Today’s News 25th September 2017

  • People Ignore Facts That Contradict Their False Beliefs

    Authored by Eric Zuesse via The Strategic Culture Foundation,

    The more people there are who ignore facts that contradict their beliefs, the likelier a dictatorship will emerge within a given country.

    Here is how aristocracies, throughout the Ages, have controlled the masses, by taking advantage of this widespread tendency people have, to ignore contrary facts:

    What social scientists call “confirmation bias” and have repeatedly found to be rampant, is causing the public to be easily manipulated, and has thus destroyed democracy by replacing news-reporting, by propaganda – ‘news' that’s false – in a culture where lies which pump the agendas of the powerful (including lies pumped by the billionaire owners of top ‘news’media and of the media they own) are almost never punished (and are often not even denied to be true). Thus, lies by those powerful liars almost always succeed at enslaving the minds of the millions, to believe what the top economic-and-power class want those millions of people to believe — no matter how false it might happen actually to be. 

    Recently, a particularly stark example of this came to my attention. On 15 September 2017, an article that I wrote for the Strategic Culture Foundation, and which was titled by a true statement that I had only recently discovered to be true, was republished at a news-site that I consider one of the best around, “Signs of the Times” or “SOTT” for short, and a reader-comment there, simply rejected that title-statement and the entire article, because it contradicted what the person believes. This commenter entirely ignored the evidence that I had provided in the article, which proved the statement to be true. 

    No matter how irrefutable the evidence is, most people reject anything which contradicts their deeply entrenched false beliefs, and this reader-comment crystallized for me, this phenomenon of “confirmation bias” — the phenomenon of ignoring evidence that contradicts what one believes.

    The article was titled “Liberalism doesn’t respect a nation’s sovereignty.” I never knew that fact until I researched it, but I found, after looking through (and my article quoting key documents from) the history of the matter, that it’s actually the case: that liberalism (as it’s understood and defined by the scholars of the subject, and as it’s based upon the key formative documents of the historical tradition, “liberalism”) rejects a nation’s sovereignty. This fact shocked me to discover; so, I wrote an article documenting it, and SCF accepted it, and it then became republished at a few other sites, including SOTT.

    The reader-comment at SOTT which for me personified confirmation-bias, was (in its entirety): “This is a rather new twist blaming liberals for invading countries. I've always associated liberalism with the left wing and democratic, progressive politics. I've always associated conservatism with the right wing, big business, militarism and invading other countries. Trying to move the goal posts, are we?”

    That person never clicked onto my article’s links documenting the case, nor even read the quotations given in the article itself from John Locke and from Adam Smith, who were key founders of “liberalism” as that tradition has come down to us. He instead ignored all of that evidence, and stated — entirely without evidence of any sort — that I (and SOTT, and SCF, for publishing it) were “Trying to move the goal posts.”

    I (a Bernie Sanders voter, and a lifelong progressive and opponent of conservatism) am “Trying to move the goal posts” — how? By pointing out the manufactured phoniness of ‘liberalism’? By pointing out a key way in which liberalism was designed by its aristocratic sponsors (in this case by the aristocrats who sponsored Locke and Smith), to be an ideology that would encourage conquest, empire, and discourage democracy (which is based upon the sanctity of national sovereignty — based upon the lack of imposition of government by or on behalf of anyone who isn’t a resident on the land). Liberalism, I show there, was designed for Empire, not for democracy. That reader simply refused to consider the evidence.

    People who insist upon deceiving themselves disgust me. Anyone who blocks out the key relevant facts and persists in believing the lies they were raised with, or became fooled into believing, doesn’t harm only themselves by the lies they believe; they vote on the basis of the lies they believe, and thus these people who refuse to be open-minded destroy democracy, and invite control of the nation by the aristocracy (who sponsor the proponents of those lies). People who refuse to question their own beliefs, become increasingly putrid pools of their own false beliefs, which have been created and nurtured and sustained and become larger and larger pools of lies, by constant repetition from the media and lobbyists of the rich and powerful, so as to enable the exploiters to enslave the masses, via those constantly repeated and embellished lies. 

    Such self-‘justifying’ fools, who refuse to clean-up their conceptual pool that’s been increasingly polluted by lies, are enemies of democracy, no matter how much they may consider themselves to be ‘liberals’. They don’t even know the reality of what liberalism is. One thing that it definitely is not (as my article documented) is progressivism (which is utterly opposed to foreign conquest and to the entire imperial project of imposed rule, regardless whether by outright invasions or else by coups).

    Thus, we have two dominant ideologies against progressivism: One is conservatism, which everyone recognizes to be against progressivism and for Empire and constant conquest, profitable war for the arms-merchants and for the ‘news’media owners who also benefit from stirring up invasion-fever, not only like William Randolph Hearst did but today like they all do. The other is liberalism, which hides that it’s actually conservative — hides this, by being ever-so-sweet toward certain ethnicities or other groups that are being oppressed domestically, and by vociferously condemning conservatives for what is actually nothing more than the blatancy of conservatism’s favoritism toward the aristocracy.

    An authentic democracy cannot be based upon a “demos” (a public) that is overwhelmingly composed of suckers – manipulated fools. Only by means of the tiny aristocracy plus the huge mass of their suckers, does a democracy degenerate into a fascism. (For example, something like this can be supported overwhelmingly by the political Party that dominates the U.S. Senate, the U.S. House, state capitals, state legislatures, and runs the U.S. White House, in this ‘democratic’ nation — ‘democratic’ according to the propaganda; but if this were really a democracy, then none of those politicians would be able to win public office.)

    *  *  *

    A well-established central finding of psychological research, concerning “confirmation bias” or “motivated reasoning” (which are two phrases referring to people’s tendency to believe whatever they want to believe, regardless of any contrary facts), is that individuals evaluate whatever they read or hear according to their pre-existing ideas about the given subject. Specifically, psychologists have found that people tend to pay attention to whatever confirms their existing ideas, and tend to ignore whatever contradicts those pre-established beliefs.

    For examples, the following studies are available online:

    “Motivated Skepticism in the Evaluation of Political Beliefs,” in the July 2006 American Journal of Political Science, reported: “We find a confirmation bias – the seeking out of confirmatory evidence – when [people] are free to self-select the source of arguments they read. Both the confirmation and disconfirmation biases lead to attitude polarization … especially among those with the strongest priors [prior beliefs] and highest level of political sophistication [the highest degree of exposure to, and involvement in, the given subject-matter that the study was dealing with].” Prejudices were stronger among supposed experts than among non-“experts”: The more indoctrinated a person was, the more prejudiced. “People actively denigrate the information with which they disagree, while accepting compatible information almost at face value.” Moreover, “Those with weak and uninformed attitudes show less bias” (and this is actually one reason why the best jurors at trials are generally people who are not personally or professionally involved in any aspect of the given case – they are “non-experts”).

     

    Sharon Begley’s article in the 25 August 2009 Newsweek titled “Lies of Mass Destruction: The same skewed thinking that supports a Saddam-9/11 link explains the power of health-care myths [such as that Obama’s health plan had ‘death panels’]” summarized the study in the May 2009 Sociological Inquiry, “‘There Must Be a Reason’: Osama, Saddam, and Inferred Justification,” which had surveyed, during October 2004, 49 conservative Republicans who admitted they believed that Saddam Hussein had caused the 9/11 attacks. This study found that 48 of these 49 extreme conservatives were utterly impervious to the overwhelming factual evidence which was provided to them by the presenters that contradicted this false belief they held.

     

    A study concerning not political conservatism but merely resistance to new technologies is James N. Druckman’s “Framing, Motivated Reasoning, and Opinions about Emergent Technologies,” which was presented at a technological conference in 2009. He reported that, “factual information … is perceived in biased ways … (e.g., there is motivated reasoning).” “Facts have limited impact on initial opinions.” Moreover, “Individuals do not privilege the facts. … Individuals process new factual information in a biased manner. … Specifically, they view information consistent with their prior opinions as relatively stronger, and they view neutral facts as consistent with their existing” views.

     

    “Motivated Reasoning With Stereotypes,” in the January 1999 Psychological Inquiry, found that, “When an applicable stereotype supports their desired impression of an individual, motivation can lead people to activate this stereotype, if they have not already activated it. … People pick and choose among the many stereotypes applicable to an individual, activating those that support their desired impression of this individual and inhibiting those that interfere with it.” Similarly, another research report, “The Undeserving Rich: ‘Moral Values’ and the White Working Class,” in the June 2009 Sociological Forum, found that John Kerry had probably lost the 2004 U.S. Presidential election to George W. Bush at least partly because white working class voters overwhelmingly believed that Bush was like themselves because he behaved like themselves, and that Kerry was not like themselves because his manner seemed “snooty.”

