkey. His main competition in this are the al-Sauds. They have much more money and are strategically aligned with Israel and the United States, while Turkey under Erdogan is more or less isolated. The religious-political element of the competition is represented on one side by the Muslim Brotherhood, ‘democratic’ Islamists to which Erdogan belongs, and the Wahhabi absolutists on the other side.”

    With the noose tightening around Saudi Crown Prince Mohammad bin Salman (MbS), the risible fistfight cock-and-bull story is likely to be the best they can come up with. US President Donald Trump’s having offered his “rogue killers” opening suggests he’s willing to play along. Nobody will really be fooled, but MbS will hope he can persuade important people to pretend they are fooled.

    That will mean spreading around a lot of cash. The new alchemy of converting Khashoggi dead into financial gain for the living is just one part of an obvious scheme to pull off what Libya’s Muammar Kaddafi managed after the 1988 Lockerbie bombing: offer up some underlings as the fall guys and let the top man evade responsibility. (KARMA ALERT: That didn’t do Kaddafi any good in the long run.)

    In the Saudi case the Lockerbie dodge will be harder, as there are already pictures of men at the Istanbul Consulate General identified as close associates of MbS. But they’ll give it the old madrasa try anyway since it’s all they’ve got.Firings and arrests have started and one suspect has already died in a suspicious automobile “accident.” Heads will roll!

    Saving MbS’s skin and his succession to the throne of his doddering father may depend on how many of the usual recipients of Saudi – let’s be honest – bribery and influence peddling will find sufficient pecuniary reason to go along. Saudi Arabia’s unofficial motto with respect to the US establishment might as well be: “The green poultice heals all wounds.”

    Anyway, that’s been their experience up to now, but it also in part reflects the same arrogance that made MbS think he could continue to get away with anything. (It’s not shooting someone in the middle of Fifth Avenue, but it’s close.) Whether spreading cash around will continue to have the same salubrious effect it always has had in the past remains to be seen.

    To be sure, Trump may succeed in shaking the Saudi date palm for additional billions for arms sales. That won’t necessarily turn around an image problem that may not have a remedy. But still, count on more cash going to high-price lobbying and image-control shops eager to make obscene money working for their obscene client. Some big American names are dropping are dropping Riyadh in a sudden fit of fastidiousness, but you can bet others will be eager to step into their Guccis, both in the US and in the United Kingdom. (It should never be forgotten how closely linked the US and UK establishments are in the Middle East, and to the Saudis in particular.)

    It still might not work though. No matter how much expensive PR lipstick the spinmeisters put on this pig, that won’t make it kissable. It’s still a pig.

    Others benefitting from hanging Khashoggi’s death around MbS’s neck are:

    • Qatar (after last year’s invasion scare, there’s no doubt a bit of Schadenfreude and (figurative) champagne corks popping in Doha over MbS’s discomfiture. As one source close to the ruling al-Thani family relates, “The Qataris are stunned speechless at Saudi incompetence!” You just can’t get good help these days).

    Among the losers one must count Israel and especially Prime Minister Bibi Netanyahu. MbS, with his contrived image as the reformer, was the Sunni “beard” he needed to get the US to assemble an “Arab NATO” (as though one NATO weren’t bad enough!) and eliminate Iran for him. It remains to be seen how far that agenda has been set back.

    Whether or not MbS survives or is removed – perhaps with extreme prejudice – there’s no doubt Saudi Arabia is the big loser. Question are being asked that should have been asked years ago. As Srdja Trifkovic comments in Chronicles magazine:

    “The crown prince’s recklessness in ordering the murder of Khashoggi has demonstrated that he is just a standard despot, a Mafia don with oil presiding over an extended cleptocracy of inbred parasites. The KSA will not be reformed because it is structurally not capable of reform. The regime in Riyadh which stops being a playground of great wealth, protected by a large investment in theocratic excess, would not be ‘Saudi’ any longer. Saudia delenda est.”

    The first Saudi state, the Emirate of Diriyah, went belly up in 1818, with the death of head of the house of al-Saud, Abdullah bin Saud – actually, literally with his head hung on a gate in Constantinople by Erdogan’s Ottoman predecessor, Sultan Mahmud II.

    The second Saudi state, Emirate of Nejd, likewise folded in 1891.

    It’s long past time this third and current abomination joined its antecedents on the ash heap of history. 

  • Accused "FX Cartel" Members Joined Forces After Trying To "End" Each Other

    As federal prosecutors in Manhattan press ahead with the trial of three London-based currency traders – members of the infamous “FX Cartel” who allegedly colluded to move exchange rates in their favor during the brief moments before the daily fix – more amusing details from the cartel’s group chat where most of the alleged collusion took place have started to emerge.

    In one anecdote that helps explain the genesis of the cartel conspiracy, two of the three traders, former JPMorgan Chase & Co. trader Richard Usher and ex-Citigroup Inc. trader Rohan Ramchandani, share how they used to “end” each other on opposing trades before they finally “got together.”

    As he has done for the duration of the trial, government star witness Matt Gardiner, a former colleague who agreed to plead guilty to avoid prosecution, explained the text messages to the jury.

    Cartel

    Here’s Bloomberg:

    Prosecutors presented the transcripts as evidence of the cooperation. In the following excerpt, Usher wrote to a colleague about Ramchandani:

    he used to kill me at ecb fix, that’s why I called him up and said let’s get together cos i rather have u onside

    Ramchandani also wrote to an ex-colleague:

    u know how rich and me started talking

    we used to end each other on fixes

    eventually we met

    chat now

    and never are on the other side!

    hahaha

    Gardiner, a former currency trader at Barclays and UBS Group AG, was asked by a defense lawyer whether the widespread market practice of seeking and sharing information could be considered coordination. Michael Kendall, a lawyer for Usher, suggested in cross-examination that all the traders acted independently to maximize profits for their banks.

    In a prime example of the “market color” that the traders’ lawyers said they would swap in the chat group, the conspirators would often swap congratulations when one of their trades was paying off while “discussing” situations where they were on opposing sides in “sometimes angry exchanges.” The government has called a handful of other witnesses, including Jeremy Tilsner, a senior director at consultant Alvarez & Marsal, to testify about his analysis of the traders’ transactions, while prosecutors also called witnesses from CLS Group Holdings AG, Barclays, JPMorgan and Citigroup to discuss the currency-settlement processes.

    All told, global banks have paid a combined $14 billion in fines related to charges of currency rigging.

    FX

    If the men are convicted, they could face up to 10 years in prison. And after a jury earlier this week handed down convictions for two Deutsche Bank traders for rigging Libor, despite what appeared to be a fumbling performance by the prosecution, we imagine the former “Cartel” members are starting to feel anxious. 

  • Alhambra: China's Economy Is Not Crashing, It's Worse Than That

    Authored by Jeffrey Snider via Alhambra Investment Partners,

    China’s economy is not crashing. Hyperbole works both ways. Last year and this, the smallest increment above a prior number was broadcast out as the greatest thing ever (US wage growth in particular), irrefutable proof of globally synchronized growth. Now that that’s over with, largely, there will be a tendency toward the other extreme.

    The latest Chinese economic statistics are for several of them the lowest in some time. Starting with real GDP, at just 6.5% in Q3 2018 it’s the slowest pace since the first quarter of 2009. That’s not good especially for a statistic of such dubious practices often specifically crafted to be the best it can be.

    What that suggests is not immediate catastrophe, offering instead more complete confirmation that this major economy is slowing. Again. This is the real story in China and therefore for everywhere else.

    In other words, the real danger presented by these statistics is not imminent crash but rather the total disappearance of any upside potential. Even during 2017, the narrative about globally synchronized growth continued as a future property. The global economy in that year was clearly better than it was during the worldwide downturn 2015-16, easy comparison, and that was expected only as the first step toward meaningful acceleration and then recovery.

    Where Economists and central bankers jumped the gun was in assuming that 2017’s improvement was the only evidence they needed for those complete expectations. As it has turned out, as it always turns out, changing from minus to plus signs is a necessary condition for better days but not by itself a sufficient one.

    Acceleration requires momentum among other factors, and momentum is derived from conviction. The best days of 2017 never really had that, the absence perhaps clearest in China (particularly the hollow rebound of CNY which “somehow” lacked “capital inflows”).

    Everyone kept waiting for the Chinese to zoom on ahead and bring the whole up with them. Meanwhile, in China they kept waiting for the rest of the world to take the lead so as to pull them up out of their funk. That’s been the thing about “global growth” since 2011, everyone expects that someone else will solve their economic problems for them. Momentum will arrive, you see, it’ll come from somewhere else.

    Without a clear path to that next step toward recovery, doubts multiply rather than abate. What was for a time mild opportunity, reflation, sinks back toward the malaise of liquidity risks that over time can only return to self-reinforcing.

    This is what’s significant about China’s numbers today. They practically declare reflation dead and gone. There is no upside left, what you saw in 2017 was the best of it – and it wasn’t very good. It was, in honest analysis, not really that much better than 2016 at all; certainly less than the prior peak.

    The rest of the statistics bear this out. Nominal GDP, perhaps a more appropriate measure of China’s economic conditions, decelerated yet again in Q3. Year-over-year, it rose just 9.6%, down from 9.8% in Q2 and a peak of 11.7% set way back in Q1 2017. The more time passes without clear acceleration, the more it has to sink in (everywhere but Washington DC) that this really is a rising dollar “L.”

    The world economy has never recovered from the 2011 eurodollar crisis (squeeze). The system broke in August 2007, and created all sorts of devastation immediately thereafter. But for a time in 2010 and the first half of 2011 it looked like recovery was at least possible if unusually weak.

    Economists, incapable of appreciating the global monetary system for their modern practice of neglect, mistook 2011 for a lack of sufficient time; they crafted monetary policies (with no money in them) so as to buy the financial system enough of it thinking that would be the magic elixir.

    Instead, time has proven beyond all doubt that 2011 was the last stand for recovery. It just isn’t possible so long as the global reserve currency, the eurodollar not dollar, remains dysfunctional. There can never be enough momentum to escape, opportunity surrendered by this neglect.

    The more Chinese statistics in particular show this to be true the more it will spread and eventually become self-reinforcing (again). In certain places, it may have already.

    The rest of the data follows along this way; not crashing but what may be worse as the end of any upside.

    Chinese Industrial Production rose just 5.8% year-over-year in September, the first month below 6% in two and a half years going all the way back to the trough of the last downturn in February 2016. As noted at the outset, there can be an inclination to make more out of that comparison when, for now, it simply confirms there just isn’t any recovery.

    Along those lines, it stands in sharp contrast to sentiment which even in China had gotten way ahead of economic reality. It’s another element of 2017 and globally synchronized growth that is being slowly, steadily undone in 2018. Sentiment has proved a worthless indicator, and well beyond the other side of the Pacific Ocean.

    Retail sales was practically the lone bright spot, which merely means there wasn’t as much slowing as there had been. Rising 9.2% in September, it was the fastest pace in five months, but still materially less than the 10%+ rate that prevailed 2015 forward.

    Fixed asset investment managed to tick a little higher last month as private capex remained steady while government investment rebounded slightly. Overall, FAI was up 5.4% on an accumulated basis (YTD) compared to August’s record low 5.3%. Private FAI also on an accumulated basis stayed at 8.7%. State-owned FAI gained 1.2% last month compared to 1.1% the month before.

    China’s economy is not crashing. However, it is slowing and from an already weakened level. The Chinese system did not actually recover from the last downturn despite now three years distance. What these numbers show is that, like the eurodollar system, there is now very little chance that it ever will. It may not seem like much compared to a full-blown breakdown, but pretty conclusive evidence for a worldwide, multi-year (decade?) “L” should be terrifying.

    A world without opportunity is a far more dangerous one than a world only temporarily stripped of it. The V can be scary but only on the way down. The L is, well, I think we’re going to find out.

  • "Marijuana Impairment" – Stoned Drivers Cause More Traffic Accidents In Pot Legal States 

    The Insurance Institute for Highway Safety (IIHS) found, in a new study published Thursday, that traffic accidents are up 6% in four states where recreational use of marijuana has been legalized. 

    Earlier in the week, the National Transportation Safety Board (NTSB) issued a press release about a 2017 traffic accident linked to the “use of marijuana in combination with the misuse of a prescription medication” that killed 12 in Texas. 

    “The last thing in the world that we want is to introduce another legal substance where we may be adding to that toll and to the carnage on our highways,” David Harkey, president of the IIHS’s Highway Loss Data Institute told Bloomberg. “With marijuana impairment, we’re just now starting to understand what we don’t know.”  

    In a separate interview with NBC, Harkey said the new reports do not confirm there is a direct risk by the use of marijuana among motorist, but certainly raises caution flags, especially since law enforcement has limited ways to test drivers if they are under the influence of THC, the active ingredient in marijuana. 

    “It’s certainly early in the game,” Harkey told NBC News. But he warned: “We’re seeing a trend in the wrong direction.” 

    The IIHS study notes that after retail sales of recreational cannabis began, the frequency of collision insurance claims in Colorado, Nevada, Oregon, and Washington rose about 6%, however, this trend was not observed in surrounding states where marijuana is illegal. 

    Another IIHS study shows a 5% increase in the rate of auto crashes per one million vehicle registrations reported to police in Colorado, Oregon, and Washington versus neighboring states that have not legalized the drug, reported Bloomberg. 

    “The bottom line of all of this is that we’re seeing a consistently higher crash risk in those states that have legalized marijuana for recreational purposes,” Harkey told Bloomberg. 

    There are now 30 states that have legalized medical marijuana, with Oklahoma recently joining the ranks. Recreational marijuana is legal in California, Alaska, Maine, Massachusetts, and Vermont.

    The most recent Gallup poll shows near record-high support for legalizing marijuana in the US, as more states are set to follow, including Michigan, where recreational pot use is on the November ballot. 

    Gallup poll results show Americans are craving pot, with an explosion in acceptance since the financial crash of 2008: 

    • Americans’ support for marijuana legalization was at a record high of 64% in Gallup’s most recent update in October 2017. This represents a continuing increase in support for legalization over the past several decades, with half or more generally favoring it since 2011. 

    Since the legalization wave began, safety experts have been trying to quantify the potential impact on highway safety, as two IIHS studies show traffic accidents in legal pot states have increased. With so many more states set to allow recreational marijuana use, regulators, law enforcement, and medical authorities need to address the future challenges of stoned drivers on America’s highways. 

  • From "Soft" Tyranny To Totalitarian Rule: America's Unrelenting Data Collection

    Authored Jeremiah Johnson (nom de plume of a retired Green Beret of the United States Army Special Forces ) via SHTFplan.com,

    Totalitarian – Of or being a form of government in which the political authority exercises absolute control over all aspects of life and opposition is outlawed; a practitioner or supporter of such a government.

    – American Heritage Dictionary, 3rd Ed.

    We have almost reached the point where the country can be referred to as “totalitarian” in accordance with the definition provided. Incrementally, it creeps forward: the “soft” tyranny. Curing, refining itself, and hardening, there will be a point of no return that is reached… a point where it has metastasized until it is both all encompassing and ubiquitous.

    The problem is twofold: the incremental spread as mentioned, and the complacency and inability of people to recognize it for what it is. Someone posted a comment recently with a paragraph from Solzhenitsyn’s “Gulag Archipelago” where the author regretfully lamented the complacency displayed by the Russians as the country turned Communist overnight. His regret was that the citizenry could have stopped it with hatchets and pitchforks at that point if they had acted and been of one accord. I have recommended it as a “must read,” and strongly advise you to consider it as a “window” to what is happening in the U.S.

    Two articles surfaced this week that are astonishing: they show the surveillance and data-collection “culture” that is being inflicted upon us, dulling our already stultified public into vapidity and inaction by desensitization. This latter term: the outrage of yesterday becomes the “accepted” and commonplace of today, and even further/worse tomorrow. Paradigm shift.

    First, one written by Betsy Mikel entitled “Walmart just made an announcement that may make you never want to shop there again,” published on 10/9/18 by Inc. Here is an excerpt:

    Walmart is interested in what’s going on in your body while you shop.

    The company wants to collect this data in a particularly creepy way: through the handles of their shopping carts. Walmart recently submitted a patent to the U.S. Patent and Trademark Office called “System and Method for a Biometric Feedback Cart Handle,” CBInsights reports.

    These innovative shopping cart handles would collect your biometric data, meaning your stress level, your body temperature, and heart rate — all while you’re strolling through the aisles of your local store, filling your cart with Walmart’s everyday low-priced items.

    The article proceeds to explain Walmart’s “spin” on it is to provide a way to “check on a customer with a physical problem.”

    Since when has Walmart ever been concerned about anyone’s physical well-being? Isn’t this the company that settled out of court for millions to pay for stolen labor time and breaks from employees? Isn’t this the same Walmart that twenty years ago put small stores in to break local competitors (Mom and Pop stores) in small towns…and when they went belly up, closed their small Walmarts and “plopped” a Super-Walmart down in the center of where five small ones used to be? Then all the little serfs could come from miles around to service the monolith with their play money, as the local economies of the small towns died, right? Worse. Being a “too big to fail” type of business, they’re deep in bed with the governments, federal and state. Simple data collection “for your own safety and well-being,” right?

    No. They’re going to tie this data in with all of the other micro-data and metadata they are already gathering…filming you with their little cameras…filming Johnny Jones Junior and Daddy Jones as they pick up a box of shells for the shotgun…amount and type recorded and filed next to the photos and film with their names and biometrics.

    They want every piece of information on you and your family, and they’re not going to stop until they have it…all of it.

    Article number two is even worse, as you may deduce from the title. Published by Maggie Fox of NBC News, it is entitled “DNA databases can send the police or hackers to your door, study finds.” Take a look at this excerpt:

    More than 60 percent of Americans who have some European ancestry can be identified using DNA databases – even if they have not submitted their own DNA, researchers reported Thursday.

    Enough people have done some kind of DNA test to make it possible to match much of the population, the researchers said. So even if you don’t submit your own DNA, if a cousin does, it could lead people to you.

    They said their findings, published in the journal Science, raise concerns about privacy. Not only could police use this information, but so could other people seeking personal information about someone.

    The article goes on to talk about Joseph DeAngelo, a former cop in California suspected of murder, and how they nabbed him by using DNA submitted by a “distant cousin” that narrowed down the list for cops on his trail. Read the article for more specifics and demographics on these DNA “commercial” test kits.

    The point here is the stupid, faddish public is dumb enough to submit the material…the very DNA being used by the “trusted” authorities…either out in the open or by back-door methods…to round up all of the DNA for the surveillance state.

    I invite anyone to comment who has experience with a “transfer station,” or other garbage collection facility, and anyone in the healthcare/hospital industry with some inside info as to their nefarious methods. You can easily see from these examples how they are hard on the trail…relentless bloodhounds that have the scent of their quarry…and they will not stop until everyone is categorized and monitored. Then the real fun begins.

    To digress: this is why we must all be of one accord, and disseminate this information and take steps while there is still time. As the weeks, months, and years roll by; the hellish apparatus of what was once termed “government” becomes a machine for rule by enslavement. That machine is perfecting itself. When control is finally obtained…total, unchallenged control? That’s when the liquidations…the killings…will begin, for the ownership of the resources and for the control and enslavement of all humanity.

  • China Unveils World's Largest Transport Drone 

    China has successfully tested the world’s largest commercial drone developed and manufactured by the China Academy of Aerospace Electronics Technology (CAAET) made its first successful test flight at Baotou Airport in North China’s Inner Mongolia autonomous region on Tuesday, reported Ecns.cn, the official English-language website of China News Service. 

    SF Express Co., Ltd, a Chinese transport company based in Shenzen, conducted the first public test flight on Oct. 16 with the new delivery drone, named Feihong-98, in cooperation with CAAET. 

    Feihong-98 is a Chinese copy of the Soviet Antonov An-2, which is China’s first domestically-built transport aircraft, the Shiefei Y-5B has a 60-year history since its first flight in 1957.  

    According to Liu Meixuan, president of CAAET, the FH-98 is now the most affordable and advanced transport drone in the world.

    The plane has a maximum weight of 5.25 tons, with a payload of 1.5 tons, and a volume space of 15 cubic meters. It can reach a max flight altitude of 15,000 ft. while cruising at 112mph.

    SF Express and CAAET signed an exclusive agreement in 2017, with the intentions of operating a large-scale drone delivery fleet in the next several years. 

    Pandaily said it took about eight months for researchers to apply the technologies and complete the research and development of core technologies that converted the plane into a fully autonomous drone.

    Feihong-98 completed its first flight test in August. It received an operational approval from the Civil Aviation Administration of China and should finish up testing by June 2019. 

    With a takeoff and landing distance of roughly 500 ft., the FH-98 could be the most affordable transport drone for world governments, in need for a low-cost solution to handle emergency and disaster relief missions, and or just a cheap option to transport goods. 

    In the last twenty years, China has emerged as one of Washington’s top competitors in the global drone market. China is offering affordable drone technology, that has been rapidly gaining global market share. 

    China manufactures several types of drones. The Caihong 5 (CH-5) Rainbow, its newest multi-role capable drone, has seen increased activity in the Middle East — especially the Yemeni Civil War. The CH-5 competes with the American Reaper and Israeli Heron TP. 

    China is a major exporter of multi-role strike capable drones. Between 2008 and 2017, China exported a total of 88 drones to eleven different countries. 

    Regarding total drone sales, however, China lags the US (as shown above). Since the financial crisis to 2017, the US has sold 351 drones to numerous countries, followed by Israel’s 168 drone export. 

    China’s drone exports have greatly benefited from American export controls. The US has historically slapped some countries with weapon bans, which has allowed China to fill the void. If countries cannot buy arms from US defense companies, they usually resort to China. With a wide variety of drones, and now the addition of the world’s largest transport drone, it seems China is threatening Washington’s global drone market share — a move that does not sit well with America’s military-industrial complex. 

  • Judge Orders Mueller To Prove Russian Company Meddled In Election

    A Washington federal judge on Thursday ordered special counsel Robert Mueller’s team to clarify election meddling claims lodged against a Russian company operated by Yevgeny Prigozhin, an ally of Russian President Vladimir Putin, according to Bloomberg

    Concord Management and Consulting, LLC. – one of three businesses indicted by Mueller in February along with 13 individuals for election meddling, surprised the special counsel in April when they actually showed up in court to fight the charges. Mueller’s team tried to delay Concord from entering the case, arguing that thee Russian company not been properly served, however Judge Dabney Friedrich denied the request – effectively telling prosecutors ‘well, they’re here.’ 

    Concord was accused in the indictment of supporting the Internet Research Agency (IRA), a Russian ‘troll farm’ accused of trying to influence the 2016 US election. 

    On Thursday, Judge Freidrich asked Mueller’s prosecutors if she should assume they aren’t accusing Concord of violating US laws applicable to election expenditures and failure to register as a foreign agent. 

    Concord has asked Dabney to throw out the charges – claiming that Mueller’s office fabricated a crime, and that there is no law against interfering in elections. 

    According to the judge’s request for clarification, the Justice Department has argued that it doesn’t have to show that Concord had a legal duty to report its expenditures to the Federal Election Commission. Rather, the allegation is that the company knowingly engaged in deceptive acts that precluded the FEC, or the Justice Department, from ascertaining whether they had broken the law. –Bloomberg

    On Monday, Friedrich raised questions over whether the special counsel’s office could prove a key element of their case – saying that it was “hard to see” how allegations of Russian influence were intended to interfere with US government operations vs. simply “confusing voters,” reports law.com.

    During a 90-minute hearing, Friedrich questioned prosecutor Jonathan Kravis about how the government would be able to show the Russian defendants were aware of the Justice Department and FEC’s functions and then deliberately sought to skirt them.

    You still have to show knowledge of the agencies and what they do. How do you do that?” Friedrich asked.

    Kravis, a prosecutor in the U.S. Attorney’s Office for the District of Columbia, argued that the government needed only to show that Concord Management and the other defendants were generally aware that the U.S. government “regulates and monitors” foreign participation in American politics. That awareness, Kravis said, could be inferred from the Russians’ alleged creation of fake social media accounts that appeared to be run by U.S. citizens and “computer infrastructure” intended to mask the Russian origin of the influence operation.

    That is deception that is directed at a higher level,” Kravis said. Kravis appeared in court with Michael Dreeben, a top Justice Department appellate lawyer on detail to the special counsel’s office. –law.com

    Concord pleaded not guilty in May. Their attorney, Eric Dubelier – a partner at Reed Smith, has described the election meddling charges as “make believe,” arguing on Monday that Mueller’s indictment against Concord “doesn’t charge a crime.” 

    “There is no statute of interfering with an election. There just isn’t,” said Dubelier, who added that Mueller’s office alleged a “made-up crime to fit the facts they have.” 

    Dubelier added that the case against Concord Management is the first in US history “where anyone has ever been charged with defrauding the Justice Department” through their failure to register under FARA. 

     

     

  • Opportunities Abound After Khashoggi-Gate

    Authored by Tom Luongo,

    Every crisis is also an opportunity.  Don’t worry I’m not about to go all Rahm Emmanuel, Mr. Realpolitik, on you today.  The death/dismemberment of Jamal Khashoggi is both a crisis and an opportunity for the worst people in the world.

    And all of them are seizing the day, as it were. ..

    Frankly, most of it makes me sick to my stomach. Because where were these virtue-signaling champions of human rights like Jamie Dimon of J.P. Morgan or Lindsay Graham (R – AIPAC) for the past three years as Saudi Crown Prince Mohammed bin Salman (MbS) prosecuted a starvation campaign in Yemen with U.S. complicity?

    Does Lindsay not know that MbS is funding the U.S. occupation in eastern Syria he’s so in love with?

    Now all of a sudden, every war-monger in Washington and Wall St. wants to cut ties with him because killing a political opponent is “beyond the pale?”  Even Christine LaGarde of the IMF will be a no-show at MbS’s big “Davos in the Desert” conference. 

    This is a political hit job. 

    If this faux outrage wasn’t so transparent it would be pathetic.  On second thought, it is pathetic.

    The truth is MbS is a monster.  But, he’s our monster, unfortunately.  We’ve known this since the moment he entered the scene. 

    Since getting Trump’s stamp of approval in early 2017 MbS has used that to go too far a number of times which the U.S. has had to clean up behind him.  His blockade of Qatar didn’t have Washington’s approval. 

    I’m sure killing Khashoggi in the Saudi Turkish consulate didn’t either.

    His consolidation of power was swift and brutal. 

    It’s only just now dawning on American media companies that the Saudis are a bunch of brutal thugs that make the Lannisters look like Quakers?

    MbS has upset the apple carts of long-standing relationships within the U.S. and European elites and bureaucracies while Trump and Jared Kushner attempt to rebuild the U.S./Saudi/Israeli alliance which languished under Obama.

    And that’s the key to understanding this situation.  They want their satraps back. 

    The over-the-top moralistic chest-beating by the U.S. media is a clear sign that the The Davos Crowd ­– the unelected elites and their government quislings who think they run the world — wants things returned to the way they were before Trump.

    And with Trump’s huge victory over them in the Kavanaugh confirmation hearings, Mueller’s Russia-gate nonsense coming to a close and polls tightening like nooses around the DNC’s neck it was time to launch that last ditch effort to derail Trump before he consolidated power post mid-terms.

    So, with that as the motivation all that is lacking is the catalyst. 

    There must have been a reason why MbS went after Khashoggi now, at a time when it could do the most political damage to Trump.  What that could be I have no idea. Better minds than mine are working on that.  What I know is that all of this stinks of former CIA Director John Brennan and Hillary Clinton trying to derail Trump’s recent domestic political victories and possibly save their own hides.

    Why else would Brennan be all over MSNBC being spoon-fed the official narrative by the talking head in this video if there wasn’t an angle here

    Because they all know that if the Democrats fail to retake at least the House of Representative on November 6th, they will have almost zero leverage left on Capitol Hill to protect them from their myriad of crimes.  The Senate is a lost cause, the Republicans will likely take 58 seats into 2020.

    So, the timing here is what is interesting to me. 

    This situation screams manufactured crisis and everyone is looking at this as an opportunity to get something out of it.  Either MbS was set up or he was provoked (thanks to his now legendary poor impulse control) into offing Khashoggi. 

    There are almost as many theories out there as to why he would do this as there are motives for someone to go after MbS himself. 

    Turkey is looking for a way out of Trump’s dog house.  President Erdogan offered up Pastor Brunson as a peace offering.  Turkey also wants concessions on U.S. backing of Kurdish militias in Syria and buying Iranian oil in two weeks. 

    Wayne Madsen covers the Game of Thrones happening within the Gulf Cooperation Council which only adds to the murk.

    That said, regardless of MbS’s motivations he’s taking the brunt of this.  But the real target is Trump.  And Trump may be forced to ditch MbS along the way. 

    None of this, in the end, is a bad thing.  Trump will survive this thing with Khashoggi because his base doesn’t care.  They care that the Saudis are awful people, though, so eventually Trump will have to wind down the love affair.

    And while I’m loathe to be happy about the ‘bad guys’ winning a battle in some ways, anything that weakens Saudi Arabia’s hold over both U.S. media and foreign policy is a welcome development.

    The Saudis cannot survive without friends.  The Night of the Long Knives is coming within the GCC and MbS hasn’t made many friends in the past four years. 

    It’s time for the Trump administration to end its quixotic quest to overthrow Iran and keep the world safe for Neoconservatism.  We may have gotten an early inkling of this with the removal of Nikki Haley from the U.N. and Trump calling out Defense Secretary James Mattis as “something of a Democrat.”

    Since Mattis and former National Security Advisor H.R. McMaster were the strongest supporters of staying in both Syria and Afghanistan which Trump reluctantly went along with.  But, I think, the IL-20 shootdown has Trump in a different state of mind. 

    The real opportunity here isn’t for the dead-enders in D.C. and Davos.  The real opportunity is for Trump to remake his cabinet and retake control of his foreign policy from the Israeli Firsters and Neocons he’s had to surround himself with now that he’ll be in charge of the GOP next month.

    Beginning the process of loosening ties with Saudi Arabia in light of Khashoggi-gate would be a good start. 

  • FBI Admits It Used Multiple Spies To Infiltrate Trump Campaign

    The Department of Justice admitted in a Friday court filing that the FBI used more than one “Confidential Human Source,” (also known as informants, or spies) to infiltrate the Trump campaign through former adviser Carter Page, reports the Daily Caller

    “The FBI has protected information that would identify the identities of other confidential sources who provided information or intelligence to the FBI” as well as “information provided by those sources,” wrote David M. Hardy, the head of the FBI’s Record/Information Dissemination Section (RIDS), in court papers submitted Friday.

    Hardy and Department of Justice (DOJ) attorneys submitted the filings in response to a Freedom of Information Act (FOIA) lawsuit for the FBI’s four applications for Foreign Intelligence Surveillance Act (FISA) warrants against Page. The DOJ released heavily redacted copies of the four FISA warrant applications on June 20, but USA Today reporter Brad Heath has sued for full copies of the documents. –Daily Caller

    Included in Hardy’s declaration is an acknowledgement that the FBI’s spies were in addition to the UK’s Christopher Steele – a former MI6 operative who assembled the controversial and largely unproven “Steel Dossier” which the DOJ/FBI used to obtain a FISA warrant to spy on Page. 

    Christopher Steele, Nellie and Bruce Ohr

    The DOJ says it redacted information in order to protect the identity of their confidential sources, which “includes nonpublic information about and provided by Christopher Steele,” reads the filing, “as well as information about and provided by other confidential sources, all of whom were provided express assurances of confidentiality.” 

    Government lawyers said the payment information is being withheld because disclosing specific payment amounts and dates could “suggest the relative volume of information provided by a particular CHS.” That disclosure could potentially tip the source’s targets off and allow them to “take countermeasures, destroy or fabricate evidence, or otherwise act in a way to thwart the FBI’s activities.” –Daily Caller

    Steele, referred to as Source #1, met with several DOJ / FBI officials during the 2016 campaign, including husband and wife team Bruce and Nellie Ohr. Bruce was the #4 official at the DOJ, while his CIA-linked wife Nellie was hired by Fusion GPS – who also employed Steele, in the anti-Trump opposition research / counterintelligence effort funded by Trump’s opponents, Hillary Clinton and the DNC. 

    In addition to Steele, the FBI also employed 73-year-old University of Cambridge professor Stefan Halper, a US citizen, political veteran and longtime US Intelligence asset enlisted by the FBI to befriend and spy on three members of the Trump campaign during the 2016 US election. Halper received over $1 million in contracts from the Pentagon during the Obama years, however nearly half of that coincided with the 2016 US election. 

    Stefan Halper

    Halper’s name first came to light after the Daily Caller‘s Chuck Ross reported his involvement with Carter Page and George Papadopoulos, another Trump campaign aide. Ross’s reporting was confirmed by the NYT and WaPo

    In June, Trump campaign aides Roger Stone and Michael Caputo claimed that a meeting Stone took in late May, 2016 with a Russian appears to have been an “FBI sting operation” in hindsight, following the reports about Halper.

    Roger Stone

    When Stone arrived at the restaurant in Sunny Isles, he said, Greenberg was wearing a Make America Great Again T-shirt and hat. On his phone, Greenberg pulled up a photo of himself with Trump at a rally, Stone said. –WaPo

    The meeting went nowhere – ending after Stone told Greenberg “You don’t understand Donald Trump… He doesn’t pay for anything.” The Post independently confirmed this account with Greenberg.

    Aftter the meeting, Stone received a text message from Caputo – a Trump campaign communications official who arranged the meeting after Greenberg approached Caputo’s Russian-immigrant business partner. 

    How crazy is the Russian?” Caputo wrote according to a text message reviewed by The Post. Noting that Greenberg wanted “big” money, Stone replied: “waste of time.” WaPo

    In short, the FBI’s acknowledgement that they used multiple spies reinforces Stone’s assertion that he was targeted by one. 

    Further down the rabbit hole

    Stefan Halper’s infiltration of the Trump campaign corresponds with the two of the four targets of the FBI’s Operation Crossfire Hurricane – in which the agency sent former counterintelligence agent Peter Strzok and others to a London meeting in the Summer of 2016 with former Australian diplomat Alexander Downer – who says Papadopoulos drunkenly admitted to knowing that the Russians had Hillary Clinton’s emails.

    Interestingly Downer – the source of the Papadopoulos intel, and Halper – who conned Papadopoulos months later, are linked through UK-based Haklyut & Co. an opposition research and intelligence firm similar to Fusion GPS – founded by three former British intelligence operatives in 1995 to provide the kind of otherwise inaccessible research for which select governments and Fortune 500 corporations pay huge sums

    Alexander Downer

    Downer – a good friend of the Clintons, has been on their advisory board for a decade, while Halper is connected to Hakluyt through Director of U.S. operations Jonathan Clarke, with whom he has co-authored two books. (h/t themarketswork.com)

    Alexander Downer, the Australian High Commissioner to the U.K. Downer said that in May 2016, Papadopoulos told him during a conversation in London about Russians having Clinton emails.

    That information was passed to other Australian government officials before making its way to U.S. officials. FBI agents flew to London a day after “Crossfire Hurricane” started in order to interview Downer.

    It is still not known what Downer says about his interaction with Papadopoulos, which TheDCNF is told occurred around May 10, 2016.

    Also interesting via Lifezette – “Downer is not the only Clinton fan in Hakluyt. Federal contribution records show several of the firm’s U.S. representatives made large contributions to two of Hillary Clinton’s 2016 campaign organizations.”

    Halper contacted Papadopoulos on September 2, 2016 according to The Caller – flying him out to London to work on a policy paper on energy issues in Turkey, Cyprus and Israel – for which he was ultimately paid $3,000. Papadopoulos met Halper several times during his stay, “having dinner one night at the Travellers Club, and Old London gentleman’s club frequented by international diplomats.” 

    They were accompanied by Halper’s assistant, a Turkish woman named Azra Turk. Sources familiar with Papadopoulos’s claims about his trip say Turk flirted with him during their encounters and later on in email exchanges.

    Emails were also brought up during Papadopoulos’s meetings with Halper, though not by the Trump associate, according to sources familiar with his version of events. The sources say that during conversation, Halper randomly brought up Russians and emails. Papadopoulos has told people close to him that he grew suspicious of Halper because of the remark. –Daily Caller

    Meanwhile, Halper targeted Carter Page two days after Page returned from a trip to Moscow. 

    Page’s visit to Moscow, where he spoke at the New Economic School on July 8, 2016, is said to have piqued the FBI’s interest even further. Page and Halper spoke on the sidelines of an election-themed symposium held at Cambridge days later. Former Secretary of State Madeleine Albright and Sir Richard Dearlove, the former head of MI6 and a close colleague of Halper’s, spoke at the event.

