Today’s News 16th April 2018

  • US Tanks In Europe Get Invisible Futuristic Missile Shield To Counter Russian Threat

    Back in March, we detailed how the United States Army M1 Abrams tank, an American third-generation main battle tank, was in the process of being upgraded with an invisible missile shield that will destroy all chemical energy anti-tank threats and other threats before reaching the vehicle. We even said, “that Washington is preparing their main battle tank for the next evolution of hybrid wars.”

    Known as Trophy, this is the world’s first and only fully operational Active Protection System and Hostile Fire Detection System for armored vehicles. This cutting-edge technology will provide M1 Abrams tanks with 360-degree security from all threats, as advanced algorithms are continually detecting, locating, and neutralizing anti-tank threats on the battlefield.

    We even noted that the Trophy system was tested thoroughly on select M1A2 tanks in Europe and the Middle East. With much of the testing classified, there were still several unanswered questions surrounding what region(s) of the world the upgrades would go.

    However, in a new report on Thursday, the United States Army has decided to deploy the missile shields for M1 Abrams tanks to Europe “as part of a sweeping effort to better arm its Armored Brigade Combat Teams and counter Russian threats in the region,” said Warrior Maven, as quoted by Fox News. 

    “Not only will we be fielding one set of Trophy on Abrams tanks to Europe, but also three other brigades,” Maj. Gen. John Ferrari, Director, Program Analysis and Evaluation, G-8, told Warrior Maven in an interview.

    “The weapons plus-up for Europe-bound Active Protection System is woven into the 2019 budget request,” he added.

    The Trophy system employs advanced algorithms that use radar to provide continuous 360-degree protection. The bolt on kit includes four antennas and two rotating launchers mounted on the turret of each tank (see below).

    Once the threat is discovered, the algorithm classifies the threat, and if a direct hit is calculated, the countermeasure systems are automatically activated, and a tight pattern of explosively shaped penetrators launches at the warhead to neutralize the threat (as shown below).

    Rafael Advanced Defense Systems says the Trophy system has been thoroughly tested, qualified, and is already in production for the Israel Defense Forces (IDF). The system debuted in 2009 and had proven to work exceptionally well in the Gaza Strip and other hot spots around Israel.

    Warrior Maven points out that the immediate deployment of Trophy systems for American tanks in Europe is to counter new high-tech Russian technology, which has been deployed to the European Russia border.

    “Trophy is the kind of armored vehicle ground-war weapon of particular value in the event of a major land combat engagement against a fortified, well-armed adversary such as Russia. Systems of this kind have been in development for many years, however the rapid technological progress of enemy tank rounds, missiles and RPGs is leading the Army to more rapidly deploy Active Protection System for its fleet of Abrams tanks deploying to Europe.”

    Warrior Maven also describes the Pentagon’s biggest fear:

    “APS on Abrams tanks, quite naturally, is the kind of protective technology which could help US Army tanks in tank-on-tank mechanized warfare against near-peer adversary tanks, such as a high-tech Russian T-14 Armata tank.

    The 48-ton modern T-14 tank is widely reported to be able to reach speeds of 90-kilometers per hour; it is built with an unmanned turret, without a “fume extractor” and is designed for a 3-man crew surrounded by an armored capsule

    While much has been made of the T-14 Armata’s cutting-edge technology, including its active protection, 12-round per minute firing range and 125mm smoothbore cannon in numerous public reports and assessments, it is not at all clear that the T-14 in any way fully outmatches current and future variants of the Abrams tank.

    Army Abrams modernization efforts are without question being designed to meet and exceed any dangers posed by rival nation tanks, including the T-14. Concerns about the threat posed by the T-14 Armata are, without question, informing US tank and weapons developers.”

    Essentially, Washington’s much-needed modernization efforts of invisible force fields, are to protect M1 Abrams from Russian anti-tank weapons and its new high-tech T-14 Armata, all evidence suggests — a major conflict could soon be on the horizon.  

  • Draining The Data Swamp: Who Owns The "Virtual You"?

    Authored by Pepe Escobar via The Asia Times,

    In our digital age, ownership, utilization, and monetization of data raises profound questions about personal rights, state rights and the limits of freedom…

    For all the raft of unanswered questions or dismissal as a nothingburger, Facebook CEO Mark Zuckerberg’s two-day grilling at Capitol Hill hopefully may unleash a serious global debate about our virtual selves.

    US politicians, it seems, have discovered the merits of the European Union’s General Data Protection Regulation  (GDPR). The EU is actually at war with the GAFA galaxy (Google, Apple, Facebook, Amazon) and environs. The question for the US revolves around the immense legal twists and turns on how and what to regulate.

    As much as Zuckerberg may have conceded that the industry needs to be regulated, scores of congressmen pressed him on whether Facebook would enforce GDPR for US customers. He dodged the question multiple times, promising GDPR “controls,” but never “protection.”

    An army of savvy lawyers at the Facebook HQ certainly envisaged that regulation might “stifle competition,” as some congressmen did not fail to point out. And some, naively, even gave the whole game away, asking Zuckerberg directly what kind of regulation he would prefer.

    Capitol Hill may not have noticed that Facebook and GAFA as a whole work pretty much like political parties disguised as companies. The founders/CEOs are major shareholders. Decisions have the imprimatur of a board working as a sort of political bureau. Congress is the shareholder general assembly. And the militants are the salaried mass addicted to a visionary movement.

    The whole process runs in parallel with the decline of traditional political parties. Even top counseling comes from the political arena, like former Obama operative David Plouffe, who moved to Facebook from Uber, and Joel Benenson, Bill Clinton’s top polls specialist.

    And it’s certainly very much a political issue how cyberspace trumps actual physical space. GAFA is always looking for nations that offer comparative advantages and privileges to dodge regulation and annoying redistributive fiscal obligations.

    That betrays a clear ideological choice. GAFA is all about Ayn Rand-inspired Libertarianism; minimum government and maximum freedom. Surf away from the crashing waves of the state. Regulation is for losers.

    Ayn Rand happens to be the supreme idol of PayPal’s Peter Thiel, Twitter co-founder Jack Dorsey and Wikipedia co-creator Jimmy Wales.

    And then there’s philosophy great Martin Heidegger.

    Peter Thiel, Linkedin founder Reid Hoffman, Instagram inventor Mike Krieger – they all followed the Symbolic Systems program established in Stanford in 1986 combining neurosciences, logic, psychology, AI, cybernetics and, yes, philosophy, with an emphasis on Heidegger.

    Add to it the role of Pluralistic Networks, founded by Chilean Fernando Flores, a former minister of Salvador Allende and co-author, with Terry Winograd (Google’s Larry Page’s mentor) of a book about Heidegger’s influence on information science, redefining intelligence, language and the limits of biology. Here we have Heidegger as the precursor of AI.

    Liberal democracy vs freedom?

    One of the big shows in Brussels for years has been the debate on why GAFA refuses to pay taxes. Libertarianism is incompatible with direct tax deductions or regulations. What matters most of all is the philanthropic value of those entrepreneurs and their social importance in creating jobs.

    European egalitarian cynics, on the other hand, would describe them as a bunch of moguls bloated by un-measurable hubris praying to a doctrine of sovereign egotism.

    GAFA + Microsoft’s market capitalization reached a whopping $2.9 trillion last year – bigger than India’s GDP; their collected revenues are larger than Sweden’s GDP.

    According to the OECD, globally, states are not collecting as much as  $240 billion a year in taxes. According to a 2015 report from the European Parliament, the EU loses as much as 70 billion euros a year because of “fiscal optimization,” due uniquely to the transfer of GAFA profits towards fiscal paradises.

    So what we have is GAFA working as political parties, actively changing the world without ever submitting themselves to a vote. It’s a case of “freedom” being incompatible with Western liberal democracy. That’s exactly what PayPal founder Peter Thiel wrote in 2009; “I no longer believe that freedom and democracy are compatible.”

    In The Black Box Society (Harvard University Press), Frank Pasquale stresses how the industry, facing no accountability, will end up risking the very own legitimacy of sovereign states.

    Which brings us to the monopoly question. Zuckerberg was asked if he considered Facebook a monopoly. Brussels certainly does, in its drive to regulate an economic model based on systematic smashing of competition and limitless privatization of personal data (which the EU has been unable to stop). Once again Peter Thiel, one of Facebook’s earliest investors: “Competition is for losers.”

    The main complaint in Brussels, as officials stressed to Asia Times, is that the EU’s “fair competition” model is being corroded. Yet the paradox is the EU – because of ferocious fiscal competition – is actually the largest tax paradise on the planet.

    The EU condemns international tax evasion while the enemy inside is represented by Luxembourg, the Netherlands and Ireland – a sort of Bermuda Triangle of corporate tax. The savory combination of a single free market and a sophisticated service economy in which almost no physical goods cross borders offers unlimited opportunities for tax evasion. No wonder the digital giants have accumulated over $600 billion in tax-free profits.

    The limits of ‘self-ownership’

    While GAFA in the US essentially controls the politics limiting the capacity for regulation, Brussels will continue to insist the only path towards healthy regulation comes from the EU.

    The other model is of course China. Beijing has domesticated its sprawling digital industry – which is a de facto extension of the state apparatus as well as a growing instrument of global influence.

    When Zuckerberg was asked whether Facebook should be broken up – the monopoly issue once again – he said that would weaken the US’s competitive advantage against China, which by the way is fast disappearing.

    Facebook’s customer base though is not American; it’s global. Inside the Facebook HQ, the consensus is that it is a global company. So all these issues at stake – from monopoly to regulation to privacy – are indeed global issues.

    Zuckerberg dodged extremely serious questions. Who owns “the virtual you?” Zuckerberg’s response was that you own all the “content” you upload, and can delete that content any time you want. Yet the heart of the matter is the advertising profile Facebook builds on each user. That simply cannot be deleted. And the user cannot alter it in any way.

    The GAFA galaxy, in fact, owns you when you click accepting those massive terms and conditions of use. As argued by philosopher Gaspard Koenig, director of the GenerationLibre think tank in France, data property should logically follow the evolution of property rights, land property, financial property and property of ideas, thus replacing the current figure of the “proletarian 2.0” at the heart of the value chain of the digital economy.

    The whole debate may revolve in fact about algorithmic determinism. Every algorithmic model is influenced by economic and financial interests. “Our” data is de facto monetized by all those massive, user-friendly platforms. The four billion profiles generated every three months by Facebook are derived from content that real people produce and let Facebook use. Even Zuckerberg himself admitted he cannot lock down his own privacy settings.

    Thus the key question that Libertarianism refuses to answer: If “self-ownership” is being configured as the future of our social contract in a secular world, how do we mere consumers profit from our rampant, digital marketization?

  • US Syria Strategy "A Succession Of Failures Divorced From Reality"

    American involvement in Syria – “from Obama through Trump” – was described to Axios by a Republican foreign policy expert as “a succession of failures divorced from reality.” 

    The expert, which Axios says wishes to remain anonymous but “has decades of experience analyzing the region,” emailed his devastating indictment of the U.S. Syria “strategy” over several administrations – noting “The inevitable result was failure.” 

    Presented below are said expert’s thoughts: 

    • Syria is a microcosm of U.S. foreign policy in general. We never had a coherent strategy beyond simplistic generalities, childishly selecting our goals based on what we wanted, not what was necessary, or even possible. The inevitable result was failure. Wobbly Assad won, powerful us lost. Rust-bucket Russia accomplished its goals, triumphant us achieved none.”

    • The Obama Administration bears the principal responsibility for Syria and Libya but not for Iraq and Afghanistan or the succession of failures elsewhere. Timid intervention did not work for the former; full-scale intervention did not work for the latter. “

    • But the military are not miracle-workers. These failures sprang from cobbled-together strategies based on comforting illusions that have repeatedly proven not to be true, with objectives shaped not by the constraints of reality but the indulgent selection from an a la carte menu. There is little evidence that repeated failure has had a significant impact on policymakers or specialists.”

    • There is a price to be paid for incompetence. Few now fear us; fewer respect us. As our opponents increase in number and strength, the prospect of defeat at their hands will grow. But the more immediate result will be irrelevance.”

    Ouch! No wonder this mystery foreign policy expert wishes to remain anonymous. This is a sobering take.

  • How Much Longer Can The American Empire Run On Fake Money?

    Excerpted from Jay Taylor’s Gold & Energy Stocks Newsletter:

    Gold rocketed to nearly $1,365 on Wednesday in New York, which is well above the $1,350 that Michael Oliver suggests is when technical price watchers will finally start to head into the yellow metal and related investments like gold stocks. But alas the banking cartel had other ideas and exercised a 100-tonne “pretend gold” smackdown in the gold paper futures markets starting at about noon that day, just to make sure the greatest competition in the world to the dollar didn’t start to lead to a loss of confidence.

    This of course is nothing new. The Gold Anti Trust Action Committee (GATA) has been documenting paper market manipulation of the gold markets now for decades. Isn’t it interesting that more virtual gold trades in one day on the LBMA than is mined in an entire year.

    Whatever it takes, including endless wars to try to keep the petrodollar alive and trillions of dollars spent on blood and treasury. I truly believe Eisenhower’s fears of the endless power of the Military Industrial Complex are now playing out.

    It should be eminently clear now that “the President is not really the President of the United States.”

    That was established by the “Deep State” under Kennedy. If you have doubts about that, you might do well to read “Unlike Trump, Kennedy never bent a knee,” by Jacob G. Hornberger, the founder of The Future of Freedom Foundation and a former trial attorney in Texas.

    While another war or two might buy a bit more time for the Anglo-American Empire, it should also be very clear that the U.S. military, like the U.S. budget, is out of control with no one specifically in charge. What it is instead is an amorphous powerful monster that needs more lands to conquer to justify more military spending that in turn will continue to keep massive parasitic bureaucracies ever expanding so that hundreds of thousands of Americans can continue living a splendid lifestyle while Americans who produce things of value find their living standards ever in decline.

    If you are not questioning the legitimacy of the war just started this evening by the Neocons who run America you should be. Stop to ask yourself why for a second year in a row the Syrian leader would implement a gas attack on his own people a mere week after Trump said he would pull troops out of Syria, if the result of that would be to have bombs rain down on his country. Also ask yourself why the U.S. refused to let an impartial country like Norway do an independent investigation into who actually was responsible for the recent gas attack. In fact, like the weapons of mass destruction that dragged us into Iraq, there never has been any proof of last year’s gas attack or this most recent one.

    This may very well lead us into a hot war with Russia, a nuclear power. That is unthinkable but then who said the Military Industrial Complex, like a cornered animal being threatened by death, is doing much thinking? As I say, America is an empire that is out of control. Nothing but the hand of God will stop the enormous evil we are inflicting on country after country, rendering nations into death and poverty wherever we go.

    Trump couldn’t keep his campaign promises because the President is not the President. Kennedy tried to be. He never had time to realize he wasn’t the President, but the rest of us should have begun to understand that long ago, rather than quietly accepting the Warren Report, which I think had no more credibility than all other manner of CIA reporting that serves the out-of-control Imperial State monster whose heart resides in Washington.

    What does this have to do with the gold markets and gold shares? I would submit to you it has a great deal to do with it. The one currency that would put all nations on an even playing field would be gold. A gold standard would mean the U.S. would have to earn its way to wealth rather than print money to pay for endless wars, death, and destruction. Nixon took us off the international gold standard in 1971 for that very reason, which enabled banks and financial institutions to get rich by impoverishing Americans with debt and job losses funded by bankers who have access to printing-press money. It also made it possible for America to fund endless wars with debt. But to keep the dollar viable, its leading competitor had to be held at bay. Hence smackdowns like the one this past Wednesday.

    But the Russians and Chinese and a host of other countries are sick and tired of being told they have to use dollars for trade when doing so helps fund the U.S. that is outright hostile to those nations and seeks their overthrow. Led by the massive wealth gained by China over the years, financial institutions and a currency backed by gold appear to be well underway so that they can compete with the immoral monetary system the U.S. set up on August 15, 1971.

    Now this gets directly to the issue of gold. Watch very carefully when in a week or so the first petro yuan contract comes due on the Shanghai Exchange. You know that countries that sell their oil to China will have to get paid in yuan. If they are a bit shaky on accepting yuan, they can hedge against yuan by taking delivery of gold (not paper delivery but real gold) on the Shanghai Gold Exchange, which, unlike the LBMA in London, is an honest, physical gold market.

    So while American economists with PhD’s in economics thumb their noses at gold as money and worship Keynesian lies that suggest nations can get rich by printing endless amounts of money no matter how far into debt and insolvency that takes them, the Russians (who are largely debt free) and the Chinese (not to mention the Iranians and other nations of Asia) are building up their gold reserves for the day when the U.S. self destructs, financially or otherwise.

    As an American I don’t wish for that because when that happens there will be untold pain in our country. But clearly, the stage has been set. The bombing of Damascus by Trump today may be the start of an unfathomable war that he had little chance of avoiding given the obvious control of our government by the Deep State.

    *  *  *

    I believe we are on the cusp of a major breakout in the price of gold. It is taking more and more paper gold to hold it down and if/when those who buy paper gold, thinking that will protect them as well as the real thing, find out that isn’t true we may see a run on physical gold that could send the yellow metal to prices undreamed of by the most bullish of gold bulls. [Technician Michael Oliver]’s initial target once we get through $1,350 at the end of this month or a month in the near future is $1,700. By that time, it’s hard to imagine that there won’t be quite a number of people trading in their marijuana and cryptocurrencies for gold and gold mining shares.

  • Trump Job Approval Highest Since First 100 Days; Majority Of Men Support The President

    Update: Trump has apparently taken notice, correctly pointing out that his approval rating, according to Rasmussen, is higher than Obama’s was at this point in his presidency.

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    * * *

    Even Bloomberg and the Washington Post are being forced to admit that President Donald Trump’s approval rating is on the rise.

    Both media organizations, which had seized on every opportunity to tout the president’s approval rating when it was mired in the mid-to-low 30s, are now being forced to tout a recent Washington Post-ABC News poll showing Trump with an approval rating above 40% – his highest since his first 100 days in office.

    Poll

    Furthermore, among men, Trump’s approval rating has risen to 49%, while 47% of men disapprove. Meanwhile, 32% of women approve of the president’s job performance. Meaning that, for the first time, half of US men support the president.

     

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    Nearly every credible poll is now showing the president’s job approval at his highest since taking office. On Friday, Rasmussen Reports published a poll showing 50% of likely US voters approve of Trump’s job performance – while 49% disapprove. Of those 34% strongly approve of the president’s jon performance, while 40% strongly disapprove.

    Last week, CNN was also forced to report that Trump’s approval rating has rebounded to its highest level since the 100-day mark, with 42% of likely voters approving of the way Trump is handling the presidency.

    The president’s strongest approval rating was for his handling of the economy, of which 48% approve and 45% disapprove. This is clearly a sign that the Republican’s tax cut plan has been welcomed by most Americans, who are beginning to see more money left in their paychecks.

    Finally, an NBC News/Wall Street Journal poll released last week shows Trump’s approval rating just four points below a peak reached last month – down from 43% to 39%.

    However, the president’s decision to attack Syria will likely dent his support among some of his most fervent backers, who had applauded Trump’s “America First” stance, and his promises to bring US troops home from abroad.

  • Take The Red Pill – The History Of Syrian False Flags Exposed

    “You take the red pill… and I show you how deep the rabbit hole goes.”

    The infamous line from the movie ‘The Matrix’  – where Morpheus offers Neo a glimpse of the ‘real’ reality that is occurring, not the ‘manufactured’ reality that those whose rule want him to see – could not be a better analogy for what one brave (and clearly a treasonous Russian troll who should be banned from any and all social media forever) Twitter user exposes below.

    “Jad” – @Jadinho123 – shows how the world has been lied to many times to create the current Syrian theater of war…

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    Remember this photo of a kid laying next to her ‘dead’ parents who were ‘killed’ by Assad and this photo went viral and got thousands of retweets and had people crying all over Twitter?

    Well…

    Oh and remember this photo of this child who was in the back of an ambulance after supposedly being attacked by Assad and his regime???

    Well…

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    It gets worse…

    And worser…

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    And worsest…

    And a little make-up for good measure…

    And a rehearsal for a false flag chemical attack…

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    Remember the girl “running to survive and All her family have been killed…”

    Well, it was a clip from a music video!!…

    Oh, and remember that video of the Syrian boy ‘saving’ his sister from Assad forces?

    Well, it was a lie too…

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    And here is the cast…

    And one has to wonder if this is a ‘coincidence’ or is this girl just shit out of luck?

    And CNN didn’t care…

    Remember this harrowing scene from Syria?

    Well it was Gaza…

    Remember Bana? The young Syrian girl living in Syria who would post videos blaming Assad and the regime for her friends and families deaths.

    Well, this is her dad…

    Here’s Bana meeting Turkish president Erdogan. Because a man who funds ISIS is so innocent right???

    h/t @Jadinho123

    Finally here are two truth-bombs that actually made it to the mainstream media…

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    Before being cut off...

    Now, go back to your dinner and your ignorantly uninformed, cognitively dissonant, unquestioning ‘patriotism’ to support whatever you’re told… no matter how much evidence of previous lies and manipulation you are confronted with.

  • This Is How The US Postal Service Loses So Much Money

    Authored by Justin Murray via The Mises Institute,

    Lately, when he isn’t trying to blame China on America’s competitiveness woes, President Donald Trump has become obsessed with the online retailer Amazon. While there’s speculationthat Trump is using the reins of government to carry out a personal grudge because Jeff Bezos, Amazon CEO, also owns The Washington Post, the more recent obsession is based on his belief that the United States Postal Service is subsidizing Amazon’s activity.

    The claim is that, based on a cost-plus method of pricing, Amazon is being subsidized $1.47 per package delivered by the USPS as a last-mile carrier. With an estimated608 million boxes shipped by the online retailer in 2017, Trump is implying that Amazon has shorted the postal service by $893 million.

    Considering the USPS lost $2.7 billion, this further implies that Amazon is a key reason why the USPS is struggling financially. Trump goes on to state that Amazon should fork over the entire $2.7 billion to cover the difference.

    A key problem here is the assumption that businesses operate on a cost-plus basis. This kind of thinking is a result of how warped government operations are, which frequently engage in cost-plus kinds of contracts. Cost-plus contracts are where the government agrees to cover all the applicable costs of performing the work plus a guaranteed profit. These forms of contracts are relatively unusual in the private business sector, where bidding on price are the primary form of activity. Because of the nature of cost-plus, and how they will frequently go over-budget because there is little incentive to control costs of performance, companies generally don’t engage in them. This means, in the world outside of tax-funded activity, the USPS has to compete with other package carriers like UPS and FedEx and doesn’t have the luxury of guaranteeing itself a profit on every activity.

    When it comes to the USPS, the organization has significant fixed costs. In business planning, prices are usually lower-bound by the variable cost of activity. Any revenues that are collected above and beyond the variable costs are able to contribute toward fixed expenses. This is referred to as the contribution margin. Because the fixed component exists whether the product or service is sold or not, companies will be pressured to lower prices until they reach this contribution margin is exhausted. Companies then hope to generate sufficient volume at this margin to cover the fixed expenses. If the choice is between no sale and a sale below an optimal price with some contribution margin, the organization will usually go with the lower than optimal price to at least slow the resource deterioration.

    The reason the USPS is in trouble and is struggling to cover its estimated $29 billion in fixed costs is because of its status as a partial legal monopoly. From the own words of the USPS, Congress has granted, with criminal penalty, the USPS total monopoly over the delivery of letters, with some carve-out exceptions (such as urgent or free of charge). Like most monopolies, the USPS had little incentive to keep costs controlled. In 1999, the USPS even went so far as to shrug off the burgeoning Internet, e-mail in particular, as some fad and engaged in sorting facility expansions with the expectation that letter volume would continue to grow. Since peaking in 2001, the number of letters delivered by the USPS has since collapsed to nearly half as much in 2017. The USPS costs, however, continued to increase, from $62 billion in 2000 to $72.3 billion in 2017, despite the collapse of business volume. The USPS was only able to remain solvent by leveraging its monopoly status by driving up the price of stamps from $0.34 for a first class stamp in 1999 to $0.50 later this year. But even this is running into limitations as the decline in mail volume accelerates.

    This monopoly, however, doesn’t cover package delivery, putting the USPS in a strange position of having a legal monopoly on only part of its business. This creates the impression that the package business is subsidized by the letter business since the prices on the letter side aren’t limited by a competitive force. This then creates the further impression that the expenses, which were never controlled because of the historical reliance on letter delivery, should be evenly applied to package delivery as well. Thus the assumption there is a subsidy at all when in reality the costs are grossly overinflated due to a lack of market discipline.

    When a private business is threatened by decreased volume, they usually have to trim operations to adjust their size to meet the new market demands. The USPS, on the other hand, does not do this. The organization continues to operate on the assumption it must make daily deliveries, six days a week, to every address in the nation. Even the old rural excuse has become weakened as the nation becomes more urban (assuming it was ever justified to tax city residents to provide city amenities to those who elected to live in remote places). Not that rural residents need a monopoly organization to deliver junk mail.

    Repeal the Postal Service’s Monopoly

    So what’s the answer to the failings of the USPS? Repeal the Private Express Statutes and let the USPS loose to manage its own affairs without Congressional interference in its operations. As Lysander Spooner famously proved back in 1844 with the American Letter Mail Company, the private sector can not only deliver the mail, it can deliver the mail profitably for a fraction of the cost of the postal service. This solves two problems:

    1. The appearance that Amazon is subsidized through the USPS is eliminated

    2. Profitable, stable delivery organizations can come into play

    Repealing the private express statutes and getting government out of the mail delivery business may also very well save the USPS as not only can the USPS get out from under populist mandates, such as the overly generous retirement program and maintaining an absurd number of postal service locations; the USPS maintains over twice as many postal stops as McDonald’s has restaurants. It will also open up the market to more competition and competition breeds superior operations for competing members as creative methods of operation are more likely to be identified and can be mimicked, leading to superior operations for all players.

    In the end, the “problem” with Amazon is self-inflicted by the government insisting it operates a monopoly letter carrier. Trump can fix the problem with one fell swoop by pressuring Congress not to pass laws imposing higher rates on Amazon delivered packages, which will only accelerate the failure of the USPS since Amazon would just pick an alternate carrier, but to open up unrestricted competition in mail delivery and cut the USPS loose from the government tether. It certainly worked out well in New Zealand.

  • Nearly One-Third Of Americans Believe Facebook Has A "Negative Impact On Society"

    Chamath Palihapitiya, former Facebook vice president for user growth, isn’t the only one who believes his former employer is ripping apart the fabric of society.

    Palihapitiya triggered an unexpectedly intense backlash after revealing that he feels “tremendous guilt” for his role in building the social media giant, warning that, if you feed the beast, that beast will destroy you…”

    “I feel tremendous guilt.”

    “I think we have created tools that are ripping apart the social fabric of how society works. That is truly where we are.”

    “I would encourage all of you, as the future leaders of the world, to really internalize how important this is.  If you feed the beast, that beast will destroy you.  If you push back on it you have a chance to control it and reign it in.”

    “There is a point in time when people need a hard break from some of these tools.”

    “The short-term, dopamine-driven feedback loops we’ve created are destroying how society works.  No civil discourse, no cooperation; misinformation, mistruth. And it’s not an American problem — this is not about Russians ads. This is a global problem.”

    “So, we’re in a really bad state of affairs right now, in my opinion.  It is eroding the core foundations of how people behave by and between each other.”

    “And, I don’t have a good solution.  You know, my solution is I just don’t use these tools anymore.  I ahven’t for years.  It’s created huge tension with my friends.  Huge tensions in my social circles.”

    …He later walked his comments back after twitter users suggested that he maybe donate some of the money he made off the enterprise to a worthy cause.

    And now, shortly after it published reports about a survey showing 10% of US Facebook users deleted their accounts in the wake of the company’s latest data-privacy scandal, Recode is back with another scathing story about Facebook’s public identity crisis.

    Tavis McGinn, Mark Zuckerberg’s former personal pollster, conducted a survey that exposes just how reviled Facebook is in many parts of the world. Indeed, up to 33% of responds in Australia, Canada and the UK say Facebook is having a “negative impact on society.”

    Americans have a similarly negative perception of FB, with just 32% (about 54 million people) of the population also believing that Facebook has a negative impact. For context, that makes Facebook more popular than Marlboro cigarettes, but worse than McDonald’s.

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    In fact, the only countries where distrust in Facebook was relatively low were countries like Japan, where few people use Facebook.

    McGinn, who recently opened his own polling firm after leaving Facebook after six months, said he didn’t ask what, specifically, these negative impacts might be – but he says he has an idea.

    “In the U.S. obviously we’re very focused on election interference, and in the U.K. they’ve been focused on that as well with Brexit,” McGinn told Recode. “But there are also things like, ‘how does it affect children, how does the platform create addiction, how does the platform encourage extremism, how does the platform push American values onto other countries?’”

    There’s also the issue of Facebook’s data policies, which McGinn, who spent three years at Google, says are a result of Facebook’s DNA.

    “The culture has always been focused on driving usage, on getting more people to use and how to get them to spend longer on the platform,” he said. “It influences every decision, large and small.”

    And here’s the kicker: McGinn conducted his poll in January and February. Which means that, judging by the decline in user engagement – which had already been on the decline before the Cambridge Analytica scandal – negative perceptions of the company have probably worsened.

  • The Systemic Racism Of American Gun Control

    Authored by Steve C. via Free Market Shooter blog,

    Imagine if you will, centuries of racially-targeted denial of a well established, and popular civil right in the United States. Within this context, imagine that going back to colonial times, that it was at times legal to physically attack or even kill a free black person who was practicing this right, or that later state constitutions would outright prohibit the exercise of this right if you happened to have the wrong skin color.

    Imagine too, the US Supreme Court determining that citizenship rights could not be extended to free persons of color, lest they exercise this fundamental liberty. I am of course, talking about the right to keep and bear arms, which in a nutshell has laid out the horrors of systemic racism applied to that right from the colonial era to the Civil War.

    In 1857,  Chief Justice Taney wrote in the infamous Dred Scott case, that to extend citizenship to the “negro race” would allow black people to “keep and carry arms wherever they went.” This, along with voting and free speech, was problematic to white America at the time. Fear of slave revolts was so powerful, that even free blacks were to be denied basic civil rights, lest they perhaps attempt to overthrow slaveholders.

    After the Civil War, when thousands of freed slaves had served in the Union Army, and learned the use of arms, the situation was no better. As former Confederate states rejoined the Union, they quickly imposed onerous restrictions on the bearing of arms, with the understanding that they would not be enforced against white citizens. In 1870, the state of Tennessee banned ownership of all but the most expensive handguns. By 1907 five southern states had outlawed handguns altogether  (South Carolina, 1902) required their registration (Mississippi, 1906) or had instituted full or partial bans on inexpensive handguns (Tennessee in 1870 and 79, Arkansas in 1882, and Alabama in 1893).

    In each case, these laws were explicitly race based. Other southern states would over time admit that their gun laws were specifically designed to limit or prevent black citizens from acquiring or bearing arms, or would enforce such laws only along racial lines. In 1911, New York City passed the infamous Sullivan Act which was an open effort to disarm Eastern European immigrants, and other persons not wealthy or politically connected enough to acquire a permit to carry a pistol. As late as 1968, many believed the Gun Control Act of 1968 was passed less to control guns, and more “to control blacks”.

    Thomas Nasts 1878 political cartoon vilified white supremacy and reveals how helpless recently freed blacks were in some parts of the South

    Into the 1980’s and 90’s further attacks against poor (and usually black) persons and their right to keep and bear arms continued. Many state housing projectsattempted to ban the possession of guns in public housing, while in 1988 Maryland imposed a ban on inexpensive handguns, perhaps the most modern and recent ban on guns based on price.

    Florida at one time, went so far as to require a license to own “Winchester rifles” or other repeating rifles. This law, first enacted in 1893, and revised in 1901 was an insidious way to prevent minorities from gaining access to modern rifle cartridges like the .30-30 Winchester or modern bolt action rifles chambered for the same cartridge as the US Army Springfield. By attempting to bar blacks and other minorities from accessing modern repeating rifles, Florida was seeking to ensure they would remain helpless against a tyrannical state, and white supremacists. Needless to say, white people never had trouble gaining permission to own modern repeating rifles during this time.

    The National Firearms Act of 1934, or NFA was the first attempt at a national set of gun control laws that applied in all states. While not overtly racist, it targeted “gangster weapons”, and also would have originally placed handguns under the same strict regulation as machine guns and other NFA items. However, then, as now, “gangster” is often a polite way of describing an ethnic minority or minorities who are seen as undesirable. In the early 20th century, this was often Eastern European immigrants, which New York City’s Sullivan act targeted, in what may have been the first case of racist gun control laws targeted at Europeans.

    Today, the NFA continues to burden law abiding Americans by vilifying safety equipment such as suppressors, and making it difficult to acquire rifles and shotguns with short barrels. All this, due to racially driven moral panics over Prohibition era “gangsters” who often ran the gamut of socially unacceptable ethnic origins.

    Today, there is a great deal of heated debate on the way police treat ethnic minorities lawfully bearing arms as opposed to how they treat white people. In the 1960’s and 70’s, active and openly armed resistance played an important role in the Civil Rights Movement, and the Black Panthers most famously took it to to extremes by openly bearing arms at several state capitol buildings. It should be noted, that in California and Washington State, that action resulted in new laws about the open display of guns, but modern day (and mostly white) open displays of arms under similar circumstances have not been met with new legislation.

    Members of the Black Panthers protest for gun rights in Olympia, Washington – 1969

    We might speculate that modern day attempts at gun control are race neutral, but if you consider that most, if not all gun control is driven from major population centers, and that “tough on crime” is just another racist dogwhistle, then we can start seeing the more implicit gun control. Rarely do these sorts of laws openly target rural areas, but “inner city gun crime” is regularly trotted out as some sort of crisis to stamp out – and if it happens to disarm law abiding minorities, who cares?

    One might ask why in the enlightened 21st century, there is still fear over armed minorities. The answer remains the same. An armed person is free, but a disarmed person is a subject. The War on Drugs succeeded in destroying the inner cities by breaking up families, and disenfranchising millions of minorities, and on the heels of this, modern day gun control has succeeded in leaving only criminals and violent gangs armed. Today, as in the harsh years of the 19th century, racism requires minorities to be unarmed, and unable to fully stand up for themselves, or their rights, lest they too gain their place in the sun and walk as equals in American society.

    The question then, is how to combat this pervasive, systemic racism? The very political party that claims to support the best interests of American minorities, also is the one that openly, and actively seeks to disarm them. The Democratic Party’s open assault on gun rights even has a paternalistic ring to it, that is straight out of the 19th century. We must ban guns “for the children” or “to protect our communities.” From their lofty (and mostly white) seats of power, they demand the inner cities and urban areas of America surrender their arms, their liberties and their rights in order to “fight crime”, and in return, they are met with hostile police forces, an ongoing war on civil rights disguised as a war on drugs, and the assurance that the government will protect them. This of course, being the same government that has spent hundreds of years actively suppressing these populations. How it is different today is beyond me.

    Today, it is expected ethnic minorities will be left wing leaning, and it is expected if you are left wing, you are anti gun. It is a perfect formula that took centuries to perfect. How better to disarm a people, than to convince them to support that idea themselves? It is insidious, twisted and a violation of all basic moral and legal ideals which this country was founded upon.  Landmark Supreme Court decisions like Heller and McDonald have established once and for all that the 2nd Amendment applies to ALL states and ALL Americans. Places like Chicago and Washington DC have grossly abused these rulings by imposing strict limits on carrying guns, and imposed excessive financial and regulatory burdens on acquiring permits to carry a gun. Other states like California and many East Coast states already do the same. It is the same, age old tactic. Pay lip service to civil rights, but make sure that only the well to do, and well connected can actually exercise them.

    What then can be done to combat the deeply rooted racism that is at the heart of gun control in modern America? This is a very complicated question, as the very idea of minorities organizing for their interests has been seen as threatening by many people over the years. However, there are now a rock solid set of Supreme Court cases which make it patently clear that the right to keep and bear arms is a right for all  Americans to enjoy. There are many pro-gun groups which actively promote the right to keep and bear arms, and increasing minority membership in them is a net positive for all parties involved.

    The divisive nature of American politics today often pits people with shared common interests against each other, if they happen to espouse different beliefs in other areas. While many rational Americans agree about some things, they do not agree on all, but in the arena of gun rights, all gun owners should welcome each other, and put aside other political differences to promote gun rights for all people. This may be the biggest stumbling block to overcoming the deep seated racism that is modern day gun control. Far too often I have seen so-called conservativesreject gun owning allies, because they voted the wrong way. Divisive and emotion driven political beliefs on non gun related issues keep gun owners apart from each other, and this wedge is almost assuredly a deliberate action to keep people from coming together in common purpose.

    Racism is a vicious, ugly and horrible blight on American society, and now more than ever it must be stamped out, and gun rights taken back from laws rooted in keeping slaves and free blacks under control, or in suppressing the rights of the poorest and most vulnerable members of our society. Civil rights are for everybody, and everybody must come together to defend them.

    For more reading about the roots of racism in American gun control, I recommend Clayton Cramer’s The Racist Roots of Gun Control, and Robert F. Williams’ Negroes With Guns as well as Akinyele Omowale Umoja’s We Will Shoot Back: Armed Resistance in the Mississippi Freedom Movement.

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Today’s News 15th April 2018

  • The War Machine Springs To Life Over Syria

    Update: A few short hours after the initial writing of this report, the US, the UK and France conducted a missile air strike against Syria 

    Authored by Chris Martenson via PeakProsperity.com,

    NATO has drawn 1st blood. Will Russia respond?

    The events of the past few days involving Syria, the US and Russia are highly concerning.

    Currently, the US is busy readying to drop just dropped ~120 missiles on Syria to punish it for an alleged poison gas attack on its civilians. I say “alleged” because no on-the-ground investigation has been conducted.

    At this point, we don’t really know with confidence what was done by whom. But America’s war machine is straining hard against it’s chain, eager to strike. And this poison gas atrocity may just be the excuse the West needs to unleash it.

    Whodunit?

    We do know that Syria at one time indeed had stockpiles of chemical weapons. But they handed them over to international inspectors some years back.  Could they have kept some stocks hidden? Sure.

    But we also know that the rebel jihadists in Syria have been caught making and using chemical weapons many times in the recent past.  Russia has repeatedly brought forth evidence of chemical manufacturing sites (very crude basement laboratories, really), located in areas recently recaptured from Syrian jihadists and mercenaries. So it easily could have been the jihadists that conducted the gas attack.

    Are these so-called “moderate rebels” morally capable of using poison gas on civilians, children especially?  You bet they are.  These are proven head-choppers, supported by the US, who have publicly posted numerous videos of themselves beheading children.  Morals are not part of their framework or this war.

    Plus, the gas war crime certainly serves their interest more than it does Assad’s at this time.

    Between the two suspects, it’s far more likely that the increasingly desperate jihadists, who are clearly losing the fight at this point, would use any and every method at their employ to their advantage. 

    The West’s response right now feels like a bad detective movie. Imagine the lead investigator of a grisly murder choosing to focuses first on the neighbor down the hall, while ignoring the spouse with a past history of domestic abuse and who recently took out a very large life insurance policy on the victim.  The current “Blame Assad!” narrative seems a poorly written script where you have to overlook a lot of gaping plot holes to get through the movie.

    So there hasn’t been an independent investigation to clarify with confidence who is the guilty party here. But that hasn’t stopped a swift verdict from circulating throughout the western press: “Assad’s government did it, and must be punished.”

    Keep in mind that US-made cluster bombs are busy killing children in Yemen. And nearly 130 Yemen children die every day from starvation thanks to the combined actions of Saudi and US forces blockading that nation’s access to world markets. 

    Suddenly, children in Syria matter a lot to the West, while Yemen’s child victims are rarely ever mentioned. Suddenly there’s an urgent moral issue being rushed through the court of public opinion.

    This has all the hallmarks of the prior propaganda campaigns we’ve seen before.  Scant evidence, immediate assignment of blame, and a quick rush to military action before anybody can really properly question the train of events.

    The Rising Risk Of War

    Which leads us to where we are now: the US and several NATO countries may attack just attacked Syria very soon with cruise missiles launched from ships (highest likelihood) and possibly airplanes.

    Any such attack, it needs repeating, would be illegal under world laws if it happens without prior UN Security Council approval. Receiving such approval will be highly unlikely, because Russia sits on that council and has veto vote power.  So any attack will, by definition be illegal, and not a sanctioned affair.

    However, the US and its allies have been operating illegally in Syria for many years. They haven’t shown much concern to-date for securing international approval of their actions. It’s unlikely to expect that to change anytime soon.

    But the US isn’t the only one on the schoolyard who can throw a punch. Russia, which has been supporting the Bashir al-Assad regime in Syria, is now taking a much harder line.

    After years of being increasingly painted as the West’s favorite villain (the latest campaign instantly blaming Putin for the poisoning of ex-spy Skripal was particularly hamfisted), Russia has made it clear: they are done being provoked. They won’t backpedal any farther. If/when the US launches missiles at Syria, Russia has promised to shoot them down and fire a counter-strike at the launchers.

    This is serious folks:

    Russia will shoot down all US missiles and sources of fire, Russian Ambassador says

    Russian Ambassador to Lebanon Alexander Zasypkin said in an interview with the Lebanese TV channel Al-Manar that Russia would shoot down all missiles in case of US military aggression against Syria, RIA Novosti reports.

    Russian air defence systems will be used to destroy both the weapons and the sources of fire.

    Earlier, The New York Times reported that US presidential aides recommended the head of the White House to inflict a series of fierce attacks on several targets in Syria in response to the alleged chemical attack in the city of Douma, even though the fact of the chemical attack itself was never proved.

    If Russia shoots back at the “sources of fire”, that means the US ships and planes used to launch the cruise missiles

    I’d personally be worried sick if someone I loved was on the USS Donald Cook right now.  This is the “source of fire” most likely to be employed. 

    Oddly, it’s all alone there in the Mediterranean. Other US ships appear to be days away. Perhaps it’s “odd” in the same way as when the best ships in the seventh fleet were conveniently out of harm’s way when Pearl Harbor was attacked, leaving only older less seaworthy ships to be sunk, and giving President Roosevelt the casus belli he needed to get America into WW2.

    Will the USS Donald Cook be the neo-cons’ sacrifice as they endeavor to get their war with Russia kicked into a higher gear?

    The US, for its part, is apparently busy communicating with the Russians, communicating it will seek to avoid killing any Russians if at all possible should it strike Syria.  This will limit the range of targets, but the risks are still very, very high:

    A strike against Syria will likely come in the form of missiles, as was the case last year.

    The United States would not want to risk putting manned aircraft over Syrian air defenses — a shoot-down would send the conflict spiraling in unforeseeable new directions.

    The USS Donald Cook, an Arleigh Burke-class guided-missile destroyer, is within easy striking range of Syria, as is a French frigate with its own cruise missiles.

    These two ships, possibly aided by a US submarine, are likely to play a role in a strike.

    What are the risks?

    The reaction from Assad backer Moscow is unpredictable and Russia has threatened retaliatory action against the United States if missiles are fired at Syria.

    The Russian army on Wednesday accused the White Helmets civil defense organization of staging a chemical weapons attack in Douma, where observers say more than 40 people died in a gas attack.

    NBC News reported Tuesday that Russia has learned how to use GPS jammers to limit the capabilities of US drones operating over Syria.

    “The US has to be very careful not to accidentally strike Russian targets or kill Russian advisors,” Ben Connable, a senior political scientist at the RAND Corporation, told AFP.

    “That significantly limits the number of options available to the United States, because the Russians are embedded in many cases with the Syrians.”

    Connable warned that if the US accidentally or purposefully kills uniformed Russian soldiers, there would potentially be a dangerous escalation between the two nuclear powers.

    (Source)

    The plan here is for Trump get to appear tough, garnering the praise of the war party in the US (which is solidly bi-partisan) and the war press (the entire MSM), while not killing any Russians and, frankly, not doing too much actual damage to Syria.

    This is pretty much from the same playbook as last year’s false-flag gas attack in Syria, when we fired 59 Tomahawk missiles. 

    But this time, Russia has made it clear that any repeat of last year’s missile attack will have consequences. It has moved its key naval assets out of port and into strike positions:

    APRIL 12, 2018: RUSSIA STARTS EXERCISES OFF SYRIAN COAST, VOWS RESPONSE TO US STRIKES

    The Russian Navy has launched live-fire exercises off the Syrian coast as the US is still preparing for a possible military action against the country’s government.

    The Russian exercises will be held from April 11 to April 26, the period when, according to some experts, the US strike will be most likely if the administration of US President Donald Trump decides to attack Syria.

    On April 10, Russia’s envoy to Lebanon Alexander Zasypkin once again confirming that Russian forces are ready to shoot down missiles and target the launchers in case of an escalation in the war-torn country.

    Ali Akbar Velayati, the top adviser to Iran’s supreme leader Ali Khamenei, vowed to support the Damascus government against any attack of the US and its allies.

    So now we have Russian ships in the Mediterranean on live-fire exercises, bumping around a smallish sea with US naval assets, with everybody on pins and needles as NATO-Russia relations break down and tensions rise.

    What could possibly go wrong?

    Again, sane people ought to be asking why we are even in this position in the first place.  Exactly what US interests are at risk in Syria? Whatever they may be, is defending them worth risking a hot confrontation with a nuclear power over? So far, I’ve seen zero compelling explanations on this front.

    A Dangerous Advertising Campaign?

    Looked at from a different angle, here’s an interesting article from a Russian newspaper (translated by Google so please read past the choppy writing…) which posits that the attack will be proven a useful test of Russia’s latest anti-missile systems.

    If successful, Russia may well get to sell lots of them in the future. Great news comrades! We’re getting the chance to showcase our products!

    The S-400 and “Pantsiri” are preparing for a grandiose exam in Syria

    “Russian air defense systems in Syria have an opportunity to show everything they are capable of,” a source close to the Russian Defense Ministry noted in a comment to the newspaper VZGLYAD. Such a check is worth a lot, the interlocutor notes.

    “For the military all over the world, this will be an extremely important lesson – the analysis of this blow and its reflection will long be handled by the headquarters of all the leading military powers of the world,” the general believes. The subject of analysis will also be how the electronic warfare complexes (EW) will work when reflecting missile strikes.

    The number of downed enemy missiles is not an end in itself, Lieutenant-General Alexander Gorkov, head of the air defense missile forces in 2000-2008, remarked in conversation with the newspaper VZGLYAD. He stressed: “The air defense forces are designed to completely conserve the object. Therefore, if only one of the 100 rockets is shot down, but the one that flew exactly to the target, and because of this the object survived, this is considered a success. “

    But there are objective criteria for anti-aircraft gunners.

    This indicator means the probability of a target being hit by one missile. The number of intercepted targets is divided by the total number of missiles fired. For example, less than 0.7 means low efficiency; 0.8 and above – good, 0.9 – excellent, explained earlier to the portal ” Economy Today ” Lieutenant General Aitech Bizhev, former deputy commander-in-chief of the Russian Air Force on the CIS Joint Air Defense System.

    “If we are talking about cruise missiles going at extremely low altitudes, then the efficiency should be at least 0.85-0.90,

    As an example, Bezhev cited the result of the Syrian air defense forces, which recently repulsed the attack of  Israeli aircraft. F-15 planes fired eight missiles, the Syrians intercepted five of them. Thus, the coefficient was 0.6, that is 60% of the shot down missiles. This result is not very pleasing, Bezhev complained.

    However, the expert of the Center for Analysis of Strategies and Technologies (ACT) Vasily Kashin believes that the destruction of 50-60% of US missiles would be a huge success for Russian weapons. In fact, he added, even the destruction of 30% can be considered a great success, if we bear in mind both Russian and Syrian air defense forces.

    It should be taken into account that the Syrians used old complexes, notes Bizhev. And the newest S-400 air defense systems are located at Russian facilities – the Khmeimim base and in Tartus. According to the Lieutenant-General, the efficiency of the S-400 for unobtrusive speed targets is 0.9, that is “magnificent”, 90%.

    In turn, Kashin recalls: in addition to our ground-based air defense in Syria will be two Russian frigates with the complex “Shtil-1”, which stand off the coast of Syria. “Each of them has a vertical launch for 24 anti-aircraft missiles,” the expert reminded VZGLYAD.

    Potential buyers of weapons following the outcome of this conflict will draw conclusions about which weapon systems are more effective – American cruise missiles or Russian air defense systems. For a correct assessment, it is important to consider how many missiles are fired at the covered targets. “If the enemy will use a huge number of missiles, for example, more than 200, then you do not know exactly how many missiles will be on the target. Miracles do not happen, “Kashin said. He adds that it is impossible to completely repulse such a blow.

    “For example, there are 100 air targets, for each we spend two anti-missiles. With this amount you need to have a very high ammunition. Is there such a number of missiles in the ammunition of the grouping deployed in Syria? “Asks General Alexander Gorkov.

    “The combat component of the S-300 division is 32 missiles (if there are eight launchers) or 48 missiles, if 12 units are available,” the interlocutor points out. “If two rockets are used for each shooting, the ammunition will be enough for 16 or 24 launches, respectively.” If the coefficient of 0.9 is shown in these shootings, this will be evaluated as a success, including potential buyers of Russian weapons.

    Even if that was a little long and technical for you, just know I find it possibly comforting. If Russia is looking for a ‘grandiose exam’ of its war matériel, and the US is going to attack mainly to satisfy internal politics (and Russia knows this), then that may contain any military exchange to a relatively small skirmish (for now). 

    But if not, and Russia is truly backed into a corner, tired of the West’s vilification and NATO’s encroachment, it will show it claws. History has long shown that the Middle East is a powder keg where conflicts can easily escalate quickly. Where escalation might lead in this case is very worrisome indeed.

    Time To Prepare For War

    There remains, as yet, no evidence proving Assad’s government was behind the alleged gas attack in Douma.

    All that’s been presented to the world are video clips showing what appear to be stricken people. However, we have long learned that such videos prove to be fraudulent. The same White Helmets who released these clips have been caught many times before using crisis actors and staging events that look just like the videos released — shaking cameras that sweep and lurch in tights shots over closely spaced bodies, poor lighting, etc. 

    Moreover, the US and NATO blamed Assad and Russia within hours of these release of these videos, well before any actual evidence could have been collected and confirmed. As of course, they’ve similarly done time and again over the past years. Clearly, there’s an eagerness on the West’s side to find a reason to take harder action against Russia.

    Will this one be it?

    While the prospect of a kinetic (shooting) conflict between the West and Russia is obviously of greatest concern, the war could happen in one or several of many other forms (cyber, financial, trade, etc.) which I’ve written about extensively in the past.

    We need to prepare ourselves for the prospect of war, even if this situation merely turns out to be an S-400 marketing blitz.  Because at the current trajectory, even if this event turns out not to be the flashpoint that ignites a larger confrontation, the odds of one that does happening soon is just too damn high.

    It’s very clear that the US has embedded neocons that want a unipolar world where the US is top dog and gets to boss around China and Russia.  That makes war “highly likely” in our future. 

    China and Russia quite rightly believe that they deserve to be treated on more equal footing and have their own national pride and internal political realities with which to contend, meaning they cannot appear to be pushed around by the US.  Saving face is important.

    In Part 2: What To Prepare For we assess the most likely paths the current standoff may take, the probability of each, and what the ramifications of each would be. Knowing tomorrow’s likeliest outcomes will help you best prepare today.

    An escalating conflict between the US and Russia, even if limited to a proxy war in Syria, will result in tremendous casualites — of life, of geopolicital relations, and of markets. Protect yourself, those you love, and your wealth from becoming part of the collateral damage.

    Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

  • 9 Things Cannabis Investors Should Know

    The swift regulatory changes taking place in the global cannabis sector are almost without modern precedent.

    While some find the situation analogous to the repeal of Prohibition in the United States,Visual Capitalist’s Jeff Desjardins notes that it’s also fair to point out that such events happened 85 years ago in the midst of the Great Depression. It was a long time ago, and in a very different economic climate.

    Today’s infographic comes to us from Evolve ETFs, and it shows what investors should know as the legal cannabis sector comes out of the dark.