  • China's ICO Crackdown Boosts Hong Kong's Hopes Of Becoming Blockchain Hub

    China’s decision to shutter digital-currency exchanges based on the mainland, a strategy meant to extinguish the rampant fraud and abuse associated with initial coin offerings, or ICOs, is brightening Hong Kong's hopes of asserting itself as a hub for blockchain technology.

    As Bloomberg reports, while China has at least nominally embraced blockchain technology – even building a prototype digital yuan – Hong Kong’s city government has gone a step further by encouraging blockchain startups to set up shop in the city. One firm run by Johnson Leung, who has found success in finance and shipping, and now runs a blockchain startup, is focusing on applications for container ship operators.

    The city’s embrace of blockchain is its latest attempt to nurture a domestic technology industry that could compliment the city’s dominance in banking and shipping. But as Bloomberg notes, betting on blockchain, a technology that has generated a ludicrous amount of hype, much of it undeserved, could be a risky proposition. Despite Hong Kong’s status as a financial hub, the city, one of the most expensive in the world for average working families, has zero “unicorns” – a term for startups valued at over $1 billion.

    Skeptics say it’s a risky bet on an unproven technology – one with more than its fair share of hype and, in some cases, fraud. But a growing number of Hong Kong entrepreneurs and policy makers are convinced the online ledger system that underlies cryptocurrencies like bitcoin will eventually reshape everything from financial services to supply chains. They say the city’s laissez faire approach toward regulation, along with its expertise in finance and logistics, make it a natural hub for blockchain startups.

     

    “I don’t see why Hong Kong can’t be a leader of blockchain technology,” said Leung, who co-founded 300cubits.tech after more than a decade in the financial industry that included stints as a research analyst at JPMorgan Chase & Co. and Jefferies Group LLC. “It’s so new that it’s not like any country has a huge advantage compared to us.”

    As Bloomberg explains, the city’s government has been throwing resources at the technology, developing its own digital currency and testing different blockchain use-cases.

    The city’s monetary authority is developing its own digital currency and is testing blockchains for trade finance, mortgage applications and e-check tracking. Hong Kong’s securities regulator has joined R3, a global consortium that develops blockchain technology for financial transactions, while a government-backed research institute has worked on a blockchain-based system for tracking property valuations, among other initiatives. Hong Kong Exchanges & Clearing Ltd., the city’s publicly-traded exchange monopoly, plans to start a blockchain platform for early-stage companies and their investors next year.

     

    “Blockchain is a very high priority for us,” said Charles d’Haussy, head of fintech at InvestHK, a government economic development agency.

    To be sure, the city is, like China, imposing restrictions on some of the shadier aspects of the blockchain ecosystem – namely ICOs, a new financing trend that involves selling a digital token that’s tied to a given platform or product. In theory, these tokens should get more valuable as the underlying product becomes more widely used. Some ICOs have raised millions of dollars, all without a working prototype – only a white paper that sketches out the company’s idea.

    That doesn’t mean Hong Kong is giving the industry carte blanche. This month, the city’s Securities and Futures Commission told investors to be on the lookout for fraud in initial coin offerings – a form of cryptocurrency fundraising – and warned ICO issuers that they may be subject to local securities laws.

     

    “We have to be very careful with this because on the one hand, we encourage innovation and free markets, but on the other hand, we do have to look after our small investors,” Paul Chan, Hong Kong’s financial secretary, said in a Sept. 11 interview.

     

    Still, the city is taking a softer approach toward regulation than China, which banned ICOs this month and called for a halt in trading on domestic cryptocurrency exchanges.

    In its battle to lure blockchain companies, Hong Kong is competing directly with its longtime rival, Singapore, which has also taken many steps to explore uses for blockchain technology while also encouraging the creation of a thriving startup community. As Bloomberg points out, Hong Kong doesn’t have a great track record when it comes to tech startups. Its Cyberport business incubator has been criticized as a housing development in disguise, while many local workers are reluctant to leave their steady jobs for riskier ventures because of the extremely high cost of living.

    Building a sustainable blockchain hub in Hong Kong won’t be easy. Many applications for the technology, including Leung’s proposal to create digital tokens for the shipping industry, are still largely theoretical. (Leung says his tokens could be used in conjunction with so-called smart contracts to reduce the risk of default on shipping agreements.)

     

    At the same time, competition to lure the most promising blockchain firms is fierce. Singapore, Hong Kong’s biggest regional rival, is pouring resources into its local fintech industry, as are other financial hubs including Dubai.

    One official with InvestHK, the portion of the city government responsible for luring foreign investment, said that the city is keenly aware of the hype surrounding blockchain but has decided to move ahead anyway.

    “There is hype, and there is the fast grab of money with ICOs in some cases,” d’Haussy said. “But what we are looking at building here in Hong Kong is an infrastructure for new businesses and existing businesses, to make sure the technology and innovations remain a key enabler for financial sector growth.”

    So far at least, blockchain has been closely associated with fintech, or financial technology, which city officials believe should give Hong Kong an edge in attracting companies, given its large financial sector. Many of the city’s early startups include financially focused firms like BitMEX, a bitcoin derivatives exchange; Bitspark, a remittance platform; and Kenetic Capital, a blockchain investment firm. While Hong Kong doesn’t publish statistics on the growth of the local blockchain industry, InvestHK’s d’Haussy said anywhere from 10 to 20 companies are expected to raise funds via ICOs in the city over the next six months.

    However, with the technology still largely unable to scale, the question of whether these companies will be able to survive long enough to achieve profitability before their backers throw in the towel. Not every function – especially not in the world of finance – is suitable for automation and decentralization. What works with blockchain, and what doesn’t, has yet to be thoroughly explored.

    Which is, of course, one of the reasons why the industry is so interesting: The risks are large, but the payoffs, in terms of job creation and the attendant tax-revenue and growth bump, is potentially huge.

  • Chris Hedges On The Silencing Of Dissent

    Authored by Chris Hedges via TruthDig.com,

    The ruling elites, who grasp that the reigning ideology of global corporate capitalism and imperial expansion no longer has moral or intellectual credibility, have mounted a campaign to shut down the platforms given to their critics. The attacks within this campaign include blacklisting, censorship and slandering dissidents as foreign agents for Russia and purveyors of “fake news.”

    No dominant class can long retain control when the credibility of the ideas that justify its existence evaporates. It is forced, at that point, to resort to crude forms of coercion, intimidation and censorship. This ideological collapse in the United States has transformed those of us who attack the corporate state into a potent threat, not because we reach large numbers of people, and certainly not because we spread Russian propaganda, but because the elites no longer have a plausible counterargument.

    The elites face an unpleasant choice. They could impose harsh controls to protect the status quo or veer leftward toward socialism to ameliorate the mounting economic and political injustices endured by most of the population. But a move leftward, essentially reinstating and expanding the New Deal programs they have destroyed, would impede corporate power and corporate profits. So instead the elites, including the Democratic Party leadership, have decided to quash public debate. The tactic they are using is as old as the nation-state—smearing critics as traitors who are in the service of a hostile foreign power. Tens of thousands of people of conscience were blacklisted in this way during the Red Scares of the 1920s and 1950s. The current hyperbolic and relentless focus on Russia, embraced with gusto by “liberal” media outlets such as The New York Times and MSNBC, has unleashed what some have called a virulent “New McCarthyism.”

    The corporate elites do not fear Russia. There is no publicly disclosed evidence that Russia swung the election to Donald Trump. Nor does Russia appear to be intent on a military confrontation with the United States. I am certain Russia tries to meddle in U.S. affairs to its advantage, as we do and did in Russia—including our clandestine bankrolling of Boris Yeltsin, whose successful 1996 campaign for re-election as president is estimated to have cost up to $2.5 billion, much of that money coming indirectly from the American government. In today’s media environment Russia is the foil. The corporate state is unnerved by the media outlets that give a voice to critics of corporate capitalism, the security and surveillance state and imperialism, including the network RT America.

    My show on RT America, “On Contact,” like my columns at Truthdig, amplifies the voices of these dissidents—Tariq Ali, Kshama Sawant, Mumia Abu-Jamal, Medea Benjamin, Ajamu Baraka, Noam Chomsky, Dr. Margaret Flowers, Rania Khalek, Amira Hass, Miko Peled, Abby Martin, Glen Ford, Max Blumenthal, Pam Africa, Linh Dinh, Ben Norton, Eugene Puryear, Allan Nairn, Jill Stein, Kevin Zeese and others. These dissidents, if we had a functioning public broadcasting system or a commercial press free of corporate control, would be included in the mainstream discourse. They are not bought and paid for. They have integrity, courage and often brilliance. They are honest. For these reasons, in the eyes of the corporate state, they are very dangerous.