    Page would enter the media spotlight in September 2016 after Yahoo! News reported that the FBI was investigating whether he met with two Kremlin insiders during that Moscow trip.

    It would later be revealed that the Yahoo! article was based on unverified information from Christopher Steele, the former British spy who wrote the dossier regarding the Trump campaign. Steele’s report, which was funded by Democrats, also claimed Page worked with Trump campaign chairman Paul Manafort on the collusion conspiracy. –Daily Caller

    A third target of Halper’s was Trump campaign co-chairman Sam Clovis, whose name was revealed by the Washington Post on Friday. 

    In late August 2016, the professor reached out to Clovis, asking if they could meet somewhere in the Washington area, according to Clovis’s attorney, Victoria Toensing.

    “He said he wanted to be helpful to the campaign” and lend the Trump team his foreign-policy experience, Toensing said.

    Clovis, an Iowa political figure and former Air Force officer, met the source and chatted briefly with him over coffee, on either Aug. 31 or Sept. 1, at a hotel cafe in Crystal City, she said. Most of the discussion involved him asking Clovis his views on China.

    “It was two academics discussing China,” Toensing said. “Russia never came up.” –WaPo

    Bruce Ohr is still employed by the Department of Justice, and Fusion GPS continues its hunt for Trump dirt after having partnered with former Feinstein aide and ex-FBI counterintelligence agent, Dan Jones and Steele. The effort is reportedly being under written by George Soros and other wealthy individuals.

    It’s been nearly three years since an army of professional spies was unleashed on Trump, which morphed into the Mueller investigation – and he’s still standing.

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Today’s News 20th October 2018

  • Snyder: 'The Thinning' Continues – US Birth Rate Slumps To Another All-Time Low

    Authored by Michael Snyder via The American Dream blog,

    The elite have worked very hard to slow down birth rates all over the world, and their efforts appear to be working.

    Just as we have witnessed in so many other countries, the birth rate in the United States continues to fall.  In fact, it just plunged to yet another new all-time record low. 

    So why would the elite want this to happen?  Well, they believe that climate change is the greatest threat that our planet is facing, and they also believe that humans are the primary driver of climate change, and so they are convinced that if they can get people to have fewer babies they are actually “saving the world”.  And according to the most recent CDC numbers, they have made a tremendous amount of progress in accomplishing that mission

    US birth rates have plummeted to historic lows, new CDC figures reveal.

    Since 2007, fertility rates have plummeted 18 percent in large cities, 16 percent in mid-sized counties, and 12 percent in rural areas.

    As expected, the average age that women have their first child continues to climb – now at 24.5 years old in rural counties and 27.5 in metropolitan areas.

    In addition, new numbers from the United Nations Population Fund show that 40 percent of all births in the United States now occur outside of marriage

    An increasing number of births happen outside of marriage, signaling cultural and economic shifts that are here to stay, according to a new report from the United Nations.

    Forty percent of all births in the U.S. now occur outside of wedlock, up from 10 percent in 1970, according to an annual report released on Wednesday by the United Nations Population Fund (UNFPA), the largest international provider of sexual and reproductive health services. That number is even higher in the European Union.

    The traditional family has been one of the primary targets for the elite for a very long time, and we have been witnessing a cultural shift that is absolutely breathtaking.

    If you can believe it, the number of married couples with children in the U.S. just reached a 56-year low

    The number of married couples in the United States who have children under 18 hit a 56-year low in 2017, according to the U.S. Census Bureau.

    In 2017, according to Census Bureau table FM-1, there were 23,651,000 married-couple families in this country with children under 18. The last time there were fewer than that was 1961, when there were 23,514,000.

    But of course the overall U.S. population was much, much smaller back in 1961.

    And so if we look at the numbers on a percentage basis, we find that the percentage of U.S. adults that are married with children has declined by almost half

    In 1961, when there were 23,514,000 married couple families with children under 18, the total population of the United States was 183,691,481. So, there was one married couple with kids for every 7.8 people in the country.

    In 2017, when there were 23,651,000 married couples with children under 18, the total population of the United States was 325,719,178. So, there was one married couple with kids for every 13.77 people in the country.

    These numbers tell us more about the true state of our society than just about any other numbers that I have shared with my readers.

    Just like most of the other nations on the planet, the United States is being fundamentally transformed, and that transformation is being conducted according to a blueprint that has been created by the global elite.  The globalists are evil on a level that is hard to describe, and many of us in the alternative media are working extremely hard to expose their true agenda.

    Sadly, many in the western world have willingly embraced their agenda.  Just recently, the Daily Mail published a glowing article in which they glamorized women that had chosen to never have children in order to fight climate change.  One 32-year-old woman stated that she has “a maternal instinct” but insisted that she will never change her mind because “humans are the greatest single driver of climate change”

    Humans are the greatest single driver of climate change and greenhouse gas contributions, of deforestation and the acidity of the oceans,’ she explains earnestly.

    ‘The only thing that will fix these problems is to have fewer people on the planet. I don’t see it’s justified to make more people than we already have. Yes, I have a maternal instinct, but I will never change my mind.

    So she will never know the joy of being a mother because she is so committed to helping the globalists fulfill their agenda.

    That is incredibly sad.

    And at the end of that recent article, the Daily Mail gave the UN population reduction goals a shameless plug

    And, the United Nations argues, if every family had an average of half a child less in the future than currently predicted, there will be one billion fewer humans than it expects by 2050, and four billion fewer by the end of the century.

    The globalists have been using the United Nations as one of the main vehicles for promoting this agenda for many years.  The United Nations Population Fund is one of the most insidious organizations on the entire planet, and yet most Americans don’t even know that it exists.

    And this agenda is increasingly invading popular culture.  For example, YouTube is releasing a new big budget original movie entitled “The Thinning: New World Order” (yes, that is the actual title) that is all about population control.  If you have not seen it yet, you can view the trailer for this new film right here

    Most ordinary people don’t give too much thought to population issues, but for the elite this is like a religion.

    They are absolutely obsessed with reducing the human population of this planet, and they are quite determined to find a way to get that done one way or another.

  • LA Competes For California's Most Disgusting City As "Typhus Zone" Underscores Skid Row Squalor

    San Francisco’s poo and needle-filled streets have competition for the state’s most squalid, as LA’s skid row – home to over 4,000 transients, is now a “typhus zone,” according to NBC News.

    Mark Ralston / AFP – Getty 

    Situated among wholesale fish distributors and produce warehouses, skid row spans approximately 54 square blocks in downtown Los Angeles – and has become a breeding ground for rats and other vermin, which have contributed to Los Angeles County’s typhus outbreak which began this summer. 

    Uneaten food is dumped on the street — a salad platter was recently splattered on the asphalt — and discarded clothing piles up only to be swirled into rats’ nests.

    Those rats, experts say, are likely contributing to the growing number of typhus infections cropping up on skid row and other parts of the region. The disease is spread by fleas, which are carried by rats, opossums and pets.

    You have constant activity that serves as a breeding ground for rats,” said Estela Lopez, executive director of the Central City East Association, a business improvement district that overlaps skid row. –NBC News

    Typhus infections can cause high fever, headache, chills – and in rare or untreated cases, meningitis and death. It is contracted when the “feces from infected flease are rubbed into cuts or scrapes in trhe skin or rubbed into the eyes,” according to the county health department. 

    We’re deploying every available resource to help control and stop this outbreak,” said a spokesman for LA Mayor Eric Garcetti, Alex Comisar. “The city and county have formed a dedicated task force … and we’re putting new funding into intensifying cleanups in the affected area so that we can keep our streets and sidewalks safe for everyone.”

    So far this year, as many as 92 cases of typhus have been reported – including 20 in Pasadena and a possible 18 cases in Long Beach, according to the Long Beach Department of Health and Human Services, which added that five cases are still under investigation. LA sees an average of 60 cases per year, which is double the rate of recent years, according to the LA County Health Department. 

    “With increased rat density, diseases like typhus are very likely to occur,” according to Dr. Lee W. Riley – an infectious disease specialist at the UC Berkeley. 

  • Will China Win The Artificial Intelligence Race?

    Authored by Mathew Maavak via ActivistPost.com,

    Two Artificial Intelligence-driven Internet paradigms may emerge in the near future. One will be based on logic, smart enterprises and human merit while the other may morph into an Orwellian control tool. Even former Google CEO Eric Schmidt has foreseen a bifurcation of the Internet by 2028 and China’s eventual triumph in the AI race by 2030.

    In the meantime, the US seems more interested in deflecting the smart questions of today than in building the smart factories of tomorrow.  Nothing embodies this better than the recent attempt by MIT’s Computer Science and Artificial Intelligence Lab (CSAIL) and the Qatar Computing Research Institute (QCRI) to create an AI-based filter to “stamp out fake-news outlets before the stories spread too widely.”

    But what exactly constitutes fake news? Does it include media-colluded lies over Iraqi possession of weapons of mass destruction in 2002? Or the egregiously fraudulent Nurse Nayirah testimony a decade earlier? Will the binary logic of “either you are with us or against us” be used to certify news sources?

    According to US President Donald J. Trump, fake news is a 24/7 specialty of the CNN, Washington Post and just about every other US mainstream media. The author agrees with Trump on this note. As a futurist, he relies heavily on credible news sources.  The CNN and WaPo, therefore, rarely feature on the trusted list. At the same time, the author squarely blames Trump for the ongoing US-China trade war. This raises several questions: How will MIT’s AI filtration system treat editorial divergences in the same publication? Will they all be feathered and tarred as “fake news” once a threshold – 150 articles according to the new system – is crossed? How will it evaluate analytical gems in the unregulated alternative media and open source fora? Will social media evidences, planted and generated by a critical mass of trolls, be machine-aggregated to determine true news?

    It is also disturbing to note that this digital commissariat is being partly developed by Qatar – a nation that has been routinely singled out for its human rights abuses, use of slave labour, rampant anti-Semitism, runaway fake news  and support of jihadi terrorism. While Qatar and the US media have incessantly accused Syria of wielding chemical weapons, experts from MIT and the UN have adduced otherwise. How will such contradictory reports be treated in the future as more Gulf Arab money pour into MIT and its cohort research institutions?

    Not Made-in-America

    The future of US artificial intelligence and its emerging technologies is overwhelmingly dependent on foreign talent drawn from Asia and Eastern Europe.  This is unsurprising as 44 million US citizens are currently saddled with a staggering $1.53 trillion in student loans – with a projected 40 percent default rate by 2023.

    The US student loan bubble is expanding in tandem with the rising un-employability of young Americans. Fake news overload naturally leads to pervasive intellectual stupefaction.  US policy-makers will ignore this ominous trend, just as they ignore the perennial national slide in global indices that measure the quality of life, education and human capital yields. Can the human mind – incessantly subjected to politicized fairy tales and violent belief systems – be capable of continual innovation?  It is of course easier to blame an external bogeyman over a purely internal malaise. Herein lies the utility of fake news; one that will be filtered by a digital nanny and policed by thousands of ideologically-biased fact-checkers.  Funded, of course, by the US deep state!

    Somehow no known form of intelligence – artificial or otherwise – has impressed US policy-makers on the national security dimensions of the immigrant-citizen digital divide. High-achieving immigrant communities, for example, may be targeted by irate citizens during a period of intense economic distress, precipitating a reverse brain-drain to their countries of origin.

    Even otherwise, the children of highly-skilled naturalized immigrants face a variety of discriminatory practises when they come of age. The most notorious of this is the “Asia fail” intake regimen at vaunted US universities where, smart second-generation Asian Americans are routinely sacrificed on the altars of artificial diversity and multiculturalism.  In future, a digital panopticon may selectively reject meritorious applicants based on “inappropriate” social media posts made a lifetime ago.  Any litigation-unearthed bias in the admissions process can be blamed on a technical glitch. Or on the Russians!

    Forget about merit! The prevalent imperative is to develop next-generation rubber-stampers for the privileged 0.1%.

    Divergent Futures

    Just like the Internet, the middle classes of a US-led Greater Eurabia and a China-led world may have separate trajectories by 2030.  With China experiencing a middle class boom and record numbers of STEM graduates, AI is poised to boost the quantity and quality of a new generation of digital scientists.

    At the same time, the search algorithms of Google, YouTube, Facebook and its cohorts are making it harder for individuals to access critical open source data and analyses.  The convenient pretext here is “fake news” and the need to protect society from misleading information.  Why think… when a state-led AI Commissar can do the thinking for you? Ironically, the West routinely charges China for this very practise. How is it possible then for China to develop rapidly and become a leader in AI?  In the core Asian societies, the art of “constructive criticism” incentivises erudition, knowledge and a face-saving approach.  Knowledge is also unfettered by ideology or provenance.

    The US, on the other hand, is hopelessly trying to find a balance between its ideological dictates, visceral populism and next-generation knowledge. Talent and AI are sacrificed in the process. According to Google’s Eric Schmidt, “Iran… produces some of the smartest and top computer scientists in the world. I want them here. I want them working for Alphabet and Google. It’s crazy not to let these people in.”

    It is even crazier to think that a smart society can be moulded by AI-mediated claptrap and news filters.  This is why China will win the AI race, and Asia will prevail in the Internet of Ideas (IoI).

  • The Next Flu Explosion: Rise In Obesity And Diabetes Will Exacerbate Future Pandemics

    Scientists involved in a new study published this month in the research journal, Frontiers in Cellular and Infection Microbiology, have sounded the alarm over their ability to contain future flu pandemics in relation to the rise of obesity especially in the West today. 

    The study finds that growth rates in obesity and diabetes, along with populations which are increasingly resistant to antibiotics, could turn even a mild flu outbreak into an explosive global pandemic

    Image source: Getty via ABC News

    One of the authors of the study, Dr Kirsty Short, virologist at the University of Queensland, told The Telegraph of the link between obesity and spread of dangerous diseases: “There’s been an incredible rate of increase of diabetes and obesity even in my lifetime.” She explained“This has significant implications on infectious diseases and the spread of infectious disease.”

    Dr. Short continued, “But because chronic diseases have risen in frequency in such a short period of time, we’re only starting to appreciate all of the consequences.”

    Reflecting on the now century old Spanish Influenza pandemic of 1918, which infected a third of the global population and is estimated to have killed between 50 and 100 million people, she said of the next big outbreak, “we know that there will be one”.

    The 1918 Spanish flu pandemic occurred as WWI was winding down. Historical photo via AP

    “As our population is ageing and chronic diseases are becoming so prevalent, that could turn even a mild pandemic into a chronic one,” Dr. Short concluded.

    Though modern medicine and vaccines are better prepared to mitigate the impact of a major outbreak than in 1918, issues like obesity and diabetes more broadly present in society will likely provide a significant hindrance to prevention and treatment, scientists fear, as these conditions could alter the body’s immune response, leading to greater rates of hospitalization and even death. 

    You will find more infographics at Statista

    Disturbingly, scientists have predicted that if something on the scale of the Spanish flu were to occur today, it could result in a death toll as high as 147 million people worldwide, according to estimates

    Commenting on the widely observable fact that flu vaccines often fail each year – a trend that seems to be worsening, another author of the new study noted: “There is a lot to be concerned about,” said Dr van de Sandt commenting on the most recent study.

    “We know more, but there’s still a lot to look into – and we still don’t have a vaccine to protect against all the strains of influenza. Developing one is the next big step, but we’re not even close at the moment to getting a vaccine onto the market,” Dr van de Sandt explained.

    Meanwhile, nearly all recent studies of American obesity suggest the trend of increasingly overweight Americans will only continue, with one “Fat Forecast” from a half-decade ago predicting that a whopping 42% of Americans will be obese by 2030.

  • Escobar: What Sanctions On Russia And China Really Mean

    Authored by Pepe Escobar via The Asia Times,

    The Pentagon may not be advocating total war against both Russia and China – as it has been interpreted in some quarters …

    A crucial Pentagon report on the US defense industrial base and “supply chain resiliency” bluntly accuses China of “military expansion” and “a strategy of economic aggression,” mostly because Beijing is the only source for “a number of chemical products used in munitions and missiles.”

    Russia is mentioned only once, but in a crucial paragraph: as a – what else – “threat,” alongside China, for the US defense industry.

    The Pentagon, in this report, may not be advocating total war against both Russia and China – as it was interpreted in some quarters. What it does is configure the trade war against China as even more incandescent, while laying bare the true motivations behind the sanctioning of Russia.

    The US Department of Commerce has imposed restrictions on 12 Russian corporations that are deemed to be acting contrary to the national security or foreign policy interests of the US.” In practice, this means that American corporations cannot export dual-use products to any of the sanctioned Russian companies.

    There are very clear reasons behind these sanctions – and they are not related to national security. It’s all about “free market” competition.

    At the heart of the storm is the Irkut MC-21 narrow-body passenger jet – the first in the world with a capacity of more than 130 passengers to have composite-based wings.

    AeroComposit is responsible for the development of these composite wings. The estimated share of composites in the overall design is 40%.

    The MC-21’s PD-14 engine – which is unable to power combat jets – will be manufactured by Aviadvigatel. Until now MC-21s had Pratt & Whitney engines. The PD-14 is the first new engine 100% made in Russia since the break up of the USSR.

    Aviation experts are sure that an MC-21 equipped with a PD-14 easily beats the competition; the Airbus A320 and the Boeing-737.

    Then there’s the PD-35 engine – which Aviadvigatel is developing specifically to equip an already announced Russia-China wide-body twinjet airliner to be built by the joint venture China-Russia Commercial Aircraft International Corp Ltd (CRAIC), launched in May 2017 in Shanghai.

    Aviation experts are convinced this is the only project anywhere in the world capable of challenging the decades-long monopoly of Boeing and Airbus.

    Will these sanctions prevent Russia from perfecting the MC-21 and investing in the new airliner? Hardly. Top military analyst Andrei Martyanov convincingly makes the case that these sanctions are at best “laughable,” considering how “makers of avionics and aggregates” for the ultra-sophisticated Su-35 and Su-57 fighter jets would have no problem replacing Western parts on commercial jets.

    Oh China, you’re so ‘malign’

    Even before the Pentagon report, it was clear that the Trump administration’s number one goal in relation to China was to ultimately cut off extended US corporate supply chains and re-implant them – along with tens of thousands of jobs – back into the US.

    This radical reorganization of global capitalism may not be exactly appealing for US multinationals because they would lose all the cost-benefit advantages that seduced them to delocalize to China in the first place. And the lost advantages won’t be offset by more corporate tax breaks.

    It gets worse – from the point to view of global trade: for Trump administration hawks, the re-industrialization of the US presupposes Chinese industrial stagnation. That explains to a large extent the all-out demonization of the high-tech Made in China 2025 drive in all its aspects.

    And this flows in parallel to demonizing Russia. Thus we have US Interior Secretary Ryan Zinke threatening no less than a blockade of Russian energy flows: “The United States has that ability, with our Navy, to make sure the sea lanes are open, and, if necessary, to blockade … to make sure that their energy does not go to market.”

    The commercial and industrial demonization of China reached a paroxysm with Vice-President Mike Pence accusing China of “reckless harassment,” trying to “malign” Trump’s credibility and even being the top US election meddler, displacing Russia. That’s hardly attuned to a commercial strategy whose main goal should be to create US jobs.

    President Xi Jinping and his advisers are not necessarily averse to making a few trade concessions. But that becomes impossible, from Beijing’s point of view, when China is sanctioned because it is buying Russian weapons systems.

    Beijing also can read some extra writing on the trade wall, an inevitable consequence of Pence’s accusations; Magnitsky-style sanctioning of Russian individuals and businesses may soon be extended to the Chinese.

    After all, Pence said Russia’s alleged interference in US affairs paled in comparison with China’s “malign” actions.

    China’s ambassador to the US, Cui Tiankai, in his interview with Fox News, strove for his diplomatic best: “It would be hard to imagine that one-fifth of the global population could develop and prosper, not by relying mainly on their own efforts, but by stealing or forcing some transfer of technology from others … That’s impossible. The Chinese people are as hard-working and diligent as anybody on earth.”

    That is something that will be validated once again in Brussels this week at the biennial ASEM – Asia Europe – summit, first held in 1996. The theme of this year’s summit is “Europe and Asia: global partners and global challenges.” At the top of the agenda is trade, investment and connectivity – at least between Europe and Asia.

    Washington’s offensive on China should not be interpreted under the optics of “fair trade,” but rather as a strategy for containing China technologically, which touches upon the absolutely crucial theme: to prevent China from developing the connectivity supporting the extended supply chains which are at the heart of the Belt and Road Initiative (BRI).

    We don’t need no peer competitors

    A glaring giveaway that these overlapping sanctions on Russia and China are all about the good old Brzezinski fear of Eurasia being dominated by the emergence of “peer competitors” was recently offered by Wess Mitchell, the US State Department Assistant Secretary at the Bureau of European and Eurasian Affairs – the same post previously held by Victoria “F*ck the EU” Nuland.

    This is the original Mitchell testimony to the Senate Foreign Relations Committee. And this is the redacted, sanitized State Department version.

    A crucial phrase in the middle of the second paragraph simply disappeared: “It continues to be among the foremost national security interests of the United States to prevent the domination of the Eurasian landmass by hostile powers.”

    That’s all the geopolitics Beijing and Moscow need to know. Not that they didn’t know it already.

  • Swiss Banks Curb China Travel After UBS Banker Arrested

    Two major Swiss banks imposed restrictions on staff travel to China after a UBS employee was detained in the country, underscoring the challenges of doing business in a country which is a mecca for banks eager to capture and manage (for a generous fee) the fastest growing fortunes in the world, yet are challenged by a regime that tramples over civil rights.

    According to Bloomberg, UBS asked some bankers not to travel to China after the incident, with fellow Swiss bank Julius Baer also imposing a travel ban while Credit Suisse said that so far there was no travel ban in place. The travel restrictions have only affected those bankers who help manage money for clients and haven’t been imposed on the securities unit.

    It was unclear under what circumstances the Singapore-based employee was detained and whether the person has been released.

    As part of Beijing’s ongoing anti-corruption campaign, government clampdowns and unexplained absences have unsettled executives with operations in China, where even the president Interpol recently disappeared abruptly as a result of a bizarre detention. As reported previously, Meng Hongwei was reported missing this month after being taken into custody upon his arrival from France.

    “China’s deep into an anti-corruption drive as well as effort to deleverage the economy,” said Scott Kennedy, a China expert at the Center for Strategic and International Studies. “

    China has been a major new market for financial firms such as UBS as the share of world’s wealthy has soared in the region. UBS estimates a new billionaire is minted in China every two days and Credit Suisse this week said China’s total wealth has risen 1,300 percent this century to $51.9 trillion, more than double the rate of any other nation. The number of High Net Worth individuals in Asia-Pac recently surpassed that of North America, and at 6.2 million was the highest of any geographic region in the world.

    Taking advantage of foreign interest in its capital, China has thrown open its financial markets to foreign firms, a move that has given global companies unprecedented access to the world’s second-biggest economy, even as crackdowns on foreign professionals have been on the rise.

    As for UBS, the world’s largest wealth manager has a long history in China and, according to Bloomberg, claims to have been the first Swiss-based bank to establish a presence in the Asia Pacific region in 1964. The Swiss lender is in talks to acquire a majority stake in its Chinese securities joint venture. UBS is also the largest wealth manager in Asia, with total assets under management of $383 billion at the end of last year.

    It now remains to be seen if the detained UBS banker was actually guilty of a crime, and if not, whether the Zurich-based bank will forget all about the incident in hopes of further profit upside, or if it will demand fair treatment for its employees at the risk of angering local authorities and having its charter removed for making a big fuss. Considering that UBS has yet to officially confirm this incident ever took place – a UBS spokesman declined to comment on the ban and detention – and Bloomberg had to report about it using “anonymous sources”, it is pretty clear which way the bank is leaning.

  • "Mohammad bin Salman Must Go," But US-Saudi Ties Are Here To Stay

    Authored by Federico Pieraccini via The Strategic Culture Foundation,

    Mohammad bin Salman is fully aware of the Western elite’s understanding of its own values. While he may be given a pass to bomb Yemen and kill thousands of innocent civilians, he should know better than to dare touch a Washington Post columnist – “one of ours”, as one MSNBC host said. Did he not realize there would be consequences?

    As more information came out, many analysts began to confront the most obvious question. Was it possible that Mohammed bin Salman (MBS) was so arrogant that he could not imagine the consequences of such a heinous crime? How could MBS betray Trump this way, not anticipating that the Democrats and the mainstream media would jump all over Trump’s friendship with him? Could he be so foolish as to place in jeopardy foreign investments planned at the Davos in the Desert conference on October 23? The answer to that question is apparently: yes, he could.

    The only rational explanation for this behavior is that MBS thought he could get away with it. Remember that we are talking about someone who had Saad Hariri, the prime minister of Lebanon, kidnapped and carried off to the Kingdom, with his whereabouts unknown for days but with very little reaction from the mainstream media or Western politicians. It is possible that in this instance, MBS simply misjudged the level of Khashoggi’s popularity amongst neoliberals of the Washington establishment, provoking an unexpected response. Furthermore, the thesis that the Saudis understood that they had some kind of green light from Trump is not to be totally dismissed. Such a backlash is what you get from having a big mouthpraise your friends too much, and tweet all the time.

    The rapidity with which the US media, and especially dozens of Republican and Democratic senators, attacked Saudi Arabia, blaming it for the atrocious crime, is rather unusual. After all, the Saudi elites have been inclined to behave in such a manner over the last 40 years. But it also highlights the ongoing inconsistency and double standards: nothing is said about Yemen, but the Kingdom is currently under the strongest censure for allegedly offing a journalist.

    As I had already pointed out in my previous article, Khashoggi was clearly part of a faction opposed to the current ruling royal family in Saudi Arabia, headed by MBS. To understand this Saudi golden boy of the US mainstream media as well as military-industrial-spying complex, we have to go back to Mohammed bin Nayef. Bin Nayef has been under house arrest for almost two years, immediately purged by MBS as soon as he assumed power as crown prince. Bin Nayef has for decades been the CIA’s go-to man in Riyadh, helping the CIA & Co. pretend to “fight” al Qaeda in the Kingdom while using al Qaeda as a tool to inflict damage on US geopolitical adversaries.

    The removal of bin Nayef by MBS was greeted with anger by a part of the US establishment close to Washington think tanks and the CIA and was never fully digested. MBS and his father, King Salman, needed to consolidate power around the throne at the time, and bin Nayef was certainly part of the faction opposing MBS, as was Khashoggi.

    Naturally, these antipathies were set aside by the CIA, think tanks and neoliberals in the media due to to the importance of the relationship between Saudi Arabia and the US, especially vis-a-vis the US Petrodollar. MBS even undertook a tour in the US to help smooth the relationship with the West, being hailed as a new reformer, if you can believe that.

    Nowadays,the relationship between Riyadh, Tel Aviv and Washington is based on the strong friendship between Trump and MBS and Trump and Netanyahu. Furthermore, the strengthened link between Trump and MBS, facilitated by son-in-law Jared Kushner, who is close to Israel, served to create a new alliance, perhaps even hinting at the possibility of an Arab NATO. Israel is eager to see more Saudi and US engagement against Iran in the region, and the Saudis similarly praise Israel and the US for being engaged in a fight against Iranian influence in the region. In this way, Trump can please his Israeli friends and see Saudi money pour in as investments.

    These agreements have led to a series of disasters in the Middle East that go against the interests of Israel, Saudi Arabia and the US. Israel’s recklessness has led to the deployment of a wide range of Russian state-of-the-art weapons to Syria, preventing Israel and the US from acting as freely as before. The disastrous Saudi war in Yemen, the almost diplomatic break with Canada, the kidnapping of the prime minister of Lebanon, and now the Khashoggi affair, have further weakened and isolated Saudi Arabia, MBS, and therefore Trump. The US is no longer able to influence events on the ground in Syria, and so the initial plans of Israel and Saudi Arabia have foundered, after having devoted hundreds of millions of dollars to arm and train terrorists to overthrow Assad.

    The Khashoggi affair plays into this situation, exacerbating the war between elites in the US as their strategies in the Middle East continue to fail. The neoliberal mainstream media immediately used the Khashoggi story to pressure Trump into taking a firm stance against one of his last friends and financiers, trying to further isolate him as the midterms approach. Many in the US deep state are convinced – as they were convinced that Clinton would win the presidency – that the House and Senate will end up in Democratic hands in the November elections, paving the way for Trump’s impeachment and for Mike Pence to become president. Pence, a prominent figure of the evangelical right, would be the perfect president for Israel, placing Tel Aviv in the driving seat of US foreign policy as never before. In this scenario, it would certainly be preferable for certain parts of the elite to have a different figure at the helm in Saudi Arabia, seeing as MBS appears to be an unstable leader. Possibly they would prefer someone tied to the US secret services – someone like Mohammed bin Nayef. For these reasons, Democrats, some Republicans and the mainstream media have gone all out against MBS and Trump.

    Turkey seems to be using the situation to further widen the fracture between Saudi Arabia and the rest of the world. Since Doha is paying the bills for Erdogan these days, with the Turkish lira at a low, it is essentially the Al Thani family running the PR show in the Turkish media. It looks like the Qatari media are paying back with interests all the negative media they received from the Saudis over the past year. Despite this, neither Ankara nor Riyadh is intent on any kind escalation, both knowing that any suffering on their part is a boon for their enemies.

    An interesting aspect related to the Khashoggi affair concerns the sources of the news about the investigation, all anonymous and coming from Turkish police or from people linked to the top echelons of the Turkish state. Knowing the odd state of relations between Ankara and Riyadh, and especially between Turkish ally Qatar and Saudi Arabia, all this news coming from one source should at least be taken with a grain of salt. What is certain is that the Turks had immediate knowledge of the matter regarding who, what, where, when and why. This means that they must have bugged the Saudi consulate in Istanbul, allowing the MIT, Turkey’s intelligence service, to know in real time what was happening to Khashoggi. The story concerning the Apple watch appears to be an attempt by the Turks to thrown off the scent Saudis who may be scratching their heads wondering how the Turks came to have such intimate knowledge of what transpired in their consulate.

    For Turkey, the Khashoggi affair could be the occasion for a rapprochement with the US, following a deterioration in relations in the last two years. Turkey has few friends left, and after being cornered by Russia and Iran in Astana with regards to Syria,  it also has to deal with the tensions between Riyadh and Qatar as well as balance its relations with Iran and Israel. Erdogan would like to exploit this event as much as possible, and the release of Pastor Brunson seems to indicate Ankara’s willingness to extend an olive branch to Washington.

    Russia, Syria and Iran have everything to benefit from this ongoing internal quarrel between elements within Saudi Arabia, Israel, Turkey, Qatar and the US. Whatever the outcome of the Khashoggi affair, Moscow, Tehran and Damascus can only benefit from any deterioration of relations between these countries.

  • Sotheby's Burned For $5 Million In Art Auction Fraud

    A fine art consultant in New York and and an interior designer in Florida stole an elderly woman’s identity and used it to bid millions of dollars on famous paintings and defraud the renowned Sotheby’s auction house, federal prosecutors in Florida alleged in court filings. Both men involved have been charged with wire fraud conspiracy and aggravated identity theft, according to the Associated Press.

    Interior designer Antonio DiMarco from Hallandale, Florida, used the identity of a wealthy, 80-year-old retiree to bid at a Sotheby’s contemporary art auction in the fall of 2017. The woman was under the impression that the signature would only be used to allow him access to the auction, not to bid on items.

    Antonio DiMarco/AP

    After obtaining the woman’s signature, DiMarco and art advisor Joakim von Ditmar bought an untitled Mark Rothko painting dated 1968 for $6.4 million. In addition, they bought Ad Reinhardt’s “No. 12”, dated 1950, for $1.16 million. The fraud was foiled when the auction house phoned the woman in order to follow up on the purchases, and she denied any knowledge of bidding for them.

    “No. 12″/Sotheby’s

    Sotheby’s told AP that its discussions with the purchasers “raised significant suspicion and concern for the elderly client they purported to represent and we felt it was necessary to contact the FBI. We are pleased that the appropriate action has been taken and the victim has been protected.”

    Discovery of the fraud didn’t stop Sotheby’s from being on the hook for $5 million, however, as it had committed to pay the works’ consignors regardless of what happened after the paintings were auctioned off. Sotheby’s then commented to the Associated Press that they had recovered much of the money they lost by reselling one painting and putting the other one back on the auction block.

    The retiree also told the FBI that she had brought on DiMarco to decorate her home in 2014, but that instead he took more than $400,000 from her without doing much of the work.

    Meanwhile, pointing out the obvious, a former FBI agent who founded the bureau’s Art Crime team, Robert Wittman, told AP that “this really was not a good fraud. They clearly did not think this all the way through.”

  • California Parents Lose One More Right As State Limits Kids' Menu Drinks To Water Or Milk

    Authored by Meadow Clark via Daisy Luther’s Organic Prepper blog,

    Yes, the rumors are true. California lawmakers passed a state law that forces restaurants within the state to offer only select beverages on children’s menus. Governor Jerry Brown signed SB 1192 into law in late September and it easily passed in both the State and the Assembly. Support for the nanny state law flew under the guise of what’s healthiest for the children.

    The default options for beverages on children’s menus have been forced to change to unflavored milk and water.

    In other words, one more option than a dungeon.

    Please understand that we aren’t promoting giving children HFCS-laden sodas on a regular basis, but we ARE promoting parental choice. Adamantly.

    Customers can order another drink for their child by request, but clearly, the point of the law is to make it difficult (and frowned upon) to order something “unhealthy” for their child. That’s how nanny-state health laws are usually created. In increments or with fines or taxes (see more below), and usually with some kind of societal shame tactic.

    “Non-dairy fluid milk substitutes” containing under 130 calories can also appear as an option on the menu if that kind of drink is available at the restaurant. Again, this is an assumption of the “health” of the beverage and the idea of low calories being best for all children.

    Should the government dictate what drinks a restaurant can serve to patrons? Do you want the government to decide what is healthiest for your children? When you go to McDonald’s, are you there for a fat-free kale smoothie? Is this giving you flashbacks to Nanny Bloomberg’s large drink ban in New York? (Which, I might add, was finally struck down in court as unconstitutional.)

    That is precisely what is happening in California right as we speak. You are probably not surprised, but at the same time, when will the insanity stop?

    Government nannying is insulting…

    Some people might not think a few menu option changes are no big deal in the grand scheme of things. But consider this: Food is more personal than politics and religion. At least you would think so to see people fight about it online. Food is the one thing people strive to have complete control over – three times a day – in regards to their personal liberty. Going to a restaurant is an “extra” that consumers enjoy at will. It’s all up to choice. So it shouldn’t be viewed the government as a health need.

    Food can be more intimate to someone than the typical concept of intimacy. In reality, food IS a form of intimacy. Look at the way different cultures come together as families to enjoy a particular meal. When you start a relationship, you bond over food. For some families, a meal out is the only time when the kids get to drink a soda pop, as a rare treat. Should families at a restaurant be confined to paltry portions and plain tap water for an evening out? Perish the thought!

    Bonding over food is a concept as old as time. Holidays feature certain cuisine. Most religions have some guidelines about food – and people still argue about it every day!

    When you add to that the modern nuance of what constitutes a healthy food, now we’re talking a recipe for disaster.

    So when a sweeping law suddenly takes away that choice from consumers who are spending their hard-earned money for a night out…you may have heard a swath of eyeballs rolling out of heads on the West coast. In Stereo.

    Childhood obesity is certainly rising, but who is to say that crimping a beverage option from a weekly night out will fix the issue?

    Nothing against dairy on this site, but it does cause some problems for a lot of people. So who is to say that prompting the parent to “choose” milk is automatically healthier than the occasional soda drink? One could surmise that orange juice is healthier than soda until you see how it’s made and realize that it’s not the wholesome fruit-based drink we think it is.

    What are the fines for disobeying government nanny health rules?

    According to Intellectual Takeout:

    According to the new law, violations of the rule will be punishable by fines up to $500:

    [The] first violation shall result in a notice of violation. A second violation within a five-year period from the notice of violation shall be punishable by a fine of not more than two hundred fifty dollars ($250). For a third or subsequent violation within a five-year period, the fine shall be not more than five hundred dollars ($500).

    As with most government policies that restrict individual and economic freedom, lawmakers appealed to the public good in order to justify the new regulations. According to Section 1 of the legislation:

    From 1990 to 2016, inclusive, the obesity rate in California increased by 250 percent. While the increase was greatest from 1990 until 2003, recent trends suggest a continued increase in obesity among children.