    Courtesy of: Visual Capitalist

    WHAT CANNABIS INVESTORS SHOULD KNOW

    Since there is so much happening at once with little precedent for what such a market will look like, it’s worth summing up the sector’s potential in broad strokes:

    1. Global Size
    According to research from The Brightfield Group, the size of the legal cannabis sector is expected to surge from $7.7 billion to $31.4 billion between 2017 and 2021.

    Currently the recreational market makes up only 37% of the global total – but by 2021, that will rise to 57%.

    2. Versatile Uses
    Cannabis comes in different forms. One gram of dried cannabis is roughly equivalent to:

    • 5g of fresh cannabis

    • 15g of edible product

    • 70g of liquid product

    • 0.25g of concentrates

    • 1 cannabis plant seed

    These can be used in various medical applications, including to fight chronic pain, migraines, anxiety, multiple sclerosis, and nausea. Cannabis can also be used to treat Alzheimer’s, PTSD, and cancer.

    3. North American Growth
    By 2021, it’s estimated that North American sales will make up 86% of the global market. Specifically, the U.S. legal market is projected to hit $18.1 billion by that time, while the Canadian legal market is expected to be $8.9 billion in that same year.

    4. A Shifting Legal Landscape
    Canada will be the first G7 country to legalize cannabis at a federal level.

    In the United States, recreational cannabis is already legalized in nine states – but this could change swiftly as various states undergo referendums.

    5. European Markets
    In 2017, the legal market for cannabis is estimated to be just $0.11 billion, but by 2021 it will have expanded to $3.8 billion.

    According to The Brightfield Group, growth will be quite impressive in Western Europe: Germany’s market will grow at a 284% annual rate, the Netherlands at 364%, and Spain at 334%.

    6. Rest of the World
    Although markets outside of North America and Europe will not see the same growth in absolute dollar terms, the legal cannabis market will still expand from $80 million to $350 million, led by activity in Latin America.

    7. Pharmaceutical Research
    Israel has a special place in the cannabis world – the country is world leader in medical cannabis research, and industry expects that it will eventually translate into a $1 billion export opportunity. That said, export plans have hit a recent road bump.

    8. Investment Activity
    Compare the start of 2018 to that of 2017, and you’ll see an impressive difference in investment activity.

    For this we use Canada with its impending recreational legalization as an example: in the first six weeks of 2018, investment was up nearly 7x over the previous year. Further, the average deal size increased from $5.6 million to $18.7 million.

    Meanwhile, the Canadian Cannabis Index rose 201% between January 2017 and January 2018.

    9. How to Invest?
    There are a variety of ways to gain exposure to the sector, including:

    • Licensed producer stocks

    • Biotech stocks

    • Ancillary services stocks

    • Licensed retailer stocks

    • Cannabis ETFs

    Regardless of how you play it, the legal cannabis sector is coming out of the dark – and it will be interesting to see how the industry takes shape.

  • WikiLeaks Secret Cable: "Overthrow The Syrian Regime, But Play Nice With Russia"

    Hours after the overnight US-led missile strikes on Syria, WikiLeaks republished a crucially important diplomatic cable through its official media accounts confirming that Saudi Arabia’s long term strategy in Syria has been to pursue regime change “by all means available.” According to the leaked internal Saudi government document, this is the kingdom’s proposed end-goal even should the United States at any point show “lack of desire” due to the threat of Russian response and possibility of a ‘great power’ confrontation. 

    With American lawmakers and media pundits already urging President Trump to escalate and sustain attacks against Syria, it must be remembered that close US allies like Israel and Saudi Arabia have long coordinated to create the conditions that might tip the US administration toward full military action resulting in regime change in Damascus. And more recently, fresh off his weeks-long tour of the US, Saudi Crown Prince Mohammed bin Salman has both slammed previous proposals of US troop withdrawal in Syria and declared eagerness “to work with allies on any military response in Syria if needed.”

    It is also essential to recall that the al-Qaeda linked group which originated the claims of a government orchestrated chemical attack on civilians in the Damascus suburb of Douma, called Jaish al Islam (JAI), is and has always been state sponsored by the Saudi regimeThe Guardian, among others, reported beginning in 2013 that Saudi Arabia founded and trained the group, spending millions. 

    Secret Saudi cable produced by WikiLeaks: Saudi Arabia “must seek by all means available and all possible ways to overthrow the current regime in Syria” even should the United States at any point show “lack of desire.”

    Notably, as Russia as well as some Western counter-terror experts continue to point the finger at Jaish al Islam (and the “White Helmets”) for staging the Douma “chemical attack” in order to provoke the US military response, it has emerged through past reporting that JAI itself had used chemical weapons against Kurdish militias in Aleppo’s Sheikh Maqsoud district in 2016 (and it appears that the Saudi-backed group openly admitted to carrying out prior chemical attacks according to The Daily Beast).

    Given this current context and the continued rapid unfolding of the crisis, the previously leaked ‘secret’ Saudi memo published by WikiLeaks takes on new significance and meaning: did the Saudis finally trigger their “by any means available” scenario (a ‘chemical incident’) at a moment when their proxies were collapsing in the face of overwhelming Syrian Army victory? 

    The below article and translation was originally authored by Brad Hoff in 2016 for WikiLeaks and Foreign Policy Journal, and is used here with permission.  

    * * *

    Secret Intel Memo: Overthrow the Regime “by all means available”

    A WikiLeaks cable released as part of “The Saudi Cables” in the summer of 2015, now fully translated here for the first time, reveals what the Saudis feared most in the early years of the war: Russian military intervention and Syrian retaliation. These fears were such that the kingdom directed its media “not to oppose Russian figures and to avoid insulting them” at the time.

    https://twitter.com/wikileaks/status/985171468525940737

    Saudi Arabia had further miscalculated that the “Russian position” of preserving the Assad government “will not persist in force.” In Saudi thinking, reflected in the leaked memo, Assad’s violent ouster (“by all means available”) could be pursued so long as Russia stayed on the sidelines.

    The following section of the leaked cable is categorical in its emphasis on regime change at all cost, even should the U.S. vacillate for “lack of desire”:

    “The fact must be stressed that in the case where the Syrian regime is able to pass through its current crisis in any shape or form, the primary goal that it will pursue is taking revenge on the countries that stood against it, with the Kingdom and some of the countries of the Gulf coming at the top of the list. If we take into account the extent of this regime’s brutality and viciousness and its lack of hesitancy to resort to any means to realize its aims, then the situation will reach a high degree of danger for the Kingdom, which must seek by all means available and all possible ways to overthrow the current regime in Syria. As regards the international position, it is clear that there is a lack of ‘desire’ and not a lack of ‘capability’ on the part of Western countries, chief among them the United States, to take firm steps…”

    Amman-based Albawaba News—one of the largest online news providers in the Middle East—was the first to call attention to the WikiLeaks memo, which “reveals Saudi officials saying President Bashar al-Assad must be taken down before he exacts revenge on Saudi Arabia.” Albawaba offered a brief partial translation of the cable, which though undated, was likely produced in early 2012 (based on my best speculation using event references in the text; Russia began proposing informal Syrian peace talks in January 2012).

    Russian Hardware, a Saudi Nightmare

    Over the past weeks Saudi Arabia has ratcheted up its rhetoric on Syria, threatening direct military escalation and the insertion of special forces on the ground, ostensibly for humanitarian and stabilizing purposes as a willing partner in the “war on terror.” As many pundits are now observing, in reality the kingdom’s saber rattling stems not from confidence, but utter desperation as its proxy anti-Assad fighters face defeat by overwhelming Russian air power and Syrian ground forces, and as the Saudi military itself is increasingly bogged down in Yemen.

    Even as the Saudi regime dresses its bellicose rhetoric in humanitarian terms, it ultimately desires to protect the flow of foreign fighters into Northern Syria, which is its still hoped-for “available means” of toppling the Syrian government (or at least, at this point, permanent sectarian partition of Syria).

    U.S. State Department Confirmation

    The U.S. State Department’s own 2014 Country Report on Terrorism confirms that the rate of foreign terrorist entry into Syria over the past few years is unprecedented among any conflict in history:

    “The rate of foreign terrorist fighter travel to Syria–totaling more than 16,000 foreign terrorist fighters from more than 90 countries as of late December–exceeded the rate of foreign terrorist fighters who traveled to Afghanistan and Pakistan, Iraq, Yemen, or Somalia at any point in the last 20 years.”

    According to Cinan Siddi, Director of the Institute for Turkish Studies at Georgetown’s prestigious School of Foreign Service, Russian military presence in Syria was born of genuine geopolitical interests. In a public lecture recently given at Baylor University, Siddi said that Russia is fundamentally trying to disrupt the “jihadi corridor” facilitated by Turkey and its allies in Northern Syria.

    The below leaked document gives us a glimpse into Saudi motives and fears long before Russian hardware entered the equation, and the degree to which the kingdom utterly failed in assessing Russian red lines.

    * * *

    A full translation of the text

    THE BELOW is an original and authenticated translation of the WikiLeaks file published as part of “The Saudi Cables.”  Note: the cable as published in the SaudiLeaks trove appears to be incomplete. Its accompanying pages have yet to be located within the massive trove of leaked Arabic documents. 

    […] shared interest, and believes that the current Russian position only represents a movement to put pressure on him, its goals being evident, and that this position will not persist in force, given Russia’s ties to interests with Western countries and the countries of the Gulf.

    If it pleases Your Highness, I support the idea of entering into a profound dialogue with Russia regarding its position towards Syria*, holding the Second Strategic Conference in Moscow, working to focus the discussion during it on the issue of Syria, and exerting whatever pressure is possible to dissuade it from its current position. I likewise see an opportunity to invite the head of the Committee for International Relations in the Duma to visit the Kingdom. Since it is better to remain in communication with Russia and to direct the media not to oppose Russian figures and to avoid insulting them, so that no harm may come to the interests of the Kingdom, it is possible that the new Russian president will change Russian policy toward Arab countries for the better. However, our position currently in practice, which is to criticize Russian policy toward Syria and its positions that are contrary to our declared principles, remains. It is also advantageous to increase pressure on the Russians by encouraging the Organization of Islamic States to exert some form of pressure by strongly brandishing Islamic public opinion, since Russia fears the Islamic dimension more than the Arab dimension.

    In what pertains to the Syrian crisis, the Kingdom is resolute in its position and there is no longer any room to back down. The fact must be stressed that in the case where the Syrian regime is able to pass through its current crisis in any shape or form, the primary goal that it will pursue is taking revenge on the countries that stood against it, with the Kingdom and some of the countries of the Gulf coming at the top of the list. If we take into account the extent of this regime’s brutality and viciousness and its lack of hesitancy to resort to any means to realize its aims, then the situation will reach a high degree of danger for the Kingdom, which must seek by all means available and all possible ways to overthrow the current regime in Syria.

    As regards the international position, it is clear that there is a lack of “desire” and not a lack of “capability” on the part of Western countries, chief among them the United States, to take firm steps […]

    *[in the Arabic text: Russia, but this is a typo]

  • UK Produces "Dossier" To Prove Russian Motive In Skripal Poisoning, Russia Says UK Abducted Daughter

    The UK has proffered what they claim is evidence that Russia has had it out for former double-agent Sergei Skripal since at least 2013, and that Russia has been researching the effectiveness of spreading a nerve agent on door handles for assassination purposes, according to the BBC and the New York Times. The revelations are courtesy of Sir Mark Sedwill, Britain’s national security advisor, who detailed the declassified claims in a Friday letter to NATO. From the NYT:

    Mr. Sedwill’s letter, the most detailed account of British intelligence on the subject to be shared with the public to date, also reported that President Vladimir V. Putin of Russia was “closely involved in the chemical weapons program” beginning in the mid-2000s.

    During that period, the letter claims, Russia was secretly developing the nerve agents known as Novichok that British officials say were used in the March 4 attack on Sergei V. Skripal and his daughter, Yulia, in the quiet cathedral city of Salisbury, England.

    Mr. Sedwill’s letter also said that Britain has evidence that Russian security services have been monitoring the Skripal family. Cyberspecialists from Russia’s Foreign Intelligence Services hacked Ms. Skripal’s email in 2013, the letter said. Asked about that at his news conference, Mr. Yakovenko responded sarcastically, “Big surprise.”

    The letter added that Russian intelligence services “view at least some of its defectors as legitimate targets for assassination.” –New York Times

    The letter also claims that “during the 2000s,” a special Russian unit began to develop chemical weapons specifically for state-sponsored attacks, and to “train personnel from special units in the use of these weapons.” 

    This program subsequently included investigation of ways of delivering nerve agents, including by application to door handles,” the letter also says.

    Meanwhile, “Russia believes Yulia Skripal has been abducted by Britain – and that the UK is faking sources in order to blame the Kremlin for her poisoning,” Sky News reported on Thursday after having spoken directly with Russia’s foreign ministry spokeswoman, Maria Zakharova.

    We have zero information from officials in London about what is going on with her,” Zakharova told Sky News presenter Dermot Murnaghan in Moscow, adding “We have suspicions that she’s been abducted, held against her will.”

    “We just want to be sure that Yulia Skripal is actually better, that this is for real.”

    Yulia Skripal was found unconscious in a Salisbury park on March 4, along with her father, former Russian double-agent Sergei Skripal. The circumstances surrounding their poisoning – including the origin and delivery method of the Novichok nerve agent used on the pair has been the source of heated debate for over five weeks.

    Despite no formal investigation having been conducted (and a curious link between Sergei Skripal and former MI6 spy Christopher Steele having been revealed by The Telegraph), several nations consequently slapped Russia with sanctions under the presumption that they were responsible for the attempted assassinations. 

    Yulia cuts off her cousin

    While Yulia Skripal was in the hospital, she reportedly spoke with her Russian cousin Viktoria over the phone – a recording of which was broadcast by Russian television last Thursday in a conversation which the Rossiya 24 announcer emphasized was unverified.

    In the recording, Yulia can be heard telling Victoria that she and her father are healthy, and neither has suffered long-term health damage from the poisoning. British authorities maintained that only Yulia was conscious at the time and that her father was in “critical but stable” condition

    Viktoria Skripal, meanwhile, has repeatedly expressed doubts that Russia was behind the attack – suggesting, says the New York Times, that “bad fish” or an attack by the mother of Yulia Skripal’s boyfriend could have sickened the pair. 

    Relocating to America?

    Last weekend we covered a story from The Sunday Times about a rumor that Sergei and Yulia Skripal will likely be offered “a new life in America in an attempt to protect them from further murder attempts.”

    Intelligence officials at MI6 have had discussions with their counterparts in the CIA about resettling the victims of the Salisbury poisoning. “They will be offered new identities,” a senior Whitehall figure said.

    Security sources said Britain would want to ensure their safety by relocating them with one of the “five eyes” countries, the intelligence-sharing partnership that also includes America, Canada, Australia and New Zealand. –The Times

    The obvious place to resettle them is in America, because they’re less likely to be killed there and it’s easier to protect them there under a new identity,” an intelligence source familiar with the negotiations added. “There’s a preference for them to be resettled in a five-eyes nation because their case would have huge security implications.”

    Many are wondering how the pair survived exposure to one of the deadliest nerve agents on the planet, as a 1mm drop is the lethal dose – about the size of a small drop of rain. So far we’ve been told the Novichok was either smeared on a doorknob, at Sergi’s wife’s graveside, the air vents on Sergei’s BMW, and a “gift from friends” opened by Yulia at Zizi’s restaurant. Whatever the case, it also sickened 38 others

    Skripal, a former double agent who was imprisoned in Russia in 2006 after the Kremlin discovered he had been cooperating with British secret services since 1995. He was released and pardoned by then-president Dmitry Medvedev in 2010, and relocated to the UK as part of a spy swap. According to The TelegraphSkripal reportedly has ties to former MI6 agent Christopher Steele

    The Telegraph understands that Col Skripal moved to Salisbury in 2010 in a spy swap and became close to a security consultant employed by Christopher Steele, who compiled the Trump dossier. 

    The British security consultant, according to a LinkedIn social network account that was removed from the internet in the past few days, is also based in Salisbury.

    On the same LinkedIn account, the man listed consultancy work with Orbis Business Intelligence, according to reports. –The Telegraph

    The Telegraph‘s report implies that Skripal – still tied to Russian intelligence, could have been a source for some of the claims in the “Steele Dossier,” a 35-page document full of salacious and unverified claims about Donald Trump, which was paid for by Hillary Clinton and the DNC and arranged for by opposition research firm Fusion GPS.

    If Skripal was involved in the Steele dossier – it would greatly expand the list of who might want him to wake up dead. 

  • "Elon Knew": New Lawsuit Alleges Musk Knowingly Lied About Model 3 Production

    A new securities class action lawsuit filed in late March 2018, which names Elon Musk as a defendant, alleges that the Tesla CEO knew that the Model 3 was not going to be able to be produced as the rates he claimed – and that the company was not going to be able to meet production goals due to – get this – the production lines not even being assembled. The lawsuit alleges that this didn’t prevent Elon Musk from going out and telling the investing public otherwise, hence the allegation of securities fraud.

    First, the allegation that Musk was told by his own employees that the Model 3 couldn’t be mass produced by the end of 2017, which was the company’s stated goal:

    Then, after claiming in May 2017 that the company was “on track” to meet its mass production goal, it’s alleged the company hadn’t even finished building its production lines, clearly meaning it wasn’t “on track”. The lawsuit alleges that Musk knew the line was “way behind”:

    The suit alleges that the company was building Model 3’s by hand at a “pilot shop” at the same time Tesla claimed to be on track for “mass production”; it also claims that it was “evident to anyone who visited the facility” – including Elon Musk – that the line wasn’t built and that “construction workers were spending most of their shifts sitting around with nothing to do”:

    We also read in the lawsuit that Tesla’s Gigafactory, at the time in question, was allegedly capable of producing only one battery pack per day – and that the production of one battery pack took “two shifts” to complete.

    The suit alleges that the company’s former CFO, Jason Wheeler – who is one of more than 50 key executives and VPs to have left the company over the last half decade or so – told Elon Musk personally that they wouldn’t be able to mass produce by the end of 2017. The entire lawsuit is available at this link and some of the most interesting content was first shared by critics of the company on Twitter.

    The drumbeat of accountability for Elon Musk continues to pound louder and louder as each day progresses, with some analysts calling for the SEC to investigate him if the company doesn’t meet its stated cash flow positive and “no capital raise” guidance for the back end of 2018.

    Yesterday we detailed how the company is cutting corners with production and suppliers, as well as with its certified preowned vehicle program. Commentators continue to suggest that Elon musk should be held accountable by regulators if the company again raises capital this year or is not free cash flow positive by the second half of this year, two claims that Musk made this week in an angry outburst where he attacked the messenger (The Economist) for pointing out a Jefferies analysis.

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    Then, on Friday afternoon, CNBC released an scathing report detailing that a large portion of parts supplied to Tesla to manufacture vehicles with has been substandard or defective. The article alleged that:

    Tesla is struggling to manage and fix a significant volume of flawed or damaged parts from its suppliers, sending some to local machine shops for rework, according to several current and former Tesla engineers. The company said it also makes adjustments to the design of some parts after receiving them from suppliers.

    It continues: 

    All automakers have to deal with some amount of defective or damaged parts, both from their own factories and from suppliers. But, as previously reported, current and former employees say that Tesla experiences a higher rate of defects than industry norms. A significant number of flawed parts, and parts in need of design changes, also come from Tesla’s suppliers, they said.

    The reason for the large number of defective parts? Spending less time to vet suppliers, according to company employees. 

    Current and former employees from the company’s Fremont, Calif. and Sparks, Nevada factories blame Tesla for spending less time to vet suppliers than is typical in auto manufacturing. These people said the company failed to comprehensively test “variance specs” with some vendors before embarking on Model 3 production.

    Ultimately, it’s Tesla lack of experience and scramble to get a car to market that was leading to the pile up in defects, which will end up crushing the company’s “quality control” reputation, as the following episode suggests:

    Auto manufacturing expert Steve Finch, a former GM plant manager with about 40 years of industry experience, said automakers typically deal with some flawed parts from suppliers. Finch said that mass-market car companies normally will take a year or more to vet a prospective supplier. This is to ensure the supplier’s factory follows ISO quality management standards and other processes that are on par with the automaker’s own.

    Former and current employees said Tesla took less time before signing on new suppliers. Tesla employees tasked with vetting suppliers were also not always experienced with ISO quality management standards, said these people.

    We also pointed out yesterday that Tesla is starting to give other indications that it is stretched very thin – and that this leads to cutting certified pre-owned vehicle corners. Yesterday, Electrek wrote an article detailing ugly new changes to the company’s certified preowned checklist procedures, including the company no longer taking care of cosmetic details, which the article refers to as “refurbishing”:

    Now the company has updated its policy and some new cars coming on Tesla’s list of used vehicles have this ‘Not Refurbished’ warning that reads:

    “This car has passed a 70-point mechanical inspection and will be cleaned before delivery. If you would like any additional work that is not covered under your warranty, we can help arrange service after delivery for an added cost.”

    Tesla salespeople have been telling buyers that the automaker is still making sure that the vehicles are up to their standards for the warranty, but they are not fixing cosmetic issues anymore.

    Worst of all, these changes come a time where the company is about to receive a massive inflow of vehicle inventory from three-year leases that started in 2015:

    Tesla has changed its ‘certified pre-owned’ (used) vehicle policy this week to stop “refurbishing” its used cars just ahead of them receiving a big influx of vehicles as more 3-year leases are ending. The automaker had launched the program 3 years ago and it has been tuning it over the last two years.

    Previously, certified preowned Tesla vehicles not only underwent a inspection to check the mechanics and operation of the vehicle, but they also underwent a cosmetic clean up. The cosmetic cleanup always seemed like an absolute necessity, especially given the fact that Tesla buyers are actually unable to view pictures of the certified preowned vehicles that they’re purchasing:

    The cars with this new warning still don’t have real pictures of the actual vehicle, but instead only renderings of the vehicle’s configuration.

    Tesla told Electrek that they are soon going to make it easier to request real pictures of listed vehicles.

    The change comes as Tesla is getting more and more used vehicles, especially after 3-year leases from 2015 when Tesla started ramping up production significantly and also making strides with its leasing program.

    On top of that, the company is still selling these vehicles at premium prices, which the Elektrek article hilariously calls “value retention”:

    With the increased inventory and the lack of “refurbishing”, a decrease in price would be expected, but Tesla used vehicles have historically been very good at value retention.

    Regardless, the air – and questions – of accountability continues to get thicker around Elon Musk and his band of merry brothers.

    If the stock takes another dive next week, what is Mr. Musk going to come up with in order to keep a sense of being such trivial concerns as cash flow and profitability – and more importantly, how long will his lawyers let him keep talking?

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  • Why Trade Wars Will Unleash Central Banks

    Authored by Nomi Prins via The Daily Reckoning,

    There’s been an abundance of coverage surrounding the recent steel and aluminum tariffs. Those measures could hurt more sectors than they help within the U.S. In particular, it could damage businesses that require metals because they’ll have to pay more for raw materials.

    Trade wars also escalate geopolitical tensions and economic hardships the world over. They have in the past. When the U.S. imposed tariffs in the 1930’s to try to relieve the Great Depression at home, they achieved the opposite effect.

    A global trade war flared, governments became isolated and initiated defensive build-ups. The move ultimately resulted in lower production, reduced global trade and a prolonged international depression that gave rise to WWII.

    While the early Great Depression period in which President Hoover invoked harsh trade wars might be different than today, the threat of instability remains. What we saw then was a slowdown in the world economy that lead to regional aggressions and ultimately a world war.

    The major differences now are that we have central banks financing markets — and by extension a military buildup.

    Countries are better insulated today than they were in those days. By insulating themselves, they now have more choices about who their trading partners are, and what regional or multilateral agreements they enter.

    That’s one reason China is championing regional trade agreements throughout Asia and the Pacific Rim, and inked bi-lateral deals with Japan and the EU last year.  Those nations are growing less reliant on U.S. trade and, like good portfolio managers, are diversifying their trade partners.

    The U.S. tariffs will likely accelerate this trend.

    The tariffs, and super-regional build-ups, will also do something else. Trade wars will morph into an acceleration in global military spending. That’s because the tensions from trade wars have military ramifications.

    When government allies are less connected by interdependent economies, they are more likely to act on their own domestic needs.

    These divisions are potentially dangerous for the world. As major allies become untethered by mutual economic benefits, the world, from issues ranging from North Korea to Syria, continues to destabilize.

    Before President Trump announced his latest tariffs, Mario Draghi, president of the European Central Bank (ECB), was asked about their impact on the global economy.

    He noted while the “immediate impact wouldn’t be large” referring to the economic impact, he warned also, “there is a certain worry, or concern, about the state of international relations… because if you put tariffs against what are your allies, one wonders who the enemies are.”

    It is true that Trump was targeting tariffs on places like China and South Korea, countries he believes are flooding the U.S. market with low-priced metals backed by government subsidies. Yet the fact remains that China accounts for less than 10% of all U.S. steel imports. That’s well behind U.S. import-heavy countries that are also allies, ranging from Canada and Mexico to NATO allies in the European Union.

    Peter Navarro, maybe the White House’s top trade adviser, told CNBC “we come in peace here.” But embedded in the very basic trade principal is a military provocation that cannot be ignored.

    The tariffs were characterized as necessary for national security reasons. As President Trump told a White House gathering of metals industry executives before he signed the tariff orders, “You’re going to have protection for the first time in a long time.”

    He meant two things by that, the more logical of which was really economic protection, colored in military terms.

    That’s why Mario Draghi’s position matters. By examining the real trade numbers among military allies in Europe and even Japan, the tariffs were clearly seen as economic protectionism, not as a security-related action.

    The tariffs will also harm U.S. exporters. Besides agricultural products like soybeans, China has announced tariffs against, the U.S. exports a massive amount of products that use steel including aircraft autos, appliances, and industrial machinery. By increasing the cost of metals used, these business will all face the issue of raising prices that hit the consumer.

    On the other side of the tariffs argument is the issue of what hitting imports would do domestically. What you would find is that even import taxes aimed at hitting other countries would cause a chain reaction where American metal producers could charge more to U.S. companies like Boeing Co., General Motors Co. and Whirlpool Corp.

    That behavior is even worse for smaller firms that could get hit by higher steel prices from both domestic producers and foreign producers.

    As trade issues push economies to the brink, central bankers are actively taking notice. While they may not be commenting on specific policy, they are offering a measured response. Trump’s protectionist policy has already caught the eye of his new chairman at the Federal Reserve, Jerome Powell.

    In response to the tariffs, Powell said that “a system where goods and services flow freely is a net positive for many countries, though the benefits aren’t spread equally.”

    While Powell dodged commenting directly on trade wars, he did say that the “best approach is to deal directly with the people who are directly affected, rather than falling back on tariffs.”

    Perhaps that’s because he knows tariffs can have unintended consequences.

    If Powell really believed trade wars weren’t a source of concern, he wouldn’t have mentioned them at all. With markets move upwards of 700 points in any given direction on any given day when tariffs are headline news, the Fed can’t just watch as a sideline observer.

    You can bet that deep within the halls of the Fed they are developing a game plan to keep the markets from crashing if trade wars escalate.

    This is another reason to believe that trade wars will be met with cheap money policy. You can look at this as a financial see-saw of sorts. Trade wars, or even media soundbites about them, will spark negative markets reactions.

    That is why the Fed and other central banks will combat this with cheap words and even cheaper money policies.

    If the U.S. does jump into a hot trade war it could find itself needing to make up for the costs. The logical place to turn is to the beacon of more money creation from the Fed or to issue more debt.

    The Fed would be directly involved in order to keep the cost of debt from rising, again — which is why my analysis forecasts a return to Fed policies that keep rates low. Similarly, other major economies would also unleash their central bank money when needed.

    This type of tit-for-tat response is already playing out.

    Beijing has used its new wealth to attract friends, deter enemies, modernize its military, and aggressively assert its central bank into nearly any sector it believes requires assistance.

    This type of brinksmanship shows that it is only a matter of time before a trade war with China morphs into massive military build-up and competition.

  • Here's How The US Government Influences What Food You Eat

    Few Americans are aware of the extent to which the US government influences not just the price of their food – thanks to the massive subsidies the US Department of Agriculture disburses to America’s farmers – but also the contents of menus at restaurants and fast food chains.

    In a report published this week, Bloomberg explains how the USDA’s marketing arm helps farmer trade groups pressure fast food chains to add certain items to their menus. From mushrooms to blueberries, mandatory fees levied by the USDA help finance a cohort of industry lobbying groups that work closely with restaurants to push certain ingredients. These campaigns often have a powerful impact on farmers’ bottom lines: In March, Sonic – a fast casual burger chain – introduced two new burgers to its menu that both featured white button mushrooms: Instead of being 100% ground beef, these two burgers feature a blend of beef an processed mushrooms. The mixture dramatically lowers the calorie count of the burgers, satisfying customers’ demands for healthier alternatives, per Bloomberg.

    Grower

    What many don’t know, however, is that the introduction of these items was the result of a monthslong lobbying effort by the USDA funded Mushroom Council, a trade group that represents mushroom growers.

    The committee’s various lobbying efforts are already bearing fruit (pardon the pun): In the year ended Jan. 28, US sales of mushrooms grew by 4.9% to $1.24 billion compared with a years earlier. And much of this growth occurred before the 3,500 Sonic locations added the new menu items.

    But despite the fact that farmers get back $9 in sales for every dollar spent on marketing, according to a research study conducted by professors of agricultural economics at Texas A&M, some farmers have decided to sue the USDA to try and scrap these mandatory payments to the USDA.

    Grower

    Their argument? The marketing efforts benefit foreign and domestic farmers equally, and the marketing often doesn’t do enough to make clear that foods produced in the US are typically of a superior quality – at least, that’s what the farmers are arguing.

    In 2016, the Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America, a nonprofit that advocates for independent U.S. ranchers, filed a complaint arguing the required fees violate the First Amendment by forcing them to subsidize speech they don’t agree with. The group supports Utah Republican Senator Mike Lee’s legislation prohibiting mandatory checkoff fees.

    “We’re forced to pay and advertise foreign beef in the U.S.,” said Bill Bullard, chief executive officer of the Montana-based legal fund. “We have a superior product, and it’s coveted the world over.”

    Others are happy to pay the fees. Why? Because who could forget marketing campaigns like “Got Milk?” and the “Incredible Edible Egg”. These campaigns had a powerful act on the American consciousness, and also helped spur tremendous boosts in sales.

    In other words, farmers will readily pay the fee – if it can be demonstrated that they benefit from the campaigns, which often take years to successfully execute.

    A victory by a trade group representing blueberry farmers is another example of how the push to partner with US restaurant chains is proving to be a successful strategy.

    Recently, blueberries landed on the menu at steakhouse chain Sizzler USA Inc. in the form of a blueberry lemonade — considered a big win for the U.S. Highbush Blueberry Council, which worked on bringing the refreshment to the chain’s menu. Sizzler had 123 outlets as of last year, according to Technomic.

    Because the fruit isn’t in season during the winter, Mission Viejo, California-based Sizzler is getting them from Peru. In May, the company will add more blueberries, as part of a spinach salad with almonds and feta cheese.

    “Because the growers all pay into this fund, they want to know what the council is doing for them,” said Andrew Hunter, a chef who works with the mushroom, egg and blueberry marketing programs. “This is a tangible way for boards to say, ‘This is what we’re doing for you.’ Sizzler’s blueberry lemonade. That’s tangible.”

    In 2015, more than 8,000 chain restaurant locations added blueberries to their menus – including Dairy Queen, Wendy’s and Red Lobster. Another group funded by the USDA via these mandatory marketing fees claimed responsibility for this, citing a multiyear effort to court fast-food companies.

    And other campaigns are underway.

    The American Egg Board, working with ad agency BBDO Worldwide Inc., is relaunching its “Incredible Edible Egg” ad campaign from decades ago with a slightly modified tagline: “How do you like your eggs?” But the name has been shortened. It’s now “The Incredible Egg.”

    So next time you see a new food trending – think how millennials love avocado toast – don’t assume it happened organically. Somewhere along the line, a carefully crafted marketing campaign devised by one of these government-backed groups forced its messaging into your subconscious – often without you even knowing it.

  • The Deflation/Inflation Debate

    Authored by Alasdair Macleod via GoldMoney.com,

    “Naïve inflationism demands an increase in the quantity of money without suspecting that this will diminish the purchasing power of the money.” ― Ludwig von mises,  The Theory of Money and Credit

    It is hardly surprising that with equity indices stalling, the financial community is increasingly worried that the long, steady bull market is coming to an end. Naturally, this makes investors look for reasons to worry, and it turns out that there are indeed many things to worry about.

    In fact, there are always things to worry about. Ever since the Lehman crisis, the Four Horsemen of the Apocalypse have been casting long shadows across the financial stage. But as financial assets have continued to rise in value over the last nine years, bearish fund managers, spooked by systemic risks of one sort or another and the perennial threat of a renewed slump, have been forced to discard their ursine views.

    As often as not, it is not much more than a question of emphasis. There is always good news and bad news. As an investor, you semi-consciously choose what to believe.

    There are causes for concern, of that there is no doubt. Mostly, they arise from the consequences of earlier state interventions on the money side. Governments are slowly strangling private sector production with increasingly rapacious demands on taxpayers and have been resorting to the printing press to finance the shortfalls. In reality, there is a finite limit to government spending, because it impoverishes the tax base. Yet governments, with very few exceptions, seek to conceal this truism by increasing spending and budget deficits even more. In this, President Trump is not alone.

    Bankruptcy is the end result. And don’t believe the old saw about how governments can’t go bust. They can, and they do by destroying their currencies, as von Mises implied in the quote above. The naïve inflationists referred to by von Mises justify their stance by believing that inflation is invigorating, and deflation is devastating. Any and all statistics pointing to a slowdown in the growth of money supply or in the economy is therefore taken to be a forewarning of deflation.

    Inflationists are simply recycling Irving Fisher’s debt-deflation theory, which is no longer relevant. Fisher held that in an economic crisis, bad debts forced banks to liquidate collateral, pushing down collateral values. And as previously sound loans lose their collateral cover, banks are forced to liquidate those as well.

    But it is no longer the case. Central banks have removed the discipline of gold, so they can intervene to prevent financial and economic crises, rather than let them run their destructive courses. They have fully embraced inflationism, giving them the excuse for monetary and credit expansion as a cure-all.

    Therefore, when the next crisis occurs, central banks will take steps to ensure that in aggregate the quantity of money does not contract. It is the one forecast we can make with absolute certainty. And every time a crisis happens it takes more monetary heft to get out of it. But that’s not an issue for a central bank with two overriding objectives, not the targeting of inflation and unemployment as such, but to ensure a recession never happens, and to finance, through money-printing if necessary, escalating government spending.

    Minor wobbles are not the credit crisis

    We must discriminate between the momentary problems faced by central banks and the inevitable crisis at the end of the credit cycle. Dealing with problems as they arise has become routine, the justification for continual inflationism. The credit crisis is a different matter. Central bankers do not seem to realise it, but the credit crisis is their own creation, the way markets eventually unwind the distortions created by earlier monetary policy. So long as central banks suppress interest rates and expand money and credit, there will be periodic credit crises to follow.

    The trigger for the credit crisis is always the same. The general price level threatens to rise uncontrollably, reflecting the loss of the currency’s purchasing power. This forces the central bank to reluctantly raise interest rates to the point where business assumptions about the returns on capital, based on borrowing costs, turn from profit-making to loss-making. At that point, if not before, the accumulated mountain of debt becomes fatally undermined.

    The timing of the rise and level of interest rates that triggers the crisis is set by the speed with which monetary inflation feeds into prices. And the severity of the crisis depends upon the size of the debt mountain being liquidated.

    This has nothing to do with the minor wobbles along the way. Ahead of a cyclical credit crisis, central banks routinely deal with the fires breaking out in an increasingly desolate economic landscape. They are very good at it. The share prices of European banks, such as Deutsche Bank and Credit Suisse raise concerns over systemic risk, but the ECB and SNB will always ensure credit is available to them. And if we are worried about systemic risk in key European financial behemoths, why is it that stock prices for major US banks such as JPMorgan, Goldman Sachs and Bank of America are so strong?

    There is also a narrative being promoted which posits that a slowdown in broad money supply is giving an advance warning of recession. The chart below, of US M2 plotted weekly, puts it into context.

    Yes, there has been a recent slowdown in the rate at which M2 is growing. But it has hardly diverged much from the average rate of increase, shown by the black line, for the last five years. And it’s not worth repeating the chart for M1 Money Stock, which is remarkably similar, despite the Fed reducing the size of its balance sheet.

    How bank credit is used is rarely questioned

    What charts of money supply do not tell us is where money is deployed between two groups of borrowers. Newly created money, mainly bank credit, is allocated either into the financial sector, which is not included in GDP excepting fees and commissions, or into non-financial activities, where goods and services are included. Furthermore, missing from GDP is all the intermediate business-to-business activity that goes towards manufacturing and delivering the goods and services included in GDP. And it is B2B which borrows to invest.

    It is only when extra money is allocated through the markets to the production of items in the consumer price index that price inflation is recorded. However, we cannot know how new money is allocated and reallocated between the arbitrary divisions set by statisticians. Attempts to marry up changes in broad money with demand for it are never convincing.

    But as proxy for non-financial business activity away from the world of big corporates, the following chart appears to confirm that ordinary businesses are just getting on with commercial life and have been for the last six years, though you wouldn’t know it from the financial headlines.

    Again, we see that following the great financial crisis, ordinary businesses making and doing things for ordinary people, just get on with investing in production. But there is an interesting observation here, highlighted on the chart: in the first few months of every year, almost no extra loans and leases are taken out, so the sideways trend in M2 from early-January may be nothing to worry about. Furthermore, taking this seasonality into account, it appears that demand for loans and leases so far this year is stronger than in any of the previous five years.

    Investment strategists examine statistical trends to discern turning points in stocks and bonds, when the wealth creation and destruction from bull and bear markets could be the driving force for these statistical trends, having little to do with the economy itself. In this context, our next chart shows the build-up of margin debt in the financial sector, and how it has become sufficiently large to be potentially destabilising.

    The point at which a fall in outstanding margin debt flashes warning signals for the equity market is one thing, but it is unlikely to destabilise the non-financial economy on its own. It is worth noting that it fell $21bn in February, and presumably more in March, yet to be reported. While some of this finance is by brokers acting as shadow banks, reductions in loans on securities are bound to be reflected in a slowdown in the rate of growth of bank lending. But no such distinction is made by financial scribblers, attributing all changes in money supply to demand in the non-financial economy.

    Another statistic worrying the scribblers is the LIBOR-OIS spread, which has suddenly increased. This is the difference between the unsecured wholesale money market lending rate in London and the overnight index swap rate, which is a derivative that is effectively tied to the risk-free interest rate. The spread is therefore normally taken as an indication of bank lending risks.

    The explanation for this spread increasing is unknown, with few signs of lending stress apparent. One could point to the share price performance of systemically important European banks, such as Deutsche Bank and Credit Suisse, which suggests there is greater counterparty risk in London’s money markets than in New York. But if that’s the case, central banks will be monitoring the position closely and ready to intervene if required.

    It is perhaps more likely that tax changes in the US are encouraging US corporations to transfer dollar funds from banks in London to New York, which is bound to increase dollar rates in London, where LIBOR is set, compared with New York.

    How the credit cycle progresses

    Investors trying to understand the financial markets’ major trends should keep an eye on the credit cycle. The first point to note is that it is now nine years since the last credit crisis ended, and there are, as yet, no signs economic growth is over. However, as the cycle progresses, history and monetary theory tell us that interest rates begin to rise from the artificially suppressed levels set by central banks. That is now happening, leading us into the final phase of the credit cycle before the credit crisis finally ends it.

    Bond markets have all peaked, and their yields are rising, and not only at the short end where prices are corelated with interest rates. The 10-year US Treasury yield bottomed at 1.46% in June 2016, since when it has increased to 2.79% currently. The 30-year UST yield bottomed at the same time at 2.182%, and now yields 3.02%. The bond bear market is firmly established.

    Generally, the rise in medium and long-term bond yields anticipates increasing prices for commodities, goods and services, the consequence of earlier monetary expansion. Business conditions then appear to be improving, and equity markets have reflected this benign environment.

    It is becoming clear that a further jump in bond yields will confirm the end of an equity bull market, and the beginning of a bear market. But that will not mark the end of the current phase of the credit cycle and the onset of the crisis. Even if equities have a 1987-type crash, the credit cycle will continue, rather than enter the crisis phase.

    The concluding phase of credit expansion before the credit crisis is now about to begin. Demand will appear to be picking up while prices are rising and interest rates still low. It will be characterised by a growing belief among businessmen that they must borrow to invest. We can already anticipate the factors leading up to this happy but brief state.

    President Trump has cut taxes and increased spending. The result is there will be a substantial injection into the US economy late in the business cycle, mostly financed by monetary inflation. It is bound to create short-term optimism but being based on money created out of thin air it will be an illusion. The consequence will be an acceleration of price inflation, as the extra money is absorbed into the non-financial economy. Bond markets will anticipate higher interest rates, so banks, losing money on their bond investments, will then compete for loan business in the non-financial economy. For a brief period, buoyed up by a business-friendly fiscal policy, the economy will appear to grow more rapidly.

    The rise in prices, initially seen by business as a stimulant to production while borrowing costs remain suppressed by the Fed, will accelerate fuelled by too much money chasing too few goods. However, the business environment will only appear to be improved during the time period taken for the economy to absorb monetary inflation and reflect it in higher prices. When it dawns on markets that next year’s prices will be significantly higher than today’s the time-preference value on loans will be increasing, irrespective of the Fed’s monetary policy.

    The crisis will then be upon us. The switch from stimulative fiscal policies to sharply escalating interest rates and bond yields could be sudden. At the worst possible time, the Fed will be forced to raise the Fed Funds Rate to protect a declining dollar. If they haven’t begun to do so already, financial assets will be crashing, along with physical assets whose values are set by interest rates, such as residential property.

    America is not alone in its stimulation of markets. Interest rates are also suppressed in the Eurozone, Japan, Britain and Switzerland, all of which stand to benefit from China’s economic evolution. Those economists who in recent weeks have proclaimed that at last synchronised growth is here do not realise that the inflationary consequences for prices brings the global credit crisis forward in time.

    So, that’s the sequence. Bonds top out, followed by equities, followed by a credit crisis. We have had the first, perhaps entered the second, and have the third event still ahead of us. And if the evidence before our eyes is not enough, we have proof of central bankers’ ignorance in these matters from Janet Yellen, who in her swansong said, “Would I say there will never, ever be another financial crisis? You know, probably that would be going too far but I do think we’re much safer and I hope that it will not be in our lifetimes and I don’t believe it will be.”

    Hubris indeed, reminding us of Greenspan’s “Irrational exuberance” in December 1996, before the Dow nearly doubled, and his conversion to the New Paradigm of Larry Summers et al in 2000, just before the dot-com bubble burst. It is proof that those who have taken it upon themselves to protect us from our own financial indiscretions are clueless about the credit cycle, and their role in its creation. But will it result in a massive deflation?

    If by deflation is meant an increase in the dollar’s purchasing power, the answer must be an emphatic No. As well as the views of central bankers, that deflation must be avoided at all costs, even a mild recession plays havoc with government finances. This is why the Fed and other central banks will do everything in their power to stop it. But their power is confined to the cure-alls of reducing interest rates and throwing yet more money at the economy.

    Far from deflation, the Fed’s only response to the next credit crisis will be to take measures that will lead to the final destruction of the dollar. Other central banks are set to follow. Deflationists don’t have a leg to stand on, and unknowingly conform with von Mises’s description of naïve inflationists.

  • Trump's Next-Generation Presidential Limousine Unveiled

    The next generation of Presidential limousines called ‘the Beast,’ built for President Trump, is set to be unveiled in the second half of 2018. When Trump was sworn in as the 45th U.S. President, the United States Secret Service wheeled him throughout Washington in a presidential limousine fleet from the Barack Obama era.

    A Fox News source close to the matter indicates Trump would be getting all-new Cadillac-branded models by the summer months.

    The new presidential limousine was photographed on public roads near GM’s proving grounds in Michigan last fall. (KGP Photography/FoxNews)

    The prototype is covered in a black and white camouflage wrap to hide its styling details until its official unveiling. (KGP Photography/FoxNews)

    The prototypes of the Cadillac-branded presidential limousine are part of a Department of Homeland Security (DHS) agreement with General Motors Llc. to build “the next generation parade limousine program phase 2 and 3,” which began in September of 2014. Three years later and some $15,800,765 later, it seems like Trump’s new limousines are ready for use.

    The heavily armored $1.5 million Cadillac-branded state car, which comes complete with five-inch thick military grade armor, a bomb-proof exterior, kevlar-reinforced wheels, and a vast array of embedded weapons — has been turned over to the United States Secret Service for the final examination.

    “We’ve completed our task and we’ve handed over the vehicle to the customer,” Cadillac President Johann de Nysschen told Fox News. A spokeswoman for the U.S. Secret Service added that “the program to build and deploy the next generation of Presidential limousines is on track and on schedule — both in terms of vendor production and internal Secret Service post production requirements. The public can expect to see the new vehicles put into operational use late summer of this year.”

    Although its designed to look like a sedan, it’s understood to be built on a sturdy truck frame that can support its armored bodywork. (KGP Photography/FoxNews)

    The sedan is longer than two large SUVs and, for the moment, remains in white and black camouflage designed to make it more difficult to identify new features aboard the vehicle. It is pictured here, middle, in March 2018. (Chris Doane/Daily Mail)

    Fox News believes Trump’s next generation limousine will resemble a stretched 2018 Cadillac CT6.

    “One feature it almost certainly won’t share with the CT6 is Cadillac’s semi-autonomous Super Cruise system, which allows for hands-free driving on highways. Instead, it will always be driven by a highly trained agent skilled in defensive and evasive driving techniques.

     

    Cadillac has built every presidential limousine since 1993 and didn’t face any known competition for this contract. Its American luxury counterparts, Lincoln and Chrysler, each told Fox News that they declined to submit bids this time around, but de Nysschen considers his company’s role helping to chauffer the world’s most powerful man around the world an important association for the brand.”

    “The public can expect to see the new vehicles put into operational use late summer of this year,” said the United States Secret Service.

    How has Twitter responded to Trump’s tricked out Cadillac?

    “I think Trump should keep the camo on his new limo,” said one Twitter user.

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

    “Lots of talk today about Trumps new limo. Supposedly comes with vanity plates too,” someone else said.

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

    “Trumps new limo looks absolutely fucking ridiculous. And by ridiculous, fucking badass!!!! Greatest president ever!!!,” exclaimed one Twitter user.

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

    Great question…

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

    Trump revamped the presidential limo into a Caddy built like a tank. Fricken boss,” another Twitter said.

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

    Trump’s long-awaited heavily armored limo is set to roll out on the streets of Washington in a matter of months. The one question we ask: Will it be featured in his military parade set for Veterans Day?

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Today’s News 14th April 2018

  • A Map Of The Syrian War: Who Is Who (And Where)

    On Thursday, just 24 hours before Trump ordered airstrikes on Syria for the second time in just over a year, we said that “with war likely set to break out in Syria at any moment, a question many Americans are asking is… where is Syria?

    We then added that “geographical challenges aside, it is safe to say that the situation in Syria is extremely fluid, and changing on an almost daily basis” which is why we showed several strategic and tactical snapshot maps of Syria as of this moment.”

    Fast forward to Friday night, when at exactly 9pm ET on Friday 13, Trump announce that war airstrikes on Syria have once broken out, as expected, and for those who may have missed the various tactical and strategic maps of the Syrian theater, here they are again.

    The first and most useful one, courtesy of Turkey’s Omran Dirasat think tank, shows updated areas of control and influence in Syria by international military forces with reference to the most prominent international military sites in Syria.

    The second map, from Dirasat employee Nawar Sh. Oliver lays out the control and influence zone in Syria as of April 2018, revealing the relative % of gains and losses in the last 24 days.

    Finally, from the regional political journal, Suriye Gündemi English, here is a map showing the latest military situation as well as location of key military bases in Syria ahead of the expected US strikes.

  • Russia Responds: "We Are Being Threatened. A Predesigned Scenario Is Being Implemented"

    After the a joint force of US, French and UK fighter jets and ship launched an attack which as Mattis said, “used a little over double the number of weapons this year than we used last year”, and amid unconfirmed reports that the Syrian air force managed to shoot down one or more Tomahawk missiles, the question everyone was asking is whether Russia has responded, and if so, how.

    The answer, for now at least, is that Russia has not activated a response, although that may soon change.  Here is the statement from Russia’s ambassador to the US, Anataloy Antonov, posted on Facebook:

    The worst apprehensions have come true. Our warnings have been left unheard.

    A pre-designed scenario is being implemented. Again, we are being threatened. We warned that such actions will not be left without consequences.

    All responsibility for them rests with Washington, London and Paris.

    Insulting the President of Russia is unacceptable and inadmissible.

    The U.S. – the possessor of the biggest arsenal of chemical weapons – has no moral right to blame other countries.

    Despite repeated warnings from Russia, President Trump ordered American forces, along with their British and French allies, to strike military targets in Syria on Friday night; as noted previously, during a press conference late on Friday, General Joseph Dunford, Chairman of the Joint Chiefs of Staff, the Russian military operating in Syria was not notified about the American targets in advance told reporters following the attacks.

    The US “specifically identified” targets to “mitigate the risk of Russian forces being involved,” Dunford said. “We used the normal deconfliction channel to deconflict airspace. We did not coordinate targets.”

    While Trump said that the purpose of the US actions is to “establish a strong deterrent against the production, spread, and use of chemical weapons,” Antonov reminded that “the US – the possessor of the biggest arsenal of chemical weapons – has no moral right to blame other countries.”

    The combined decision by the US and its allies to strike Syria comes after Russian Defence Ministry spokesperson Major-General Igor Konashenkov presented evidence claiming that last Saturday’s alleged chemical attack in Douma was orchestrated.

    The attack also comes just hours before experts from the UN Organization for the Prohibition of Chemical Weapons (OPCW) were scheduled to visit Douma on Saturday to determine whether chemical weapons had indeed been used there. That particular trip is now moot.

  • Visualizing The U.S. States Most Vulnerable To A Trade War

    Last year, nearly $4 trillion of U.S. economic productivity was the result of international trade.

    However, as Visual Capitalist’s Jeff Desjardins notes, with talk of a trade war heating up once again (Russia and China), , there is a real possibility that the global trade landscape could shift dramatically over the coming months and years.

    Any such shifts wouldn’t likely impact the country in a uniform and evenly distributed fashion – instead, any impending trade war would pose the largest direct risk to states that are dependent on buying and selling goods on international markets.

    THE STATES MOST AT RISK

    Today’s visualization comes to us from HowMuch.net, and it shows every U.S. state and district organized by GDP size, as well as percentage of GDP resulting from international trade.

    Courtesy of: Visual Capitalist

    Here are the 10 states most reliant on international trade:

    On a percentage basis, Michigan tops the list with 38.9% of the state’s GDP reliant on international trade.

    THE LOWEST RISK STATES

    On the flipside, here are the states or districts with less to lose in the event of a trade war.

    Washington, D.C. tops the list, with only 1.5% of its regional GDP tied to trade.

    This makes sense since The District’s economy is mostly linked to the government, service, and tourism sectors. Nearby Virginia also has surprisingly little international trade, at just 8.9% of its economy.

    Want to see more on international trade? See the numbers behind the world’s closest trade relationship in this infographic.

  • Army Major Exposes America's Circle Of Absurdity: Killing The Extremists We Create

    Authored by Major Danny Sjursen via TruthDig.com,

    The U.S. military remains mired in countless wars in the Greater Middle East. Ironically – and tragically – it tends to combat Islamists that Washington either armed or birthed.

    We, Americans, truly are a strange lot. Our government in Washington – ostensibly representative of “We the People” – speaks of peace, but wages endless war, prattles on about “freedom,” but backs absolute monarchs and authoritarian strongmen the world over. A bipartisan array of politicians warns of the evils of radical Islamic (though Islamist is more accurate) terrorism; and yet, truthfully, the US once supported and/or funded those same extremists not too long ago. In some cases, and certain circumstances, it backs them still; until, that is, all those guns are turned on the US military, or those fighters threaten Washington’s (ever shifting) “interests.”