    The first and deadliest salvo in the war on dissent came in 1971 when Lewis Powell, a corporate attorney and later a Supreme Court justice, wrote and circulated a memo among business leaders called “Attack on American Free Enterprise System.” It became the blueprint for the corporate coup d’état. Corporations, as Powell recommended in the document, poured hundreds of millions of dollars into the assault, financing pro-business political candidates, mounting campaigns against the liberal wing of the Democratic Party and the press and creating institutions such as the Business Roundtable, The Heritage Foundation, the Manhattan Institute, the Cato Institute, Citizens for a Sound Economy, the Federalist Society and Accuracy in Academia. The memo argued that corporations had to fund sustained campaigns to marginalize or silence those who in “the college campus, the pulpit, the media, and the intellectual and literary journals” were hostile to corporate interests.

    Powell attacked Ralph Nader by name. Lobbyists flooded Washington and state capitals. Regulatory controls were abolished. Massive tax cuts for corporations and the wealthy were implemented, culminating in a de facto tax boycott. Trade barriers were lifted and the country’s manufacturing base was destroyed. Social programs were slashed and funds for infrastructure, from roads and bridges to public libraries and schools, were cut. Protections for workers were gutted. Wages declined or stagnated. The military budget, along with the organs of internal security, became ever more bloated. A de facto blacklist, especially in universities and the press, was used to discredit intellectuals, radicals and activists who decried the idea of the nation prostrating itself before the dictates of the marketplace and condemned the crimes of imperialism, some of the best known being Howard Zinn, Noam Chomsky, Sheldon Wolin, Ward Churchill, Nader, Angela Davis and Edward Said. These critics were permitted to exist only on the margins of society, often outside of institutions, and many had trouble making a living.

    The financial meltdown of 2008 not only devastated the global economy, it exposed the lies propagated by those advocating globalization. Among these lies: that salaries of workers would rise, democracy would spread across the globe, the tech industry would replace manufacturing as a source of worker income, the middle class would flourish, and global communities would prosper. After 2008 it became clear that the “free market” is a scam, a zombie ideology by which workers and communities are ravaged by predatory capitalists and assets are funneled upward into the hands of the global 1 percent. The endless wars, fought largely to enrich the arms industry and swell the power of the military, are futile and counterproductive to national interests. Deindustrialization and austerity programs have impoverished the working class and fatally damaged the economy.

    The establishment politicians in the two leading parties, each in service to corporate power and responsible for the assault on civil liberties and impoverishment of the country, are no longer able to use identity politics and the culture wars to whip up support. This led in the last presidential campaign to an insurgency by Bernie Sanders, which the Democratic Party crushed, and the election of Donald Trump.

    Barack Obama rode a wave of bipartisan resentment into office in 2008, then spent eight years betraying the public. Obama’s assault on civil liberties, including his use of the Espionage Act to prosecute whistleblowers, was worse than those carried out by George W. Bush. He accelerated the war on public education by privatizing schools, expanded the wars in the Middle East, including the use of militarized drone attacks, provided little meaningful environmental reform, ignored the plight of the working class, deported more undocumented people than any other president, imposed a corporate-sponsored health care program that was the brainchild of the right-wing Heritage Foundation, and prohibited the Justice Department from prosecuting the bankers and financial firms that carried out derivatives scams and inflated the housing and real estate market, a condition that led to the 2008 financial meltdown. He epitomized, like Bill Clinton, the bankruptcy of the Democratic Party. Clinton, outdoing Obama’s later actions, gave us the North American Free Trade Agreement (NAFTA), the dismantling of the welfare system, the deregulation of the financial services industry and the huge expansion of mass incarceration. Clinton also oversaw deregulation of the Federal Communications Commission, a change that allowed a handful of corporations to buy up the airwaves.

    The corporate state was in crisis at the end of the Obama presidency. It was widely hated. It became vulnerable to attacks by the critics it had pushed to the fringes. Most vulnerable was the Democratic Party establishment, which claims to defend the rights of working men and women and protect civil liberties. This is why the Democratic Party is so zealous in its efforts to discredit its critics as stooges for Moscow and to charge that Russian interference caused its election defeat.

    In January there was a report on Russia by the Office of the Director of National Intelligence. The report devoted seven of its 25 pages to RT America and its influence on the presidential election. It claimed “Russian media made increasingly favorable comments about President-elect Trump as the 2016 US general and primary election campaigns progressed while consistently offering negative coverage of Secretary [Hillary] Clinton.” This might seem true if you did not watch my RT broadcasts, which relentlessly attacked Trump as well as Clinton, or watch Ed Schultz, who now has a program on RT after having been the host of an MSNBC commentary program. The report also attempted to present RT America as having a vast media footprint and influence it does not possess.

    “In an effort to highlight the alleged ‘lack of democracy’ in the United States, RT broadcast, hosted, and advertised third party candidate debates and ran reporting supportive of the political agenda of these candidates,” the report read, correctly summing up themes on my show.

     

    “The RT hosts asserted that the US two-party system does not represent the views of at least one-third of the population and is a ‘sham.’ ”

    It went on:

    RT’s reports often characterize the United States as a ‘surveillance state’ and allege widespread infringements of civil liberties, police brutality, and drone use.

     

    RT has also focused on criticism of the US economic system, US currency policy, alleged Wall Street greed, and the US national debt. Some of RT’s hosts have compared the United States to Imperial Rome and have predicted that government corruption and “corporate greed” will lead to US financial collapse.

    Is the corporate state so obtuse it thinks the American public has not, on its own, reached these conclusions about the condition of the nation? Is this what it defines as “fake news”? But most important, isn’t this the truth that the courtiers in the mainstream press and public broadcasting, dependent on their funding from sources such as the Koch brothers, refuse to present? And isn’t it, in the end, the truth that frightens them the most? Abby Martin and Ben Norton ripped apart the mendacity of the report and the complicity of the corporate media in my “On Contact” show titled “Real purpose of intel report on Russian hacking with Abby Martin & Ben Norton.”

    In November 2016, The Washington Post reported on a blacklist published by the shadowy and anonymous site PropOrNot. The blacklist was composed of 199 sites PropOrNot alleged, with no evidence, “reliably echo Russian propaganda.” More than half of those sites were far-right, conspiracy-driven ones. But about 20 of the sites were major left-wing outlets including AlterNet, Black Agenda Report, Democracy Now!, Naked Capitalism, Truthdig, Truthout, CounterPunch and the World Socialist Web Site. The blacklist and the spurious accusations that these sites disseminated “fake news” on behalf of Russia were given prominent play in the Post in a story headlined “Russian propaganda effort helped spread ‘fake news’ during the election, experts say.” The reporter, Craig Timberg, wrote that the goal of the Russian propaganda effort, according to “independent researchers who have tracked the operation,” was “punishing Democrat Hillary Clinton, helping Republican Donald Trump and undermining faith in American democracy.” Last December, Truthdig columnist Bill Boyarsky wrote a good piece about PropOrNot, which to this day remains essentially a secret organization.

    The owner of The Washington Post, Jeff Bezos, also the founder and CEO of Amazon, has a $600 million contract with the CIA. Google, likewise, is deeply embedded within the security and surveillance state and aligned with the ruling elites. Amazon recently purged over 1,000 negative reviews of Hillary Clinton’s new book, “What Happened.” The effect was that the book’s Amazon rating jumped from 2 1/2 stars to five stars. Do corporations such as Google and Amazon carry out such censorship on behalf of the U.S. government? Or is this censorship their independent contribution to protect the corporate state?

    In the name of combating Russia-inspired “fake news,” Google, Facebook, Twitter, The New York Times, The Washington Post, BuzzFeed News, Agence France-Presse and CNN in April imposed algorithms or filters, overseen by “evaluators,” that hunt for key words such as “U.S. military,” “inequality” and “socialism,” along with personal names such as Julian Assange and Laura Poitras, the filmmaker. Ben Gomes, Google’s vice president for search engineering, says Google has amassed some 10,000 “evaluators” to determine the “quality” and veracity of websites. Internet users doing searches on Google, since the algorithms were put in place, are diverted from sites such as Truthdig and directed to mainstream publications such as The New York Times. The news organizations and corporations that are imposing this censorship have strong links to the Democratic Party. They are cheerleaders for American imperial projects and global capitalism. Because they are struggling in the new media environment for profitability, they have an economic incentive to be part of the witch hunt.