    The solution, they argue, is to “support parents” efforts to feed their children nutritiously by ensuring healthy beverages are the default options in children’s meals in restaurants,” ultimately improving “children’s health by setting nutritional standards for a restaurant’s children’s meals.”

    The reasoning almost makes sense. If we reduce obesity and help children grow up healthy, then it will lessen the economic burden by the annual $9.1 billion spent on obesity-related health problems. But right there you can see that it’s really about cutting costs. Not much was done when childhood obesity climbed to a degree never before seen in American history.

    Would skipping soda help crimp rapid weight gain?

    You bet!

    Unequivocally the data is clear: the high-fructose corn syrup found in soft drinks increases weight gain much faster than table sugar in the diet.

    So, I must ask:

    Instead of punishing parents, children, and restaurants – why not go after the food and beverage makers who are putting crappy ingredients in all the food and beverages leaving no one any choice at all about obesity if they like to partake every now and then?

    Why not say to the soft drink companies, you’ve placed a harmful ingredient in beverages that is now found to be harmful and strongly correlates with the highest childhood obesity spike we’ve ever seen in the history of the United States of America. You need to switch back right now. We the Nanny made a mistake by subsidizing so much corn. We’ll start getting that sugar cane back in. 

    Instead, the Nanny state points a finger to your inexplicably fat child and says he is a burden on Nanny. No soda pop for you!

    California doesn’t have a glowing record for parents’ rights.

    Don’t forget that Governor Jerry Brown signed one of the toughest vaccine laws in recent history. He removed all exemptions for vaccines for school-aged children (except the medical kind which are nearly impossible to get). Not exactly a champion for children’s health. Parents in California are getting kicked in the teeth.

    And when California inevitably forces every citizen to eat, drink and move only in ways that are approved by the Government, their economy will crash from people crossing the border to have any semblance of fun.

    Californians are already leaving the Golden State in droves, and this is no fun for Arizona as it means that the contrasting laws that they enjoy could be overturned by the coastalites.

    Previously, California banned the sale of soda pop in schools. But, teens then apparently took to sports drinks.

    Intellectual Takeout says:

    As a 2013 study on the effects of soda bans published in the International Journal of Behavior Nutrition and Physical Activity warned, “State laws that ban soda but allow other SSBs [sugar-sweetened beverages] may lead students to substitute other non-soda SSBs.” (Unsurprisingly, California lawmakers also tried to ban sports drinks in schools in 2010. They failed, but the USDA passed a nationwide ban in 2013).

    […]A 2018 UCLA study found that while adolescent soda consumption was down in California, sugar consumption overall was still on the rise.

    Prohibition failed. The War on Drugs failed. Taxing sugar and fat failed. (It was a world’s first and a big fat failure.) Yet governments keep trying to punish the individual with more restrictions and fines. Maybe it’s to get us used to having nothing.

    People want their fix and in the end, they have a right to their choices.

    It doesn’t make sense to legislate human behavior when there are other ways to approach problems…

    If you even have to at all.

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Today’s News 19th October 2018

  • Sweden Declares 'Hand Grenade Amnesty' In Attempt To Stop Explosive Gang Violence 

    On October 15, Sweden began a temporary amnesty program for anyone in possession of hand grenades or other explosives, urging the public to hand over their illegal arsenals before January 11, 2019, with no legal ramifications or questions asked. 

    Sweden has had a hand grenade crisis and issues with organized crime since about 2010. Combine the two with refugees, and the country is on the verge of chaos with violent crime exploding. 

    Sweden is supposed to be one of the most peaceful countries in Europe, but after offering amnesty to thousands of refugees, the country has taken a turn for the worse. 

    According to official government data, 43 grenades were seized last year, of which 21 had been detonated. In 2016, 55 seized, of which 35 had been detonated. In 2015, a mere ten were detonated. 

    In total, there have been 78 incidents of hand grenade explosions in Sweden since 2010, with more than half occurring in 2016. 

    As Breitbart reports, “A grenade amnesty period beings in Sweden this week with the government guaranteeing those who hand in explosive devices to police not face arrest or prosecution…. The weapons amnesty is set to take place between October 15th to January 11th.” 

    Sweden’s The Local explains the weapon amnesty in more depth: 

    “The move was proposed by the center-left coalition government last year, with Justice Minister Morgan Johansson telling DS: “This is linked to criminal gangs who in general have increased access to weapons which they use against one another and against the judicial system. We must get these off our streets. 

    During the amnesty period, anyone in possession of explosive goods without a license can hand them over to police without fear of punishment. It is possible to stay anonymous. Such goods include for example hand grenades, but also in general, detonators or other pyrotechnical goods such as illicit fireworks. 

    Unlike during Sweden’s weapon amnesty earlier this year, it is not permitted to bring unwanted explosives to police stations. People are instead urged to call 114 14, the non-emergency police contact number, to report the weapons.”

    This is not the first time government officials have asked citizens to surrender their weapons. Back in February, the first round of weapon amnesty was launched, police collected 12,000 illegal firearms that were mostly hunting rifles.

    Earlier this year, a 63-year-old man was killed after picking up a grenade he mistook for another object, and a young boy lost his life in 2016 when gang members threw a grenade through his window. 

    Here is CCTV footage from 2016 of an IED blast in Malmo, Sweden. 

    Another CCTV shows the moment when an unknown person detonates a grenade in front of a police station in a “No-Go Zone” of Malmo. 

    In a leaked report from Swedish police, there are 23 Muslim-controlled “No-Go Zones” and some 60 “vulnerable areas” where non-muslim citizens of the country are advised to stay out. 

    As noted in the RT video below, these areas are plagued with violence, sexual assaults and gun crimes, and things have gotten so bad that police refuse to enter. 

    According to the Swedish National Police Commissioner:  

    “We see developments in our country which are not always going in the right direction… We have more than 60 vulnerable areas in and around major cities in Sweden..and we see criminality there and we need to turn around these developments in those areas… and we need the assistance of other parts of our society.” 

    So it seems, hand grenade attacks are connected to organized crime gangs and refugees from “No-Go Zones.” 

    The most common grenade used in Sweden is the M75, which originates from the Balkans and is transported into Sweden by car and or truck. 

    The is an excess of military weapons in the Balkans, left over from the Bosnian War, including high-powered assault rifles, stockpiles of ammunition, and, of course, lots of hand grenades. Sweden’s organized gangs in “No-Go Zones” have solidified relationships with arms dealers in Eastern Europe that have helped them funnel military weapons into the country.

    Earlier this year, Swedish Prime Minister Stefan Lofven said that he would do whatever it takes, including sending in the military, to end the wave of gang violence in the “No-Go Zones.” 

    Sweden has a hand grenade crisis — the only solution offered by authorities have been a series of weapon amnesty programs. If that fails, then it is likely the military will conduct raids in “No-Go Zones” across the country. 

  • Merkel Coalition Gets Overdue Spanking In Bavaria…But 5 Years Too Late To Save Germany

    Authored by Robert Bridge via The Strategic Culture Foundation,

    In Bavaria’s state elections, German voters sent a powerful message to German Chancellor Angela Merkel, who has been harshly criticized for opening up Germany’s borders to the free flow of migration. But strangely enough the pro-immigrant Green Party took a solid second place.

    Merkel and her fragile coalition, comprised of the Christian Social Union (CSU), the Social Democrats Party (SPD) and Merkel’s Christian Democratic Union (CDU) suffered staggering losses in Bavaria on Sunday, losses not experienced by the two powerhouse conservative parties for many decades.

    The CSU won just 37.3 percent of the vote, down 12.1 percent from 2013, thus failing to secure an absolute majority. It marked the worst showing conservative Christian Bavaria, where the CSU has ruled practically unilaterally since 1957. But the political mood in Germany has changed, and Merkel’s so-called sister party will now be forced to seek a coalition to cover its losses.

    Meanwhile, the left-leaning Social Democrats (SPD), in an awkward alliance with their conservative allies, secured just 9.5 percent of the Bavarian vote, down almost 10.9 percent from its 2013 showing.

    The dismal results were not altogether unexpected. CSU leader Horst Seehofer has regularly clashed with Angela Merkel over the question of her loose refugee policies, which saw 1.5 million migrants pour into Germany unmolested in 2015 alone. In January 2016, when the number of arrivals had peaked, Bavaria grabbed headlines as Peter Dreier, mayor of the district of Landshut, sent a busload of refugees to Berlin, saying his city could not handle any more new arrivals.

    Yet, despite such expressions of frustration, and even anger, Germany, perhaps out of some fear of reverting back to atavistic nationalistic tendencies that forever lurks in the background of the German psyche, has not come out in full force against the migrant invasion, which seems to have been forced upon the nation without their approval.

    As with the young girl in the video below, however, some Germans have come forward to express their strong reservations with the trend.

    In general, however, the German people, in direct contradiction to the stereotype of them being an orderly and logical people, do not seem overly concerned with the prospects of their tidy country being overrun by the chaos of undocumented and illegal migrants. This much seemed to be confirmed by the strong showing of the pro-immigration Green Party, which took second place with 18.3 percent of the votes, a 9 percent increase since the last elections.

    Katharina Schulze, the 33-year old co-leader of the Bavarian Greens, told reporters “Bavaria needs a political party that solves the problems of the people and not create new ones over and over again.”

    However, a political platform that seems fine with open borders seems to contradict Schulze’s claim to not creating new problems “over and over again.” Today, thanks to Merkel’s disastrous refugee non-plan, which the Greens applaud, every fifth person in Germany comes from immigration, a figure that will naturally increase over time, placing immense pressure on the country’s already overloaded social welfare programs, not to mention disrupting the country’s social cohesiveness.

    Thus Schulze may find it an impossible challenge “solving the problems of the people,” one of the vaguest campaign pledges I have ever heard, while embracing a staunchly refugee-friendly platform that seems doomed to ultimate disaster.  

    Indeed, Germany appears to be on a collision course between those who accept the idea of being the world’s welcome center for refugees, and those who think Germany must not only close its borders, but perhaps even send back many refugees. After all, it has been proven that many of these new arrivals are in reality economic migrants’ who arrived in Europe not due to any persecution back home, but rather from the hope of improving their lot in life. While it’s certainly no crime to seek out economic opportunities, it becomes a real problem when it comes at the expense of the domestic population.

    From an outsider’s perspective, I cannot fathom how it is possible that Angela Merkel is still in power. Although there is no term limit on the chancellorship, people must still go to the polls and vote for this woman and the CDU, which the majority continues to do – despite everything.

    In a search for answers, I found an explanation by one Arne Trautmann, a German lawyer from Munich.

    “I think the answer lies in German psychology. We do not like instability. We had our experience with it (hyperinflation, wars and such) and it did not work very well. Angela Merkel offers such stability. Simply because she has been around for so long.”

    Still, that answer just drags up more questions that perhaps only the Germans can answer. After all, if the German people “do not like instability,” then the specter of their borders being violated on a daily basis such be simply unacceptable to them. Perhaps I am missing something.

    In any case, there was a consolation prize of sorts in the Bavarian elections, as the anti-immigrant AfD party took fourth place (behind the Free Voters) with 10.2 percent of the votes, an increase of 10 percent from their 2013 performance.

    This will give the AfD parliamentary power in the state assembly for the first time, which should work to put the brakes on illegal migrants entering the country. For the future of Germany, it may be the last hope.

  • Russia Has Dramatically Boosted Spending On Its Nuclear Weapons

    When Russia’s conventional armed forces remained weak and outdated in the years following the Cold War, it attached a high priority to its nuclear weapons as the cornerstone of its defence. As Statista’s Niall McCarthy notes, the country has now embarked on an ambitious plan to modernize its entire military under the 2011-20 state armament program.

    Alongside conventional systems, Russia is upgrading its intercontinental ballistic missiles and strategic bombers. A recent Sipri report has revealed how much Russia is paying for its nuclear weapons.

    Infographic: Russia Has Increased Spending On Its Nuclear Weapons | Statista

    You will find more infographics at Statista

    In 2010, the country spend just under $7 billion on nuclear weapons (13.4 percent of total military spending) and by 2016, that had increased to just under $11 billion (13 percent of total spending).

    This won’t end well…

  • Not This Time Satan: Exorcist Plans To Counter Kavanaugh Hex By Angry Coven Of Witches

    Authored by Mac Slavo via SHTFplan.com,

    Father Gary Thomas, an exorcist for the Diocese of San Jose, California, is “appalled” that a coven of witches is planning to “hex” president Donald Trump’s choice for the Supreme Court, Brett Kavanaugh, on October 20.

    But Father Thomas has a plan to “counter-attack” the hex being put on Kavanaugh.

    The priest will hold two special Masses for the judge, one tomorrow and one on Saturday when the “hexing” will take place at Catland Books, a metaphysical boutique and occult bookshop in Brooklyn, New York. The hexing ritual will have coffin nails, effigies, and dirt from a graveyard.

    Dakota Bracciale, the Brooklyn-based witch who is organizing the hexing event, said the witches see the hex as a radical act of resistance that continues witchcraft’s long history as a refuge and weapon for the “oppressed, downtrodden and marginalized.” Bracciale is also the witch who organized three hexes against President Donald Trump last year.

    “Witchcraft has been used throughout history as a tool and ally for people on the fringes of society who will not ever really get justice through the powers that be,” Bracciale told The Huffington Post. “So they have to exact their own justice.” Bracciale added that the ritual is meant to be cathartic for alleged victims of sexual assault. Kavanaugh will apparently be the focal point for the hex, but not the only target. The public hex is meant to exact revenge on “all rapists and the patriarchy at large which emboldens, rewards and protects them,” a Facebook page dedicated to the event states. –SHTFPlan

    The National Catholic Register‘s Patti Armstrong quoted Thomas as saying:

    “They [people in the satanic world] are more confident that the general public will be more accepting of the demonic.” Armstrong also wrote: Father Thomas noted that throughout history, satanic groups have been secretive, but now they are making it public in the name of freedom of religion. When asked about the witches’ hex, Thomas said it’s just evil.

    “This is a conjuring of evil – not about free speech,” he said. “Conjuring up personified evil does not fall under free speech. Satanic cults often commit crimes; they murder and sexually abuse everyone in their cult.”

    Patheos reported that Father Thomas believes whoever helps hex Kavanaugh believes in the power of personified evil.

    Armstrong further reported that word is traveling quickly about the hex. Those taking a stand against it are urged to pray and fast for the protection of Kavanaugh.

  • Global Bubble Update: Obscure Chinese Company Soars By Half A Billion After Buying $50 Million Sapphire

    We are now in that phase of the bubble cycle where pivoting to a sapphire results in unprecedented market cap gains.

    Shares of Yulong Eco-Materials, a tiny producer of fly-ash bricks based in Pingdingshan, China, surged as much as 950% on Wednesday – forcing the Nasdaq to halt trading four times within the first 30 minutes of trading – after the company revealed that it had completed the purchase of the Millennium Sapphire, a 17.9 kilogram gemstone that Business Insider described as “an icon in the world of art and gems.”

    Sapphire

    Indeed, Yulong shares soared while US indexes ended slightly lower on the day, weighed down by a sharp drop in IBM and other tech stocks. Cannabis shares, the bubbly investment trend du jour, also sold off.

    The company paid $50 million for the stone (which it touted as a bargain in a press release).

    “We are extremely pleased to have completed the purchase of this undervalued world class asset for $50 million,” CEO Hoi Ming Chan said in a statement.

    “The most recent appraisal for the MS (September, 2018) was $60 to $90 million. World wide news headlines of the then unnamed rough sapphire purported the value between $90 to $500 million in 1996 when it was discovered.”

    But in the buying frenzy that ensued, investors apparently overlooked the fact that the company is also in the process of spinning off its entire Chinese business, parting ways with its executives and directors, and relocating to New York, where it will henceforth be known as “Millennium Enterprises Limited.”

    Aside from this, the press release was devoid of information about the company’s new business model. Unfortunately for all the trend-followers who piled into this stock (a group in which the algos are heavily represented, we imagine), it appears Yulong has gone all in on the stone.

    Here’s what the Wall Street Journal wrote about the company’s sapphire-centric business model back in August, when Yulong first agreed to buy the stone from a consortium of investors who have owned it since 1998 (since then, it has only been displayed in public twice).

    Yulong said it plans to take the sapphire on a world tour of museums, to develop documentaries, and to include the gem in the plots of feature films.

    “We will develop the business and cash flows of the Millennium Sapphire through branding and licensing along with royalties and ticket sales through major museums world-wide,” Yulong Chief Executive Hoi Ming Chan said in a news release announcing the deal.

    As @SheepleAnalytics commented on Twitter, if traders were looking for any more evidence that the equity market is reaching peak froth, this is it.

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    A closer look at the company’s filings, undertaken by a group of twitter users commenting on the trading insanity, revealed some interesting details about the company’s (soon-to-be spun off) China business. For example, the company’s address (hopefully they’ll consider investing in a P.O. Box when they get to New York).

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    While the Yulong funded its purchase by issuing shares, ensuring that it won’t face intense cash-flow pressures, at least not in the short term, should investors’ enthusiasm wane in the quarters ahead, at least Yulong has options..

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    On behalf of the team at Zero Hedge, we’d like to sincerely congratulate Yulong’s investors and CEO Hoi on this acquisition. We can assure you, we will be first in line for the company’s (inevitable) ICO.

  • 430% Property Tax Hike Drives 'Black Panther' Leader's Chicago Home Into Foreclosure

    Via WestCookNews.com,

    Cook County says the Maywood boyhood home of Illinois Black Panther Party leader Fred Hampton is worth $141,920.

    Its tax bill: $8,430, or an effective property tax rate of about six percent.

    Property tax rates that high– more than five times the national average– have become standard in inner-ring Chicago suburbs like Maywood. But the $700 per month tax bill has proven too rich for Hampton’s son, Fred Hampton, Jr.

    He’s asking for donations to help him stop the County from auctioning off the home next Tuesday.

    The tax bill at 804 S. 17th Avenue spiked more than 400 percent this year, to more than $8,000 from just $1,919. That’s after its previous owner, Hampton’s uncle, Bill, died and the property lost three tax exemptions, including one that freezes tax bills for seniors, according to the Cook County Treasurer.

    Hampton, Jr., who in 1993, was sentenced to 18 years in prison for throwing a Molotov cocktail into a Korean-owned clothing store in Englewood (he was paroled in 2001), told the Chicago Sun-Times he “doesn’t know” how he fell behind on payments for the home.

    He is president of the Uhuru Solidarity Movement, which has called for an end to capitalism and for white Americans to “take responsibility for the fact that white society rests on the pedestal of the oppression of African people” and pay reparations to black Americans for their “stolen wealth.”

    It hosts a web site where whites can pay reparations with a credit card, presumably to be distributed by Uhuru movement leaders. 

    Oak Park-River Forest High School teacher and Illinois socialist party leader Anthony Clark has started a “Comrades for Fred Hampton Home” GoFundMe page with a goal of $70,000. As of 9:30 p.m. on Wed. Oct 17, 80 contributors had donated a total of $2,832.

    Hampton, Sr. was killed in a controversial Chicago police raid of Black Panther headquarters in 1969.

  • Obama's National Security Advisor Continues To Work For The Saudis

    Among the major revelations connected to the murder of journalist Jamal Khashoggi at the hands of the Saudis is just how resilient and unshakeable relations between the Washington deep state and the Saudi royals actually are. Or rather we should say it has created an atmosphere where “hidden in plane sight” truth of America being joined at the hip to one of the Middle East’s most brutal autocratic regimes can no longer be ignored by the mainstream, or can no longer be shaded from public view by another David Ignatius puff piece fawning over Saudi “reformer” despots. 

    A new Daily Beast investigation has revealed that Obama’s first National Security Adviser, James L. Jones, now works for the Saudis — and despite a growing public movement of Western companies and media organizations to divest and distance themselves from their previous close relationship with the kingdom and events sponsored by crown prince MbS — Jones is refusing to budge. As The Daily Beast concludes in its report, “It’s another sign of the deep reach of Saudi money into the Washington elite.”

    James (Jim) Jones, USMC (ret.), former National Security Advisor to President Obama. Image source: The National

    While noting the heat that Trump-connected individuals have lately taken over their close ties with the Saudis, The Daily Beast uncovers Obama-era officials’ continuing deep ties:

    But Obama World isn’t without close connections to the Kingdom. A company helmed by Jim Jones, then-President Barack Obama’s first National Security Adviser, has a contract with the Saudi government to advise on industrial matters, The Daily Beast has learned. Jones’ company, Jones Group International, had, until March of this year, a second contract with the Kingdom related to Crown Prince Mohammad bin Salman’s military overhaul. It’s another sign of the deep reach of Saudi money into the Washington elite.

    As Jones was also longtime Commandant of the Marine Corps prior to being Obama’s first National Security Advisor, it also underscores the military-industrial complex’s closeness to Saudi rulers spanning decades, and the way this has served to continually shield Riyadh from the scrutiny of Washington and the American public. 

    Gen. Jones heads Jones Group International, whose subsidiary Ironhand Security has a contract with the Saudi government to advise on domestic industrial expansion and infrastructure. And previously Ironhand Security advised on military transformation efforts, according to the report. The relationship was further confirmed by Pentagon-approved contract documents obtained by FOIA — one contract is still in place while another has expired. 

    In response to probes into the relationship, a spokesperson for Ironhand Security told The Daily Beast: “Ironhand Security had a contract with the Saudi government to provide advice on its military transformation efforts, a key component of the 2030 vision and reform agenda strongly supported by the United States.” And the statement further noted, “This was particularly important given the significance of the military-to-military relationship.”

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    The current contract between Jones’ company and the Saudi involves “advisory services on the development of a domestic industrial base.” But interestingly, at a time when a number of companies are publicly distancing themselves from the kingdom over Khashoggi’s brutal murder in the Istanbul consulate  among the most recent include lobbying firms BGR Group and Glover Park Group — Jones has indicated he’s not yet ready to cut business ties with the Saudis.

    “General Jones is disturbed about this matter and horrified at the reports,” the Ironhand Security statement said. “He wants to know precisely what happened to Mr. Khashoggi and eagerly awaits disclosure of the full facts produced by the investigations, which must be thorough, objective, transparent and verifiable.”

    Perhaps the most interesting aspect to The Daily Beast report is the acknowledgement that there is a whole cadre of powerful former US generals and military officials who form an unelected arm of American “soft power”  something rarely, if ever, disclosed to the public

    Lydia Dennett, an investigator at the government watchdog group Project on Government Oversight (POGO), told The Daily Beast that when foreign governments ink contracts with former administration officials, those commercial connections can act as tools of soft power.

    “The concern here is that high-ranking military officials generally are often seen as places where Congress and the executive branch can go to provide unbiased advice on national security issues,” Dennett said. “And when you have these kinds of financial relationships, it can lead to issues of undue influence.”

    We should also note the high number of retired generals on payroll for the major networks — from FOX to CNN to NBC — who without disclosing such lobbying ties consistently appear on prime time panels in order to “inform” (or rather “form”) the public mind on issues ranging from Syria to Iran to Russia. 

    Case in point: as recently as July, Gen. Jones was writing op-eds on “Why the Untied States must remain in Syria” in major outlets while on the Saudi payroll, which was of course not disclosed in said op-eds. 

    However, nothing is actually likely to change in spite of Saudi Arabia currently being int the hot seat, as the Beast notes: “But despite the slough of departures, long-time lobbyists told The Daily Beast that the Kingdom’s ample wealth would still open doors on K Street.” No doubt, things will soon return to business as usual. 

  • Chinese Verbal Intervention In The Market Fails As Stock Rout Accelerates

    This morning, when we reported that the latest flood of margin calls, resulting from $600 billion in shares pledged as collateral for loans and representing a whopping 11% of China’s market cap, sent the Shanghai Composite tumbling 3% to the lowest level since November 2014, we noted that local government efforts to shore up confidence in smaller companies had, quite obviously, failed to boost sentiment… or stem the selling.

    So, as many expected, just before Beijing announced the latest batch of stagflationary economic data including retail sales, industrial production and fixed asset investment, of which the most important was Q3 GDP which printed at 6.5%, the lowest level since Q1 2009, and missing consensus expectations even as inflation has continued to creep higher…

    … the central bank delivered another round of massive verbal intervention, telling investors stocks are undervalued, the economy is sound, the central bank will use prudent, neutral monetary policy and keep reasonable, stable liquidity. Additionally, according to a Q&A statement with Governor Yi Gang posted on the PBOC website:

    • the PBOC will use monetary policy tools including MLF lending to support banks’ credit expansion
    • the PBOC to push forward bond financing by private cos.
    • the PBOC says recent stock market turmoil was caused by investors’ sentiment
    • the PBOC is studying measures to ease cos.’s financing difficulties
    • the PBOC to push forward bond financing by non-state firms; calls for private equity funds to support cos. with financing difficulties

    In other words, the central bank’s “got this.”

    And just to make sure the “all clear” message is heard loud and clear, also this morning the China Securities Regulatory Commission (CSRC) encouraged various funds backed by local government to help ease pressure on listed companies from share-pledge risks, in other words, the regulator itself told funds to stop the margin calls which – as discussed earlier – are now spiraling out of control as lower prices force more liquidations, resulting in even lower prices, and so on.

    Additionally, CSRC Chairman Liu Shiyu said that moral hazard in China is alive and well, and urged local governments to help listed companies that have development potential, but face operational difficulties because of share pledge

    The CSRC will also explore measures to help private firms, especially non-state-owned listed companies, to issue bonds; provide support to small- and mid-sized companies to issue high yield bonds and the regulator will also enhance a mechanism for share buybacks. Finally, the regulator would continue support for reforms and opening up, as well as encourage foreign asset management companies to set up offices in China (although if the market keeps crashing, who will bother?).

    Still, despite the pep talk by both the regulator and the central bank, just minutes later the hard data came in and with GDP missing again, investors were disappointed; The economic slowdown also means that despite the “nudging” by the regulator, funds will be even more aggressive in demanding collateral, leading to even more margin calls after the Shanghai Composite and other key indexes broke decisively below the September lows. Meanwhile, instead of just talking the talk, China’s authorities will need to walk the walk by announcing further concrete stimulus measures, otherwise as Bloomberg notes, “all they have done is talk the market up to provide investors with more attractive exit levels.”

    So what happened next? Well, as shown in the chart below, the Shanghai Composite attempted to stage a modest breakout after opening sharply lower, but that bounce fizzled quickly and after bouncing in the aftermath of the PBOC and CSRC jawboning, stocks resumed their slide when the GDP print hit, and were trading down 0.8% at last check, well below the key 2,500 support level, wiping out 4 years of gains.

    What’s next?

    Unless Beijing’s “National Team” steps in next with some truly aggressive buying in the open market, most likely in the last hour of trading – which however will only provide even more selling opportunities to big holders – today’s global rout may accelerate tomorrow now that China is on the verge of losing control of both its economy and its stock market. 

  • Stephen Hawking: Time Travel More Likely Than The Existence Of God

    Authored by Eric Mack via Forbes.com,

    In Stephen Hawking’s universe there was no room for God, because the famous cosmologist came to believe that the entirety of existence was created out of, well… nothing.

    As he explains in his final book, “Brief Answers to the Big Questions,” before the Big Bang there was nothing, not even a God to create the universe.

    “I think the universe was spontaneously created out of nothing according to the laws of science,” Hawking writes.

    “There is no time for a creator to have existed in.”

    He goes on to explain that the only God who could be consistent with the laws of physics would be a deity who never directly influences the workings of the universe.

    “These laws may or may not have been decreed by God, but he cannot intervene to break the laws or they would not be laws.”

    While the existence of God makes little sense to Hawking, he’s more open to the possibility of something that most people might consider much more far-fetched: time travel.

    Hawking famously held a party for time travelers but did not send out the invitations until after the party. No one showed up for the festivities. But the scientist writes that there is still some hope that traveling back in time could be possible according to the laws of the universe.  He pegs this notion on the promise of something called “M theory” that suggests the universe may contain seven hidden dimensions in addition to the familiar four dimensions of space-time.

    “Rapid space travel and travel back in time can’t be ruled out according to our present understanding,” he writes.

    “Science fiction fans need not lose heart: there’s hope in M theory.”

    Hawking was working on the book at the time of his death in March and it was completed with the help of his family and vast personal archives.

    The relatively brisk read dedicates a chapter to underscoring the frequent public alarms the physicist sounded about the potential perils of artificial intelligence and another on advancing climate change.  He also hits several optimistic notes for the future, predicting that science will find a grand unified theory that unites relativity and quantum physics and that humans will be traveling through the solar system within a century.

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Today’s News 18th October 2018

  • More Italians Move Savings To Switzerland As Fears Of Banking "Doom Loop" Intensify

    With the euro weakening against the Swiss franc (recently trading at session lows of 1.14) and Italian stocks and bonds tumbling once again on reports that the European Commission is planning to reject the Italian draft budget plan submitted earlier this week – a repudiation of Italy’s populist leaders that was widely anticipated – the Telegraph’s Ambrose Evans-Pritchard offered a glimpse into how middle-class Italians are reacting to the deteriorating relationship between Italy and the EU, and its attendant impact on the country’s banks and capital markets. In a trend that’s eerily reminiscent of the banking run that precipitated the near-collapse of the Greek banking system (most recently in 2015), Italians are scrambling to convert their euros into Swiss francs and stash them across the country’s northern border with Switzerland.

    Swiss

    Right now, the movement has mostly been limited to the wealthy. “The big players” have already gotten out…

    The Swiss group Albacore Wealth Management told Italy’s Il Sole had received a wave of inquiries from Italians with €5m to €10m in liquid capital. The super-rich are already a step ahead. “The big fish have been organizing the expatriation of their wealth for some time,” it said.

    …and those with between 200,000 euros and 300,000 euros in assets are moving more quickly, inspired by memories of desperate Greeks struggling with capital controls that restricted ATM withdrawals. 

    “There is fear creeping in,” said Massimo Gionso, head of family wealth managers CFO Sim in Milan.

    “People are concerned that if we get into the same situation as Greece, they might find the banks are closed and they can take out only €50 a day from cash machines. They don’t want to risk it,” he told the Daily Telegraph.

    “These are families with savings of €200,000 or €300,000. They want to set up accounts in Lugano or Chiasso across the border in Ticino where everybody speaks Italian. The big players have already got their money out,” he said.

    Since Italy is (for now at least) free of laws restricting the flow of money out of the country, these Italians are doing everything legally, with one expert claiming that authorities are informed and all transactions made on behalf of his clients are done legally. But that could soon change as the Italian government scrambles to contain a crisis that is drawing closer with every trading sessions. As one Barclays analyst told the Telegraph, “the risk of Italy sliding into an unstable debt spiral has increased.” Fabio Fois said risk spreads between 10-year BTPs and bunds could move “sharply higher”, possibly punching through the “tipping point” of 400 basis points. In fact, it’s widely expected that they will breach this threshold if Moody’s and Standard & Poor’s later this month decides to cut their ratings on Italian debt to “junk” status. Earlier Wednesday, an Italian government official warned that a downgrade “can’t be excluded”.

    Italy

    Markets have already priced in one-notch cut in the rating but not a further negative watch as well, which would bring ‘junk’ status into sharp focus.

    One analyst said the deterioration in Italy feels distinctly similar to the eurozone-wide panic of 2011.

    Simon Derrick from BNY Mellon said the drama feels like the onset of eurozone crisis in 2011. “This all has a very familiar pattern. Once the spreads blow up and reach 400, you reach a tipping point and the crisis takes hold,” he said.  

    Falling yields pose two distinct problems for Italian banks. First, since Italian banks hold sizable quantities of Italian sovereign debt on their balance sheets, any move higher in yields translates into a mark-to-market loss, and the banks get crushed. This, in turn, hurts their capital buffers, which limits the amount of money they can lend to customers. And as their capital reserves erode, the process risks sparking a “doom loop” that could send the whole system spiraling into a crisis.

    Two

    However, it’s worth noting that Italian deposits held “rock solid” during the 20111 crisis.

    Any sign that Italians might be pulling money from bank accounts is ominous. David Owen from Jefferies said Italian deposits held rock solid through the eurozone crisis. “It was nothing like Greece where there was wholesale liquidation. So far we haven’t seen any of that in the Italian data,” he said.  However, figures from the Bank of Italy are released with a delay.

    Though comments from the League’s economy spokesman certainly aren’t helping to sooth investors’ fears. Neither have reports that EU authorities are monitoring Italian bank liquidity “more intensely” than usual.

    Lega economics spokesman Claudio Borghi told the Telegraph last week that the EU can expect “Armageddon” if it tries to force Italy to its knees.  “They will find that the crisis is not Greece squared, but Greece cubed. This would be a thousand times worse,” he said.

    And while large depositors pulled 72 billion euros out of Italian banks during May and June, money started flowing back in over the summer as Finance Minister Giovanni Tria tried to make nice with the European Commission. But the party bosses of the League and Five Star Movement are back in control, and betting that the EU will back down on its insistence that Italy abide by strict budget rules that would cap its deficit at 0.8%, far less than the 2.4% Italians are calling for in the proposed budget. And the ECB has already said it won’t come to Italy’s rescue in the event of a banking or sovereign debt crisis unless it secures a bailout from the European Stability Mechanism – an unlikely scenario unless Italy concedes in the budget deficit battle, which would be a crushing political blow to the ruling populist coalition. Once thing is for sure: Italian capital outflows data will become increasingly important to the market, assuming the standoff continues and BTP yields continue moving higher.

  • Skripal And Khashoggi: A Tale of Two 'Disappearances'

    Authored by Finian Cunningham via The Strategic Culture Foundation,

    Two disappearances, and two very different responses from Western governments, which illustrates their rank hypocrisy.

    When former Russian spy Sergei Skripal went missing in England earlier this year, there was almost immediate punitive action by the British government and its NATO allies against Moscow. By contrast, Western governments are straining with restraint towards Saudi Arabia over the more shocking and provable case of murdered journalist Jamal Khashoggi.

    The outcry by Western governments and media over the Skripal affair was deafening and resulted in Britain, the US and some 28 other countries expelling dozens of Russian diplomats on the back of unsubstantiated British allegations that the Kremlin tried to assassinate an exiled spy with a deadly nerve agent. The Trump administration has further tightened sanctions citing the Skripal incident.

    London’s case against Moscow has been marked by wild speculation and ropey innuendo. No verifiable evidence of what actually happened to Sergei Skripal (67) and his daughter Yulia has been presented by the British authorities. Their claim that President Vladimir Putin sanctioned a hit squad armed with nerve poison relies on sheer conjecture.

    All we know for sure is that the Skripals have been disappeared from public contact by the British authorities for more than seven months, since the mysterious incident of alleged poisoning in Salisbury on March 4.

    Russian authorities and family relatives have been steadfastly refused any contact by London with the Skripal pair, despite more than 60 official requests from Moscow in accordance with international law and in spite of the fact that Yulia is a citizen of the Russian Federation with consular rights.

    It is an outrage that based on such thin ice of “evidence”, the British have built an edifice of censure against Moscow, rallying an international campaign of further sanctions and diplomatic expulsions.

    Now contrast that strenuous reaction, indeed hyper over-reaction, with how Britain, the US, France, Canada and other Western governments are ever-so slowly responding to Saudi Arabia over the Khashoggi case.

    After nearly two weeks since Jamal Khashoggi entered the Saudi consulate in Istanbul, Turkey, the Saudi regime is this week finally admitting he was killed on their premises – albeit, they claim, in a “botched interrogation”.

    Turkish and American intelligence had earlier claimed that Khashoggi was tortured and murdered on the Saudi premises by a 15-member hit squad sent from Riyadh.

    Even more grisly, it is claimed that Khashoggi’s body was hacked up with a bone saw by the killers, his remains secreted out of the consulate building in boxes, and flown back to Saudi Arabia on board two private jets connected to the Saudi royal family.

    What’s more, the Turks and Americans claim that the whole barbaric plot to murder Khashoggi was on the orders of senior Saudi rulers, implicating Crown Prince Mohammed bin Salman. The latest twist out of Riyadh, is an attempt to scapegoat “rogue killers” and whitewash the House of Saudi from culpability.

    The fact that 59-year-old Khashoggi was a legal US resident and a columnist for the Washington Post has no doubt given his case such prominent coverage in Western news media. Thousands of other victims of Saudi vengeance are routinely ignored in the West.

    Nevertheless, despite the horrific and damning case against the Saudi monarchy, the response from the Trump administration, Britain and others has been abject.

    President Trump has blustered that there “will be severe consequences” for the Saudi regime if it is proven culpable in the murder of Khashoggi. Trump quickly qualified, however, saying that billion-dollar arms deals with the oil-rich kingdom will not be cancelled. Now Trump appears to be joining in a cover-up by spinning the story that the Khashoggi killing was done by “rogue killers”.