    Perhaps, one imagines, there are lessons here: be careful who you arm; be careful where you meddle; today’s “friends” are, all too often, tomorrow’s enemies; and, in the turbulent Middle East, sometimes less is more.

    Washington would do well to remember that before its next – and there will be a next – intervention.

    Russia, it seems, is once again center stage in the Middle East. Congressmen and Senators – usually neocons or hawkish liberal interventionists – warn that Russia is “running wild,” or will “win” Syria. In fact, they argue, the US military must stay put in Syria, Iraq, and elsewhere, indefinitely one presumes, to block potential Russian gains. US troops must also back assorted proxies, even some nefarious characters, in order to deter Russian efforts in the region.

    The whole presumption, of course, is flawed and simplistic. We are led to believe geopolitics is a simple zero-sum game, whereby any “gain” for Russia (or Iran) is somehow a “loss” for the United States. Much evil, and plenty of mistakes, stem from such warped assumptions.

    The thing is, the historian in me has seen this movie before, and knows it ends badly. A generation raised on post-9/11 alarmism regarding terrorism and the (admittedly real) dangers of political Islam, might be surprised to know the US once backed many of these very same Islamist zealots in the name of countering the then Soviet Union. It was fear of the looming Russian bear – and the competition for oil – that first brought the US military into the region in a serious way.

    US Central Command (CENTCOM), which controls all US servicemen in the Greater Mideast, was only formed in the early 1980s, largely in response to the Soviet intervention in Afghanistan (1979) and the ostensible threat of a broader Soviet armored assault straight south to the Persian Gulf. Of course, no such danger ever really existed; nor was it very plausible. Nonetheless, Washington took action, which heralded just the most extreme version of the sad, recurring, tales of US support for Islamists. Fighters, who, more often than not, would later turn their guns, bombs, (and box cutters on 9/11!) on America.

    The US supported, funded, and armed (including with surface to air missiles) the Afghan mujahedeen – many of whom were Islamist zealots – throughout the 1980s. It also backed its long time frenemy, Saudi Arabia, which acted as patron for the Arab extremists who flocked to the Afghan jihad. The various mujahedeen, many of whom were rather extreme, morphed into warlord militias after the defeat of the Soviets. The excesses of these venal warlords in the 1990s, and the refugee crisis that landed millions of unemployed youths in various squalid camps, led directly to rise of the Taliban. Many of the Taliban’s senior leaders had previously fought the Soviets, often with US weapons or support.

    We all know the next part of the sordid tale: Arab volunteers who had fought the Soviets in Afghanistan, returned to the Mideast radicalized, confident, and – after US troops were stationed in Saudi Arabia following Iraq’s invasion of Kuwait in 1990 – increasing anti-American. A popular leader of these “Afghan Arabs,” as they were called, was one young Saudi named Osama bin Laden.

    You’d think contemporary policymakers would learn from and heed this warning. By and large, though, they have not.

    US support for the Saudis continues, and, in fact, stretched way back to the 1940s – in a devil’s bargain of oil for arms and influence that remains in effect. Even in conflicts that preceded the Soviet war in Afghanistan (1979-1988), the U.S.-backed Saudis tended to support the forces of Islam (often of the Saudis’ own extreme Wahhabi variety) against secular Arab nationalist and/or socialist regimes from North Africa to South Asia.

    The US, frankly, was then more concerned with “radical,” secular, Arab nationalists such as Egypt’s Gamal Abdel Nasser. In Yemen’s Civil War in the 1960s, American-backed Saudis supported religious, royalist forces against the secular nationalists backed by Nasser. Furthermore, throughout that era – and even today – our Saudi “allies” invested billions in mosque construction and the propagation of their own intolerant brand of Wahhabi Islam across the Greater Middle East.

    Think on that for just a second. The US spent most of the Cold War backing religious kingdoms and organizations against the very, albeit authoritarian, secular movements we now purport to favor. Furthermore, the Saudis – second only to Israel among America’s regional allies – were busy spreading the toxic Islamism we’ve spent the last 17 years combating.

    Worse still, since 9/11 (and remember 15/19 of those hijackers were Saudis) the US track record is just as dismal, with America’s military all too often battling Islamists we once armed or helped create. In 2001, there existed only one truly transnational terror threat group with the aspiration and capability to attack the US homeland: Al Qaeda. More than a decade and a half later, such Islamist groups have only proliferated in response to US military interventions

    Most of the groups the US military now fights – and I’ve spent a career combating – are an outgrowth of, or reaction against, American actions in the region. Talk about counterproductive. It borders on the absurd!

    Consider just a few examples:

    • In Iraq, today, the US combats the remnants of ISIS. ISIS didn’t even exist on 9/11. There were no Iraqis on those planes, and Saddam had no serious relationship with Al Qaeda. The local AQ franchise only grew and gathered recruits in response to the wide perception of US neo-imperialism. Then, years later, ISIS, the most radical offshoot of Al Qaeda in Iraq, was birthed in that ultimate incubator of Islamist extremism: US military prisons. The rest, so they say, is history.

    • In Yemen, the US is complicit in the Saudi terror bombing and blockade. In addition to killing civilians, instigating a famine, and contributing to the spread of cholera, this war has only empowered the main AQ affiliate in the area: Al Qaeda in the Arabian Peninsula (AQAP). While US planes are refueling Saudi jets which bomb local Houthi “rebels,” the campaign all but ignores AQAP. If anything, they’re bombing the wrong people! This group, mind you, has been labeled the Al Qaeda affiliate most dangerous to the homeland.

    • In 2011, President Obama authorized what he’d later label a “shit show:” bombing and regime change in Libya. Muammar “Mad Dog” Gaddafi was certainly an unsavory character, but toppling him without a plan for the day after only further empowered regional Islamism. The country split into rival statelets, tribal fighters migrated south with a veritable arsenal of weapons, and too often joined or backed West African Islamist militias. And, well, you guessed it, US troops are now fighting, and dying, combating those very groups in Mali, Cameroon, and Niger.

    • In Syria, the US is mopping up ISIS and trapped between several hostile actors: Turkey, Russia, Iran, Assad’s regime, and various non-ISIS Islamist groups. The crazy thing is, our Saudi frenemies sent boatloads of cash and weapons to many of these Islamist fighters. In fact, even US arms – intended for so-called moderate rebels – ended up in the hands of the local Al Qaeda franchise, the Nusra Front.

    The disturbing truth is, that I, and most professional soldiers in the post-9/11 military, have almost never fought the enemy who’d attacked the US in the first place: Al Qaeda, that is. For the most part, US troops spent the last two decades combating Afghan farm boys, African tribal militias, local Arab Islamists, and various franchises of ISIS – the true Frankenstein’s monster of the global war on terror.

    I recount this dismal record for a specific purpose: to warn. To warn against shortsighted interventions or carelessly working through regional proxies.

    Today’s convenient friend is too often tomorrow’s sworn enemy.

    We reap what we sow, and, in the stormy Middle East, more often than not, the US sows chaos.

  • Russia Has "Irrefutable Evidence" UK Staged Syrian Chemical Attack

    As the blame game over the alleged chemical attack in Syria escalates ahead of what is expected to be an imminent, if contained, air strike campaign by the US, UK and/or France against Syria, on Friday morning, Russia’s foreign minister Sergey Lavrov said Moscow had “irrefutable evidence” that the attack – which allegedly killed more than 40 people in an April 7 chemical weapons strike on the former rebel outpost of Douma  -was staged with the help of a foreign secret service.

    “We have irrefutable evidence that this was another staged event, and that the secret services of a certain state that is now at the forefront of a Russophobic campaign was involved in this staged event,” he said during a press conference according to AFP.

    Speculation that said “certain state” was the UK was confirmed shortly after, when Russia’s defense ministry alleged that Britain was involved in the suspected chemical attack. According to defense ministry spokesman, Major General Igor Konashenkov, the Kremlin has evidence that Britain was behind the attack.

    Quoted by Reuters, he said: “We have… evidence that proves Britain was directly involved in organising this provocation.”

    As RT further adds, the Russian Defense Ministry presented what it says is “proof that the reported chemical weapons attack in Syria was staged.”

    It also accused the British government of pressuring the perpetrators to speed up the “provocation.” During a briefing on Friday, the ministry showed interviews with two people, who, it said, are medical professionals working in the only hospital operating in Douma, a town near the Syrian capital, Damascus.

    During a briefing on Friday, the ministry showed interviews with two people, who, it said, are medical professionals working in the only hospital operating in Douma, a town near the Syrian capital, Damascus.

    In the interviews released to the media, the two men reported how footage was shot of people dousing each other with water and treating children, which was claimed to show the aftermath of the April 7 chemical weapons attack. The patients shown in the video suffered from smoke poisoning and the water was poured on them by their relatives after a false claim that chemical weapons were used, the ministry said.

    “Please, notice. These people do not hide their names. These are not some faceless claims on the social media by anonymous activists. They took part in taking that footage,” said Konashenkov.

    “The Russian Defense Ministry also has evidence that Britain had a direct involvement in arranging this provocation in Eastern Ghouta,” the general added, referring to the neighborhood of which Douma is part. “We know for certain that between April 3 and April 6 the so-called White Helmets were seriously pressured from London to speed up the provocation that they were preparing.”

    According to Konashenkov, the group, which was a primary source of photos and footage of the purported chemical attack, was informed of a large-scale artillery attack on Damascus planned by the Islamist group Army of Islam, which controlled Douma at the time. The White Helmets were ordered to arrange the provocation after retaliatory strikes by the Syrian government forces, which the shelling was certain to lead to, he said.

    The UK rejected the accusations, with British UN Ambassador Karen Pierce calling them “grotesque,” “a blatant lie” and “the worst piece of fake news we’ve yet seen from the Russian propaganda machine.”

    One of the interviews published by the ministry showed a man who said his name was Halil Ajij, and who said he was a medical student working at Douma’s only operational hospital. This is how he described the origin of the footage:

    “On April 8, a bomb hit a building. The upper floors were damaged and a fire broke at the lower floors. Victims of that bombing were brought to us. People from the upper floors had smoke poisoning. We treated them, based on their suffocation.”

    Ajij said that a man unknown to him came and said there was a chemical attack and panic ensued. “Relatives of the victims started dousing each other with water. Other people, who didn’t seem to have medical training, started administering anti-asthma medicine to children. We didn’t see any patient with symptoms of a chemical weapons poisoning,” he said.

    The first photos claiming to show the aftermath of the alleged chemical attack on April 7 were published online on the same day, and featured the bodies of many people, including children, some with foam around their mouths and noses. Footage from the hospital was released on Sunday, with the sources behind it claiming that it had been shot on Saturday.

    Konashenkov said Russia hoped that international monitors from the Organization for the Prohibition of Chemical Weapons (OPCW), which is due to investigate the circumstances of the incident, will help establish the truth. He added Eastern Ghouta is currently trying to return to peaceful life after being liberated from militant groups by Syrian government forces. He called on other nations and international organizations to provide humanitarian aid, which is badly needed in the area. Russia is already supplying food, medicine, building materials and other essential supplies to the neighborhood, he said.

    Residents of the neighborhood, who previously fled violence, are returning to their homes now that the area is relatively safe, the Russian official said. The latest reports from the ground say about 63,000 people have returned, which is over half of the displaced residents, he added.

    The reported chemical weapons attack escalated tensions over Syria, just as Damascus was about to seize full control of Eastern Ghouta. The US and allies such as the UK and France threatened military action in response to what they claim is an atrocity committed by the Syrian government. Russia insists the incident was staged and said it reserves the right to counter any attack on Syria.

    RT also spoke about the Russian claims with Lord Alan West, a retired officer of the British Royal Navy. He said he had strong reservations about taking allegations against Damascus at face value, because it didn’t make much military sense.

    “It seems to be utterly ludicrous for the military that is in the process of taking over an area to go and do something with chemical weapons, which will draw the wrath of the larger enemy down upon them,” he said. “If I was advising the opponents of [Syrian President Bashar] Assad, I would be delighted to kill a few people there. Let’s face it, [the insurgents] don’t care if they kill women and children.”

    “I am not willing to accept tweets. We need to see incontrovertible truth about what has happened there and make a decision on that basis,” he added.

    * * *

    On Wednesday, Russia made the first allegation that the chemical attack was staged by Western powers, in this case by the infamoous “white helmets,” a US-funded NGO lauded by mainstream media for their humanitarian work, while long-suspected of performing less-than humanitarian deeds behind the curtain

    Speaking with EuroNews, Russia’s ambassador to the EU, Vladimir Chizov, said “Russian military specialists have visited this region, walked on those streets, entered those houses, talked to local doctors and visited the only functioning hospital in Douma, including its basement where reportedly the mountains of corpses pile up. There was not a single corpse and even not a single person who came in for treatment after the attack.”

    “But we’ve seen them on the video!” responds EuroNews correspondent Andrei Beketov. “There was no chemical attack in Douma, pure and simple,” responds Chizov. “We’ve seen another staged event. There are personnel, specifically trained – and you can guess by whom – amongst the so-called White Helmets, who were already caught in the act with staged videos.”

    Russia said previously that it sent experts in radiological, chemical and biological warfare – along with medics, in order to inspect the Eastern Ghouta city of Douma where the attack is said to have taken place. 

    Russia’s Defense Ministry said in a statement that the experts “found no traces of the use of chemical agents,” following a search of the sites, adding “All these facts show… that no chemical weapons were used in the town of Douma, as it was claimed by the White Helmets.” 

    “All the accusations brought by the White Helmets, as well as their photos… allegedly showing the victims of the chemical attack, are nothing more than a yet another piece of fake news and an attempt to disrupt the ceasefire,” said the Russian Reconciliation Center. 

    * * *

    In any case, if Russia indeed has “irrefutable evidence”, it is probably just a matter of time before it is made public in an attempt to sway public opinion, ideally before the Syrian airstrikes begin afresh. If confirmed, it would be a major slap in the face of neo-con forces across “western democracies”, if hardly a shock: after all the US using a fabricated pretext to wage war or simply to effect a much needed distraction from domestic affairs, in the middle east is a painfully familiar narrative.

    Meanwhile, as we wait for Trump to announce what happens next, late on Thursday we reported that US National Security Advisor John Bolton and Defense Secretary James Mattis are reportedly feuding over the strategy in Syria, with Mattis favoring a more cautious approach, even as France and Britain are crafting broad strike plans and are willing to pursue any military strategy, even though as noted, a readout of a Thursday phone conversation President Trump and UK Prime Minister Theresa May suggests that military action may be days away, instead of hours.

  • Has London Fallen?

    “Let me be clear – there is no reason to carry a knife. To anyone who does – they will be caught, and they will feel the full force of the law.” London Mayor Sadiq Khan

    Dear Mr. Bad Guy, please deposit your knife here because “only cowards carry”?

    Source: The Burning Platform

  • The Rise Of Japan's Android Population: "When Abnormal Becomes Normal"

    Authored by MN Gordon via The Economic Prism blog,

    One of the unspoken delights in life is the rich satisfaction that comes with bearing witness to the spectacular failure of offensive and unjust system.  This week served up a lavish plate of delicious appetizers with both a style and refinement that’s ordinarily reserved for a competitive speed eating contest.  What a remarkable time to be alive.

    Many thrilling stories of doom and gloom were published across the tops of the finest digital news sites.  The main object of our satisfaction, however, was buried further down the pages, well below the latest Trump tweets and relentless reports on the global war buildup.  Nonetheless, our focus is not without merit.

    Today’s foil is played by Bank of Japan (BoJ) Governor, Haruhiko Kuroda.  If you’re ignorant of Mr. Kuroda, we apologize.  What follows shall forever end your bliss.

    You see, Kuroda and his cohorts at the BoJ have been surfing the razor’s edge, executing policies of mass money debasement, for several decades.  In fact, their forward thinking ways – and good intentions – have become a source of national pride.  There’s not a deranged monetary policy idea the Japanese brain trust hasn’t pioneered in the name of saving the nation from itself.

    Negative interest rates.  Direct purchases of Japanese stocks via exchange traded funds (ETFs).  Government sponsored shopping sprees.  They’ve tried it all.  And they’ve tried a lot of it.  All to suspend the deflationary effects that followed the bursting of a cheap credit induced asset bubble that popped nearly 30 years ago.

    Brutal Trifecta

    Kuroda, and those who came before him, have gone about their business with steady hands, blind eyes, and a zealous belief that they could increase wealth by increasing the supply of money.  Indeed, our hats are off to them; their track record’s unblemished.  They’ve achieved a 100 percent success rate of failure.

    By all accounts, the Japanese economy’s stagnated over the last quarter century.  At the same time, government debt has jumped up and off the chart.  The last we checked, Japan’s government debt had exceeded 250 percent of the country’s gross domestic product (GDP).

    This, no doubt, is an amazing achievement.  It more than doubles, on a percent basis, the U.S. government debt to GDP ratio of roughly 105 percent.  Moreover, it pushes the limits of honest comprehension into dishonest comprehension.  There’s no other way to understand it.

    By this, consider that the way Japan’s government debt has eclipsed 250 percent of GDP is through massive central bank asset purchases.  Specifically, the BoJ owns 41 percent of the Japanese government bond market.  They buy government bonds with money they, in effect, create from thin air.

    Yet Japan also has another preeminent distinction.  The country is pioneering precisely what happens to an economy that has an aging population, burdensome debt obligations, and stagnating growth.  Taken together, these factors compose a brutal trifecta.

    Rise of the Japanese Androids

    Japan’s aging demographic trend generally precedes the European Union by about 5 years and the United States by roughly 9 years.  Japan’s government debt trend precedes the European Union and the United States by about 10 years, give or take.  How will Japan pay its massive debt bills when its population is projected to fall by about one-third by 2065?

    Obviously, something’s got to give.  Once it has become impossible for a government to service its debt one of two things can happen.  The government can humbly default on its debt.  Or the government can attempt to inflate it away.

    Can you guess what the government of Japan, and most western economies including the U.S.A., will do?  If you guessed the latter, you get a gold star for your answer.

    So it was with this context that we happened across several clarifications from Kuroda on how Japan would one day have to consider normalizing its ultra-stimulative monetary policy.  Here are several of Kuroda’s notable utterances, which were delivered in his inaugural news conference after being reappointed for another five-year term as head BoJ banker:

    “We’ll do our utmost to hit our price target.  But we’ll also need to eventually consider kicking off a process towards policy normalization.

    “I think the process of any shift (from easy policy) would be cautious and gradual, as with U.S. and European central banks.”

    Question: When does the abnormal become normal?

    Surely, after nearly 30 years of abnormal monetary policy, the abnormal is now the normal – right?

    We suspect the BoJ will never, ever remove its finger prints from the country’s money and credit markets.  They’ll keep pushing and pushing until no market’s left at all.  By then the Japanese android population – which is well on the rise – will far outnumber the human population.

    Without question, this is where an abnormal money system takes you.  It takes you straight to an abnormal world.

  • Trump Orders Military Strikes On Syria: 3 Waves Of Airstrikes Launched

    Summary:

    • Around 9pm ET on Friday, April 13, the US, UK and France launched attack on Syrian regime targets
    • Strikes targeted regime bases and chemical weapon production facilities in Damascus and Homs
    • The Strikes consisted of 3 waves of attacks and are now complete
    • Russia was not pre-notified about tonight’s “kinetic activity”
    • Double the number of weapons was used compared to last year’s Syria strike, when 59 Tomahawk missiles were launched.
    • Regime and Russia condemn what they call a ‘flagrant violation’, but have not retaliated so far.
       

     

    Update 7:  Russia responds. Here is the full statement posted by Russia’s ambassador to the US, Anataoly Antonov:

     

    The worst apprehensions have come true. Our warnings have been left unheard.

    A pre-designed scenario is being implemented. Again, we are being threatened. We warned that such actions will not be left without consequences.

    All responsibility for them rests with Washington, London and Paris.

    Insulting the President of Russia is unacceptable and inadmissible.

    The U.S. – the possessor of the biggest arsenal of chemical weapons – has no moral right to blame other countries.

    Update 6: The White House has released the list of US demands from Assad regime  

    • Dismantle the chemical weapons program
    • Declare the weapons  
    • Destroy the stockpile
    • Allow OPCW fact-finding mission
    • Comply with the de-escalation zone

    * * *

    Update 5: Video showing the moment a tomahawk missile hits a research facility in Syria:

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    * * *

    Update 4:  Joint Chiefs chairman Dunford said that while the strikes sought to minimize risk of Russian casualties, the US did not pre-notify Russia of the Syria strikes; separately Mattis said that double the number of weapons used compared to last year’s Syria strike – when 59 Tomahawk missiles were launched.

    More from Dunford:

    • “We did have some surface-to-air missile activity from the Syrian regime.”
    • “The US did not pre-notify Russian forces in Syria about tonight’s kinetic activity.”
    • “Russia was alerted of Syria strikes through “deconfliction” line in Qatar”
    • “U.S. forces in Syria did make adjustments to force protection levels ahead of the combined air operations against the Syrian regime.”
    • “This wave of airstrikes is over. More information will follow in the morning.”
    • “Manned aircraft involved in Syria operation”
    • “Pentagon will brief tomorrow will more strike details”

    And Mattis:

    • “We used a little over double the number of weapons this year than we used last year…We were very precise and proportionate, but at the same time, it was a heavy strike.”
    • “I am confident the Syrian regime conducted a chemical attack on innocent people.”
    • “Right now we have no more attacks planned”

    * * *

    Update 3: at 10PM ET, Defense Secretary Mattis and Joseph Dunford, the Chairman, Joint Chiefs of Staff provided the Pentagon’s update, repeating that U.S., British and and French forces struck Syrias chemical weapons infrastructure tonight. Mattis said that “Clearly, the Assad regime did not get the message last year. This time, our allies and we have struck harder.”

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    Mattis adds that “I want to emphasize these strikes are directed at the Syrian regime. In conducting these strikes, we have gone to great lengths to avoid civilian and foreign casualties.”

    Then, Dunford said that the first target was a Syrian research facility, and adds that the US selected targets that would minimize risk to innocent civilians. He adds that attacks on multiple sites of Syria chemical weapons infrastructure “inflicted maximum damage.”

    In total, Targets were specially associated with the Syrian regime’s CW program. These included:

    • Scientific research center in the greater #Damascus area.
    • Chemical weapons storage facility west of #Homs.
    • Chemical weapons equipment storage facility and command post west of #Homs.

    The third target, which was in the vicinity of the second target, contained both the chemical weapons equipment storage facility and an important command post.”

    Meanwhile, the White House said that the US is confident the Syrian regime was behind the chemical weapons attack, based on:

    • media sources
    • victims’ symptoms
    • videos
    • “reliable information indicating coordination between Syrian military officials before the attack.”

    * * *

    Update 2: Witnesses are reporting explosions heard in Damascus, including residential areas, although the first wave of US, UK and French attacks is allegedly targeting the following:

    • Republican Guard headquarters
    • Military airbases
    • Chemical weapon production sites

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    Meanwhile, Reuters adds that a total of three scientific research centers struck in the attack.

    According to media reports in addition to American ships, Tomahawk missiles and aircraft – including B-1 bombers, leading the attacks, four British Tornado GR4s have targeted a military facility in Homs with Storm Shadow missiles.

    While unconfirmed, Syria state TV claims that it shot down 13 missiles near Damascus.

     

    More details:

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    Pentagon: There will be a press briefing at 10 p.m. EDT, tonight, April 13, in the Pentagon Briefing Room on operations in Syria.

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    *  *  *

    Update 1: President Trump has now confirmed that in a combined operation with France and UK, a military strike is now under way against Syria

    “A short time ago, I ordered the United States Armed Forces to launch precision strikes on targets associated with the chemical weapons capabilities of Syrian dictator, Bashar al-Assad.”

    “This massacre was a significant escalation in a pattern of chemical weapons use by that very terrible regime.”

    “These are not the actions of a man; they are crimes of a monster instead.”

    “The combined American, British, and French response to these atrocities will integrate all instruments of our national power, military, economic, and diplomatic.”

    “We are prepared to sustain this response until the Syrian regime stops its use of prohibited chemical agents.”

    “In 2013, President Putin and his government promised the world that they would guarantee the elimination of Syria’s chemical weapons.”

     “Assad’s recent attack and today’s response are the direct result of Russia’s failure to keep that promise. Russia must decide if it will continue down this dark path or if it will join with civilized nations as a force for stability and peace.”

    “The United States will be a partner and a friend, but the fate of the region lies in the hands of its own people.”

    “Tonight, I ask all Americans to say a prayer for our noble warriors and our allies as they carry out their missions. We pray that God will bring comfort to those suffering in Syria.”

    Theresa May has commented:

    • *MAY: AUTHORISED FORCES TO CONDUCT TARGETED STRIKES IN SYRIA

    • *MAY: WE ARE ACTING TOGETHER WITH OUR AMERICAN & FRENCH ALLIES

    • *U.K.’S MAY SAYS STRIKE IS LIMITED, TARGETED

    • *MAY: SYRIA’S PERSISTENT PATTERN OF BEHAVIOUR MUST BE STOPPED

    • *MAY: ATTACKS `NOT ABOUT REGIME CHANGE’ IN SYRIA

    • *MAY: CAN’T ALLOW CHEMICAL WEAPONS TO BECOME NORMALISED

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    Mr. Trump has threatened military action against Syria for days as retaliation for a suspected chemical weapons attack by the forces of President Bashar al-Assad on a Damascus suburb last week.

    *  *   *

    With two Tomahawk-capable destroyers in The Mediterranean Sea, and following “highly confident” intel that Syria launched the chemical attack, NYTimes reports that President Trump is expected to make a statement about Syria on Friday evening at the White House, an administration official said.

    Additionally,  Gateway Pundit’s Josh Caplan reports that Vice President Mike Pence was seen “‘rushing back” to his hotel in Peru amid speculation about possible U.S. military action in Syria.

    FOX News reports that President Trump has approved military strikes on Syria and is set to announce them within 30 minutes.

    Watch Live:

    The Donald Cook and The Winston Churchill are capable of carrying up to 150 Tomahawk missiles between them (last April Trump fired 59 Tomahawks into Syria).

    As a reminder, here is the largest missile diplomacy strikes from Washington…

  • Comey Failed To Tell Trump Hillary Paid For Dossier

    Former FBI Director James Comey admits in an upcoming ABC interview with George Stephanopoulos that he never told President Trump that the infamous unverified Steele Dossier was paid for in part by Hillary Clinton. Comey notified Donald Trump in the fall of 2016 that the FBI had received “materials” alleging deviant behavior and financial misconduct tied to Russia. 

    The “Steele Dossier,” created by former MI6 spy Christopher Steele on behalf of Clinton-commissioned opposition research firm Fusion GPS, was notably used as the basis for a Foreign Intelligence Surveillance Court (FISA) warrant to spy on Trump campaign associate Carter Page (and presumably, via unmasking, anyone he communicated with) as part of a sweeping, ongoing counterintelligence operation which began during the 2016 election. 

    Curiously, the FBI refused to pay Christopher Steele $50,000 when he couldn’t verify claims within the dossier, yet the agency felt that it was fit to use in a FISA warrant application and bring to Donald Trump’s attention.

    New York Times

    When Comey was asked by Stephanopoulos whether or not he thought President Trump should know about the origins of the salacious and unverified dossier, the former FBI Director simply replied “I don’t know the answer to that.” 

    “Did you tell him that the Steele dossier had been financed by his political opponents?” asks ABC News anchor George Stephanopoulos.

    “No. I didn’t,” Comey responded. 

    “But did he have a right to know that?” continued Stephanopoulos.

    “That it had been financed by his political opponents? I don’t know the answer to that,” Comey said.

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    Comey also said that he “wasn’t sure” about a claim in the dossier that in 2013, Donald Trump hired prostitutes to urinate on a bed that President Obama had slept in.

    As Kate Pavlich of TownHall points out, Hillary Clinton initially denied knowing anything about the dossier.

    Hillary Clinton was unaware of the now-infamous dossier of allegations about Donald Trump and Russia prior to Buzzfeed’s publishing of the document earlier this year, a source familiar with the matter has told CNN.

    Clinton was disappointed that the research from the document was not made public before she lost the 2016 election, the source said. –TownHall

    Then, when reports emerged that Clinton actually funded part of the dossier – “she and her team justified the move as “opposition research,” writes Pavlich.

    Not surprisingly, Clinton misrepresented the original hiring of Fusion GPS by a Republican donor. That donor was Peter Singer, who hired the firm on behalf of the Washington Free Beacon to do research on all of the GOP candidates during the primary, including Trump. Fusion GPS did not employ Christopher Steele, a British spy, to do any of this work. When the Clinton campaign hired Fusion GPS after Trump won, Steele was hired and worked with Russian officials to come up the infamous and salacious dossier.

    Keep in mind the Clinton campaign and DNC officials have denied paying for the dossier for nearly a year, but were forced into an admission after a subpoena from House Intelligence Chairman Devin Nunes revealed both entities had in fact employed Fusion GPS to create the dossier. –TownHall

    See a longer preview of Comey’s upcoming interview below:

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Today’s News 13th April 2018

  • Visualizing America's Cruise Missile Diplomacy

    President Donald Trump has threatened the use of missiles against targets in Syria. “Get ready Russia, because they will be coming, nice and new and ‘smart!’”, he tweeted, referring to Russia as an ally of the Syrian regime which stands accused of having once more used chemical weapons against targets in rebel-held areas, this time in Douma, a suburb of the capital Damascus.

    Statista’s Dtfed Loesche notes that only a year ago, the United States Navy fired 59 “Tomahawk” cruise missiles from two destroyers in the eastern Mediterranean to hit a Syrian military airfield in Homs province. Trump ordered the assault in retaliation for a suspected chemical weapons attack on rebel-held areas in Khan Sheikhoun, Idlib province, five days before.

    However, as our infographic shows, that wasn’t the first time the U.S. military fired such devices at targets in Syria. According to U.S. Central Command, Islamic State positions were targeted with up to 50 cruise missiles in September 2014, launched from the Red Sea and the Persian Gulf at the onset of the continuing aerial bombardment of the Islamist militants.

    Infographic: United States Cruise Missile Diplomacy | Statista

    You will find more infographics at Statista

    Cruise missiles have been employed by the United States military (mostly the Navy) regularly, ever since their introduction during the Gulf War of 1991. Though they have been used as a tactical weapon in full scale wars, cruise missiles have mostly been used in limited strikes.

    In his 1997 thesis, Timothy Sparks calls these strikes a “means of delivering a military punch to achieve political gain” and “an instrument in the execution of U.S. foreign policy”. In this sense, the cruise missile has been said to have replaced the gunboat. Hence, the phrase “gunboat diplomacy” has been modified to read “cruise missile diplomacy”.

    Cruise missiles have often been favored by U.S. civilian and military leadership, as they allow for limited strikes, a show of force or punitive raid, while not placing service personnel in danger of death. The missiles are fired from a safe distance to the target and can travel up to 1,500 miles, depending on make and explosives payload.

  • Taking The World To The Brink Of Annihilation

    Authored by Rick Sterling via Oriental Review,

    Western neoconservatives and hawks are driving the international situation to increasing tension and danger. Not content with the destruction of Iraq and Libya based on false claims, they are now pressing for a direct US attack on Syria.

    As a dangerous prelude, Israeli jets flying over Lebanese airspace fired missiles against the T4/Tiyas Airbase west of Palmyra.

    This was Predicted

    As reported at Tass, the Chief of Russia’s General Staff, Valery Gerasimov, predicted the current events almost a month ago. The report from March 13 says, “Russia has hard facts about preparations for staging the use of chemical weapons against civilians by the government forces. After the provocation, the US plans to accuse Syria’s government forces of using chemical weapons … furnish the so-called ‘evidence’ … and Washington plans to deliver a missile and bomb strike against Damascus’ government districts.”

    Gerasimov noted that Russian military advisors are staying in the Syrian Defense Ministry’s facilities in Damascus and “in the event of a threat to our military servicemen’s lives, Russia’s Armed Forces will take retaliatory measures to target both the missiles and their delivery vehicles.”

    The situation is clearly dangerous with risk of sliding into international conflict and even WW3. If that happens, it would mean the demise of civilization. All of this so that the West can continue supporting the sectarian armed groups seeking to overthrow the Assad government … in violation of international law and the UN Charter.

    US President Donald Trump, joined by Defense Secretary Jim Mattis, left, Vice President Mike Pence, second from left, and White House Chief of Staff John Kelly, right, speaks to the media as he arrives at the Pentagon in January 2018

    The most powerful country in the world is now led by a real estate, hotel and entertainment mogul without political experience. Behind the scenes, there is a powerful foreign policy establishment determined to maintain and reclaim US unilateral “leadership” of the world. They don’t like the fact that the US is losing influence, prestige and power around the world. Israel and Saudi Arabia are especially upset that their plans for regional domination are failing.

    East Ghouta, Damascus

    East Ghouta is a district of farms and towns on the north-east outskirts of Damascus. For the past six years, various armed factions controlled the area. On a nearly daily basis, they launched mortar and hell cannon missile attacks into Damascus, killing many thousands. This author personally witnessed two such mortar attacks in April 2014.

    By the end of March most of East Ghouta had been retaken by the government. With the peaceful evacuation of armed militants, civilians flooded into the humanitarian corridors and then government camps for the displaced. The campaign was proceeding quickly with minimal loss of life as the Russian Reconciliation officers negotiated agreements which allowed the militants to keep small weapons and be transported to Idlib in the north. Vanessa Beeley documented the situation including the happiness and relief of many civilians as they finally made it to safety. One described the feeling as “like being reborn”. Robert Fisk was on site and reported what he saw first hand in stories titled Watching on as Islamist fighters are evacuated from war-torn Eastern Ghouta and Western howls of outrage over the Ghouta siege ring hollow.

    As reported at the Russian Reconciliation Centre, by the end of March, 105,857 civilians had moved into government controlled areas while 13,793 militants plus 23,433 family members had been transported north. Those who wanted to stay, including former fighters, were welcomed. They could rejoin Syrian society with the same rights and obligations as other Syrians.

    Jaish al-Islam terrorist fighters in East Gouta

    The last remaining opposition stronghold was the town of Douma, controlled by the Saudi funded Jaish al Islam. Negotiations were prolonged because Jaish al Islam did not want to go to Idlib which is dominated by another militant opposition group, Jabhat al Nusra also known as Hayat Tahrir al Sham.

    The Chemical Incident

    On Saturday April 7 video and stories claiming a chemical weapons attack in Douma were broadcast. The video showed dozens of dead children. On Sunday the story grabbed western mainstream media headlines. US President Trump quickly come to a conclusion: “President Putin, Russia and Iran are responsible for backing Animal Assad. Big price to pay”.

    There has been no objective investigation. The media claims are based on statements and videos from members of the Syrian American Medical Society (SAMS) and White Helmets. Both organizations receive significant funding from the US government and call for Western intervention in Syria.

    Chemical weapons have emerged as the quick and easy justification for aggression. One year ago, in April 2017, it was the incident at Khan Shaykoun. That resulted in a US attack on a Syrian air base just days later. The subsequent investigation discovered that dozens of victims had shown up in hospitals in diverse locations and up to 100 km away from the scene of crime BEFORE the event happened. Strangely, and indicating the investigation team bias, this red flag pointing to fraud was not investigated further. If it was just a few victims or just one location, it might be a mistake in time record-keeping. However in this case there were dozens of discrepancies in multiple locations, clearly raising the possibility of fraud.

    Now we have the incident in Douma, at town on the outskirts of Damascus. The armed opposition is in retreat. They have tried to pressure the US and NATO to intervene directly since 2012. They have access to chemical weapons in East Ghouta and motive. They also have thousands of prisoners. This is the group which put hundreds of prisoners, primarily women and children, in cages on the streets of Douma.

    Who Benefits?

    The timing of the chemical weapons incidents is also noteworthy. As documented here, one year ago on 30 March 2017 Ambassador Haley said the US policy was no longer focused on getting Assad out. Five days later the chemical incident at Khan Sheikhoun happened, quickly followed by blaming the Syrian government, a US attack and a restoration of the demand that “Assad must go”. On March 29 Trump said that US forces will withdraw from Syria “very soon”. This was followed by outcries from the media and political establishment. Now, following the Saturday chemical weapons incident, the US is again threatening to intervene directly. The chemical weapons incidents have consistently resulted in the reversal of a proposed change in hostility toward Syria.

    US Ambassador to UN Security Council Nikki Haley

    Neoconservatives and the supporters of ‘regime change’ foreign policy have various theories why the Assad government would perpetrate a chemical weapons attack. Senator John McCain says the Syrian President was “emboldened” by the previous Trump statement.

    Juan Cole, an academic who promoted the assaults on Libya in 2011, has a different theory. He says“Chemical weapons are used by desperate regimes that are either outnumbered by the enemy or are reluctant to take casualties in their militaries. Barrel-bombing Douma with chem seems to have appealed to the regime as a tactic for this reason. It had potential of frightening the Douma population into deserting the Army of Islam.” In contrast with his theory, chemical weapons were used extensively by the US in Vietnam and Iraq when they were far from desperate. As evidenced in the flow of civilians into government held areas, most of the civilian population are happy to get away from the sectarian and violent Army of Islam (“Jaish al Islam”). Cole seems to be basing his theories on inaccurate western media coverage just as he did regarding Libya where sensational claims about a looming massacre in Benghazi were later shown to be fraudulent.

    It’s clear who benefits from sensational media coverage about a chemical weapons incident: those who seek to demonize the Syrian government and President and want the US government to intervene militarily. Every time there is an incident, it is quickly accepted and used by the governments and organizations who have been seeking ‘regime change’ in Syria for many years.

    Manipulating Public Opinion

    The manipulation of western opinion about the Syrian conflict using fake events is not theory; it has been proven.  A good example is the fake kidnapping of NBC reporter Richard Engel in December 2012.  Engel and his media team were reportedly kidnapped and threatened with death by “shabiha” supporters of the Syrian president. After days in captivity the American team was supposedly rescued by Free Syrian Army “rebels” after a shootout. In 2015 it was confirmed this was a hoax perpetrated by the FSA and their American supporters. The entire charade was carried out by the “rebels”. The goal was to demonize the Assad government and its supporters, and to romanticize and increase support for the armed opposition. Neither Engel nor NBC confessed to the reality until it was about to be exposed years later, pointing to duplicity and collusion in the deception.

    Four and half years ago, on 21 August 2013, the most famous chemical weapons incident occurred. The Syrian government was immediately accused of launching a sarin attack which killed hundreds of children and civilians. Over the next six months investigations were carried out. The conclusions of Seymour HershRobert Parry and the research site whoghouta.com concluded that the attack was almost certainly NOT from the government but actually from one of the ‘rebel’ factions with support from Turkish intelligence services. Two Turkish parliamentary deputies held a press conference and publicly revealed some of the evidence. The intent then, as now, was to provide justification and provocation for the US and NATO to intervene directly.

    Conclusion

    Today there is the imminent possibility of a major attack based on the allegations of a clearly biased source. What ever happened to international law and legal due process? Why is violence being threatened before there is a serious objective investigation of the chemical incident? If the accusations against Syria are true, why not have a serious investigation, especially now that the area has been liberated today (9 April) and safe access can be provided?

    The drums of war are pounding. After over one year of incessant Russia bashing and disinformation, is the public ready to go to war with Russia over Syria? Neoconservative hawks and their Israeli and Saudi allies seem to want this. Their plans and predictions for Iraq, Libya and Yemen were delusional fantasies with the price paid in blood by the people of those countries and in treasure by Americans as well. Sadly, there has not been any accountability for the media and political establishment that promoted and launched these wars. Now they want to escalate the aggression by attacking Syria, causing vastly more blood to flow and risking confrontation with a country which can fight back.

  • Amazon Pulls Child Sex Dolls Following Complaints

    Amazon UK has pulled child sex dolls from their online storefront after widespread complaints from a watchdog group and others in Britain over concerns that pedophiles may use them as a “gateway doll” which would lead to the sexual abuse of children.

    Over a dozen child sex dolls were removed in all, having been listed by third-party sellers. 

    “All Marketplace sellers must follow our selling guidelines and those who don’t will be subject to action including potential removal of their account,” said an Amazon spokesman in a statement. “The products in question are no longer available.”

    Amazon does not sell the products itself but instead receives money from the sellers.

    Dolls found on the website were typically three or four feet tall with waist sizes around 16 inches (41cm).

    In the accompanying pictures they were placed in sexual poses with descriptions such as “Mannequin Sexy” and “100% mimics girl’s body”.

    Several dolls were described as coming with “sexy lingerie”.

    A couple from Durham were horrified to find that a child sex doll came up in the results for their online search for sex toys.

    “We felt disgusted and we straight away reported it to Amazon,” they told the BBC.

    Twenty four hours later the couple had received no response from the retailer. –BBC

    UK authorities want to know how the dolls were allowed on Amazon’s platform in the first place.

    England’s Children’s Commissioner, Anne Longfield, said that Amazon needs to explain what happened (Too bad the Children’s Commissioner wasn’t around during Jimmy Savile’s reign of pedophilic terror, or while former PM Sir Edward Heath was abusing children for decades, – which we’re isn’t going on today of course).

    Last year, a judge at Canterbury Crown Court dismissed ex-primary school governor David Turner’s argument that a child sex doll he imported was not obscene. Turner, a former churchwarden, pleaded guilty last July to importing the child sex doll.

    Responding to a BBC investigation, Anne Longfield, England Children’s Commissioner, said: “These dolls are disgusting and are clearly meant to look like children.

    “Not only do I, as Children’s Commissioner, but the wider public also, have a right to expect a huge company like Amazon, to not only remove these products from their platform, but to explain why they are on there in the first place and ensure they can’t just be reloaded having been taken down.”

    Such dolls are clearly built for one purpose and that purpose is a clear danger to the safety of real children,” she added.

    Ms Stewart said the dolls were unlike those people might associate with stag dos and were the precursor to more sophisticated child sex robots, which she warned were “just around the corner”.

    “They are the weight of a seven-year-old child, they are not something that is the traditional blow-up doll, she said.

    “(They are) very, very different – very, very more accurate anatomically.”

    The dolls, with their unnerving glass-eye stare, false eyelashes and crooked fingers and toes, often come packaged with accessories including a choice of wigs, a USB device to warm the spongy silicone skin, and a cleaning device. –independent.co.uk

    The UK has seized 179 child-like sex dolls since March of 2016 as part of Operation Shiraz – an operation set up in conjunction with the National Crime Agency. Last July, a judge ruled that child sex dolls were obscene, and therefore covered under the 1979 Customs and Excise Management Act. That said, it is not a criminal offense to manufacture or own a child sex doll – just to import them.

    The dolls are designed to be as lifelike as possible – made of silicone type material and weighing as much as a child, and made in such a way as to enable sexual acts to be performed on them. 

    NPSCC head Almudena Lara told the BBC “We already know that there is a risk that people using these dolls could become desensitised and their behaviour could become normalised to them, so that they go on to harm children, as is often the case with those who view indecent images of children online.

    There is absolutely no evidence that using the dolls stops potential abusers from abusing children.”

  • The US Fading Into Irrelevance – A Good Thing For The World?

    Authored by Federico Pieraccini via The Strategic Culture Foundation,

    Chaos reigns in the United States, spreading to its closest allies. The war amongst Western elites is in full swing, manifesting itself from commercial wars to failed diplomacy, empty threats of war, corruption, and announced military withdrawals and attacks.

    To sum up the last few weeks of international events, it is worth comparing the direction taken by the multipolar troika of Russia, China and Iran, and the one taken by the fading unipolar order led by the United States, Israel and Saudi Arabia.

    We can analyze the respective changes taking place within the unipolar and multipolar camps, especially in the economic, commercial, diplomatic and military fields.

    The introduction by the US of duties on imports, applied to 1,300 products, including iron and aluminum, has triggered a chain of events, including the imposition of as many duties on various products exported by the US to China. The pressure on America’s European allies continues, against the protests of France and Germany. It seems that Europe is struggling to form a common front on many issues relating from foreign policy to trade. The Western elites continue its in-fighting, between the European Union (led by Berlin and Paris) and the UK and the US, clashing over agreements between London and Brussels and Washington and Brussels. The Trump tariff war aims to deliver a blow to America’s opponents, but it risks provoking strong responses, even from allies. Moreover, many analysts and economists have warned that this form of commercial warfare risks harming American workers the most.

    A divided Europe finds itself dealing with an ever-increasing need to justify its defense and security package. The British, thanks to the artificial Russian threat – characterized by fake chemical attacks, hypothetical invasions of the Baltic countries, and the situation in Ukraine – continue to sustain an environment in which Europeans seek the protection of NATO, which includes Britain’s nuclear deterrent. Looking at this critically, the intent of Berlin, Paris, and especially London and Washington, is evidently to justify increased military spending to counter an alleged threat emanating from Moscow. All this comes down to increased sales of British, German, French and, above all, American weapons to NATO and EU countries. This only serves to continue the flow of money into the coffers of the elite, thanks to artificial tensions like the one generated between Russia and the UK over the poisoning of the former Russian spy in England.

    If the unipolar world seems to have thrown to the wind the concept of diplomacy and adherence to international norms – with a flurry of expulsions of diplomats, false accusations, one-sided motions in the UN’s Security Council, and ignoring the basic rules of the Organization for the Prohibition of Chemical Weapons (OPCW) – in Asia, on the other side of the globe, diplomacy continues to bear fruit. Xi Jinping just met with Kim Jong-un, in the first of a series of meetings that could bring the North Korean leader to an initial meeting with Moon Jae-in, and later with Putin. We have heard from Washington only bellicose rhetoric directed against Pyongyang, even within the confines of the United Nations. In line with the ideological attitude of American exceptionalism, the American establishment appreciates Trump’s threats, but is quite naturally less enamored with the announcement of a meeting between the American president and the North Korean leader. According to America’s traditional ideology, no negotiations are to be entered into with geopolitical opponents and peer competitors, for the simple reason that Washington is not willing to negotiate or make any concession on any matter; the only way it knows how to engage in international relations is to impose its will by any means possible. In Syria, the example is clear, where indirect or direct military force has failed to remove Assad, and now Washington finds itself isolated, mainly diplomatically, with the Geneva II Conference on Syria now replaced by the agreement reached in Sochi, from which the United States excluded itself on account of not enjoying a leading position, thereby conceding this role to Ankara, Tehran and Moscow. This is a good example of how the Western elite’s strategic attempt to overthrow Assad and partition Syria has ran into the military reality on the ground, which includes the strength of alliances (especially between Iran, Russia and China), and the willingness of Moscow and Tehran to resolve the Syrian crisis by military and diplomatic means.

    In economic terms, the revolution the petro-yuan represents becomes more and more real, this new medium of exchange set to sooner or later involve Saudi Arabia, the world’s largest exporter of crude oil, with China as its largest buyer. The Western elites will try to oppose by any means possible such an arrangement, given that the petrodollar is the basis American military power. But it is an inevitable process, which must necessarily be backed up with a military component in order to discourage the United States from behaving recklessly. Iraq and other countries have been on the receiving end of America’s imposition of its petrodollar hegemony militarily. For this and other reasons, mainly related to US ABM systems placed all around Russian borders, Putin has had to resort to a very public demonstration of the Russian Federation’s means of deterrence, advertising the existence of the country’s new hypersonic weapons.

    As demonstrated by the recent meeting between the defense ministers of Russia and China, the multipolar strategy is now wide-ranging, relegating Washington, Tel Aviv and Riyadh to further digging themselves into the hole they have already dug themselves into (see recent events in Syria with Israel launching 8 missiles and Trump beating the drums of war). As General Wei Fenghe stated, “We came to Moscow to let the Americans know about the close military ties between the armed forces of China and Russia.” When these two military and economic powers unite their efforts, involving regional powers and mediating over various conflicts, it becomes clear that the challenge to Washington’s hegemony is progressively leading away from an international reality consisting of one superpower to one consisting of three to four powers that maintain an international balance via diplomatic, economic and military means.

    The phase in which we currently live is turbulent and is essentially caused by a single factor that has two very strong thrusts.

    The acceleration of the dwindling of the unipolar phase is directly connected with the strategic and tactical errors of the American deep state and its main sponsors, like Israel and Saudi Arabia.

    At the same time, the opposing push comes from the multipolar environment, which tends to consolidate its sphere of influence via diplomatic and military means. The goal for Moscow and Beijing is to present to the American and European elites a viable alternative that is shared among several actors. For the time being, the Euro-Atlantic establishment continues to consider itself capable of changing the course of events and preventing the drift towards multipolarity.

    Whether the Western oligarchy is a victim to its own propaganda or whether it simply wishes to avoid facing reality and is using every means available to postpone an epochal change, is difficult to determine; and this makes the future uncertain, and is therefore highly dangerous.

  • Increase In US Exports Rendering Once Crucial Cushing Data Irrelevant

    Houston is quickly becoming the new benchmark for oil, while Cushing is losing its relevance to the industry.

    Cushing wasn’t just relevant to the industry for storage purposes, but also for sector wide data purposes. According to Reuters, it “got its distinction in the early 1920s when tanks sprung up to store oil en route from Oklahoma and Texas to major metropolitan areas and refineries in the Midwest. In 1983, it became the delivery point for the newly-launched WTI futures contract CLc1.”

    For years, Cushing oil inventories were a staple for any business, trader or entity that dealt in the commodity, not to mention those who actively traded it on a daily basis. Cushing inventories were once the key indicator the the supply of crude oil held in the United States. These are the Cushing storage tanks in Cushing, OK:

    (Photo: Reuters)

    Decades ago, Cushing was seen as a fairly easy way to measure oil supply because the United States was not exporting any oil, but rather only importing it. This made it a novel and effective idea to have one major storage point to reference when trying to help gauge the amount of supply the United States had, which could quickly be used by traders and those in the industry to help with price discovery on oil futures contracts.

    Just as the trading market for oil futures has evolved, replacing open outcry with computers, so has the efficiency and method with which we collect oil inventory data. Cushing seems to be “slowly going the way of the buffalo“ while focus turns further south. Reuters reported about Cushing’s storage this morning:

    But those tanks could soon drain to levels near effectively empty, even as U.S. oil production soars past a new record of 10.4 million barrels per day.

    Oil supplies have fallen before in Cushing for a variety of seasonal or market-driven reasons. But this time, there is no shortage of crude in the market. In fact, U.S. production is straining pipeline and storage capacity.

    The declining volumes stored at Cushing reflects a more permanent shift, underscoring the hub’s waning influence as the primary measuring stick for the U.S. oil market and the leading barometer of future supply, demand and prices.

    Things have changed in the industry over the years. Nowadays are oil exports play as big of a role as our imports and, with that, our infrastructure needs have vastly shifted.

    The most obvious change in our infrastructure needs naturally and organically pushes focus toward port cities like Houston to be better indicators of oil activity coming both in and out of the United States. To arrive at spot prices, traders need to have a full grasp on what is now a much more dynamic oil inventory situation that it was decades ago. For this purpose, Houston is now the area most traders are focusing on and want to replace Cushing as a gauge for the oil market in the United States. The article continues:

    Instead, producers are increasingly shipping directly to seaports such as Houston, where vessels carry the oil to dozens of countries worldwide. That reflects a major transformation in global crude flows since the United States lifted a four-decade ban on oil exports in late 2015. Some traders and buyers argue the benchmark needs to change to reflect this.

    Joshua Wade, a crude oil marketer in Oklahoma, sees the benchmark delivery point moving south before long.

    “That’s the direction it’s moving,” he said. “As opposed to importing, now you’re exporting through the same infrastructure … The oil capital of the nation is in Houston.”

    Although it ends decades of focus on the Cushing area for the oil industry, this move toward establishing a new focus on Houston is commensurate with an oil market that has changed significantly over the last several decades. In addition, new pipelines are being built and are expected to come online over the next 2 years, as the country’s oil infrastructure continues to evolve to meet the needs of both importing and exporting. 

    Cushing’s future may not be completely bust, however – it could simply wind up as off-shore gulf storage, or a to act as a back up, rather than a primary storage site:

    A spokesman for Magellan Midstream Partners, which owns about 12 million barrels of Cushing storage, said it will remain important because of its connections to the Gulf and Midwest.

    Cushing is also connected via pipeline to the Gulf, 500 miles to the south, and can offer cheaper storage than what’s available on the coast, said SemGroup’s Conner.