    The World Socialist Web Site reported in July that its aggregate volume, or “impressions”—links displayed by Google in response to search requests—fell dramatically over a short period after the new algorithms were imposed. It also wrote that a number of sites “declared to be ‘fake news’ by the Washington Post’s discredited [PropOrNot] blacklist … had their global ranking fall. The average decline of the global reach of all of these sites is 25 percent. …”

    Another article, “Google rigs searches to block access to World Socialist Web Site,” by the same website that month said:

    During the month of May, Google searches including the word “war” produced 61,795 WSWS impressions. In July, WSWS impressions fell by approximately 90 percent, to 6,613.

     

    Searches for the term “Korean war” produced 20,392 impressions in May. In July, searches using the same words produced zero WSWS impressions. Searches for “North Korea war” produced 4,626 impressions in May. In July, the result of the same search produced zero WSWS impressions. “India Pakistan war” produced 4,394 impressions in May. In July, the result, again, was zero. And “Nuclear war 2017” produced 2,319 impressions in May, and zero in July.

     

    To cite some other searches: “WikiLeaks,” fell from 6,576 impressions to zero, “Julian Assange” fell from 3,701 impressions to zero, and “Laura Poitras” fell from 4,499 impressions to zero. A search for “Michael Hastings”—the reporter who died in 2013 under suspicious circumstances—produced 33,464 impressions in May, but only 5,227 impressions in July.

     

    In addition to geopolitics, the WSWS regularly covers a broad range of social issues, many of which have seen precipitous drops in search results. Searches for “food stamps,” “Ford layoffs,” “Amazon warehouse,” and “secretary of education” all went down from more than 5,000 impressions in May to zero impressions in July.

    The accusation that left-wing sites collude with Russia has made them theoretically subject, along with those who write for them, to the Espionage Act and the Foreign Agent Registration Act, which requires Americans who work on behalf of a foreign party to register as foreign agents.

    The latest salvo came last week. It is the most ominous. The Department of Justice called on RT America and its “associates”—which may mean people like me—to register under the Foreign Agent Registration Act. No doubt, the corporate state knows that most of us will not register as foreign agents, meaning we will be banished from the airwaves. This, I expect, is the intent. The government will not stop with RT. The FBI has been handed the authority to determine who is a “legitimate” journalist and who is not. It will use this authority to decimate the left.

    This is a war of ideas.

    The corporate state cannot compete honestly in this contest. It will do what all despotic regimes do – govern through wholesale surveillance, lies, blacklists, false accusations of treason, heavy-handed censorship and, eventually, violence.

  • Who Made Dennis Gartman "The Commodities King?"

    Content originally published at iBankCoin.com

    Who’s in charge of doling out such titles anyway? Is there a chance, perhaps, someone in the media could title me “The Blogging Emperor” — enabling me to make wide sweeping proclamations about the future of online media?
     
    The craven vultures from CNBC are out with a fresh story this evening, discussing “The Commodity King’s” stance on gold and how it’s heading ‘demonstrably’ higher.
     

    “A year from now, gold will be demonstrably higher than it is right now,” The Gartman Letter’s founder told “Futures Now” in a recent interview. “I would certainly think we could see $1400 [an ounce] in dollar terms.”
     
    “This is a correction but let’s understand the last rally that we had took off from $1200 to $1370. The fact that we’ve fallen back below $1300 I think is relatively inconsequential,” he added.
     
    “I am not a gold bug. I don’t believe the world is going to come to an end. I don’t think you own gold because you think governments are going to be collapsing around the world,” he said.
     
    His reason to own gold: Central banks and easy money.
     
    “The monetary authorities are all still remaining expansionary,” noted Gartman, given that easy central bank policy tends to undermine major currencies like the dollar and euro. “In that instance, the one currency that will probably do the best of all is gold.”
     
    He doesn’t believe the Federal Reserve’s intention to start reducing its $4.5 trillion balance sheet in October will be a headwind for gold. The unwinding of the Fed’s crisis-era policy “is going to take five or six years. This is not something that will occur overnight,” he said.

     
    I’m so glad that I sold the last of my gold position on Friday. There isn’t any reason to be on the same side of a Dennis Gartman trade, not now, not ever. This whole Commodity King business is awfully tiresome. It reminds me of boiler room tactics, where some brokers would declare themselves to be child prodigies in investing — born geniuses, sent to a phone bank inside of a third rate firm to save the average investor from the dreadful underperformance of white shoe firms.

    Even still, a 7% move from current levels isn’t exactly something to beat off to. The idea that gold is set to trade ‘demonstrably’ higher because the Fed is set to tighten their balance sheet by $4.5 trillion over 5 years is nonsensical, inane, and tragically stupid.

  • Sales To "Common Sense Preppers" Soar Amid Nukes, Quakes, Floods, & Storms

    With North Korea threatening to detonate a nuclear weapon over the Pacific Ocean as its leader and President Donald Trump casually bandy about threats of thermonuclear annihilation, people in the US and Japan are understandably starting to worry.

    After all, US intelligence agencies revealed during the summer that they believe the North will soon possess a nuclear warhead-tipped ballistic missile capable of striking most of the continental US. In fact, chances are good that, with a little luck, the North already has missiles in its arsenal that could probably strike a large area of the western US.

    But, aside from nuclear threats looming in North Korea and Iran, the worst hurricane season in the Atlantic in more than a decade, and the continuing rumblings underneath the Yellowstone caldera, which could signal a potentially humanity-extinguishing eruption, it’s understandable that Americans and Japanese are increasingly worrying about their safety, and have begun purchasing more “doomsday preparation” gear to help assuage those fears.

    Now, Reuters is reporting that survivalists across the US are clearing store shelves to stock bunkers in anticipation of Earth’s final chapter. A few survivalists who spoke with Reuters said that North Korea’s threats, and the images of the destruction caused by Hurricanes Harvey, Maria and Irma, have inspired them to stock up.

    “It’s been a very busy six or seven weeks here – sales tripled practically overnight,” said Keith Bansemer, vice president for marketing for Idaho-based My Patriot Supply, an online store catering to preppper needs.

     

    “It all started when North Korea shot the missile that was capable of reaching the U.S. Then the hurricanes and two Mexican earthquakes increased sales from California and Cascadia in the Northwest,” he said, referring to the corner of the country where many survivalists have settled because of its relative isolation.

    One guy on the west coast said he’s worried about a catastrophic earthquake. He has piled enough survival supplies in a closet that could last he, his wife and their dogs for a month, if necessary.

    David Yellin, a self-described prepper who lives in California’s San Diego County, said his main concern was the long-expected “big earthquake” along the West Coast.

     

    The 31-year-old police officer has piled enough survival supplies in a closet of the apartment he shares with his fiance and their two dogs to allow them to hunker down for a month.

     

    “I‘m more of what I consider a common sense prepper,” Yellin said. “Because at the end of the day, we are responsible for our own safety.”

    Both he and his wife have “bug out bags” prepared should disaster strike.

    If disaster forces the couple to flee, each has a “bug-out bag” stuffed with three days of food, water, first aid and water purification supplies, fire-starting materials, a tent and sleeping bag, change of clothes and important documents.

    One purveyor of survivalist gear said sales on items like gas masks have spiked over the last two months, a period which notably featured the US’s escalating war of words with North Korea and the catastrophic hurricanes.

    At Ready To Go Survival, founder and chief executive Roman Zrazhevskiy said gas masks were quickly moving off the shelves and overall sales “are up like 700 percent over the last two months.”

     

    A prepper himself, he said his greatest fear was a U.S. economic collapse as a result of the country’s unsustainable debt.

     

    “Once people go hungry, they are going to get to the streets and look for food,” said Zrazhevskiy, 31, who grew up in New York City’s borough of Brooklyn and now lives in Texas.

     

    Customers were snapping up $500 CBRN suits to withstand chemical, biological, radiological and nuclear attack and $200 gas masks in sizes that fit children as young as 5.

    Another prepper who has spent thousands of dollars on gear said he fears political and economic collapses as much or more than North Korea.

    “Gas masks? I’ve got tons of those,” said prepper Jerry McMullin, 62, a retired risk assessment analyst whose bunker-like home in Yellow Jacket, Colorado, was built to withstand nuclear attack, biological warfare and a range of natural cataclysms.

     

    Although North Korea is one of his biggest concerns, McMullin is also worried about political instability in Washington leading to riots and mayhem in the cities, he said.

     

    “I‘m not a paranoid guy. I just want to be in a position that when it does go to Hell, I‘m in a good location to get whatever I need,” said McMullin, who has his own water filtration system and burns his own trash in his solar-powered home.

    In addition to the obvious threats, many continue to believe in “doomsday" hoaxes like 7/7/2007 and end of the Mayan calendar on Dec. 21, 2012.