    Britain, France and Germany this week issued a joint statement calling for “a credible investigation” into the disappearance. But other than “tough-sounding” rhetoric, none of the European states have indicated any specific sanctions, such as weapons contracts being revoked or diplomatic expulsions.

    Canadian Prime Minister Justin Trudeau said he was “concerned” by the gruesome claims about Khashoggi’s killing, but he reiterated that Ottawa would not be scrapping a $15 billion sale of combat vehicles to Riyadh.

    The Saudi rulers have even threatened retaliatory measures if sanctions are imposed by Western governments.

    Saudi denials of official culpability seem to be a brazen flouting of all reason and circumstantial evidence that Khashoggi was indeed murdered in the consulate building on senior Saudi orders.

    This week a glitzy international investor conference in Saudi Arabia is being boycotted by top business figures, including the World Bank chief, Jim Yong Kim, JP Morgan CEO Jamie Dimon and Britain’s venture capitalist Richard Branson. Global firms like Ford and Uber have pulled out, as have various media sponsors, such as CNN, the New York Times and Financial Times. Withdrawal from the event was in response to the Khashoggi affair.

    A growing bipartisan chorus of US Senators, including Bob Corker, Marco Rubio, Lindsey Graham and Chris Murphy, have called for the cancellation of American arms sales to Saudi Arabia, as well as for an overhaul of the strategic partnership between the two countries.

    Still, Trump has rebuffed calls for punitive response. He has said that American jobs and profits depend on the Saudi weapons market. Some 20 per cent of all US arms sales are estimated to go to the House of Saud.

    The New York Times this week headlined: “In Trump’s Saudi Bargain, the Bottom Line Proudly Stands Out”.

    The Trump White House will be represented at the investment conference in Saudi Arabia this week – dubbed “Davos in the Desert” by Treasury Secretary Steven Mnuchin. He said he was attending in spite of the grave allegations against the Saudi rulers.

    Surely the point here is the unseemly indulgence by Western governments of Saudi Arabia and its so-called “reforming” Crown Prince. It is remarkable how much credulity Washington, London, Paris, Ottawa and others are affording the Saudi despots who, most likely, have been caught redhanded in a barbarous murder.

    Yet, when it comes to Russia and outlandish, unproven claims that the Kremlin carried out a bizarre poison-assassination plot, all these same Western governments abandon all reason and decorum to pile sanctions on Russia based on lurid, hollow speculation. The blatant hypocrisy demolishes any pretense of integrity or principle.

    Here is another connection between the Skripal and Khashoggi affairs. The Saudis no doubt took note of the way Britain’s rulers have shown absolute disregard and contempt for international law in their de facto abduction of Sergei and Yulia Skripal. If the British can get away with that gross violation, then the Saudis probably thought that nobody would care too much if they disappeared Jamal Khashoggi.

    Grotesquely, the way things are shaping up in terms of hypocritical lack of action by the Americans, British and others towards the Saudi despots, the latter might just get away with murder. Not so Russia. The Russians are not allowed to get away with even an absurd fantasy.

  • China To Launch Moon Simulator In 2020 

    Government officials in the southwestern Chinese city of Chengdu, the capital of Sichuan province, have revealed plans to launch an illumination satellite, known as “artificial moon,” in 2020, according to Wu Chunfeng, chairman of Chengdu Aerospace Science and Technology Microelectronics System Research Insitute Co., Ltd., as per a new report from the People’s Daily Online. 

    Wu debuted the illumination satellite at the national mass innovation and entrepreneurship conference in Chengdu last week. 

    He said the satellite would complement the moon at night, with its brightness eight times of that, and “bright enough to replace street lights in the city.” 

    The moon simulator can light up an area with a diameter of 10 to 80 kilometers (6 to 50 miles), while the operator of the spacecraft has precise illumination capabilities. 

    Even though China’s moon simulator is considered a giant leap for the country’s space program, some experts have expressed concern that artificial light from space could disrupt animal and human routines and astronomical observations. 

    Kang Weimin, director of the Institute of Optics, School of Aerospace, told the People’s Daily Online to dismiss the claims that the moon simulator would disrupt nature because it would only create a “dust-like glow in the sky.” 

    The Chinese paper did not give further specifications of the spacecraft or its official launch date. 

    In 1993, The New York Times reported that Russian scientists were attempting to mount a 65-foot-diameter disk of an aluminum-coated plastic film (space mirror) on its now-defunct Mir space station in a bid to illuminate the night sky. 

    CNN said the space mirror failed in February 1999, when MIR astronauts were unable to unfold the umbrella-like mirror after it experienced technical failure.

    If the mirror worked as plan, it would have been a giant artificial moon, according to CNN back then, reflecting sunlight onto Russia, numerous Soviet Republics, and even reaching parts of Germany and the Czech Republic. 

    Russian officials said in the 90’s that the mirror could illuminate construction sites, disaster areas, and or large cities. 

    Designers also said the mirror could have been used in agriculture to boost growing cycles by lengthening the day. 

    While it seems global governments have been working on moon simulators for decades, none of which have so far been successful, a handful of conspiracy theorist have alleged that the US government has a “solar sun simulator” satellite that creates an artificial sun. 

  • John Whitehead: You Want To Make America Great Again? Start By Making America Free Again

    Authored by John Whitehead via The Rutherford Institute,

    “If the freedom of speech be taken away, then dumb and silent we may be led, like sheep to the slaughter.”—George Washington

    Living in a representative republic means that each person has the right to take a stand for what they think is right, whether that means marching outside the halls of government, wearing clothing with provocative statements, or simply holding up a sign. 

    That’s what the First Amendment is supposed to be about.

    Yet through a series of carefully crafted legislative steps and politically expedient court rulings, government officials have managed to disembowel this fundamental freedom, rendering it with little more meaning than the right to file a lawsuit against government officials.

    In the process, government officials have succeeded in insulating themselves from their constituents, making it increasingly difficult for average Americans to make themselves seen or heard by those who most need to hear what “we the people” have to say.

    Indeed, President Trump—always keen to exercise his free speech rights to sound off freely on any topic that strikes his fancy—has not been as eager to protect the First Amendment rights of his fellow citizens to speak freely, assemble, protest and petition one’s government officials for a redress of grievances.

    Not that long ago, in fact, Trump suggested that the act of protesting should be illegal.

    The president has also suggested demonstrators should lose their jobs or be met with violence for speaking out.

    Mind you, this is the man who took an oath of office to uphold and defend the Constitution.

    Perhaps someone should have made sure Trump had actually read the Constitution first.

    Most recently, the Trump Administration proposed rules that would crack down on protests in front of the White House and on the National Mall.

    According to the Philadelphia Inquirer, “The rules would restrict gatherings that now take place on a 25-foot-wide sidewalk in front of the White House to just a 5-foot sliver, severely limiting crowds. The NPS [National Park Service] also threatens to hit political protesters on the National Mall with large security and cleanup fees that historically have been waived for such gatherings, and it wants to make it easier to reject a spontaneous protest of the type that might occur, say, if Trump fires special counsel Robert Mueller.”

    Imagine if the hundreds of thousands of participants in the 1963 March on Washington for Jobs and Freedom, which culminated with Martin Luther King, Jr.’s “I Have a Dream” speech at the Lincoln Memorial, had been forced into free speech zones or required to pay for the “privilege” of protest.

    There likely would not have been a 1964 Civil Rights Act.

    What is going on here?

    Clearly, the government has no interest in hearing what “we the people” have to say.

    It’s the message that is feared, especially if that message challenges the status quo.

    That’s why so many hurdles are being placed in the path of those attempting to voice sentiments that may be construed as unpopular, offensive, conspiratorial, violent, threatening or anti-government.

    Yet the right of political free speech is the basis of all liberty.

    It’s the citizen’s right to confront the government and demand that it alter its policies. But first, citizens have to be seen and heard, and only under extraordinary circumstances should free speech ever be restricted.

    No government that claims to value freedom would adopt such draconian measures to clamp down on lawful First Amendment activities. These tactics of censorship, suppression and oppression go hand-in-hand with fascism.

    Efforts to confine and control dissenters are really efforts to confine and control the effect of their messages, whatever those might be.

    That’s the point, isn’t it?

    The powers-that-be don’t want us to be seen and heard.

    Haven’t you noticed that interactions with elected representatives have become increasingly manufactured and distant over the past 50 years? Press conferences, ticketed luncheons, televised speeches and one-sided town hall meetings held over the phone now largely take the place of face-to-face interaction with constituents.

    Additionally, there has been an increased use of so-called “free speech zones,” designated areas for expressive activity used to corral and block protestors at political events from interacting with public officials. Both the Democratic and Republican parties have used these “free speech zones,” some located within chain-link cages, at various conventions to mute any and all criticism of their policies.

    This push to insulate government officials from those exercising their First Amendment rights stems from an elitist mindset which views them as different, set apart somehow, from the people they have been appointed to serve and represent. 

    We have litigated and legislated our way into a new governmental framework where the dictates of petty bureaucrats carry greater weight than the inalienable rights of the citizenry.

    With every passing day, we’re being moved further down the road towards a totalitarian society characterized by government censorship, violence, corruption, hypocrisy and intolerance, all packaged for our supposed benefit in the Orwellian doublespeak of national security, tolerance and so-called “government speech.”

    Indeed, while lobbyists mill in and out of the homes and offices of Congressmen, the American people are kept at a distance through free speech zones, electronic town hall meetings, and security barriers. And those who dare to breach the gap—even through silent forms of protest—are arrested for making their voices heard.

    On paper, we are free to speak.

    In reality, however, we are only as free to speak as a government official may allow.

    Free speech zones, bubble zones, trespass zones, anti-bullying legislation, zero tolerance policies, hate crime laws and a host of other legalistic maladies dreamed up by politicians and prosecutors have conspired to corrode our core freedoms.

    Indeed, the Supreme Court has had the effrontery to suggest that the government can discriminate freely against First Amendment activity that takes place within a government forum, justifying such discrimination as “government speech.”

    If it were just the courts suppressing free speech, that would be one thing to worry about, but First Amendment activities are being pummeled, punched, kicked, choked, chained and generally gagged all across the country.

    Protest laws are not about protecting the economy or private property or public sidewalks. Rather, they are intended to keep us corralled, muzzle discontent and discourage anyone from challenging government authority.

    The reasons for such censorship vary widely, but the end result remains the same: the complete eradication of what Benjamin Franklin referred to as the “principal pillar of a free government.”

    If Americans are not able to peacefully assemble for expressive activity outside of the halls of government or on public roads on which government officials must pass, the First Amendment has lost all meaning.

    If we cannot stand silently outside of the Supreme Court or the Capitol or the White House, our ability to hold the government accountable for its actions is threatened, and so are the rights and liberties which we cherish as Americans.

    Free speech can certainly not be considered “free” when expressive activities across the nation are being increasingly limited, restricted to so-called free speech zones, or altogether blocked. 

    If citizens cannot stand out in the open on a public sidewalk and voice their disapproval of their government, its representatives and its policies, without fearing prosecution, then the First Amendment with all its robust protections for free speech, assembly and the right to petition one’s government for a redress of grievances is little more than window-dressing on a store window: pretty to look at but serving little real purpose.

    What most people fail to understand is that the First Amendment is not only about the citizenry’s right to freely express themselves. Rather, the First Amendment speaks to the citizenry’s right to express their concerns about their government to their government, in a time, place and manner best suited to ensuring that those concerns are heard.

    The First Amendment gives every American the right to “petition his government for a redress of grievances.”

    This amounts to so much more than filing a lawsuit against the government. It works hand in hand with free speech to ensure, as Adam Newton and Ronald K.L. Collins report for the Five Freedoms Project, “that our leaders hear, even if they don’t listen to, the electorate. Though public officials may be indifferent, contrary, or silent participants in democratic discourse, at least the First Amendment commands their audience.”

    As Newton and Collins elaborate:

    “Petitioning” has come to signify any nonviolent, legal means of encouraging or disapproving government action, whether directed to the judicial, executive or legislative branch. Lobbying, letter-writing, e-mail campaigns, testifying before tribunals, filing lawsuits, supporting referenda, collecting signatures for ballot initiatives, peaceful protests and picketing: all public articulation of issues, complaints and interests designed to spur government action qualifies under the petition clause, even if the activities partake of other First Amendment freedoms.

    There’s more.

    Even more critical than the right to speak freely, or pray freely, or assemble freely, or petition the government for a redress of grievances, or have a free press is the unspoken freedom enshrined in the First Amendment that assures us of the right to think freely and openly debate issues without being muzzled or treated like a criminal.

    Just as surveillance has been shown to “stifle and smother dissent, keeping a populace cowed by fear,” government censorship gives rise to self-censorship, breeds compliance and makes independent thought all but impossible.

    In the end, censorship and political correctness not only produce people that cannot speak for themselves but also people who cannot think for themselves. And a citizenry that can’t think for itself is a citizenry that will neither rebel against the government’s dictates nor revolt against the government’s tyranny.

    The end result: a nation of sheep who willingly line up for the slaughterhouse.

    Still, as Supreme Court Justice William O. Douglas advised in his dissent in Colten v. Kentucky, “we need not stay docile and quiet” in the face of authority.

    The Constitution does not require Americans to be servile or even civil to government officials.

    Neither does the Constitution require obedience (although it does insist on nonviolence).

    If we just cower before government agents and meekly obey, we may find ourselves following in the footsteps of those nations that eventually fell to tyranny.

    The alternative involves standing up and speaking truth to power.

    Jesus Christ walked that road.

    So did Mahatma Gandhi, Martin Luther King Jr., and countless other freedom fighters whose actions changed the course of history.

    Indeed, had Christ merely complied with the Roman police state, there would have been no crucifixion and no Christian religion.

    Had Gandhi meekly fallen in line with the British Empire’s dictates, the Indian people would never have won their independence.

    Had Martin Luther King Jr. obeyed the laws of his day, there would have been no civil rights movement.

    And if the founding fathers had marched in lockstep with royal decrees, there would have been no American Revolution.

    In other words, if freedom means anything, it means that those exercising their right to protest are showing the greatest respect for the principles on which this nation was founded: the right to free speech and the right to dissent. 

    Clearly, the First Amendment to the Constitution assures Americans of the right to speak freely, assemble freely and protest (petition the government for a redress of grievances).

    Whether those First Amendment activities take place in a courtroom or a classroom, on a football field or in front of the White House is not the issue. What matters is that Americans have a right—according to the spirit, if not always the letter, of the law—to voice their concerns without being penalized for it.

    Frankly, the First Amendment does more than give us a right to criticize our country: it makes it a civic duty.

    Let’s not confuse patriotism (love for or devotion to one’s country) with blind obedience to the government’s dictates. That is the first step towards creating an authoritarian regime.

    One can be patriotic and love one’s country while at the same time disagreeing with the government or protesting government misconduct. As journalist Barbara Ehrenreich recognizes, “Dissent, rebellion, and all-around hell-raising remain the true duty of patriots.”

    Indeed, I would venture to say that if you’re not speaking out or taking a stand against government wrongdoing—if you’re marching in lockstep with everything the government and its agents dole out—and if you’re prioritizing partisan politics over the principles enshrined in the Constitution, then you’re not a true patriot.

    Real patriots care enough to take a stand, speak out, protest and challenge the government whenever it steps out of line. There is nothing patriotic about the lengths to which Americans have allowed the government to go in its efforts to dismantle our constitutional republic and shift the country into a police state.

    It’s not anti-American to be anti-war or anti-police misconduct or anti-racial discrimination, but it is anti-American to be anti-freedom.

    Listen: I served in the Army.

    I lived through the Civil Rights era.

    I came of age during the Sixties, when activists took to the streets to protest war and economic and racial injustice.

    As a constitutional lawyer, I defend people daily whose civil liberties are being violated, including high school students prohibited from wearing American flag t-shirts to school, allegedly out of a fear that it might be disruptive.

    I understand the price that must be paid for freedom.

    Responsible citizenship means being outraged at the loss of others’ freedoms, even when our own are not directly threatened.

    The Framers of the Constitution knew very well that whenever and wherever democratic governments had failed, it was because the people had abdicated their responsibility as guardians of freedom. They also knew that whenever in history the people denied this responsibility, an authoritarian regime arose which eventually denied the people the right to govern themselves.

    Citizens must be willing to stand and fight to protect their freedoms. And if need be, it will entail publicly criticizing the government.

    This is true patriotism in action.

    Never in American history has there been a more pressing need to maintain the barriers in the Constitution erected by our Founders to check governmental power and abuse.

    Not only do we no longer have dominion over our bodies, our families, our property and our lives, but the government continues to chip away at what few rights we still have to speak freely and think for ourselves.

    If the government can control speech, it can control thought and, in turn, it can control the minds of the citizenry.

    My friends, let us not be played for fools.

    The government’s ongoing attempts to suppress lawful protest activities are intended to send a strong message that in the American police state, you’re either a patriot who marches in lockstep with the government’s dictates or you’re a pariah, a suspect, a criminal, a troublemaker, a terrorist, a radical, a revolutionary.

    Yet by muzzling the citizenry, by removing the constitutional steam valves that allow people to speak their minds, air their grievances and contribute to a larger dialogue that hopefully results in a more just world, the government is deliberately stirring the pot, creating a climate in which violence becomes inevitable.

    When there is no steam valve—when there is no one to hear what the people have to say, because government representatives have removed themselves so far from their constituents—then frustration builds, anger grows and people become more volatile and desperate to force a conversation.

    Then again, perhaps that was the government’s plan all along.

    As John F. Kennedy warned in March 1962, “Those who make peaceful revolution impossible will make violent revolution inevitable.”

    The government is making violent revolution inevitable.

    How do you lock down a nation?

    You sow discontent and fear among the populace.

    You teach them to be non-thinkers who passively accept whatever is told them, whether it’s delivered by way of the corporate media or a government handler.

    You brainwash them into believing that everything the government does is for their good and anyone who opposes the government is an enemy.

    You acclimate them to a state of martial law, carried out by soldiers disguised as police officers but bearing the weapons of war.

    You polarize them so that they can never unite and stand united against the government.

    You create a climate in which silence is golden and those who speak up are shouted down.

    You spread propaganda and lies.

    You package the police state in the rhetoric of politicians.

    And then, when and if the people finally wake up to the fact that the government is not and has never been their friend, when it’s too late for peaceful protests and violence is all that remains to them as a recourse against tyranny, you use all of the tools you’ve been so carefully amassing—the militarized police, the criminal databases and surveillance and identification systems and private prisons and protest laws—and you shut them down for good.

    Divide and conquer.

    It’s one of the oldest military strategies in the books, and it’s proven to be the police state’s most effective weapon for maintaining the status quo.

    How do you conquer a nation?

    Distract the populace with screen devices, with sports, entertainment spectacles, political circuses and materialism.

    Keep them focused on their differences—economic, religious, environmental, political, racial—so they can never agree on anything.

    And then, when they’re so divided that they are incapable of joining forces against a common threat, start picking them off one by one.

    As I make clear in my book Battlefield America: The War on the American People, what we’re witnessing is just the latest incarnation of the government’s battle plan for stamping out any sparks of resistance and keeping the populace under control: censorship, surveillance, battlefield tactics, military weaponry, and a complete suspension of the Constitution.

  • Scientists Warn World Facing Major Famine, Could "Lead To Severe Shocks To Global Food System"

    Researchers from Washington State University have published a new report of the Great Drought, the most destructive known drought of the past 800 years – and how it sparked the Global Famine that claimed the lives of 50 million people. The scientists warn that the Earth’s current warming climate could spark a similar drought, but even worse. 

    One of the lead researchers, Deepti Singh, a professor in WSU’s School of the Environment, used rainfall records and climate reconstruction models to characterize the environmental conditions leading up to the Great Drought, a period in the mid-1870s known for widespread crop failures across Asia, Brazil, and Africa. The drought was connected to the most extreme manifestation of the El Nino supercycle ever recorded. 

    “Climate conditions that caused the Great Drought and Global Famine arose from natural variability. And their recurrence — with hydrological impacts intensified by global warming — could again potentially undermine global food safety,” lead author Singh and her colleagues wrote in the Journal of Climate, published online Oct. 04. 

    The release of the study came days before the UN Intergovernmental Panel on Climate Change (IPCC) warned that global warming could cause intense droughts, floods, extreme heat and poverty for hundreds of millions of people.  

    WSU says Global Famine was among the worst humanitarian disasters in modern time, comparable to the influenza epidemic of 1918-1919, World War I and World War II. As an environmental disaster, it was the worst. 

    “In a very real sense, the El Nino and climate events of 1876-78 helped create the global inequalities that would later be characterized as ‘first’ and ‘third worlds’,” writes Singh, who was influenced by “Late Victorian Holocausts: El Nino Famines and the Making of the Third World,” which detailed the social impact of the Great Drought and additional droughts in 1896-1897 and 1899-1902.

    Singh’s report is the first global-scale analysis of climatic conditions for the 1870s. There are no other in-depth studies that characterize the dynamics of what led up to the Great Drought. 

    “This is the first time that somebody is taking multiple sources of data — like rain gauges and tree-ring drought atlases that let us go back 500 and 800 years (respectively) — as well as multiple datasets of past climatic conditions, to quantify the severity of this event and the severity of the conditions that led to it,” Singh said. 

    “The length and severity of the droughts promoted the Global Famine, aided in no small part by one of the strongest known El Ninos, the irregular but recurring periods of warm water in the tropical Pacific Ocean. That triggered the warmest known temperatures in the North Atlantic Ocean and the strongest known Indian Ocean dipole — an extreme temp difference between warm waters in the west and cool waters in the east. These, in turn, triggered one of the worst droughts across Brazil and Australia,” said WSU. 

    Singh said natural variations in sea-surface temps induced the drought, a similar weather event could occur today, but a lot worse. With rising greenhouse gases and global warming, the researcher said El Nino events could become intensified in the future, in which case, “such widespread droughts could become even more severe.” 

    Singh warns that “such extreme events would still lead to severe shocks to the global food system with local food insecurity in vulnerable countries potentially amplified by today’s highly connected global food network.” 

    While the WSU scientists, UN, and IPCC warn of impending climate danger, President Trump on Sunday told CBS’ 60 Minutes in an interview that climate change scientists have a “political agenda” as he casts doubt on whether humans were responsible for Earth’s rising temps. 

    Trump suggested that climate change might not be caused by humans, and added that he did not want to take action that could cripple the American economy. 

    “I think something’s happening. Something’s changing and it’ll change back again,” said Trump. “I don’t think it’s a hoax. I think there’s probably a difference. But I don’t know that it’s manmade. I will say this: I don’t want to give trillions and trillions of dollars. I don’t want to lose millions and millions of jobs.” 

    While WSU scientists, IPCC, and now President Trump have all stated that global temperatures are, in fact, rising, it seems that all parties are at disagreement to what is actually causing the anomaly. One thing, however, is likely: a sharp increase in temperatures, for whatever reason, could trigger the next big El Nino supercycle that would devastate global food supply chains and trigger another famine, a contingency for which the world is not prepared. 

  • Paul Craig Roberts Fears "Western Civilization No Longer Exists"

    Authored by Paul Craig Roberts,

    Societal Collapse awaits in the wings if climate change and nuclear war don’t finish us off first…

    The Cheney-Bush and Obama regimes destroyed due process, with the result that American citizens were detained in prison indefinitely without evidence and murdered without evidence or trial. In violation of US and international laws, the US government used torture to produce “terrorists,” who were not terrorists, in order to justify Washington’s wars, wars that have nothing whatsoever to do with “fighting terrorism.”

    The Democratic Party’s Identity Politics’ successful demonization of white heterosexual males has made American universities unsafe for white heterosexual males. Any woman can accuse them of rape, and despite the absence of any evidence, and even in the face of complete evidence to the contrary, the university, in total violation of all known rules of due process, can convict the accused—indeed, conviction on accusation alone is mandatory in American universities—and destroy the reputation of the accused along with his ability to continue his education.

    In the article below federal courts confronted with these mandatory university convictions of white males have overturned them, ruling against the universities’ violations of due process. The corrupt university administrations are serving Identity Politics, not justice.

    A Terrible College Case Shows The High Cost of ‘Believe Women’ 

    UC Santa Barbara Case Demonstrates Why…

    Authored by DAVID FRENCH via The National Review

    There is no substitute for evidence and due process

    Through much of the last month, the American people have been treated to a version of the emotional and ideological argument that’s dominated the American academy for much of the last ten years. The argument goes something like this: Women rarely lie about rape. Thus, the failure of criminal or civil justice systems to achieve overwhelming rates of conviction or impose liability at the rates of predation means that fundamental reform is mandatory.

    Consequently, we must make it easier for women to bring claims, protect them from the rigors of proving claims, and utilize decision-makers trained to understand and respond to the unique trauma of victims. Moreover, when considering sexual-assault claims outside of courts, understand that due process is less important when a man’s liberty isn’t at stake. After all, a campus court isn’t a criminal trial. It’s an evaluation of academic suitability.

    The result of this argument has been wholesale national “reform” — part of it mandated by the Obama administration’s Department of Education, and part of it willingly undertaken by colleges themselves — that has caused universities to lower burdens of proof, channel serious claims into summary proceedings, restrict the ability to cross-examine witnesses, and even limit access to evidence in an effort to streamline the process of punishing sex offenders.

    It’s been a disaster.

    From coast to coast, accused students — typically men punished for sexual assault with barely a chance to defend themselves — are filing lawsuits containing often-shocking claims. Judges, accustomed to the value of due process, often find themselves stunned at the unfairness of campus proceedings. And if you think that wrongful convictions for sexual assault aren’t serious because the men don’t go to prison, well then talk to the young men whose careers and reputations are shattered before they’ve had a chance to build a life.

    In the days after the Brett Kavanaugh confirmation, when the op-ed pages were still filled with examples of women’s rage, a California state court of appeals handed down a decision in a case against the University of California–Santa Barbara that should remind us all of the high costs of a rush to judgment.

    It should remind us all of the value of due process.

    The facts of the case are relatively simple. After a night of drinking, a female student (“Jane Roe”) fell asleep on a mattress that was pressed up against a living room wall. Later that evening, a male student (“John Doe”) became intoxicated and lay down on the same mattress. She was under the covers. He was fully clothed on top of the covers, with his back to Jane. There were two eyewitnesses sitting on a couch, talking less than three feet away.

    Jane testified that she woke up to discover that John was molesting her. She was too terrified at first to cry out and then finally, when the assault ended, screamed for everyone to get out of the apartment. John denied the claims and instead claimed that he first heard Jane’s story when “she woke [him] up by basically yelling about someone hurting her.”

    The two eyewitnesses testified that it would be “physically impossible” and “not physically possible” for Jane’s claims to be correct. They saw Jane wake up “confused, disoriented, and mumbling in foreign languages.” They thought she was having a bad dream.

    Jane reported the alleged assault to police, and two days later submitted to an exam by the city’s Sexual Assault Response Team. The police did not take any action against John. The university, however, did. After a hearing, it sentenced him to a two-year (eight-quarter) suspension.

    The university hearing was a carnival funhouse of due-process violations. First, the university allowed a detective to testify about a report that allegedly indicated that “bruising/laceration [was] noted in the anal area” without producing the actual report. The parts of the report the university did produce did not contain any such language. Moreover, the detective couldn’t say whether the finding could have any other cause. Testifying about a report the accused wasn’t able to see violates the “best evidence rule” — an evidentiary standard that “precludes oral testimony to prove the content of a writing.”

    That’s basic stuff, yet it was only the beginning of the university’s problems.
    Next, the university only disclosed to John the day before the hearing the fact that Jane was taking an antidepressant called Viibryd. When John tried to ask Jane about the consequences of mixing Viibryd and alcohol, she declined to answer the question. When John tried to introduce evidence that Viibryd “has many side-effects” that “become severe when alcohol is consumed . . . such as hallucinations and sleep paralysis and night terrors” the university declined to consider it. The reason? He couldn’t produce a qualified expert.

    As the court of appeals noted, this “placed John in a catch-22; he learned the name of the medication Jane was taking too late to allow him to obtain an expert opinion, but the Committee precluded John from offering evidence of the side effects of Viibryd without an expert.”

    And that’s not all. John was forced to represent himself. His lawyer could only advise and support, but the university allowed its general counsel to “actively participate and to make formal evidentiary objections.” As a consequence, “A student, whose counsel cannot actively participate, is set up for failure because he or she lacks the legal training and experience to respond effectively to formal evidentiary objections.”

    So, let’s review — the university violated a basic rule of evidence, withheld key information from John until the day before the hearing, refused to let him question the accuser about that information, and then allowed its lawyer to render objections to John’s case. The court’s conclusion was stinging: “It is ironic,” said the court “that an institution of higher learning, where American history and government are taught, should stray so far from the principles that underlie our democracy.”

    In other words, the university stacked the deck. It biased the proceedings against John, and in so doing violated his fundamental constitutional rights. Note that the court did not excuse these violations because it was ruling on a mere academic hearing. Bad processes hurt people, even when those bad processes don’t result in prison.

    I’m singling out the UCSB case simply because it is so recent. It’s but one example among many. In fact, two weeks before the California court handed down its opinion, the Seventh Circuit Court of Appeals heard arguments in a case that Brooklyn College professor K. C. Johnson — perhaps the nation’s foremost expert on Title IX adjudications — called “unusually troubling, even in the Title IX realm.”

    • The guilty finding led to a loss of the accused student’s ROTC scholarship and Navy career, after a process in which the accuser neither appeared at the hearing to speak and answer questions, but didn’t even submit a statement to the hearing. (The evidence in the case was a Title IX investigator’s report and a statement written on the accuser’s behalf by a university counselor.) The complaint alleged that the accused student had no chance to present exculpatory witnesses, including a roommate who said that the alleged assault never occurred.

    • As Judge [Amy Coney] Barrett noted, “It was a credibility contest in which you not only did not hear directly from [the accuser], you didn’t even read words that she had written.”

    I wonder if that student is consoled that its “only” his Navy career at stake. The goal of any adjudication is justice, and centuries of experience have taught us that justice is elusive when due process is denied. We cannot have our culture believe that the way of the university is the way forward for our nation. The guiding principles should be clear. Respect women and hear their claims. But “believe women”? No, believe evidence, and give every accused a fair opportunity to defend his liberty, his education, and his career.

    Just imagine that if the Democrats, who in their glory represented the working class, were to achieve political power and appoint federal judges. No white heterosexual male would be safe. Under the Democrats’ Identity Politics, white heterosexual males are automatically guilty. Due process is not needed. By definition, white heterosexual males are racists, misogynists, and rapists. No evidence is needed.

    I am waiting for the case when a white university female brings a rape case against a black university male. It will be interesting to see how the university chooses which side to take. In such a case we have two victims of “white male supremacy.” Which victim will prevail against the other victim. Will the university come down on the side of the protected black or on the side of the protected female? Or will the university decide that the rape was actually done by a white male pretending to be a black.

    This question illustrates the complete breakdown of American society.

    Most likely this deplorable situation is the case throughout the Western World. Society is so divided that there is no society there. And the idiot Russians want to join us!

    To be truthful, there is nothing left of Western civilization, and the fault is not Russia’s, China’s, Iran’s, or Venezuela’s. It is our own.

    We are an insouciant people, unconcerned, ignorant, worried only about unimportant things, kept ignorant and confused by a media that serves only the One Percent.

    The American people, indeed the people of the West, have no awareness that they are headed into total destruction, if not by climate change, if not by nuclear war, then by societal collapse.

  • "Dead" Ukrainian Fugitive Found Living Like A King In Actual French Castle

    A “high-profile” Ukrainian fugitive who faked his own death was discovered hiding out in a 12th-century French feudal castle known as Château de La Rochepot, living like a king, according to Bloomberg. The man allegedly forged death certificates to evade authorities following an anti-corruption crackdown in which he stands accused of stealing 12 million euros from a private company between March to May of 2015. 

    The fugitive, identified only as the “King of the Castle” by the European Union’s law-enforcement agency Europol, was detained on Oct. 5 near Dijon, according to a Tuesday statement. Officers recovered 4.6 million euros ($5.3 million) of property, including a 12th-century feudal castle, a vintage Rolls Royce Phantom, jewelry and three works of art by Salvador Dali. In parallel, the spokeswoman of Ukraine’s prosecutor general said the country will seek to extradite Dmytro Malynovskyi from France. –Bloomberg

    According to Europol, “The suspect is thought to be behind a complex case of international fraud and money laundering.” 

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    Malynovskyi was found after French police launched a January investigation over alleged suspicious transactions related to the purchase of the castle for 3 million euros by a Luxembourg shell company “whose ultimate beneficial owner was a Ukrainian citizen suspected of corruption at a large scale in his country.” 

    In other news, you can buy a giant French castle for a 3 million Euros ($3.4 million USD) – about the same price as a 1,400 sqft house in Palo Alto, CA. 

    vs.

    The “King of the Castle” was arrested with three accomplices, according to Europol – which coordinated with French, Ukrainian and Luxembourg authorities to determine that Malynovskyi used false death certificates, and “was not only alive, but was enjoying a lavish lifestyle in France.”

    The arrests highlight how graft remains a key political issue for Ukraine even after a 2014 revolution toppled then-President Viktor Yanukovych and exposed massive government corruption and bribery. The International Monetary Fund made the creation of an anti-corruption court a condition of unlocking its $17.5 billion bailout. Non-residents based in Ukraine were among customers implicated in about 200 billion euros that flowed through the Estonian unit of Danske Bank A/S between 2007 and 2015, much of which the lender regarded as suspicious. –Bloomberg

    In a Tuesday Facebook post, Ukraine’s prosecutor general said it had prepared documents to seek the extradition of Malynovskyi. 

    “The ‘resurrected’ citizen forged his death certificate and is now using a forged passport of a foreign country,” said spokeswoman Larysa Sargan. 

    A Dijon investigative magistrate leading the case charged two men of dual Ukrainian and Moldavian nationality and subsequently placed them in pretrial detention, the gendarmerie said in its separate statement. Two women, also dual nationals from the same countries, were charged and then released. –Bloomberg

    Swiss Authorities separately froze $2 million in accounts belonging to Sergey Kurchenko, an ally of Kanukovych, at the request of Ukrainian law enforcement. 

  • What's Going On In Idlib, Syria's Demilitarized Zone?

    Authored by Stephen Lendman,

    In mid-September, Putin and Turkey’s Erdogan agreed on establishing a 15 – 20 km-wide demilitarized zone in Idlib province along the Turkish border.

    Russian and Turkish forces will control the zone, an offensive to liberate Idlib put on hold at least until later this year, maybe not until 2019.

    Full withdrawal of US-supported terrorists was to be completed by October 15, the deadline missed because al-Nusra and allied jihadists refuse to disarm and leave – likely at the behest of Washington, their paymaster.

    According to AMN News, Syria’s military “demand(s) answers regarding the(ir) failed…withdrawal from the designated buffer zone,” adding:

    “(T)he Syrian Arab Army’s High Command is in talks with the Russian military about the next steps to take in the Idlib, Aleppo, Latakia, and Hama provinces” in response to noncompliance with the buffer zone agreement – by US-supported terrorists.

    A Syrian military source said jihadists in Idlib continue attacking government forces and civilians, explaining:

    They’re “strengthening their positions, digging new trenches and expanding their network of underground tunnels,” digging in for continued battle.

    Al-Nusra, its affiliate Guardians of Religion Organization, and the Turkistan Islamic Party of Syria intend remaining in their positions, including strategic high ground and nearby areas held, using them as platforms for continued shelling.

    Idlib is the last major stronghold of US-supported terrorists in Syria, controlled by tens of thousands of jihadists.

    On Monday, Syrian Foreign Minister Walid al-Moallem said Idlib’s demilitarized zone agreement is untenable if al-Nusra and other jihadists fail to comply, saying:

    “We cannot keep quiet about the continuation of the current situation in Idlib if the Nusra Front refuses to comply with this agreement,” adding:

    “After liberating territory east of the Euphrates River, freeing Idlib from terrorists’ control is the next objective, stressing the province will be returned to Syrian sovereignty.

    If the Russian/Turkish demilitarized zone isn’t implemented, Damascus will take other options to eliminate al-Nusra and other terrorists in Idlib, he said.

    “Because (millions of) Syrian citizens in Idlib, and it is not their fault, we said that the liberation of Idlib with reconciliation is much better than the bloodshed. Syria’s support for the (Moscow/Ankara) Sochi agreement came from its desire not to shed blood,” al-Moallem explained.