    “I believe Cushing’s next chapter,” he said, “is that it’s going to become an offsite Gulf Coast storage center.”

    But Cushing’s relevance seems to be on the way out, as least as a crucial data point for the industry. Just as markets “evolve”, so do their data points and methods for collecting crucial sector wide data. Now, if we could only get the Fed to do the same with the way it measures CPI.

  • Russia's Real Endgame

    Authored by James Rickards via The Daily Reckoning,

    Russia’s Putin has never taken his eye off the ball. His ambition is not global hegemony or European conquest. Putin seeks what Russia has always sought: regional hegemony and a set of buffer states in eastern Europe and central Asia that can add to Russia’s strategic depth.

    In Syria, Russia has the warm water port of Tartus – which is important when you consider that most Russian ports are ice-bound for months of the year.

    It is strategic depth — the capacity to suffer massive invasions and still survive due to an ability to retreat to a core position and stretch enemy supply lines – that enabled Russia to defeat both Napoleon and Hitler. Putin also wants the modicum of respect that would normally accompany that geostrategic goal.

    Understanding Putin is not much more complicated than that.

    In the twenty-first century, a Russian sphere of influence is not achieved by conquest or subordination in the old Imperial or Communist style. It is achieved by close financial ties, direct foreign investment, free trade zones, treaties, security alliances, and a network of associations that resemble earlier versions of the EU

    Russian military intervention in Crimea and eastern Ukraine is best understood not as a Russian initiative, but as a Russian reaction. It was a response to U.S. and U.K. efforts to attack Russia by pushing aggressively and prematurely for Ukraine membership in NATO. This was done by deposing a Putin ally in Kiev in early 2014.

    This is not to justify Russia’s actions, merely to put them in a proper context. The time to peel off Ukraine for NATO was 1999, not 2014.

    The Russian-Ukraine situation is a subset of the broader U.S.-Russian relationship. Here, the opposition comes not just from domestic opponents but from the globalist elite.

    Globalization emerged in the 1990s as a consequences of the end of the Cold War and the reunification of Germany. For the first time since 1914, Russia, China and their respective empires could join the U.S., Western Europe and their former colonies in Latin America and Africa in a single global market.

    Globalization relied on open borders, free trade, telecommunications, global finance, extended supply chains, cheap labor and freedom of the seas. Globalization as it existed from 1990 to 2007 made steady progress under the Bush-Clinton duopoly of power in the U.S. and like-minded leaders elsewhere. The enemy of globalization was nationalism, but nationalism was nowhere in sight.

    The financial crisis of 2007–2008, caused by the elites’ own greed and inability to grasp the statistical properties of risk, put an end to the easy gains from globalization.

    Ironically, globalization gained in the short-run despite financial calamity. The same elites who created disaster were empowered to “fix” the situation under the auspices of the G20 Leaders’ Summit. This global rescue began with the first G20 summit hastily organized by George W. Bush and Nicolas Sarkozy, then the President of France, in November 2008.

    Despite the financial bailouts and central bank easy money of the decade following the crisis, robust self-sustaining growth in line with pre-crisis trends has never really returned. Instead the world has suffered through a ten-year depression (defined as depressed below-trend growth), which continues to this day.

    What little growth emerged was captured mostly by the wealthy, which led to the greatest income inequality levels seen in over 80 years.

    Discontent was palpable in middle-class and working class populations in the world’s major developed economies. This discontent morphed into political action. The result was the U.K. decision to leave the EU, called “Brexit,” the election of Donald Trump, and the rise of politicians such as Geert Wilders in the Netherlands and Marine Le Pen in France, among others.

    What unites these politicians and political movements is nationalism. This can be defined as a desire to put national interests ahead of globalization. Nationalism can mean closing borders, restricting free trade to help local employment, fighting back against cheap labor and dumping with tariffs and trade adjustment assistance, and rejecting multilateral trade deals in favor of bilateral negotiations.

    This brings us to the crux of the U.S.-Russia relationship.

    Simply put, Putin and Trump are the two most powerful nationalists in the world. Any rapprochement between Russia and the U.S. is an existential threat to the globalist agenda.

    This explains the vitriolic, hysterical, and relentless attacks on Trump and Putin.

    The globalists have to keep Trump and Putin separated in order to have any hope of reviving the globalist agenda.

    Just as Trump and Putin are the champions of nationalism, President Xi Jinping of China and Chancellor Angela Merkel of Germany have emerged as the champions of the globalist camp.

    Understanding this dynamic requires consideration of the paradoxical roles of Xi and Merkel.

    Xi positions himself as the leading advocate of globalization. The truth is more complex.

    President Xi is the most nationalist of all major leaders. He continually puts China’s long-term interests first without particular regard for the well-being of the rest of the world.

    But, China’s relative military and economic weakness, and potential social instability, require it to cooperate with the rest of the world on trade, climate change, and supply-chain logistics in order to grow. Xi is in a paradoxical position of being nationalist to the core, yet wearing a globalist veneer in order to pursue the nationalist long game.

    Angela Merkel, Chancellor of Germany is also in a paradoxical position — but the opposite of Xi’s role. Merkel knows Germany must embrace globalism both because of its unique historical burden of being the source of three major wars (Franco-Prussian, World War I, and World War II), and the necessity of German integration with the EU and Eurozone.

    At the same time, Merkel has advanced her globalist agenda by promoting German interests through exports and cheap foreign labor.

    For the globalists, the world breaks down into Manichean struggle between the nationalists, Trump and Putin, and the globalists, Xi and Merkel. Globalists may be playing a two-sided game of nationalists versus globalists, but they need to widen the lens to see that the world today is really a three-party game.

    There are really only three superpowers in the world today — Russia, China and the U.S. All other nations are secondary or tertiary powers who may be aligned with a superpower, neutral or independent, but who otherwise lack the ability to impose their will on others.

    Some analysts may be surprised to see Russia on the superpower list, but the facts are indisputable. Russia is the twelfth largest economy in the world, has the largest landmass, is one of the three largest energy producers in the world, has abundant natural resources other than oil, has advanced weapons and space technology, an educated workforce and, of course, has the largest arsenal of nuclear weapons of any country.

    Russia has enormous problems including adverse demographics, limited access to oceans, harsh weather, and limited fertile soil. Yet, none of these problems negate Russia’s native strengths.

    Notwithstanding the prospect of improved relations, Putin remains the geopolitical chess master he has always been.

    His long game involves the accumulation of gold, development of alternative payments systems, and ultimate demise of the dollar as the dominant global reserve currency.

  • Burned-Out Shack In Silicon Valley Selling For $800k

    Silicon Valley, the southern region of San Francisco Bay Area of California, is arguably the most expensive place in the United States to live. At the epicenter of all this, Palo Alto is a breeding ground for many unicorn start-ups and overvalued technology companies. The region has a median home price of roughly $2,598,200.

    To gain a perspective of just how outrageous real estate in Silicon Valley is, the median sales price of existing homes in the United States averages around $241,000.

    The meteoric rise in home prices has accelerated Silicon Valley’s real estate market into bubble territory. Even San Francisco’s median cost of a one-bedroom rental floats around $3,590 per month. As the housing bubble infects much of the San Francisco Bay area, we have stumbled across the latest installment of real estate insanity that could very well be an essential clue to what comes next.

    Take, for instance, a burned-out shack in San Jose’s Willow Glen neighborhood listed on Monday for $799,000. The realtor said the asking price is reasonable — given the housing market dynamics and its geographical location, said KTVU FOX 2.

    The owners of an abandoned, fire-destroyed home in San Jose are asking $800,000 for the house and surrounding 5,800 square foot lot. Holly Barr

    Realtor Holly Barr told KTVU the owners of an abandoned, fire-destroyed shack reflects the value of the property, not necessarily the burnt down structure. She noted in the interview, the home caught fire more than two years ago, and has been dormant ever since.

    “They did leave it standing so you can remodel it versus tearing it down so you save a lot of money when you can leave a wall up and do a remodel versus a complete tear-down,” Barr told the station. The Bird Avenue address in San Jose’s Willow Glen neighborhood sits close to a proposed transit-oriented Google “village” of offices, research sites and retail stores.

    Barr’s realtor Facebook page describes the home and lot combination as a “Great opportunity to build your dream home!” Since the posting, Barr told KTVU she has received ten offers and expected a contract on the property by the end of the week.

    Barr has yet to list the property on multiple listing services (MLS), a suite of services that real estate brokers use for completing transactions. However, she says, a home down the street recently sold for $1.6 million. Glancing at the current Glen San Jose real estate market (Zillow), the average price of a home is around $1,365,900 with total square footage around 2,500 sqft.

    Some Facebook users found the price of the shack as absurd. Here is what they said:

    “800k for that…What has this area come to when a family earning good money cannot even afford to buy even a burnt out wreak.Greed, pure greed from all concerned right here,” said Cally Jayne, a Facebook user.

    “And here we see a perfect example of unchecked free market capitalism. A Chinese billionaire will pay $850k without blinking an eye because all they are interested in is the land as an investment. Thousands of properties bought up like this with zero interest in actually living in that lot or renting or anything. The actual housing market shrinks as a result to the point where even Silicon Valley engineers are priced out. Years later, we’ll all shrug our shoulders and go “WHAT HAPPENED!?!” like it’ll be some big mystery,” said another Facebook user.

    Shocking, one Facebook user claims this million dollar neighborhood filled with shacks is located down the street from “homeless encampments every which way you turn!!!”

    Another user warns the neighborhood where the million dollar shack resides is “full of crime” and homeless people.

    About a hundred comments down, Facebook users started revolting against the realtor — showing pictures of their non-shack, McMansions for substantially less in other states…

    “This only cost me 250k to build but I’m in Texas lol,” said Gomez.

    “This is what you can get in Spicewood Texas for under $500,000,” said another.

    While it is interesting to watch the dynamics of the market. What we see in San Francisco Bay Area of California is a classic bubble. Let us explain below:

    The first graph shows house prices in the Bay Area have increased faster than the national average…Why has this been happening?

    S&P/Case-Shiller CA-San Francisco Home Price Index/S&P/Case-Shiller U.S. National Home Price Index

    The second graph shows the working population in the region has, in fact, declined versus the national average. So, perhaps, an influx of residents is unlikely the cause behind the rising housing prices.

    All Employees: Total Nonfarm in San Francisco-Oakland-Hayward, CA

    The third graph follows the progression of personal incomes in the Bay Area compared with the rest of the country.

    Per Capita Personal Income in San Francisco-Oakland-Fremont, CA

    ..And alas, the problem has been solved, the Bay Area has fewer people with much more money chasing the same houses, a classic symptom of a bubble. As for the burned out shack worth 3.3x than the median sales price of existing homes in the United State, well, that is also a sign of peak stupidity for whoever buys it next.

  • Turn On, Tune In, Drop Out Of Social Media

    Submitted by Bill Blunden,

    As the Facebook fracas unfolds, the agenda-setting members of the press have been inclined to frame Cambridge Analytica as an isolated incident. This belies the fact that mass surveillance is a fundamental aspect of social media’s business model, and that social media users cannot have their cake and eat it too, despite what tech CEOs might claim. In lieu of regulatory measures, protecting your privacy online entails swallowing a bitter pill: opting out of social media.

    While the pool of Facebook accounts suspected of being harvested by Cambridge Analytica continues to grow it’s important to recognize that there’s more to this story than a cabal of shady republican operators. By focusing on Cambridge Analytica and its parent company, SCL, the major news outlets are creating the perception that what’s happening is the work of a few bad apples. When the reality is that the underlying problem is systemic in nature.

    It’s not just the GOP. Political influence operations are a bipartisan affair. According to a number cruncher who worked for the Democrats, the 2012 Obama campaign aggregated almost five times as much Facebook data as Cambridge Analytica. It’s just that in Obama’s case Facebook execs decided to turn a blind eye. As the source explained, “they allowed us to do things they wouldn’t have allowed someone else to do because they were on our side.”

    In the aftermath of the Cambridge Analytica revelations, Zuckerberg has hired public relations experts and launched an extensive damage control campaign. Note, for example, the tacit assumption baked into the title of Brian Chen’s piece in the New York Times: “How to Protect Yourself (and Your Friends) on Facebook.” Are editors at the Times alleging that users can have their cake and eat it too?

    Reading down into the article, Chen acknowledges that truly protecting your data would entail deleting your Facebook account. This frank admission underscores the fact that it’s nearly impossible for social media users to escape data collection. After all that’s how social media companies make their money. Well over a hundred billion dollars per year. Your online activity inside their walled internet gardens as well as your dopamine addiction to “tweets” and “likes” are their income stream.

    What? You thought these online services were free? A miracle of the new economy?

    Social media’s big data collection directly informs Madison Avenue. All that aggregation begets carefully targeted attempts at manipulation (though marketing execs prefer harmless euphemisms like “educate” and “inform”). And if that wasn’t bad enough, when intelligence services ask to have a gander its dollars to donuts that social media will silently collaborate, chatting away with spy masters on a first name basis. Keep moving folks, nothing to see here.

    So there you have it. Social media is a form of mass surveillance and a tool of elite control. Buy product X, vote for candidate Y, support regime change movement Z. Pay no attention to the CEO behind the curtain.

    What to do, what to do?

    In the spirit of the European Union’s General Data Protection Regulation (GDPR), journalists like Matt Taibbi have suggested that government regulation is the way forward. The idea is that lawmakers should enact laws that force social media companies to “dial back the use of the data-collection technologies.” Luminaries like Richard Stallman have echoed similar thoughts. And although there’s merit to the idea, it’s unlikely to be immediately feasible in the United States given the tech industry’s lobbying footprint. Companies like Facebook and Google have been more than generous with lawmakers. At best, serious legislative reform is a long term approach that’s linked to state capture. At worst it’s wishful thinking.

    Thus we return to Brian Chen’s advice: cold turkey. Take personal responsibility for your own social life. Go back to engaging flesh and blood people without tech companies serving as an intermediary. Eschew the narcissistic impulse to broadcast the excruciating minutiae of your life to the world. Refuse to accept the mandate that you must participate in social media in order to participate in society. Reclaim your autonomy. 

    Having said that, the option of forgoing digital platforms in favor of genuine human interaction is related to another legitimate critique of social media; that it tends towards ideological echo chambers. Where people take refuge in the comfort of messaging that serves only to reinforce their existing beliefs. A novel incarnation of the divide and conquer strategy which the power elite have traditionally wielded to hobble the proles.

    Readers should be wary of social media bubbles, safe spaces, and the like. In the absence of billionaire donors like Robert Mercer and Tom Steyer, instituting societal change means reaching out to other folks. Some of whom may have different ways of viewing the world. Resist the temptation to write them off and have the humility to accept the limits of your own understanding.

     

  • Students Demand Penn State Defund Conservative "Hate Groups"

    Authored by Adam Sabes via Campus Reform,

    Student demonstrators at colleges across Pennsylvania are demanding that their schools cut funding to “hate groups” such as Turning Point USA (TPUSA) and the Bull Moose Party.

    The Pennsylvania Student Power Network, as well as students from other clubs such as the United Socialists, protested Monday outside an administrative building at Pennsylvania State University, complaining that the school provides funding to groups such as TPUSA and the Bull Moose Party, according to The Daily Collegian.

    The students also delivered a petition President Eric Barron’s office that urges him to defund the conservative “hate groups” that have “attracted avowed white nationalists to campus.” 

    Additionally, the petition demands that “school and student activities funds, which mostly draw from students’ tuition and fees, not be used to support student hate groups,” and that “our colleges and universities formally and publicly denounce hate groups on and around campus…”

    PSU has pushed back on the accusation that it funds TPUSA and the Bull Moose Party, arguing that neither group receives direct financial support from the school.

    “TPUSA and the Bull Moose Party have not requested nor received any funding from the University Park Allocation Committee, the entity that distributes portions of the student-initiated fee for student organizations,” Lisa Powers, a senior director for PSU’s Office of Communications, told Campus Reform.

    To that extent, Powers said that the university is committed to upholding First Amendment rights, even when it comes to defending speech that people may disagree with.

    “As an institution of higher education, Penn State not only has an obligation to support Constitutionally protected free speech, but also is committed to open and civil exchange of ideas,” Powers maintained.

    One protester, Leslie Johnson, argued during the protest that “right-wing student organizations have a responsibility to shut down hate and violence stemming from their own members” while accusing TPUSA members of previously using offensive slurs against individuals with disabilities, the Daily Collegian reported.

    Michael Csencsits, the treasurer of TPUSA at Penn State, told Campus Reform that the group’s members “never spoke with ill intent towards minorities of any kind,” adding that “we, TPUSA at Penn State, were shocked to hear [the demonstrators] calling us a hate group, as we don’t associate ourselves with any of those ideals.”

    Vincent Cucchiara, the communications director for the Bull Moose Party at PSU, echoed Csencsits criticism of the protest, arguing that the activists’ claims are “unfounded.”

    “The claims are completely unfounded, which is why they make no specific accusations, and they serve as excellent examples of how unreasonable and indecent college leftists really are,” Cucchiara told Campus Reform.

    According to its Facebook page, activists from the Pennsylvania Student Power Network protested on 21 campuses across the state, making similar demands to “denounce campus hate groups” and “deny these groups school funding.” 

    Campus Reform reached out to the Pennsylvania Student Power Network, but did not receive a response in time for publication.

    Disclaimer: the Leadership Institute previously provided financial support for The State Patriot, which is affiliated with the Bull Moose Party at PSU.

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Today’s News 12th April 2018

  • Europe's Civilizational Exhaustion

    Authored by Giulio Meotti via The Gatestone Institute,

    • Islam is filling the cultural vacuum of a society with no children and which believes — wrongly — it has no enemies.

    • In Sweden, by 2050, almost one in three people will be Muslim.

    • The European mainstream mindset now seems to believe that “evil” comes only from our own sins: racism, sexism, elitism, xenophobia, homophobia, the guilt of the heterosexual white Western male — and never from non-European cultures. Europe now postulates an infinite idealization of the “other”, above all the migrant.

    • A tiredness seems to be why these countries do not take meaningful measures to defeat jihadism, such as closing Salafist mosques or expelling radical imams.

    • Muslim extremists understand this advantage: so long as they avoid another enormous massacre like 9/11, they will be able to continue taking away human lives and undermining the West without awakening it from its inertia.

    In a prophetic conference held in Vienna on May 7, 1935, the philosopher Edmund Husserl said, “The greatest danger to Europe is tiredness”. Eighty years later, the same fatigue and passivity still dominate Western European societies.

    It is the sort of exhaustion that we see in Europeans’ falling birth rates, the mushrooming public debt, chaos in the streets, and Europe’s refusal to invest resources in its security and military might. Last month, in a Paris suburb, the Basilica of Saint Denis, where France’s Christian kings are buried, was occupied by 80 migrants and pro-illegal-immigration activists. The police had to intervene to free the site.

    Pictured: French police eject some of the 80 migrants and pro-illegal-immigration activists who occupied the Basilica of Saint Denis, on March 18, 2018. (Image source: Video screenshot, YouTube/Kenyan News & Politics)

    Stephen Bullivant, a professor of theology and the sociology of religion at St Mary’s University in London, recently published a report, “Europe’s Young Adults and Religion”:

    “Christianity as a default, as a norm, is gone, and probably gone for good – or at least for the next 100 years,” Bullivant said.

    According to Bullivant, many young Europeans “will have been baptised and then never darken the door of a church again. Cultural religious identities just aren’t being passed on from parents to children. It just washes straight off them… “And we know the Muslim birthrate is higher than the general population, and they have much higher [religious] retention rates.”

    Richard Dawkins, an atheist and the author of The God Delusion, responded to the study’s release by tweeting to his millions of Twitter followers:

    Before we rejoice at the death throes of the relatively benign Christian religion, let’s not forget Hilaire Belloc’s menacing rhyme:
    “Always keep a-hold of nurse
    For fear of finding something worse.”

    Dawkins is apparently concerned that that after the demise of Christianity in Europe, there will not be an atheistic utopia, but a rising Islam.

    That is the major point of what Philippe Bénéton in his book The Moral Disorder of the West (“Le dérèglement moral de l’Occident“): Islam is filling the cultural vacuum of a society with no children and which believes — wrongly — it has no enemies.

    According to Radio Sweden, fewer newborns in that country are being baptized due to the demographic shift. By 2050, almost one in three people in Sweden will be Muslim, according to a recent Pew report

    The European mainstream mindset now seems to believe that “evil” comes only from our own sins: racism, sexism, elitism, xenophobia, homophobia, the guilt of the heterosexual white Western male –and never from non-European cultures. So Europe now postulates an infinite idealization of the “other”, above all the migrant. The heritage and legacy of Western civilization gets sectioned off piece by piece so that nothing remains; our values are mocked and our survival instinct is inhibited. It is a process of decomposition that Europe’s political authorities seem to have decided to mediate, as if it were inevitable. Now, the European Union waits to receive the next surge of migrants, from Africa.

    In German Chancellor Angela Merkel’s major speech in the Bundestag after the unprecedentedly long and difficult process of forming a new government, she struck a conciliatory tone on immigration while offering an inclusive message on Islam. “With 4.5 million Muslims living with us, their religion, Islam, has also become a part of Germany”, she said.

    The most powerful politician in Europe capitulated: she evidently forgot (again) the difference between the civil rights of individuals, which Muslim citizens enjoy in Germany, and the sources of a national identity, on which Europe is based: humanistic, Judeo-Christian values. This realization may why a week earlier the new German Interior minister, Horst Seehofer, said that “Germany has been shaped by Christianity” and not by Islam.

    Europe’s tiredness can also be seen in a generational conflict embodied in the alarming rise of public debt. In Italy, the political establishment was recently shaken up by the election of two major populist parties. It is a country with a public debt of 40,000 euros per capita, and a tax burden equal to 43.3% of GDP. The average age of the population is the third oldest in the world, together with one of the lowest birthrates on the planet, one of the lowest retirement ages in Europe and the highest social security spending-to-GDP ratio in the Western world. It is also a country where pensions account for one-third of all public spending and where the percentage of pensioners in proportion to workers will rise from 37% today to 65% in 2040 (from three workers who support one pensioner to three workers who support two pensioners).

    An Islamist challenge to this tired and decaying society could be a decisive one. Only Europe’s Christian population is barren and aging. The Muslim population is fertile and young. “In most European countries—including England, Germany, Italy and Russia, Christian deaths outnumbered Christian births from 2010 to 2015,” writes the Wall Street Journal.

    Terrorist attacks will continue in Europe. Recently, in Trèbes, southern France, a jihadist took hostages in a supermarket and claimed allegiance to ISIS. It seems that Europe’s societies consider themselves so strong and their ability to absorb mass immigration so extensive, that nothing will prevent them from believing they can assimilate and manage terrorist acts as they have automobile fatalities or natural disasters. A tiredness also seems to be why these countries do not take meaningful measures to defeat jihadism, such as closing Salafist mosques or expelling radical imams.

    Muslim extremists understand this advantage: so long as they avoid another enormous massacre like 9/11, they will be able to continue murdering people and undermining the West without awakening it from its inertia. The most likely scenario is that everything will continue: the internal fracture of Europe, two parallel societies and the debasement of Western culture. Piece by piece, European society seems to be coming irreparably apart.

  • The World's Two Superpower Countries Are Walking On The Edge Of The Abyss In Syria

    Authored by Elijah J. Magnier,

    For the first time since he is in office, the US President Donald Trump has launched a clear threat in the direction of his Russian counterpart Vladimir Putin saying “he will pay a price”. This menace is related to the claim that the Syrian army had launched a chemical attack against the city of Duma, in eastern Ghouta, the last stronghold of Saudi Arabia’s proxies close to Damascus.

    Trump is maybe thinking of bombing the Syrian Army positions spread throughout the Syrian geography, or perhaps even the Al-Muhajereen President’s palace in Damascus- of course, without necessarily saying when and where his army will strike.

    On the other side, Russia is saying it won’t stand still and will respond to any threat against its soldiers. Indeed, Russian officers are deployed in every single Syrian unit on the ground and in command and control headquarters in the Levant, coordinating and participating in attacks against jihadists since September 2015. Therefore, it is almost certain that any direct hit against the Syrian Army will cause Russian casualties.

    Such an act of war may trigger a Russian response by President Putin who will certainly not want to look weak in front of Russian politicians, the Russian military and in front of his own people. Russia has just returned to the international arena, not only as a country in possession of nuclear weapons, but also as a country trying to create a world balance and put an end to the US unilateral dominance that Washington enjoyed since the Perestroika in 1991.

    But how could the US benefit from military action in Syria?

    The mainstream media, the think tank generously financed and nourished by Saudi Arabia, Qatar and Bahrein, Trump’s team and the intelligence community- are all asking the US President to go to war in Syria to change the regime of President Bashar al-Assad and replace it with “freedom fighters” that the same Donald Trump is very familiar with and has specifically criticised.

    These rely on a video by activists close to the jihadists, claiming civilians were killed by a chemical attack on the city of Duma, which has gone viral on social media.

    The world chooses to believe mainstream media reporting the content of this video without proof or reference to any verified sources or neutral investigation by any reliable and international investigation committee. The lies of mainstream media during the war in Syria are too numerous to count, amplified by a journalism motivated by the “regime change” agenda, rather than by accurately reporting verifiable events.

    It was perfectly possible for the world to send an international investigation team, since the jihadists of “Jaish al-Islam” have been talking for a long time with the Russians, who are coordinating the exit of these to the north of Syria. Nonetheless, this option seems unavailable and remains unused. The US thirst for waging war and seeing blood flow may not be realisable if the jihadists’ version of the “incident” were seen to be untrue.

    What is more plausible is the fact that the US is not after Assad’s head to cut off, but after Putin’s hands, to cut him off from his new dominance over the Levant.Moreover, what the US would like to see ending is Russia offering the possibility of rejecting US supremacy to Middle Eastern countries (and others in far continents to reject US supremacy).

    The other problem the US finds difficult to digest is the fact that both Assad and Putin have won the war with the help of Iran, and that the US failed to change the regime, and did not protect its Kurdish allies in Afrin. It was unable to stop its NATO partner, Turkey, from striking alliances with Russia and Iran.

    Moreover, the Jihadists (al-Qaeda and the “Islamic State” ISIS) card failed to achieve their objective to replacing a secular Syrian regime with a bloody radical Islamic regime. These Takferee were willing to eliminate the presence of all minorities (Christian, Shia, Allawite and others) and cover the Middle East with black banners. Transforming the Middle East into a sectarian arena and creating failed states like in Libya was not possible to reproduce in the Levant, thanks to the strategies pursued by Russia and Iran.

    So as a winner, it would be foolish for Assad to use chemical attacks and turn the entire world against him when he is about to celebrate his total victory over Ghouta. The city of Duma was not only surrounded but thousands of Jihadists had already left.

    Negotiations failed last week only because these Jihadists in Duma were buying time and were asked to hold on until the world intervened in their favour. They have presented many excuses to their Russian interlocutor asking that:

    • 1000 of these would remain in the city and take up the police role.
    • The $900 million they have accumulated throughout the years from taxes and donations should be transported outside Ghouta by those exiting to the north of Syria.
    • No Syrian intelligence services be allowed to be in Duma.

    All these demands were rejected by the Russian and the Syrian government, who finally understood that the jihadists were waiting for something, a hope: a chemical attack! This is why Russia and Damascus ordered the military to resume the pressure. Today over 165,000 jihadists and civilians left eastern Ghouta and the remaining twenty to thirty thousands are expected to leave in the coming days.

    So Damascus will be totally cleared and no force on the ground – as the US four star general Joseph Votel said – can make a change on the ground in Syria or defeat /change the regime. Therefore, there will be no one who could take advantage of the consequences of a possible US attack on Syria in the coming days.

    Furthermore, a possible US war in the Middle East would cost hundreds of billions of dollars to Trump, he who is digging into the Saudi and Emirates’ pockets to take every single penny, for any excuse.

    It is not a matter of cost or a question of human principle because Saudi Arabia, with US, France and UK support, has been killing tens of thousands of Yemenites for 3 years without blinking an eyelid, under the gaze of the world.

    It is absolutely not a matter of “chemical attack”, because Russia warned the world about this staged excuse Jihadists were preparing, weeks before it was announced to the world in Duma. When it comes to human casualties, the US, responsible for hundreds of thousands of deaths as a result of the embargo on Iraq (and indeed in many other US “adventures”), clearly has almost zero sensitivity, considering these casualties as collateral damage.

    So what can hundreds of tomahawks do against the empty Presidential Palace? Are these going to create a difference on the ground? Will bombing Syrian Army airports and military bases defeat Assad? No, it will only increase the number of those killed. The Syrian war casualties are close to 400,000 men, women and children. If the number becomes 401 or 405 or 410,000 to achieve……. There is no answer here but one: to slap the face of Putin and make him look weak, a head of state incapable of defending his friends and allies.

    So the aim is to create a balance in the existing equation to embarrass Russia. The US has no friends, only “common interests”, whereas ‘rising Russia’ is striking alliances yet feels impotent to react faced with an American decision to strike Moscow’s ally.

    Yes, all these possibilities exist. But these other possibilities are much more dangerous:

    • What if Syria decides to react by bombing Israel with dozens of missiles? Damascus already has an excuse to retaliate against the Israeli violation of its air space this week and the bombing of a military air base at the T4 in rural Homs, killing 8 Syrian and 7 Iranian officers. Iran, at the Syrian government’s request, supports the Syrian Army in its fight against jihadists.

    • What if US destroys the Syrian air force? Not a huge change because Russia overwhelms the sky above Syria and is running the show against the Jihadists. It would be an opportunity for the Syrian Air Force to get more modern jets.

    • What if Russia decides to react and hit back at all sources firing against Syria? What if Russia executes its menace and stands against the US? Are the American people ready to die for a country only few would manage to find on the world map? Are Americans ready to receive their children in plastic bags just because Moscow’s influence in the Levant is increasing and therefore bothering Washington?

    This is a very dangerous game Trump is venturing into with his head hidden in the sand, without weighing all the possible consequences.

    The two superpower countries are walking on the edge of the abyss.

    Will both the US and Russia fall into it or will Trump stand down, pull out of this game with his tail between his legs, accept his defeat and try to find another less dangerous arena than the Levant to face Russia? Could it be that Trump is gathering larger coalition, to make sure Russia can’t respond against several nations, and therefore avoid a wider war? The coming days will carry the answer for the world.

  • This Japanese Firm Is Paying Employees In Bitcoin

    As Japan becomes more accepting as cryptocurrencies as a means of exchange, a Japanese company is offering its employees the option to receive some of their pay in crypto.

    The company, GMO Internet Group, said it introduced the option last month, and it will gradually be extended to all of the company’s 4,000 full-time employees.

    Those opting in can select what portion of their monthly salary will be received in bitcoin, between a minimum of 10,000 yen (around $88) and a maximum of 100,000 yen ($882), Fortune said.

    The company is even incentivizing its employees to choose the bitcoin option by offering to tack on a bonus of 10% to whatever portion of their salary is being paid in crypto. 

    While Japanese labor laws require paying salaries in yen, GMO claims it’s not breaking any laws since the optional bitcoin payment would be based on mutual consent and deducted from an employee’s monthly paycheck.

    Bitcoin

    GMO registers domain names and offers web hosting and other services. It also launched an exchange in May, GMO-Z.com Coin, which was later rebranded as GMO Coin. In September, GMO announced it would invest $3 million to mine bitcoin beginning in early 2018.

    The firm says it believes cryptocurrencies like bitcoin will evolve into “universal currencies” available to anyone globally, leading to a “new borderless economic zone.”

    Of course, many financial luminaries from Warren Buffett to Ray Dalio to Robert Shiller would disagree.

    Earlier this week, Nobel Prize-winning economist Robert Shiller compared bitcoin to a “contagion” with rapid price fluctuations reflecting the “intensity of the epidemic”. He said this despite Fed officials’ insistence that the crypto market isn’t large enough to have an impact on the broader financial system.

    According to Japanese bitcoin monitoring site Jpbitcoin.com, yen-denominated bitcoin trading reached a record 4.51 million bitcoins last year – or nearly half of the volume on the world’s major exchanges.

  • America 2.0

    Authored by “Dr.D.” via Raul Ilargi Meijer’s Automatic Earth blog,

    Herbert Stein’s Law states “What Can’t Go On Forever, Doesn’t.” 

    This is a neat summary of the present trade and currency imbalance. China makes real goods and the U.S. consumes them by typing digits on a keyboard. This is the very definition of what cannot go on forever.

    • How long do you expect a nation can make nothing and consume everything?

    • How long do you expect a nation without manufacturing, without a workforce, and now without a viable military to remain pre-eminent?

    • How long does wealth and influence remain in a nation that makes nothing, does nothing, and knows nothing?

    Reminds me of that other Law: “A fool and his money should be parted as soon as possible”, for to be wealthy, and helpless, and dumb, is not a combination that lasts for very long.

    Since China cannot send the U.S. free goods forever, ergo, they won’t. That means slowly or quickly, now or later, they will cut us off. Right now it appears that can never happen, but I assure you it will very soon. And what will the U.S. do then?

    Actually, that’s very simple: the U.S. will have to close a $600B trade deficit instantly. Roughly, that means the U.S. will no longer import $600B worth of goods and be $600B/year poorer, or $2,000/year per person. Nor is this unusual. History is rife with examples of nations that once were prosperous and were suddenly cut off: Spain and Greece come immediately to mind. So how does this happen?

    The Core nation, the trading hub has failed dozens of times in history, from Venice to Holland, Spain to England, and although most of history was on a gold standard, nevertheless the same thing happened: repudiation and devaluation of the currency. That’s why a U.K. Pound is no longer a troy pound of pure silver ($192) and why the U.S. Dollar is no longer 1/20th ounce of gold ($267). So let’s run down how this might unfold.

    Like other empires, the U.S. rose to prominence with hard work and industry. Like other empires, this personal and physical industry was the foundation of an effective military. This military eventually stood alone, leaving the U.S. to set the rules of trade, the rules of diplomacy, and the rules of conduct. Like other nations, the U.S. bent those rules in its own favor, both early and late. Like other nations, the natural way to take advantage was to run an overvalued currency, which draws in capital from all trading partners worldwide, creating a 100-year spiral of wealth and influence that seems truly endless.

    However math, the cruelest of Mother Nature’s laws, is not fooled. If you bend the rules to create market distortions, those distortions are indeed created. If there were fair trade, a gold standard, a nation that increases their wealth would find its currency rise. A rising currency would dampen manufacturing and efficiency, the gold would flow back out, and the unfair advantage would be corrected. But only in a free market. Any market on Earth has an Army, and that Army’s job day and night is to make sure that unfair advantage does NOT end. Ask Smedley Butler.

    Mother Nature is never deterred. However long it takes, she waits. Lacking fair trade, an abnormally strong currency does the only other thing it can: destroy the Core nation’s industry, totally and completely. More certain than a nuclear explosion, economics will not miss a single spot until the wrong is righted and the truth is out. At first the low-gain commodity industries go: mining, shipping, smelting; then their sooty kinsmen: heavy rail, ships, ports, transportation.

    After that go the lighter industries: manufacturing, stamping, autos, and so on up to mainframes, silicon chips and phones, and with them, their children, manufacturing processes and R&D. However, as London and NY showed, you can forestall currency correction even now by moving market distortions into services and financial engineering. At this point, however, the Core nation has nothing left but Banks, Universities, and the Government/Military, and no underlying economy to support them.

    However, what Charles Hugh Smith calls the fiefdoms of monopoly cartels and apparatchiks of the 1% now lead an empty parade, horse-whipping the uncompliant 99% into supporting an economy that exists only in their minds. And then “What can’t go on, doesn’t.” The empire collapses from within, to the total surprise of historians of the 1%, and the total lack of interest of the 99%, for whom it had already collapsed decades before.

    And of the other side? Thanks to the overly-high currency of the Core nation, the perimeter nation has an artificially LOW currency. They didn’t do that, because they are by definition small and weak and aren’t using an army to set the rules. The artificially low currency leads to low costs, low labor, high enterprise, and in the mirror image of the Core nation, the constant INCREASE in manufacturing. The increase in wealth, and the addition of commodity goods, then heavy industry, then manufacturing, then R&D. Whose fault is that? Who used a worldwide army to enforce the very rules that gutted their homeland? Not the Vandals; not China. It was Rome; it was D.C.

    What is this whole imbalance based on? In our case, the artificially strong dollar, backed by a worldwide U.S. military. So how must it end? With a weak dollar, falling real markets, and a U.S. military returning home.

    You say this can’t happen? Yet it must happen. To say otherwise means China will give us free goods for 10,000 years, and the U.S. will get always weaker that whole time. So how does the transition go?

    The U.S. financial bulwark cracks, being highest and most based on psychology, not reality, very likely in conjunction to a military failure or withdrawal, as in empire finance, the military and currency are equivalent. Slowly, then rapidly, the tide flows out, the U.S. dollar gets weaker, the Chinese Yuan gets stronger, and the whole process reversed as it should have done years ago.

    (mind the log scale)

    Mother Nature isn’t fooled, and those 70 years of repression and manipulation are made up in a few years.

    Down on the ground, what happens is not that China shuts off free imports to the U.S. directly, with a political embargo, what happens is the U.S. is seen as a has-been and the U.S. dollar falls in purchasing power on the world market, raising the price of foreign goods in a “free” and “open” marketplace. Lacking manufacturing and the military power to stop it, the U.S. can’t hold off Mother Nature and the laws of physics any more.

    Knowing this to be inevitable, how would a nation prepare? For one thing, you would need to kick-start your industry, post-haste. Anything that can be made internally will find its prices stabilize and not rise. Yet before the currency rates are corrected this face overwhelming headwinds. Second, as income will be lost and the borders will be shut off, you need to switch the focus of taxation from income to tariffs, from finance to real goods.

    Third, you need to open your pipelines, ports, and infrastructure, and expand the required steel, oil by any means necessary, even armed standoffs. Fourth, you’ll need to shove the culture away from government support and subsidies that will soon disappear, and into self-reliance and productivity. Firth, you’ll need to downsize the government and especially the military, which will and must return home. Any of those platforms sound familiar?

    Despite what you read, it’s not all bad. Just as “The arrogant people will be brought down, and high and mighty people will be humbled”, “Every valley shall be raised up, and every mountain and hill shall be made low; and the crooked shall be made straight, and the rough places smooth.”

    This is a master reversal of all manipulations, of all imbalances that have reached extremes. As the U.S. – China trade deficit must balance, we know that Chinese goods must rise. But that also means the cost of production for U.S. goods must fall. This cost-advantage puts Americans back to work just as it did the Chinese, while the rise of the Yuan will make China rich, but less productive.

    What’s more, as matters reverse, the U.S. will raise prices on their exports: food and oil, two things China must have and cannot get elsewhere. Agriculture is at an all-time, 1,000 year low and must rise. Stocks and housing are at an all-time high and must fall. In a reversal, the high prices fall, the low prices rise, that’s obvious. That’s what “reversal” means, that’s what “extreme” means.

    As for manufacturing, the world is changing fast. Even China is opening “dark” factories that employ no people, only robots. That will be true here as well, which undercuts any labor savings they once had. There’s a few problems, however: robotic mega-factories only work with very large scale of identical goods that can source reliable, high-quality inputs. If oil is too high, and/or shipping or marketing fractures, those factories scale down, retool more, and therefore require more people than presently.

    How is China going to have huge robotic mega-factories if half their export market can no longer afford them? If the U.S. and China split the market, aren’t all those factories half the size of present? Since the U.S. will now have low-cost people and raw materials, what advantage does China bring to offset shipping and tariffs? The “market” isn’t uniform. There was worldwide mass-integration of manufacturing between India and England and the world in 1910 too, yet it’s didn’t persist; it changed.

    One way it can change is to leapfrog China. We hear about how the U.S. is a has-been as we are supporting legacy copper telephones while the 3rd world goes directly to fiber and cell, and this is true. However, China has mainlined on low-price, low-profit, mass-manufacturing. Why would anyone compete with them there? It’s irrational. Build a baseline and let them have all the low-profit, environment-destroying work they want, the U.S. can’t and won’t beat them there.

    We can beat them by leapfrogging into technology that’s out there, but no one is revealing yet, things they haven’t done, but Americans are good at doing: innovating, high-tech, medical. Much as I hate high-tech and its panacea as an answer, yet I believe there are goods, ideas out there that can transform the way things work.

    Look at the rapid development and uptake of LEDs for example. The patent office is filled with them, and an outsized number are American. We have superconducting maglev, field physics, material science of no-weight foam, color-shifting paint, hyperconducting graphite, and transparent concrete to name a few. All there, all unused. Let’s make an example case in a very large, very quiet investment.

    Medical and Biotech are to some extent used up, with overpriced, mass-market pharmaceuticals being rejected by price and form even by the wider population. But that’s so last-century. The new biotech is going to take a blood or DNA sample and synthesize a drug specifically for your blood and DNA. They are going to create another organ, a blood transfusion no one but you can use.

    In one way, this may be more expensive, and that’s good for profits, but in another way, they will work for you, much better and guaranteed, and therefore fix your health faster, spare you useless drugs, bad side effects, and actually work, and therefore be cheaper. What does it take to make them? A complete revolution in drug manufacturing. Multi-billion dollars’ worth of equipment, extremely unique development and patents, a 20 year head start.

    Could you sell such a thing to the Chinese? You bet. Could they get off retail manufacturing and scoop us on it? Not a chance. So you see how such a thing could happen, even with a U.S. dollar falling and a hard readjustment ahead. And that’s just one.

    If boutique and robotic goods are the new industries, what do we do with 200 million unemployed? We won’t have 200 million. That’s a consequence of the distorted extreme of our finance, our centralization, our currency. For one thing, we have only 100 million now and a lower dollar will definitely restore the competitive advantage of highly-productive U.S. workers. At the same time, if work requires fewer workers, we will find a solution. Why?

    Because you can’t have 200 million unemployed. Not even 100 million. The resulting inequity and income disparity can and has caused a revolution. Faced with that, any nation will adjust because they must or perish. As difficult as Americans can be, they are a practical people above all. This has happened to dozens of nations in the past: Spain, France, Germany, England, China, Japan, and they all still exist. Things rotated out in the big wheel of time. New things were made and the old ones faded away, and we will too.

    We’re going back to being just one of many nations, and a fair and productive one too. There are ways and we will find them. How can I be so sure? Because “What Can’t Go On Forever, Doesn’t,” and it won’t this time either.

  • Four CBS Producers "Terrified" Over Upcoming Charlie Rose Sex Scandal Exposé

    CBS has been scrambling to have employees sign NDAs in order to silence potential sources ahead of an upcoming Exposé on Charlie Rose in the Washington Post, reports Page Six.

    We’re told that CBS News president David Rhodes, “CBS This Morning” executive producer Ryan Kadro, “60 Minutes” executive producer Jeff Fager and former “CBS This Morning” executive producer Chris Licht are all terrified about a looming Washington Post investigation that’s now been in the works for months.

    There are a lot of executives looking around corners, hoping they’re not named in the story,” an industry insider told us. “[CBS is] trying to suppress [the story] by using the NDAs.” Meanwhile, said the source, “Jeff, Ryan and David are all waiting for the other shoe to drop.”  –Page Six

    Page Six notes the hypocrisy of CBS News framing alleged Donald Trump mistress Stormy Daniels as “brave” for breaking her NDA, while forcing their own employees to sign them. 

    Rose, a veteran journalist and paragon of the MSM saw his nearly half-century career end within hours of eight women coming forward in a November 2017 Washington Post Exposé  accusing him of predatory “casting couch” behavior similar to Harvey Weinstein. 

    Eight women have told The Washington Post that longtime television host Charlie Rose made unwanted sexual advances toward them, including lewd phone calls, walking around naked in their presence, or groping their breasts, buttocks or genital areas.

    The women were employees or aspired to work for Rose at the “Charlie Rose” show from the late 1990s to as recently as 2011. They ranged in age from 21 to 37 at the time of the alleged encounters. Rose, 75, whose show airs on PBS and Bloomberg TV, also co-hosts “CBS This Morning” and is a contributing correspondent for “60 Minutes.” –WaPo

    *POOF* …end of the road Charlie. 

    Rose issued an “I’m sorry and ashamed for walking around with my dick out and groping women” statement before his dishonorable discharge into a shame-filled retirement full of country-club whisperings and fewer holiday parties, we imagine. 

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    It looks, however, like the Washington Post isn’t done with Rose – as those previously in his orbit who may have enabled his behavior appear to be firmly in the crosshairs of JEFF BEZOS (and his robot dog).

  • Holter: "It's Pure Math – We're Headed For A Train Wreck"

    Via Greg Hunter’s USAWatchdog.com 

    Financial writer and gold expert Bill Holter says China has a lot of weapons to fight a trade war with the U.S. China could stop buying Treasury bonds (as it reportedly already has done).  It could sell Treasury bonds.  It could slash the value of the Yuan, or something much simpler could happen such as a failed delivery of physical precious metals.  Holter says,

    “If what has happened so far in the first three months of the year were to continue for the full year, you would be over three billion ounces (of silver).  That is not deliverable.”

    What happen when the world figures out that three billion ounces of physical silver cannot and will not be delivered to the buyers?

    Holter explains, “That’s called an old fashion run on the banks.  It will be a run on the entire system.  You would have a run on every metals exchange, and you would probably have runs on many physical commodities.  Confidence throughout the whole system would break.  You would basically show the western fractional reserve system is a fraud and has been for many, many years…

    Can London deliver a billion ounces, or two billion ounces or three billion ounces of silver?  The answer to that is no.”

    So, when does this all blow up? Holter says, “I think this whole thing has a very good chance of blowing this year.”

    There are a variety of financial trip wires, according to Bill Holter, such as thousands of sealed criminal indictments that will be unsealed in 2018. Holter also points out the explosion of global debt.  Holter charges,

    It’s now $237 trillion.  The amount of debt grew by $21 trillion globally over the last 12 months. That’s roughly 10 %.  How much did global GDP grow?   2% or 3%, I mean that is totally unsustainable.

    The biggest worry for Holter right now is escalating military action in Syria. Holter warns,

    “This is so, so dangerous.  Obviously, you worry about a hot war because with the weapons you have today, you could have WWIII start in a heartbeat.  But look at the market today.  It’s up 400 or 500 points.  You have talk of trade wars.  You have talk of hot wars.  It amazing the markets can hold together and ignore potential annihilation.”

    In closing, Holter says,

    This is math logic and common sense. This is no longer opinion.  You could go back to 2006 and 2007, and it could be argued it was opinion at that point.  It’s no longer opinion.  It’s pure math.  The system is unsustainable.  We’re headed for a train wreck.  Do I absolutely know it’s going to be this year?  No, I don’t know that, but you can see the events are piling up so quickly it certainly looks like it’s going to come to a crescendo very soon.”

    Join Greg Hunter as he goes One-on-One with Bill Holter of JSMineset.com.

  • China Launches Massive Combat Drill In Hainan As War With Taiwan "Becomes More Probable"

    Chinese President Xi Jinping promised a more transparent China on Tuesday, during a keynote speech at an economic forum in Boao, on the southern island of Hainan. Immediately after the conference, China’s PLA Navy began a 3-day combat war drill in waters to the south of Sanya, the southern tip of China’s Hainan Island, which is about 112-miles south from the economic forum.

    The Hainan Maritime Safety Administration has demarcated an area in the South China Sea that will be closed to all civilian and commercial vessels from April 10 through 13. The military exercise was made public earlier this week on the government’s website.

    The warning of yet another war drill by China comes after military jets from the People’s Liberation Army’s Eastern Theater Command conducted exercises over rugged terrain in western China to simulate an invasion of Taiwan, said the Daily Express.

    An editorial piece in the Global Times announced: “The mainland needs to continue to prepare for a possible military clash across the Straits.”

    “Beijing cannot be led by the nose. We have to figure out more fronts to showcase our strength and to be the venue for the battle with Taiwan.

    Meanwhile, the mainland needs to continue to prepare for a possible military clash across the Straits. A military showdown with Taiwan is becoming more probable and may take place sooner rather than later. Beijing needs to make clear its bottom line and inform Taiwan society of the dangerous acts which may lead to a military showdown, to avoid a war that could break out due to serious misjudgments by the US and Taiwan. Having got the upper hand strategically, the mainland won’t lose its head. Only the decisions of the mainland will count in deciding the future cross-Straits situation.”

    A Twitter war observer said, “A maritime area of 8 749 km², located south of the island of Haïnan, is closed from 11 to 13 April due to military maneuvers.”

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    The observer added, “At least 7 Chinese nuclear submarines are currently at the Sanya Naval base on Haïnan Island, which borders the South China Sea. This is also the case for a few dozen surface ships of the Chinese navy. Some things are getting ready…” (not verified)

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    Another Twitter user said, “On the heels of the #Boao2018 Forum and Xi Jinping’s keynote speech there- looks like large-scale exercises off Hainan.”

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    On Tuesday, the USS Theodore Roosevelt (CVN-71), a Nimitz-class aircraft carrier, sailed through the heavily disputed waters in the South China Sea to the Philippines. As the trade war with China climaxed last week, we reported how the United States Navy deployed three carrier battle groups to face-off against China’s only aircraft carrier and 40 warships.

    ” Satellite images had captured China’s only aircraft carrier in deployment, the Liaoning, flanked by 40 other warships and submarines, conducting unprecedented live-fire drills in the South China Sea. This massive Chinese naval exercise was observed for the first time, with China watchers pointing out that such a forceful display of deterrence was highly unusual for the People’s Liberation Army Navy. Perhaps in light of recent events, it was merely a warning.”

    Now it seems with all the chess pieces positioned around the South China Sea, the epicenter of World War III could easily be Taiwan as tensions between both countries escalate even further. China has declared Taiwan a “rogue state” and has never ruled out military intervention, said the Daily Express.

    General Rolando Bautista from the Philippine army said, as quoted by the Daily Express: “It’s a showcase of the capability of the US armed forces not only by sea but also by air.”

    “The Americans are our friends.

    “In one way or another, they can help us to deter any threat.”

    Last month it was also revealed in aerial photos of the alarming rate of expansion of Chinese military installations in the South China Sea.

    The photos show the extent of Beijing’s construction in the disputed Spratly Islands, with its previously minor outposts now transformed into fortresses featuring air and naval bases.

    Diplomatic relations between the five nations which have laid claim to the islands are already extremely strained, and the recent construction of bunkers on some of the atols point to China preparing to “protection against air or missile strikes”, raising the prospect of a conflict which could spark World War 3.

    While we do not have a crystal ball of the precise epicenter of World War III, in recent weeks, geopolitical events/shifts have provided us with critical knowledge that a trigger point for the next global shooting war could be somewhere around the South China Sea and or Syria. War is coming, have you prepared?

  • The Top 5 Possible Paul Ryan Replacements

    Submitted by Jim E. of The Political Insider

    This morning we learned that Speaker of the House Paul Ryan will soon be announcing his retirement from Congress. With Democrat fervor at an all-time high, and Republicans set to lose a massive number of seats in the November midterm elections, Ryan appears to be turning his tail just as his party is set to lose power. Whoever replaces Ryan isn’t guaranteed to be Speaker anymore.

    Axios initially reported that Ryan would make his retirement announcement tomorrow. But House Majority Whip Steve Scalise went on “Fox and Friends” this morning to confirm that Ryan will make his announcement later today:

    With Ryan’s retirement confirmed by the man himself, all talk in Washington is now focused on who will be the next Republican leader in the House of Representatives.

    Here are the top 5 possible replacements for Paul Ryan:

    1. House Majority Whip Steve Scalise – Rep. Scalise is the most likely heir apparent, and it has been rumored for the past few weeks that he is the lawmaker with the best chance of replacing Ryan. Scalise is liked and respected on both sides of the aisle. He’s also a heroic survivor of the shooting spree last spring where a crazed Bernie Sanders supporter attempted to mow down an entire baseball field full of Republicans. During President Trump’s last State of the Union speech, he specifically named Scalise “one of the toughest people ever to serve in this House” to raucous applause.