    Now, some Christians are touting a Bible prophecy that marks September 23, 2017 as the beginning of a seven-year period of catastrophic events that will bring humanity to its knees.

    David Meade, a Christian numerologist and author, has said that, based on the Book of Revelations, a constellation would appear over Jerusalem on Saturday that would start the seven years of mayhem.

     

    But McMullin said his own respect for Bible prophesy assures him that disaster is not around the corner.

     

    “As far as getting wiped out this weekend, I‘m not too worried about that,” McMullin said.

     

    “Maybe it’s a timeline marker and things are going to start getting really ramped up. We are not about to go through mass destruction and fatality. I think people are a little more stable – except for Kim,” he said, referring to North Korea’s President Kim Jong Un.

    After spending thousands on gear, some preppers told Reuters that the flooding in Houston, Florida and Puerto Rico have left them feeling vindicated.

    We imagine that feeling will persist as economic and political tensions, coupled with the impending economic disenfranchisement of much of America’s working and middle classes, continue to simmer, while the US’s leaders continue to risk an unparalleled disaster by trading threats with unstable North Korea.
     

  • SocGen: "If Anyone Thought That Populism Isn't A Threat To EU, Today's Vote Is A Wake-up Call"

    Earlier today, we said that as more sellside commentary on today’s startling German election result came out, the knives would be out for the Euro. Sure enough, that’s precisely what happened, and nobody captures the sour mood better than SocGen’s FX strategist Kit Juckes who writes that “if the election of President Macron suggested to anyone that populism isn’t a threat to EU, then today’s vote is a wake-up call.”

    Selected excerpts from his note “European Trouble”

    The CDU and CSU will be comfortably the biggest party bloc in the Bundestag when the final count comes in after Germany’s election, but Chancellor Merkel is going to have to conjure up a collation with the FDP and the Greens, as well as facing the arrival in the Bundestag of the far-right AFD. If the election of President Macron suggested to anyone that populism isn’t a threat to EU, then today’s vote is a wake-up call, even if in practise, despite the difficulty of forming a coalition government, relatively little may change. 

     

    We’ll write (much) more about the implications for German and European politics when the final result is in. For now, the market reaction is to sell the euro, but only modestly. As I wrote last week, it’s now or never for a EUR/USD correction. The euro has done better than shifts in relative interest rates, short or long-term, nominal or real, can justify. EUR/USD 1.17 is a natural chart target and may well be tested in the weeks ahead. A strong IFO would help the euro and the market has already embraced the idea both of a smooth start to the Fed’s balance sheet normalisation, and a December Fed rate hike. But those are reasons to expect a modest euro pull-back, not to look for one to be avoided completely. EUR/SEK, EURNOK and EUR/PLN shorts, meanwhile, all of which we have written about in recent weeks, still appeal.

     

    That said, there isn’t an awful lot to get me too excited about the dollar here. US TIPS yields have moved yup, but drifted back down on Friday, and are back below 40bp. Then recent pattern of real yield moves is down in Japan (stay long USD/JPY and CAD/JPY)., up a bit in the US and Germany (meh!), flat after the recent rise in the UK (trouble brewing for sterling) and supportive of both CAD and AUD.

     

    Meanwhile, as SocGen expect storm clouds for the Euro, here is Goldman doing what it does best, “explaining” how yet one more material and key development will have no impact or significance whatsoever.

    Exit polls reported by the German media show the victory for the Christian Democrats (CDU/CSU) party of Angela Merkel arriving in the first position with a 13pp lead over the Social Democrats (SPD) party. In line with expectations, only two possible coalitions – benefiting from a large parliamentary majority – can be envisaged: either (a) a continuation of the current ‘Grand coalition’ with the Social Democrats (SPD); or (b) a ‘Jamaica coalition’ in collaboration with the Liberal Party (FDP) and the Green Party (Die Grüne).

     

    We do not expect these electoral results to have a significant impact on markets from tomorrow as the victory of Ms. Merkel was largely anticipated and time is required to form a new government.

    Actually, that’s dead wrong, but what difference does it make at this point. We look forward to finding out which of these two explanations will be proven right in the coming days.

  • Silicon Valley Snake Oil: It's Passed Its 'Sell By Date'

    Authored by Mark St.Cyr,

    “It’s different this time!” One of the greatest examples of Silicon Valley “snake oil” ever devised, embraced, and consumed en masse.

    The problem with “snake oil?” It’s never different. And today’s newest and improved version has passed its expiration date – and is beginning to turn rancid.

    Remember when “unicorns” were the thing? I know, they still are in a sense. But they are far from the once mythical enablers of turning $Millions into $Billions via IPO’s. As a matter of fact, that process has become so tainted, the only way to keep attention focused that a company may still be worth what investors declare? Is to keep it under the cloak-of-darkness, also known as “private.”

    One has to marvel at how rapidly ineffectual the “It’s different this time” elixir argument is becoming with every passing day.

    Why? Ask yourself this: Why is it, not only have the most highly valued unicorns yet gone public, but also, at the same time, the stock “market” is at never before seen in human history highs?

    Yet, that isn’t even the main issue, there’s another even more telling one. And it is this: There’s not even been a set date or road show scheduled, (except vague innuendo) when basically this same condition has applied for months, if not years!

    What, market conditions at “all time highs” aren’t suitable? No money to be made in “tech?”

    Well, there is money to be made in tech, but only if your sticker symbol has the right marking such as the coveted “bulls-eye” of the central banks. (Hint: FAANG)

    If you’ve any misgivings about that. Just pull up a chart of any “disruptor” IPO darling of choice from 2015 onward. If you were one of the so-called “lucky ones” to get in on opening day? I’ll garner you no longer need, or look, at any of those charts. And, you have my condolences. (Hint: try TWLO, SNAP, or APRN for clues.)

    The issue for Silicon Valley today is this: It’s going to get worse, much worse. And the only ones not getting it is the entire tech complex.

    Sorry, but, once again, hint: It’s over. As in dot-com mania over.

    The only thing left to happen is the inevitable crash. But make no mistake – it’s a matter of when, not if. And “when” is soon. Soon as in months, maybe a few earnings cycles, not years. For the seismic, tectonic shift, once known as Fed. largesse that has enabled all of it, has now not only been halted, but reversed, as in money from the Fed. will be withdrawn, and destroyed.

    That’s what “balance sheet normalization” truly means. And the first to feel “the burn” as they say will be what was once the hottest, of hot sectors. i.e., Tech, especially, no earnings to sub-par earnings tech. Hello unicorns, and ads-for-eyeballs disruptor models aka known as social-media.

    This all begins in earnest this coming October, just a week or so from now. And with it everything changes, especially, any and all past assumptions of “It’s different this time” accolades or defenses from traditional business metrics. i.e., making a net profit.

    The reason? It’s going to be precisely that: different, this time.

    Let’s use today’s deca-corns (yes, that’s an actual term because “uni” is just so blasé) for a little context shall we?

    I posited back in April that Uber™ was in far greater trouble than anyone (especially the mainstream business/financial media) not only dared say, but rather, was able to intellectually extrapolate. I also contended, that this had major implications for “The Valley” at large.

    Not only has that premise further crystalized. It’s crumbling even faster by the day. To wit:

    Market Watch™: “Uber stripped of right to operate in London in latest blow to ride-sharing app”

    Can you say: “Uh Oh?”

    So let’s see: From a claimed $68Billion, to an assumed $40’ish (or less) on rumored buy outs, and now London says “…not fit and proper to hold” a license in the city. You know, a city that’s basically a mecca for taxi cabs and service.

    What’s the valuation assumptions from here? Half of $40? Or, even less? Why? Easy…because who’s next? New York? Chicago? It’s an open question, just like its valuation. For nothing is yet truly settled.

    Oh, but wait, there’s AirBnB™ that’ll save the apocalypse from venturing any further I’m told. Well, in my opinion, that’s a maybe, to a flat out no. “Why,” you ask? Again, fair question, and it is this:

    Just like Uber – the longer it remains private – the more time is allotted for any, and all lawsuits either resting, or being drawn, to ferment ever further.

    Uber has its driver issues and such. AirBnB has its own regulatory hurdles to still fight. And those fights just may get hit with an accelerant if the latest proposals being bandied about for increasing its presence draw it closer into the spotlight. Case in point:

    A new start-up called Loftium™ has been launched to help prospective home buyers with up to $50K for a down-payment, but there’s a catch: You have to list a bedroom for three years on AirBnB and share the revenue.

    Sounds great right? Here’s how I view it…

    Much like Uber, this will have (and encourage) lawsuits, and more because of this one factor: Much like the “independent contractor” issue has yet to be fully resolved for Uber (let alone all the other suits.) AirBnB rentals in many cases break the social contract of not only knowing who is your neighbor, or tenant. But also: what business is allowed to openly operate within a residential neighborhood.