    Commenting on US occupied territory in the country, he stressed the importance of liberating it from their presence, returning the entire nation to Syrian control.

    “(W)e still consider Turkey a state that is occupying our territories. Therefore, our armed forces cannot participate with their forces in any operation east of the Euphrates,” he stressed.

    Head of Russia’s reconciliation center in Syria Vladimir Savchenko blamed the Trump regime for the failure of al-Nusra and other jihadists to withdraw from Idlib’s demilitarized zone, saying:

    Because of US “inaction,” they “establish(ed) control over a 20-kilometer strip on the Euphrates’ east bank between the settlements of Hajin and al-Susa,” adding:

    US forces continue “simulat(ing)” fighting against ISIS terrorists they support. Days earlier, their fighters abducted 700 civilians during an attack on a refugee camp near al-Bahrah, holding them hostage as human shields.

    On Tuesday, Iraqi General Dia al-Wakil blasted Washington, saying its so-called coalition supports the scourge of ISIS it pretends to oppose.

    “I do not believe that the (US-led) international coalition wants to bring an end to terrorism in the region,” he said, adding:

    “Under the cover of the ‘fight against terrorism,’ US forces can remain and strengthen here. Behind this are economic goals. Americans need oil and arms sales contracts.”

    ISIS and other terrorists are deployed where the US wants them used. Their fighters are “simply transferred to a given point” from another, including from one country to another.

    “We have already seen how terrorists moved throughout the region before the international coalition’s very eyes,” transported by Pentagon helicopters. It happens repeatedly.

    ISIS “has not been destroyed, but will still be used in political struggles, especially amid instability in the Middle East.” The same goes for al-Qaeda, its al-Nusra offshoot, and other terrorist groups.

    Separately, Iranian Foreign Ministry official Jaberi Ansari said a massacre in Idlib by al-Nusra and/or other terrorists is Tehran’s red line.

    It would have “grave humanitarian and moral, as well as political costs, which is unacceptable,” he said – no further elaboration added on how Iran might respond.

  • Leaked Files Confirm Julian Assange Plan To Move To Moscow

    A month after the Associated Press published internal WikiLeaks files which suggested the transparency organization’s founder Julian Assange had since 2010 contemplated moving to Russia — outside the reach of US and UK authorities newly released Ecuadorean government documents have revealed a more elaborate plan to escape to Moscow by using Ecuadorean diplomatic cover

    The documents show that the plan was being pursued as recently as 2017, and involved Assange being transferred from his Ecuadorean embassy hideout — where he’s been stuck for the last six years via a politically sensitive process whereby Ecuador would name him as a political counselor to the country’s embassy in Moscow

    Image via Ars Technica/Reuters

    Should the plan have succeeded, Assange could have possibly freely exited the UK for Russia as an official diplomat for Ecuador with all the legal protections afforded such status. However, British authorities vetoed his diplomatic status and refused to recognize such a designation, which ultimately blocked the plan from coming to fruition. 

    According to the AP, which has linked to the 167 pages of Spanish language secret internal government documents, Assange was actually for a brief period made “political counselor” to the Ecuadorean Embassy in Moscow

    The files were made public late Tuesday by Ecuadorean opposition lawmaker Paola Vintimilla, who opposes her government’s decision to grant Assange nationality. They largely corroborate a recent Guardian newspaper report that Ecuador attempted the elaborate maneuver to get Assange to Moscow just before Christmas last year.

    Russian diplomats called the Guardian’s story “fake news,” but the government files show Assange briefly was made “political counselor” to the Ecuadorean Embassy in Moscow and eligible for a monthly salary pegged at $2,000.

    It appears the leaks are part of an organized opposition plan to quash any possible future escape or transfer attempts before they materialize.

    The files show Ecuador went so far as to apply for Assange’s diplomatic ID card something which the British vetoed. One letter dated December 21, 2017 released as part of the leaked trove on Tuesday shows Britain’s Foreign Office said U.K. officials “do not consider Mr. Julian Assange to be an acceptable member of the mission.”

    And subsequent to this, the AP reports, an eight-page memo to parliamentarian Paolo Vintimilla said that Assange’s position as counselor was revoked a few days later. The memo had further summarized the entirety of the plan to allow Assange to escape UK soil under cover of diplomatic protection. 

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    Thus far neither the British Foreign Office nor the Russian Embassy in London have issued comment. A number of political leaders and media pundits in the West have long accused Assange and WikiLeaks of being an arm of Russian intelligence, and they’ll most certainly seize upon these new files to continue such allegations; however, with Assange’s physical and also possibly mental health reportedly deteriorating after six years of confinement within the small embassy space, it makes perfect sense that he would attempt any way out possible  while further seeking the protections of any sympathetic government. 

    In 2013 Edward Snowden fled to Moscow after going public with thousands of classified NSA files from Hong Kong which revealed an extensive illegal domestic spying network by the United States government. Snowden has been granted a permit by the Russian government to stay until at least 2020, and he’s reportedly residing at an undisclosed location in or around Moscow. 

    It appears Assange too was hoping to make it to Russian soil under Ecuadorean cover where he also might have eventually been granted such a deal. 

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Today’s News 17th October 2018

  • Global Beer Supply In Jeopardy "Due to Extreme Drought And Heat," Study Warns 

    Beer is the most popular alcoholic beverage in the world by volume consumed, and yields of its main ingredient: barley, decrease sharply in the event of extreme weather 

    A team of agricultural specialists and climate economists published a new study Monday in the Journal of Nature Plants, found the connection between extreme weather conditions, such as drought or heat, and the global consumption of beer. 

    Fig.2 | Average barley yield shocks during extreme event years 

    Researchers from the University of East Anglia warned that global beer supply could be in jeopardy due to extreme weather conditions affecting the production of barley — the main ingredient in beer. 

    Their computer models found barley yields could plunge 3% to 17% across the world by the end of the century, which would trigger a 16% decline in global beer consumption and cause beer prices to inflate massively. 

    The report shows that the consumption of barley, by country, is used primarily for animal feed, with only 17% of the crop used for brewing. 

    Fig.3 | Barley consumption by country and globally under future climate change 

    Researchers said that declining yields could have a disproportionate impact on beer production, making a cheap cold beer unaffordable for the working class. 

    “We made the assumption that farmers may be able to adapt to gradual changes, but it may be harder to adapt to more extreme events,” said Steven Davis, the study’s lead author, who studies environmental impacts of global trade at the University of Calfornia, Irvine. 

    To model extreme events, the team identified droughts and heat waves that might co-occur during growing seasons.

    “The aim of the study is not to encourage people to drink more today,” Dabo Guan, a co-author of the study and professor of climate change economics at the University of East Anglia, told CNN. Instead, the team wanted to show how volatile weather patterns could impact the quality of life for the working class. 

    In the event of a substantial barley crop failure, computer models show beer prices could double worldwide, and the US would see a 20% collapse in beer consumption — that would be equivalent to approximately 10 billion cans of beer. Places like Ireland could fair worse; beer price inflation would add an extra $21 per six-pack. 

    Fig. 4| Changes in beer consumption and price under increasingly severe drought-heat events 

    “If you don’t want that to happen–if you still want a few pints of beer–then the only way to do it is to mitigate climate change,” said Guan.

    The study’s co-author also said global beer shortage would have the most impact on the working class, thus triggering significant social and political consequences for governments.  

    The Wall Street Journal said brewers and farmers had been geoengineering barley to increase resilience to get ahead of climate changes. 

    “We have seen there are changes that are already happening,” said Jess Newman, director of U.S. Agronomy at AB InBev, which is currently testing new barley strains among its 4,500 farmers. “We are proactively investing in breeding and crop management to make sure our growers can thrive in the new world.” 

    Bart Watson, the chief economist for Brewers Association, told WSJ that such extreme effects were unlikely considering current efforts to protect beer’s ingredients. “Not to underrate the challenges of climate change but we’d anticipate the barley system will continue to evolve and adapt,” he said. 

    The study raises important questions about how the global food supply chain is going to adapt to climate change.

    President Trump on Sunday told CBS’ 60 Minutes in an interview that climate change is ‘not a hoax’ but suggested that humans might not cause it. 

    Trump also said that climate change scientists have a “political agenda,” as the study above is certainly based on fearmongering propaganda towards the working class. Otherwise, why would climate researchers examine beer? Most working class folk wash down their gig-economy woes with a cheap cold beer — what happens if climate change causes price inflation? As explained above, a beer shortage would lead to societal upheavals.

  • Czech Politician: What Multiculturalism Hides

    Authored by Jan Keller (a Czech Social Democrat Member of the European Parliament), via The Gatestone Institute,

    Multiculturalism is not a manifestation of Europe’s generosity, or some noble embodiment of love and truth. Multiculturalism is what remains after mass migration reveals itself as a threat, rather than a benefit, to the economies of European countries.

    Take, for instance, the example of France. After the Second World War, when France underwent a boom of economic growth, waves of migration were viewed favorably: there were many job opportunities for unskilled and medium-skilled laborers, and the native French population aspired to work in the tertiary sector, which offered more qualified, better-paid jobs. From the end of the war until the mid-1970s, foreign workers tended to come to France temporarily, without their families, and return to their countries of origin. These workers were generally recruited from former French colonies to do menial and low-paying jobs — not in order to enrich the culture of the host country.

    At the end of the 1970s, that situation changed. Foreign workers began coming to France with their families and also having children after arriving in the country. At the same time, however, there were changes in the economy that ended up leaving descendants of the recruited workers hopeless. While their parents had experienced some upward mobility, they themselves — even those with a higher level of education than their parents — were left with fewer job opportunities and became a surplus on the labor market; they also did not have another place to go. In other words, they had been born in a country that suddenly had nothing to offer. The only thing that the government could come up with was a rationale for the dire situation — a mission for these children of migrants: that they should enrich themselves culturally in the country to which their parents had migrated. This new policy of multiculturalism, which emphasizes the benefits of cultural diversity for society and the state, is an example of the exploitation of others based on a fantasy of virtue. Those at whom the sweet talk of multiculturalism is aimed, can see that it has done nothing to improve their lot, and are now realizing that their future is bleak.

    Now let us look at those who favor multiculturalism for the Czech Republic, in Eastern Europe, which has been resistant to it. What they do not grasp is that the Czech Republic today does not resemble France in the early part of the 20th century. We Czechs do not need to recruit foreign workers to perform menial jobs. On the contrary, we need to develop an economy based on skilled labor. It also does not make sense for us to seek highly skilled migrants for this purpose. Such migrants prefer countries whose languages they speak and in which they can earn higher wages than those offered in the Czech Republic. Furthermore, given the problematic nature of our current education system, which is unable adequately to prepare graduates for jobs in tech companies, it would be absurd for us to rely on technology experts from developing countries to rescue our economy.

    Some politicians claim that we need a mass wave of immigrants to care for our elderly. This is controversial: in a new country, if they are unskilled, they will barely be able to care for themselves, let alone for others, and will present an additional burden to our already overburdened social security system. If, on the other hand, we bring in highly qualified immigrants to our workforce, we would be taking away from poorer countries the best they have to offer. What right do we have to use them to solve our own problems? If we take them away from their countries of origin, the situation in those countries will further deteriorate. The result will be an even greater flow of unskilled migrants escaping those countries. These new arrivals will create an even greater burden on the social security system than it will incentivize economic development. That consequence is not because migrants are lazier or less ambitious than the local population. Their disadvantages are due to other factors, such as difficulty with a new language and that they tend to have larger families.

    For decades, there has been a debate in Europe between the effort to slim down the welfare state, as opposed to continuing it to meet the needs of various disadvantaged sectors of the population. This debate has intensified sharply as the mass wave of refugees from North Africa and the Middle East has threatened to increase significantly the number of welfare recipients in Europe.

    Under these circumstances, the nature of multiculturalism has changed. It has become a means to exert fierce psychological pressure primarily on the middle- and lower-income sectors in Europe. One form this pressure has taken is the equating of the plight of the current refugees to emigrants escaping to the West from behind the Iron Curtain. The comparison, however, does not really apply. The Eastern European at that time emigrants did not aspire to achieve “multicultural status”. Their goal was to integrate — to adapt to a society that was so generous as to have accepted them.

    In short, mass waves of migrants represent statistically significantly greater risks than opportunities. They do not serve to boost prosperity. Our insurance systems, which were founded by, and developed for, the nation states whose populations they were meant to serve, were simply never designed to cover them.

    The proponents of the new multiculturalism want to share their welfare states with masses of refugees who — through no fault of their own — will be unable to participate in financing themselves for a long time to come.

  • China To Unveil Next-Generation Stealth Bomber In 2019 

    Last week, the Global Times confirmed that the Hong-20, China’s newest long-range stealth bomber was ready for imminent trial flights. 

    Now, it seems Chinese media, as per Defense Blog, has indicated that the stealth bomber will be unveiled during a massive military parade in 2019. 

    Fan art of the PLAAF’s future Hong-20 (Source/ Defense Blog)

    While there is no official statement or confirmation from the Chinese government or military, the unveiling is expected to occurring during a period where JPMorgan expects a full-blown trade war between the US and China. 

    According to fresh reports, China will show the world its new stealth bomber at an air force military parade to mark the 70th anniversary of the founding of the People’s Liberation Army Air Force (PLAAF) in the second half of 2019. 

    The program was confirmed in 2016 when official PLA-affiliated sources announced the developed of the bomber. PLA Air Force General Ma Xiaotian, stated, “our long-range strike capability has much improved compared to the past, and an even bigger improvement is coming. We are developing a new generation of long-range bomber.” 

    Artist’s rendition of the Hong-20 (Source/ Chinese aerospace magazine) 

    Andreas Rupprecht, an aviation journalist at Jamestown Foundation, recently reported that the stealth bomber has been in development since the late 1990s and or early 2000s. 

    Last week, Song Zhongping, a military expert and TV commentator, told the Global Times that trial flights of China’s stealth bomber would be immient. He said disclosing the new plane is a potential deterrence to our enemies. 

    Aviation Industry Corporation revealed a sneak preview of Hong-20 

    “Usually the development of equipment and weaponry of the People’s Liberation Army is highly confidential,” he said, but with the threat of a full-blown trade war in 2019, and a potential flare-up of military conflict in the South China Sea; Beijing is trying to flex its military muscles for the fight ahead. 

    The Global Times quoted air force researcher Fu Qianshao as saying the ultimate goal for the stealth bomber is to boost operational range to 12,000 kilometers with 20-tons of payload.

    Possible sighting of the Hong-20

    Asia Times said the bomber could be the solution for China to fire missiles at American mainland assets. 

    In addition to this, the outline of an unknown stealth aircraft was spotted earlier this month on a large banner at a celebration for China’s strategic bomber division; military observers speculate it could be the new bomber. The party was held on Oct. 07 at an unspecified strategic bomber division facility under the PLA Eastern Theater Command. 

    Mysterious stealth bomber outline on a banner at PLA military dinner 

    The frontal view of the aircraft was shown at the party but did not match China’s known stealth bomber because of its angled winglets on the ends of its wings; also there was no visible tail. 

    This is not the first time an aircraft rumored to be the mysterious stealth bomber has made a public appearance. 

    In May, we reported that Aviation Industry Corporation of China, one of China’s most significant aerospace and defense companies (ranked 159th in the Fortune Global 500 lists), released a five-minute video commemorating the 60th anniversary of its subsidiary the Xi-an Aircraft Industrial Corporation. In the last 10-seconds of the footage, a sneak peek into one of the most secretive aerospace projects to date — the development of the next-generation stealth bomber. 

    Looks like US war planners will have to factor in China’s next-generation stealth bomber into the fight, as the threat of trade war could send both countries into a potential hot conflict. 

     

  • Pepe Escobar: Welcome To The G-20 From Hell

    Authored by Pepe Escobar via The Asia Times,

    World leaders wrestle with a maelstrom of complex, burning issues as they prepare for November 30 summit…

    The G-20 in Buenos Aires on November 30 could set the world on fire – perhaps literally. Let’s start with the US-China trade war. Washington won’t even start discussing trade with China at the G-20 unless Beijing comes up with a quite detailed list of potential concessions.

    The word from Chinese negotiators is not at all bleak. Some sort of agreement could be reached on about a third of US demands. Debate on another third could ensue. But the last third is absolutely off-limits – due to Chinese national security imperatives, such as refusing to allow the opening of the domestic cloud computing market to foreign competition.

    Beijing has appointed Vice-Premier Liu He and Vice-President Wang Qishan to supervise all negotiations with Washington. They face an uphill task: to pierce through President Donald Trump’s limited attention span.

    On top of it, Beijing demands a “point person” with the authority to negotiate on behalf of Trump – considering the mixed-message traffic jam out of Washington.

    Now compare this with the message coming from the research institute fabulously named Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era under the Party School of the Central Committee of the Communist Party of China (CPC): the US has started the “trade friction” essentially “to hinder China’s industrial upgrading.”

    That’s the consensus at the top.

    And the clash is bound to get worse. Vice President Mike Pence accused China of “meddling in American democracy,” “debt diplomacy,” “currency manipulation,” and “IP theft.” The Foreign Ministry in Beijing dismissed it all as “ridiculous.”

    It’s enlightening to pay close attention to what Foreign Minister Wang Yi told the Council on Foreign Relations – as diplomatically as possible: “China will follow a path of development different from historical powers.” And China will not seek hegemony.

    From the point of view of the US National Security Strategy, that’s irrelevant; China has been framed as a fierce competitor and even a threat. President Xi Jinping will not cave in to Washington’s trade demands. So expect a possible non-meeting between Xi and Trump in Buenos Aires.

    The threat of a nuclear first strike

    Things look even hairier on the Russian front. For all of Foreign Minister Sergey Lavrov’s Taoist patience, Moscow’s diplomatic circles are exasperated by serious American threats – as in the US Navy possibly enforcing a blockade to restrict Russia’s energy trade. Or worse: the ultimatum that Russia must stop developing a missile that according to Washington violates the Intermediate-Range Nuclear Forces (INF) Treaty, otherwise the Pentagon will destroy it.

    This is as serious as it gets – because it amounts to committing to a US nuclear first strike.

    In parallel, BP CEO Bob Dudley told the Oil & Money conference in London that any additional US sanctions against top Russian energy companies would be disastrous. “If sanctions were put on Rosneft or Gazprom or Lukoil like what happened with Rusal, you would virtually shut down the energy systems of Europe, it is a bit of an extreme thing to happen,” he said.

    On the BRICS front, Russia and India deftly maneuvered on their own and managed to squash some US geostrategic planning against the three major poles of Eurasia integration: Russia, China and Iran.

    The Quad – US, Japan, Australia, India – was conceived to box in China across the Indo-Pacific, in parallel to confining Russia’s margin of maneuver. The Quad is not exactly in sterling form after India decided to buy Russian S-400 missile systems. Trump has promised revenge.

    On top of the S-400 deal, Russian companies will be building six additional nuclear reactors in India, at a cost of $20 billion each, over the next decade. Rosneft signed a 10-year deal to sell India 10 million tons of oil a year. And India will continue to buy oil from Iran, paying for it in rupees.

    On the EU front, it’s all about Germany. There are few illusions in Berlin about the EU’s wobbly future. The export-centered German economy is focused on Asia. Germany is doubling down on solidifying an Asian-style model – a few large companies that are national champions able to turbo-charge exports. The US market – under protectionist winds – now is just an afterthought.

    Toxic tropics

    Then there’s the Brazilian tragedy. President Mauricio Macri ruined Argentina with a neoliberal shock. The nation is now a hostage of the IMF.

    A possible scenario is a G-20 in which Argentina will be learning how to deal with a fascist leading its close neighbor and top trade partner, Brazil.

    Former paratrooper Jair Bolsonaro may be xenophobic and mysoginistic, but is certainly not a nationalist. The self-billed tropical “Messiah” routinely salutes the US flag. His economic hit man is a Chicago Boy bent on selling the country out – much to the delight of “investors” and “market” experts from New York and Zurich to Rio and Sao Paulo.

    Forget about creating jobs or even attempting to solve Brazil’s immense social problems: acute social inequality, pressing investments in health and education, urban insecurity. Bolsonaro’s only “policy” is to weaponize the population in a Mad Max remix.

    Everything under Bolsonaro should proceed under the unmitigated reign of a Hobbesian “free” market. Forget about any possibility of a moderating state intervention in the complex relations between Capital and Labor.

    This is the apex of a complex process unleashed years ago in Brazil via think tanks such as the Atlas Network, loads of money and, last but not least, an evangelical/neo-pentecostal tsunami.

    The pillars of the Brazilian carnage are powerful agro-business and mineral exploitation interests, toxic Brazilian mainstream media, evangelicals, a financial sector totally subservient to Wall Street, the weapons industry, the completely politicized judiciary, the police, intel services, and the armed forces.

    And the stars of the show are of course the Beef-Bible-Bullet combo – with their scores of Congress members – overseen by the Goddess of the Market.

    Neoliberalism never wins elections in Brazil. So the only way to implement “reforms” is via a sub-Pinochet. Expect widespread social-environmental havoc, indiscriminate killing of rural and native Brazilian leaders, an unmitigated bonanza for the weapons industry, banks celebrating Christmas every week, abysmal cultural repression, total denationalization of the economy, and workers and pensioners paying for all these “reforms.” Call it business as usual.

    Bolsonaro’s fascist tendencies were normalized not only by the powers that be in Brazil. Argentina’s Foreign Minister Jorge Faurie qualified him as a “center-right” politician.

    Beijing and Moscow – for BRICS reasons – and the EU in Brussels are appalled by Brazil’s descent into the maelstrom. Russia and China were counting on a strong Brazil contributing to a multipolar world as during the time of Lula, who was a major BRICS driving force.

    For the EU, it is hard to stomach a fascist leading their top trading partner in Latin America, and the heart of Mercosur. For the Global South as a whole, the implosion of Brazil, one of its leaders, is an unmitigated tragedy.

    Now picture Washington as a raging compendium of threats and sanctions. An EU fractured to the hilt – denouncing Asian illiberalism while impotent to fight the “rise of the deplorables” at home. BRICS in disarray, with two in a serious clash with Washington, one out of the game and one on the fence – among the top four. The House of Saud rotting from the inside. Iran not even at the G-20 table.

    Time to sing What a Wonderful World.

  • The Staggering Numbers Behind America's Opioid Epidemic

    Drug overdoses are the leading cause of death for Americans under the age of 50, who are now more likely to die from a drug overdose than from car accidents or firearms. The United States has the dubious distinction of having the highest percentage of drug-related deaths in the world.

    However, while opioid abuse is a nationwide problem, Visual Capitalist’s Nick Routley notes that there are specific areas that are being hit harder by this epidemic. Using the location data above, from NORC at the University of Chicago, we can see clusters of counties that have an extremely high rate of overdose deaths. Between 2012 and 2016, West Virginia, Kentucky, and Ohio saw a combined 18,000 deaths related to opioid abuse.

    Courtesy of: Visual Capitalist

    A sharp increase in prescribed opioid-based painkillers and the rise of illegal fentanyl – which is up to 50 times stronger than heroin – has unleashed the worst public health crisis in American history.

    It’s a problem that can be tough to understand, but by delving into the data, some key observations emerge.

    DOCTORS PRESCRIBED A LOT OF PAIN KILLERS

    Beginning in the 1980s, prescription opioids like oxycodone and hydrocodone were heavily marketed as a treatment for pain, and at the time, the risk of addiction to these substances was downplayed. Opioid prescriptions nearly tripled between 1991 and 2011.

    Sales of these powerful painkillers are beginning to drop, in part because the risk of addiction has now been widely publicized. Another decelerating factor is the crackdown on clinics and pharmacies that were over-dispensing painkillers, in some cases directly feeding the elicit drug market.

    In 2015, nearly 100 million Americans were prescribed painkillers by their doctor. A recent survey showed one-third of people who abused prescription painkillers in the past year got pills directly from a physician.

    This abundance of pills impacts the community at large when excess pills are sold, stolen, or simply given to others. In fact, receiving painkillers from a friend or family member was the most common gateway to abusing opioids.

    FENTANYL IS KILLING A LOT OF PEOPLE

    If doctors have been prescribing opioids for decades, what is causing this recent spike in overdoses? The answer, for the most part, is fentanyl.

    This synthetic opioid presents a problem because it’s extremely potent – it only takes about 2 milligrams to overdose on the drug. Since much of the fentanyl on the market is sourced illegally, doses can and do exceed this amount on a regular basis.

    As a result, overdose deaths related to opioids have skyrocketed in recent years:

    OVERDOSES ARE THE TIP OF THE ICEBERG

    The thousands of overdose deaths around the country are the most extreme symptom of the opioid epidemic, but the problem runs much deeper.

    In 2017, there were over 11 million “opioid misusers” in the United States. To put that number in perspective, that’s equivalent to the entire population of Ohio. In fact, the problem is so widespread, that it’s suspected to be influencing workforce participation rates.

    The health care burden of the crisis is also staggering. The cost of opioid abuse ranges from $10,000 to $20,000 in annual medical costs per patient.

    The hard truth is that, unless bold action is taken, the opioid epidemic is projected to claim nearly 500,000 lives over the next decade.

  • Syria's Chessboard

    Authored by Conn Hallinan via Counterpunch.org,

    The Syrian civil war has always been devilishly complex, with multiple actors following different scripts, but in the past few months it appeared to be winding down. The Damascus government now controls 60 percent of the country and the major population centers, the Islamic State has been routed, and the rebels opposed to Syrian President Bashar al-Assad are largely cornered in Idilb Province in the country’s northwest. But suddenly the Americans moved the goal posts – maybe – the Russians have fallen out with the Israelis, the Iranians are digging in their heels, and the Turks are trying to multi-task with a home front in disarray.

    So the devil is still very much at work in a war that has lasted more than seven years, claimed up to 500,000 lives, displaced millions of people, destabilized an already fragile Middle East, and is far from over.

    There are at least three theaters in the Syrian war, each with its own complexities: Idilb in the north, the territory east of the Euphrates River, and the region that abuts the southern section of the Golan Heights. Just sorting out the antagonists is daunting. Turks, Iranians, Americans and Kurds are the key actors in the east. Russians, Turks, Kurds and Assad are in a temporary standoff in the north. And Iran, Assad and Israel are in a faceoff near Golan, a conflict that has suddenly drawn in Moscow.

    Assad’s goals are straightforward: reunite the country under the rule of Damascus and begin re-building Syria’s shattered cities. The major roadblock to this is Idilb, the last large concentration of anti-Assad groups, Jihadists linked with al-Qaeda, and a modest Turkish occupation force representing Operation Olive Branch. The province, which borders Turkey in the north, is mountainous and re-taking it promises to be difficult.

    For the time being there is a stand down. The Russians cut a deal with Turkey to demilitarize the area around Idilb city, neutralize the jihadist groups, and re-open major roads. The agreement holds off a joint Assad-Russian assault on Idilb, which would have driven hundreds of thousands of refugees into Turkey and likely have resulted in large numbers of civilian casualties.

    But the agreement is temporary – about a month – because Russia is impatient to end the fighting and begin the reconstruction. However, it is hard to see how the Turks are going to get a handle on the bewildering number of groups packed into the province, some of which they have actively aided for years. Ankara could bring in more soldiers, but Turkey already has troops east of the Euphrates and is teetering on the edge of a major economic crisis. Pouring more wealth into what has become a quagmire may not sit well with the Turkish public, which has seen inflation eat up their paychecks and pensions, and the Turkish Lira fall nearly 40 percent in value in the past year. Local elections will be held in 2019, and Turkish President Recep Tayyip Erdogan and his Justice and Development Party ‘s power is built on improving the economy.

    In Syria’s east, Turkish troops – part of Operation Euphrates Shield – are pushing up against the Americans and the Kurdish-dominated Syrian Democratic Forces fighting the Islamic State (IS). Erdogan is far more worried about the Syrian Kurds and the effect they might have on Turkey’s Kurdish population, than he is about the IS. 

    Ankara’s ally in this case is Iran, which is not overly concerned about the Kurds, but quite concerned about the 2,200 Americans. “We need to resolve the difficulty east of the Euphrates and force America out,” Iranian President Hassan Rouhani said in early September.

    That latter goal just got more complex. The U.S. Special Forces were originally charged with aiding the Kurdish and Arab allies drive out the IS. President Donald Trump told a meeting in March, “we’ll be coming out of Syria like very soon.” But that policy appears to have changed. National Security Advisor John Bolton now says U.S. troops will remain in Syria until Iran leaves. Since there is little chance of that happening, the U.S. commitment suddenly sounds open-ended. Bolton’s comment has stirred up some opposition in the U.S. Congress to “mission creep,” although Trump has yet to directly address the situation. 

    The Kurds are caught in the middle. The U.S. has made no commitment to defend them from Turkey, and the Assad regime is pressing to bring the region under Damascus’ control. However, the Syrian government has made overtures to the Kurds for talks about more regional autonomy, and one suspects the Kurds will try to cut a deal to protect them from Ankara. The Russians have been pushing for Assad-Kurd détente.

    Turkey may want to stay in eastern Syria, but it is hard to see how Ankara will be able to do that, especially if the Turks are stretched between Idlib and Euphrates Shield in the east. The simple fact is that Erdogan misjudged the resiliency of the Assad regime and over reached when he thought shooting down a Russian fighter-bomber in 2015 would bring NATO to his rescue and intimidate Moscow. Instead, the Russians now control the skies over Idlib, and Turkey is estranged from NATO. 

    The Russians have been careful in Syria. Their main concerns are keeping their naval base at Latakia, beating up on al-Qaeda and the IS, and supporting their long-time ally Syria.  Instead of responding directly to Erdogan’s 2015 provocation, Moscow brought in their dangerous S-400 anti-aircraft system, a wing of advanced fighter aircraft, and beefed up their naval presence with its advanced radar systems. The message was clear: don’t try that again.

    But the Russians held off the attack on Idlib, and have been trying to keep the Israelis and Iranians from tangling with one another in the region around the Golan Heights. Moscow proposed keeping Iran and its allies at least 60 miles from the Israeli border, but Israel—and now the U.S.—is demanding Iran fully withdraw from Syria.

    The Assad regime wants Teheran to stay, but also to avoid any major shootout between Iran and Israel that would catch Damascus in the middle. In spite of hundreds of Israeli air attacks into Syria, there has been no counter attacks by the Syrians or the Iranians, suggesting that Assad has ruled out any violent reaction.

    That all came to end Sept 17, when Israeli aircraft apparently used a Russian Ilyushin-M20 electronic reconnaissance plane to mask an attack on Damascus. Syrian anti-aircraft responded and ending up shooting down the Russian plane and killing all aboard.  Russia blamed the Israelis and a few days later, Russian President Vladimir Putin announced that Moscow was sending its S-300 anti-aircraft system to Syria, along with a series of upgrades in Damascus’ radar network. Syria currently uses the S-200 system that goes back to the ‘60s.

    The upgrade will not really threaten Israeli aircraft – the S-300 is dated and the Israelis likely have the electronics to overcome it – but suddenly the skies over Syria are no longer uncontested, and, if Tel Aviv decides to go after the Syrian radar grid, the Russians have their S-400 in the wings. Not checkmate, but check.

    How all of this shakes down is hardly clear, but there are glimmers of solution out there.

    Turkey will have to eventually withdraw from Syria, but will probably get some concessions over how much autonomy Syria’s Kurds will end up with. The Kurds can cut a deal with Assad because the regime needs peace. The Iranians want to keep their influence in Syria and a link to Hezbollah in Lebanon, but don’t want a serious dustup with Israel. 

    An upcoming Istanbul summit on Syria of Russia, France, Turkey and Germany will talk about a political solution to the civil war and post-war reconstruction.

    Israel will eventually have to come to terms with Iran as a major player in the Middle East and recognize that the great “united front” against Teheran of Washington, Tel Aviv and the Gulf monarchies is mostly illusion. The Saudis are in serious economic trouble, the Gulf Cooperation Council is divided, and it is Israel and the U.S. are increasingly isolated over in hostility to Teheran.

  • Despite "Election Interference", Mattis Claims "We're Not Out To Contain China"

    After months of soaring tensions centered on the trade war as well as a series of incidents in the South China Sea where Beijing has sought to make territorial claims on international waters, Secretary of Defense James Mattis has sought to calm and downplay the situation ahead of a Southeast Asian Nations summit in Singapore, where it’s expected he could cross paths with Chinese officials. 

    Noting that it was not the U.S. goal “not out to contain China,” he said there were areas of mutually beneficial cooperation, but that there would be times they would “step on each other’s toes.” This includes, he explained, cooperation on North Korea and the United Nations. 

    Secretary of Defense made the comments while in Vietnam on his way to the Singapore summit. 

    He told reporters en route to the region:

    “Obviously, we’re not out to contain China. We’d have taken an altogether different stance had that been considered. It has not been considered,” according to Bloomberg.

    “We seek a relationship with China that’s grounded in fairness, reciprocity and respect for sovereignty,” he said.

    “So we’re two large powers, or two Pacific powers, two economic powers. There’s going to be times we step on each other’s toes, so we’re going to have to find a way to productively manage our relationship,” Mattis added.

    His softened rhetoric could mark a deescalation after China had previously canceled security talks planned for mid-October in Beijing amidst the two largest economies dueling it out in recent weeks in a trade battle. 

    This was exacerbated by President Trump’s charge at the UN General Assembly in New York last month that China was meddling in the November mid-term elections comments in which Trump further said President Xi Jinping might no longer be a friend.

    Trump said at the UN:

    “Regrettably, we found that China has been attempting to interfere in our upcoming 2018 election coming up in November against my administration.” And added, “They do not want me or us to win because I am the first president ever to challenge China on trade.”

    We have evidence. It will come out. Yeah, I can’t tell you now, but it came – it didn’t come out of nowhere, that I can tell you,” he also told a press conference.

    And while speaking at the neoconservative Hudson Institute early this month, Vice President Mike Pence added fresh fuel to the fire in an aggressive speech with a heavy anti-China focus.

     “There can be no doubt,” Pence said, “China is meddling in America’s democracy.”

    “Beijing has mobilized covert actors, front groups, and propaganda outlets to shift Americans’ perception of Chinese policy,” Pence charged. “As a senior career member of our intelligence community recently told me, what the Russians are doing pales in comparison to what China is doing across this country.”

    All of this also comes after a series of US aircraft and naval incidents with the Chinese military in the disputed South China Sea, including a recent close call between a US and Chinese destroyer in which Beijing attempted to warn the ship out of what it claims are Chinese territorial waters. 

  • The Great Depression II

    Authored by Jeff Thomas via InternationalMan.com,

    Whenever a movie has been a huge hit, the film industry tries to follow it up by doing a sequel. The sequel is almost invariably far more costly, as there’s the anticipation by those who create it that it will be an even bigger blockbuster than the original.

    The Great Depression of the 1930’s is seen by most people to be the be-all and end-all of economic catastrophes and there’s good reason for that. Although the economic cycle has always existed, the period leading up to October 1929 was unusual, as those in the financial sector had become unusually creative.

    Brokers encouraged people to buy into the stock market as heavily as they could afford to. When that business began to level off, they encouraged people to buy on margin. The idea was that the buyer would only put up a fraction of the money for the purchase and the broker would “guarantee” full payment to the seller. As a condition to the agreement, the buyer would have to relinquish to the broker the right to sell his stock at any point that he wished, should he feel the need to do so to get himself off the hook in the event of a significant economic change.

    Both the buyer and the broker were buying stocks with money that neither one had. But the broker entered into the gamble so that he could charge commissions, which he would be paid immediately. The buyer entered into the gamble, as he had been promised by the broker that stocks were “going to the moon” and that he’d become rich.

    Banks got into the game, as well. At one time, banks took money on deposit, then lent that money out at interest. They would always retain a percentage of the deposited money within the bank to assure that they could meet whatever the normal demand for withdrawals might be. But, eventually, bankers figured out that, if they were prepared to gamble, they could lend out far more money – many times the amount that they had received on deposit. As long as very few loans turned bad, they would eventually get the money back, with interest.

    And so, in the 1920’s, they loaned money to people so that they could buy into the stock market more heavily. From that point forward, an investor who was tapped out and couldn’t afford to buy more stock, then bought on margin. When he was no longer able to even afford to buy on margin, he borrowed money from the bank to buy on margin.

    That meant that only a tiny percentage of the “money” that passed hands actually existed. The great majority of investment funds only existed on paper.

    Of course, the very existence of this absurd anomaly depended upon a market that was thriving and moving steadily upward. If for any reason, there were a sudden loss of confidence in the banks, large numbers of depositors would demand to withdraw their deposits and there would be bank failures, as the banks had been playing with money that did not exist.