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    2. House Majority Leader Kevin McCarthy – Currently the second in command, Rep. McCarthy is reportedly vying with Scalise for the coveted position of House Speaker. Politico reported earlier this week that McCarthy is quietly courting support from rank-and-file members. Back when John Boehner retired from the speakership, McCarthy was heavily favored to replace him, until rumors of an affair derailed his candidacy. Rep. McCarthy is also scheduled to have dinner with President Trump tonight:

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    3. Rep. Daniel Webster – When John Boehner retired, Rep. Webster, a Florida Republican, was the conservative choice for Speaker. His short-lived campaign didn’t garner many votes, but it showed dissent from the more conservative members of the GOP caucus. Webster reportedly has no plans to run for Speaker of the House again in the near future.

    4. Rep. Mike Conaway – The Texas congressman was once seen as a “compromise choice” among the Republican caucus. Politico reported back in 2016 after speculation of Ryan’s departure had reached a fever pitch: “Several senior Republican lawmakers and aides speculate that Conaway, first elected in 2005, could jump into the speaker race if Ryan steps aside and McCarthy doesn’t have the votes to take the gavel or passes.” Conaway not only has the Texas delegation to back his candidacy, but he’s also an accountant, which gives him a reputation for even-handedness.

    5. Rep. Jim Jordan – Another conservative darling and former chairman of the House Freedom Caucus, Rep. Jordan has a lot of connections to outside conservative advocacy groups. If Scalise chooses not to run and Webster doesn’t take another stab at it, Jordan would have the instant backing of many influential groups. Jordan’s so outspoken and driven that Politico once referred to him as “the other Speaker of the House.”

  • RBC Warns Cracks "Starting To Show" In Canadian Credit

    One often wonders if the government will ever realize that, due to its policies, its “solutions” often wind up turning into bigger problems than the ones they set out to address initially? Not only that, but this has been the case for decades, and it will continue to be the case until we “engineer” ourselves into a crisis that is too big to fix or too overwhelming to print our way out of.

    Every day we discuss various aspects of a system that ends up far worse off due to a government apparatus that is convinced it knows best and that intervention and interfering are the solution to the problem. In essence, much of the financial crisis of 2008 was a result of the government interfering in the housing market in years prior, combined with the Fed not being able to forecast the crisis, despite widely ostracized skeptics such as Peter Schiff stating repeatedly that the housing market was heading into the abyss.

    Today, we face a new set of challenges as a result of the way governments and central banks dealt (or rather, didn’t) with the 2008 financial crisis. In the United States there are bubbles forming in student loans and subprime auto lending,  while mortgage debt and consumer credit both look to soon be out of control yet again.

    Meanwhile, the problem is spreading geographically and today we are presented with yet another “solution turned into problem”, and as Bloomberg reports, RBC now sees “cracks” in consumer credit becoming a problem yet again, this time in Canada. The combination of low interest rates and the cheap and easy access to capital has yet again gone from being a solution to a problem, as Canadian lenders are seeing delinquency rates “roll” out in time and duration.

    RBC analyst Vivek Selot wrote in a Monday note to clients that “cracks are starting to show in more and more places.”

    The quality of Canadian consumer credit is beginning to deteriorate, according to Royal Bank of Canada credit analyst Vivek Selot.

    The roll rate — the percentage of credit card users who “roll” from early stage delinquencies to 60-89 day delinquencies — reached the highest since 2008 for one credit card program, while delinquencies for another program were above the 10-year average, Selot said in a monthly analysis of credit securitization programs.

    As we have discussed previously, strong labor markets and historically low borrowing costs have allowed Canada’s households to amass one of the highest debt-to-income ratios in the developed world.

    However, amid rising interest rates and a cooling real estate market, there is growing speculation the debt burden poses a threat to the financial system even as Canadian housing prices remain one of the world’s true bubbles.

    As RBC adds, roll rates in National Bank of Canada’s Canadian Credit Card Trust program are at the highest since 2008, while for CIBC’s CARDS II program, early stage delinquencies, 60-89 day delinquencies and roll rates are all above the 10-year average, Selot said.

    Of course, this would not be a problem if supply and demand as it relates to credit and borrowing were simply allowed to operate freely, thus establishing a free market interest-rate versus a central bank mandated cost of money. Meanwhile, Bloomberg is quick to attempt to mitigate the adverse consequences of what the above implies and quotes none other than the RBC analyst, who – perhaps worried about keeping his job – notes that these trends are really quite benign and that the rolling out of delinquencies isn’t necessarily a problem yet because they haven’t “rolled’ all the way to becoming actual charge-offs:

    To be sure, Selot pointed out “consumer credit quality seems benign,” with charge-offs — or recognized losses — remaining near cyclical lows. The average payment rate in February fell about 600 basis points from January to 41.1 percent but was up 162 basis points from the same month a year earlier.

    Which reminds us of an analysis we put together in February 2018 ,detailing discrete trends within U.S. consumer credit, and identifying where the next major problem could be hiding. 

    Net Charge-Off Rate on Credit Card Loans, All Commercial Banks

    Why the very gradual increase in aggregated NCO, and thus why the lack of economist concerns about the state of the US consumer? Simple: the larger banks that dominate credit card issuance have focused on prime and super prime consumers post the Great Financial Crisis (GFC), and have enjoyed a prolonged period of low charge off rates concurrent with the Fed’s almost decade long ZIRP.  The problem here is that the vast majority of bank assets is held by a small minority of individuals as in most 80/20 distributions. Meanwhile, smaller banks – those where the bulk of the population holds its meager assets – starting to panic, as charge-off rates are back to financial crisis levels.

    Net Charge Off Rate on Credit Card Loans, (Banks Not in Top 100 by Assets)

    Canada is about to experience something very similar, and as Selot concedes “considering that fragile household balance sheets could be a precipitating factor for the credit cycle to turn, any signs of consumer credit quality deterioration seem worthy of attention.

    A few more rate hikes by the BOC should do it.

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Today’s News 11th April 2018

  • Iranians Panic – "Can't Find Dollars" After Government Enforces Currency Controls

    Yesterday saw the Iranian Rial crash to a record low 60,000 per USDollar on the unregulated markets, according to Tasnim News agency, having lost more than a third of its value in the last six months.

    This prompted an angry response from Iran’s First Vice President Eshaq Jahangiri who said in a statement recorded for state TV and published on its website that enemies of the Islamic Republic and of the government were behind the instability.

    As Bloomberg reports, Jahangiri said the sudden decline was “unnatural and unprecedented” because tens of billions of dollars worth of foreign currency had flowed into Iran in recent weeks from the country’s export revenues and this showed that a wider political plot sought to discredit the government of President Hassan Rouhani and foment instability.

    It’s natural that our enemies and opponents, especially the Americans, after the nuclear deal was agreed and after Trump took office, have made great efforts to try and present Iran’s economy as turbulent and try to discourage anyone from working with Iran,” Jahangiri said.

    And so Iran enforced a rate of 42,000 Rial per USD warning that anyone found selling the dollar at rates higher than 42,000 rials “will be dealt with severely” by judicial authorities and the police, Jahangiri said.

    “We do not officially recognize any other rate than this one,” he said.

    “From tomorrow, any other price that’s offered in the market will be considered contraband, in the same way that illegal drugs are contraband.”

    Still, things remain ugly for those holding Rials…

     

    “We will certainly use all of the state’s strengths and capabilities in order to, God-willing, steady the market,” government spokesman Mohammad Bagher Nobakht said in a statement shown on state TV. “We accept that this situation is not a good one and it’s against what we want.”

    As one would expect, this news prompted widespread concern among Iranians who flocked to exchange offices on Tuesday only to find there were none to buy.

    As GulfNews reports, on Ferdowsi Street in central Tehran, home to dozens of banks and currency exchanges, many had hoped to find much cheaper dollars than the day before.

    But all along Ferdowsi Street, exchangers were turning hundreds of people away or had signs up saying: “We have no dollars to sell”, while rate boards showed blank spaces for US and European currencies.

    “Last night on TV I heard it’s 42,000 so I came here to buy some for my son who is overseas. I’ve checked every exchanger but I couldn’t find any dollars,” said Tahmoores Faravahar, a 71-year-old retired oil sector worker.

    Many businesses were forced to halt work amid the uncertainty created over prices and the availability of imported materials.

    “After speaking to my usual printer, I’ve had to cancel a project because they weren’t selling anything,” said Payam, a 38-year-old in Tehran who owns a small advertising and publishing company. “I was also planning to advertise for new personnel on Saturday — I’ve also canceled that plan now.”

    Some said this had only created fear and confusion.

    “People don’t have hope in the political and economic situation in this country. People are confused and just want to keep their money safe by turning it into dollars.”

    One exchange office said it was never clear when the central bank would deliver dollars for them to sell.

    “I don’t know why they haven’t come yet today,” he said in the early afternoon. “But the new rate is good. The price was not normal these last few days.”

    But this seemed to sum things up well…

    “The truth is that the people can’t trust the word of the government that their money will be safe,” said a trader who sold currency on the street and asked to remain anonymous.

    One street trader said exchangers would find ways to fiddle the system to get round the new fixed rate, even though Vice-President Eshagh Jahangiri warned this would be considered smuggling.

  • The Future Of Europe Is Civil War

    Authored by Ash Sharp via The Strategic Culture Foundation,

    Europe is committing suicide – or at least it’s leaders have decided to commit suicide. Whether European people decide to go along with this is, naturally, another matter. ~ Douglas Murray, The Strange Death of Europe

    Europe is my home. It is where I live. Everything I value is here – on this continent. Everything I love and will suffer to lose is here.

    My country, separate, slightly odd, provincial and uncool; Brexit Britain, land of bad food and uncharitable reputations on dental hygiene and house cleanliness, is a European country too.

    God knows it is a conflicted time to be an Englishman abroad.

    God knows it hurts to look at the goldfish bowl from outside. Yesterday brought the story of 78-year-old Richard Osborne-Brooks.

    A Scotland Yard spokesman said:

    ‘At 00:45hrs on Wednesday, 4 April, police were called by a homeowner to reports of a burglary in progress at an address in South Park Crescent, Hither Green SE6, and a man injured.

    ‘The 78-year-old resident found two males inside the address. A struggle ensued between one of the males and the homeowner. The man, aged 38, sustained a stab wound to the upper body.

    ‘London Ambulance Service took the injured male, who was found collapsed in Further Green Road, SE8, to a central London hospital. He was pronounced dead at 03:37hrs.’

    What happened next? Of course, this pensioner was arrested on suspicion of murder. Murder! A crime which requires premeditation and to be without lawful excuse, for stabbing an intruder to your home.

    With his disabled wife upstairs, Mr. Osborne-Brooks encountered and subsequently killed an armed man who was intruding in his home, the purported castle of the Englishman. No more a castle, you are a serf of the state and subject to prosecution for doing what any man ought to do in such circumstances. Are we to accept that criminals may just enter our homes, threaten our lives and take what they will?

    This is a travesty of justice at any time, let alone the crime nightmare we find ourselves in today. You are more likely to be raped in London than New York. Terrorism is impossible to control. Islam is appeased and treated as an exalted religion over our own and is in control of increasingly large territories across the country. The leader of the Christian faith in Britain has simply given up. White Britons are a minority in their own capital. Free speech died long ago in the land of my fathers. You’ve heard this song from me and others before. The rhetoric of terrorism will never win and strong and stable becomes a little more shrill with every passing assault on my people. The police investigate online hate speech but not muggings – as the unfairly maligned Katie Hopkins said, if this terrorism losing, I’d hate to see it win.

    Our enforcement officers are visiting mosques today to speak to residents about hate crime concerns. 
    If you face anti-Muslim hate, report it to @TellMamaUK and always dial 999 in an emergency. #WeStandTogether pic.twitter.com/j92uOU6UgC

    This is not a police officer. This is an enforcement officer, whose job is to collect information about crimes committed against the good name of Islam. He has no power to arrest, nor to issue any fines. This young man is employed by the state to sniff out hate. The kind of hate that obeys neo-Marxist ideas, the perceived hate for the minority projected into the heart of the White Briton, hate that is subjectively felt- on behalf of the minority! If you feel someone hates someone, then it is so and neither party need agree with you.

    I’m from a little place called Great Britain,

    But I dunno if I love or hate Britain,

    These words upon my page written,

    Are the things that make and break Britain. ~ Scroobius Pip

    Maybe your European country has similar problems that are being unreported. Maybe you are a Swede, lied to about your democratic socialist wonderland, or German and told that your generation must suffer the intolerable, for the indelible sins of the Reich. The Reich, the idea of which remains to this day the great weapon against the people of all Europe, against our national identity. It seems that wherever you turn, suggesting that perhaps our nations are ill-served by the Multi-Kulti experiment draws the accusation: “Nazi!”

    Is it the case that this fifty-something school teacher is a Nazi when she says with sadness of her majority immigrant students;

    “I believe the difference between their world at home and our world is so large they cannot reconcile them. The Sharia is, for many students, surely superior.”

    Only the fool or the ideologue can disagree with this assessment. Anyone who thinks for longer than ten-seconds about the nature of faith can see how obeying the laws of God is more important to the faithful than integrating with a sad shadow of a Western civilization that knows not for whom it stands. We know not why we exist. No longer allowed a national identity, Europeans are simply chattle. Though we are told that we are free, the truth is we have no freedom at all and no respite from the Orwellian demands of our masters that we ignore the obvious in favor of the fantastical.

    The sad reality is that, in all likelihood, war will come again to our continent. It will be unlike the war that nearly killed national identity, in that no more will a nation-state invade her neighbors for territory and conquest. This war will be continent-wide, but internal – and I believe firstly ideological. As the demographics slide further and further towards the annihilation of White Europeans in many countries, the powers that be – the globalist, rootless and self-serving elites that lead most European countries – will ramp up the programming. State news channels will increase the propaganda, of how values are all that matter. We will see enforcement officers like in Hackney rolling out across the land. The taxpayer will pay for their own imprisonment, fearing to leave their houses, and unable to defend their homes in any case.

    “There is a rise in knife crime because nothing is being done about it. Gang crime and gangland violence should be taken seriously as terrorism by the state. Statistical trends over the years show more fatalities of gangland activities than terrorist activities. There is no voice of reason from state officials and an absence of debate.”Dr. Mohammed Rahman

    What I contend we are seeing is the weaponization of minority groups by the state itself. One has to admit, using Islamophobia to repress verbal dissent and feral immigrant youth to make the streets so dangerous – or at least give that impression – that most civilians will simply stay at home would be a brilliant idea if your agenda is to create a submissive and servile nation of tax-cows. The neoliberal debt machine needs feeding; so for as long as the music plays the aim has to be to keep the majority dancing to the tune while they are robbed blind, and ultimately replaced by the migrants Israel is too proud to take.

    The state must encourage the Muslim community to tell stories of hate crimes, which suggests the hate crimes are few. Tell Mama, a Muslim run and state-funded collector of anti-Muslim sentiment is regularly pushed through the media as an authority on the matter, despite previously losing funding for misrepresenting statistics. Imagine if you were being persecuted – would you need enforcement officers and campaigners to encourage you speak out?

    Imagine, a state-funded NGO and enforcement officers on the streets of Telford, of Oxford, of Rotherham. Where was the state then? Looking away. Gathering evidence of anti-Muslim hate, I suppose. Imagine a constable patrolling Mr. Osborne-Brooks’ street in the wee hours of Wednesday morning. Where was the state then? Not protecting the law-abiding citizen, that is for sure.

    Imagine recognizing that for all the faults in our society that this society is British, not the dar al-Islam; and that British law -not Islamic- has to rule. Imagine that offense had to be taken and not given. Imagine that instead of stifling the legitimate questions many Britons have about Islam and immigration we could be trusted to discuss them and find peaceful grounds, and non-violent solutions. Instead, old men are arrested for defending their wives and homes from burglars; criticism of Islam is banned, and London itself has been turned over to criminal gangs – the vast majority of whom are non-British in ethnicity.

    I have been a vocal opponent of interventionalist foreign policy and war in general for most of my adult life – primarily from a leftist position. I abhor violence. I find no pleasure then in telling you that we are headed for civil war in the United Kingdom if we persist in treating the native population as little more than a tax farm. For far less insult the American Revolution began, and like almost all civil conflicts we will see bloodshed in England when the financial situation becomes untenable for a critical mass of citizens. For reasons best known to themselves, our leaders – and this I fear is true of most Western nations – have abdicated. Capitulated. Do they care about anything other than living out their lives in comfort, secure that their childless lineages end during times of relative prosperity?

    [Society] is a partnership in all science, a partnership in all art, a partnership in every virtue and in all perfection. As the ends of such a partnership cannot be obtained in many generations, it becomes a partnership not only between those who are living, but between those who are living, those who are dead, and those who are to be born. ~ Edmund Burke

    For whatever reason, we believe that war is over in Europe, that it may never return. Seventy years of peace with forty years of paranoid cold war have resulted in a kleptocrat European Union and brainless, soulless political elites who know nothing of their own cultures; wishing only that all Europe becomes a federal state. Looking to a utopian future has always proven to be a recipe for disaster for mankind.

    It will not start out as a race war; first Britons will first turn on each other as the hard left demands more state support and the right refuses to pay for it. The socialist cries that the government has sold the family silver will carry some weight- enough to mobilize the anti-capitalists against the working class, who are already beginning to gather together in self-interest. The riots of the disenfranchised Black youths in London will again be played off in the media and by the liberals as a just and expected response to this austerity; and Islam will continue to be protected at all costs, despite further evidence of rape gangs, jihad, and terror plots. In such an environment, all it will take is a single flashpoint to turn economic strife into sectarian violence the likes of which we have not seen since The Troubles. The fight will be undesired by all, not that this will save us.

    “Those who make peaceful revolution impossible will make violent revolution inevitable.” ~ John F. Kennedy

    In a time of chaos, human beings revert to tribal states. We seek solace and comfort in those that are like ourselves. Can we deny that on some cultural-wide subconscious level that this is happening at greater and greater levels? The desire for ingroup identity is rising, across all demographics. You can feel it in the air and water itself- this is why identitarians are looked at with fear by the state. The elites know what the rise of these groups portend for the future, that none of these events are happening in isolation, that they are all connected to the state’s failure to enforce the laws fairly. Is civil war inevitable? Maybe- I hope it can be avoided. I hope, as always, that I am wrong and the world can be a Coca-Cola advert of inclusivity, just plain old getting along, in the way that our governments have promised us we all would.

  • The Slippery Slope To A Constitution-Free America

    Authored by John Whitehead via The Rutherford Institute,

    The ease with which Americans are prepared to welcome boots on the ground, regional lockdowns, routine invasions of their privacy, and the dismantling of every constitutional right intended to serve as a bulwark against government abuses is beyond unnerving.

    I am referring at this particular moment in time to President Trump’s decision to deploy military forces to the border in a supposed bid to protect the country from invading bands of illegal immigrants.

    This latest attempt to bamboozle the citizenry into relinquishing even more of their rights is commonly referred to as letting the wolves guard the henhouse.

    We are long past the stage where the government—at any level—abides by restrictions on its powers.

    What we are dealing with is a run-away government hyped up on its own power, whose policies are dictated more by paranoia than need.

    It works the same in every country.

    Time and again, we keep sacrificing our liberties for phantom promises of safety.

    The lesson is this: once a free people allows the government to make inroads into their freedoms or uses those same freedoms as bargaining chips for security, it quickly becomes a slippery slope to outright tyranny.

    This is fast becoming a government that has no respect for the freedom or lives of its citizenry.

    Yet there are warning signs we cannot afford to ignore.

    First off, there is no such thing as a “border” in the eyes of these military patrols. The entire United States of America has become a Constitution-free zone.

    According to journalist Todd Miller, the “once thin borderline of the American past” is “an ever-thickening band, now extending 100 miles inland around the United States—along the 2,000-mile southern border, the 4,000-mile northern border and both coasts… This ‘border’ region now covers places where two-thirds of the US population (197.4 million people) live… The ‘border’ has by now devoured the full states of Maine and Florida and much of Michigan.”

    The U.S. government has also declared that ever-expanding border region a Constitution-free zone.

    Second, this de facto standing army that has been imposed on the American people is in clear violation of the spirit—if not the letter of the law—of the Posse Comitatus Act, which restricts the government’s ability to use the U.S. military as a police force.

    America’s police forces—which look like, dress like, and act like the military—have undeniably become a “standing” or permanent army, one composed of full-time professional soldiers who do not disband, which is exactly what the Founders feared.

    Third, there’s the Customs and Border Protection (CBP) agency, an arm of the Department of Homeland Security made up of more than 60,000 Customs and Border Protection employees, and supplemented by the National Guard and the U.S. military.

    A national police force imbued with all the brutality, ineptitude and corruption such a role implies, the DHS—aptly described as a “wasteful, growing, fear-mongering beast”—has been ruthlessly efficient when it comes to establishing what the Founders feared most: a standing army on American soil.

    Finally, there’s this whole question of martial law.

    Technically, a good case can be made that the Constitution-free border regions within the United States are already under martial law carried out by a standing army comprised of militarized police and the U.S. military.

    Then again, for all intents and perhaps, the American police state is already governed by martial law, is it not? Battlefield tactics. Militarized police. Riot and camouflage gear. Armored vehicles. Mass arrests. Pepper spray. Tear gas. Batons. Strip searches. Drones. Less-than-lethal weapons unleashed with deadly force. Rubber bullets. Water cannons. Concussion grenades. Intimidation tactics. Brute force. Laws conveniently discarded when it suits the government’s purpose.

    This is what martial law looks like, when a government disregards constitutional freedoms and imposes its will through military force, only this is martial law without any government body having to declare it. This is martial law packaged as law and order and sold to the public as necessary for keeping the peace.

    It doesn’t matter whether the so-called threats to national security posed by terrorists, extremists or immigrant armies ever became a reality. Once the government acquires—and uses—additional powers, it does not voluntarily relinquish them.

    The damage has been done.

    Face it: we are sliding fast down a slippery slope to a Constitution-free America.

    We’ve been heading in this direction for some time now, but this downward trajectory has picked up speed since Donald Trump became president.

    All of the government’s ongoing assaults on the constitutional framework of the nation have been sold to the public as necessary for national security.

    Remember when George W. Bush claimed the country was being invaded by terrorists post-9/11 and insisted the only way to keep America safe was to give the government and its gun-toting agents greater powers to spy, search, detain and arrest?

    The terrorist invasion never really happened, but the government kept its newly acquired police powers made possible by the USA Patriot Act.

    Remember when Barack Obama claimed the country was being invaded by domestic terrorists and insisted the only way to keep America safe was to give the military the power to strip Americans of their constitutional rights, label them extremists, and detain them indefinitely without trial?

    The invasion never really happened, but the government kept its newly acquired detention powers made possible by the National Defense Authorization Act (NDAA).

    Now you have Donald Trump claiming the country is being invaded by immigrants and insisting that the only way to keep America safe is to empower the military to “assist” with border control.

    Mind you, Trump is not the first president to deploy military forces to the border.

    Nevertheless, you can rest assured that this latest call for boots on the ground (whether those boots belong to the National Guard or the armed forces is mere semantics) to police the American border is yet another Trojan Horse that will inflict all manner of nasty police state surprises on an unsuspecting populace.

    As I make clear in my book Battlefield America: The War on the American People, the menace of a national police force—a.k.a. a standing army—vested with the power to completely disregard the Constitution, cannot be overstated, nor can its danger be ignored.

  • Massive Geomagnetic Storm Set To Hit Earth This Week

    Over the weekend, a middle latitude coronal hole (88) started to face earth. This is the same coronal hole that was responsible for a moderate (G2) geomagnetic storm last month. Now it seems like the same coronal hole is at it again, spewing high-speed solar wind – headed towards Earth this week.

    According to Space Weather Prediction Center (SWPC), a minor (G1) geomagnetic storm watch is now in effect for Tuesday and Wednesday. The storm watch was issued “due to the arrival of a negative polarity coronal hole high-speed stream,” SWPC detailed on its website.

    C. Alex Young, associate director for science in the heliophysics science division at NASA’s Goddard Space Flight Center, published in a report Monday that “three substantial coronal holes” arrived on his radar last week. Young describes coronal holes as an “open magnetic field from which high-speed solar wind rushes out into space.” If the high-speed solar wind is earth facing, then “it interacts with Earth’s magnetosphere” and lead to all sorts of problems.

    “For much of this week the sun featured three substantial coronal holes (Apr. 3-6, 2018). Coronal holes appear as large dark areas which are identified with arrows in the still image. These are areas of open magnetic field from which high speed solar wind rushes out into space. This wind, if it interacts with Earth’s magnetosphere, can cause aurora to appear near the poles. They are not at all uncommon. Credit: Solar Dynamics Observatory, NASA.”

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

    As of Tuesday morning, there are radio blacks across the world. During moderate geomagnetic storms, “intense ionization within the D-layer propagation region is observed on the sunlit side of Earth, and affects a wide range of frequencies within the HF Spectrum (3 – 30 MHz),” said Solarham. In other words, solar storms can degrade HF radio communications (radio blackouts).

    Real-Time Solar Wind (RTSW) data shows an uptick in solar wind activity hitting Earth’s shields starting on Monday and increasing into Tuesday.

    The Estimated Planetary K index (Kp) charts below are “one of the most common indices used to indicate the severity of the global magnetic disturbances in near-Earth space,” said Solarham. A Kp index of five or more shows a geomagnetic storm is in progress.

    K-indices of five or greater indicates storm-level geomagnetic activity around the Earth.

    Below is a one-week K-indices view from four magnetometer reporting stations.

    Below is a one week A-indices view from four magnetometer reporting stations.

    We have stated before, U.S. power grid failures are possible due to strong geomagnetic storms; in today’s case, it looks like a G1 (Minor) geomagnetic storm could produce auroras for much of Canada, over the next few nights.

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    The Daily Star quotes Brian Gaensler, an astrophysicist at the University of Toronto, who gave a speech earlier this month — warning of the “carnage solar flares can cause.”

    “The concern here is that if the radiation from a solar flare hits the earth, it can knock out satellites, disrupt mobile phones, and other forms of communication,” he said.

    The effects of a solar storm could last months – or even years – as authorities would have to repair all the damaged infrastructure.

    Specialist insurance firm Lloyd’s of London estimates the repair bill could cost up to £1.8 trillion.

    Experts have warned it is just a matter of time before we suffer another direct hit.

    Pete Riley, senior scientist at Predictive Science in San Diego, California, previously predicted there was a 12% chance that Earth will be hit by a storm by 2020.

    He said: “Even if it’s off by a factor of two, that’s a much larger number than I thought.

    “Initially, I was quite surprised that the odds were so high, but the statistics appear to be correct.

    “It is a sobering figure.”

    In 2015, the British Government published a report into the risks to the UK of severe space weather.

    It said an event such as a coronal mass ejection could wreak havoc across the world.

    Video: Geomagnetic Unrest, Storms, Predictions | S0 News Apr.10.2018

  • On The Threshold Of War – Paul Craig Roberts

    Authored by Paul Craig Roberts,

    UPDATE: There is no longer any doubt that the criminally insane government in Washington is driving the world to the last war.

    https://www.rt.com/news/423634-unsc-security-threats-syria-chemical/

    https://www.rt.com/news/423627-russian-military-checks-chemical-douma/

    UPDATE: As Americans we must face the possibility that we have a criminally insane government in Washington that is leading the world to destruction.

    A Russian Government Press Release:

    False information is being planted about the alleged use of chlorine and other toxic agents by the Syrian government forces. The latest fake news about a chemical attack on Douma was reported yesterday. These reports are again referenced to the notorious White Helmets, which have been proved more than once to be working hand in glove with the terrorists, as well as to other pseudo-humanitarian organisations headquartered in the UK and the US.

    We recently warned of the possibility of such dangerous provocations. The goal of these absolutely unsubstantiated lies is to protect the terrorists and the irreconcilable radical opposition that has rejected a political settlement, as well as to justify the possible use of force by external actors.

    We have to say once again that military interference in Syria, where Russian forces have been deployed at the request of the legitimate government, under contrived and false pretexts is absolutely unacceptable and can lead to very grave consequences.

    This is John Helmer’s interpretation of the warning:

    “WHEN THE RULE OF LAW WAS DESTROYED IN SALISBURY, LONDON AND THE HAGUE, AND THE RULE OF FRAUD DECLARED IN WASHINGTON, THAT LEAVES ONLY THE RULE OF FORCE IN THE WORLD. THE STAVKA [the high command of the Russian armed forces] MET IN MOSCOW ON GOOD FRIDAY AND IS READY. THE FOREIGN MINISTRY ANNOUNCED ON SUNDAY “THE GRAVEST CONSEQUENCES”.

    THIS MEANS ONE AMERICAN SHOT AT A RUSSIAN SOLDIER, THEN WE ARE AT WAR. NOT INFOWAR, NOT CYBERWAR, NOT ECONOMIC WAR, NOT PROXY WAR. WORLD WAR.”

    I hope that the situation is not this severe.

    On The Threshold of War

    “The Russian view is simple: the West is ruled by a gang of thugs supported by an infinitely lying and hypocritical media while the general public in the West has been hopelessly zombified.” — The Saker

    “The US generals, unlike the US politicians and media and US administration, are risk-averse if the outcome may be catastrophic.” — Gilbert Doctorow

    Above are two of the three most intelligent and reliable Russian experts. The third is Professor Stephen Cohen, who worries, as I do, that an arrogant Washington drowning in hubris is provoking Russia to war.

    The Saker has concluded that the Russians have concluded that it has been a mistake to put up with Washington’s lies, insults, and orchestrated events and have decided that if the dumbshit Americans attack Syria, Russia is going to take out the US forces involved.

    Doctorow has concluded that as dumbshit as Washington is, the US Joint Chiefs of Staff have more sense and will not go along with an attack on a Russian ally.

    I hope that Doctorow is correct. However, with that crazed demented warmonger John Bolton sitting in the White House next to Trump, who enjoys the role of tough guy, I am more scared by The Saker’s reading than I am reassured by Doctorow’s.

    There are reports, the validity of which I cannot confirm at this time, that the entirety of the Russian military has been put on high alert, not merely the Russian forces in Syria. See here for example.

    Nikki Haley’s threats against Russia in the UN do not support Doctorow’s hopes that reason will prevail in Washington. The crazed bitch said that the US will act against the “monster” Assad with or without the UN.

    Tough man Trump, sitting next to the crazed warmonger Bolton, declared that the alleged chemical attack in Syria “will be met and it will be met forcefully. We can’t let atrocities like we all witnessed… we can’t let that happen in our world, especially because of the power of the US, we are able to stop it.”

    There was NO chemical attack by Syria. I know that for an absolute 100% fact. I would bet my life on it. Yet here is the US president declaring a total non-fact to be something “we all witnessed.” Little wonder that the Russians have concluded that the West is ruled by a gang of thugs supported by an infinitely lying and hypocritical media while the general public in the West has been hopelessly zombified.

    If Doctorow is not correct that a sane US Joint Chiefs of Staff will prevail over the crazed President and his National Security Adviser, we are headed for war.

    It is a war that the US will not win.

    Notice, dear readers, that there is no mention of this pending crisis in the Western media. Instead the media whether CNN or the BBC has as the lead news story the FBI’s raid on Trump’s lawyer.

    Insouciant Americans is too mild, isn’t it. Clueless is the correct word.

  • Ride-Hailing Apps Surpass Regular Taxis In NYC

    It has been six years since Uber drivers started roaming the streets of New York. From that day on, drivers of the notorious yellow cabs, an icon of Manhattan and the rest of the Big Apple for the past century, lived in constant fear of becoming obsolete.

    And, as Statista’s Patrick Wagner reports, Uber and other Ride-Hailing apps such as Lyft, Juno or Via are in the fast lane when it comes to the total number of pickups whilst the city’s green and yellow cabs’ share on the streets is steadily declining.

    Infographic: Ride-Hailing Apps Surpass Regular Taxis in NYC | Statista

    You will find more infographics at Statista

    By February 2017 app-based mobility providers outstripped classic cabs in New York and by November of the same year Uber alone managed to pick up more passengers than Taxis.

    In the future, the New York landscape might lack the famous yellow cabs coloring its streets.

  • Clinton, Comey, Uranium One: Who Is John W. Huber?

    Authored by Micah Morrison via Judicial Watch,

    Widespread head-scratching has followed Attorney General Jeff Sessions’ recent disclosure that U.S. Attorney John W. Huber is leading an investigation into 2016 election controversies.

    In a March 29 letter to Republican committee chairmen, Mr. Sessions said that Mr. Huber, the U. S. Attorney for Utah, had been appointed to “evaluate certain issues” raised by the GOP. He did not say which issues, but there are plenty.

    In a July 27, 2017 letter, GOP leaders had called on Mr. Sessions to “appoint a second special counsel to investigate a plethora of matters connected to the 2016 election and its aftermath.” These included actions by Hillary Clinton, James Comey, Loretta Lynch and others, email controversies, mishandling of classified information, Fusion GPS and the Steele Dossier, FISA warrants, wire taps, leaks, grand juries, the Clinton Foundation and the Uranium One deal.

    Mr. Sessions instead appointed Mr. Huber, “an experienced federal prosecutor,” and left the door open to a special counsel. Mr. Sessions noted that Mr. Huber “will make recommendations as to whether any matters not currently under investigation should be opened, whether any matters currently under investigation require further resources, or whether any matters merit the appointment of a Special Counsel.”

    Translation: Mr. Huber is investigating the investigations, not the underlying allegations.

    Mr. Huber was appointed Assistant U.S. Attorney in Utah in 2002. He was named U.S. Attorney in 2015 by Barack Obama. Mr. Huber has an important backer in Utah’s senior senator, Orrin Hatch.

    After President Trump requested the resignations of all sitting U.S. Attorneys, Mr. Sessions kept Mr. Huber alive with an interim appointment under the Federal Vacancies Act, until the president could be persuaded to re-nominate him. He was confirmed a second time for the post in August.

    It’s a truism of law enforcement that if you want to pursue high-level political corruption, get yourself a junkyard dog – a strong prosecutor, good in a fight. Hickman Ewing Jr. – the former U.S. Attorney for the Western District of Tennessee and later the Whitewater Deputy Independent Counsel – comes to mind. Mr. Ewing had a long track record of pursuing political corruption before Kenneth Starr tapped him for the Whitewater probe. The Office of U.S. Attorney in Utah, by contrast, has been toothless. Mr. Huber has not been implicated in any wrongdoing, but for the last three years it has been his shop and his responsibility. Before that, it was his training ground.

    In November, for example, a federal judge dismissed the last charges against Terry Diehl, a powerful Utah developer and former Utah Transit Authority board member. The government was widely seen as bungling the case. The Salt Lake Tribune noted that Diehl, “a well-known developer with friends in high places — including [Utah] House Speaker Greg Hughes, R-Draper — once stood charged with 14 felony counts that stemmed from allegations that he lied about or hid assets as part of a 2012 bankruptcy. Prosecutors had whittled the case down three times since early October, dropping counts of concealment and tax evasion.” Prosecutors acknowledged “missteps” to the newspaper, including getting wrong the amount of taxes Diehl allegedly did not pay.

    Mr. Huber’s office also lost a 2017 case against real-estate mogul Rick Koerber, charged with running a multi-million-dollar Ponzi scheme. The case – the government’s second try – ended in a mistrial. A judge threw out an earlier case. The government will try again in September.

    But the Rosetta Stone for understanding Utah’s corruption problems may be the sprawling saga of John Swallow and Mark Shurtleff, two former Utah attorneys general charged with a multitude of corruption charges. The case gripped the state for years. Mr. Huber’s office recused itself in 2013 from the investigations, transferring the case to Colorado. Later, the Justice Department declined to charge either man and Utah state prosecutors took over. Swallow was acquitted on all counts last year and the charges against Shurtleff were dropped in 2016 by Davis County Attorney Troy Rawlings, who bitterly complained about FBI and Justice Department conduct in the case.

    That’s how the game is played in Utah, locals say. Power brokers have the state wired. Mr. Huber seems like a decent man, but his tenure at the top of Utah law enforcement has been short and undistinguished. Why appoint him to such a sensitive position in Washington?

    One explanation is that Mr. Sessions knows precisely who Mr. Huber is and what he wants from him. Mr. Sessions went to bat for Mr. Huber in his re-appointment as U.S. Attorney and named him vice-chair of the prestigious Attorney General’s Advisory Committee. Mr. Huber, a political survivor, knows precisely who Mr. Sessions is and what the attorney general wants from him.

    Another more intriguing explanation is that Mr. Sessions needs someone who knows Utah. One part of Mr. Huber’s mandate, as outlined in the GOP letter, is the “purchase of Uranium One by the company Rosatom, whether the approval of the sale was connected to any donations to the Clinton Foundation, and what role Secretary Clinton played in the approval of the sale.

    Uranium One’s assets included significant holdings in Utah and nearby states.

    Prosecutors – and the media, so transfixed by the Mueller probe that they decline to look elsewhere – should follow the Uranium One money in Utah and the rest of the West. And if Mr. Huber does recommend additional investigations or a second special counsel, Mr. Sessions should get himself a junkyard dog.

  • China Producer Price Inflation Tumbles As Global Reflation Cycle Ends

    It appears, thanks to the collapse in China’s credit impulse, that China’s commodity boom is over…

    China’s factory inflation slowed for a fifth month while the consumer price index retreated from a four-year high.

    Producer prices rose at their slowest YoY rate since October 2016… with Consumer Durables prices contracting YoY for the 4th straight month.

    And Consumer Price inflation slowed notably to +2.1% YoY (versus expectations of a 2.6% gain), dropping 1.1% MoM, with Consumer goods and food seeing the biggest slowdown.

    And as goes Coal, so goes China PPI…

    Prices for commodities such as iron ore and coal fell on “global oversupply and government policy to stem overcapacity,” Katrina Ell, an economist at Moody’s Analytics in Sydney, wrote in a recent note.

    “The government’s clampdown on financial risks is also slowing credit growth,” she said, which is a drag on investment and demand for industrial inputs.

    As Bloomberg notes, moderating factory inflation may offer limited support to the world reflation cycle, amid rising trade tensions that may weigh on the broadest synchronized global growth in years.

  • Google's File On You Is 10 Times Bigger Than Facebook's – Here's How To View It

    Authored by Jake Anderson via TheAntiMedia.com,

    With all the attention paid to Facebook in recent weeks over ‘data breaches’ and privacy violations, even though what happened with Cambridge Analytica is part of their standard business model, it’s easy to forget that there are four other Big Tech corporations collecting just as much – if not more – of our personal info.

    Google, Amazon, Apple, and Microsoft are all central players in “surveillance capitalism” and prey on our data. New reports actually suggest that Google may actually harvest ten times as much as Facebook.

    Curious about just how much of his data Google had, web developer Dylan Curran says he downloaded his Google data file, which is offered by the company in a hub called “My Account.”

    This hub was created in 2015, along with a tool called “My Activity.” The report issued is similar to the one Facebook delivers to its users upon request. Whether or not these reports are comprehensive is still up in the air, but Curran says his was 5.5 GB, which is almost ten times larger than the one Facebook offered him. The amount and type of data in his file, Mr. Curran says, suggests Google is not only constantly tracking our online movements but may also be monitoring our physical locations.

    Curran’s Google report contained an incredible amount documentation on his web activity, going back over a decade. But perhaps more importantly, Google had also been tracking his real-life movements via his smartphone device or tablet. This included fairly random places he’d frequented, many of the foreign countries and cities he visited, the bars and restaurants he went to while in these countries, the amount of time he spent there, and even the path he took to get there and back.

    This, of course, is not new. It has been well-known for some time that Google silently tracks you everywhere you go and creates a map of your physical movements through its Location History feature. You can deactivate it by going to your timeline and adjusting the preferences.

    Another Google user downloaded his file and discovered the company had been archiving his data even when he browsed in Incognito mode, a setting that advertises itself as one that does not save browsing history.

    Like Facebook, Google gathers your info for sale to 3rd-party advertisers, including your name, email address, telephone number, credit card, specific ways you use Google’s services, your mode of interaction with any website that uses Google technology (such as AdWords), your device, and your search queries. And if you don’t enter your account and make adjustments, pretty much anything you do online while deploying a Google tool is tracked. Google’s policy states:

    If other users already have your email, or other information that identifies you, we may show them your publicly visible Google Profile information, such as your name and photo.

    But much of the location data stems from the use of Google apps like Maps or Now, which broadcast your location. If you want to stop this information from being shared, you have to go into your account settings and make adjustments.

    The ostensible purpose of this data-sharing is to fine-tune your user experience, but who is benefitting more is arguable. The same year it released its new activity hub, Google also unveiled a new program that shares your email with high-value advertisers. Called Customer Match, this system streamlines consumer info so that an advertiser’s “brand is right there, with the right message, at the moment your customer is most receptive.”

    Google’s policy also lists the three major categories of data collection: Things you do; Things you create; and Things that make you “you.”

    But you do have the ability to limit this info from getting out. You can turn off location tracking, voice searches, and other features; you can view and edit your preferences; you can adjust your public profile, and you can download Google’s data hoard to see what they see.

    You’re also welcome to go a bit further and delete all of your data from not only Google but also a variety of other online services.

    1. Go to Deseat.me and sign in with a Gmail address.
    2. Look down the list of synced accounts and decide which you want to delete and which you want to keep.
    3. Click the button

    Will deleting a select amount of your data from the innards of the Big 5 stop predatory data mining? Certainly not. But while Facebook testifies before Congress, we have an opportunity to draw attention to some of the consequences of a technocracy that privatizes surveillance. As the control grid tightens, our reaction indicates our level of complacency.

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Today’s News 10th April 2018

  • UK's Top Doctor Demands Ban For "Killer" Kitchen Knives

    Hot on the heels of London Mayor Sadiq Kahn’s city-wide ban on knives, The Express reports that one of Scotland’s leading doctors has called for a ban on “killer” kitchen knives.

    Dr John Crichton, the new chairman of the Royal College of Psychiatrists in Scotland, wants the sale of pointed kitchen knives to be banned to help reduce the number of fatal stabbings.

    Dr Crichton, who took on the role of chairman in June this year, is championing a switch to so-called “R”-bladed knives, which have rounded points and are far less effective as weapons.

    As The Express details, he said that research shows many attacks, particularly in households where there has been a history of violence, involve kitchen knives because they are so easily accessible. Dr Crichton believes a switch from sharp-pointed, long-bladed knives to the new design could save lives.

     “This is a public health measure and public health measures are always about society deciding on a self-imposed restriction for the public good.”

    Maybe – to be safer – all knives should be blunted to a government-mandated level of kill-a-bility… oh and while we are banning dangerous kitchen implements – what about rolling-pins? Perhaps they should be licensed to only those who pass a government-mandated baking sanity test?

  • America Hasn't Learned A Thing: Racism, Materialism, & Militarism Still Reign Supreme

    Authored by John Whitehead via The Rutherford Institute,

    As a nation, we have a tendency to sentimentalize cultural icons in death in a way that renders them non-threatening, antiseptic and easily digested by a society with an acute intolerance for anything controversial, politically incorrect or marred by imperfection.

    This revisionist history has proven to be a far more effective means of neutralizing radicals such as Martin Luther King Jr. than anything the NSA, CIA or FBI could dream up.

    This was a man who went to jail over racial segregation laws, encouraged young children to face down police dogs and water hoses, and who urged people to turn their anger loose on the government through civil disobedience. King called for Americans to rise up against a government that was not only treating blacks unfairly but was also killing innocent civilians, impoverishing millions, and prioritizing the profits of war over human rights and dignity.

    King actually insisted that people have a moral responsibility to disobey unjust laws.

    This is not a message that the government wants us to heed.

    No, the government wants us distracted, divided, warring against each other and helpless to free ourselves from a lifetime of bondage and servitude to the powers-that-be.

    It’s working.

    In life, King was fiery, passionate, single-minded in his pursuit of justice, unwilling to remain silent in the face of wrongdoing, and unafraid of offending those who might disagree with him.

    In death, King has been reduced to a lifeless face on a stone monument: mute, immobile and powerless to do anything about the injustices that continue to plague the nation.

    America hasn’t learned a thing.

    The “giant triplets of racism, extreme materialism, and militarism“ that King railed so passionately against have yet to be conquered.

    In fact, the evils of racism, extreme materialism, and militarism have got us in a death grip.

    America is still waging endless wars abroad, prioritizing profit margins over principle, and adopting institutionalized racist policies that result in a disproportionate number of people of color being stopped, searched, raided, arrested, thrown in jail, and shot and killed by government agents.

    Fifty years later, we have compounded the evils of racism, materialism and militarism with ignorance, intolerance and fear.

    Callousness, cruelty, meanness, immorality, ignorance, hatred, intolerance and injustice have become hallmarks of our modern age, magnified by an echo chamber of nasty tweets, government-sanctioned brutality, and “the politics of exclusion.”

    “We the people” have become “we the police state.”

    By failing to actively take a stand for good, we have become agents of evil.

    None of us who remain silent and impassive in the face of evil, racism, extreme materialism, meanness, intolerance, cruelty, injustice and ignorance get a free pass.

    Those among us who follow figureheads without question, who turn a blind eye to injustice and turn their backs on need, who march in lockstep with tyrants and bigots, who allow politics to trump principle, who give in to meanness and greed, and who fail to be outraged by the many wrongs being perpetrated in our midst, it is these individuals who must shoulder the blame when the darkness wins.

    Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate, only love can do that,” King sermonized.

    The darkness is winning.

    It’s winning in our communities. It’s winning in our homes, our neighborhoods, our churches and synagogues, and our government bodies.

    It’s winning in every new generation that is being raised to care only for themselves, without any sense of moral or civic duty to stand for freedom.

    We are on the wrong side of the revolution.

    “If we are to get on to the right side of the world revolution,” advised King, “we as a nation must undergo a radical revolution of values. We must rapidly begin the shift from a thing-oriented society to a person-oriented society.

    Freedom demands that we stop thinking as Democrats and Republicans and start thinking like human beings, or at the very least, Americans.

    Freedom demands that we not remain silent in the face of evil or wrongdoing but actively stand against injustice.

    Freedom demands that we treat others as we would have them treat us. That is the law of reciprocity, also referred to as the Golden Rule, and it is found in nearly every world religion, including Judaism and Christianity.

    In other words, if you don’t want to be locked up in a prison cell or a detention camp—if you don’t want to be discriminated against because of the color of your race, religion, politics or anything else that sets you apart from the rest—if you don’t want your loved ones shot at, strip searched, tasered, beaten and treated like slaves—if you don’t want to have to be constantly on guard against government eyes watching what you do, where you go and what you say—if you don’t want to be tortured, waterboarded or forced to perform degrading acts—if you don’t want your children to grow up in a world without freedom—then don’t allow these evils to be inflicted on anyone else, no matter how tempting the reason or how fervently you believe in your cause.

    As long as we continue to allow ignorance, intolerance, racism, militarism, materialism and meanness to trump justice, fairness and equality, there can be no hope of prevailing against the police state.

    Martin Luther King Jr. dared to dream of a world in which all Americans “would be guaranteed the unalienable rights of life, liberty, and the pursuit of happiness.”

    He didn’t live to see that dream become a reality.

    It’s still not a reality. We haven’t dared to dream that dream in such a long time.

    But imagine…

    Imagine what this country would be like if Americans put aside their differences and dared to stand up—united—for freedom…

    Imagine what this country would be like if Americans put aside their differences and dared to speak out—with one voice—against injustice…

    Imagine what this country would be like if Americans put aside their differences and dared to push back—with the full force of our collective numbers—against the evils of the police state…

    As I make clear in my book Battlefield America: The War on the American People, tyranny wouldn’t stand a chance.

  • Russia's Richest Billionaires Lost Over $16 Billion Today

    It was not a great day to be a Russian billionaire…

    After Washington unleashed yet another round of sanctions, this time targeting the Oligarch class, Russian stocks plunged the most since 2014, Russian bond spreads blew out the most since 2000, and the Ruble plunged most since Jan 2015

    But it was the richest Russians that suffered the most as Bloomberg reports the combined net worth of the country’s wealthiest people fell by $16 billion Monday — erasing all of their year-to-year gains — following last week’s U.S.-imposed sanctions.

    Not all the Russian billionaires were hit equally though.

    All but one of the 27 Russian tycoons listed on the Bloomberg Billionaires Index lost money, led by Siberian nickel miner Vladimir Potanin, whose fortune declined $2.25 billion.

    As RusLetter.com reports,  the condition of the billionaire Oleg Deripaska, who fell under personal US sanctions, is rapidly declining. Based on the rating of the richest people of the planet according to Forbes (real time) version at 18:00 Moscow time, it decreased by $ 957 million and in real time is $ 5.3 billion. This was due to a sharp drop on the background of En + London stock exchange by 20% – to $ 9.6 per share.

    In addition to Deripaska, six more participants of the Forbes list were also hit: they themselves were included in the new list of sanctions, as well as 12 of their companies. Suleiman Kerimov’s fortunes decreased (by $ 244 million to $ 6.6 billion) and Viktor Vekselberg’s F 10 (by $ 41 million to $ 14.6 billion). The condition of Igor Rotenberg and Kirill Shamalov did not change, and Vladimir Bogdanov and Andrei Skoch even grew by $ 1 million and $ 8 million, respectively.

    Before the publication of the “Kremlin report” in which the US authorities promised to name the main friends of Vladimir Putin, against whom restrictions must be imposed, the richest people in Russia were visibly nervous. When the “Kremlin report” was made public, it turned out that it fully coincides with the Russian part of the world ranking Forbes. The Russian billionaires were confused: “Will the sanctions be imposed for the entire Forbes list?” For some time everyone was waiting for new personal sanctions, but problems, as it turned out, do not threaten everyone.

    On Friday, April 6, Washington said that now “Russian oligarchs will not have a chance to profit from the Russian corrupt system, they will not be isolated from the consequences of the destabilizing activity of their government.” All assets of their assets in the US are frozen. Citizens of the United States are forbidden to enter into any business relations with them. More details about the seven billionaires who are under sanctions, via Forbes:

    Viktor Vekselberg

    Assessment of the state: $ 14.4 billion

    Place in the world ranking: 89

    Source of income: is the founder and chairman of the board of directors of the group “Renova”. Now Vekselberg’s main asset is investment in the Swiss company Sulzer, the manufacturer of pumping equipment. Previously owned assets in the “Sual Holding”, the company Deripaska “Rusal” and “Rosneft”

    For which he got on the sanctions list: “for bribing officials associated with the project for the production of electricity in Russia.”

    Andrey Skoch

    Assessment of the state: $ 4.9 billion

    Place in the world ranking: 404

    Source of income: a share in USM Holdings (30%) owned by OOO Metalloinvest Managing Company is a large Russian mining and metals company specializing in steel production, as well as a share of Vnukovo airport shares (formally the shares of Skoca are held by his father, pensioner Vladimir Skoch).

    For which I got on the sanctions list: “for being a State Duma deputy and having links with Russian organized criminal groups.”

    Suleiman Kerimov

    State estimation: $ 6.4 billion

    Place in the world ranking: 265

    Source of income: the Kerimov family owns 83% of the shares in the largest Russian gold mining company Polyus, the international airport of Makhachkala

    For which he got on the sanctions list: “for being associated with the Russian government, for money laundering and non-payment of taxes in the amount of 400 million euros for the purchase of villas in Cap d’Antibes”.

    Oleg Deripaska

    Assessment of the state: $ 6.7 billion

    Place in the world ranking: 248

    Source of income: holding company En +, which owns blocks of shares of aluminum producer US Rusal and electricity company Eurosibenergo. En + Group is an energy company that is valued at $ 9.8 billion and is managed through the NG “Basic Element”, which also fell under sanctions. Deripaska also controls the GAZ Group, Ingosstrakh, Basel Aero (airports in the Krasnodar Territory), and the Kuban agroholding

    For which I got on the sanctions list: “for representing the interests of the Russian government, for money laundering, bribing officials and links with criminal groups.”

    Vladimir Bogdanov

    Assessment of the state: $ 1.8 billion

    Place in the world ranking: 1339

    Source of income: a stake in Surgutneftegaz

    For which he got on the sanctions list: “for being the general director and deputy chairman of the board of directors of Surgutneftegaz, the company contributed by the US sanctions service to the appropriate list.”

    Kirill Shamalov

    Condition assessment: $ 1.4 billion

    Place in the world ranking: 1650

    Source of income: 3.88% stake in Sibur (17%, which he bought from Gennady Timchenko in 2014, in the spring of 2017 he sold Leonid Mikhelson)

    For which he got on the sanctions list: “for working in the energy sector of the Russian economy and for marrying Katerina Tikhonova, who is considered Vladimir Putin’s daughter (Bloomberg reported divorce in January), and for a loan from Gazprombank, which was sanctioned.”