    Say what you want about, “Renting out a room in my house is no different that letting a friend or family member stay the same period.” I’ll respond with, “Au contraire mon ami, it sure is.”

    It is also very different in the eyes of both business law, as well as zoning. And this latest example of “disruption” is going to bring all of that, and more, to the forefront for AirBnB, in my estimation.

    Hint: You think the hotel associations and such alone are going to just stand by and allow (as well as pay) all the taxes and restrictions for code enforcement while a neighborhood of homes around it gets to do it all without zoning, OSHA, mandated handicap access and egress, fire and safety requirements, and more?

    Tack all of the above onto where now, there is a vocal, and concerted push (with incentives and more) by AirBnB to make “business traveler deals” available. If you believe the industry alone (let alone people in neighborhoods just sitting back as transients come too-and-fro into their neighborhood where their children are), I have some wonderful oceanfront property in Kentucky you can lease out, on the cheap. “Trust me.”

    I used the unicorns above for examples because these are/were used as the touchstones against any, and all calls of criticism against the “It’s different this time” mantra. And now? (In my opinion) They are well past their sell by date, especially since now the Federal Reserve has indeed made it official and declared “”normalization” will begin in October.

    And if you still believe in: “this time it’s different?” Here’s something to remind you, that it is – exactly that. To wit: “Spiking Silicon Valley Unemployment Dragging down California’s Economy”

    Just as a reminder of how fast the whole “It’s different this time” meme can go awry. Here’s what I said back in October of 2015. to ridicule from many of the Valley’s aficionado set and business media cheerleaders.. To wit:

    “However, you know what changes everything? When the meme of “Gonna stay here till I cash-in and then I’ll buy me a McMansion!” turns into the underlying realization that quite possibly – you’re going to end up living in a shipping container! Possibly forever if things don’t change.”

    But it’s different this time. right? Or, maybe, it’s not. Better check that “bottle” for an expiration date. I think it may be well passed.

  • First Black Medal Of Honor Recipient's Act of 'Defiance': He Never Let The Flag Touch The Ground

    As we reported previously, Sunday afternoon's round of NFL games included players from nearly every team joining the "take a knee" protest during the National Anthem, while many others locked arms in solidarity with players who decided to take a knee, or – in the case of the Pittsburg Steelers – remained in the locker room, and thus weren't visible to the public. Notably, Steeler and ex-Army Ranger Alejandro Villanueva seemed to have defied the team decision to opt out of the anthem by waiting in the locker room (with the exception of head coach Mike Tomlin, who stood on the field). Villaneuva, who served three tours in Afghanistan, stood visibly outside the tunnel with his hand over his heart during the The Star-Spangled Banner.

    In Philadelphia, Eagles and Giants players and coaches locked arms as a massive American flag was raised over the field and military jets performed a flyover. A few players raised fists or knelt, according to the New York Times. Several players on the Bills and the Broncos also took a knee, as well as players from both teams in the Patriots vs. Texans game. At least eight Detroit Lions knelt during the anthem which ended with singer Rico LaVelle kneeling with his fist in the air upon closing the national anthem. Across the league, well over 100 players took part in the anthem protest, and the controversy is now impacting other sports as well, including the NBA and MLB.

    With Trump's Sunday morning tweets fueling the controversy further, and with teams having to decide how to approach the issue, it would be helpful if Americans were reminded of the first black man in history to receive the Congressional Medal of Honor. Whereas players across the NFL are now either defiantly taking a knee or opting out of respectfully commemorating the flag by hiding in the locker room, ironically, the first African-American Medal of Honor recipient nearly made the ultimate sacrifice out of his own personal respect for the flag and all that it represents. 

    Sergeant William H. Carney received the nation's highest honor during the Civil War for rescuing the American flag and carrying it reverently in the midst of impossible odds while being shot multiple times by the enemy. His act of 'defiance' while an entire Confederate battalion mowed down his fellow Union soldiers consisted in not letting the flag touch the ground – this, even after being wounded in the head.

    "As the color-bearer became disabled I threw away my gun and seized the colors [the flag]," his account of the Battle of Fort Wagner states. "When we finally reached [my regiment] the men cheered me and the flag. My reply was, ‘Boys, the old flag never touched the ground.'"

    Taking bullets for the flag, rather than a knee – Sergeant William H. Carney, the first black man to win the Congressional Medal of Honor, for refusing to allow the flag to touch the ground. Source: US Army archival photo

    This act, acknowledged to be one of the most heroic deeds of the Civil War, is recorded in State documents and in the detailed account written by Sergeant Carney. The significance is summarized as follows:

    In 1863 William H. Carney entered the army and was assigned to Company C of the 54th Massachusetts Regiment, the first regiment composed of black men in the state. They were most renowned for their participation in the battle at Battery Wagner where, through their bravery and sacrifice, they forever silenced the predication that the black men would not fight. It was at this siege on July 18, 1863 that Color-Sergeant William H. Carney performed a brave deed which earned him the Congressional Medal of Honor for most distinguished gallantry in action.

    Here, in part, is his account of the siege from The History of New Bedford and Its Vicinity, 1620-1892:

    ". . .We were all ready for the charge, and the regiment started to its feet, the charge being fairly commenced. We had got but a short distance when we were opened upon with musketry, shell, grape shot and canister, which mowed down our men right and left. As the color-bearer became disabled I threw away my gun and seized the colors, making my way to the head of the column. . . In less than 20 minutes I found myself alone, struggling upon the ramparts, while the dead and wounded were all around me, lying one upon another. Here I said, ‘I cannot go into the battery alone,' and so I halted and knelt down, holding the flag in my hand. While there, the muskets, balls and grape-shots were flying all around me, and as they struck, the sand would fly in my face."

    The Storming of Fort Wagner by the 54th Massachusetts Volunteer Infantry, Morris Island, Charleston, S.C., July 18, 1863.

    "I knew my position was a critical one, and I began to watch to see if I would be left alone. Discovering that the forces had renewed their attack farther to the right, and the enemy's attention being drawn thither, I turned and discovered a battalion of men coming towards me on the ramparts of Wagner. They proceeded until they were in front of me, and I raised my flag and started to join them, when from the light of the cannon discharged on the battery, I saw that they were my enemies. I wound the colors round the staff and made my way down the parapet in to the ditch, which was without water when I crossed it before, but now was filled with water that came up to my waist.

     

    Out of the number that came up with me there was now no man moving erect, save myself, although they were not all dead but wounded. In rising to see if I could determine my course to the rear, the bullet I now carry in my body came whizzing like a mosquito, and I was shot. Not being prostrated by the shot, I continued my course, yet had not gone far before I was struck by a second shot.

     

    Soon after I saw a man coming towards me, and then within halting distance I asked him who he was. He replied, ‘I belong to the One Hundredth New York,' and then inquired if I were wounded. Upon replying in the affirmative, he came to my assistance and helped me to the rear. ‘Now then,' said he, ‘let me take the colors and carry them for you.' My reply was that I would not give them to anyone else unless he belonged to the Fifty-Fourth Regiment. So we passed on , but we did not go far before I was wounded in the head.

     

    We came at length within hailing distance of the rear guard, who caused us to halt, and upon asking who we were, and finding I was wounded, took us to the rear and through the guard. An officer came, and taking my name and regiment, put us in charge of the hospital corps, telling them to find my regiment. When we finally reached the latter the men cheered me and the flag. My reply was, ‘Boys, the old flag never touched the ground.'

    It is then said that he fell to the ground in a dead faint, weak from the wounds that he had received."


    The Robert Gould Shaw Memorial

    In May, 1900, Carney became the first African-American to receive the Congressional Medal of Honor. Carney's brave deed is depicted on the Saint-Gaudens Monument in Boston Common. The rescued flag is enshrined in Memorial Hall, Boston. Carney survived his severe wounds and lived until 1908. 

    As the trend of multi-millionaire celebrity athletes 'defiantly' opting out of a minimal symbolic act of respect for the flag continues, remember the example of Sgt. Carney, who even after being shot multiple times defiantly and triumphantly raised the American flag high.

  • Russia Releases Photos Showing US Special Ops At ISIS Positions In Syria

    The Russian Defense Ministry has released aerial images allegedly showing ISIS, the SDF, and US special forces working side-by-side on the battlefield against Syrian and Russian forces in Dier ez-Zor, Syria.

    //platform.twitter.com/widgets.js

    As Adam Garrie reports, via The Duran,it has long been thought that the US proxy militia SDF is operating in collusion with ISIS in various parts of Syria. This has especially been the case in respect of Deir ez-Zor. In Deir ez-Zor, the Russian Defense Ministry has previously stated that the Syrian Arab Army and their allies are fired on most intensely from positions known to be held by the SDF.