    Likewise, if that loss of confidence were to take place with regard to the stock market, large numbers of stockholders would try to sell at the same time and the market would collapse, as the brokers had been playing with money that did not exist.

    In the 1920’s, fortunes were being made by those who ran banks and brokerage houses – at a rate that greatly exceeded anything that had ever existed.

    Unfortunately, they’d created the greatest financial bubble in history and, when it popped, as all bubbles do, it popped in a very big way.

    Thousands of banks were wiped out. Thousands of brokerage houses were wiped out. And millions of investors were wiped out.

    Not surprising that laws were then passed to assure that such a disaster could never occur again. Of particular importance was the Glass Steagall Act.

    Then, in 1999, Glass Steagall was repealed. This was done under the advice of Fed chairman Alan Greenspan, and was accepted readily by then-president Bill Clinton, as he was assured that the repeal would mean a dramatic increase in investment, which would assure a shining legacy for him as he left office.

    My own first reaction to the repeal was that, over the ensuing years, we’d see irrational investment in the real estate market, made possible through bank loans. This would lead to a crash in real estate, followed by a crash in the stock market. I believed that this debacle would be papered over by governments, eventually leading to a further crash, and that the latter crash would be of epic proportions.

    But, why should this be? Why should the second crash be so much greater?

    Well, the magnitude of a crash tends to be equal to the magnitude of the economic abnormality that preceded it. The crash of 1929 was greater than previous crashes, because bankers and brokers had found new ways to inflate the bubble beyond anything that had existed before.

    Likewise, they’ve become even more creative this time around and have inflated the bubble far beyond what existed in 1929. The level of debt far exceeds anything the world has ever seen.

    The 2008 crash was, in effect, a mini-crash. No correction ever took place. Instead, it was papered over by massive increased debt, assuring that, when the inevitable big crash did occur, the severity would be far beyond any other crash in history.

    The sequel to the 1929 crash will be much like movie sequels. With movies, the producers invest more money into the sequel than they spent on the original movie, in the belief that, if they just throw enough money at it, it will somehow be better and make them even more money than the original.

    Likewise in economic events, the assumption is that, if a great deal of money had been made in the buildup to the last major collapse, surely, by creating even more debt this time around, the profit to be made will be far greater than before.

    And this has proven to be true. Financial institutions have entered into an era of profit that has historically been without equal. The original was a monster and the sequel will prove to be an even bigger monster.

    Of course, there’s a difference between movies and economic events. With movies, the producers cash in when the moviegoers pay their admissions fee. With economic crises, the producers make their fortunes in the lead-up to the crash. The crash itself simply passes the bill for the disaster to the moviegoers.

    The question that’s always asked prior to any crash is, “When will it happen?” Unfortunately, although crises can be analyzed and predicted beforehand, the date is more uncertain. The decisive factor is the loss of confidence by the general public. When they collectively get weak knees about the economic future – when they withdraw their deposits from banks and sell their shares in the market, the bubble will suddenly pop.

    And so, the actual screening of this particular epic could be a year from now, or it could be next week. So, it might be premature to buy your box of popcorn now, but, when crashes come, they come suddenly and without warning.

    Since it’s not possible to predict an exact date, those who don’t wish to be casualties of the collapse may wish to prepare for it – to get free of debt, to liquidate assets that will be devalued in a crisis, to turn the proceeds into real money (precious metals) and to relocate to a place that’s likely to be less impacted by the monetary and social crisis that will ensue.

    *  *  *

    Clearly, there are many strange things afoot in the world. Distortions of markets, distortions of culture. It’s wise to wonder what’s going to happen, and to take advantage of growth while also being prepared for crisis. How will you protect yourself in the next crisis? See our PDF guide that will show you exactly how. Click here to download it now.

  • China Defends Mass "Re-education Camps" As Uighur Muslims "Transformed For The Better"

    Two months after a United Nations human rights panel first accused China of holding up to one million ethnic Uighurs in what was described a “massive internment camp that is shrouded in secrecy,” Chinese officials have now admitted to the existence of the “re-education” camps focused on “preventing” religious extremism, and have mounted a fierce defense, going so far as to say former detainees have been “transformed for the better” and live happier lives as “citizens of the nation”

    Though reports of the Orwellian mass internment camps where “brain washing” techniques are said to be routine have shocked Western audiences as details and testimony have emerged over the past weeks, China has now not only unashamedly admitted to the centers, but is positively boastful about the whole enterprise

    Prior AP file photo of a Chinese re-education camp in Bajing town in Jiangxi province.

    A new Reuters report details a bombshell interview with Beijing’s number two Communist party official, who just happens to also be the most senior ethnic Uighur in Xinjiang province – the location and foremost concentration of government crackdowns and internment camps for the mintority group:

    Vocational training is being used “to the greatest extent” in China’s far-western Xinjiang region to ensure militant activities are “eliminated before they occur,” a senior Communist Party official said.

    The state media interview with Shohrat Zakir, the number two party official and most senior ethnic Uighur in Xinjiang, is China’s most detailed defense yet of its policies in the region, which is home to a large Muslim population.

    The minority ethno-religious group concentrated in the western Chinese province of Xinjiang has found itself under increased persecution and oversight by Chinese authorities of late as their collective Sunni Islamic identity and separatist political movements have resulted in historic tensions with the Communist government.

    Beijing has in recent years been accused of practicing collective punishment and broad crackdowns on the Uighur population in Xinjiang, which is numbered in total at 11 million (with some estimates of up to 15 million; China’s total Muslim population is at about 21 million). The minority ethnic group is also found in sizable numbers in neighboring Kazakhstan, Uzbekistan, Kyrgyzstan. Recent UN statements have blamed state authorities for  prominent Uighur Chinese citizens and dissidents being “disappeared”

    This camp near Kashgar, China which appears has doubled in size over the past year. Image source: Wall Street Journal

    Though now owning up to the existence of what the Chinese official in this latest interview called “vocational training” — authorities are seeking to downplay its extent what appears a coordinated public relations campaign pushing back against recent stories focused on shocking testimonies of victims who spent time in the camps. Reuters confirms that, “After initially issuing blanket denials, Chinese officials have in recent weeks said they were not enforcing arbitrary detention and political re-education across a network of secret camps, but rather some citizens guilty of minor offences were sent to vocational centers to provide employment opportunities.”

    The high-ranking government official, named Shohrat Zakir, told state media in the interview that China was fighting “terrorism and extremism” in its own way in accord with international norms and that “trainees” in the camps even signed “education agreements” to receive “concentrated training” which involved “live-in study”. He described everything from Chinese language lessons to classes on the nation’s laws and basic vocational skills such as clothe making, factor work, and hairdressing. 

    “Through vocational training, most trainees have been able to reflect on their mistakes and see clearly the essence and harm of terrorism and religious extremism,” Zakir said in the interview. “They have also been able to better tell right from wrong and resist the infiltration of extremist thought,” he added.

    While China is clearly trying to spin what are essentially Communist political brainwashing centers and brutal mass detention centers, there is some truth to the claim that a militant Islamic insurgency has made inroads into Western China. 

    Most notable is the ethnic Uighur-founded and led East Turkistan Islamic Movement (ETIM, also commonly called the Turkestan Islamic Party, or TIP), a Muslim separatist group based Xinjiang known to have conducted dozens of terror attacks in Chinese cities like Shanghai and Yunnan, but also in places like Afghanistan, and as far as Syria, where it’s believed up to 5,000 Uighurs fight alongside al-Qaeda. 

    China claims this threat has made its “re-education” program necessary as it focuses on fostering “anti-extremism” in Xinjiang. 

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Today’s News 16th October 2018

  • Are We Headed For A US-Turkey "Fresh Start" After Brunson's Release?

    The FT editorial board says the time is ripe for rapprochement between the US and Turkey as Pastor Andrew Brunson, freed after two years of under Turkish captivity on charges of espionage, found himself sitting in the Oval Office across from President Trump less than a mere 24 hours after his release. 

    Is it time for a “fresh start” as FT suggests

    The freeing of the American pastor, who had been charged with espionage, ends a high-profile stand-off between the US and Turkey. It also provides an important opportunity to make a fresh start in the crucial relationship between Washington and Ankara. Turkey and the US matter to each other. For Washington, Turkey is an important member of Nato and a neighbour of Syria. It is a traditional ally of the US and has played a vital role in absorbing millions of Syrian refugees.

    No doubt Turkey would welcome it, as its economy was left reeling this summer as its relationship with Washington hit a low point, sending the lira into a death spiral, but the fact remains that it’s also a NATO ally which did more than any other to create that very refugee crisis in the first place.

    Source: Getty Images

    Turkey has indeed played a “vital role” in the crisis, as FT suggests, but more in the way of being both “arsonist” and “firefighter” as during most of the seven year long Syrian proxy war it used its border as the largest “jihadi highway” in modern history, facilitating the movement of al-Qaeda and ISIS terrorists into Syria to fight the Assad government.

    And of course, the United States was a key partner in this — as Joe Biden all but spelled out while speaking at Harvard in 2015 — when he blamed “US allies” including Turkey for the rise of the Islamic State. This is likely the reason why the White House has never fully and adequately called President Erdogan to account as a state sponsor of terror — simply put, each side probably has too much dirt on the other

    For the FT editorial board and the rest of the MSM, these established facts have long been ignored and swept aside, even though now fully acknowledged even within establishment academia

    But if Washington gets a “close regional ally” in a Middle East region where its regime change and imperialist ambitions have not changed, the Turks themselves also get an “insurance policy” by healing ties with the US. FT continues:

    For the Turks themselves, a close relationship with America is an important strategic insurance policy in a volatile region. But the attempted coup in Turkey in 2016 set off a train of events that threatened the US-Turkish alliance. The government of President Recep Tayyip Erdogan blamed the coup attempt on the followers of Fethullah Gulen, a Turkish religious leader based in the US. The mass arrests that followed the coup attempt swept up Mr Brunson, who was detained for two years. 

    “Insurance policy” is quite possibly the only accurate and fitting image FT offers in its op-ed: the two sides “need each other” in the way co-conspirators in a crime need each other to keep quiet, with the unspoken ability of each of further blackmail the other. 

    The release of Mr Brunson does not resolve all the issues between Washington and Ankara.

    The Erdogan administration remains furious about US support for Kurdish fighters in Syria, who the Turks insist are allies of Kurdish terrorists inside Turkey.

    The Americans are unsettled by Mr Erdogan’s wooing of President Vladimir Putin, and angered by his decision to buy a Russian air-defence system. That decision is seen by Washington as incompatible with Nato membership; it could trigger further economic sanctions against Turkey.

    Turkish companies could also be subjected to American secondary sanctions, when the US tightens its economic isolation of Iran, next month. Meanwhile Mr Erdogan’s increasingly autocratic behaviour at home — involving mass purges of the civil service and arrests of journalists — has drawn unfavourable attention in the US.

    This is a formidable list of problems.

    Overcoming all of them may not be possible. But there are some grounds for hope.

    The release of Mr Brunson ends an injustice that weighed heavily with evangelical voters in the US.

    The Syrian war may finally be coming to a close, which could make US support for the Kurdish rebels less of an issue. The threat of a crisis in US-Saudi relations should give the Trump administration an incentive to shore up ties with Turkey — another important regional power. The Erdogan government, meanwhile, is having to deal with a looming debt crisis. It needs goodwill in Washington.

    However, if the US and Turkey are to rebuild their relationship, both sides will need to show restraint.

    Ideally, the Turkish government should rethink its decision to buy Russian weaponry. Even if Turkey persists, the Trump administration should try to avoid a new round of economic sanctions. The Erdogan government, for its part, would do well to adopt a more understanding attitude to American aid for the Kurds in Syria, particularly if the US continues to provide intelligence co-operation on the terrorism threats facing Turkey. This kind of restraint will not be easy for either Mr Erdogan or Mr Trump — they are volatile and emotional leaders.

    But in the interests of both their nations, it is time for some pragmatism and careful diplomacy.

  • How America Can Repair Its Damaged Relationship With Russia

    Authored by Nikolas Gvosdev via The National Interest,

    There is a way to break the dysfunctional cycle that hinders Moscow’s relationship with the West…

    George Beebe’s recent analysis has presented the policy community with a very useful paradigm for understanding recent alleged actions taken by the Russian special services in a number of Western countries: the Skripal Rorshchach test .

    Beebe is referring specifically to the attempted murder of former Russian double agent Sergei Skripal on British soil by use of a Soviet-developed nerve agent that sickened him and his daughter and killed several British citizens – amidst growing evidence of the involvement of officers of Russian military intelligence (the GRU). That case can be broadened to encompass a series of computer hacking/information warfare operations that were uncovered in the last several weeks in the UK, the United States, Canada and the Netherlands, which also have been attributed to the GRU. Now the discussion revolves around whether those who have been accused of taking action were doing so in contravention of or in support of the instructions of the Russian state.

    In every case, as Beebe points out:

    “The debate over the . . . evidence pivots on what one is inclined to believe about how Russia’s political system works and what Moscow aims to do in the world.”

    I would add a corollary to Beebe’s test:

    the debate also hinges on the view the government evaluating the evidence has on the desirability of engagement or disengagement with Russia.

    And, as recent European Union conclaves attempting to forge a coherent policy towards Russia – or the whipsawing in the United States itself between a Trump administration open to dialogue with Russia and a Congress determined to bring maximum pressure on Vladimir Putin’s government – make clear is how locked into pre-existing positions Western approaches to Russia remain.

    Arguably since 2007 and Vladimir Putin’s bombshell remarks at the Munich Security Forum, the West has been put on notice that Russia would seek to revise the parameters of the post–Cold War settlement, particularly in Europe and in Eurasia. It would seek to do so cooperatively wherever possible, but by use of both conventional and nonconventional force whenever necessary. Thus, Moscow has been prepared to engage both in conciliatory and hostile behavior with Western countries, sometimes even simultaneously, in pursuing its objectives.

    While this approach has not always been successful – with some spectacular miscalculations (such as the fallout from the Russian efforts to interfere with the 2016 U.S. elections) – it has nonetheless given the Kremlin the hallmarks of an overall grand strategy. In revealing remarks at the Moscow Energy Week press conference, Putin quipped that “special services mess with each other all the time” while at the same time calling for improved relations with the West.

    The West, on the other hand, approaches its relations with Russia through the prism of what Moscow “should” do rather than what it actually “is” doing. For some countries like Italy, Hungary, Austria, and to a lesser extent Germany and France, Russia “should” be a partner to Europe. Thus, these governments prefer to focus on areas of cooperation with Moscow and thus to minimize cases where Russia’s behavior is far less than constructive. For others – the United States most notably, Russia “should” conduct its domestic and foreign affairs in line with Western values, norms and preferences. When Russia deviates from such standards, the first instinct is to correct and punish. The current intra-Atlantic divergences (both within and between the countries of the West) on policy towards Russia stem from this basic divide – between those who see Russian transgressions as a distraction from Russia’s overall integration with the West versus those who see them as intrinsic to Russian statecraft and policy. So when the GRU is accused of hacking operations, one side is prepared to minimize the seriousness of the charges while the other is prepared to throw away all of the positives of the relationship in order to avenge. Swinging back and forth between these two binary choices does not lead to effective policy.

    For the past year, the dialogue for a “Sustainable Bipartisan U.S. Strategy Towards Russia” (informally known as the Mayflower Group) has been grappling with this very dilemma.

    On the one hand, Russia’s size, geopolitical position and military capabilities mean that the United States does not have the luxury of selective engagement and punishment, enacting penalties against Moscow that carry no costs or risks for the United States.

    At the same time, the need to sustain strategic stability in the relationship with another major nuclear power does not mean that the United States must meekly submit to all of Russia’s demands.

    The discussions have produced the outlines of what might be termed a 3-C paradigm: cooperate, compete and confront. In other words, the United States – and by extension the West – must be able to shift along the 3-C scale, safeguarding cooperation, for instance, in those areas that are vital to both countries (e.g. nuclear non-proliferation) while creating ground rules for areas where the two countries will compete (for instance, in energy sales around the world). Most importantly, the United States must be prepared to confront Russia – but to do so with a clear understanding of the costs and consequences. One of the things that has been quite frustrating in observing the back-and-forth in the U.S. Senate during the August hearings is the insistence on maximum confrontation with Russia in both military and financial terms – but with guarantees that there will be no negative blowback or consequences for the United States. This limitation – frankly admitted by the Obama administration in guiding how it imposed penalties on Moscow – weakens the deterrent impact and has contributed to a feeling in the Kremlin that penalties imposed by the West are survivable.

    The problem is that the Russian state takes the West’s protests less seriously than it should—and assumes that continuation of hostile action (such as hacking or poisonings) can continue with manageable consequences. In turn, Russia’s behavior inflames Western politicians who begin to contemplate much more stringent penalties or are prepared to sacrifice even areas of beneficial cooperation in order to punish the Kremlin. This begins to move us into lose-lose territory.

    A 3-C approach, guided by a sober assessment of costs and consequences, has the possibility of breaking this dysfunctional cycle. It assumes that enmity between Russia and the West is not inevitable but avoids a partnership at all costs approach. It provides a way to take advantage of openings to improve the relationship but to stand firm against Russian challenges to U.S. interests and values. Yet, at this point, the United States does not appear ready to develop this approach. It requires a degree of flexibility—to be able to impose or lift sanctions—that the Congress is unwilling to grant the president. It also requires an ability to think through priorities—not every Russian transgression or disagreement with Washington merits an all-out response.

    Perhaps the midterm elections will stabilize the American political system and lead to a modus vivendi between the president and Congress for the next two years, in which a more sustainable approach to Russia can take root. If not, then the dysfunction that has been observed for the last several years will deepen.

  • World's "Worst Famine In 100 Years" Will Hit Yemen, U.N. Warns

    For a Saudi and Mohammed bin Salman (MbS) update that’s not directly related to the murder of journalist Jamal Khashoggi, a United Nations official on Sunday warned Yemen is now facing what could be “the worst famine in the world in 100 years” which is set to put “12-13 million innocent civilians at risk of starving,” according to the BBC

    Yemen’s war, which has involved intense Saudi-UAE-US coordinated airstrikes on civilian population centers going back to 2015 has been popularly dubbed “the forgotten war” due to its general absence from headlines and front page stories over the years.

    As a few analysts and war reporters have pointed out in recent days, it took the murder of one Washington Post contributor who was one of the mainstream media’s own — for MbS to actually face any level of scrutiny, and yet the tens of thousands killed under Saudi coalition bombs is still largely taboo for the same mainstream to touch. 

    Saudi-led coalition airstrike on an arms depot in Sanaa in 2015. Image source: AFP

    A top United Nations official who monitors Yemen, Lise Grande, told the BBC: “We predict that we could be looking at 12 to 13 million innocent civilians who are at risk of dying from the lack of food.”

    She explained, “I think many of us felt as we went into the 21st century that is was unthinkable that we could see a famine like saw in Ethiopia, that we saw in Bengal, that we saw in parts of the Soviet Union, that was just unacceptable. Many of us had the confidence that that would never happen again and yet the reality is that in Yemen that is precisely what we are looking at.”

    The U.N.’s Humanitarian Coordinator for Yemen further condemned a Saudi coalition airstrike on Sunday that killed at least 15 civilians near the port city of Hodeida. Grande said, “The United Nations agencies working in Yemen unequivocally condemn the attack on civilians and extend our deepest condolences to the families of the victims.”

    Image via AFP

    The attack reportedly occurred on what’s being described as a transport minibus in what is the third major air strike on a civilian bus since August

    Pro-Houthi rebel media said that five members of the same family were killed in the vehicle, and added that a number of the casualties were women and children. 

    Meanwhile a prominent humanitarian group working in the region, The Norwegian Refugee Council, has called such attacks tragically “routine” in a statement: “Attacks that kill and maim civilians are no longer an anomaly in Yemen’s war,” the group said. “The drumbeat of assaults on men, women and children is one that has become appallingly routine,” it added.

    https://platform.twitter.com/widgets.js

    Estimates have put the civilian death toll in the war anywhere ranging from 10,000 to as high as 70,000 — a number difficult to come by as the Saudi coalition has blockaded the countries main humanitarian aid entry port of Hodeida. The U.N. most recent numbers puts the number of displaced at approaching 500,000 people. 

    As what the U.N. is now calling the “world’s worst famine in 100 years” is set to make Yemenis’ misery even worse, we wonder if the mainstream will actually give it coverage for a change. But we won’t hold our breath as this humanitarian disaster can’t be blamed on Putin or Assad. 

  • The Khashoggi Extortion Fiasco

    Authored by Ghassan and Itbah Kadi via The Saker Blog,

    A mystifying diplomatic escalation ensued following the disappearance of Saudi Washington Post columnist, Jamal Khashoggi, after visiting the Saudi Consulate in Istanbul, Turkey.

    Why would the United States of America make such a fuss over the disappearance of a non-American citizen? Why would America turn a blind eye to the Saudi killing of thousands of Yemeni civilians and the starving of millions others and then make “threats” against Saudi Arabia after one single Saudi journalist disappeared and has presumably been murdered by Saudi authorities?

    And since when did Erdogan worry about human rights? After all, this is the same man whose army has committed countless atrocities against Syria and Turkish Kurds.

    And the repercussions did not stop at the official level. Even Western business leaders are cancelling trade deals with Saudi Arabia and asking its government for explanations.

    Let us not forget that America does not only ignore the war on Yemen, but it also assists the Saudis and supplies them with arms and intelligence. What’s behind the sudden U-turn? Why would the President of the United States of America be personally involved in this?

    Furthermore, Saudi Arabia has a long history of persecuting dissidents and suppressing any opposition. So once again, why was Khashoggi singled out in this instance to become such a person of interest to the USA? His status as a journalist and columnist for Washington Post certainly does not answer this question.

    And back to Erdogan, the man who reached the cliff-edge with America on a number of strategic and trade issues, why would he be concerned about the “murder” of a foreign journalist allegedly at the hand of his own government? According to the story, the “murder” was committed at the Saudi Consulate, and technically, Turkey has no jurisdiction within this diplomatic precinct albeit it is within Turkey.

    The story has been elevated to the level of news headlines even in news breaks. This statement is not meant to either vindicate Saudi Arabia or to justify forfeiting the blood of Mr. Khashoggi, but when the West acts at this level of hypocrisy, something has to be amiss, and the question is what is it?

    If we rewind the clock and take into account the timeline of events, this is what we find:

    2nd of October 2018. Khashoggi walks into the Saudi Consulate in Istanbul. Unless tampered with, the date is confirmed on the CCTV video presented in this link:

    3rd of October, President Trump, unprovoked, said that Saudi Arabia would not survive for two weeks on its own without American protection and demanded that Saudi Arabia should pay for that protection.

    5th of October. Crown Prince Mohamed Bin Salman was quick to respond. In his interview with Bloomberg the Crown Prince reiterated that Saudi Arabia has been around since 1744, 30 years before the United States came to existence. The date of 1744 is in reference to the smaller Emirate of Diriyah which was established by Mohamed bin Saud before the King Abdul Aziz expanded his territory to the current borders. In referring to this date, the Prince was saying that Saudi Arabia stood on its own feet before any alliance with America, but he is conveniently ignoring the fact that before any petrol was discovered, external threats were not an issue. In his interview, he later on referred to the Saudi ability to withstand the Obama years, claiming the Obama administration worked against Saudi interests. Though he did not name Syria, he was undoubtedly referring to Syria among other things.

    From that day onwards, the sequence of events escalated quite rapidly. As I write this, President Trump is talking about taking severe measures against Saudi Arabia, but not severe enough to cancel the USD 110 Bn arms deal. The mention of the arms deal could well be a hint made by Trump in order to remind the Saudis how reliant they are on America. After all, Saudi Arabia is bogged down in a war with Yemen that it is unable to win even with America support.

    Is it by coincidence that in the middle of this kerfuffle Turkey suddenly decided to release American Pastor Andrew Brunson after more than two years of house arrest?

    Not really; not if we connect the dots.

    One logical explanation of the recent series of events lies in the fact that they carry the hallmarks of extortion. As a matter of fact, Trump’s mention of the inability of Saudi Arabia to survive for more than two weeks without American protection is in itself a prelude for extortion. This is the same logic and language used by Mafia bosses with shop owners.

    President Trump runs America like a corporation. To him, it’s all about money. Given America’s dire economic position, he will not leave a single stone unturned if it is concealing a single dollar.

    Dr. Skidmore from Michigan University argues that USD 21 Tn has gone missing from the coffers of the Ministries of Defense and Housing alone in the years between 1998 and 2015. He speculates that Trump did not know about this when he became president. Revelations of this kind and magnitude make Trump’s task to fix the economy even more out of reach:

    The current situation is reminiscent of an article I wrote back in 2012.  From this article I quote the following:

    The USA is always accused of keeping its hands on the oil resources of the Middle East. For fairness, by-and-large, it is “only” controlling its flow, but still paying for it; albeit in printed money.

    A bankrupt, desperate and oil-thirsty USA may feel compelled to threaten oil-rich countries with air-strikes and even nuclear attacks…..

    ….In an escalated situation, at stage two, an isolated oil-thirsty USA may become tempted to literally steal this oil. The USA may start with easy, close targets such as Venezuela. A desperate USA with a radical President in the Whitehouse will possibly be tempted to take over by force the oil fields of such soft targets. This can be the beginning of a long path of piracy.

    How far can this path be pursued is anyone’s guess. The next target can be a puppet state like Qatar, even Saudi Arabia itself.

    In such a desperate stage, the USA can only rely on its nuclear supremacy in order for it to be able to force its way. It will not have the financial resources to put boots on the ground, and any ensuing internal strife potentially caused by financial woes will add to the expense and risks of this exercise.”

    Even though those words were written only six years ago, a lot has changed in the global balance of power since then and the world is no longer unipolar. With fracking, America is also now less reliant on Saudi oil, but is in desperate need for Saudi money. The diminishing American military power on one hand, and the military rise of Russia and China on the other hand, are forcing America to explore other pursuits. This is why the Trump administration is into the trade sanction mode. But sanctions alone are not enough, and America is likely to be using the Khashoggi story as a pretext to extort protection money from the Saudis; pay up or we will turn the whole world against you.

    The Saudis don’t deserve any sympathy at all. They have literally been getting away with murder for decades under the watchful eye of their American big brother and ally. The near future will put the extortion theory to the test. If the Americans and Saudis strike a money-for-protection deal followed by an easing of the anti-Saudi rhetoric, then we will know the theory is accurate and that they are both back in business. They may strike a face-saving deal in which the Saudis do not look like they have succumbed to pressure, thereby paying America in ways that do not carry the label of protection money. But, in any manner in which moneys are paid by the Saudis, they are extortion funds and nothing short of piracy.

    So how does Turkey fit into this picture?

    Turkey’s economy has suffered greatly after the recent American sanctions and the Turkish Lira went into a nosedive.  The impasse between the two NATO allies is multi-faceted and includes opposing views on dealing with very sensitive issues such the Kurdish question, ISIS, Russian presence in Syria, Iran, as well as Turkey’s regional ambition for a resurrected pan-Muslim leadership.

    Now, Turkey is not only at odds with America and American policies, but also sees Saudi Arabia as an obstacle that stands in the way of its Muslim leadership aspirations. Turkey sees Saudi Arabia as the Wahhabi rival to the Muslim Brotherhood faction to which Erdogan belongs. So, when the Khashoggi story surfaced, Turkey and America found common interest in being anti-Saudi; albeit for different reasons. To capitalize on the events, Turkey offered a sweetener to the Americans, releasing the American Pastor, Andrew Brunson, making it look like a legal court decision. Turkey expects the world to believe that on such sensitive international legal matters decisions can be made without the approval and directives of Erdogan himself. In the world of politics, pigs do fly.

    Both Erdogan and Trump claim there was no deal behind the release of the Pastor, and perhaps there wasn’t but, the Khashoggi incident gave Erdogan an opportunity to take a step towards some type of conciliation with America. But even in the absence of a deal, Erdogan will expect his reward; the least of which would be the lifting of the American trade sanctions. That said, the restoration of the American-Turkish that preceded the war on Syria will have to wait; if that is at all achievable. After all, Turkey has established strong links with Russia and has bought the S-400 ground-to-air state-of-the-art missile systems. But Erdogan hedges his bets on the principle of keeping a foot in each door.

    The interesting question to ask here is the following; if this whole drama is indeed a false flag for an extortion process, how is it that Trump is receiving the full support of the American media, his “sworn” enemies, the organizations he calls “fake news”? Is the story too hot for them to resist? Are they a part of the extortion process or, are they totally stupid enough to go with the flow? Alternatively, is the Deep State behind Trump on this one and instructing the media to do the same?

    Ironically, the bipartisan American Senate Foreign Relations Committee, headed by Senator Corker, has sent a letter to Trump asking him to investigate the disappearance of Khashoggi and report back to the committee within 120 days.  Does this mean that the Democrats are behind Trump in his anti-Saudi push? They seem to be.

    It seems that American lawmakers, media, and the Deep State are all united against Saudi Arabia until it relents and pays up. How Saudi Arabia will manage to weasel out of this trap, if it can, remains to be seen.

    America does not have to cancel the USD 110 Bn arms deal with Saudi Arabia. All it has to do is delay deliveries. Ironically, as if the recent developments are not worrying enough for the Saudis, on the 8th of October, the Yemeni Army has made advances into the Saudi territory and any disruption to the flow of American arms to the Saudis can have serious consequences on that seemingly unwinnable war.

    Any whichever way, Saudi Arabia has definitely chosen the wrong time to move on Khashoggi, if it did. After all, we don’t really know what happened to him, and we cannot even zero out the possibility that he was kidnapped or killed by other operatives including Americans and Turkish. The media are busy focusing on their alleged attempts to find out what happened to Mr. Khashoggi, how he was killed, what torture was he subjected to, how was his body removed from the consulate etc. We will probably never find out the truth about what happened to him, but what is perhaps more pertinent and conceivable is to establish who benefits from the fall-out and how.

    America, and the West in general, never really liked Saudi Arabia. At best, the West tolerated the ultra-conservative undemocratic suppressive kingdom of sand that exported fundamentalism and terror, but this can all change with a stroke of a pen and Saudi Arabia may soon find itself in need of protection from its protector.

     

  • Is The NYC Luxury Real-Estate Market On The Verge Of A Full-Blown Collapse?

    After New York City developers ignored affordable housing for years in favor of the fatter profit margins on luxury development (spurred on by what looked to be an extremely durable post-crisis recovery), the chickens are finally coming home to roost, as the Financial Times explains, what appeared to be an uncomfortable pullback in sales prices for luxury homes – spurred by a retraction in bids at a time of expanding supply – is now poised to metastasize into a full-blown market rout with implications beyond New York City.

    Inventory

    To wit, the number of unsold homes in Manhattan has plunged by 40% through September compared with the first nine months of 2017. This translated into a median sales-price decline of 9%. And while the slowdown has already spread from Manhattan’s luxury market throughout the rest of the island, some brokers believe NYC is the canary in the coalmine warning of a broader housing-market pullback after nearly a decade of untrammeled growth.

    “We’re in the middle of a US housing slowdown, with Manhattan’s prime market the first and most sensitive to react,”says Jonathan Miller of Miller Samuel, a local property appraiser.

    Still, the overabundance of unsold homes is most acute in the luxury market, where the ratio of sold to unsold homes has exploded over the past year, as the FT points out. And what’s worse, these figures don’t incorporate what brokers call “shadow inventory” – unsold homes that are being kept off the market by anxious brokers fearful of provoking a panic.

    Here’s a helpful breakdown of sales data detailing the slowdown in the NYC housing market:

    • During the third quarter of this year the average Manhattan home took 137 days to sell. Some 42 per cent of homes priced above $10m were on the market for more than 180 days
    • Homes priced above $3m comprised 30 per cent of inventory and 15 per cent of sales in the third quarter of 2018
    • Currently, the sales tax (including state and city tax and state mansion tax) for a new $2.5m home in Manhattan is 2.8 per cent

    The stock of unsold luxury homes has been piling up. For properties priced above $3 million, the ratio of homes sold to those currently for sale in Manhattan has gone from 1:3 to 1:6 in a year, according to Stribling. For homes priced above $10m, the ratio is 1:10. Though one broker at Stribling said the real figure could be closer to 1:15, given that developers are probably low-balling their figures, anxious about sending the market even lower.

    This has led to a buildup in “shadow inventory” as one broker called it.

    “They are holding back homes that they would otherwise be actively marketing, and which would therefore show up in inventory figures,” he says. Inventory figures are being “significantly manipulated” by the practice of excluding this so-called shadow inventory, according to Miller.

    In the most rarefied stratum of the market – homes worth $10 million or more – prices have fallen by roughly 30% since the peak in 2014.

    “In the market north of $10m, you’re seeing prices off anywhere from 10 to 30 per cent from the peak in 2014,” says Miller. In the third quarter of this year, the average home sold above $10m went for 13 per cent less than its asking price, the biggest discount of any price bracket tracked by Stribling. 

    Prices are being squeezed as a chasm opens up between bids and asks. Total inventory is set to expand from 6,300 in 2017 to 7,900 in 2019, even as the number of apartments sold is expected to drop from 1,900 to 1,800.

    Much to the chagrin of high-end developers, the poster children for the dearth of sales in the Manhattan housing market are the members of “Billionaires Row”. During New York City’s post-crisis property boom, many developers focused on luxury housing, which typically can be sold at a higher premium, yielding fatter profits, at the expense of affordable housing. The result has been a glut at the high end of the market, while the average renter is struggling with housing costs at or near all-time highs.

    Housing

    (Courtesy of the FT)

    And with 22 more luxury towers set to hit the market between now and 2020 (including the Central Park Tower, which will become the second-tallest building in the US) prices are poised for an even larger drop.

    In the past three years, nine new residential skyscrapers (many include commercial tenants, too) taller than 200m were built in Manhattan, according to the Council on Tall Buildings and Urban Habitat. Between the beginning of this year and the end of 2020, 22 more are set to join them, providing another 1,412 floors to a total height of 3.6 miles.

    These will include Central Park Tower – which will become the US’s second tallest building, reaching up 472m, when it is completed in 2020 – and 111 West 57th Street, will reach to 435m when completed next year.

    Beyond 2020, the crush of unsold inventory could create a vicious cycle as developers are forced to put more inventory on the market as their conviction that this drop in prices was merely a blip begins to fade.

    “Many of these were held back in 2015 when the market started to turn when there was a belief that this was a blip. Now that these firms’ lenders can’t wait any longer, so many of the homes that are likely to come online through 2018 and 2019 will be the larger, high-value units.”

    One factor driving the housing glut in NYC is the Republican tax reform law that went into effect earlier this year. Its cap on itemized deductions related to state and local taxes (including NYC’s not-inconsiderable property tax rate) has made it more economical to rent instead of buy. Ironically for NYC real-estate developers (a group that includes President Trump), this tax law couldn’t have come at a worse time. Property taxes on new developments are particularly high, with one broker estimating that buyers of a $3 million condo will pay $44,000 a year in property taxes to the city, not including other unrelated taxes.

    Housing

    And among the apartments for which brokers do manage to find a buyer, many of them are turning around and putting the unit up for rent within six months. According to Street Easy, a total of 1,313 recently sold apartments were listed for rental within six months, the highest number since the firm started collecting data twelve years ago. This increase in housing supply can effectively negate the sale’s impact on the broader market, since potential buyers may choose to rent instead.

    Housing

    Undeterred, developers are adopting a smorgasbord of tactics, from moving up commission payments to incentivize brokers, to offering to shoulder some of the tax burden incurred by buyers.

    Nonetheless, developers are trying a range of tactics to avoid cutting prices. To incentivise brokers, they are shifting commission payments forward from the date on which a sale is closed to the date on which it is agreed, which may be two years earlier, says Derderian.

    Buyers are being lured with offers to pay transfer taxes, covering mansion tax – an additional 1 per cent sales tax on homes costing more than $1m – free parking spots (which currently set you back $750,000 at the soon-to-be completed residential tower at 220 Central Park South), interior upgrades or cash back to spend on the apartment.

    The advantage for developers of such perks is that they limit the price cuts, flattering the state of the market with the official price figures, Derderian says.

    When it was launched, buyers of homes in Beekman Residences in Downtown were being offered a $10,000 gift card to spend at the hotel in the same building. If the market’s current trajectory continues, that may not cover the bar tab to drown their sorrows.

    But these tactics can only work for so long. Eventually, sellers will need to reckon with what has become a fundamental imbalance in the NYC housing market. And the irony is, renters, who have fewer affordable options than ever before, won’t find much relief amid the dropoff in development that will almost certainly ensue.