    Igor Rothenberg

    State estimation: $ 1.1 billion

    Place in the world ranking: 1999

    Source of income: 50% of the shares of RT-Invest Transportation Systems, operator of the Platon system for collection of heavy-duty vehicles, as well as 46.2% of the shares of the Tula Cartridge Plant and 79% of the shares of Gazprom Drilling, which he acquired from his father, Arkady Rothenberg

    For which he got on the sanctions list: for his work “in the energy sector of the economy of the Russian Federation”.

     

  • The True Origins Of The US-Chinese Trade War

    Authored by Andrew Korybko via Oriental Review,

    China responded to Trump’s tariffs with economic restrictions of its own, though its market has always been notoriously difficult to enter due to Beijing’s own ironically “protectionist” policies designed to safeguard its domestic producers, but the government has been easing its prior regulations in recent years in order to facilitate the country’s One Belt One Road (OBOR) global vision of New Silk Road connectivity. The developing trade war between the US and China threatens to formalize the long-running economic competition between these two Great Powers as they vie with one another over control of the world order, with Washington wanting to retain its erstwhile but fading unipolar dominance while Beijing wants to pioneer the emergence of a multipolar system marked by a diversity of theoretically equal stakeholders.

    The friction between these contradictory forces is the basis of the ongoing New Cold War, though there’s a bit more of a backstory to this global struggle than just that.

    The US thought that “winning back Beijing” through its late Cold War-era alliance with China against the USSR would allow Washington to do as it pleases to what its decision makers had convinced themselves was their largest proxy state to date, but the US’ betrayal of China through the failed Tiananmen Square Color Revolution attempt of 1989 forever changed how the East Asian country’s communist leaders viewed America. Nevertheless, the naïve liberal-globalists of the Clinton era thought that they could bribe China to remain “loyal” to the US-led global world order that emerged after the Cold War by relying on “win-win” investments that would enrich the American elite while helping China rapidly modernize.

    Suffice to say, this presumption proved to be totally false.

    The so-called “Washington Consensus” and attendant “rules of the game” are rigged in order to benefit the US and indefinitely perpetuate its global hegemony, which is why China continuously broke the rules to its advantage but was allowed to get away with it for so long because of the aforementioned relationship that it had with naïve liberal-globalist American elites who profited from this system at the expense of average Americans.

    The Obama Administration tried to preemptively “balance” the inevitable geopolitical consequences of this trend by proposing the so-called “Group of Two” or “Chimerica” global partnership with China, but Beijing rejected this outreach.

    By 2013, China felt confident enough with its newfound strength to announce the world-changing OBOR megaproject that’s designed to bring a definitive end to America’s economic dominance and related unipolar “leadership”, but then the US and China suddenly “switched” global economic roles following Trump’s election.

    President Xi’s January 2017 speech at Davos saw him proclaim China as the champion of a reformed version of the globalization model that America once led, while President Trump has made no secret of his preference for the type of protectionist-nationalist policies that the People’s Republic itself embraced in the past.

    The rest of the world is now compelled to choose between these competing systems.

    Just like during the Old Cold War, however, the new one is seeing the reemergence of another Non-Aligned Movement (Neo-NAM) that’s attempting to strike a “middle ground” by “hybridizing” the best policies of both but in a more complicated and comprehensive way than before because of the inextricable geopolitical and economic dimensions that transcend the former dogmatic adherence to a single ideology. If there’s any “ideology” at all nowadays, then it’s the pure self-interest of Neo-Realism, and it’s here where Russia can play a pivotal role during this transitional period of global systemic change by assisting the Neo-NAM in “balancing” between both “blocs” and reaping the resultant advantages.

  • White House Hoping To Trim At Least $120BN From $1.3TN "Omnibus" Spending Bill

    Larry Kudlow took viewers by surprise during an appearance on “Fox News Sunday” this week when – after offering the usual boilerplate about the White House’s trade beef with China – he mentioned that the White House was considering a “rescission bill” to strip some spending from the $1.3 trillion omnibus spending bill that President Trump signed into law last month.

    Congressional and West Wing sources have apparently confirmed as much with Bloomberg, which reported that the rescission bill – which could ultimately strip $120 billion from nondefense discretionary spending – was under serious consideration.

    With the CBO now projecting a $1 trillion budget deficit by 2020 – two years sooner than previously estimated – the urgency for the government to roll back some of its deficit-fueled spending has intensified. And bear in mind, the CBO is now estimating that there won’t be a recession within the next ten years, which would make this the longest economic cycle without a contraction in US history.

    CBO

    As we noted earlier, according to the latest estimates, spending will exceed revenue by $804 billion in the fiscal year ending Sept. 30, compared with a projected $563 billion shortfall from June, the non-partisan arm of Congress said in a report Monday. In fiscal 2019, the deficit will reach $981 billion, compared with an earlier projection of $689 billion.

    Given the threat that swelling debts pose to the US financial system (not to mention the stock market), Bloomberg reported that the US is planning to ask Congress to pare back some of the domestic spending authorized by the bill.

    Meanwhile, the White House is hoping to leave military funding, funding for the opioid crisis and border security untouched.

    House Majority Leader Kevin McCarthy has been working with the administration on a rescission maneuver, though any attempts to roll back spending will likely be opposed by Democrats.

    For those who are unfamiliar with the obscure provision, here’s an explanation of “rescission” courtesy of Bloomberg.

    The rescissions request makes use of an obscure provision in the 1974 Budget Act that allows the president to request the cancellation of some spending and gives Congress 45 days to approve the measure. Under a 1992 precedent in the Senate that limits debate, Republicans likely could pass the bill without any Democratic support.

    “The administration is working to identify potential rescissions and at this point, there is no completed list or dollar amount,” White House budget office spokeswoman Meghan Burris said.

    The 2,232-page omnibus bill was roundly criticized by 25 House conservatives, including House Freedom Caucus member Mark Meadows, who almost sunk the bill by turning against it and threatening what would’ve been a third government shutdown this year. 

    Trump also flirted with opposing the bill after it passed the House, and it wasn’t until Speaker Paul Ryan journeyed to the White House for a lunch meeting where he secured the president’s support.

    Trump

    Still, the president made clear that he was signing the bill because of a national security imperative – and that he opposed the domestic spending concessions Congressional Republicans had permitted. It also, crucially, lacked funding for Trump’s southern border wall. The White House had initially sought nearly $20 billion.

    The bill increased military spending by $80 billion this year above previous spending limits and non-defense spending by $63 billion. Trump’s 2018 budget had sought a $54 billion cut to non-defense spending.

    Despite having the ability to circumvent the Democrats, both Democratic and Republican aides told Bloomberg the package would face difficulty in the Senate as Republicans – particularly members of the appropriations committee – likely wouldn’t support breaking a good-faith agreement and doing an end-run around their Democratic peers.

    “Advancing a rescission package like the one described would lay waste to the notion that Republican leadership negotiated the omnibus in good faith and poison the well for future responsible, bipartisan legislating,” said Matthew Dennis, a spokesman for House Appropriations Committee Democrats on Friday.

    Steve Bell, a former Senate Republican budget aide of the Bipartisan Policy Center predicted that because of this, the package will face difficulties in the Senate and may not even be introduced.

    Republicans could try to pare back domestic spending by $120 billion to put it in line with the Trump 2018 budget. But the larger the request, the more difficult it will be for moderate Republicans to swallow. 

    Steve Ellis of Taxpayers for Common Sense, a spending watchdog group, said the larger the request from Trump, the more difficult it will be.

    “Unless its a really targeted package that just focuses on some egregious waste, it is going to get enough people ticked off that it won’t go through” he said.

    Budget watchdogs say they would welcome the chance to reduce the roughly $150 billion spending increase in the omnibus bill.

    “I don’t have a view yet on this particular process, but certainly we overspent for FY 2018 and if we can pare the funds backs a bit – both on the defense and non-defense side – that would be an improvement,” Marc Goldwein of the Committee for a Responsible Federal Budget said.

    While it’s reasonable to assume that paring back domestic spending might be unpopular with both Democrats and moderate Republicans, the CBO report cited above is just the latest sign that the White House has dramatically overspent. And at the end of the day, stopping the US from transforming into Greece might be a higher political priority than preserving domestic programs.

     

  • Petro-Yuan Is The Newest Weapon For The China-Russia-Iran Anti-USD Alliance

    Authored by Jeff Brown via The Saker blog,

    Pictured above, the currency symbols for the old Spanish peseta and the Chinese yuan. Maybe Baba Beijing can synthesize the two of them into a cooling looking petro-yuan logo.

    After 25 years of dreams, planning, rumors and testing, the Chinese petro-yuan is now official. Right now, almost all global oil trade is conducted in US dollars, using two benchmark varieties of crude, West Texas Intermediate and North Sea Brent, as the industry standards. It is no accident that these two benchmarks are based on imperial crude, American and British, and the irony of this is surely not lost on Baba Beijing (China’s leadership).

    China is not selling oil, so the petro-yuan is a futures purchase contract denominated in renminbi for the country to import the stuff. As the world’s biggest importer of hydrocarbons, Baba Beijing has long felt that pricing all its millions of tons of imports should be in its national currency. Why should China pay for Russian natural gas or Venezuelan crude in Western empire’s currency of global financial control, Uncle Sam’s greenback?

    Opinions outside China range from being non-plussed, to claiming it is the most important news in modern financial history, but you would have to search far and wide in Eurangloland (NATO, EU, Israel, Australia and New Zealand) and its heavily censored and suppressed media, to see for yourself. Outside the obligatory statement of fact in financial outlets like the Wall Street Journal, Financial Times, Reuters and Bloomberg, silence from the West’s mainstream media is deafening, as this screenshot below shows, when searching the topic. Only one mainstream article showed up on page #1 of the web search and that was CNBC from 2017. Even just looking for “petro-yuan” gives identical results. It’s a Western media black hole.

    The West’s censorship and suppression of news that reports the truth about China, Russia and Iran is lethally effective. Hitler called it the Big Lie. Eurangloland learned from a master.

    Both end points on the above range of ideas are probably exaggerated. But, the fact that any global oil seller can now buy non-US dollar oil contracts is momentous, for sure. In 1971, Richard Nixon took the US dollar off the gold standard and got OPEC to restrict global hydrocarbon sales to greenbacks. Thus, overnight, the world’s reserve currency was pure fiat money, which is still being kept propped up by the need for the world economy to buy dollars, in order to purchase the most strategic commodity on earth. Here are two ranges of opinion on Nixon’s decision (from this to this).

    Many people don’t want to acknowledge that their decision to switch from the US dollar to the euro, by Iraq’s Saddam Hussein and Libya’s Muammar Gaddafi, had a lot to do with their countries being invaded, plundered, destroyed, and then they being killed in a highly humiliating and public fashion. In both cases, once they made the switch, it was just months before they were sacked.

    Other, more powerful oil producers have already ditched the greenback, but Western empire only knows how to prey on weaker states, like Grenada, Panama, Serbia, Africa and the like. Iran has already stopped using the US dollar, as has Russia with China, which helps explain the West’s vociferous, self-defeating illegal sanctions and embargos on them.

    Both Iran and Russia make Uncle Sam brown the backside of his red-white-and-blue bloomers, as well as for the Zionist state of Israel. I don’t even have to mention Eurangloland’s white knuckle fear of China. The China-Russia-Iran anti-dollar alliance versus the West is causing the latter’s elites to suffer from extreme geopolitical dysentery. Vulnerable, and it has to be said gullible Iraq and Libya, yes – but this towering trio not so much, as they are two of the world’s biggest petro-exporters next door to the biggest importer, and all are armed to the teeth with high-tech military hardware. When you look at the map below, it graphically shows how ridiculous it is for these three players to do business in dollars. New York and Washington are so far, far away.

    Whatcha gonna do about it, Eurangloland? There’s not a damn this you can do, short of destroying humanity and the world. Sadly, there are many psychopaths in Washington, Brussels, London and Paris who would prefer that, than accept imperial collapse.

    As usual, you have to go outside the Great Western Firewall and its propaganda Big Lie, to see the real world. For those who want to delve deeper, RT has done an informative series of articles and the South China Morning Post (SCMP) has done a couple of good ones.

    RT:

    https://www.rt.com/business/422314-petro-yuan-futures-dollar-death/
    https://www.rt.com/business/422448-china-oil-futures-outstrips-brent/
    https://www.rt.com/business/422472-russia-china-petro-yuan/
    https://www.rt.com/business/422776-trade-war-petro-yuan/
    https://www.rt.com/business/422838-petro-yuan-dollar-gaddafi/
    https://www.rt.com/business/423461-petro-yuan-us-dollar-oil/

    SCMP:

    http://www.scmp.com/business/global-economy/article/2139646/chinas-yuan-denominated-oil-futures-what-took-you-so-long
    http://www.scmp.com/comment/insight-opinion/article/2139781/yuan-denominated-oil-futures-mark-significant-move

  • US Futures Spike As Xi Pushes Globalization Agenda, Vows To Open China To The World

    It seems the machines never sleep.

    Before China’s Xi had even uttered a word – in war or peace – Nasdaq futures were ramping up 1% from the cash close and the S&P and Dow following… And once it was clear that Xi was not going to drop another trade war tape bomb, futures extended gains to the highs of the day session.

    What futures loved was the series of traditionally hollow promises from Xi including:

    • promise to open up China to the world and expand imports
    • “work hard” to import more products that are needed by China’s people
    • implement major opening up steps,
    • lower auto and auto product import tariff later this year, open sector to higher foreign ownership
    • release a measures to broaden market access
    • expand the opening of China’s economy
    • push forward economic globalization
    • relax market threshold, widen access to market; take major measures in opening and sharply widen market access
    • implement financial and insurance market opening measures
    • strengthen IP protection for foreign firms (to restructure IP bureau

    Then there were the ideological vows:

    • China reform and opening will definitely succeed, world should push for free trade
    • Cold war mentality is out of place, its a zero sum game, isolationism will hit walls
    • Urges dialog as only way to resolve disputes
    • Says states must refrain from seeking dominance
    • Need to uphold multilateral trading system

    Incidentally, many if not all of these promises had been made previously, most extensively during last year’s Party Congress. In the meantime, the only real change was Xi upgrading himself from mere president and crowning himself emperor for life.

    Never one to dig too deep between the lines, algos loved the speech and the result has been a vertical lift in risk-assets:

    Now where have we seen that kind of vertical ramp before.. and what happened next?

    Xi’s speech is being interpreted as somewhat globalist in nature as he plays down tensions and calls for ‘free trade’…

    • *CHINA’S XI SAYS COLD WAR MENTALITY IS OUT OF PLACE
    • *CHINA’S XI SAYS DIALOGUE IS THE WAY TO RESOLVE DISPUTES
    • *CHINA’S XI SAYS SHOULD PUSH FOR FREE TRADE
    • *CHINA’S XI CALLS FOR UPHOLDING MULTILATERAL TRADING SYSTEM
    • *XI SAYS GLOBALIZATION MUST BE MORE OPEN, INCLUSIVE
    • *XI SAYS TO EXPLORE SETTING UP FREE TRADE PORTS
    • *CHINA TO REDUCE TARIFF ON AUTO-RELATED PRODUCTS: XI
    • *XI SAYS HOPES COUNTRIES WILL LOWER CURBS ON HIGH-TECH TRADE

    And a direct jab at Washington:

    • *CHINA’S XI SAYS STATES MUST REFRAIN FROM SEEKING DOMINANCE
    • *XI SAYS CHINA WON’T BE THREAT TO WORLD, EXISTING GLOBAL SYSTEM

    Then Xi heads down the comedy road:

    • *XI SAYS CHINA WON’T SEEK SPHERES OF INFLUENCE (apart from building islands in the Pacific)

    Many on the sellside agreed with the algos and said Xi’s speech marked de-escalation of trade war risks:

    According to Trinh Nguyen, economist at Natixis, Xi’s speech suggests a conciliatory tone with some concession towards market access. Question remains as to how much of the proposals will take place, and whether that’s enough to appease U.S. President Donald Trump. Still, markets will see Xi’s remarks as positive which will help to lower the risks. “Clearly this is positive for EM Asian FX, especially those closest to the China-U.S. trade spat.”

    An almost identical take from First Shanghai Securities strategist Linus Yip, who said that “Xi’s speech sends a positive signal to the market since he backs globalization and the opening up of China market,” although concern over trade disputes remains, as Xi is talking about the long-term picture.

    Alan Richardson, a fund manager at Samsung Asset Management said that Xi’s comments are positive for globalization but they don’t address Donald Trump’s immediate task of reducing the trade deficit with China.

    Some were downright skeptical, and echoed our own perspective, noting that Xi was not at all as conciliatory as the markets made him out to be:

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

    For now, and at least until the next Trump tweet, outburst, or Mueller raid, it’s risk is on in US markets (but China’s tech heavy Chinext is down over 1%) as it seems no news is good news in trade wars.

    Offshore Yuan strengthened

    Live feed below:

  • Goldman Dodges MiFID Regulation By Recreating Dark Pools Under A New Name

    It wouldn’t be the investment banking industry if large investment banks weren’t constantly thinking of new schemes to skirt regulation for monetary benefit. Which is why it should come as no surprise to anyone that Goldman Sachs has already created, and is likely working on fine-tuning, a method for skirting dark pool trading rules that have been established in Europe.

    That’s right, folks. Forget about “dark pools“ and say hello to “stock auctions”. What is the point of “stock auctions”? Basically to be able to place dark pool trades – where orders are kept “off the market” and quiet, almost the exact same way dark pool trades happen. But by giving these transactions a new name, Goldman Sachs thinks it has found a “work around” for MiFID II rules. Bloomberg reported on the emergence of these new auctions this morning, stating:

    Goldman Sachs Group Inc. is taking on the exchanges to win the business of fund managers eager to keep their stock trades hidden in the era of MiFID II price transparency.

    The bank has set up a so-called periodic auction service that matched its first trades on March 21, allowing investors to buy and sell shares without tipping their hand to the rest of the market. Exchanges began offering the service earlier. Europe’s largest dark pool, run by Cboe Global Markets Inc., is now doing more business through periodic auctions than it is through its dark markets.

    For those who are really looking to have a laugh today, Goldman states that these auctions actually make trading more transparent.

    “The launch represents the first bank-led periodic-auction book,” David Shrimpton, a managing director at Goldman Sachs, said by email. “The product will enable our clients to trade in a fair, multilateral and transparent environment.

    Only in the world of Goldman Sachs would brokering orders off of major exchanges for the purpose of keeping them confidential be more transparent.

    The article continued, likely rightfully suggesting that these “auctions” will grow in size and frequency as demand for dark pool trades continues, despite the regulation:

    Periodic auctions are increasingly seen as a way of sidestepping MiFID II’s curbs on dark trading. UBS Group AG will follow Goldman Sachs with its own service later this month, a spokeswoman said. Both firms are reacting to demand from their biggest customers. Fund managers need to complete their trades without moving share prices against themselves.

    The auctions are coming to the fore because 755 European stocks are already banned from trading in dark pools, which hide orders until they have been matched. More names are likely to join that list when the European Union’s markets regulator updates it after the close of trading on Monday.

    “Periodic-auction volumes will continue to increase,” said Mark Hemsley, chief executive officer of Cboe’s European arm. “The flipside is that our competitors are trying to get their own offerings out.”

    MiFID II was introduced in Europe because regulators found “under intense lobbying from stock exchanges — that dark trading reduced the efficiency of stock markets as a whole. Fund managers, however, still need ways of trading that keep all the best bits of dark pools, so trading venues and banks alike have reacted by coming up with new ways to trade. Rather than driving trading volumes to the stock exchanges, MiFID II may have forced the exchanges’ rivals to become more innovative.”

    We’ve already offered our prediction that MiFID would sever off independent research in this article out earlier this year. Now it looks like its being skirted as easily as it was implemented. 

    Once again we are faced with several follies of government regulation. First off, investment banks and those with the resources usually always find methods around them. Second off, they are obviously suppressing supply of a method for trading and transacting securities that is still in demand. Third, the government has to put its resources directly up against those of investment banks in order to regulate effectively, and this costs everybody, but especially taxpayers, money.

    Though difficult to say if the regulators will have a next move in this game of “dark pool regulation chess” they are playing, one thing is for sure – we’re witnessing obvious blow-back to government overreach and regulation where demand is present. 

    We will keep our eyes open to see if European regulators volley back against these “auctions”. 

  • Name That 'Bank' – Cheap Debt, High Leverage, & The Largest Margin Loan Ever

    Via Grant’s Almost Daily,

    The Son also rises

    This bull-market avatar is doubling down: Japan’s SoftBank Group Corp. (9984 on the Tokyo Exchange and SFTBY on the U.S. Pink Sheets) announced on Friday that it has secured an $8 billion margin loan from a consortium of investment banks backed by its stake in China’s Alibaba Group Holding, Inc. (BABA on the NYSE).

    This was one for the record books. Bethany Knight of Riverside Risk Advisors LLC told Bloomberg that: “To my knowledge, I would agree that $8 billion is the largest margin loan ever.” Bloomberg notes that the loan helps SoftBank move closer to an initial public offering of its domestic telecom business Softbank Corp., which had already been utilized as collateral for prior loans. “A successful IPO – possible only after the division proves its independence by canceling debt guarantees – could help the parent raise capital and relieve some of its debt burden.”

    On March 9, SoftBank launched a debt exchange offer, presenting its creditors the opportunity to swap existing bonds for new notes due in 2028 for a 100 basis point consent fee.  Covenant Review, an independent credit research firm, observed that this was no act of corporate generosity. Holders of existing notes are protected by a covenant stating that if SoftBank loses its investment grade status its telecom subsidiary, Softbank Corp., will guarantee the debt. That protection is set to be eliminated.

    So when investors purchased the Existing Notes, they knew that at worst either the Existing Notes would be rated investment grade or the Softbank Corp. guarantee would remain in place. If the Proposed Amendments are successful, then holders would have swapped that protection for the consent fee – and the Existing Notes could well be left with neither an investment grade rating nor a continuing guarantee from Softbank Corp. (or any other subsidiaries for that matter).

    Longtime observers of SoftBank’s charismatic and brilliant CEO Masayoshi Son (who is often compared to Warren Buffett) could hardly have been surprised by this latest bold corporate maneuver. 

    Son, who weathered a 99% loss in Softbank shares following the bursting of the late-1990’s tech bubble, has taken full advantage of the easy money and tech-happy market conditions which have pervaded in the post-2009 era. Softbank shares have advanced by 442% over the past nine years in yen terms (20.7% annualized) outpacing the Nikkei’s 142% gain (11% annualized) over that period.

    That impressive rebound, burnished by timely investments in Yahoo! Japan, and the aforementioned Alibaba, has coincided with a flurry of deals, some under the umbrella of SoftBank’s buyout arm, the $100 billion Vision Fund. Last February, SoftBank bought the Fortress Investment Group for $3.3 billion, a hefty 38.6% premium. On Aug. 24, the fund paid $4.4 billion for a minority stake in private concern WeWork Companies, Inc. (founded in 2010 and now the second largest private office tenant in Manhattan). Softbank has also made substantial investments in ride-sharing unicorns Uber Technologies, Inc.  and its Chinese peer, Didi Chuxing Technology Co. (which is preparing to commence operations in Mexico, according to Caixin, directly challenging its fellow SoftBank portfolio company).

    #1 conglomerate. Source: Softbank presentation PowerPoint slide from Feb. 7

    Masa Son’s spendthrift ways haven’t always gone over so smoothly in the company C-suite. On Feb. 26, the Wall Street Journal shed light on the friction between Son and SoftBank directors who don’t always share his deal-making enthusiasm.

    Shigenobu Nagamori says he objected when Mr. Son told his board in 2016 that he wanted to pay $32 billion from Arm Holdings PLC. The U.K. chip-design firm was worth a 10th of that, Mr. Nagamori, then a Softbank outside director, says he told Mr. Son. Mr. Son paid it anyway.

    To strike quickly, [Son] sometimes commits to investments before getting approval from his fund’s investment committee, some of these people say. And he often spars with his executives and board members over his proposals until they are convinced or acquiesce.

    “I’ve opposed almost all of Mr. Son’s proposed investments,” says SoftBank director Tadashi Yanai, president of Fast Retailing Co., operator of Uniqlo clothing stores. Instead of acting like a speculative investor, he says, Mr. Son should focus on “real business.”

    A month later, the Journal reported that the dynamics among SoftBank insiders have escalated beyond straightforward strategy disagreements. Specifically intriguing was the mysterious origins of a shareholder campaign to discredit a pair of senior executives at the company, including one (Nikesh Arora), whom the WSJ described as a one-time heir apparent to Son.

    At the time, SoftBank couldn’t figure out who was behind the campaign, which the company said was based on false allegations of impropriety and which a board member later called “sabotage.” Both men denied wrongdoing and said they were victims.

    People with knowledge of the matter said Alessandro Benedetti, an Italian private-equity investor, was a central figure in that campaign. They said he told associates he was working, in part, for the benefits of a SoftBank insider.

    Excessive leverage and value-destructive deals, not palace intrigue, was the crux of a Dec. 15, 2017 bearish assessment of Softbank found in the pages of Grant’s. Total debt reached $154 billion as of Dec. 31, 2017 on a consolidated basis, up from $42 billion on Dec. 31, 2013. Son’s 2013 purchase of U.S. telecom operator Sprint Corp. (SoftBank paid $22 billion for an 83% stake. Sprint’s current market cap is less than $21 billion) is one potential source of trouble, an interruption of Alibaba’s charmed existence is another.  The conclusion drawn by Grant’s was evident in the piece’s headline, “Epitome of the cycle:”

    Mix the CEO’s exuberance with cheap debt, high leverage and record asset values. Add the excitement of today’s startling advances in robotics and artificial intelligence. Combine with the karmic report that [Saudi Crown Prince Mohammad bin Salman], the Vision Fund’s No. 1 limited partner, is also the rumored buyer of that $450 million road-show da Vinci. Totting them all up, what do you have? Perhaps a corporation destined to read about itself on page one of The New York Times – and not in a flattering way. 

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Today’s News 9th April 2018

  • The Richest 1% Will Own Two-Thirds Of Global Wealth By 2030, Report Finds

    Back in November, Credit Suisse highlighted an alarming – yet altogether unsurprising – milestone in the increasing concentration of global wealth that has been perhaps the most influential force behind the populist revolts that rocked the US in 2016 and have continued to unfurl across Europe. According to the Swiss bank’s annual “global wealth pyramid,” for the first time, the wealthiest 1% of the world’s population had accumulated more than half of its aggregate household wealth.

    Credit Suisse’s researchers describe in stark terms how global wealth inequality had actually improved somewhat in the years between the start of the new millennium and the financial crisis – but in the years after, the gap between the world’s richest and poorest individuals widened dramatically, one of the most pernicious aspects of the Fed and the global cabal of central banks pumping easy money into the global financial system.

    Pyramid

    The researchers said that “our calculations show that the top 1% of global wealth holders started the millennium with 45.5% of all household wealth. This share was about the same until 2006, then fell to 42.5% two years later. The downward trend reversed after 2008 and the share of the top one percent has been on an upward path ever since, passing the 2000 level in 2013 and achieving new peaks every year thereafter. According to our latest estimates, the top one percent own 50.1 percent of all household wealth in the world.”

    But while CS’s report was unequivocally dire, a recent report published by the UK Parliament is even more harrowing.

    According to the Guardian, projections produced by the House of Commons library suggest that the top 1% of the world’s wealthiest individuals will own roughly 64% of the planet’s wealth by 2030.

    An alarming projection produced by the House of Commons library suggests that if trends seen since the 2008 financial crash were to continue, then the top 1% will hold 64% of the world’s wealth by 2030. Even taking the financial crash into account, and measuring their assets over a longer period, they would still hold more than half of all wealth.

    Since 2008, the wealth of the richest 1% has been growing at an average of 6% a year – much faster than the 3% growth in wealth of the remaining 99% of the world’s population. Should that continue, the top 1% would hold wealth equating to $305tn (£216.5tn) – up from $140tn today.

    Analysts suggest wealth has become concentrated at the top because of recent income inequality, higher rates of saving among the wealthy, and the accumulation of assets. The wealthy also invested a large amount of equity in businesses, stocks and other financial assets, which have handed them disproportionate benefits.

    The study was the brainchild of Liam Byrne, a former Labour cabinet minister, who hopes it will factor into the discussion when the financial chiefs of the world’s largest countries meet in Buenos Aires late this year for a G-20 summit.

    “If we don’t take steps to rewrite the rules of how our economies work, then we condemn ourselves to a future that remains unequal for good,” he said. “That’s morally bad, and economically disastrous, risking a new explosion in instability, corruption and poverty.”

    Unfortunately, the public is extremely sensitive to growing wealth disparity, and polls show most people in the UK are growing increasingly cynical about the prospects for change. Already a plurality of Britons believe the superrich have more influence and power than national governments.

    New polling by Opinium suggests that voters perceive a major problem with the influence exerted by the very wealthy. Asked to select a group that would have the most power in 2030, most (34%) said the super-rich, while 28% opted for national governments. In a sign of falling levels of trust, those surveyed said they feared the consequences of wealth inequality would be rising levels of corruption (41%) or the “super-rich enjoying unfair influence on government policy” (43%).

    Indeed, even if the incomes of the wealthiest individuals were frozen at 2017 levels, their share of the world’s wealth would still expand thanks to returns on their investments, according to Danny Dorling, a professor at Oxford.

    “Even if the income of the wealthiest people in the world stops rising dramatically in the future, their wealth will still grow for some time,” he said. “The last peak of income inequality was in 1913. We are near that again, but even if we reduce inequality now it will continue to grow for one to two more decades.”

    One Tory MP quoted by the Guardian pointed out that while wealth inequality remains a problem, liberal capitalism has lifted more people out of poverty than any other system of government. Though this overlooks the fact that, while this holds true in most of the biggest developing countries, in the developed world, the working and middle class are at risk of seeing their standard of living decline vs. that of their parents’ generation.

    George Freeman, the Tory MP and former head of the prime minister’s policy board, said: “While mankind has never seen such income inequality, it is also true that mankind has never experienced such rapid increases in living standards. Around the world billions of people are being lifted out of poverty at a pace never seen before. But the extraordinary concentration of global wealth today – fuelled by the pace of technological innovation and globalisation – poses serious challenges.

    “If the system of capitalist liberal democracy which has triumphed in the west is to pass the big test of globalisation – and the assault from radical Islam as well as its own internal pressures from post-crash austerity – we need some new thinking on ways to widen opportunity, share ownership and philanthropy. Fast.”

    Demands for action from the group include improving productivity to ensure wages rise and reform of capital markets to promote greater equality.

    While this sounds like a plausible plan, the obstacles to it being put into practice are myriad – including opposition from corporations and the wealthy, who might prove reluctant to part with what they’ve gained. And even once central banks retract their stimulus and securities valuations inevitably fall, it remains unclear whether this trend can ever be reversed.

    One thing’s for sure: While pundits have been eager to call the end of the populist wave, as long as the wealth divide continues to widen, anger toward the status quo will continue to metastasize.

  • UK: Funding Textbooks That Teach Children To Blow Themselves Up

    Authored by Douglas Murray via The Gatestone Institute,

    In 2016, a study carried out by the Organisation for Economic Co-Operation and Development (OECD) found that for literacy in the developed world, England ranks dead last. The same study also stated that for numeracy in the developed world, England ranks second-to-last. Even among graduates from English universities, the OECD study found, one in ten had literacy or numeracy skills that were classified as “low”.

    These results are astonishing, not to mention shaming. They reflect decades of misdirection in British education, including the misdirection of resources. Understandably, successive governments complain about a lack of resources. But all of those laments only serve to highlight the strangeness of Britain’s latest priorities in funding education.

    This past weekend it emerged that last year the British government funnelled £20 million to Palestinian schools. A review by the Institute for Monitoring Peace and Cultural Tolerance in School Education (IMPACT-se) found that these revenues go towards funding a curriculum which omits teaching peace, promotes the use of violence — specifically jihad — and encourages martyrdom. An analysis of the textbooks used in Palestinian schools funded by the UK government — using UK taxpayers’ money — found that these textbooks, which come from the Palestinian Authority (PA), “exerts pressure over young Palestinians to acts of violence.”

    A science textbook intended for 12-year-olds, for example, claims to teach them Newton’s second law of motion in the following way:

    “During the first Palestinian uprising, Palestinian youths used slingshots to confront the soldiers of the Zionist Occupation and defend themselves from their treacherous bullets. What is the relationship between the elongation of the slingshot’s rubber and the tensile strength affecting it?”

    Another textbook, which is meant to be used for teaching arithmetic to 9-year-olds takes a highly local approach to the matter. Math lessons as provided by the PA — courtesy of the UK government — teach Palestinian children addition by asking them to calculate the number of “martyrs” in various Palestinian uprisings.

    Elsewhere, the study found that social studies books included images of children in their school rooms with an empty desk fitted with a sign reading “martyr”. Repeatedly the textbooks refer to the “Occupation”, to “Zionist Occupation”, “Zionists” and much more, all of which perpetuates the notion that Israelis are “invaders” and “oppressors”. In other words, these textbooks are clearly and consistently intended to indoctrinate a new generation of Palestinian children to hatred of their neighbours. Any government genuinely interested in promoting peace would withdraw funding from any entity — wherever in the world it was — which taught violence as such a core part of its curriculum.

    The British government, however, has long been strangely shameless when it comes to funding the Palestinian Authority. The British government, for instance, hides behind the claim that the PA’s authorised textbooks for use in Palestinian schools have got better in recent years. In fact, this IMPACT-se report find precisely the opposite. Last year, the PA launched a much-vaunted new school curriculum for children in grades 5-11. Just last week the Minister of State for International Development, Alistair Burt, stated that “all of their [the PA’s] schools in the West Bank are using the revised 2017 PA curriculum.”

    The IMPACT-se investigation revealed, however, that “radicalization is pervasive across this new curriculum.” And not just pervasive, but pervasive “to a greater extent than before.” The study found that in textbooks which pretend to be teaching “equal rights'”, girls are encouraged to sacrifice their lives. A textbook aimed at 5th grade children (that is, children aged 10) teaches that “drinking the cup of bitterness with glory is much sweeter than a pleasant long life accompanied by humiliation.” Another textbook urges that “Giving one’s life, sacrifice, fight, jihad and struggle are the most important meanings of life.”

    In a statement, in response to the Sunday Times (UK), which broke the story, Alistair Burt, MP, and Minister of State for the Middle East at the Foreign and Commonwealth Office and Minister of State at the Department for International Development, revealed that the UK taxpayer continues to support this radical curriculum of incitement. He admitted that the UK taxpayer funds the wages of 33,000 teachers in the West Bank, who use these curriculums. “UK-funded public servants and teachers… are therefore involved” he said. Instead of investigating these findings or announcing the immediate cessation of funding to the Palestinian Authority until such a time as it stops preaching incitement to another generation of Palestinian children, the UK’s Department for International Development responded to the findings with a typical form of bureaucratese:

    “Our support is helping around 25,000 young Palestinians go to school each year. The UK government strongly condemns all forms of violence and incitement to violence.”

    Well, the UK government clearly is not so opposed to “all forms of violence and incitement to violence” that it isn’t happy to continue to use millions of pounds of UK taxpayer money to assist the PA in radicalising and inciting Palestinian children.

    Pictured: A screenshot from the Sunday Times article exposing the British government’s funding of a Palestinian curriculum which promotes the use of violence — specifically jihad — and encourages martyrdom.

    The Department for International Development also announced that it was now “planning to conduct a thorough assessment of the Palestinian curriculum and evidence”. It added that “if we find evidence of material which incites violence, we will take action.” Evidence has been given to it in abundance, not just now but for years.

    This is the true scandal for Britain: that while the UK government fails to pump the resources needed into helping young British children to grow up literate and numerate in Britain, it pumps millions of pounds into the Palestinian Authority to make sure that young Palestinian children think that a career of violence is a career worth pursuing. While failing to help British children grow up, the UK government helps Palestinian children to blow themselves up. It is a horrible legacy for any country, but for Britain, a shameful one.

  • Lobbying For Slavery In Brazil

    Some 10 percent of Brazil’s top politicians received donations by companies entangled in scandals involving modern day slavery. As Statista’s Patrick Wagner notes, even though donations to politicians are not illegal in Brazil, the money received is of questionable origin.

    Donators include JBS – the world’s biggest meat producer – and other enterprises that can be found on Brazil’s ‘dirty list’ for slave labor. Over 41 percent of all recipients are part of the influential ruralist caucus, a congressional faction keen on revoking land rights of indigenous communities and limiting efforts to combat slavery.

    The following chart shows the top beneficiaries and their party affiliation.

    Infographic: Lobbying for Slavery in Brazil | Statista

    You will find more infographics at Statista

    A total of 16 percent of all parliamentary deputies of the Brazilian Democratic Movement (MDB), the party of President Michel Temerand impeached president Dilma Roussef received said donations. The leftist Workers’ Party (PT) of former president Lula da Silva, who is currently facing imprisonment due to corruption, even has received a stunning 20 percent of donations from companies on the ‘dirty list’.

  • How Gun Control Laws For "Mentally Ill" Could Disarm Those Who Question Authority

    Authored by John Vibes via The Free Thought Project,

    In the growing debate surrounding the natural right to self-defense, one of the most popular proposed methods of gun control has been restrictions on gun-ownership for those who are deemed to be mentally ill.

    This is a measure that is often suggested by liberals and conservatives alike, but it is important to stop and consider what something like this might entail.

    When any collective group is banned from owning a gun, they are effectively turned into second-class citizens. In the case of mental illness, that classification is so vague and open to interpretation that it could possibly be applied to over half of the population, depending on which criteria you use.

    Mental illness can be very hard to identify since there is no kind of official test for most conditions, most people are diagnosed according to the subjective opinions of the doctors that observe them. Even the most severe conditions, like schizophrenia, can be very difficult to identify and is often misdiagnosed.

    Psychiatric drugs are another possible factor that could get someone marked by the government as mentally unstable, but a classification like this would allow for large portions of the US population to be disarmed.

    According to a 2016 study by JAMA Internal Medicine, more than 1 in 6 Americans are on some type of psychiatric drug. This is not to mention the large number of people who report symptoms of depression or anxiety and don’t take medication.

    A policy like this could also allow the government to disarm dissidents and political enemies. As psychiatry became more influential towards the middle of the 20th century, rulers around the world began using “mental illness” as an excuse to lock away anyone who might disagree with them. The Soviet regime became notorious for this practice by labeling all political dissidents as “mentally ill” so they could be locked away in institutions where they were no threat to the establishment.

    The United States government also has a long history of slapping unruly citizens with the mark of mental illness. President Franklin Roosevelt famously called his detractors “the lunatic fringe,” and this type of attitude towards activists has carried on in the halls of government to this day.

    In the dictionary of mental illnesses, known as DSM-5, published by the American Psychiatric Association, there is actually a condition listed for people who have a problem with authority. Oppositional Defiant Disorder is a name that psychiatrists made up to identify children who won’t do what they are told, and now even adults are being diagnosed with this condition as well.

    Meanwhile, politicians and mainstream media are quick to label anyone who questions the official narrative as a “conspiracy theorist,” a term that has been falsely associated with mental illness in pop culture.

    A study in 2017 set out to determine whether or not believing in conspiracy theories was a form of mental illness. As expected they found the exact answer that they were looking for, people who don’t trust the government and mainstream media are crazy, and suffering from something called illusory pattern perception.

    There is another dilemma that arises in the discussion of disarming people who are accused of having a mental illness, and that is the fact mentally ill people are 10 times more likely to be victims of violence than the rest of society because they are often seen as easy targets.

    Complicating matters further is the fact that these people can’t depend on the police to help them in these situations, as studies have shown that the mentally ill are 16 times more likely to be killed by a police officer than the average person.

    According to the Virginia-based Treatment Advocacy Center, a minimum of 1 in 4 fatal police encounters ends the life of an individual with severe mental illness.

    To prevent mentally ill people from owning firearms is a severe form of “ableist” discrimination, and also opens the door for nearly anyone to be classified as mentally ill.

    There are sometimes extreme cases where a person’s mental instability is creating a dangerous situation for the community, like the recent Parkland shooting, for example. In this case, the shooter had a known history of violence, regularly made threats and was visited by police on numerous occasions because of his threatening behavior. In cases like this, it is reasonable to keep an eye on someone, restrict their access to firearms, or possibly quarantine them from society in the most extreme situations.

    There are many laws on the books currently would have allowed the FBI or local police to intervene in their initial encounters with the shooter, but they decided that a student known for violent outbursts and talking about carrying out school shootings was not worth looking into.

    As TFTP reported earlier this month, there is a law on the books known as the Extreme Risk Protection Order or ERPO, which went into effect in June of 2017. This law is used when a person is considered an “extreme” threat as reported by police and family members. An ERPO must be approved by a judge and only after this person is proven to be a danger to themselves or others can police move in to confiscate their weapons.

    These types of targeted approaches specifically aimed at individuals who are a known source of violence in the community would do far more to prevent tragedies from happening, than a wide-reaching law that could threaten the rights and safety of millions of innocent gun owners.

  • Maryland House Passes $5BN Incentive Package Meant To Lure Amazon's HQ2

    In one of the most aggressive attempts to cajole Amazon into selecting their state as the location for the e-commerce giant’s second headquarters, the Maryland General Assembly just passed a bill offering the company a $5 billion incentive package should Amazon choose to settle in Maryland’s Montgomery County.

    Montgomery County is competing with Washington DC, Northern Virginia and 17 other areas that made Amazon’s HQ2 “short list”, which was released earlier this year. Specifically, Amazon is eyeing the site of the former White Flint Mall.

    Bezos

    The “Promoting ext-Raordinary Innovation in Maryland’s Economy,” or PRIME (yes that misplaced capitalization was intentional) would require Amazon to create at least 40,000 qualified jobs (with an average comp of at least $100,000). The company would also need to spend $4.5 billion on “eligible costs” like capital projects, the Baltimore Business Journal reported. 

    After passing the House, the bill now passes to the desk of Maryland Gov. Larry Hogan.

    As lawmakers see it, if Amazon chooses Montgomery County, the incentives will be worth the 50,000 jobs the company could bring to the county. If Amazon doesn’t, the state loses nothing.

    Montgomery County, specifically a site encompassing the former White Flint Mall, is the only Maryland site on Amazon’s HQ2 short list. Maryland is competing with Washington, D.C., Northern Virginia and 17 other areas across the country for the 50,000 jobs and $5 billion investment the online retail and web services giant has promised with its second headquarters. Seattle-based Amazon is expected to fill at least 8 million square feet as it phases in HQ2 over the next two decades.

    However, while the bill found broad support among Democratic state legislators, Republicans vehemently opposed it on the grounds that it amounted to a corporate giveaway. A legislative study found the bill would cost the state $5.5 billion in total revenue through 2054 – while the county would lose nearly $1 billion. However, that analysis doesn’t factor in any revenue generated by Amazon.

    Opposition to the bill, largely from Republicans, was intense. They described the incentive — to include roughly $3 billion in property, income and sales tax credits and $2 billion in transportation improvements — as a “bribery package,” an “expensive pig in a poke,” as “craziness,” as “corporate welfare,” and as a “gold mine” for one of the wealthiest companies, led by one of the wealthiest people, in the world.

    “They need economic stimulus like a fish needs a bicycle,” said Del. Herb McMillan, R-Anne Arundel.

    However, a private study produced by the Sage Policy Group at the state’s request found that Amazon’s headquarters could pump $7.7 billion in wages into the state while producing $17 billion in increased economic activity.

    Amazon is expected to announce its HQ2 later this year, but there have been hints that the headquarters could wind up either in Montgomery or somewhere else in the broader Washington, DC area.

    A surge in web traffic to an article about an environmental award won by Arlington County from an internal Amazon intranet led to speculation that Maryland could be the company’s pick – or at least it would be a strong contender.

    And another study found that the Washington DC area would be the most sensible pick for Amazon.

  • Celente: "Murderers & Thieves Sold Out America"

    Via Greg Hunter’s USA Watchdog blog,

    Renowned trends researcher Gerald Celente says the trade war President Trump is starting against China must be fought for America to survive. Celente explains,

    “We have lost 3.5 million jobs (to China).  Some 70,000 manufacturing plants have closed.  Why would anybody be fighting Trump to do a reversal of us being in a merchandise trade deficit of $365 billion?  Tell me any two people that would do business with each other and one side takes a huge loss and keeps taking it…

    So, why would people argue and fight and bring down the markets because Trump wants to bring back jobs and readjust a trade deficit that, by any standard, is destroying the nation?” 

    Who’s to blame for the lopsided trade deficits destroying the middle class of America? Look no further than the politicians and corporations buying them off.  Celente charges,

    They sold us out.  The European companies and the American companies sold us out, and the people fighting Trump are also the big retailers because they’ve got their slave labor making their stuff over there.  They bring it back here and mark up the price, and they make more money.  If they have to pay our people to do that work, they have to pay them a living wage and they can’t make enough profit.  That’s who is fighting us…

    You go back to our top trend in 2017, and it was China was going to be the leader in AI (artificial intelligence) now and beyond, and that is exactly what happened.  All the corporations have sold us out. . . .The murderers and the thieves sold out America.”

    Celente thinks the odds are there will not be a financial crash in 2018 “because they are repatriating all that dough from overseas at a very low tax rate and because of the tax cuts from 35% to 21%. These are the facts.  In the first three months of this year, there have been more stock buybacks and mergers and acquisitions activity than ever before in this short period of time because of all that cheap money going back into the corporations.  That’s what’s keeping the markets up.”

    Just because the stock market is near all-time highs doesn’t mean there is no risk from a black swan. Celente says,

    “I want to tell everyone what our major signal that we are watching closely that is going to determine where the markets are going.  It’s the signal.  It’s a signal that you will know whether to bail out or stay in, and that’s gold prices.  With all of this volatility going on, gold prices have not moved much.  They are still stuck in the $1,300 to $1,350 (per ounce) range.  Even on Friday, with all the volatility, gold only moved up a couple of bucks.  That is the indicator to watch, and here is our forecast.  Gold has to break above $1,385 per ounce.  It has been unable to get near there

    The next big number will be $1,450.  When it solidifies over that, we forecast a jump to the $2,000 range.  Gold is the ultimate safe haven asset.  It has not been acting like that during this market shift.

    On the recent poll where 77% of people thought the MSM was putting out so-called “Fake News,” Celente says, “It’s not only “Fake News, it’s junk news, and that is why people are tuning out.” Expect the trend to continue.

    Join Greg Hunter as he goes One-on-One with Gerald Celente, Publisher of “The Trends Journal.”

  • U.S. Air Force's Clandestine X-37B Military Space Plane Marks 200 Days In Orbit

    The U.S. Air Force’s unmanned X-37B space plane has marked its 200th day in orbit on a clandestine mission. 

    Known as Orbital Test Vehicle-5 (OTV-5), the latest mission began September 7, 2017 after it was launched into space atop a SpaceX Falcon 9 booster from NASA’s Kennedy Space Center in Cape Canaveral, Florida.

    According to Air Force officials, one payload flying on OTV-5 is the Advanced Structurally Embedded Thermal Spreader, or ASETS-11, of the U.S. Air Force Research Laboratory (AFRL). This cargo is testing experimental electronics and oscillating heat pipes for long durations in the space environment. –space.com

    The Air Force has not disclosed how long the unpiloted, reusable craft will remain in orbit, however experts have said it’s likely to land at the Kennedy Space Center’s Shuttle Landing Facility, where the OTV-4 mission landed on May 7, 2007 – a first for the program, as previous missions all ended with a tarmac touchdown at California’s Vandenberg Air Force Base. 

    The X-37B has been and remains a technology demonstrator,” said Joan Johnson-Freese, a professor in the National Security Affairs Department at the Naval War College in Newport, Rhode Island. 

    “Given that most space technology is dual-use, with the ever-increasing sway toward warfare in space, it’s likely that the more militaristic uses of the space plane will be pursued more vigorously, and likely openly given the [presidential] administration’s proclivity toward chest thumping,” Johnson-Freese told Space.com. 

    Milestone Missions via Space.com

    • Each X-37B mission has set a new flight-duration record for the program.
    • OTV-1 began April 22, 2010, and concluded on Dec. 3, 2010, after 224 days in orbit. 
    • The second OTV mission began March 5, 2011, and concluded on June 16, 2012, after 468 days on orbit.
    • OTV-3 chalked up nearly 675 days in orbit before finally coming down on Oct. 17, 2014.
    • And OTV-4 conducted on-orbit experiments for 718 days during its mission, extending the total number of days spent in space for the OTV program to 2,085 days.

    The Air Force Rapid Capabilities Office manages the X-37 project. According to Space.com it is used to perform “risk-reduction experimentation and concept-of-operations development for reusable space-vehicle technologies.” 

    The space drone has a payload bay about the size of a pickup-truck bed, which can be outfitted with a robotic arm. X-37B has a launch weight of 11,000 lbs. (4,990 kilograms) and is powered on orbit by gallium-arsenide solar cells with lithium-ion batteries.

    The classified X-37B program “fleet” consists of two known reusable vehicles, both of which were built by Boeing. Looking like a miniature version of NASA’s now-retired space shuttle orbiter, the military space plane is 29 feet (8.8 meters) long and 9.6 feet (2.9 m) tall, with a wingspan of nearly 15 feet (4.6 m).Space.com

    The orbital path of the OTV-5 mission has puzzled experts, according to Toronto-based satellite analyst Ted Molczan. 

    “There were indications that OTV-5 went to a significantly higher-inclination orbit than previous OTV missions,” he told Space.com. “There was too little information to narrowly constrain a search.” 

    Molczan said he assisted in one fruitless search, but it was of the roughly 44-degree-inclination orbit implied by the OTV-5 launch’s “Notice to Airmen,” the routine report put out to warn any aircraft pilots who may be near the flight path.

    “The final orbit may be more like 60 degrees,” he said. “If an object is not found within days or a few weeks of launch, then the trail goes cold and discovery depends on a chance sighting.”

  • After Doubling US Debt In 8 Years, Yellen & Furman Fearmonger "A Debt Crisis Is Coming"

    After doubling America’s national debt in the eight short years of President Obama’s reign – expanding benefits for all, and relying on a Federal Reserve with its knee-high jack boot firmly on the throat of interest-rates, thus supressing any derogatory signal among the every day noise – five former chairs of The White House Council of Economic Affairs turned up their hypocrisy dial to ’11’ in a stunning op-ed in The Washington Post tonight, warning of a debt crisis looming due to President Trump’s deficits

    A debt crisis is coming. But don’t blame entitlements.

    Martin Neil Baily, Jason Furman, Alan B. Krueger, Laura D’Andrea Tyson and Janet L. Yellen are all former chairs of the White House Council of Economic Advisers.

    The U.S. unemployment rate is down to 4.1 percent, and economic growth could well increase in 2018. Consumer and business confidence is high. What could go wrong?

    A group of distinguished economists from the Hoover Institution, a public-policy think tank at Stanford University, identifies a serious problem. The federal budget deficit is on track to exceed $1 trillion next year and get worse over time. Eventually, ever-rising debt and deficits will cause interest rates to rise, and the portion of tax revenue needed to service the growing debt will take an increasing toll on the ability of government to provide for its citizens and to respond to recessions and emergencies.

    None of that is in dispute. But the Hoover economists then go wrong by arguing that entitlements are the sole cause of the problem, while the budget-busting tax bill that was passed last year is described as a “good first step.”

    Entitlement programs support older Americans and those with low incomes or disabilities. Program costs are growing largely because of the aging of the population. This demographic problem is faced by almost all advanced economies and cannot be solved by a vague call to cut “entitlements” – terminology that dehumanizes the value of these programs to millions of Americans.

    The deficit, of course, reflects the gap between spending and revenue. It is dishonest to single out entitlements for blame. The federal budget was in surplus from 1998 through 2001, but large tax cuts and unfunded wars have been huge contributors to our current deficit problem. The primary reason the deficit in coming years will now be higher than had been expected is the reduction in tax revenue from last year’s tax cuts, not an increase in spending. This year, revenue is expected to fall below 17 percent of gross domestic product – the lowest it has been in the past 50 years with the exception of the aftermath of the past two recessions.