    Furthermore, Russian Defense Ministry Spokesman Major General Igor Konashenkov recently stated,

    “SDF militants work to the same objectives as Daesh terrorists. Russian drones and intelligence have not recorded any confrontations between Daesh and the ‘third force’, SDF”.

    He added that Russia will not hesitate to target SDF forces that threaten the battle field progress and personal safety of Russia’s allies, namely the Syrian Arab Army.

    Other reports surfaced of US military helicopters airlifting known ISIS commanders to safety as the Syrian Arab Army made its advance on the former ISIS stronghold of Deir ez-Zor. All of this has happened as the US is moving its proxy Kurdish led SDF forces from Raqqa to Deir ez-Zor, in a move that appears to be an attempt to stop Syrian forces from liberating their own country’s legally recognised territory.

    Now, the Russian Defense Ministry has released a statement followed by 12 photos showing how SDF forces work alongside US special forces in ISIS controlled areas without facing any resistance from ISIS. Furthermore, none of the US or Kurdish led forces even take defensive positions which indicate that they are cooperating with ISIS rather than engaging in a perverse truce. In other words, the SDF, US special forces and ISIS move among each other in the same manner as allies do.

    The following is the statement from the Russian Defense Ministry on the matter:

    #US Special Operations Forces (#SOF) units enable US-backed Syrian Democratic Forces (#SDF) units to smoothly advance through the ISIS formations.

     

    Facing no resistance of the ISIS militants, the #SDF units are advancing along the left shore of the #Euphrates towards #Deir_ez_Zor.

     

    The aerial photos made on September 8-12 over the ISIS locations recorded a large number of American #Hummer vehicles, which are in service with the #America‘s #SOF.

     

    The shots clearly show the US SOF units located at strongholds that had been equipped by the ISIS terrorists. Though there is no evidence of assault, struggle or any US-led coalition airstrikes to drive out the militants.

     

    Despite that the US strongholds being located in the ISIS areas, no screening patrol has been organized at them. This suggests that the#US_troops feel safe in terrorist controlled regions”.

    This demonstrates that in spite of Donald Trump’s apparent wiliness to abandon the policy of aiding jihadist groups, not only has this policy not changed, but such a reality now includes full scale battlefield collusion with ISIS.

    This also helps explain why in June of this year, SDF forces allowed ISIS terrorists to peacefully leave Raqqa and head towards Deir ez-Zor, a place which is now unquestionably the largest remaining ISIS stronghold in east of Libya.

    But now, not only are US proxies allowing ISIS to peacefully retreat but they are visibly coalescing on the battle field. These realities also corroborate the story of SDF fighters being wounded in a Syrian led strike on known ISIS targets. As I wrote previously in The Duran, this is because SDF militants are fighting beside ISIS.

    The fact of the matter is that, the Kurdish led SDF and ISIS now share the same strategic goals, in spite of apparent ideological differences. Both seek to aggressively and illegally prevent Syria from liberating her sovereignty territory and in so doing, both are challenging the territorial unity and integrity of the Syrian Arab Republic. Likewise, each group’s ideology is opposed to the Arabist Constitution of Syria, seeking instead to lay the ground work for sectarian ideologies in the areas they seek to illegally annex.

    Most worryingly, both militant groups are clearly collaborating and colluding with each other and with the United States, in a proxy war against Syria and the interests and safety of her allies, including Russia and Iran.

    What once was only partly clear, is now as clear as the following colour photographs from the Russian Defense Ministry.

    The images released by the Russian Defense Ministry encourage speculation that the US and SDF forces have some sort of “understanding” with IS terrorists operating in the region, according to Ammar Waqqaf, the director of the Gnosos think tank.

    “From the footage, the Americans seem to be and the SDF seem to be quite at leisure, they are not expecting any attack any time soon,” Waqqaf told RT.

    “The reason why this may be the case is that there has been some sort of understandings with ISIS over there. Probably they were given some amnesty, that they are not going to be prosecuted, … or they were given guarantees that they would not be given back to the state.”

    The SDF, ISIS and the United States are fighting on the same side of the conflict in Syria, it is the side of terrorism which seeks to destroy the secular, modern, pluralistic and independent Syrian Arab Republic.

    Earlier in September, Russian Defense Ministry spokesman Major General Igor Konashenkov accused the SDF of collusion with ISIS terrorists. “SDF militants work to the same objectives as IS terrorists. Russian drones and intelligence have not recorded any confrontations between IS and the ‘third force,’ the SDF,” Konashenkov said.

    This proves that the Hollywood actor Morgan Freeman was correct. The US and Russia are at war, albeit a proxy war which includes ISIS.

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Today’s News 24th September 2017

  • The Danger Of Patriotism

    Authored by Bob Livingston via Personal Liberty blog,

    My friends, it is frightening how simple we are and how easily we are manipulated simply because we are intellectually lazy.

    The U.S. establishment has confused cause and effect by and through a flag-waving mania in America. "Patriotism" throughout history has covered a multitude of mischief. We are seeing it now!

    Phony patriotism is strong leverage against a population ignorant of the ways of treason by its own government. I also have no doubt that U.S. history is full of wars "for democracy" killing millions under the propaganda of patriotism with the majority support of the people and the full support of all but a small cadre of "elected representatives" — who are paid by the federal government, incidentally. In addition the millions of foreign dead, these wars have left hundreds of thousands of American military members dead or maimed physically and/or emotionally.

    The whole world knows about the U.S. military industrial complex war machine and its pursuit of profits. But Americans tend to turn a blind eye.

    When George Washington said "government is force," he meant that government is force against its own people.

    Since by definition government is force, then it follows that government will use any ruse imaginable to increase its power. Increased use of government force or power could backfire unless skillfully handled and justified in the public mind. Therefore governments rarely take action unless accompanied by skillful propaganda.

    The brouhaha over certain NFL players' refusal to stand for the playing of the Star Spangled Banner has erupted anew. The reaction of most Americans — who claim to believe in the Constitution and Bill of Rights — is that this expression cannot be tolerated… it is un-American… it is "unpatriotic."

    But is it? Or is it not the most American of all things to resist and rebel against what we perceive as tyranny and its symbols?

    If we deny one — whether through intimidation and threats, monetary sanctions or government force — his rights, are we not creating a situation where rights are just privileges that can be denied on a whim? If we support police power to invade our homes and wallets and steal our property just because government has made it "legal," are we not again conceding that rights are merely privileges?

    You cannot say, "I believe in the 1st Amendment, but…; I believe in the 2nd Amendment, but…; I believe in the 4th Amendment, but…" There is no but.

    And if that government making "legal" the assaults on our liberty is represented by a symbol, shouldn't we conclude that that symbol is a symbol of tyranny? I wrote about the phony patriotism of flag worship when the Colin Kaepernick stir occurred last year.

    In light of the new kerfuffle over NFL players refusing to stand, and comments to some of our columns on preserving liberty of late, I felt it was time to run it again. Here it is:

    The American golden calf

    As a young boy, I enjoyed my family's bantam chickens that laid very small eggs and hatched very small chicks. Theirs was a small and miniature world.

    One day one of my bantams started sitting on eggs to hatch its chicks. Something happened to her eggs but she continued to sit, so I decided to put a duck egg under her. Duck eggs are at least three times bigger than bantam eggs and take a few days longer to hatch, but she dutifully sat on the egg several days longer. She hatched the duckling and, as you can imagine, it thought that his world was normal and that the bantam hen was his mother.

    The duckling eventually grew into a full sized mallard duck, probably five or six times the size of its bantam mother. The full-grown duck would follow its hen mother around as would normal chicks. It was a funny sight to watch.

    But I remember thinking, even as a small boy, that the duck's entire reality was that the bantam hen was his mother and that was the way the world worked. He had no need to consider anything else.

    This is the world of the American people today. Their perceptions of reality control them and they who control their perceptions control the American people.

    Our perception of America has always been that she is the mother country and ordained by God, good and just and a beacon of freedom. This is hammered into our psyches from our early days.

    From pre-school up, we are taught to worship the state. I don't know if it is still done, but in the public (non)education system, for many years, schoolchildren across the South — and elsewhere, I suppose — recited the Pledge of Allegiance each morning. Political rallies and government meetings are still often begun with a recitation of the pledge.

    People say it with patriotic fervor, with their hands placed dutifully on their hearts.

    Sporting events, political rallies and other public venues are often kicked off with the playing and/or singing of the Star Spangled Banner. Before the song begins, people are instructed to rise, men to remove their hats,and people place their hands over their hearts. They don't realize its value as a propaganda tool.