  • Mish: Warning! Civilization At Risk, Crisis By 2040, And Other Nonsensical Climate BS

    Authored by Mike Shedlock via MishTalk,

    The amount of climate scaremongering in the past few weeks is stunning. And it’s all pure bullshit.

    Check out these headlines.

    Wall Street Journal: U.N. Panel Warns Drastic Action Needed to Stave Off Climate Change

    New York Times: Major Climate Report Describes a Strong Risk of Crisis as Early as 2040

    The Intercept: FOSSIL FUELS ARE A THREAT TO CIVILIZATION, NEW U.N. REPORT CONCLUDES

    Earther: We Have a Decade to Prevent a Total Climate Disaster

    MarketWatch: Drastic action needed to prevent climate catastrophe, U.N. panel warns

    Daily Caller: AL GORE: ‘WE’RE RUNNING OUT OF TIME’ ON GLOBAL WARMING

    Q&A

    Q.What do all of those headline have in common?

    A. They are all based on the same study. The study is riddled with huge numbers of blatant errors making the study for lack of better words, pure bullshit.

    Riddled With Errors

    Watts Up With That reports BOMBSHELL: audit of global warming data finds it riddled with errors

    • Almost no quality control checks have been done: outliers that are obvious mistakes have not been corrected – one town in Columbia spent three months in 1978 at an average daily temperature of over 80 degrees C. One town in Romania stepped out from summer in 1953 straight into a month of Spring at minus 46°C. These are supposedly “average” temperatures for a full month at a time. St Kitts, a Caribbean island, was recorded at 0°C for a whole month, and twice!

    • Sea surface temperatures represent 70% of the Earth’s surface, but some measurements come from ships which are logged at locations 100km inland. Others are in harbors which are hardly representative of the open ocean.

    • The dataset starts in 1850 but for just over two years at the start of the record the only land-based data for the entire Southern Hemisphere came from a single observation station in Indonesia. At the end of five years just three stations reported data in that hemisphere. Global averages are calculated from the averages for each of the two hemispheres, so these few stations have a large influence on what’s supposedly “global”.

    • According to the method of calculating coverage for the dataset, 50% global coverage wasn’t reached until 1906 and 50% of the Southern Hemisphere wasn’t reached until about 1950.

    • In May 1861 global coverage was a mere 12% – that’s less than one-eighth. In much of the 1860s and 1870s most of the supposedly global coverage was from Europe and its trade sea routes and ports, covering only about 13% of the Earth’s surface. To calculate averages from this data and refer to them as “global averages” is stretching credulity.

    • When a thermometer is relocated to a new site, the adjustment assumes that the old site was always built up and “heated” by concrete and buildings. In reality, the artificial warming probably crept in slowly. By correcting for buildings that likely didn’t exist in 1880, old records are artificially cooled. Adjustments for a few site changes can create a whole century of artificial warming trends.

    • Data prior to 1950 suffers from poor coverage and very likely multiple incorrect adjustments of station data. Data since that year has better coverage but still has the problem of data adjustments and a host of other issues mentioned in the audit.

    • Another implication is that the proposal that the Paris Climate Agreement adopt 1850-1899 averages as “indicative” of pre-industrial temperatures is fatally flawed. During that period global coverage is low – it averages 30% across that time – and many land-based temperatures are very likely to be excessively adjusted and therefore incorrect.

    Complex Systems Reduced to Single Variable

    Also consider Watts Up With That Weekly Climate and Energy News Roundup 331.

    A participant in the IPCC, who resigned, atmospheric physicist Richard Lindzen was Alfred P. Sloan Professor of Meteorology at MIT. He is noted for his work in dynamic meteorology, atmospheric tides, ozone photochemistry, quasi-biennial oscillation, and the Iris hypothesis. Lindzen is certainly qualified to talk about the physics of the atmosphere, where the greenhouse effect occurs. Several key points of the talk are summarized below.

    • “Nature has numerous examples of autonomous variability, including the approximately 11-year sunspot cycle and the reversals of the Earth’s magnetic field every couple of hundred thousand years or so. In this respect, the climate system is no different from other natural systems.

    • “Now here is the currently popular narrative concerning this system. The climate, a complex multifactor system, can be summarized in just one variable, the globally averaged temperature change, and is primarily controlled by the 1-2% perturbation in the energy budget due to a single variable – carbon dioxide – among many variables of comparable importance.

    • “This is an extraordinary pair of claims based on reasoning that borders on magical thinking. It is, however, the narrative that has been widely accepted, even among many sceptics.

    • “Many politicians and learned societies go even further: They endorse carbon dioxide as the controlling variable. And although mankind’s CO2 contributions are small — compared to the much larger but uncertain natural exchanges with both the oceans and the biosphere — they are confident that they know precisely what policies to implement in order to control CO2 levels.”

    • Sea level has been increasing by about 8 inches per century for hundreds of years, and we have clearly been able to deal with it. In order to promote fear, however, those models that predict much larger increases are invoked. As a practical matter, it has long been known that at most coastal locations, changes in sea level, as measured by tide gauges, are primarily due to changes in land level associated with both tectonics and land use.

    • The small change in global mean temperature (actually the change in temperature increase) is much smaller than what the computer models used by the IPCC have predicted. Even if all this change were due to man, it would be most consistent with low sensitivity to added carbon dioxide, and the IPCC only claims that most (not all) of the warming over the past 60 years is due to man’s activities. Thus, the issue of man-made climate change does not appear to be a serious problem. However, this hardly stops ignorant politicians from declaring that the IPCC’s claim of attribution is tantamount to unambiguous proof of coming disaster

    • Cherry picking is always an issue. Thus, there has been a recent claim that Greenland ice discharge has increased, and that warming will make it worse. Omitted from the report is the finding by both NOAA and the Danish Meteorological Institute that the ice mass of Greenland has actually been increasing. In fact both these observations can be true, and, indeed, ice build-up pushes peripheral ice into the sea.

    • Misrepresentation, exaggeration, cherry picking, or outright lying pretty much covers all the so-called evidence.

    Lindzen’s entire speech is much needed and worth reading. Simply because the IPCC names its process as science, does not make it science.

  • Tether Tumbles Below Critical $1 Threshold As Dollar-Pegged Crypto Doubts Soar

    Update: Careful to quickly assuage any potential loss of the narrative and ‘full faith and credit’ of the ‘stablecoin’, Tether released a statement on USDT drop:

    “We would like to reiterate that although markets have shown temporary fluctuations in price, all USDT in circulation are sufficiently backed by U.S. dollars (USD) and that assets have always exceeded liabilities.”

    See, nothing to panic about.

    *  *  *

    The only cryptocurrency not rallying right now is the one pegged to the U.S. dollar.

    The week started off green for cryptocurrencies like Bitcoin, Ripple, and Ethereum. Collectively, the three of them rose by about 7% according to a CNBC article out early Monday morning. Bitcoin came close to topping $7,000 again, but digital currencies remain in the midst of a longer-term downtrend that has continued over the last year.

    This downtrend among all cryptos was exacerbated by the sharp moves lower in equity markets last week, which prompted billions of dollars of digital currency market cap to be wiped away. But Monday kicked off a new week and cryptos are all trying to bounce or pare their losses from last week (for now, at least).

    Interestingly enough, the only crypto not participating in the early week rally is Tether, a digital currency that is pegged to the US dollar. Tether was trading 2.5% lower, down to $0.965, after falling much lower earlier in the morning. 

    This chart of the carnage, as it happened on the Kraken exchange, was posted at about 2AM EST on Monday morning by Twitter user @Bitfinexed. It shows Tether printing as low as $0.85:

    The firm that runs the digital currency, Tether, Ltd., has recently been questioned about whether or not it holds enough “reserves” to match the amount of tokens in circulation. The company claims that it does.

    Charles Hayter, the chief executive of comparison site CryptoCompare, told CNBC: “There is concern about Tether and whether it is truly backed by dollars and rumors about USDT (tether) being delisted from various exchanges.”

    These delisting rumors probably aren’t helping quell volatility, either. This comes after one industry publication claims that Bitfinex, a cryptocurrency exchange connected to Tether, has suspended deposits in US Dollars, Euros, Sterling and Yen.

    Mati Greenspan, senior market analyst at eToro, told CNBC: “If the perception that tether can hold a stable value is called into question, traders who are holding USDT are most likely to shift their funds into other cryptos in order to hold their value.”

    The point of Tether isn’t necessarily to appreciate in value, but rather it is known as a “stablecoin” because it is supposed to, in theory, always trade around one dollar. The digital currency is seen as a way for those worried about the volatility of fiat-to-crypto exchange rates to ensure that they can reliably convert US dollars into digital currencies.

    From there, Tether can be used to purchase other digital currencies like Bitcoin and Ethereum.

    The question of whether or not Tether’s parent company holds enough in reserves is hardly the first controversy for the coin. We released a report days ago highlighting finance professor John Griffin, who, along with his doctoral student companion, Amin Shams, was one of the two academics that drew market-moving conclusions about bitcoin last year, while the digital currency was trading around $20,000. After sifting through 2 terabytes of trading data, they alleged that bitcoin was being manipulated by someone using Tether to purchase it.

    To us, Tether seems like a counterintuitive idea in the sense that it is backed by Fiat, which is the main problem that Bitcoin initially seeked to solve. Forgive us if we are not surprised when the only digital currency that tries to be more like the dollar instead of less like it, winds up being one of the firsts to collapse. 

  • Veritas Undercover Exposes MO Sen. McCaskill Hiding Liberal Agenda From Moderate Voters: "People Just Can't Know That"

    In the third undercover video filmed by Project Veritas  during the ongoing 2018 election season, Missouri Senator McCaskill’s considerably more liberal views – “essentially the same as [Obama’s]” – are exposed as she and her campaign staff conceals them in order to court moderate voters… and she needs them as her and her opponent are essentially tied:

    Via ProjectVeritasAction.com,

    Said James O’Keefe, founder and president of Project Veritas Action:

    “This undercover report shows just how broken our political system has become. Senator McCaskill hides her true views from voters because she knows they won’t like them.” 

    Senator McCaskill Talks Gun Bans on Tape

    Senator McCaskill revealed her intention to vote on various gun control measures in undercover footage:

    MCCASKILL: “Well if we elect enough Democrats we’ll get some gun safety stuff done. They won’t let us vote on it, we’ve got 60 votes for a number of measures that would help with gun safety, but McConnell won’t let ’em come to the floor.”

    JOURNALIST: “Like bump stocks, ARs and high capacity mags…?”

    MCCASKILL: “Universal background checks, all of that… But if we have the kind of year I think we might have I think we could actually be in a position to get votes on this stuff on the floor and we’d get 60 [votes]…”

    JOURNALIST: “So you would be on board with the bump stocks and… high capacity mags.”

    MCCASKILL: “Of course! Of course!”

    Despite her strong views on gun control, Senator McCaskill does not tend to promote them on the campaign trail or on her website. Rob Mills, who works on Senator McCaskill’s campaign, says that is “…because she has a bunch of Republican voters.”

    Another individual who works on Senator McCaskill campaign, Carson Pope, adds that “…a semi-automatic rifle ban is more so what she would support.”

    “People just can’t know that.”

    According to Mills, Senator McCaskill conceals her support of Moms Demand Action, a gun control group, and other similar organizations because they would “…hurt her ability to get elected.”

    MILLS: “But she doesn’t openly go out and support groups like ‘Mom’s Demand Action’ or just like other groups that are related to that. Because that could hurt, her ability to get elected. Because people like see that and they’re like well I don’t want to support her even though they stand for the same policies…”

    MILLS: “She’s worked out stuff with Mom’s Demand Action to make sure that she can support their goals without supporting the organization openly. And you know, Mom’s Demand Action does the exact same thing. Like a lot of our volunteers are actually from there. She’s really good about strategy and making sure she has a goal and can get there.”

    Nicolas Starost, another individual who works on Senator McCaskill’s campaign, explains how President Obama won’t campaign for Senator McCaskill in Missouri despite their similar views on politics. Starost says this is because Senator McCaskill needs to distance herself from the Democratic party to appeal to more voters:

    STAROST: “Because of how like, cause he’s a very liberal candidate. And like… Claire distancing herself from the party is gonna help her win more votes than it will saying like: “Oh here’s Obama, the former President of the United States, to now speak on my behalf.” Which is unfortunate because I love Obama to pieces, and I’d love to see him come here.”

    JOURNALIST: “And they essentially have the same views on everything?”

    STAROST: “Yeah. People just can’t know that.”

    Impeachment

    Another individual who works on Senator McCaskill’s campaign, Glen Winfrey, explains plans for the impeachment of President Trump:

    JOURNALIST: “So, here’s the real question, Claire holds off on impeachment to get the moderate. What do we tell the moderates when we drop the impeachment hammer afterward?”

    WINFREY: “Get over it. It was a national security question. That information was confidential, and she did her duty by not revealing the information until afterward.”

  • Obese Millennials Are "Threatening National Security," New Study Finds

    Once again, millennials are making a mess of things, and this time it could “threaten national security,” according to a new report which found that approximately 71% of millennials aged 17 to 24 – the prime age to enlist in America’s armed forces and fight a foreign war in the Middle East – are non-recruitable, with obesity disqualifying about 31% of them. 

    The Council for a Strong America, a nonprofit team of law enforcement leaders, retired admirals and generals, business executives, pastors, and prominent coaches and athletes who promote solutions that ensure America’s next-generation is “citizen-ready,” published the study on Wednesday, called “Unhealthy and Unprepared,” warns that America’s rising number of overweight millennials are going to have a significant impact on the military’s ability to win a future war. 

    “Out of all the reasons that we have future soldiers disqualify, the largest – 31% – is obesity,” Maj. Gen. Frank Muth, head of Army Recruiting Command, said Wednesday at AUSA’s annual meeting in Washington, D.C. 

    This year, the Army missed its recruiting goals for the first time since 2005, and the study warned: as the obesity epidemic grows, these recruiting challenges will continue unless immediate countermeasures are enacted to promote healthy lifestyles for youth. 

    The report offered several ideas on how to suppress the out of control obesity epidemic ravaging millennials. One solution is to focus on nutrition and physical activity from a young age, which can condition children to live healthier lifestyles to prepare for any career.

    Proper nutrition and physical activity are the building blocks of a stronger and healthier generation that will ultimately increase the military’s future recruiting goals before the next conflict with Russia and or China. The report said it starts with parents and educators that teach children about healthy eating and exercise habits, while state and federal officials must adopt public school programs that promote nutrition and encourage physical activity from an early age.

    Meanwhile, American exceptionalism is waning, and it’s not only due to fast food. The Army missed recruiting goals this year, which should serve as a warning: the US is ill-prepared to engage in a military conflict.

    The study concluded and said: “trends in obesity must be reversed before our national security is further comprised.” And while the report did offer some token solutions how to fix the obesity problem, the damage has already been done, and to reverse such a dramatic trend will take decades; the question is whether America’s next armed conflict will wait that long?

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Today’s News 15th October 2018

  • F-16 Jets Explode After Mechanic Fires Cannon From Another Parked Jet In Bizarre Accident

    An almost unbelievable accident occurred at a Belgian military air base days ago which involved one F-16 jet destroying two others — all while stationary on the ground. 

    Stunning photos of the aftermath show a completely destroyed Belgian Air Force F-16 fighter and another severely damaged one after a third fired its M61A1 Vulcan 20mm cannon across the flight line while parked. “You can’t help thinking of what a disaster this could have been,” base commander Col. Didier Polome told a Belgian television news station in the aftermath.

    The incident happened last Friday at Florennes Air Base in Southern Belgium during routine maintenance of the jet that fired, and reportedly involved the crew servicing an F-16 accidentally triggering the heavy aircraft cannon.

    Destroyed F-16 at Florennes Air Base in Belgium. Image source: Tony Delvita via The Aviationist

    The Aviationist reports the following of what is being described as a “bizarre accident“: 

    Multiple reports indicate that a mechanic servicing the parked aircraft accidentally fired the six-barreled 20mm Vulcan cannon at close range to two other parked F-16s. Photos show one F-16AM completely destroyed on the ground at Florennes. Two maintenance personnel were reported injured and treated at the scene in the bizarre accident.

    The aircraft being serviced had just been refuelled and had its six barrel cannon loaded as it was being prepped for an afternoon training mission. 

    The impact of the 20mm bullets on the other aircraft, which the crew said was just out of eyesight, caused the jet that was struck to explode instantly, according to reports. 

    Image via The Aviationist

    A report on the monitoring website F-16.net described that, “An F-16 (tail number FA-128) was completely destroyed while a second F-16 received collateral damage from the explosions. Two personnel were wounded and treated at the scene. Injuries sustained were mainly hearing related from the explosion.”

    Thick black smoke could be seen for miles around the area, to which scores of emergency personnel were immediately dispatched. 

    According to a defense analysis source, Belgium currently has 60 active F-16 aircraft, including 48 on duty for NATO.

    The Aviationist describes the exceedingly bizarre nature of the incident, which sounds like something one would see in an over the top Hollywood movie scene:

    The accident is quite weird: it’s not clear why the technician was working on an armed aircraft that close to the flight line. Not even the type of inspection or work has been unveiled. For sure it must have been a check that activated the gun even though the aircraft was on the ground: the use of the onboard weapons (including the gun) is usually blocked by a fail-safe switch when the aircraft has the gear down with the purpose of preventing similar accidents.

    But clearly there were no fail-safes that prevented this strange incident involving a hail of ground fire across a runway. 

    Scramble Magazine published the following photo showing how the aircraft are usually aligned, and delineated the angle of the cannon fire.

    Source: Scramble Magazine

    Belgium’s Ministry of Defense announced it has launched a formal investigation into the incident. The F-16 fighters cost around $20 million a piece — so the price tag for Friday’s accident is going to be quite steep. 

    To our knowledge the incident was not caught on film, or at least it hasn’t been released to the public. 

    However, to visualize how devastating the 20mm Vulcan cannon is, especially at close range, here’s some test footage of the ultra-rapid aircraft mounted machine gun at work:

  • NATO Coordinates Information War On Russia

    Via The Strategic Culture Foundation,

    The US, Britain and other NATO allies upped the ante this week with a coordinated campaign of information war to criminalize Russia. Moscow dismissed the wide-ranging claims as “spy mania”. But the implications amount to a grave assault recklessly escalating international tensions with Russia.

    The accusations that the Kremlin is running a global cyberattack operation are tantamount to accusing Russia of “acts of war”. That, in turn, is creating a pretext for NATO powers to carry out “defensive” actions on Moscow, including increased economic and diplomatic sanctions against Russia, as well as “counter” cyberattacks on Russian territory.

    This is a highly dangerous dynamic that could ultimately lead to military confrontation between nuclear-armed states.

    There are notably suspicious signs that the latest accusations against Russia are a coordinated effort to contrive false charges.

    First, there is the concerted nature of the claims. British state intelligence initiated the latest phase of information war by claiming that Russian military intelligence, GRU, was conducting cyberattacks on infrastructure and industries in various countries, costing national economies “millions of pounds” in damages.

    Then, within hours of the British claims, the United States and Canada, as well as NATO partners Australia and New Zealand followed up with similar highly publicized accusations against Russia. It is significant that those Anglophone countries, known as the “Five Eyes”, have a long history of intelligence collaboration going back to the Cold War years against the Soviet Union.

    The Netherlands, another NATO member, added to the “spy mania” by claiming it had expelled four members of Russian state intelligence earlier this year for allegedly trying to hack into the headquarters of the Organization for the Prohibition of Chemical Weapons (OPCW), based in The Hague.

    There then followed predictable condemnations of Russia from the NATO leadership and the European Union. NATO was holding a summit in Brussels this week. It is therefore plausible that the timing of the latest claims of Russian “malign activity” was meant to coordinate with the NATO summit.

    More sanctions against Moscow are expected – further intensifying tensions from already existing sanctions. More sinister were NATO warnings that the military alliance would take collective action over what it asserts are Russian cyberattacks.

    This is creating a “casus belli” situation whereby the 29 NATO members can invoke a common defense clause for punitive actions against Russia. Given the rampant nature of the claims of “Russian interference” and that certain NATO members are rabidly Russophobic, it is all too easily dangerous for cyber “false flags” to be mounted in order to criminalize Moscow.

    Another telltale factor is that the claims made this week by Britain and the other NATO partners are an attempt to integrate all previous claims of Russian “malign activity”.

    The alleged cyber hacking by Russia, it is claimed, was intended to disrupt OPCW investigations into the purported poison-assassination plot against Sergei Skripal, the former Russian spy living in Britain; the alleged hacking was also claimed to be aimed at disrupting investigations into alleged chemical weapons atrocities committed by the Syrian government and by extension Syria’s ally Russia; the alleged Russian hacking claims were also linked to charges of Olympic athletes doping, as well as “interference in US elections”; and even, it was asserted, Russia trying to sabotage investigations into the downing of the Malaysian civilian airliner over Ukraine in 2014.

    Up to now, it seems, all such wildly speculative anti-Russia narratives have failed to gain traction among world public opinion. Simply due to the lack of evidence to support these Western accusations. The Skripal affair has perhaps turned into the biggest farce. British government claims that the Kremlin ordered an assassination have floundered to the point of ridicule.

    It is hardly coincidence that Britain and its NATO allies are compelled to shore up the Skripal narrative and other anti-Russian narratives with the ramped up “global cyberattack” claims made this week.

    Photographs of alleged Russian intelligence operatives have been published. Potboiler indictments have been filed – again – by US law enforcement agencies. Verdicts have been cast by NATO governments and compliant news media of Russian state culpability, without Moscow being given a fair chance to respond to the “highly likely” claims. Claims and narratives are being accelerated, integrated and railroaded.

    It is well-established from the explosive disclosures by Edward Snowden, among other whistleblowers, that the American CIA and its partners have the cyber tools to create false “digital fingerprints” for the purpose of framing up enemies. Moreover, the vast cyber surveillance operations carried out by the US and its “Five Eyes” partners – much of which is illegal – is an ironic counterpoint to accusations being made against Russia.

    It is also possible in the murky world of all foreign states conducting espionage and information-gathering that attribution of wrongdoing by Russia can be easily exaggerated and made to look like a campaign of cyberattacks.

    There is a lawless climate today in the US and other Western states where mere allegations are cited as “proof”. The legal principle of being innocent until proven guilty has been jettisoned. The debacle in the US over a Supreme Court judge nominee is testament to the erosion of due process and legal standards.

    But what is all the more reprehensible and reckless is the intensification of criminalization of Russia – based on flimsy “evidence” or none at all. When such criminalization is then used to “justify” calls for a US-led naval blockade of Russian commercial oil trade the conditions are moving inevitably towards military confrontation. The blame for belligerence lies squarely with the NATO powers.

    A further irony is that the “spy mania” demonizing Russia is being made necessary because of the wholly unsubstantiated previous claims of Moscow’s malfeasance and “aggression”. Illusions and lies are being compounded with yet more bombastic, illusory claims.

    NATO’s information war against Russia is becoming a self-fulfilling “psy-op”. In the deplorable absence of normal diplomatic conduct and respect for international law, NATO’s information war is out of control. It is pushing relations with Russia to the abyss.

  • Want To Boost Your Salary? Try Moving To Singapore

    Are you a diligent US-based worker who’s tired of watching inflation wipe out what little wage gains you’ve managed to scrape together over the past few years? Well, if you’re looking for a pay boost, but don’t want to go through all the trouble of finding another better-paying job, Bloomberg has a suggestion: Try moving to Singapore.

    Switzerland

    According to HSBC’s annual Expat Explorer, 45% of expats reported earning more money working abroad than they did working in the US. For the average expat, moving abroad boosted their pay by 21%, with the highest-paying jobs found in the US, Singapore and Hong Kong.

    Switzerland

    Expats living in Switzerland, notorious for its high cost of living, reported an annual income boost totaling $61,000. Salaries averaged $203,000 per year, twice the global level. 

    Show

    Meanwhile, Singapore was ranked best place to live and work for a fourth straight year, ahead of New Zealand, Germany and Canada, while Switzerland (probably because of the high cost of living mentioned above) ranked eighth.

    “Singapore packs everything a budding expat could want into one of the world’s smallest territories,” said John Goddard, head of HSBC Expat.

    Sweden won first place in the ‘family’ category, while New Zealand, Spain and Taiwan led the ‘experience’ category.

    If moving abroad has always been a personal dream, then HSBC can name myriad benefits – both financial and familial – that often accompany expat status. However, the report had its blemishes. For example, the survey of 22,318 people showed that women often trailed behind men in terms of the level of benefit they experienced. For example, relocating only boosted a woman’s income by 27%, compared with 47% for men (apparently, HSBC found, the fabled wealth gap exists outside the confines of the US).

    But the bank also found several justifications for this that had nothing to do with women being paid less for doing the same exact job. Just half the women surveyed worked full time, and the average level of education was lower for women than for men.

  • Did Saudis, CIA Fear Khashoggi 9/11 Bombshell?

    Authored by Finian Cunningham via The Strategic Culture Foundation,

    The macabre case of missing journalist Jamal Khashoggi raises the question: did Saudi rulers fear him revealing highly damaging information on their secret dealings? In particular, possible involvement in the 9/11 terror attacks on New York in 2001.

    Even more intriguing are US media reports now emerging that American intelligence had snooped on and were aware of Saudi officials making plans to capture Khashoggi prior to his apparent disappearance at the Saudi consulate in Istanbul last week. If the Americans knew the journalist’s life was in danger, why didn’t they tip him off to avoid his doom?

    Jamal Khashoggi (59) had gone rogue, from the Saudi elite’s point of view. Formerly a senior editor in Saudi state media and an advisor to the royal court, he was imminently connected and versed in House of Saud affairs. As one commentator cryptically put it: “He knew where all the bodies were buried.”

    For the past year, Khashoggi went into self-imposed exile, taking up residence in the US, where he began writing opinion columns for the Washington Post.

    Khashoggi’s articles appeared to be taking on increasingly critical tone against the heir to the Saudi throne, Crown Prince Mohammed bin Salman. The 33-year-old Crown Prince, or MbS as he’s known, is de facto ruler of the oil-rich kingdom, in place of his aging father, King Salman.

    While Western media and several leaders, such as Presidents Trump and Macron, have been indulging MbS as “a reformer”, Khashoggi was spoiling this Saudi public relations effort by criticizing the war in Yemen, the blockade on Qatar and the crackdown on Saudi critics back home.

    However, what may have caused the Saudi royals more concern was what Khashoggi knew about darker, dirtier matters. And not just the Saudis, but American deep state actors as as well.

    He was formerly a media aide to Prince Turki al Faisal, who is an eminence gris figure in Saudi intelligence, with its systematic relations to American and British counterparts. Prince Turki’s father, Faisal, was formerly the king of Saudi Arabia until his assassination in 1975 by a family rival. Faisal was a half-brother of the present king, Salman, and therefore Prince Turki is a cousin of the Crown Prince – albeit at 73 more than twice his age.

    For nearly 23 years, from 1977 to 2001, Prince Turki was the director of the Mukhabarat, the Saudi state intelligence apparatus. He was instrumental in Saudi, American and British organization of the mujahideen fighters in Afghanistan to combat Soviet forces. Those militants in Afghanistan later evolved into the al Qaeda terror network, which has served as a cat’s paw in various US proxy wars across the Middle East, North Africa and Central Asia, including Russia’s backyard in the Caucasus.

    Ten days before the 9/11 terror attacks on New York City, in which some 3,000 Americans died, Prince Turki retired from his post as head of Saudi intelligence. It was an abrupt departure, well before his tenure was due to expire.

    There has previously been speculation in US media that this senior Saudi figure knew in advance that something major was going down on 9/11. At least 15 of the 19 Arabs who allegedly hijacked three commercial airplanes that day were Saudi nationals.

    Prince Turki has subsequently been named in a 2002 lawsuit mounted by families of 9/11 victims. There is little suggestion he was wittingly involved in organizing the terror plot. Later public comments indicated that Prince Turki was horrified by the atrocity. But the question is: did he know of the impending incident, and did he alert US intelligence, which then did not take appropriate action to prevent it?

    Jamal Khashoggi had long served as a trusted media advisor to Prince Turki, before the latter resigned from public office in 2007. Following 9/11, Turki was the Saudi ambassador to both the US and Britain.

    A tentative idea here is that Khashoggi, in his close dealings with Prince Turki over the years, may have gleaned highly sensitive inside information on what actually happened on 9/11. Were the Arab hijackers mere patsies used by the American CIA to facilitate an event which has since been used by American military planners to launch a global “war on terror” as a cover for illegal wars overseas? There is a huge body of evidence that the 9/11 attacks were indeed a “false flag” event orchestrated by the US deep state as a pretext for its imperialist rampages.

    The apparent abduction and murder last week of Jamal Khashoggi seems such an astoundingly desperate move by the Saudi rulers. More evidence is emerging from Turkish sources that the journalist was indeed lured to the consulate in Istanbul where he was killed by a 15-member hit squad. Reports are saying that the alleged assassination was ordered at the highest level of the Saudi royal court, which implicates Crown Prince MbS.

    Why would the Saudi rulers order such a heinous act, which would inevitably lead to acute political problems, as we are seeing in the fallout from governments and media coverage around the world?

    Over the past year, the House of Saud had been appealing to Khashoggi to return to Riyadh and resume his services as a media advisor to the royal court. He declined, fearing that something more sinister was afoot. When Khashoggi turned up in Istanbul to collect a divorce document from the Saudi consulate on September 28, it appears that the House of Saud decided to nab him. He was told to return to the consulate on October 2. On that same day, the 15-member group arrived from Riyadh on two private Gulfstream jets for the mission to kill him.

    Official Saudi claims stretch credulity. They say Khashoggi left the consulate building unharmed by a backdoor, although they won’t provide CCTV images to prove that. The Turks say their own CCTV facilities monitoring the front and back of the Saudi consulate show that Khashoggi did not leave the premises. The Turks seem confident of their claim he was murdered inside the building, his remains dismembered and removed in diplomatic vehicles. The two private jets left the same day from Istanbul with the 15 Saudis onboard to return to Riyadh, via Cairo and Dubai.

    To carry out such a reckless act, the Saudis must have been alarmed by Khashoggi’s critical commentaries appearing in the Washington Post. The columns appeared to be delivering more and more damaging insights into the regime under Crown Prince MbS.

    The Washington Post this week is reporting that US intelligence sources knew from telecom intercepts that the Saudis were planning to abduct Khashoggi. That implicates the House of Saud in a dastardly premeditated act of murder.

    But furthermore this same disclosure could also, unwittingly, implicate US intelligence. If the latter knew of a malicious intent towards Khashoggi, why didn’t US agents warn him about going to the Saudi consulate in Istanbul? Surely, he could have obtained the same personal documents from the Saudi embassy in Washington DC, a country where he was residing and would have been safer.

    Jamal Khashoggi may have known too many dark secrets about US and Saudi intel collusion, primarily related to the 9/11 terror incidents. And with his increasing volubility as a critical journalist in a prominent American news outlet, it may have been time to silence him. The Saudis as hitmen, the American CIA as facilitators.

  • Scientists Freak Out Over Pandemic Potential Of Genetically Engineered Smallpox

    Following the release of a paper earlier this year which describes how researchers stitched together segments of DNA in order to revive horsepox – a previously eradicated virus, scientists have been flipping out over the possibility that bad actors may use the study as a blueprint to revive smallpox. 

    The disease killed an estimated 300 million people before the World Health Organization deemed it eradicated following a long vaccination campaign. Thus, the publication of a method for reviving a closely related disease has understandably raised some red flags within the scientific community, reports futurism.com

    Critics argue that the paper not only demonstrates that you can synthesize a deadly pathogen for what Science reported was about US$100,000 in lab expenses, but even provides a slightly-too-detailed-for-comfort overview of how to do it.

    Some of the horsepox scientists’ coworkers are still pretty upset about this. PLOS One’s sister Journal, PLOS Pathogens, just published three opinion pieces about the whole flap, as well as a rebuttal by the Canadian professors.

    Overall, everyone’s pretty polite. But you get the sense that microbiologists are really, really worried about someone reviving smallpox. –futurism.com

    Prior to its eradication, smallpox was primarily spread by direct and fairly prolonged face-to-face contact between people. Once the first sores appeared in the mouth and throat (the early rash stage), they were contagious until the last smallpox scab fell off. According to the CDC, “these scabs and the fluid found in the patient’s sores also contained the variola virus. The virus can spread through these materials or through the objects contaminated by them, such as bedding or clothing. People who cared for smallpox patients and washed their bedding or clothing had to wear gloves and take care to not get infected.”

    Smallpox sores (photo: CDC)

    What would a smallpox bioterror attack look like? Via the CDC:

    Most likely, if smallpox is released into the United States as a bioterrorist attack, public health authorities will find out once the first person sick with the disease goes to a hospital for treatment of an unknown illness. Doctors will examine the person and use tools developed by CDC to figure out if the person’s signs and symptoms are similar to those of smallpox. If doctors suspect the person has smallpox, they will care for the person and isolate them in the hospital so that others do not come in contact with the smallpox virus. The medical staff at the hospital will contact local public health authorities to let them know they have a patient who might have smallpox.

    Local public health authorities would then alert public health officials at the state and federal level, such as CDC, to help diagnose the disease. If experts confirm the illness is smallpox, then CDC, along with state and local public health authorities, will put into place their plans to respond to a bioterrorist attack with smallpox.

    Kevin Esvelt, a biochemist at MIT, wrote on Thursday that the threat is so significant that “it may be wise to begin encouraging norms of caution among authors, peer reviewers, editors, and journalists.” 

    At present, we decidedly err on the side of spreading all information.

    Despite entirely predictable advances in DNA assembly, every human with an internet connection can access the genetic blueprints of viruses that might kill millions.

    These and worse hazards are conveniently summarized by certain Wikipedia articles, which helpfully cite technical literature relevant to misuse.

    Note the deliberate absence of citations in the above paragraph. Citing or linking to already public information hazards may seem nearly harmless, but each instance contributes to a tragedy of the commons in which truly dangerous technical details become readily accessible to everyone.

    Given that it takes just one well-meaning scientist to irretrievably release a technological information hazard from the metaphorical bottle, it may be wise to begin encouraging norms of caution among authors, peer reviewers, editors, and journalists. –PLOS

    Esvelt blamed the media for amplifying the negative potential of smallpox synthesis as well: 

    DNA synthesis is becoming accessible to a wide variety of people, and the instructions for doing nasty things are freely available online.

    In the horsepox study, for instance, the information hazard is partly in the paper and the methods they described.

    But it’s also in the media covering it and highlighting that something bad can be done. And this is worsened by the people who are alarmed, because we talk to journalists about the potential harm, and that just feeds into it. –MIT News

    The Canadian professors, meanwhile, shot back at their critics – arguing that smallpox was bound to be synthesized at some point anyway. 

    Realistically all attempts to oppose technological advances have failed over centuries.

    We suggest that one should instead focus on regulating the products of these technologies while educating people of the need to plan mitigating strategies based upon a sound understanding of the risks that such work might pose.

    In these discussions, a long-term perspective is essential. –PLOS

    In short, prepare for the Jurassic Park of deadly pathogens and their pandemic potential.  

  • A Glimpse Beyond The Unipolar Moment

    Authored by Norman Ball via The Saker blog,

    “Potentially the most dangerous scenario would be a grand coalition of China, Russia and perhaps Iran, an ‘anti-hegemonic’ coalition, united not by ideology but by complementary grievances” —Zbigniew Brzezinski

    Are we reaching the penultimate and petulant back-end of the American Empire’s Unipolar Moment, a denouement hastened by a raft of sanctions regimes as imperiously doled out as they are laden with unconsidered paradox?

    Though the sun is prohibited from casting its light between them, Nation and Empire are not an organically indivisible formation. Indeed Americans, no less than others, should relish the prospect of a resumed, unalloyed nationhood after decades of Empire co-optation. Few Americans realize the skulking entity that looms in the shadows of their overrun and diminished formal institutions as being a separable imposition capable of (to use a Benjamin Netanyahu phrase) drying up and blowing away.

    Empire overlay is an uninvited and usurping agent bent on hostile, world-conquering aims to which America plays safe harbor and unwitting hostage in equal parts. Though the mode of exploitation varies, no nation on the world stage is left untouched by transnational exploitation.

    America, like all nations, is a boundaried fixity; whereas Empire despite travelling under the former’s name is a projective and extraterritorial expanse whose designs exceed the devise and interests of the nation-host itself. Invariably Empire doesn’t so much succumb to overreach as it overreaches the capacities of its nation-host; wrecking the balance sheet, debauching the currency, taxing the capacities of the deputized military and (most importantly as we shall see) sullying the conceptual coordinates so central to a nation’s actionable sense of self.