    All of us have supported corporate tax reform. The statutory tax rate was too high, much higher than in other Organization for Economic Cooperation and Development economies. However, because of deductions and breaks in the tax code, the effective marginal tax rate was similar to the average among competitor economies. The right way to do reform was to follow the model of the bipartisan tax reform of 1986, when rates were lowered while deductions were eliminated.

    Instead, the tax cuts passed last year actually added an amount to America’s long-run fiscal challenge that is roughly the same size as the preexisting shortfalls in Social Security and Medicare. The tax cuts are reducing revenue by an average of 1.1 percent of GDP over the next four years. The Hoover authors minimized the cost of the tax cuts by noting that if major provisions are allowed to expire on schedule — certainly an open question, given political realities — they would amount to “only” 0.4 percent of GDP. Even this magnitude exceeds the Medicare Trustees’ projections of a 0.3 percent of GDP shortfall in Medicare hospital insurance over the next 75 years.

    Just as entitlements are not the primary cause of the recent jump in the deficit, they also should not be the sole solution. It is important to use the right wording: The main entitlement programs are Social Security, Medicare, veterans benefits and Medicaid. These widely popular programs are indeed large and projected to grow as a share of the economy, not because of increased generosity of benefits but because of the aging of the population and the increase in economywide health costs.

    There is some room for additional spending reductions in these programs, but not to an extent large enough to solve the long-run debt problem. The Social Security program needs only modest reforms to restore its 75-year solvency, and these should include adjustments in both spending and revenue. Additional revenue is critical because Social Security has become even more vital as fewer and fewer people have defined-benefit pensions. Medicare has been a leader in bending the health-care cost curve. Reforms to payments and reformed benefit structures in Medicare could do more to hold down its future costs.

    As we focus on the long-run fiscal situation, our goal should be to put the debt on a declining path as a share of the economy. That will require running smaller deficits in strong economic periods — such as the present — to offset the larger deficits that are needed in recessions to restore demand and avoid deeper crises. Last year’s Tax Cuts and Jobs Act turned that economic logic on its head. The economy was already at or close to full employment and did not need a boost. This year’s bipartisan spending agreement contributed further to the ill-timed stimulus. The Federal Reserve will have to act to make sure the economy does not overheat.

    Several years ago, there was broad agreement that responding to the looming fiscal challenge required a balanced approach that combined increased revenue with reduced spending. Two bipartisan commissions, Simpson-Bowles and Domenici-Rivlin, proposed such approaches that called for tax reform to raise revenue as a percent of GDP and judicious spending cuts. Without necessarily agreeing with these specific plans, we believe a balanced approach is the correct one. Start with spending goals based on the priorities of the American people and then set tax policy to realize adequate revenue. The Hoover economists’ advocacy of paying for large tax cuts with entitlement reductions would take the United States in the wrong direction. 

    *  *  *
    So to sum up – everything was awesome before Trump got here, with unemployment low, interest rates low, inflation low, stocks high, and having added more debt to the serfdom-bearing shoulders of future Americans in the last eight years than since the existence of the nation over 200 years ago… But now that The Fed is blindly hiking rates, normalizing its balance sheet and Washington is continuing down its spend-as-if-there’s-no-tomorrow path, suddenly these five disgustingly hypocritical ‘economists’ decide to cry foul over fiscal largesse… and, of course, right before CBO will dump a bucket of ice cold water over Trump’s budget.

    Speechless.

  • Rockefellers Join Soros & Rothschilds In Cryptocurrency Investment Plans

    Despite the collapse in cryptocurrency prices since the beginning of the year (bitcoin is down more than 60% and ethereum down more than 70% from their ATHs), more marquee investors have decided that now is the time to buy in.

    Last week, we noted that George Soros had taken some time out from his battle of wills with Hungarian Prime Minister Viktor Orban to grant one of his underlings approval to begin trading in crypto. Adam Fisher – who oversees macro investing at New York-based Soros Fund Management – has reportedly received internal approval to trade virtual coins in the last few months, “though he has yet to make a wager.”

    Soros’s involvement followed reports last year that the Rothschild family had waded into the space – first by purchasing bitcoin exposure via the Grayscale Bitcoin Trust.

    Their involvement is a sign that regulators around the world might be relaxing their stance toward crypto, as one prominent crypto entrepreneur and investors pointed out

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    Now, the latest bold-faced investor to unveil plans to invest in the space is the Rockefeller family (the descendants of Standard Oil founder John Rockefeller). CoinTelegraph reports that the family’s venture capital fund has partnered with CoinFund to invest in “cryptocurrency and Blockchain business innovation”.

    The news triggered a jump in crypto prices…

    Chart

    Sending bitcoin back above $7,000….

    * * *

    Here’s more, courtesy of CoinTelegraph.

    Venrock, the official venture capital arm of the Rockefeller family, has partnered with crypto investment group Coinfund to support cryptocurrency and Blockchain business innovation, Fortune reported April 6.

    image courtesy of CoinTelegraph.

    Coinfund has recently added token-based financial services platform Coinlist, a spinoff of startup connection website AngelList, to the number of projects that it backs. Coinfund is also known for backing chat messenger app Kik, which raised almost $100 mln in the Initial Coin Offering (ICO) of its Kin token last fall. Fortune notes that Venrock and Coinfund met through their mutual investment in the live video streaming app maker YouNow.

    When asked about Bitcoin’s (BTC) recent failure to strongly stay above $7,000, Venrock partner David Pakman told Fortune that the price of “a single currency over the next day, week, month, year” is not what they thought about when deciding to partner with a crypto investment group:

    “We’re really patient long term investors […] we’re wondering what happens over the next five to ten years. Can we have fundamental change to a number of different markets because of a disturbed ledger, a token economy that all participants can take part in?”

    According to an April 6 blog post by Pakman, cryptocurrency and Blockchain’s most important innovation is their creation of “the possibility of building sustainable decentralized computing platforms, services and apps”, writing:

    “It may finally be possible to build widely-distributed networks without centralized trust or control, and to allow user consensus to govern their future […] In this scenario, ‘commodity’ applications like messaging, social media and application infrastructure like file storage and compute become very much like public utilities — and they are owned and governed by their participants. For many of us, this is the mission behind crypto.”

    When asked by Fortune about the potential for scams running ICOs, specifically mentioning the recent news of the Centra-related arrests, Pakman referred to the crypto ecosystem as a “wild space up and down the whole stack,” with ICOs as “certainly one of the most wild spaces of it all.”

    Pakman added that he supports regulations of the crypto sphere in order to clear out the “bad actors,” but that one needs to be careful not to “throw the baby out with the bathwater here”.

    Pakman also noted that decentralized systems could eventually be a competitor to traditional venture capital fundraising, which he referred to as “effectively a gatekeeper industry” that he would “actually like to see undone”, adding:

    “I don’t believe that a small group of people should make the decisions about which projects can raise some money and get off the ground.”

    Coinfund co-founder Jake Brukhman told Fortune that Coinfund will be “working closely with [Venrock] to help mentor, advise, and support teams in the space.”

    Major traditional investor George Soros, who had previously referred to Bitcoin as a “bubble,” will also reportedly be investing in cryptocurrencies, through the Soros Fund Management. In mid-February, Soros’s investment fund become the number three shareholder in Overstock, a retail company that accepts Bitcoin as payment and whose CEO Patrick Byrne is widely known for his pro-crypto stance.

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Today’s News 8th April 2018

  • "Events Today Could Lead To The Last War In The History Of Mankind", Veteran Putin General Warns

    The fallout from the Salisbury nerve agent attack reminds us of the assassination of Archduke Franz Ferdinand, which was the most immediate catalyst – of many parallel narrative and sequences of events – that ultimately resulted in World War I. We are not alone in this reasoning, as one high-level retired Russian general warns the Salisbury poisoning could lead to the “last war in the history of mankind.”

    Ret. Lieutenant-General Evgeny Buzhinsky — who served in the Russian Armed Forces for more than forty years — said relations between Russia and Washington could become “worse” than the climax of the Cold War and “end up in a very, very bad outcome” following the nerve gas attack in the United Kingdom.

    More than 150 Russian diplomats have been expelled from 25 countries — including 23 from the United Kingdom since western nations accused Russia of being the sole actor responsible for using deadly chemical weapons on Sergei Skripal and his daughter in their Salisbury home.

    Buzhinsky, who is now the senior vice president of the Russian Center for Policy Studies (PIR Center), told BBC Radio Today program:

    “Please, when you say the world, you mean EU and United States and some other countries … you see it’s a cold war, it’s worse than the Cold War because if the situation will develop in the way this (is) now, I’m afraid that it will end up in a very, very bad outcome.”

    Nicholas Robinson, a British presenter on the BBC’s Today program pressed Buzhinsky on what he meant by “worse than a cold war,” to which the Ret. Russian Lieutenant-General responded with this bombshell: today’s current situation is spiraling out of control and could develop into a “real war.”

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    The Daily Express shares a chilling transcript of Buzhinsky’s conversation on BBC:

    He said: “Worse than a cold war is a real war. It will be the last war in the history of the mankind.”

    “Not the Salisbury poisoning but all the actions.”

    “You see the pressure from the United States, that you say the pressure is going to continue, what are you going to achieve? You are going to achieve the regime change, it’s useless. You don’t know Russians. The more external pressure, the more the society is solidified around the President.”

    When asked how the dispute would lead to a real war, Mr Buzhinsky accused the UK of not wanting to discuss the Salisbury attack.

    “Let’s start discussing,” he said. “You don’t want to discuss. You say Russia should change its behaviour, it’s not the kind of talk or compromise we need.

    “Okay, you expelled diplomats. We expelled diplomats. You further expel, what is the next step? The breach of diplomatic relations.”

    “After that, I said it may lead to nowhere. Actually, you are cornering Russia. To corner, Russia is a very dangerous thing.”

    Mr Buzhinsky claimed it was “nonsense” Russia was behind the attack as President Vladimir Putin had no benefit out of the attack, which took place before the Russian Presidential election. The comments come after Mr Putin’s foreign minister accused Theresa May of “resorting to open lies”.

    He said: “I believe that our Western partners, I mean primarily the United Kingdom, the United States and some countries that blindly follow them, have cast away all decency, they are resorting to open lies, blatant misinformation.”

    Between cold, proxy and trade wars, as time moves on in the Trump era, it seems like the world has gone haywire.  While history tends not to repeat itself – but rather rhymes – the fatalistic opinion of a veteran Russian expert and observer such as Buzhinsky has to be taken seriously. We can only hope that his forecast for a “last war” is wrong.

  • Kelly Goes Nuclear In Oval Office, Threatens To Quit: Report

    White House Chief of Staff John Kelly threatened to quit in late March after a blow up with Trump in a meeting in the Oval Office, reports Axios.

    Kelly was reportedly heard muttering about quitting as he stormed back to his office after the March 28 argument – however sources say it wasn’t related to the firing of former Secretary of Veterans Affairs David Shulkin which happened the same day. 

    A senior administration official said that calling it a threat was “probably too strong, it was more venting frustration.” Kelly often says he doesn’t have to be there and didn’t seek the job originally. –Axios

     Details (via Axios):

    • Kelly packed up some personal belongings, though I’m told that wasn’t necessarily because he was walking out. 
    • He was fired up enough that colleagues got allies to call in to calm him down
    • At one point DHS Secretary Kirstjen Nielsen — perhaps the person in the administration he trusts most — came over to talk him off the ledge

    Meanwhile, President Trump has reportedly been sidestepping Kelly of late – telling one confidant that he’s “tired of being told no” by Kelly, and has instead opted to simply not include his Chief of Staff in various matters, according to CBS News, citing a person who was not authorized to publicly discuss private conversations and spoke on condition of anonymity. 

    When President Donald Trump made a congratulatory phone call to Russian leader Vladimir Putin, White House chief of staff John Kelly wasn’t on the line. When Mr. Trump tapped John Bolton to be his next national security adviser, Kelly wasn’t in the room.

    And when Mr. Trump spent a Mar-a-Lago weekend stewing over immigration and trade, Kelly wasn’t in sight.

    Kelly, once empowered to bring order to a turbulent West Wing, has receded from view, his clout diminished, his word less trusted by staff and his guidance less tolerated by an increasingly go-it-alone president. –CBS News

    Kelly had made it a practice for months to listen in on many of the president’s calls – particularly with world leaders. He also reportedly advocated against the hiring of John Bolton. 

    “It’s not tenable for Kelly to remain in this position so weakened,” said Chris Whipple, author of “Gatekeepers,” a history of modern White House chiefs of staff. “More than any of his predecessors, Donald Trump needs an empowered chief of staff to tell him what he does not want to hear. Trump wants to run the White House like the 26th floor of Trump Tower, and it’s simply not going to work.”

    In December we reported that President Trump had been calling White House aides to his private residence in the evening where he would give them new assignments – asking them not to tell Kelly.

    John has been successful at putting in place a stronger chain of command in the White House, requiring people to go through him to get to the Oval Office,” said Leon Panetta, a White House chief of staff under President Bill Clinton who worked with Mr. Kelly, a four-star Marine general, in the Department of Defense. “The problem has always been whether or not the president is going to accept better discipline in the way he operates. He’s been less successful at that.” –WSJ

    This is all just inevitable,” said one person close to Mr. Trump. “It’s not that Mr. Kelly is wrong—we all know he’s terribly competent.

    Meanwhile, frustrated friends of the President have also reportedly gotten around Kelly’s “do not call” list by calling Melania Trump in order to pass messages to her husband, according to two people familiar with the matter.

    “[S]ince she arrived in the White House from New York in the summer, the first lady has taken on a more central role as a political adviser to the president.”

     

    If I don’t want to wait 24 hours for a call from the president, getting to Melania is much easier,” one person said. –WSJ

    Melania Trump’s office issued a harsh rebuke to the Wall St. Journal, stating This is more fake news and these are more anonymous sources peddling things that just aren’t true. The First Lady is focused on her own work in the East Wing.” 

    Trump’s Twitter feed is still off limits to Kelly, who’s been rolling his eyes at questions over potential diplomatic quagmires such as the time he called North Korean leader Kim Jong Un “short and fat.” Asked about the incident, Kelly shrugged it off – saying “Believe it or not – I don’t follow the tweets,” adding that he has advised White House staff to do the same. “We develop policy in the normal traditional staff way.”

    As one White House official told the WSJ, despite what appears to be an equilibrium between Kelly and Trump, they may never see eye to eye. “Kelly is too much of a general, and Trump is too much Trump,” adding that Trump continues to hold Mr. Kelly in high regard – often praising him during public appearances. 

    Meanwhile in March, Kelly  was reportedly so furious over the way the press was covering Secretary of State Rex Tillerson’s Tuesday firing that he shouted at the television on Air Force One as the President and his staff took off for California, according to Politico.

    Accounts of Kelly’s involvement in Tillerson’s ouster have varied. While some reports describe Kelly only telling Tillerson to watch Trump’s twitter account “over the next few days,” others have said it was a much more direct conversation in which the Secretary of State was given a heads up. In that version, Tillerson implored Kelly to hold off on any decisions until he returned to the U.S. on Monday. 

    Tillerson, meanwhile, would only say that he received a “lunchtime call” from Trump during the President’s flight to California, and a separate call from Kelly – both after Trump’s tweet. 

    Kelly’s consternation over the press coverage came on the heels of former Trump staff secretary Rob Porter’s ouster in February after the Daily Mail published accounts from his two ex-wives accusing him of domestic abuse. Kelly took fire for not getting rid of Porter earler, after it emerged that the FBI had alerted the White House several times in 2017 that the allegations were holding up Porter’s security clearance.  When the allegations against Porter began to fly, Kelly put out a statement calling Porter a “man of true integrity and honor,” and “a trusted professional.” 

    With Trump playing musical chairs in the West Wing seemingly every other week, one has to wonder exactly how much longer Kelly will last.

  • Private Equity Firm Offers Cash-Strapped Connecticut $2BN For Government Buildings

    Given the precarious financial circumstances of Hartford, Conn. – not to mention the state as a whole – it’s hardly surprising that private investors sense an opportunity to buy up valuable state- and city-owned properties at a good price.

    And in the first of what we imagine could be a flood of offers, A Chicago-based private equity firm specializing in real-estate investment has sent letters to the city and to the state of Connecticut offering to spend $2 billion to purchase publicly owned office buildings, health-care facilities and trasit-related properties – and anything else the state and municipal governments might be willing to part with.

    However, there’s one catch: The firm is insisting that it secures a 7.25% annual yield on its investment by raising rents and leasing the properties back to their former owners, according to Bloomberg.

    For the record, that’s nearly double the 3.43% yield Connecticut pays on 20-year general obligation bonds sold in January. And a recent $550 million state bailout for the beleaguered capital city has inspired Moody’s Investors’ Service to boost its rating on Hartford’s GO bonds to A2 from Caa3 – the same level as the state, according to the Bond Buyer.

    Terms of the deal as it’s proposed may favor the buyer, according to Jim Costello, a senior vice president for property-research firm Real Capital Analytics Inc. Capitalization rates — net operating income as a share of the purchase price — are in the mid-6 percent range now for single-tenant sale-and-leaseback office deals, he said.

    “Obviously, the details of every deal are different, but buying in at 7.25 percent, the buyer is getting a better initial yield than the market on average,” Costello said.

    Capitol

    Still, the firm believes Connecticut might be interested in its offer, considering that the state and city could use the money to help balance out their badly underfunded pensions.

    As we’ve pointed out time and time again, the state is in the middle of a taxpayer exodus.

    Last year, the state experienced a net adjusted gross income drain of $2.7 billion as wealthy residents fled the state. The average adjusted gross income of those leaving Connecticut last year was $123,377 – the highest in the country.

    Oak Street has said it would take any buildings the state would be willing to part with.

    Oak Street closed fundraising for its fourth real-estate fund – the Oak Street Capital Real Estate Fund IV – in October, raising $1.25 billion over six months, according to Pensions & Investments. Several state pension funds invested in the Oak Street fund, including the Pennsylvania State Employees’ Retirement System and the Illinois Teachers Retirement System.

    The firm’s offer was assembled by a local politician from Westport – a wealthy Fairfield County suburb – who is a mangaing partner at K Property Group, which specializes in identifying properties with “untapped potential.”

    “I just want to see our state make a smart decision,” said Gregory Kraut, a managing partner of K Property Group who is also an elected member of Westport’s town government. “And with my real estate and financial background, I have some options for them.”

    Kraut, who put together the offer, said he’s acting as a concerned citizen and isn’t taking a commission or a fee from Oak Street. He suggested the state might use the money from real estate sales to reduce its unfunded pension obligations, and Hartford could reduce its debt load.

    The state also has the highest net tax supported debt per capita in the US. It also has fewer jobs than it had a decade ago as the post-crisis recovery has largely passed it by. And recently, two of its largest companies – General Electric and Aetna – announced they would soon move their headquarters out of the state.

    Conn

    Still, with the ruling Democrats in danger of losing the governorship after Gov. Dannel Malloy said he wouldn’t seek a third term, reestablishing the party as pro-business and pro-fiscal responsibility could be a major boon during the 2018 election cycle.

    Of course, as we’ve pointed out time and time again, while politicians might try and repair pension related shortfalls, the reality is the American pension system is probably already too far gone to salvage. It’s so bad, Congress recently had to step in, quietly forming a committee to use federal funds to bail out as many as 200 “multi-employer” pension plan. They did this because the Pension Benefit Guaranty Corporation (PBGC) – the pension equivalent to the Federal Deposit Insurance Corporation (FDIC) – is completely insolvent.

    Think about that: Not only are pension funds heading for insolvency, the backstop meant to bail them out in the event of insolvency is also itself insolvent.

    The upshot, is that regardless of whether the state rejects or accepts this offer, if you’re a young teacher or government employee hoping that your state-supported pension fund will be there for you in retirement, think again.

  • As Skripal-Gate Collapses, Will May's Government Be Next?

    Authored by Tom Luongo,

    The United Kingdom is headed for a break-up.  Not today or tomorrow, mind you but, sooner than anyone would like to handicap, especially in this age of coalition government at any cost.

    By responding to the alleged poisoning of former Russian double agent Sergei Skripal and his daughter Yulia with histrionics normally reserved for The View, Theresa May’s government has set the stage for its own collapse.

    Government’s fall when the people lose confidence in them.  May has bungled everything she has touched as Prime Minister, from Brexit talks and her relationship with Donald Trump to her response (or lack thereof) to the escalating level of domestic terrorism and her pathetic campaign during last year’s snap election.

    When I confront such obvious ineptitude it’s not hard to believe that wasn’t the plan to begin with.

    Since her initial meeting with Donald Trump after his election where it looked like the two would get along, May has become more and more belligerent to both him and his base.  While he continues to affirm our special relationship “The Gypsum Lady” as I like to call her makes mistake after mistake.

    The latest of which is pushing everyone east of the Dneiper River in Ukraine to denounce the Russians and President Vladimir Putin personally for this alleged poisoning in Salisbury a month ago.

    The result of which was the largest round of diplomatic expulsions in a century, if not ever.

    And now that the whole “Russia did it” narrative has been skewered by May’s own experts at Porton Downs, she stands alone along with her equally inept and embarrassing Foreign Secretary Boris Johnson and Defense Secretary Gavin Williamson.

    The calls for their jobs will only intensify here.

    Tinker, Tailor, Traitor, Spy

    The whole thing felt from the beginning like a bad Ian Fleming novel.  I said from the beginning this this was a classic false flag to gin up anti-Russian fervor while May’s negotiator betrayed Brexit and pushed to remove Russian businesses from doing business in London.

    I’m sorry but it’s not a stretch to think this whole thing was cooked up by MI-6.  In fact, that’s been my operating assumption for a month now.

    The problem was, until a few days ago, I didn’t have a good enough reason why.

    Putting diplomatic pressure on Russia on behalf of the U.S.’s crazed neoconservative Deep State just didn’t seem like a big enough reward.  Neither did cutting Russian businesses out of European banks to stop contractor and creditor payments associated with the Nordstream 2 pipeline.

    Those things felt like nice bonus objectives but not main goals.

    And it wasn’t until the lead scientists at Porton Downs left May, Johnson and Williamson out to hang on Monday that the full operation became clear. By stating that they could not confirm the origin of the Novichok nerve agent used in the attack on the Skripals the Porton Downs officials destroyed the credibility of The Gypsum Lady’s government.

    Therefore, this operation was always about undermining May’s government to the point of a no-confidence vote.  This would then be the ultimate betrayal of Brexit in order to preserve the U.K.’s position in the European Union, which is favored by the political and old-monied British elite.

    In short, this was a coup attempt.

    And don’t think for a second that this is not plausible. Remember it was Margaret Thatcher’s own most trusted people who betrayed her to get the U.K. into the European Union in the first place.  This was why they brought down The Iron Lady.

    So, here’s the scene:

    May and Johnson both get told by trusted advisors that there is incontrovertible proof of Russia’s hand in this.  They go with this information with confidence to parliament, the U.N., high-level meetings with foreign leaders and the press.

    They convince their allies to stand strong against the evil Russians who is everyone’s bid ‘baddie’ at this point.

    Trump has to go along with this nonsense even though he is obviously skeptical otherwise there will be an uproar in the U.S. press about him betraying our most trusted ally for his puppet-master Putin.

    To be honest, I don’t think these bozos, May and Johnson, were in on the plan.  I think they were being played all along and now will be the patsies.

    Just like May was played last year, calling for snap elections.  The minute she called them there were terror attacks all over London, marches against her over public safety.  A media campaign which puffed up Jeremy Corbyn, who they are now destroying for his rightful trepidation about this fairy tale MI-6 is spinning.

    The goal was to weaken May and get Labour back in charge.  Corbyn would then be cast aside and a Tony Blair clone installed as Prime Minister to scuttle Brexit and restore order to the galaxy, Europe.  Unfortunately, the DUP got enough of the vote to re-elect a very weakened May and things have limped along for nearly a year.

    Crisis on Infinite Empires

    The problem with this however, is like all plans of those desperate to cling to vestiges of former glory (and the U.K. is definitely the poster child for that), is the crisis of confidence it will engender.

    Make no mistake, Brexit was no mistake.

    It’s what the people of Britain wanted and they want it more now than in 2016.  So, they don’t dare call for a new referendum.  But, they are also looking at a third parliamentary vote in as many years.

    And that doesn’t scream confidence no matter how much markets would prefer the legal status quo.  Opposition to Brexit comes from the entrenched monied power, not from any adherence to globalist ideology.

    But, if Brexit is betrayed through this hackneyed farce of a spy thriller, it won’t sit well with the British people.  Scotland’s call for a second referendum will continue to grow and the Pound will fall alongside the competitiveness of British labor still trapped within a euro-zone that has done nothing but choke the life out of the economy.

    The Pound will begin to sink into irrelevancy as this unfolds.  It won’t happen overnight, but we will look back on these events and see them as the trigger points for the path of history.

    Between these things and the toxic levels of political correctness as it pertains to Muslim immigration, the insanity of London liberals and the de facto police state the U.K. has become and you have a recipe for political unrest that will not be pretty.

    Brexit was meant to be the peaceful revolution that put the nail in the coffin of the march to one world government.  It is about to be nullified.

    When it is the sun will finally set on what’s left of the British Empire.

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  • Surviving The Next Great Depression

    Authored by Tom Chtaham via Project Chesapeake,

    Numerous economists and investors are warning of another great financial crisis to come but few people want to listen to them. No crisis is ever exactly like the last one and the next great depression will be different from the last one. In the last depression those who had money were in a good financial position to ride it out but the next depression will see those with fiat money drowning in it as it becomes worthless.

    Very few Americans have any significant savings today. Most live on credit and those with savings have it stored in financial instruments that will be wiped out as the bankers collapse the system to hide the theft they have been involved in for decades. Those who think they will retire with their IRA, pensions or social security will suddenly find them all gone never to return leaving them with no means to care for themselves.

    The west line has moved to Asia. This means that North America is no longer the shipping center of the world. The consequences of this for Americans will be disastrous. This means our economy in the future will be smaller and slower and will result in a standard of living far below what it currently is.

    Those that own very few assets free and clear will become the new homeless as they become jobless and default on all of their credit obligations.

    All of the social safety nets that exist now to keep people fat and happy will fail leaving mobs of people to roam the streets to seek out what they need to survive.

    One only has to look at Venezuela today to see where this will all lead.

    The basic minimum wage in Venezuela today is $7 dollars a month. Not a day or a week but a month. Those that hold local currency see it devalue on a daily basis making things increasingly worse as time goes on. Had any of these people stored some of their wealth in gold they would have the ability to live a little easier as the economy collapses. One ounce of gold in the hands of a Venezuelan today would last them for years. This is a lesson we all need to heed.

    Simply storing some of your wealth in gold and silver is no cure all but it is part of a bigger strategy to insure you do not have to suffer as many will in the coming years due to their blind faith in their belief the government will care for them. Keep in mind that the government is actually controlled by the same people that will destroy your standard of living so why would they care about your suffering.

    Understanding what will likely happen and insuring you have a plan to deal with it is the only hope you will have of coming through the coming bad years in tact. Those who trust in government or only live for today will reap what they sow and it will be unpleasant at best if they survive at all. A simple strategy to insure you do not suffer does not have to be expensive or complicated. The best plans are simple and allow you to adapt to the changing times. If you invest in a simple, inexpensive plan and the world somehow goes on as normal, you will not be any worse for the investment but if things takes an unexpected turn and your plan becomes necessary, it will allow you to survive the crisis much better than the bulk of the population.

    The strategy I outlined in The American Dream Lost is a basic plan that will work for just about anyone but is mainly designed for those that have only a few thousand dollars to draw on in an emergency. That is to say it is designed for the majority of Americans that have little money. It is important to understand that a plan of this type is an insurance policy against bad times that can do great harm to you and your family and needs to be understood in that light.

    One of the worst problems people have is that when something bad begins to happen they attempt to continue living as they always have and ignore the future consequences until it is too late to do anything meaningful about it. If a person loses their job they continue to live as they always have using up their small savings in the hope that things will change for the better before they run out of money. Sometimes they win and sometimes they lose, it depends on how lucky they are. This type of mentality often leads people to the point where they run out of money and only then do they try to come up with a plan. The problem is, by then they have no resources left to enact a plan with. This is what you need to avoid.

    When your economic situation suddenly changes for the worse you need to immediately sit down and determine what the future is likely to look like. It is good to be optimistic but if the chances of finding a new job are not very good you need to decide how best to use what resources you have to maintain a decent living standard. You may have to make some very difficult choices but the option of doing nothing could be very harmful in the long run. For those that decide radical steps may be needed to continue caring for their family the following list is a good place to start.

    Buy a years supply of basic foods and supplies that store easily

    Buy some durable clothing for future use

    Buy an older vehicle for cash that can pull a trailer

    Buy a good used camper trailer for cash that can house your family

    Buy a weapon and ammo for protection and hunting purposes

    Buy a few rolls of silver coins to preserve wealth and act as an emergency fund

    What this gives you is the ability to continue caring for your family even in the worst of situations if everything is lost to creditors. They will have food, shelter, clothing, transportation, security and the ability to buy critical items that are needed at some future time. Convincing your family they have to move to a camper for a while would not be easy but the alternative of being homeless would make it an easy choice. The fact that thousands of people all across America are at this very moment living in tents near large population centers is proof enough it can happen.

    Depending on your shopping skills all of these things can be secured for under $5,000 dollars and much less if you have time to look for bargains. Your plan may be slightly different depending on the resources and skills you have. You may have access to a small piece of land you own somewhere that a cabin can be built on or you may have the skills to retrofit a van body truck or enclosed trailer for living in. In situations like this skills are worth as much as gold coins.

    When the next great depression hits it will be unlike anything we have lived through before. Nothing will be as it seems and only those that have the resources to adapt will come through it whole. Preparation is the key to adapting to future events and those without resources will reap a bitter harvest as they struggle to survive. No announcements will be made, no warnings will be given by the establishment, it will just suddenly happen out of the blue and everyone will say it was unpredictable. But those who prepared will know better.

  • India Builds Over 14,000 Bunkers In Preparation For War With Pakistan

    The Government of India is planning to construct 14,460 bunkers for civilians in five border districts in Jammu & Kashmir – Samba, Poonch, Jammu, Kathua, and Rajouri – which reside along Line of Control (LoC) and the international Indo-Pakistani border, reports The Times of India.

    The state-owned National Buildings Construction Corporation (NBCC) will build these bunkers in populated regions that rest within 3 kilometers (1.86 miles) from the de facto border between the two countries, which have experienced an increasing amount of incursions by the Pakistani Army.

    In February, Jammu and Kashmir Chief Minister Mehbooba Mufti announced during a State Assembly that 41 civilians had been killed in ceasefire violations along the LoC by Pakistan between 2015 and 2017. To safeguard civilians from Pakistani shelling across the border, NBCC will build 13,029 small bunkers and 1,431 more massive community bunkers. The Times of India said the construction program would cost around 4.157 billion rupees (US$63.8 million).

    Oneindia News: India builds bunkers along the LoC with Pakistan for villagers

    The chairman and managing director of NBCC, A K Mittal, told The Times of India that “pre-cast construction methodology” would be used for the bunkers.

    “Strategically located casting yards will be used to fabricate RCC components, which shall be transported by trailer/ tractors and the bunkers will be erected by cranes and labourers. We will plan in such a way that each bunker is completed in maximum 2-3 days,” he added.

    The Times of India provides insight into the specific locations where the individual and community bunkers will be built.

    “In Samba, 2,515 individual and eight community bunkers will be built. Similarly, in Jammu 1,200 individual and 120 community bunkers will be constructed. A maximum of 4,918 individual and 372 community bunkers will be built in Rajouri. In Kathua, 3,076 individual bunkers will be constructed. Poonch will get the maximum number of 688 community bunkers and will get another 1,320 individual bunkers.”

    In addition to building thousands of bunkers, The Times of India indicates NBCC has already started erecting border fencing along the India-Pakistan border.

    “It’s a prestigious and challenging project for us. We will meet the time line, which will be set by the J&K government. While we are building World Trade Centre in South Delhi we are also engaged in road and fencing works in Assam, Meghalaya, Mizoram and Tripura on Indo-Bangladesh border and in Gujarat on Pakistan border,” Mittal said.

    Despite the 2003 ceasefire agreement, violence has recently erupted between both countries on the LoC, which marked 2017 as the bloodiest year since the ceasefire agreement came into effect.

    Earlier this year, we reported on 40,000 Indians fleeing the Jammu and Kashmir region, as intense military shelling from the Pakistani military turned the region into a war zone.

    “Along the 786 km-long Line of Control (LoC) which divides the State of Jammu Kashmir between India and Pakistan, sporadic cross-border military gunfire between both countries is not that unusual. However, this weekend, in the region of Noushera, Rajouri and Akhnoor sectors of Jammu and Kashmir, more than 40,000 Indians have fled their homes and shops amid the fourth consecutive day of intense shelling from Pakistani military forces, the Economic Times reports.”

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    The sporadic cross-border military skirmishes between both countries have led to fears of another Indo-Pakistani war breaking out. According to government statistics, there were some 860 incidents of ceasefire violations by Pakistan military forces along the LoC in 2017, compared with 221 the prior year. As India prepares to build thousands of bunkers for its civilian population before the next conflict breaks out, Western media outlets have ignored this dire situation and would rather focus on unverified claims of a Russian nerve gas attack in the United Kingdom. Nevertheless, the LoC could very well be the epicenter of “World War III,” said the Daily Express.

  • Chris Hedges: "U.S. Citizens Are Living In An Inverted Totalitarian Country"

    Submitted by Erik Sandberg of NewsVoice

    Chris Hedges

    The mainstream media deflects attention from where power resides: corporations, not with the leaders of the free world. The arguments posed by Chris Hedges, that the U.S. is neither a democracy nor a republic but a totalitarian state that can now assassinate its citizens at will, are pertinent ones. Scary ones. Especially as consecutive governments seem equally as impotent to invoke any real change for the States. If the media won’t stand up to the marionettes who pull the strings of the conglomerates causing deep, indelible polarisation in the world abound; then so we must act. Together.

    Listen to the full interview in our weekly Newsvoice Think podcast.

    We were delighted to have Chris Hedges on an episode of the Newsvoice Think podcast as we seek to broadcast perspectives from all sides of the political spectrum. Right, left, red, blue and purple.

    In our interview with Chris, we discussed a range of topics facing the U.S. today as the Trump administration looks back at a year in power, and forward to the November ’18 midterms where Democrats will be looking to make gains. Chris was scathing of that party describing them as a “creature of Wall Street, which is choreographed and ceased to be a proper party a long time ago.”

    As a columnist with Truthdig, and a big advocate of independent media. Chris Hedges was the perfect interviewee for us to draw on the benefits of crowdsourced journalism and the challenges facing sites at the mercy of Facebook, Google and Twitter algorithms.

    Chris’s ire against the corporate interest of Facebook et al didn’t let up saying dissident voices were being shut down and that corporate oligarchs were only too happy to let them. The neutralisation of the media platforms that seek to provide independent opinion on U.S. current affairs is in full pelt.

    North Korea was the hot topic in 2017. Commentators said it was like a return to the days of the Cold War. But Hedges pointed that we need to remember what happened during the Korean War — how the North was flattened by U.S. bombs — and that as a result they, as a nation, suffer from an almost psychosis as a result. Trump, he said, is an imbecile and only deals in bombast, threats and rhetoric.

    Not surprisingly, Trump got it hard from Hedges. Describing his administration as a “kleptocracy” who will seek to attack immigrants and up the xenophobia stakes as it distracts and covers for the unadulterated theft of U.S. natural resources.

    As young people look to estimable journalists, activists and politicians in the States to help give them a voice, Hedges sees the democratic system as utterly futile. Encouraging mass civil disobedience instead, the ex-NY Times foreign correspondent states that railroads should be blocked and shutting down corporate buildings, for example, is the only way forward.

    The perennial argument between Republicans and Democrats is just that; is the U.S. a Republic or a Democracy? Hedges thinks neither. He told Newsvoice that the States is an inverted totalitarian country where the government regards the public as “irrelevant”.

    Unlike Ben Wizner from the ACLU who sees hope in delaying Net Neutrality, at least until a new administration is in power, Chris feels it is hopeless — that it is a dead duck, and as Net Neutrality slows down independent media platforms, the public will be at the behest of corporate social media sites such as Facebook who’ll increasingly deem what you do and don’t read or see.

    You can read more of Chris’ work at Truthdig where he has a weekly column every Monday.

  • Retail Real Estate Bubble Turns Manhattan Into A "Shopping Wasteland"

    The Fed loves to repeat how necessary and vital inflation is for economic prosperity, but in the case of midtown Manhattan’s “prime” retail real estate, it is doing nothing but helping cause once extremely prominent shopping areas become the very same “ghost towns” they turned into during the 2008 housing crisis.

    Mayor DeBlasio’s asinine solution to this issue created in part by faulty government policy: more government and more regulation.

    So much for the recovery.

    As if brick and mortar retail didn’t have enough problems to deal with being methodically decimated by the ever growing behemoth that is Amazon, store owners are now facing rent that is simply so high it makes it impossible for most to open retail stores and do business in once prominent areas of downtown Manhattan.

    On Saturday, the New York Post wrote an article confirming our writeup from late March suggesting that high prices are driving businesses out of town:

    If you want to see the future of storefront retailing, walk nine blocks along Broadway from 57th to 48th Street and count the stores.

    The total number comes to precisely one — a tiny shop to buy drones.

    That’s right: On a nine-block stretch of what’s arguably the world’s most famous avenue, steps south of the bustling Time Warner Center and the planned new Nordstrom department store, lies a shopping wasteland.

    It shouldn’t come as a surprise to anybody that Amazon and other online retailers have had a profoundly negative effect on traditional brick-and-mortar retailers. One look at the recent Chapter 11 retail bankruptcy filings and it becomes obvious why one year ago the CEO of Urban Outfitters said that “the retail bubble has now burst

    This is the narrative that has been playing out for the last couple of years as we have watched retail stocks like Sears, JCPenney and Macy’s get destroyed while online shopping names have performed extraordinarily well.

    But what may come as a surprise to some is the fact that the constant need to keep prices of real estate and rent rising, regardless of traditional supply and demand, is exacerbating things to a degree where some of the most sought after real estate in the world has now become deserted and barren. The article continued:

    The same crisis blights the rest of Manhattan. The people invested in storefront retailing — real-estate developers, landlords and retail companies themselves — tell us not to worry. It’s a “transitional” situation that will right itself over time. Authoritative-sounding surveys by real-estate and retail companies claim that Manhattan’s overall vacancy is only just 10 percent.

    But they are all wrong. Bricks-and-mortar retail is shrinking so swiftly and on such a wide scale, it’s going to require big changes in how we plan our new buildings and our cities — although nobody wants to admit it.

    And yet, it’s scary to think that one of the city’s great pleasures, window-shopping — which also ensures vibrant, crime-deterring sidewalk life — will become a thing of the past except at certain locations.

    At this rate, we face a future where streets will be mostly dark at sidewalk level for miles on end. Third Avenue in the East 60s, Broadway north of Lincoln Center, many blocks in the supposedly thriving Meatpacking District are halfway there already.

    What is “progressive” Mayor DeBlasio’s solution to the problem of rising rents as a result of government policy? More regulation and more government, of course! He wants to actually fine landlords who keep spaces empty until they fine tenants. Talk about the blind leading the blind:

    Few retailers can afford to pay more than $250 per square foot annually in rent — yet landlords persist in asking $400 a square foot and up to $2,000 a square foot in prime zones like Fifth Avenue and Times Square.

    Mayor de Blasio wants to fine landlords who keep spaces empty until they find tenants who’ll pay astronomical rents. But there’s no fair way to judge who’s actually guilty. Would he punish the owners of the small corner building at 1330 Third Ave. at East 76th Street, who slashed the “ask” from $420,000 a year in 2016 to $360,000 in April 2017 and still can’t find a tenant?

    In other words a socialist mayor wants to fine capitalist merchants as punishment for policies enacted by the Federal Reserve (whose direct debt and deficit monetization also has extensive socialist underpinnings).

    To be sure, none of this comes as a surprise to us – or our regular readers – because in late March owe recalled our own 2009 tour of Madison Avenue to discover that it also had turned into a ghost town. Just a week ago we told our readers that the ghost town that was New York’s “Golden Mile” was not surprising: after all the US economy had just been hit with the worst recession since the Great Depression, and only an emergency liquidity injection of trillions of dollars prevented a global financial collapse.

    What is more surprising is why nearly 9 years later, at a time of what is supposed to be a coordinated global recovery, a walk along Madison Avenue reveals the exact same picture.

    And aside from us and the New York Post, Starbucks CEO Howard Schultz also noticed the disturbing trend, stating at the company’s Annual General Meeting:

    Now, as a result of what we’re witnessing, we’re also seeing something else and that is, there is a proliferation around the country right now of empty storefronts. We took a walk in New York two weeks ago from 59th street to 79th on Madison Avenue, and we lost count of how many empty storefronts there were in ManhattanIt reminded me of the cataclysmic financial crisis in 2008. But what’s happening is very simple, the rent structures for the last 5 to 10 years, have been rising at historic rates and retailers do not have the amount of  customers they had during these last 5 to 10 years and could no longer economically survive.

    So they’re closing stores and as a result of this, I can promise you just like I predicted in 2014 that rents are coming down and landlords are going to have to get religion, or else their stores are going to stay empty. And we’re already beginning to see a different level of reception in terms of what we believe the cost of occupancy should be. And this is going to bode extremely well, specifically for us. We’re adding almost 700 new Starbucks stores a year. And so we are going to take full advantage of the economic reality of this situation. And as we go forward two, three, four, five years out even though labor is going up in terms of cost of labor, we believe rents are going down and the economic model of Starbucks is going to be enhanced as a result of this macro situation. And we’re just at the beginning of this trend.

    So the hilarious irony of Keynesian theory once again rears its ugly head as New York’s current retail apocalypse and prime real estate exodus has, in effect, caused some of the most traversed city streets to look like they did during the financial crisis of 2008 once again.

    Needless to say, this is the direct result of force-engineering a “recovery”, instead of letting the free-market recover on its own: you get a “recovery” that is anything but, and only works as long as the source of endless funding – the Fed – keeps pumping. Meanwhile, the Fed and its fawning media supporters have always been able to duck behind the outperforming stock market as a false indicator of the health of the economy as a “scorecard” for the recovery. But with the market now topping out and reaching levels of significant volatility, and the March jobs number handily missing expectations, how can the Fed justify that their policy continues to make sense when it is putting a good portion of Manhattan into the very same shackles and chains it was in during the crisis we are “recovering” from 10 years ago?

  • Inside El Chapo's Lair: Plastic Furniture, Ornate Weaponry And Cocaine Bananas

    By the time DEA agent Drew Hogan arrived in Mexico City in 2010, Mexican drug lord Joaquin “El Chapo” Guzman had already been on the run for nine years – having escaped from a prison in Southwest Mexico in early 2001 – reportedly hiding in a laundry basket.  

    After Hogan established his base of operation, he picked up the trail for the Sinaloa cartel chief by “looking at the details,” he said. 

    It was in the details – in the numbers,” Hogan told NBC‘s “Today” show on Wednesday while discussing his book “Hunting El Chapo.”

    The phone numbers don’t lie,” Hogan said. “And I was able to pair up with a crack team of Homeland Security investigative agents, and we began intercepting members of Chapo’s inner circle and starting to dismantle layers within his sophisticated communications structure until we got to the top, where I had his personal secretary’s device, who was standing right next to him, and I could ping that to establish a pattern of life to determine where he was at.”

    Hogan, his partner “Brady” and a team of 50 Mexican marines would stumble upon a safehouse used by El Chapo in February 2014, only to find the Cartel boss had already left the lair hidden behind six-inch thick steel doors.

    The DEA agent filmed the hideout on his mobile phone – revealing among other things: 

    • A black sack filled with hundreds of green bananas intended for smuggling cocaine into the United States. 
    • A jewel-encrusted semiautomatic pistol adorned with El Chapo’s initials
    • Lots of cocaine
    • A cache of weapons, including a tripod-mounted machine gun

    [insert: 4AE38DA500000578-5586785-image-a-66_1523036688323.jpg ]

    Hogan says he was shocked by the squalor of the place. “I was surprised, he really afforded himself no luxuries. Each safehouse was the same type of construction, very basic.” 

    “They had Walmart-style plastic tables and chairs, none of the trappings you would expect from a drug lord.”

     El Chapo was eventually tracked down to the beach resort of Mazatlán in late 2014. 

    For the first face-to-face meeting Hogan wore his very own black baseball cap, and ran up to the drug lord and yelling: ‘What’s up, Chapo?

    Hogan said from that moment he knew he was going to tell his story at some point, and chose to write about the exhaustive and enthralling hunt in a new book, called ‘Hunting El Chapo.’

    On Wednesday he spoke about the book for the first time publicly in an interview on the Today Show, and will give further details during Dateline on Sunday.

    He also shared a personal photo from those thrilling years of his life of the moment he caught El Chapo, in which the drug lord can be seen frowning with Hogan and another agent behind him and posing for the camera.

    The former DEA agent called that day he met El Chapo a ‘souvenir of the hunt,’ explaining he plucked it from another place where Chapo had been hiding out. –Daily Mail

    Within 16 months, however, El Chapo would escape from prison – tunneling below the shower in his cell at a Mexican maximum security prison. 

    [insert: 4AD2DB7C00000578-5578631-image-a-36_1522863896995.jpg ]

    “This tunnel that went underneath the prison was the same type of tunnels that went under the safe houses, the same tunnels that were at the US/ Mexico border,” said Hogan.

    Six months later, Chapo was captured again – with the aid of informants, satellite images and intercepted cell phone communications. The drug lord was extradited to the United States on January 19 of this year to stand trial on charges of running the largest drug-trafficking enterprise in the world – said to be responsible for hundreds of murders in North America. He is wanted in Chicago, San Diego, New York City, New Hampshire, Miami and Texas – and has pending indictments in seven different U.S. federal courts. 

    El Chapo is currently sitting in the maximum-security wing of the Metropolitan Correctional Center in New York. His trial is set to begin in September. 

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Today’s News 7th April 2018

  • Why A Dollar Collapse Is Inevitable

    Authored by Alasdair Macleod via GoldMoney.com,

    “Naturally, the smooth termination of the gold-exchange standard, the restoration of the gold standard, and supplemental and interim measures that might be called for, in particular with a view to organizing international credit on this new basis, will have to be deliberately agreed upon between countries, in particular those on which there devolves special responsibility by virtue of their economic and financial capabilities.”

    General Charles de Gaulle, February 1965

    We have been here before – twice.

    The first time was in the late 1920s, which led to the dollar’s devaluation in 1934. And the second was 1966-68, which led to the collapse of the Bretton Woods System.

    Even though gold is now officially excluded from the monetary system, it does not save the dollar from a third collapse and will still be its yardstick.

    This article explains why another collapse is due for the dollar. It describes the errors that led to the two previous episodes, and the lessons from them relevant to understanding the position today. And just because gold is no longer officially money, it will not stop the collapse of the dollar, measured in gold, again.

    General de Gaulle made himself very unpopular with the international monetary establishment by holding the press conference from which the opening quote was taken. Yet, his prophecy, that the gold exchange standard of Bretton Woods would end in tears unless its shortcomings were addressed by a return to a gold standard, turned out to be correct shortly after. What the establishment did not like was the bald implication that it was wrong, and that the correct thing to do was to reinstate the gold standard. Plus ça change, as he might say if he was still with us.

    Those of us who argue the case for a new gold standard, and not some sort of half-way house such as a gold exchange standard to address the obvious failings of the current monetary system, are in a similar position today. The first task is that which faced General de Gaulle and Jacques Rueff, his economic advisor, which is to explain the difference between the two.[i] It is now forty-seven years since all forms of monetary gold were banished by the monetary authorities, and today few people in finance understand its virtues.

    Furthermore, in the main, historians educated as Keynesians and monetarists do not understand the economic history of money, let alone the difference between a gold standard and a gold-exchange standard. These similar sounding monetary systems must be defined and the differences between them noted, for anyone to have the slimmest chance of understanding this vital subject, and its relevance to the situation today.

    Defining the role of gold

    To modern financial commentators, there is little or no significant difference between a gold standard and a gold exchange standard. Keynes’s famous quip, that the gold standard was a barbarous relic, was made in his Tract on Monetary Reform, published in 1923, before the gold exchange standard really got going, yet it is quoted as often as not indiscriminately in the context of the latter.

    Yet, they are as different as chalk and cheese. The gold exchange standard evolved in the 1920s as America and Britain went to the aid of European countries, struggling in the wake of the Great War. It allowed the expansion of national currencies under the guise of them being as good as gold. It was not. In modern terms, it was as different as paper gold futures are to the possession of physical gold today.

    A gold standard is commodity money, where gold is money, and monetary units are defined as a certain fixed fineness and weight of gold. The monetary authority is obliged by law to exchange without restriction gold against monetary units and vice-versa, and there are no restrictions on the ownership and movement of gold.

    Under a gold exchange standard, the only holder of monetary gold is the issuer of the domestic monetary unit as a substitute for gold. The monetary authority undertakes to maintain the relationship between the substitute and gold at a fixed rate. Only money substitutes (bank notes and token coins – gold being the money) circulate in the domestic economy. The monetary authority exchanges all imports of monetary gold and foreign currency into money substitutes for domestic circulation at the fixed gold exchange rate. The monetary authority holds any foreign exchange which is also convertible into gold on a gold exchange standard at a fixed parity, and treats it to all extents and purposes as if it is gold.

    The essential difference between a gold standard and a gold exchange standard is that with the latter, the monetary authority has added flexibility to expand the quantity of money substitutes in circulation without having to buy gold. A gold standard may start, for example, with 50% gold and 50% government bonds backing for money units, but all further issues of monetary units will require the monetary authority to purchase gold to fully cover them. This was the monetary regime in Britain and many other countries before the First World War.

    As stated above, gold exchange standards evolved after the First World War, in the early 1920s.[ii] It was the taking in of foreign currencies, also on gold exchange standards themselves, and booking them as if they were the equivalent of gold, that allowed central banks to expand the quantity of monetary units domestically. To understand how this operated in practice requires us to work through an example between two countries on gold exchange standards. We will take the entirely hypothetical example of two countries, America and Italy, both of which have monetary gold in their reserves and operate on a gold exchange standard.

    America lends Italy dollars by crediting its central bank’s account at the Fed with the dollars loaned. But while ownership has changed to Italy, dollars never leave America. And dollars, when drawn down by the Banca d’Italia are recycled into America’s banking system.

    The economic sacrifice to America of lending money to Italy is therefore zero. America has simply created a loan out of its own currency, and in the process increased the quantity of dollars in circulation. And because in practice Italy does not encash dollars for gold, America expects to preserve its gold reserves.

    Meanwhile, The Banca d’Italia has expanded its balance sheet by the inclusion of America’s dollar loan to it as a liability, and the dollars themselves as an asset regarded as the equivalent of gold. Because dollars are not permitted to circulate in Italy’s domestic economy, they can be used by Banca d’Italia, either to settle other foreign obligations, or as a gold substitute to back the issue of further lira. Meanwhile, the Banca d’Italia’s dollars are reinvested in US Treasuries, which give a yield. Banca d’Italia has little incentive to exchange its dollars for physical gold, because gold yields nothing and is costs to store.

    If Banca d’Italia uses dollars to discharge a foreign obligation with another country, that third party will also end up investing the dollars gained in US Treasuries, assuming it also prefers yielding assets to physical gold. Alternatively, if the dollars are used by the Banca d’Italia to back an increase in the quantity of lira or to subscribe for government debt, the effect in the domestic Italian economy is an inflation of prices.

    Therefore, the effect of a gold exchange standard is the opposite of a gold standard. A gold standard puts the requirements for the quantity of money in circulation entirely in the hands of the market, to which the central bank mechanically responds. A gold exchange standard allows a lending central bank to inflate its money supply through inward investment, and a borrowing central bank to inflate its money supply on the presumption the monetary substitutes borrowed to back it are monetary units of gold.

    The gold exchange standard in the 1920s

    After the First World War, both sterling and dollars were made available under the Dawes Plan of 1924, which provided non-domestic capital for Germany after her hyperinflation. France suffered a currency crisis in July 1926, which was successfully dealt with by the Poincaré government through raising taxes. The Bank of France was then enabled to borrow dollars and sterling and to issue francs and subscribe for government debt.

    To summarise, these loans bolstered the balance sheets of the Reichsbank and the Bank of France, which invested the sterling and dollars borrowed in gilts and Treasuries respectively. If instead France and Germany had taken gold under the gold exchange provisions, they would have had an asset with no yield, though France did opt increasingly for some gold towards the end of the decade and beyond – by December 1932 she had accumulated 3,257 tonnes. So, by lending their monetary units, the creditor nations achieved finance for their own governments, as well as providing capital for foreign central banks. It was seen to be a win-win for all the central banks involved.

    The accumulation of dollars in foreign hands from 1922 onwards accompanied and fuelled bank credit expansion in the US. This gave the roaring twenties an inflationary impetus, dramatically reflected in its stock market bubble. However, the increasing quantity of dollars in foreign ownership became an accident waiting to happen. There had been a mild thirteen-month recession from October 1926 to November 1927, after which the stock market boomed. The Fed was compelled to reverse earlier interest rate cuts and increased the discount rate from 3 ½% to 5% by July 1928.

    French investors began to repatriate capital en masse, and the Bank of France’s gold reserves rocketed from 711 tonnes in 1926 to 2,099 tonnes by 1930.[iii]The gold exchange standard had spectacularly failed, and redemption of dollars for gold, being deflationary, exacerbated the Wall Street Crash. It certainly rhymed with Robert Triffin’s dilemma: the export of dollars into foreign ownership was monetary magic, until it reversed at the first sign of trouble.

    The gold exchange standard of Bretton Woods

    In 1944, the monetary panjandrums of the day, led by Harry Dexter-White for the US and Lord Keynes for the UK, designed the post-war gold exchange standard of Bretton Woods. No doubt, Dexter-White fully understood the advantage to the US of forcing all countries to accept dollars with a yield, or gold with none. When American payments abroad exceeded receipts, the difference was generally reflected in dollars issued to foreign central banks, kept on deposit in New York, or invested in US Treasuries.

    Throughout the ‘fifties, America recorded a surplus on goods and services, which declined as European manufacturing recovered. But other factors, such as investment abroad and the Korean war resulted in an overall balance of payments deficit totalling $21.41bn, the equivalent of 19,024 tonnes of gold at $35 per ounce. However, US gold reserves declined only 4,457 tonnes between 1950 and 1960, which tells us that the balance was indeed invested in US bank deposits and US Government notes and bonds.

    The respective figures for the 1960s were total payment deficits of $32bn, the equivalent of 28,437 tonnes of gold, and an actual decline in gold reserves of 5,283 tonnes.

    The accelerating increase of foreign ownership of dollars over these two decades meant the world, ex-America, was awash with dollars by the mid-1960s. By the end of that decade, America’s gold reserves had declined from 20,279.3 tonnes in 1950, two-thirds of the world’s monetary gold, to 10,538.7 tonnes, 29% of the world’s monetary gold in 1970.

    The effect was to remove trade settlement disciplines on net importing nations, and to cause inflation in net exporting nations, the opposite of the disciplines of a pre-WW1 gold standard on global trade. It was this effect that was central to the second Triffin dilemma, whereby dollars became wildly over-valued in gold terms through their excessive issuance.

    In the mid-sixties, Washington became increasingly alarmed that foreigners weren’t playing by the assumed rule that they should take dollars and not redeem them for gold. By then, France and Germany between them had increased their gold holdings from 487.1 tonnes in 1948 to 7,089 tonnes at the time of de Gaulle’s press conference. General de Gaulle’s press conference, from which this article’s opening quote is taken, had touched some very raw nerves.

    It was clear that the dollar, with the overhang of foreign ownership, had become horribly overvalued, and so should have been devalued, perhaps to over $50 or $60 per ounce, for a gold peg to stick. A devaluation of this magnitude might have been sufficient at that time to stem the outflow of gold.

    Both Washington and American public opinion were set strongly against any devaluation. Instead, the London gold pool, designed to ensure the major central banks supported the Bretton Woods System, collapsed in 1968, when France withdrew from it. A dollar devaluation to $42.2222 shortly after was simply not enough, and in 1971 President Nixon suspended the Bretton Woods System, and the new regime of floating exchange rates that is still with us to this day began.

    The situation today

    Following the Nixon shock, official monetary policy towards gold was to ignore it, and to persuade other central banks and financial markets it was irrelevant to the modern monetary system. To this day, the Fed still books the gold note from the Treasury at $42.2222 per ounce, even though the price has risen to over $1300.

    We can simplistically value the dollar in terms of gold, which is certainly a valid, perhaps the most valid approach. But to merely conclude that the dollar has collapsed since 1971, while true, side-steps an analysis that points to the risk that even today’s value may still be too high. Furthermore, with the dollar acting as the world’s reserve currency, all other fiat currencies, which are priced with reference to it rather than gold, are to a greater or lesser extent in the same boat.

    Taking a cue from our analysis of the workings of cross-border monetary flows, which allows America to have its privilege of foreigners financing its deficits, we can estimate the approximate extent of the accumulated imbalances that could lead to the dollar’s collapse.

    We know that the US balance of payments deteriorated from 1992 onwards, though those figures did not include military spending abroad, which has been a significant and unrecorded addition to dollars both in cash circulation outside America, and also to estimates of the balance of payments.[vi] Official balance of payments figures are therefore understated and have been for at least a quarter of a century.

    More recently, from September 2008 the Fed began expanding its balance sheet by policies designed to increase commercial bank reserves, as a response to the financial crisis. That August, they were $10.5bn, increased to $67.5bn the following month, and peaked at $2,786.9bn in August 2014, since when there has been a modest decline. From our analysis of the run-ups to the two previous dollar crises, we know we should try to estimate how much of the increase was effectively funded from abroad. Treasury TIC Data gives us a fairly good steer to what extent this has happened. We find that between those dates, (August 2008 – August 4014) foreign ownership of dollars increased by $6,237.7bn, over twice as much as the increase in the Fed’s record of commercial bank reserves.

    This is Triffin at its most fast and furious. Since then, foreign ownership of dollars has increased a further $2,142.4bn to a record $18,694.1, even though bank reserves declined by $572bn.[viii] In other words, the accumulation of dollars in foreign hands now stands at over 95% of US GDP.

    Another way of looking at it is to assess the market values of US securities held by foreigners and relate that to GDP, though this information is less timely,. This is shown in the following chart.

    The build-up of foreign investment in America, in large measure the counterpart of dollar loans to foreigners, has been remarkable. At the time of the dot-com bubble, it had jumped to 35% of GDP, from less than 20% in the nineties and considerably less before. At over 90% of GDP in recent years, there can be no doubt that the next financial event, whether it be derived from a rise in interest rates or a general weakness in the dollar, can be expected to trigger a substantial flight out of the dollar.

    The pricing of financial assets, and today’s extraordinarily low interest rates indicate that a flight from the dollar is the last thing expected in financial markets. If they were still alive, de Gaulle and his economic advisor, Jacques Rueff, would be instructing the ECB, as successor to the Bank of France, to dump all dollars for gold immediately. And probably to dump all other foreign fiat currencies for gold as well. However, today, it is likely that other actors will blow the whistle on the dollar, such as the Chinese, and the Russians.

    For it is clear that when the over-valuation of the dollar is corrected, the downside of a dollar collapse is far greater than it was in the early-thirties or the early-seventies. All other fiat currencies take their value from the dollar, not gold. So, the destabilising forces on the dollar, the other unexpected side of Triffin’s dilemma, could take down the whole fiat complex as well.

  • The Average Commute In America Is 26 Minutes – How Does Your City Stack Up?

    The average person is awake for 15.5 hours per day, but once you subtract hours committed to work, eating, chores, personal care, and errands, there’s only so little much free time leftover.

    That’s why, as Visual Capitalist’s Jeff Desjardins notes, the amount of time spent commuting, either in a car or via transit, can be a massive difference maker towards a person’s quality of life.

    THE AVERAGE COMMUTE

    Throughout the United States, the average commute time works out to about 26 minutes one-way.

    However, as today’s infographic from TitleMax shows, the average commute varies considerably between individual states, and also between major cities as well.

    Courtesy of: Visual Capitalist

    In South Dakota, a state with fewer than one million people, congestion is not a problem for most. The state is home to the shortest average commute in the country at just 16.6 minutes one-way.

    Meanwhile, as you may imagine, New York is the polar opposite of South Dakota for getting to work. The Empire State has the longest average commute in the country, which is double the length at 33.6 minutes.

    COMMUTES BY CITY

    Every city is different, which means that data can have high amounts of variability within each state.

    New York again is a great example for this: NYC has the longest average commute in the nation at 34.7 minutes, but go upstate and Buffalo actually has the shortest average commute for all major cities at 20.3 minutes per trip.

    Here are the 10 shortest commutes in the country, for major cities:

    Many people living in places like Buffalo or San Diego are able to hop to their place of the work in 20 minutes or less, giving them a little extra flexibility with their free time in comparison to bigger cities in the country.

    Here are the 10 longest commutes in the country, for major cities:

    While it’s surprising to see that Los Angeles didn’t make it onto the list of cities with ultra-long commutes, the largest city in California does have the distinction of being the most congested city in the world.

    It’s there that citizens spend an unfortunate 104 hours each year stuck in traffic jams.

  • Oceania, 'Tis For Thee: The World Of "1984" Is Forming Now

    Authored by Jeremiah Johnson via SHTFplan.com,

    “Oceania” was a nation described in George Orwell’s “1984” as being comprised of Britain (called “Airstrip One,”) and the United States. There were two other superpowers, namely Eurasia and Eastasia. Other lands rich in resources were contested over, such as Africa and assumingly South America…lands never kept by any of three Super-states for any significant period. The “flux” in conquests was exactly what the MIC (Military Industrial Complex) of our time would have termed “necessary” to justify large expenditures: War as the focal purpose, rather than the exceptional event.

    We see a parallel in today’s world with huge defense budgets and troop deployments keeping the contracts on the move and siphoning off a considerable amount of national revenues to keep the patriotic war machines moving…irrespective of each nation. The psychology: keep the population agitated and on a continual war-footing, using a “threat” (either real, created, or imagined) to accomplish this.

    You are witnessing the final alignment of those spheres of influence that are almost identical to the novel that Orwell wrote. Look at the situation with the alleged Russian poisoning of an intelligence operative and his daughter in Britain. The United States showed “solidarity” with Great Britain by expelling 60 Russian diplomats and closed the Russian consulate in Seattle, Washington. Russia countered by ordering the expulsion of an equal amount of American embassy personnel.

    Yet the interesting fact is that the other nations who followed suit in the “humanitarian crusade” of the alleged Russian poisoning of former FSB agent Skripal and his daughter? The poisoning may have been done by the British, not the Russians. The U.S. State Department has made several statements to the tune that the Russians do not “see eye to eye with us or share our values of freedom and democracy.”

    Really, now…in the surveillance state that inexorably draws to its conclusion with the country losing its rights while being monitored in every activity…what “values” do we have anymore?

    I’m not characterizing the entire populace of the United States…but our government, that holds most of the “forms” that the country was founded upon without any true leadership, statesmanship, or representation of the American people. I’m characterizing much of the population…flitting from one reality show to the next dose of Hollywood propaganda and paradigm shift labeled as “movies” and only loyal to the country as long as the handouts (labeled “entitlements”) keep flowing.

    The formation of the Super-states…each with their spheres of influence in the novel…that formation is taking place now. Latvia, Lithuania, Estonia, Poland, and Romania have expelled Russian diplomats in-line with the U.S. actions. All those nations are heavily-invested in NATO militarily, with tremendous amounts received of American money, materials, and troops. Poland is purchasing U.S. missile and anti-missile systems. Romania already has a U.S. missile base.

    Ukraine expelled Russian diplomats. Ukraine is a vassal state of the United States and the IMF. Most of the European nations such as the Netherlands (The Hague is there, go figure), Germany, France, Britain, Spain…followed suit. The battle right now is to see who will align with the U.S.-British Western hegemony [Oceania] against Russia and her allies (such as Iran, Syria, etc.) [Eurasia] with China being the “top banana” in the Orient [Eastasia]. The English-speaking countries will head the U.S.-British conglomerate…also including Canada and Australia…the former having participated in the expulsion.

    It’s even deeper than the geographical and political distinctions paralleling “1984” when you examine it further. Little by little, as the U.S. becomes more repressive, more controlling, with a “nationalistic” bent driving the framework, the citizenry is becoming isolated. After World War I the United States pursued an isolationist policy, and the policy was reflected in the mindset of the citizens. This current isolation is one that is forced.

    Oh, we’re building a wall to keep out the illegal aliens? Possibly, but look how late in the game it is. Look at how illegal incursions have taken place without any true resistance for more than a century unchecked and unabated.  Why? To satisfy the U.S. corporations’ demands for cheap labor that could be off the books…and the government that turned a blind eye to it because of the taxable revenues made from the corporations. The taxes were paid, and kickbacks were undoubtedly delivered to government officials who managed to look the other way when faced with 100 illegal aliens working in the fields in front of their eyes. Everyone looked away, the corporations made profits, and everyone was happy.

    The main reason to build the wall will not be to prevent illegal aliens from coming into the U.S., but to appear to prevent illegal aliens from coming in. That will be the main reason…subtly swathed in the name of the sacred “interests of national security” phrase we’ve all come to know and love. All the construction will be subject, of course, to taxation, kickbacks, and contracts to keep the flow of taxpayer monies moving out of their pockets and savings accounts into the hands of the rich and powerful. There is also another reason…purposed and insidious they wish the wall.

    A wall will work in the opposite direction as well: to keep the taxpayer-serfs in.

    Slowly but surely, a forced isolation policy is being pursued, and more: the ones traveling will be pursuing a government agenda in their endeavors and it will be limited to those with capital and wealth. We’re seeing it already: the new laws (Don’t you just love that? New laws?) that restrict those with a certain amount owed in taxes, in child support, or whatever…keep them in the country. How about that? The firms and corporations, and their employees…with the “trusted traveler” status…basically a “get-out-of-jail-free” card. Trusted to keep paying the taxes and conform to the existing social, political, and religious order…to be a “nark” on behalf of the government.

    To be the “guy with the watch” in the movie “They Live,” selling out to the aliens.

    All your communications are monitored: every e-mail, every telephone call. Talk to your friends in Moscow from college, and you’ll come up on a watch list. Talk to anyone outside of the U.S. and it’s a guarantee that you’ll be recorded and monitored. The new “Cloud Act” that slid surreptitiously between the thighs of the Omnibus $1.3 trillion spending bill (really…$1.3 trillion, can you imagine all the kickbacks on that one?). The harmless-sounding Cloud Act…giving foreign nations the ability to carry out U.S. government directives “in cooperation,” or “in partnership” …to surveil and monitor U.S. citizens and bypass the U.S. Constitution.

    Marbury vs. Madison is extinct.  Go ahead and take them to court, protest, and write to your Congressman or Senator (accomplishing nothing except identifying and marginalizing yourself). Your suit, your protests, and your letters will go nowhere…and eventually they’ll break you…and you’ll go somewhere…in the middle of nowhere…indefinitely (synonymous with forever). The need for a chargeable offense to arrest you is gone, along with the 4th Amendment…now you just need to be a “suspicious person” and be placed “under investigation.”

    All of this is crafted to make the populations poorer, keep them monitored, and prevent them from interacting with one another as before. Limit their freedom of movement and therefore limit their freedom. This is happening in the other two “spheres of influence” as well. China has a Draconian police state where cameras and stoolies monitor and report every move of the people. China is the “model” (in the words of Kissinger and other globalist-Communists). The police in this country are becoming as the ones in China, with a capitalist agenda: To protect and serve the taxable, corporate entities, and oppress the common taxpayer.

    This is the end-state desired by the creators of the Global Governance. They follow Milton’s words to a tee: “It is better to rule in hell than to serve in heaven.” They will have three spheres, just as in the novel “1984,” and keep the flames of ethnic difference fanned just enough to make War not an eventuality, but a managed, controllable event. War translates into industrial output, use of supplies and materials, and largesse that ends up “boomeranging” and turning into raises and bonuses for politicians (look at Congress “voting” themselves raises and bonuses in the Omnibus bill while simultaneously increasing the “defense” budget).

    War enables favors, contracts, and immunity for oligarchs. A self-sustaining war machine that keeps the three spheres of influence at each other’s throats…while “managing” the people and tying them up in a never-ending loop of consumption, production, impoverishment, debt, and always directed by patriotic fervor.

    In the end, the world will not notice its enslavement, because the generations capable of creative thought and reason will have been replaced by a stultified, obedient mass of humanity only capable of acting in a manner predetermined by the rulers. The world of “1984” is forming today. The Gulags are just around the corner. They’ll have “occupants” as soon as the time is right. Not at gunpoint. The people will enter the camps of their own accord, enslaved with the baits of entitlements and material conveniences. The world of “1984” was written about years ago, but it is upon us, now, and before we know it, we will be in it.

  • AI Researchers Boycott South Korean University Over Plan To Build "Killer Robots"

    It looks like Tesla CEO Elon Musk and Russian President Vladimir Putin aren’t the only ones who’ve envisioned a nightmare scenario where “killer robots” stalk through neighborhoods murdering innocent Americans (or Russians).

    A group of artificial intelligence researchers from nearly 30 countries is boycotting one of South Korea’s most prestigious universities over concerns about a recent partnership with an “ethically dubious” arms manufacturer with the stated purpose to design and manufacture “autonomous weapons systems”.

    The Korea Advanced Institute of Science and Technology (KAIST) and its partner, the weapons manufacturer Hanwha Systems, one of South Korea’s largest arms dealers, are pushing back against the boycott, saying they have no intention of developing “killer robots” – even though the description of the project clearly states its goals, per the Guardian.

    “There are plenty of great things you can do with AI that save lives, including in a military context, but to openly declare the goal is to develop autonomous weapons and have a partner like this sparks huge concern,” said Toby Walsh, the organiser of the boycott and a professor at the University of New South Wales.

    “This is a very respected university partnering with a very ethically dubious partner that continues to violate international norms.”

    What’s worse, the scientists say, is Hanwha’s history of manufacturing and selling cluster munitions and other arms that are banned in more than 120 countries under an international treaty that South Korea, the US, Russia and China have not signed.

    Killer

    Walsh, an Australian professor, became aware of the project after reading a Korea Times article about the partnership. He said he promptly wrote the university asking for more information – but never received a response.

    Walsh was initially concerned when a Korea Times article described KAIST as “joining the global competition to develop autonomous arms” and promptly wrote to the university asking questions but did not receive a response.

    Participants in the boycott have promised not to visit KAIST or host or collaborate with any of its faculty “over fears it could accelerate the arms race to develop autonomous weapons.”

    KAIST opened the controversial research center on Feb. 20. At the time, university leaders said it would “provide a strong foundation for developing national defense technology.”

    The announcement of the initiative, which has since been deleted, said it would focus on “AI-based command and decision systems, composite navigation algorithms for mega-scale unmanned undersea vehicles, AI-based smart aircraft training systems, and AI-based smart object tracking and recognition technology.”

    However, for all their effort, it appears the boycotters are already too late to prevent the creation of killer robots, though the group is still agitating for governments to promise to ban the manufacture, use and distribution of these weapons.

    South Korea’s Dodaam Systems already manufactures a fully autonomous “combat robot”, a stationary turret, capable of detecting targets up to 3km away. Customers include the United Arab Emirates and Qatar and it has been tested on the highly militarised border with North Korea, but company executives told the BBC in 2015 there were “self-imposed restrictions” that required a human to deliver a lethal attack.

    The Taranis military drone built by the UK’s BAE Systems can technically operate entirely autonomously, according to Walsh, who said killer robots made everyone less safe, even in a dangerous neighbourhood.

    “Developing autonomous weapons would make the security situation on the Korean peninsula worse, not better,” he said.

    “If these weapons get made anywhere, eventually they would certainly turn up in North Korea and they would have no qualms about using them against the South.”

    The idea that governments should do more to prevent, or at least regulate, increasingly advanced smart weapons is gaining traction around the world. Last year, Elon Musk surprised his twitter followers by conjuring up an image of robots walking down streets murdering people. While Putin once jokingly mused “how long until the robots eat us?”

  • How To Recognize When Your Society Is Suffering A Dramatic Decline

    Authored by Brandon Smith via Alt-Market.com,

    When historians and analysts look at the factors surrounding the collapse of a society, they often focus on the larger events and indicators — the moments of infamy. However, I think it’s important to consider the reality that large scale societal decline is built upon a mixture of elements, prominent as well as small. Collapse is a process, not a singular event. It happens over time, not overnight. It is a spectrum of moments and terrible choices, set in motion in most cases by people in positions of power, but helped along by useful idiots among the masses. The decline of a nation or civilization requires the complicity of a host of saboteurs.

    So, instead of focusing on the top down approach, which is rather common, let’s start from the foundations of our culture to better understand why there is clear and definable destabilization.

    Declining Moral Compass

    There is always a conflict between personal gain and personal conscience — this is the nature of being human. But in a stable society, these two things tend to balance out. Not so during societal decline, as personal gain (and even personal comfort and gratification) tends to greatly outweigh the checks and balances of moral principles.

    People often mistake the term “morality” to be a religious creation, but this is not what I am necessarily referring to. The concepts of “good” and “evil” are archetypal — that is to say they are psychologically inherent in most human beings from the moment of birth. This is not a matter of faith, but a matter of fact, observed by those in the field of psychology and anthropology over the course of a century of study.  How we relate to these concepts can be affected by our environment and upbringing, but for the most part, our moral compass is psychologically ingrained. It is up to us to either follow it or not follow it.

    Watching how people handle this choice is a bit of hobby of mine, and I do take notes. You can learn a lot about the state of your environment by observing what people around you tend to do when faced with the conflict of personal gain versus personal conscience. It is saddening to admit that even though I live in rural America, where you are more likely to find self-reliance and cultural stability, I can still see a faltering nation bleeding through.

    I have seen supposedly good people act dishonestly in business agreements. I have seen local institutions scam hardworking citizens. I have seen a court system rife with bias and a “good old boy” attitude of favoritism. I have seen local companies pretend to be benevolent contributors to the community while at the same time running constant frauds and rackets. I have even seen a few people within the liberty movement itself put the movement at risk with their own avarice, gluttony, narcissism and sociopathy.

    Again, it is important to make a note of such people and institutions, for as the system continues its downward spiral it is these people that will present the greatest threat to the innocent.

    As Carl Jung notes in his book The Undiscovered Self, there is always a contingent of latent sociopaths and psychopaths within any culture; usually about 10% of the population. In normal times, they, at least most of them, are forced into moral acclimation by the rest of the populace. But in times of decline, they seem to leak out of the woodwork like a slimy fungus. During heightened collapse, they no longer have to pretend to be upstanding and they show their true colors.

    Most dangerous is when latent sociopaths or full blown sociopaths assume roles of leadership or power during the worst of times. With everyone distracted by their own plight, these people can become a cancer, infecting everything with their narcissistic pursuits and causing destruction in their wake.

    Disinterest In Rewarding Conscience

    During wider cultural collapse, it can become “fashionable” to see acts of principle as something to be scoffed at or ridiculed or to even see them as threats to the status quo. The concept of “going along to get along” takes precedence over doing what is right even when it is hard; this attitude is not relegated to the less honest people within society.

    As a system collapses, a fog of apathy can result. Good people can become passive, scrambling to their individual corner of the world and hoping evil times will simply pass them by. The phrase “I just want to put all this behind me” is spoken regularly; but as we ignore the trespasses of terrible men and women, we also enable them. How? Because by doing nothing we allow them to continue their criminality, and we subject future persons and generations to victimization.

    When doing the right thing is treated as laughable or “crazy” by what seems like a majority in the midst of widespread corruption, you are truly in the middle of a great decline.

    In Christian circles, the idea of “the remnant” is sometimes spoken of. In Christian terms, this usually represents a minority of true believers surviving a tumultuous and immoral era. I see “the remnant” not so much as a contingent of Christians alone, but as a contingent of people that continue to maintain their principles and conscience when faced with unprecedented adversity. In the worst of times, these people remain stalwart, even if they are ridiculed for it.

    Disinterest In Independent Effort

    It is said that in this world there are two kinds of people — leaders and followers.  I’m not so sure about that, but I can see why this philosophy is promoted; it helps evil people in power stay in power by encouraging passive acceptance.

    I would say that there are in fact two kinds of people in this world — people who want to control others and the people that just want to be left alone. In life sometimes we are both leaders and followers; we just have to be sure that when we lead we lead by example and not by force, and when we follow, we follow someone worth a damn.

    In any case, passivity is not a solution to determining our roles in society. In most situations, independent action is required by every person to make the world a better place. Yet, in an era of systemic crisis, it is usually independent effort that is the first thing to go out the window. Millions upon millions of people wait around for someone, anyone, to tell them what they should be doing and how they should be doing it. In this way, society finds itself in stasis, frozen in a position of inaction.  Poisonous collectivism wins through mass aggression, but also through mass passivity.

    In fact, when individualists do take action they can be admonished for it during times of societal breakdown, even if their actions have the potential to solve a problem. The idea that one man or woman (or a small group of people) could do anything about anything is sneered at as “fantasy” or “delusion.”  But mass movements of citizens working towards a practical goal are rare, and even more rare is when these movements are not controlled or manipulated to benefit the established order. It is not mass movements that change the world for the better, but individual people and small organizations of the dedicated, acting without permission and without administration.

    It is these individuals and small groups that, over time and through relentless effort, inspire a majority to do what is necessary and right. It is these people that inspire others to finally take leadership in their own lives.

    Individual Self-Isolation

    I write often on the plight of the individual and individual rights within society, and I continue to see the factor of the individual as the most important element in any culture. A culture based on protecting and nurturing individualism and voluntarism is the only culture, in my view, that will ever be successful at avoiding full spectrum collapse. That said, the downside to overt individualism is the danger of self isolation. That is to say, when true individuals only concern themselves with their personal circumstances and ignore the circumstances of the rest of the world, they eventually set themselves up to be crushed by that world.

    Organization on a voluntary basis is not only healthy but vital in the longevity of a society. The more people turn in on themselves and only care about their own general conditions, the easier it is for evil people to do evil things unnoticed. Also, self isolation in the wake of collapse sets individuals up for failure, as no one is capable of surviving without at least some help from a wider pool of knowledge and talents.

    In a system based on corruption, the establishment will encourage self isolation as a means to control the populace. Or, they will offer a false choice, between self isolation versus mindless collectivism. The truth is there is always a middle ground. Voluntary organization and individualism are not mutually exclusive. I call this the “difference between community and collectivism.” A community does not supplant the individual, while a collective requires the complete erasure of individual pursuits and thought.

    If you find yourself surrounded by people who refuse any organization, even practical and voluntary organization in the face of instability, then your society may be in the latter stages of a collapse.

    Disaster Denial

    Even as a crisis or collapse unfolds, if a society actually reels or reacts to it and takes note of the problem, there is hope for that society. If, however, that society willfully ignores the danger and denies it exists when presented with overwhelming evidence, then that society will likely suffer complete disintegration and will probably have to start all over from scratch — hopefully with a set of principles and ideals based on conscience and honor.

    The strength of a culture can be measured by its willingness to self reflect. Its survival can be determined by its willingness to accept its flaws when they arise and its willingness to repair the damage done. Self-aware societies are difficult to corrupt or control. Only in denial can people be easily manipulated and enslaved.

    If you cannot accept the reality of the abyss, you cannot move to avoid it or prepare yourself to survive the fall. I see this issue as perhaps the single most important element in the fight to save the portions of our society worth saving. Educating people on the blatant facts behind our own national decline can dissolve the wall of denial, and perhaps we will find when disaster strikes that there are far more awake and aware individuals ready to act than we originally thought.

  • Obama State Department Spent $9 Million With Soros To Meddle In Albanian Politics

    President Obama’s State Department and the U.S. Agency for International Development (USAID) spent nearly $9 million on an Albanian political reform campaign coordinated with billionaire George Soros, according to 32 pages of State Department documents obtained by Judicial Watch via a Freedom of Information Act lawsuit. 

    Working with Soros’ Open Society Foundation, USAID channeled the funds into a “Justice for All” campaign aimed at reforming the socialist government’s judicial system in 2016. 

    “The Obama admin spent at least $9 million in tax dollars in direct collusion with left-wing billionaire George Soros to back socialist gov in Albania,” wrote Judicial Watch President Tom Fitton in a statement. “The records also detail how the Soros operation helped the State Department review grant applications from other groups for taxpayer funding,” Fitton added. 

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    “George Soros is a billionaire and he shouldn’t be receiving taxpayer support to advance his radical left agenda to undermine freedom here at home and abroad,” said Fitton.

    A memo from April 2016 also reveals that the U.S. Embassy in Tirana “sponsored” a survey with the Open Society Foundation to determine whether Albanians had “knowledge, support and expectations on judicial reform.” The survey revealed that 91% of respondents believed in the need for judicial reform. A corresponding memo obtained by Judicial Watch dated February 2017 corroborates the arrangement.

    The State Department pushed back following the Judicial Watch publication – telling Fox News that the agency did not directly provide grants to Soros’s Open Society Foundation (OSF) in Albania. Instead, as the documents show, the US embassy in Tirana and the OSF “each provided funding to a local organization to conduct a public opinion poll on attitudes towards the Judicial Reform effort,” according to a February 2017 document. 

    Last year Senator Mike Lee (R-UT) and five other Senators called on Secretary of State Rex Tillerson to immediately investigate how US taxpayer funds ended up supporting Soros-backed, leftist political groups in several Eastern European countries including Macedonia and Albania.  According to the letter, potentially millions of taxpayer dollars are being funneled through USAID to Soros’ Open Society Foundations with the explicit goal of pushing his progressive agenda.

    Foundation Open society-Albania and its experts, with funding from USAID, have created the controversial Strategy Document for Albanian Judicial Reform,” the letter read. “Some leaders believe that these ‘reforms’ are ultimately aimed to give the Prime Minister and left-of-center government full control over the judiciary.”

    As the Daily Caller’s Andrew Kerr notes, Albanian opposition leaders to the ruling left-wing party took to calling the judicial reform effort a “Soros-sponsored reform.”

    USAID and Soros

    As Fox News pointed out at the time, USAID gave nearly $15 million to Soros’ Foundation Open Society – Macedonia, and other Soros-linked organizations in the region, in the last 4 years of Obama’s presidency alone.

    The USAID website shows that between 2012 and 2016, USAID gave almost $5 million in taxpayer cash to FOSM for “The Civil Society Project,” which “aims to empower Macedonian citizens to hold government accountable.” USAID’s website links to www.soros.org.mk, and says the project trained hundreds of young Macedonians “in youth activism and the use of new media instruments.”

    The State Department told lawmakers that in addition to that project, USAID has recently funded a new Civic Engagement Project which partners with four organizations, including FOSM. The cost is believed to be around $9.5 million.Fox News

    Similar efforts in Hungary were blasted in early 2017 by Prime Minister Viktor Orban, who expressed concern about Soros meddling in his country’s political fights, and warned about Soros’ “trans-border empire.” Hungarian Foreign Minister Péter Szijjártó told Fox News last month that they hoped that with a change in administration in Washington, the Soros-led push against their government would decrease.

    “I think it is no secret and everyone knows about the very close relationship between the Democrats and George Soros and his foundations. It is obvious that if Hillary Clinton had won then this pressure on us would be much stronger. With Donald Trump winning we have the hope that this pressure will be decreased on us,” he said.

    Widely cited as an example of Soros’ influence during the Obama administration was a 2011 email, published by WikiLeaks, in which Soros urged Hillary Clinton to take action in Albania over recent demonstrations in the capital of Tirana.  Among other things, Soros urged Clinton to “bring the full weight of the international community to bear on Prime Minister Berisha and opposition leader Edi Rama.”

    Dear Hillary,

     

    A serious situation has arisen in Albania which needs urgent attention at senior levels of the US government. You may know that an opposition demonstration in Tirana on Friday resulted in the deaths of three people and the destruction of property. There are serious concerns about further unrest connected to a counter-demonstration to be organized by the governing party on Wednesday and a follow-up event by the opposition two days later to memorialize the victims. The prospect of tens of thousands of people entering the streets in an already inflamed political environment bodes ill for the return, of public order and the country’s fragile democratic process.

    I believe two things need to be done urgently:

    1. Bring the full weight of the international community to bear on Prime Minister Berisha and opposition leader Edi Rama to forestall further public demonstrations and to tone down public pronouncements.

    2. Appoint a senior European official as a mediator.

    While I am concerned about the rhetoric being used by both sides, I am particularly worried about the actions of the Prime Minister. There is videotape of National Guard members firing on demonstrators from the roof of the Prime Ministry. The Prosecutor (appointed by the Democratic Party) has issued arrest warrants for the individuals in question. The Prime Minister had previously accused the opposition of intentionally murdering these activists as a provocation.

    After the tape came out deputies from his party accused the Prosecutor of planning a coup d’etat in collaboration with the opposition, a charge Mr. Berisha repeated today. No arrests have been made as of this writing. The demonstration resulted from opposition protests over the conduct of parliamentary elections in 2009. The political environment has deteriorated ever since and is now approaching levels of 1997, when similar issues caused the country to slide into anarchy and violence. There are signs that Edi Rama’s control of his own people is slipping, which may lead to further violence.

    The US and the EU must work in complete harmony over this, but given Albania’s European aspirations the EU must take the lead. That is why I suggest appointing a mediator such as Carl Bildt. Martti Ahtisaari or Miroslav Lajcak, all of whom have strong connections to the Balkans.

    My foundation in Tirana is monitoring the situation closely and can provide independent analysis of the crisis.

    Thank you, George Soros

    Not surprisingly, within a few days, A U.S. envoy was dispatched.

  • Syrian Showdown: Trump Versus The Generals

    Authored by Patrick Buchanan via Buchanan.org,

    With ISIS on the run in Syria, President Trump this week declared that he intends to make good on his promise to bring the troops home.

    “I want to get out. I want to bring our troops back home,” said the president. We’ve gotten “nothing out of the $7 trillion (spent) in the Middle East in the last 17 years. … So, it’s time.”

    Not so fast, Mr. President.

    For even as Trump was speaking he was being contradicted by his Centcom commander Gen. Joseph Votel.

    “A lot of good progress has been made” in Syria, Votel conceded, “but the hard part … is in front of us.”

    Moreover, added Votel, when we defeat ISIS, we must stabilize Syria and see to its reconstruction.

    Secretary of State Rex Tillerson had been even more specific:

    “It is crucial to our national defense to maintain a military and diplomatic presence in Syria, to help bring an end to that conflict, as they chart a course to achieve a new political future.”

    But has not Syria’s “political future” already been charted?

    Bashar Assad, backed by Iran and Russia, has won his seven-year civil war. He has retaken the rebel stronghold of Eastern Ghouta near Damascus. He now controls most of the country that we and the Kurds do not.

    According to The Washington Post, Defense Secretary James Mattis is also not on board with Trump and “has repeatedly said … that U.S. troops would be staying in Syria for the foreseeable future to guarantee stability and political resolution to the civil war.”

    Saudi Crown Prince Mohammad bin Salman, who fears a “Shiite corridor” from Tehran to Baghdad, Damascus and Beirut, also opposes Trump. “If you take those (U.S.) troops out from east Syria,” the prince told Time, “you will lose that checkpoint … American troops should stay (in Syria) at least for the mid-term, if not the long-term.”

    Bibi Netanyahu also wants us to stay in Syria.

    Wednesday, Trump acceded to his generals. He agreed to leave our troops in Syria until ISIS is finished. However, as the 2,000 U.S. troops there are not now engaging ISIS — many of our Kurd allies are going back north to defend border towns threatened by Turkey — this could take a while.

    Yet a showdown is coming. And, stated starkly, the divide is this:

    Trump sees al-Qaida and ISIS as the real enemy and is prepared to pull all U.S. forces out of Syria as soon as the caliphate is eradicated. And if Assad is in power then, backed by Russia and Iran, so be it.

    Trump does not see an Assad-ruled Syria, which has existed since the Nixon presidency, as a great threat to the United States. He is unwilling to spill more American blood to overturn the outcome of a war that Syria, Iran and Russia have already won. Nor is he prepared to foot the bill for the reconstruction of Syria, or for any long-term occupation of that quadrant of Syria that we and our allies now hold.

    Once ISIS is defeated, Trump wants out of the war and out of Syria.

    The Israelis, Saudis and most of our foreign policy elite, however, vehemently disagree. They want the U.S. to hold onto that slice of Syria east of the Euphrates that we now occupy, and to use the leverage of our troops on Syrian soil to effect the removal of President Assad and the expulsion of the Iranians.

    The War Party does not concede Syria is lost. It sees the real battle as dead ahead. It is eager to confront and, if need be, fight Syrians, Iranians and Shiite militias should they cross to the east bank of the Euphrates, as they did weeks ago, when U.S. artillery and air power slaughtered them in the hundreds, Russians included.

    If U.S. troops do remain in Syria, the probability is high that Trump, like Presidents Bush and Obama before him, will be ensnared indefinitely in the Forever War of the Middle East.

    President Erdogan of Turkey, who has seized Afrin from the Syrian Kurds, is threatening to move on Manbij, where Kurdish troops are backed by U.S. troops. If Erdogan does not back away from his threat, NATO allies could start shooting at one another.

    As the 2,000 U.S. troops in Syria are both uninvited and unwelcome, a triumphant Assad is likely soon to demand that we remove them from his country.

    Will we defy President Assad then, with the possibility U.S. planes and troops could be engaging Syrians, Russians, Iranians and Shiite militias, in a country where we have no right to be?

    Trump is being denounced as an isolationist. But what gains have we reaped from 17 years of Middle East wars – from Afghanistan to Iraq, Syria, Libya and Yemen – to justify all the blood shed and the treasure lost?

    And how has our great rival China suffered from not having fought in any of these wars?

  • Global Trade War Could Not Have Come At A Worse Time

    Despite all the propaganda that the world had reached utopian levels of ‘globally synchronous recovery’ growth last year, 2018 has seen that narrative collapse as China’s credit impulse dries up, The Fed continues on its path to ‘normalization’, and the world wakes up to Europe’s smoke and mirrors economic renaissance…

    And, as if that was not enough to spook even the most ardent bull, Bloomberg notes that rapidly accelerating trade ‘battles’ are focusing minds on that simmering threat to markets: the eventual easing of synchronized global growth.

    The U.S. version – which includes economic, credit and corporate indicators – is close to its 2007 peak.

    The trade war tensions have arrived at a risky time, with Morgan Stanley’s cycle gauge for the developed world nearing levels last seen before prior recessions.

  • Is The 'Ring Of Fire' Becoming More Active?

    Authored by Dominic Faulder and Erwida Maulia via The Nikkei Asian Review,

    Recent eruptions prompt calls for better building standards and evacuation plans in Southeast Asia…

    When Bali’s Mount Agung started rumbling last September, authorities on the Indonesian resort island — mindful of the destruction the 3,000-meter volcano had caused in 1963 — began warning residents to evacuate. Tremors of varying intensity continued until Nov. 21, when it finally began to erupt, forcing as many as 140,000 people to seek refuge. More than four months later, it still hasn’t stopped.

    On Jan. 23, Mount Kusatsu-Shirane, about 150km northwest of Tokyo, astounded the Japan Meteorological Agency when it suddenly erupted 2km from one of 50 areas around the country kept under constant video surveillance. Falling debris killed a member of the Ground Self-Defense Force who was skiing nearby and injured five others.

    At much the same time, Mount Mayon in the Philippines began spewing ash and lava, displacing more than 56,000 people.

    Then, in mid-February, Mount Sinabung in Sumatra, Indonesia, blew spectacularly, sending billowing pillars of steam and superheated ash over 7km into the air. People fled, and schoolchildren ran home wailing.

    Sinabung’s eruption was followed in late February by a magnitude-7.5 earthquake in Papua New Guinea, its worst in a century. Earlier in the month, a magnitude-6.4 quake rocked Taiwan’s Hualien County, tilting buildings and killing 17.

    Such seismic restiveness in Japan, the Philippines and Indonesia is a fact of life along the “ring of fire,” the horseshoe-shaped belt in the Pacific Ocean that is home to about three-quarters of the world’s most active volcanoes.

    Yet after what some experts call a relatively subdued 20th century for seismic activity, the 21st has seen an uptick in “great” earthquakes. And the first 18 years of this century has seen about 25 significant volcano eruptions globally, compared with some 65 in the entire 20th century.

    Whether or not seismic activity is kicking into higher gear, it has already taken a heavy toll in Asia this century, producing deadly earthquakes in Indonesia in 2004 and Japan in 2011, among other countries. This has taken place against a backdrop of rapid population and economic growth in Southeast Asia, where some countries have been slow to confront the threat of natural disasters. (See Asia seeks to improve its record on disaster preparedness)

    Professor Yoshiyuki Tatsumi of the Kobe Ocean-Bottom Exploration Center at Kobe University says the recent volcanic activity in Asia is “just the ring of fire being as it has always been in history.” The key, he told the Nikkei Asian Review, is to ensure that governments and scientists are prepared for eruptions before the signs are visible. “We have to be aware that we are living in a region where volcanic activity is almost always there.” 

    The recent surprise eruption in Japan is a salutary reminder of the unpredictability of these events. “We are now retrospectively investigating whether our sensors were picking up slight signs,” said professor Yasuo Ogawa from the Volcanic Fluid Research Center of the Tokyo Institute of Technology. “But the fact is that we were not able to predict it in advance this time.”

    The challenge is great in Indonesia, home to 127 volcanoes — more than half of which must be continuously monitored for activity. “The truth is that the chain of volcanoes in the Sunda Islands of Indonesia, from Sumatra through Java and Bali to Timor, constitutes the most dangerous of the world’s tectonic interfaces,” professor Anthony Reid wrote in October on New Mandala, an Australian National University website.

    Reid noted that Indonesia had a mild 20th century in seismic terms, and warned that things might be changing. “The 21st century has in its first decade already far exceeded the number of casualties from … the whole 20th century” in Indonesia, he said.

    The massive death toll largely comes down to one event. Triggered by a magnitude-9.2 earthquake off northern Sumatra, the third-largest in history, the Indian Ocean tsunami of 2004 was the most deadly ever recorded. Affecting 14 countries surrounding the Indian Ocean, it killed almost 240,000 people, over 70% of them in Indonesia’s Aceh Province.

    Schoolchildren watch a massive pillar of ash erupt from Indonesia’s Mount Sinabung on Feb. 19.   © AP

    Of the 300 volcanoes in the Philippines, 24 are “active,” or have recorded at least one eruption in the last 10,000 years, Renato Solidum, head of the Philippine Institute of Volcanology and Seismology (Phivolcs), told Nikkei. Phivolcs also monitors Mount Kanlaon in the central Philippines and Mount Bulusan, 70km away from Mount Mayon. Lower alert levels have been assigned to them, and neither is thought to pose an imminent threat.

    Mount Mayon, a stratovolcano with an iconic cone shape, is the most active volcano in the Philippines, having erupted some 60 times since the 17th century. Its recent belligerence triggered evacuations in 2009 and 2014. The latest alert level was downgraded in early March from 4 out of a possible 5 to 2, but a 6km exclusion zone remains in place.

    Volcanoes and earthquakes are seismic twins, born of the natural bumping and grinding of the world’s tectonic plates, a timeless process unrelated to global warming and climate change. Mankind’s mistreatment of the environment will not cause volcanoes to erupt, or the earth to move, but seismic events do have powerful impacts on the environment.

    Earthquakes collapse buildings, destroy infrastructure and ground aircraft. Those at sea can generate tsunamis when plate subductions displace vast amounts of seawater and send it racing to shore at the speed of a jumbo jet, slowing and rising as it arrives. Northern Japan’s magnitude-9.0 earthquake and subsequent tsunami in March 2011 killed nearly 16,000 people.

    The Indonesian archipelago is located amid four major tectonic plates — the Eurasian, Indo-Australian, Pacific and Philippine — making it the world’s most earthquake-prone region. A meeting point of two plates — called a megathrust segment — stretches between the Sunda Strait and the southern sea off Java, close to Jakarta.

    Because the segment has not experienced quakes in recent centuries, some worry that a powerful shift is on the way that could affect Jakarta.

    “We call it a seismic gap,” Danny Hilman Natawidjaja, an earthquake geologist at the Indonesian Institute of Sciences, told Nikkei. “That means the segment has potential for a major earthquake, as a very high amount of energy may have been accumulating.” Natawidjaja believes a magnitude-8.5 or larger earthquake to be quite possible, but there is no way of telling if this will happen. “It can be in the next several years or somewhere in the coming decades.”

    Further eruptions and earthquakes are a natural certainty, but predicting them is much harder than measuring their scale and impact after the event. The relative mildness of the 20th century contrasts with the incredible ferocity of volcanic activity in the preceding century.

    Global catastrophe

    The first time a volcano truly made news is well-known: at precisely 10:02 a.m. on Aug. 27, 1883, the “day the world exploded.” The eruption of Krakatoa in the Sunda Strait west of Java in what was then the Dutch East Indies, when Jakarta was called Batavia, was heard thousands of kilometers away in Australia. Through the advent of the submarine telegraph and newswire services, the disaster was also known about in real time in all the capitals of the modern world.

    News of the 1883 Krakatoa disaster traveled the globe in real time thanks to the advent of the submarine telegraph and newswire services.   © Getty Images

    In his book “Krakatoa,” British author Simon Winchester describes this apocalyptic occurrence in what is today Indonesia as the day “the modern phenomenon known as the global village was born.” Krakatoa was not only the world’s first shared news event, it was also the world’s last truly global environmental catastrophe wrought by Mother Nature.

    It affected climate and food production in all parts of the world as volcanic pollution of the upper atmosphere induced a worldwide wintering that lasted five years. The 1969 Hollywood film “Krakatoa: East of Java” wrongly placed the three collapsed volcanoes involved. Forming a natural memorial to these volcanoes today is Anak Krakatoa, or “child of Krakatoa,” which rose from the sea in 1928, evidence of lingering activity.

    Krakatoa was catastrophic. Many of the 35,000 killed at the time were victims of the tsunamis it generated. The population of the East Indies was then some 34 million, about 13% of today’s estimated 266 million — a clue to the possible impact of a future mega-event.

    Nobody alive today has any experience of an eruption of Krakatoa’s magnitude. The great blasts of Mount St. Helens in the U.S. in 1980 and Mount Pinatubo in the Philippines in 1991, which killed over 800 people, were smaller by comparison.

    Since 1982, experts have measured the power of volcanoes using the logarithmic volcanic explosivity index (VEI), which ranges from 0 to 8. A VEI 1 volcano, such as those found on Hawaii’s large southernmost island that are constantly venting lava flows, is benign compared with a VEI 6 like Krakatoa, which was 100,000 times more powerful. Pinatubo, the most serious eruption in the region in the past 50 years, also has a VEI 6 rating, but its eruption was considerably less potent than Krakatoa’s.

    For all its infamy, Krakatoa was not the worst eruption in its century and region. A few elderly people alive in 1883 might actually have recalled the even deadlier 1815 eruption of Mount Tambora on Sumbawa Island, which killed over 90,000 people in its immediate aftermath. Tambora was a VEI 7, with 10 times the explosivity of Krakatoa.

    It emitted a toxic cloud of ash that cooled and darkened the world for years, triggering famine, pestilence and civil disorder. There were food riots in Switzerland and freak winters in China’s Yunnan Province. The massive volcano, which sits in Indonesia’s West Nusa Tenggara Province, and its repercussions were blamed for a cholera epidemic that killed even more people five years later in Java. The most powerful eruption in recorded history, its effect was incomparably pervasive. Even the extraordinary hues in the skies and sunsets painted by one of Britain’s most celebrated artists, J.M.W. Turner, are attributed to it.

    The following year, 1816, was to be remembered in many lands as the year without summer. The extent of Tambora’s damage is better recorded in North America, Europe and China than in Southeast Asia because of more systematic records. Although Tambora was the largest eruption in thousands of years, scientists have been able to determine from evidence such as residues in the polar ice caps that Mount Samalas also wrought recent global havoc in 1257, sending record volumes of sulfur dioxide and other noxious gases into the atmosphere. Samalas belongs to the Mount Rinjani volcanic complex on the Indonesian island of Lombok.

    Like ‘opening an umbrella’ 

    Indonesia’s volcanoes are monitored by the Center for Volcanology and Geological Hazard Mitigation, or PVMBG. It advises on timely evacuations that locals sometimes grow weary of observing. When Mount Agung erupted in 1963, it went on for a year and left 1,500 dead while President Sukarno suppressed the news for political reasons. Casualties this time have so far been kept to zero.

    Citing recorded conditions of large volcanoes like Mount Agung and Mount Semeru in East Java, Surono, a former PVMBG chief, believes the chances of a second Tambora to be very small, and that there would be plenty of opportunity for advance warning in such an event. “There is no volcano erupting without giving out early signs,” Surono told Nikkei. “It’s like rain starting with drizzle — giving you a chance to open an umbrella.”

    In Japan, professor Tatsumi has found a new reason to be concerned, however. In a paper in February, he reported the existence of gigantic lava dome in a Japanese supervolcano, the Kikai caldera — a VEI 8 category potentially 10 times more powerful than Tambora. According to Tatsumi, pressure is building up inside the 32-cu.-km offshore lava dome that last erupted some 7,300 years ago.

    Tatsumi believes volcanologists actually have very little idea of what to expect from the world’s largest volcanoes, and others have remarked on how speedily they may prime themselves. “I would imagine there will be some signs like tremors, but mankind has not determined the mechanism of supervolcano eruptions, how they occur,” he said. “If it erupts, it can kill 90 million people in the worst-case scenario.” He predicts 50cm ash layers in Osaka and 20cm in Tokyo if the Kikai dome blows its top.

    There are a dozen or so VEI 8 supervolcanoes around the world that erupt full bore incredibly infrequently. The grandfather of them all is Yosemite in the U.S. state of Wyoming, but closer to home lurks Lake Toba in northern Sumatra and Lake Taupo on New Zealand’s North Island, both massive stretches of water. There is also the Aira caldera on the southern Japanese main island of Kyushu.

    Given the rarity of supervolcano eruptions, Tatsumi’s prediction for Kikai is not comforting: a 1% chance over the next 100 years. When the Great Hanshin-Awaji Earthquake devastated Kobe in 1995, killing over 6,400 people, the predicted likelihood for such an event was 1% in 30 years. “So, 1% in 100 years is actually a code word for ‘anytime soon,'” said Tatsumi. Others debate whether Yosemite, which could kill billions in a worst-case scenario, is due for a blast in 50,000 years — or already overdue by 20,000 years.

    Mount Merapi, Indonesia’s most active volcano, forced hundreds of thousands of people to evacuate their homes in 2010.   © Getty Images

    Still, it is clearly the much more frequent VEI 4-6 eruptions, with their proven capacity to disrupt normal life, that pose the greatest threat, particularly in a world that has become so dependent on aviation. When Mount Merapi in central Java, Indonesia’s most active volcano, erupted in late 2010, it killed over 350 people and forced the evacuation of some 410,000 others. Merapi is rated a VEI 4, compared with Mount Agung’s VEI 5 in 1963.

    The Philippines remains less preoccupied with volcanoes than the “Big One” — the unoriginal term the media have coined to describe a possible major earthquake affecting Metro Manila. The West Valley Fault runs through the capital of over 13 million souls.

    According to a 2004 study conducted by Phivolcs, Metro Manila Development Authority and the Japan International Cooperation Agency, the West Valley Fault could generate a magnitude-7.2 earthquake. The fault manifests itself every four to six centuries, and last caused grief in the 1600s. “Perhaps it can move in our lifetime,” said Solidum. “So better if we prepare.”

    Philippine President Rodrigo Duterte brought the issue up in his state of the nation address last July. Two weeks earlier, four people had perished in a magnitude-6.5 temblor in the central Philippines. “We were told that it is no longer a question of ‘if’ but a matter of ‘when’,” said Duterte. “We need to act decisively and fast because the threat is huge, real, and imminent.”

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