    Post-Empire, the nation-host suffers the aftermath of ruinous inflation or worse. Empire, a continuous organism, bides its time before alighting elsewhere. Thus unipolarity is an Empire project in the same manner a tapeworm mimics the appetites of its host, the afflicted nation being little more than a body-snatched, debt-amassing hostage-vessel.

    Daniel 2’s prophesied statue gives anthropic form (and thus systemic coherence) to Empire succession. Each empire ‘chapter’ pours into the next with corporeal fluidity, the respective statue material and animal totem befitting the situational needs of Empire in that historical moment. The anatomy suggests an eschatological continuum, hardly a severed procession of akimbo body parts. The purposeful succession of empires conducts human history to a terminus.

    Usury is the arithmetically ordained travel-partner or Empire. Indeed the latter is more Babylonian mystery than secular-geopolitical formation. Through it, all earthly power and wealth is to be gathered under one aegis until no nation can lay claim to an autonomous storehouse. The whole purpose of human history is demonic consolidation by the God of this World.

    In the same way, the events of the world prove less yielding to geopolitical analysis absent an explicit awareness of Paul’s Principalities or the slow-thighed onset of the Antichrist/Dajjal. As human history thins like gruel in the twilight, the spiritual backdrop moves inexorably to the fore.

    (Understanding the present moment demands continual oscillation between the world-beyond and the world-at-hand. So be it.)

    Sanctions negate the very notion of empiric expansion. Beneath all the bluster, continual recourse to a ‘remedy of retreat’ signals the exhaustion of Empire’s Pax Americana phase. Like medieval bleeding, the cure soon exceeds the lethality of the underlining disease.

    For the moment, America’s economic activity, 25% of the world’s GDP, is a big party to be dis-invited from. Furthermore, 70% of that GDP is buffered from international trade disruptions as it consists of internal consumption. (In China, for example, the figure is closer to 40%). When push comes to shove the US economy is sufficiently self-contained such that a protracted period of inwardness is a viable course of action.

    Joseph Micallef hardly overstate things trumpeting the arrival of American energy independence. One wonders how the Empire would coax the Nation to do its bidding absent the inducement of vulnerable overseas energy supplies. Of course this too argues for the end of the American phase of Empire:

    “U.S. energy independence is going to be a game changer in international affairs and will have far-ranging consequences. It will drive a reorientation of U.S. foreign policy as profound as that driven by American dependence on foreign oil in the second half of the 20th century.”

    While inconsistent with empiric expansion, sanctions and their threat can for a time inflict asymmetric damage on the sanctioned party –until some vague tipping point is reached.

    Midwives to a nascent neo-nationalist era, President Trump and his formidable trade team have been leveraging (some would say weaponizing) America’s economic primacy in order to redirect product origination and trade flows.

    For example the USMCA’s closing of the infamous NAFTA loophole or ‘trade toll’ will be a huge boon to US consumers and workers alike, not to mention an indirect trade assault on China which advantaged the loophole via finished goods assembly plants in Canada and Mexico. The so-called ‘regional vehicle content’ has been boosted from 62.5% to 75%.

    What are the implications of this USMCA provision alone? Lexicology explains:

    “Mexico and Canada are pushing for the smallest amount of North American parts in NAFTA automobile production. This means that Mexico and Canada can import the difference from China, Asia or Europe, finish the product with some basic assembly and then pass off the product to the American market- saving big money on tariffs for the original producing country in the process.”

    The necessity of a resurgent manufacturing base is being characterized (correctly) as a national security (if not even a national dignity) issue with implications far beyond the usual econometric equilibrations.

    What the world needs to understand is that the unacknowledged obverse of America First is Empire Never Again. America’s self-reclamation process on the trade front will be a boon for the planet. Re-nationalization is synonymous with ‘de-empirization’. As America reacquaints with nation-among-nations status, multipolar clusters will fill the void.

    America the Empire routinely pulls the wool over America the Nation’s eyes. One deft bit of corporatist misdirection (articulated through that multinational stalking horse, the US Chamber of Commerce) has been to assure Americans they could thrive as a service-sector economy.

    As nothing is gained alerting regular Americans to the divergent interests of Empire and Nation, the Empire is adept at posing as the Nation. (Besides, what people would knowingly seek empiric imprimatu anyway, a dubious appointment demanding more blood and treasure than it ever bestows?)

    Globalists would have us favorably envision a world where the US holds the edge in 2030 Powerpoint presentations while China captures the high-performance medical device and industrial robotics markets. As Yogi Berra might say, “all left-handers over here to flip charts, all right-handers over there to flip burgers.  The rest of you come with me.” Yes, but where to exactly, Yogi? The Argentine Paradox circa 1950?

    The same can be said for Made in China 2025, from a Chinese perspective of course. Geopolitical hegemony is the goal, economic nationalism the rallying cry for respective domestic audiences. No wonder trade wars metastasize into shooting wars. No less than everything is at stake.

    (Some expect that, with centuries of practice under its belt, the Chinese empire model, historically one of ebb-and-flow concentric flexibility, will improve upon the winner-take-all Western model. Time may tell.)

    Parsimonious when it comes to sharing the planet’s ill-gotten gains with its erstwhile nation-host (American real incomes peaked in 1973), Empire is all too willing both to off-load the debt burden and share the vainglory of its overseas military exploits.

    We seek evidence of the Heartland tiring of its conscription obligations, or that their nation’s subsidiary role has even dawned on the average American after nearly two decades of ruinously fruitless overseas campaigns. The enthusiastic reception afforded Clint Eastwood’s 2014 movie American Sniper —to belabor one cultural touchstone– is hardly a bullish indicator.

    In fact, the Nation still wraps itself in the Empire’s exploits with a patriotic vigor that obliges it to insist, against all evidence, that Iraq and Afghanistan were missions of existential import to the safeguarding of American neighborhoods. That this misprision persists is a powerful testament to the Empire’s ability to enforce and sustain a narrative steeped in false consciousness to which clarifying epiphanies must forever be kept at bay. In recent months scores of alt-media sources have been exiled from Youtube in veiled recognition of their counter-narrative incursions. The Empire cannot relinquish narrative hegemony. The most decisive conflicts are conceptual.

    Sartre famously called this insistent and externalized apparatus of persuasion America’s ‘implacable machine’. Eastwood, the Leni Riefenstahl of our time, fashions empire exploits into pastiches of Americana. This is pure propaganda. Empire is a rapaciously unnatural imposition. Rooted in no soil, it descends from above. Transnationalism sustains itself on grassroots alienation and collective misdirection.

    The Vineyard’s Saker indirectly acknowledges this differentiated two-headedness when he says, “Russia does represent an existential threat, not for the United States as a country or for its people, but for the AngloZionist Empire, just as the latter represents an existential threat to Russia.” He might just as easily have extended the empire threat to America itself. Where Saker offers daylight, Eastwood extends the darkness of a confused nation.

    It would surprise many Americans to know that their nation hosts one of the least democratically answerable national governments in the world (though far fewer would be surprised today than, say, two years ago). Trump, the exogenous usurper, is trying to reverse this expropriation of the country’s traditional Madisonian Institutions by the Security State’s Trumanite Network (what Michael Glennon calls our Double Government, the prior terminology being his).

    How did the empire accomplish this parallel sovereignty?

    The hijack occurred in two sizable chunks (the 1947 National Security Act and the USA Patriot Act of 2001). Yes, America has a divided government alright. Just not in the sense American civics classes define the concept.

    Moreover this sovereignty split occurred without benefit of referendum or Constitutional Convention. The division was assented to –and furtively institutionalized– over the ensuing post-WW2 decades by the nation’s elected leadership, the latter bartering away democratic self-determination and their own discretionary power for more attractive post-public sector career vistas.

    A further lubricant was mass fear, something the Security State excels at fanning. This is a toxic oroborus: fear rationalizes enhanced security measures, obliging it in turn to identify more threats and thus promulgate more fear.

    America’s captured political system (captured, in the main, by treasonous greed) perennially offers no material recourse away from Empire objectives. Carroll Quigley exposed the degradation of choice mounted by the two-party charade decades ago. His protestations fell on deaf ears.

    Then came Trump, arguably more detested by ‘Rino’ Republicans for helicoptering onto their half-acre of Quigleyan turf than the Democrats who openly shower their contempt upon him, aided by a not-so-secret confederation of Senior Executive Service (SES)personnel and an assorted Five Eyes gallery of International Men of Mystery.

    That new attention is being drawn to this fissure is a function of the Trumanites’ open rebellion against Trump’s subversive (Madisonian revivalist) presidency. Trump has forced the Deep State to the surface, a process that compels an explicit –and never before attempted– referendum on globalism, something the movement cannot possibly prevail on as the closest thing it possesses to a natural constituency is a beholden media, George Soros’ checkbook and a traitorous ruling class.

    These transnational Trumanites, the true empire-builders, seek geopolitical hegemony, (over)-employing trade sanctions as a tool towards that end. Whereas Trump, a businessman to his core, seeks only comparative advantage and level playing fields i.e. trade for its own sake. Trump has the inclinations of a competitor and possesses an abiding faith in the productive capacities of his fellow Americans. His America-first exertions are sincere.

    Despite a near-daily (and 92% negative) onslaught of CIA-Mockingbird anti-Trump vitriol, there is a dawning realization that the current President is as close to an anti-Empire crusader as any POTUS can possibly be, given the powerful institutional constraints (and Trumanite presence) he must work within. (The latter qualification cannot be emphasized enough.)

    Just this week in his essay ‘Trump Has Done More to Take On and Take Down the American Empire Than Any Other President’, Gareth Porter concedes, with the obligatory reluctance attending any favorable Trump assessment that, “…[despite] Trump’s multiple serious personal and political failings…[his] unorthodox approach has already emboldened him to challenge the essential logic of the US military empire more than any previous president.”

    Creditably, Porter manages to overcome his early subjectively-derived aversions with dispassionate analysis. More thinkers will follow. Trump will never inspire great wellsprings of affection. Yet shouldn’t likability deficits fall within the rehabilitative purview of Oprah Winfrey and her top shelf of gauzy sofa lens? History books are replete with highly eccentric, yet transformative, leaders. Who but the most media-besotted automatons really care?

    As for our beleaguered trading partners, the list of American pariahs (sanctioned and tariffed) grows by the month: China, Russia, Iran, Turkey come immediately to mind, obviously in varying modes and degrees. What happens should the EU (the world’s 2nd largest ‘economy’) continue to trade with Iran under a “special payments entity” arrangement despite US warnings? For the record, India has no plans to cease its Iranian oil purchases. This comes at the cost of American producers as will European demand absorbed by the onset of Nordstream 2.

    The US Department of Treasury’s Office of Foreign Assets Control (OFAC) maintains a list of sanctioned nations and programs.  It’s well worth a look.

    Weapon system defections present a knottier dilemma as military and trade considerations commingle. The Countering America’s Adversaries Through Sanctions Act (CAATSA) of 2017 addresses punitive measures and waiver procedures; a bill opposed, it must be said, by President Trump. Turkey, a NATO member, is taking delivery of the Russian S400 missile defense system, playing havoc with weapons (F35) inter-operability, among other things.

    Commenting on the likelihood that India will extract a waiver from the US for the purchase of a S400 system, Fort Russ’ Joaquin Flores suggests America’s quiet acquiescence may be the biggest news of all, indicative perhaps of a dawning realization in Washington that the sanction whip is losing its lash:

    “But the real signal here is that the US is willing to publicly also disclose that a waiver is possible…that in its gambit to shore up the empire and force countries to choose Atlanticism over Multipolarity, it will not by way of hubris or over-playing, engender the very multipolarity [it] presently work[s] against.”

    Flores surfaces the nub of the paradox: By waiving sanctions and allowing breakaways on a case-by-case basis, does unipolarity preserve itself by exception or compromise itself by non-inclusion? A contrary beast, this unipolarity.

    First of all, absolute power is an unnatural configuration if it isn’t a fairy tale altogether. Kenneth Waltz, one of the 20th century’s leading scholars on International Relations, recognized unipolarity as being among the most tenuous of international power arrangements.

    Fully consummated unipolarity contends with no nemesis at the gate, no rudely apparent countervailing force with which to remind itself that power consolidation is always an asymptotic function forever falling short of omnipotence. Whereas bipolarity increases overall system stability as each power has only the other to regard warily. A vigorous checkmate ensues. Like a two-headed Cerberus, power is affixed to one mode of action.

    In short, power is a distributed resource requiring a corner of contested ground upon which to construct an antithetical lever. One can calibrate power only in the context of someone else existing beyond one’s own locus of control.

    Until history fully resolves itself, the ascendant antithesis must germinate in a strange province that forever looms on the frontier of the prevailing thesis. In this way, ideas inhabit their own conceptually balkanized geographies.

    Is internal contradiction the ultimate empire-killer? In his 2013 essay, ‘The Inevitable Has Happened in Egypt’, Alastair Crooke surfaces a dialectical reality, in the context of that particular moment’s crisis, the Muslim Brotherhood’s massacre at the hands of Egyptian President al-Sisi. Speaking to the larger demise of the USSR and the lessons drawn, in Sunni circles, from its collapse, he observed:

    One has to think Crooke intended ‘omnipotence’ instead of ‘omniscience’. Beyond that, he captures the Hegelian primacy of ideas (as opposed to the brute accouterments of tanks, planes and automobiles) as being the first-order Empire battleground.

    As Flores suggests, the unipolar moment does have an antithetical nemesis. It exists, not for the moment at least, in the guise of a discrete nation-contender, but rather from amidst the inchoate forces of over-extension, hubris and internal contradiction.

    One way for unipolarity to hasten its own demise is to persist in the practice of briskly escorting bad actors out of the Big Tent. At some point a critical mass of delinquent nations finds itself on the outside-looking-in; to which a new inside and fresh synthesis are baptized. The formative institutions, structures and initiatives already exist: OBOR, BRI, BRICS, AIIB, SCO.

    The evolving role of the Shanghai Cooperative Organization (SCO) for example is on vivid exhibit his week with rather self-conscious pronouncements of multilateral cooperation, due no doubt to American trade frictions with key members Russia,  China and India. These are the formative orbits that can exert and accelerate gravitational tugs away from prevailing global governance models and power centers.

    Left untended, yawning internal contradictions lead to a strange and strident logic rooted in self-injury and geopolitical masochism: By shooting myself in the foot, I promise you will bleed to death. A spiritual forebear? Bob Dylan with ‘it’s alright Ma, I’m only bleeding.’

    Analyzed in myopic isolation, each sanction regime may indeed conform to a calculus of advantageously asymmetric bleeding. That is, Empire appears to crush each recalcitrant outlaw in serial procession.

    Yet how fully considered is the cumulative effect of a dozen rocks being hurled simultaneously at a Goliath convinced of his insuperable size? Death ensues at the instigation of a thousand Davids. Perhaps the Empire’s quant-model betrays a methodological flaw in its singular regard for each battle to the exclusion of the cumulative toll of mounting departures.

    Trumpism, the exuberant renewal of national self-confidence by a man who exudes it to the near-level of parody, obliquely acquiesces to the death of empire (without formally announcing it). Out of America’s re-acquaintance with itself springs a psychic reinvestment in the traditional facets of the American character, sublimated arguably since the Nixon Shock of 1970: enterprise, self-reliance, innovation and a can-do work ethic.

    For those who doubt the powerful emotional and psychic ramifications of the Trump renationalization, watch this steel worker tear-up at the realization he’s been rescued from oblivion. Work is a moral calling that instills purposeful existence. Trade merely extends that calling beyond a nation’s borders. Fellow Glaswegian Adam Smith was not a Wall Street economist running balance-of-payment Excel spreadsheets for the ‘grand’ purpose of sector fund allocations. He was a moral philosopher.

    The American people, most of them anyway, could have frankly gone to hell as far as the bankers were concerned. The enterprise costs (a productively idled and hollowed-out nation) proved fantastically exorbitant. No privilege accrued to the common man. Middle America became the Military Industrial Praetorian Guard hiring pool.

    Recalling Major General Smedley Butler (the bold-face mine):

    “War is a racket. It always has been.

    It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives.”

    Sanctions betray the unipolar moment’s faltering grasp. They are the unacknowledged road back from Empire to Nation. The contracting enterprise puts the best face on what can only be deemed a mutually assented to rejection. For, equally, the sanctioned nation is declining its prescribed role within the Empire playbook. Thus sanctions better resemble a divorce stemming from mutually irreconcilable differences than a unilateral flash of Empire pique.

    Trump, almost certainly, is accepting of these geopolitical normalizations, which ultimately will entail the cessation of the US Dollar as reserve currency.

    Hegemony is succumbing to variegation. There are other globally-aware approaches. Pope Francis’ polyhedral globalism for example combines comparative advantage with the inherent dignity of each nation’s native culture. Monoculture is a Unipolar aim. Global economies-of-scale seek to arbitrage away –to flatten– indigenous human character. Uniqueness is the lumpy stew that bedevils rote, commodity pricing.

    The sanctioned nation makes a calculation that its interests are better served relinquishing the benevolent gaze of Washington. In so doing, it embarks on a path alone.

    But not so alone as to be lonely. Not anymore. Other diasporees have preceded it. As will a re-nationalized America in due course.

  • "It's All About Space": Trump Says Russia And China Are Ahead Of US Space Force

    The US needs its own space force because China and Russia have already gotten a head start, but American ingenuity and the ability to make the “greatest rockets” in the world are right here at home, President Trump said at a rally in Richmond, Kentucky Saturday night.

    Russia has already started, China has already started. They’ve got a start, but we have the greatest people in the world, we make the greatest equipment in the world, we make the greatest rockets, and missiles, and tanks, and ships in the world.” 

    He said his record $700bn+ military budget that would “fully rebuild the American military” and vaunted that creation of the Space Force, first announced last June, is already underway. 

    “You know it’s all about space. It’s all about space. Defense, offense, everything is going to soon be all about space,” Trump said before a packed audience in Kentucky.

    Based on details from comments made by Vice President Mike Pence in August, the US Space Force is set to become the sixth branch of the Military as well as to help ensure “American dominance in space” by 2020.

    Trump was echoing Pence’s prior emphasis, that moving forward on a US military space program is ultimately in response to other nations’ advances in the area. Pence had pointed out, for example, that Beijing’s People’s Liberation Army (PLA) Strategic Support Force is overseeing the developing and maintaining of the PLA’s space capabilities.

    The White House previously said the above logos are up for consideration to represent what will be a sixth US military branch. via Tennessee Star

    In response to President Trump’s Saturday night remarks invoking Russia as having “already started” its program, Russian state-funded media channels were quick to respond that Moscow is not seeking the militarization of space

    RT News’ commentary on Trump’s statement included the following:

    The key difference is in the mission statements. The Russian ‘space force’ exists to “observe space objects, detect threats to Russia in space and from space, and counter them if necessary,” launch satellites for military and dual (military plus civilian) use, obtain satellite intelligence, as well as maintaining them in working order. In short, nothing any country with reasonable satellite-launching capability, including the US, doesn’t already do.

    Cartoon via Rachel Gold

    Ultimately what Trump is proposing is of a different nature, seen in the following, according to RT:

    What Trump wants to do with his space force is to have the ability to degrade, deny, disrupt, destroy, and manipulate adversary capabilities to protect US interests, assets, and way of life.”

    When Trump first shocked the world by announcing the program on June 18, he expressly said at the beginning of his comments that “we must have American dominance in space.” And followed with: “Very importantly, I am hereby directing the Department of Defense and Pentagon to immediately begin the process necessary to establish a Space Force as the Sixth Branch of the Armed Forces.”

    But there is evidence to suggest Trump’s words about a Russian leg up in military space capabilities are accurate. Per a recent report in Axios, “Russia has had sophisticated launch systems for decades, in addition to another that tracks objects more than 30,000 miles above the Earth, according to the CSIS 2018 Space Threat Assessment.”

    And further a separate February report from the Director of National Intelligence found that both China and Russia are working to develop anti-satellite weapons “that could blind or damage sensitive space-based optical sensors, such as those used for remote sensing or missile defense.”

    The Pentagon and Air Force have put estimates for the new Space Force at $8 billion and $13 billion, respectively. This includes initiating a new US Space Command by the end of this year. 

    But perhaps the more interesting question that remains is who will be picked by the White House to assume the title and awesome responsibility of “Commander of Space”?

  • James Comey And The Unending Bush Torture Scandal

    Authored by James Bovard via The Future of Freedom Foundation,

    The vast regime of torture created by the Bush administration after the 9/11 attacks continues to haunt America. The political class and most of the media have never dealt honestly with the profound constitutional corruption that such practices inflicted. Instead, torture enablers are permitted to pirouette as heroic figures on the flimsiest evidence.

    Former FBI chief James Comey is the latest beneficiary of the media’s “no fault” scoring on the torture scandal. In his media interviews for his new memoir, A Higher Loyalty: Truth, Lies, and Leadership, Comey is portraying himself as a Boy Scout who sought only to do good things. But his record is far more damning than most Americans realize.

    Comey continues to use memos from his earlier government gigs to whitewash all of the abuses he sanctified. “Here I stand; I can do no other,” Comey told George W. Bush in 2004 when Bush pressured Comey, who was then Deputy Attorney General, to approve an unlawful anti-terrorist policy. Comey was quoting a line supposedly uttered by Martin Luther in 1521, when he told Emperor Charles V and an assembly of Church officials that he would not recant his sweeping criticisms of the Catholic Church.

    The American Civil Liberties Union, Human Rights Watch, and other organizations did excellent reports prior to Comey’s becoming FBI chief that laid out his role in the torture scandal. Such hard facts, however, have long since vanished from the media radar screen. MSNBC host Chris Matthews recently declared, “James Comey made his bones by standing up against torture. He was a made man before Trump came along.” Washington Post columnist Fareed Zakaria, in a column declaring that Americans should be “deeply grateful” to lawyers such as Comey, declared, “The Bush administration wanted to claim that its ‘enhanced interrogation techniques’ were lawful. Comey believed they were not…. So Comey pushed back as much as he could.

    Martin Luther risked death to fight against what he considered the scandalous religious practices of his time. Comey, a top Bush administration policymaker, found a safer way to oppose the worldwide secret U.S. torture regime widely considered a heresy against American values: he approved brutal practices and then wrote some memos and emails fretting about the optics.

    Losing Sleep

    Comey became deputy attorney general in late 2003 and “had oversight of the legal justification used to authorize” key Bush programs in the war on terror, as a Bloomberg News analysis noted. At that time, the Bush White House was pushing the Justice Department to again sign off on an array of extreme practices that had begun shortly after the 9/11 attacks. A 2002 Justice Department memo had leaked out that declared that the federal Anti-Torture Act “would be unconstitutional if it impermissibly encroached on the President’s constitutional power to conduct a military campaign.” The same Justice Department policy spurred a secret 2003 Pentagon document on interrogation policies that openly encouraged contempt for the law: “Sometimes the greater good for society will be accomplished by violating the literal language of the criminal law.”

    Photos had also leaked from Abu Ghraib prison in Iraq showing the stacking of naked prisoners with bags over their heads, mock electrocution from a wire connected to a man’s penis, guard dogs on the verge of ripping into naked men, and grinning U.S. male and female soldiers celebrating the sordid degradation. Legendary investigative reporter Seymour Hersh published extracts in the New Yorker from a March 2004 report by Maj. Gen. Antonio Taguba that catalogued other U.S. interrogation abuses: “Breaking chemical lights and pouring the phosphoric liquid on detainees; pouring cold water on naked detainees; beating detainees with a broom handle and a chair; threatening male detainees with rape … sodomizing a detainee with a chemical light and perhaps a broom stick, and using military working dogs to frighten and intimidate detainees with threats of attack, and in one instance actually biting a detainee.”

    The Bush administration responded to the revelations with a torrent of falsehoods, complemented by attacks on the character of critics. Bush declared, “Let me make very clear the position of my government and our country…. The values of this country are such that torture is not a part of our soul and our being.” Bush had the audacity to run for reelection as the anti-torture candidate, boasting that “for decades, Saddam tormented and tortured the people of Iraq. Because we acted, Iraq is free and a sovereign nation.” He was hammering this theme despite a confidential CIA Inspector General report warning that post–9/11 CIA interrogation methods might violate the international Convention Against Torture.

    James Comey had the opportunity to condemn the outrageous practices and pledge that the Justice Department would cease providing the color of law to medieval-era abuses. Instead, Comey merely repudiated the controversial 2002 memo. Speaking to the media in a not-for-attribution session on June 22, 2004, he declared that the 2002 memo was “overbroad,” “abstract academic theory,” and “legally unnecessary.” He helped oversee crafting a new memo with different legal footing to justify the same interrogation methods.

    Comey twice gave explicit approval for waterboarding, which sought to break detainees with near-drowning. This practice had been recognized as a war crime by the U.S. government since the Spanish-American War. A practice that was notorious when inflicted by the Spanish Inquisition was adopted by the CIA with the Justice Department’s blessing. (When Barack Obama nominated Comey to be FBI chief in 2013, he testified that he had belatedly recognized that waterboarding was actually torture.)

    Comey wrote in his memoir that he was losing sleep over concern about Bush-administration torture polices. But losing sleep was not an option for detainees, because Comey approved sleep deprivation as an interrogation technique. Detainees could be forcibly kept awake for 180 hours until they confessed their crimes. How did that work? At Abu Ghraib, one FBI agent reported seeing a detainee “handcuffed to a railing with a nylon sack on his head and a shower curtain draped around him, being slapped by a soldier to keep him awake.” Numerous FBI agents protested the extreme interrogation methods they saw at Guantanamo and elsewhere, but their warnings were ignored.

    Comey also approved “wall slamming” — which, as law professor David Cole wrote, meant that detainees could be thrown against a wall up to 30 times. Comey also signed off on the CIA’s using “interrogation” methods such as facial slaps, locking detainees in small boxes for 18 hours, and forced nudity. When the secret Comey memo approving those methods finally became public in 2009, many Americans were aghast — and relieved that the Obama administration had repudiated Bush policies.

    When it came to opposing torture, Comey’s version of “Here I stand” had more loopholes than a reverse-mortgage contract. Though Comey in 2005 approved each of 13 controversial extreme interrogation methods, he objected to combining multiple methods on one detainee.

    The Torture Guy

    In his memoir, Comey relates that his wife told him, “Don’t be the torture guy!” Comey apparently feels that he satisfied her dictate by writing memos that opposed combining multiple extreme interrogation methods. And since the vast majority of the American media agree with him, he must be right.

    Comey’s cheerleaders seem uninterested in the damning evidence that has surfaced since his time as a torture enabler in the Bush administration. In 2014, the Senate Intelligence Committee finally released a massive report on the CIA torture regime — including death resulting from hypothermia, rape-like rectal feeding of detainees, compelling detainees to stand long periods on broken legs, and dozens of cases where innocent people were pointlessly brutalized. Psychologists aided the torture regime, offering hints on how to destroy the will and resistance of prisoners. From the start, the program was protected by phalanxes of lying federal officials.

    When he first campaigned for president, Barack Obama pledged to vigorously investigate the Bush torture regime for criminal violations. Instead, the Obama administration proffered one excuse after another to suppress the vast majority of the evidence, pardon all U.S. government torturers, and throttle all torture-related lawsuits. The only CIA official to go to prison for the torture scandal was courageous whistleblower John Kiriakou. Kiriakou’s fate illustrates that telling the truth is treated as the most unforgivable atrocity in Washington.

    If Comey had resigned in 2004 or 2005 to protest the torture techniques he now claims to abhor, he would deserve some of the praise he is now receiving. Instead, he remained in the Bush administration but wrote an email summarizing his objections, declaring that “it was my job to protect the department and the A.G. [Attorney General] and that I could not agree to this because it was wrong.” A 2009 New York Times analysis noted that Comey and two colleagues “have largely escaped criticism [for approving torture] because they raised questions about interrogation and the law.” In Washington, writing emails is “close enough for government work” to confer sainthood.

    When Comey finally exited the Justice Department in August 2005 to become a lavishly paid senior vice president for Lockheed Martin, he proclaimed in a farewell speech that protecting the Justice Department’s “reservoir” of “trust and credibility” requires “vigilance” and “an unerring commitment to truth.” But he had perpetuated policies that shattered the moral credibility of both the Justice Department and the U.S. government. He failed to heed Martin Luther’s admonition, “You are not only responsible for what you say, but also for what you do not say.”

    Comey is likely to go to his grave without paying any price for his role in perpetuating appalling U.S. government abuses. It is far more important to recognize the profound danger that torture and the exoneration of torturers pose to the United States. “No free government can survive that is not based on the supremacy of the law,” is one of the mottoes chiseled into the façade of Justice Department headquarters. Unfortunately, politicians nowadays can choose which laws they obey and which laws they trample. And Americans are supposed to presume that we still have the rule of law as long as politicians and bureaucrats deny their crimes.

  • Shocktober's Not Over – McElligott Sees More "Rolling Minsky Moments" As "Pseudo-Stability" Unravels

    Just before last week’s interest-rate driven market selloff entered its most acute phase, we cited CTA positioning data from Nomura showing that systematic funds had not yet begun the painful process of deleveraging as certain “triggers” had not yet been met. But shortly after this commentary from Nomura’s cross-asset strategist Charlie McElligott had been distributed to Nomura’s clients, the selling pressure intensified, busting through trigger levels in a way that only exacerbated what became the most intense selloff in SPX since February (and the biggest for NDX since Brexit).

    With markets creeping higher again after Wednesday’s furious selloff, McElligott chimed in with an update to Nomura’s positioning models that incorporated this latest break. As of Wednesday’s close, McElligott acknowledged that the Nomura Quant Strategies CTA model was indicating that these systematic sellers had reduced down to “43% Long” from “100% Max Long” 1 week ago, resulting in an estimated $88BN in one day selling on the one day move from “97% Long”, the positioning at the start of Wednesday’s session, all the way down to “43% Long.”

    Leverage

    With his audience clamoring for more guidance about what, exactly, triggered the market wreck of this past week, McElligott made a brief appearance Thursday afternoon on the MacroVoices podcast, where he got “philosophical” during an interview with Erik Townsend and Patrick Ceresna, arguing that this week’s equities driven selloff actually had a deeper “macro origin.”

    Again, if I’m really stepping back and talking almost more philosophically, it’s the bigger picture here is that a higher real interest rate environment is resetting term premiums. And, with that, the cost of leverage, cross-asset correlations, asset price valuation – all of these constructs built into the post-crisis quantitative easing era are now ripe to tip over.

    And we’re seeing these rolling Minsky moments as the pseudo-stability of lower interest rates, flatter curves, and suppressed volatility breeds instability through the leverage. And the leverage that’s had to have been deployed on strategies over the past few years as yield was chased. And that’s what we’re coming out of right now.

    As McElligott explains, the market tantrum that was apparently triggered by the return of the bear steepener trade in long-term rates during the preceding week, is ultimately a factor of the “pseudostability” that has characterized market flows during the post-GFC era. As a result, investors can expect these “rolling Minsky moments” – instances where selloffs rapidly intensify as both systemic and discretionary bids evaporate – to become increasingly common.

    Charlie

    Fortunately for discretionary managers struggling to meet their P&L targets, this systematic selling has mostly subsided for now, as the market rebound (which really continued on Friday) moved these funds further away from the next big deleveraging target.

    So, with that 2,719 level that you spoke about, was the next deleveraging point per our projections in the S&P for the futures to close below that level. It’s not a one touch, but to close below that level would see our current S&P position break down from what went into the day as a 43% long. And, as of one week ago, that was 100% max long. If we were to have closed below 2,719 today, that would have then taken us down to just 9% net long. And would have triggered an additional selling of $57 billion S&P futures.

    As an aside, McElligott explained that selling, for now, has been concentrated in the CTA universe, as risk party funds – that other favorite market scapegoat – are typically much slower to move, and thus will take more time to react to the breakdown in the equity-bond correlation.

    So our model looks at windows from two weeks, to one month, to three month, to six month, to one year. And we see the different transitions and the different signals generated across those buckets for various asset classes. But when the bond equities correlation breaks down, as it is currently right now, people will jump to the risk parity side of the equation, which, per our construct, is a much slower moving vehicle.

    Ours, particularly, uses a two-year window. So there is a little bit of false attribution in my mind currently within the institutional marketplace as far as trying to pin responsibility on the risk parity community, when, in my mind, the much more powerful short-term force in the market are CTAs.

    Of course, any discussion of how options traders react to these vertiginous downdrafts like what happened last week would be remiss if it ignored the role played by gamma-hedging options dealers. And while JPM’s Marko Kolanovic, who failed to predict last week’s blowup, said that this type of hedging played an outsize role in the selloff, McElligott warned that dealers could crash the market if SPX were to hold below 2,750, which would leave dealers dangerously out of position.

    We saw an enormous jump day over day with the S&P futures options and SPY ETF options cumulative, both delta and gamma, on the day. So SPX net delta moves down $460 billion. That’s a 0.1 percentile move since 2013. The day prior, that net delta was negative $55 billion. So just impossible, almost nine times growth over the course of the day with regards to how much delta was kicked off for sale from the options community yesterday in just SPX and SPY.

    And what that means from the delta side of things is that – and this is as of yesterday’s numbers – but S&P gamma is now at $24 billion per 1% move plus or minus. And those big strikes there are 2,800 and 2,750. And I think, judging by today’s spasms where it looked like we were going to break out, and then it looked like we were going to break down, and it looked like we were going to break out, and then it looked like we were going to break down, those levels kept us pretty well pinned.

    But the danger here is that, on a close below that pretty heavy open interest line of 2,750, the more we start slipping below, the further out of position the short gamma is. And the more it slips, the more you have to sell to stay hedged. And that’s always the danger of the options market.

    Looking ahead, the most pressing question on every investors’ mind is whether this week’s selloff was merely another dip to buy, or the beginning of the long-awaited shift away from the QE paradigm into a pre-recessionary QT mode. For what it’s worth, McElligott is optimistic that the market could hold up a little while longer, as discretionary managers have taken the opportunity to shrink their positions over the past few weeks, sapping demand for hedges and allowing them more leeway to get back in at a better price. 

    Meanwhile, the two-week blackout period for corporate buybacks is almost over. Just as it did during the Feb. 5 blowup, the evaporation of the corporate bid often contributes to more price instability. And while some corporations have managed to circumvent these rules via ASRs, once the corporate buyer returns in earnest, McElligott expects they will provide an added bulwark against the type of market chaos witnessed last week.

    I want to be as black-and-white on this as possible, and totally clear. If there was going to be a period of pullback with this tape, it was going to come in this two-week window where we are at peak buyback blackout. And that is absolutely where we are right now. The vast majority of S&P sub-industry levels are at effectively 100% blackout as of this week. Now, 10B5-1 plans allow corporates to buy outside of the blackouts, but with a number of limiting factors there. The bottom line: There still is a reduction in net corporate flow.

    That is a critical facilitator allowing this risk-off trade to really proliferate. And, just like February 5, this move was precipitated for macro purposes. This isn’t purely a sentiment trade. This certainly is negligibly about trade wars.

    However, another looming risk is the evaporation in demand for long bonds, which sent long-term rates moving higher earlier this month. As McElligott noted, much of this selling could be attributed to a mysterious foreign trader, which begs the question: Has the PBOC stepped up liquidations of its Treasury positioning (to be sure, the yuan has continued to weaken, which suggests that any selling by China has likely been relatively muted)? And if so, is China deliberately trying to crash the US equity market?

    Now, the market can go two ways. If people are really getting nervous with regards to another October volatility shock, and if people start taking chips off the table, because these stocks that have been most affected – all these momentum longs, all these gross tech stocks – if that starts bleeding into retail, then, yes, this could very well perpetuate. I do think the other angle here is that there has been a massive seller of the US long-bond contract in the market the past few weeks. And there are a number of folks fearing that it could be somebody – an entity overseas – that would really cause the fixed income world to further wobble.

    If we see the long end continue to sell off and the curve continue to bear-steepen, I think all bets are off and equities could absolutely continue trading lower. I personally believe that we are seeing de-risking now. And the de-risking is actually seeing money flow back into Treasuries.

    In McElligott’s view, traders trying to mitigate their exposure to equity risk should revive the bid for long-dated Treasurys. But if yields continue moving higher, all bets are off…

    Listen to the interview with McElligott below. It begins at the 59 minute mark:

    The podcast targeting pro finance and sophisticated investors, hosted by Hedge Fund Manager Erik Townsend

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