    We have come to equate the flag, the pledge and the national anthem with patriotism, and patriotism with government, country and support for government, support for foreign wars and veterans. Anything less is "un-American."

    Beyond its patriot fervor is the almost religious fervor and religious symbolism of the American people's actions when the pledge and the national anthem begin: the ritual standing, removal of hats, placing of hands and rote recitation. In the book of Daniel, Israelites Hananiah, Mishael and Azariah (Shadrach, Meshach and Abednego) refused to worship the golden image of Nebuchadnezzar contrary to the king's decree. The king ordered them to be thrown into the furnace after it was turned up to seven times its normal temperature.

    NFL player Colin Kaepernick created a stir last week when he refused to stand for the national anthem. He was not subsequently ordered into the furnace by the king, but he was burned symbolically by many football fans who torched their jerseys. Americans fumed that he should "leave" America if he can't support the flag and that he had disrespected the flag, the nation and veterans.

    What are we saying when we say that someone "disrespected the flag,"  "disrespected the country," "disrespected the veterans" if he chooses to not stand for the national anthem? What is the flag but a piece of cloth? By the reaction to Kaepernick, it seems it has become more of a golden calf to represent mother country or the god of government.

    Our mother has become a witch. Yes, same symbols, same flag, same pledge of allegiance, but a decadent spirit controlling the perceptions of the American people, keeping them on the animal farm (controlling their perceptions) long enough to impoverish and enslave them.

    Time and gradualism can change a system all the way from human liberty to slavery (the animal farm) over a few generations without anyone being aware except a very few, those who ask questions.

    "America, love it or leave it," is a tired canard. One cannot leave it except at great cost. Recall that in 1860-1861 11 states attempted to "leave it" in order to preserve their liberty and rights as sovereign states. They were branded as "insurrectionists" and attacked by the War Party and the result was their economic and social destruction, subjugation and the deaths of some 850,000 people (the equivalent of about 8.5 million people today). When one talks of secession today he's branded as a racist, crazy or a radical and told secession is "illegal."

    One can love his country but hate his government and its actions. I love America but not the people who control America and its government. I love America, but its rulers are alien to individual freedom, its government now anathema to liberty.

    If the flag is symbolic of government and that government lies at every turn, enslaves its people, steals from their labor, passes laws that are an execration to their Christian faith, takes from them their liberty, mandates the murder of 1 million babies a year, imports tens of thousands of immigrants to replace American workers and drive down wages, and that makes war on other countries that have not threatened us, why should any acknowledge its presence with more than a sneer?

    Wars are not for patriotism and "democracy," as we are propagandized. And our freedom has not been threatened by outside forces in 200 years. Wars are to kill; i.e., mass ritual murder. Additionally, big business and globalist banksters in league with Satan reap massive profits for the killing and sacrifice of young men (lambs) on all sides of combat.

    If the flag is symbolic of the Constitution, that Constitution died long ago — destroyed by a crony railroad lawyer and mercantilist who made war on a sovereign people to benefit monied interests.

    If the flag is symbolic of freedom, that freedom no longer exists — stolen long ago by crony corporations and globalist banksters and unaccountable oligarchical black-robed satanists and idol worshippers who usurped their authority created laws out of thin air under the guise of "interpreting the Constitution" a dictate not granted them under the original document.

    The phony form of patriotism instilled within the population is strong leverage against independent thinking, keeping people ignorant of the treason by our own government.

    America today is a more advanced state of fascism than World War II Germany and Italy. Fascism never identifies itself as totalitarianism. It always calls itself democracy.

    Democracy is the politically correct word and cover term for modern American fascism.

    American fascism has all the attributes and trappings of benevolent totalitarianism. No, benevolent totalitarianism is not an oxymoron.

    The word benevolent in this instance means that the general perception of the population of the American system is that it is benevolent. This is only to say that modern America is full-blown fascism with a pretty face. It is every bit as deadly to human liberty as any tyranny in history and I would add far more sinister because of its propaganda sophistication.

    Any regime that can spin tons of fiat paper money with printing presses or electronically is a slave system regardless of what it calls itself or regardless of the general population's perception of it.

    Our mother has been transformed into a witch no matter how much we love her.

  • U.S. B-1B Bombers Fly Just Off Coast Of North Korea: 4 Reasons Why This Time It's Different

    Just before North Korea’s foreign minister was due to address the United Nations, the Pentagon announced that U.S. Air Force B-1B Lancer bombers escorted by fighter jets flew in international airspace over waters east of North Korea on Saturday, in a show of force which “demonstrated the range of military options available to President Donald Trump.” The flight was the farthest north of the demilitarized zone separating North and South Korea that any U.S. fighter jet or bomber has flown in the 21st century, the Pentagon added.


    B-1B Lancer prepares to take off from Andersen AFB, Guam, Sept. 23, 2017

    According to Reuters, the B-1B Lancer bombers came from Guam and the U.S. Air Force F-15C Eagle fighter escorts came from Okinawa, Japan. The Pentagon saod the operation showed the seriousness with which it took North Korea’s “reckless behavior.”

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    “This mission is a demonstration of U.S. resolve and a clear message that the President has many military options to defeat any threat,” said Pentagon spokeswoman Dana White, calling North Korea’s weapons program “a grave threat” adding that “we are prepared to use the full range of military capabilities to defend the U.S. homeland and our allies.”

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    The DMZ is a strip of land running across the Korean Peninsula near the 38th Parallel, separating North Korea from South Korea. It was created in 1953, following the armistice which ended the Korean War.

    The patrols came after officials and experts said a small earthquake near North Korea’s nuclear test site on Saturday was probably not man-made, easing fears Pyongyang had exploded another nuclear bomb just weeks after its last one. Reversing its original assessment, China’s Earthquake Administration said the quake was not a nuclear explosion and had the characteristics of a natural tremor.

    While the US has flown similar sorties before, according to The Aviationist, the show of force is a bit more interesting than usual, for four reasons:

    1. it is the farthest north of the Demilitarized Zone (DMZ) any U.S. fighter or bomber aircraft have flown off North Korea’s coast in the 21st century;
    2. unlike all the previous ones, the latest sortie was flown at night, hence it was not a show of force staged to take some cool photographs;
    3. no allied aircraft is known to have taken part in the mission at the time of writing, whereas most of the previous B-1 missions near the Korean Peninsula involved also ROKAF (Republic Of Korea Air Force) and/or JASDF (Japan’s Air Self Defense Force) jets;
    4. it was a U.S. Air Force job: no U.S. Marine Corps F-35B stealth jet took part in the show of force this time, even though the STOVL (Short Take Off Vertical Landing) variant of the Joint Strike Fighter has taken part in all the most recent formations sent over Korea to flex muscles against Pyongyang. The photo here below shows the “package” assembled for Sept. 14’s show of force.


    Munitions from a U.S. Air Force, U.S. Marine Corps and Republic of Korea Air Force (ROKAF)

    bilateral mission explode at the Pilsung Range, South Korea, Sept 17, 2017.

  • Spain In Crisis: Catalan Police Reject Madrid Takeover, Vow To "Resist"

    Spain found itself on the verge of a full-blown sovereign crisis on Saturday, after the “rebel region” of Catalonia rejected giving more control to the central government in defiance of authorities in Madrid who are trying to suppress an independence referendum on Oct. 1.

    As tensions rise ahead of the planned Catalan referendum on October 1, and as Madrid’s crackdown on separatist passions took a turn for the bizarre overnight when as we reported Spain’s plan to send boatloads of military police to Catalonia to halt the referendum backfired with dockers in two ports staging a boycott and refused access, on Saturday Spain’s Public Prosecutor’s Office told Catalan Police chief Josep Lluis Trapero that his officers must now obey orders from a senior state-appointed police coordinator, Spanish news agency EFE reported on Saturday.

    The Catalan Police, however, disagreed and as Bloomberg reports, the SAP union – the largest trade group for the 17,000-member Catalan Police, known as Mossos d’Esquadra – said it would resist hours after prosecutors Saturday ordered that it accept central-government coordination. The rejection echoed comments by Catalan separatist authorities.

    “We don’t accept this interference of the state, jumping over all existing coordination mechanisms,” the region’s Interior Department chief Joaquim Forn said in brief televised comments. “The Mossos won’t renounce exercising their functions in loyalty to the Catalan people.”

    The Mossos are one of the symbols of Catalonia’s autonomy and for many Catalans the prosecutor’s decision may be reminiscent of the 1936-39 Spanish Civil War and subsequent dictatorship of Francisco Franco, when the Mossos were abolished.

    In a joint press conference today with the Catalan home affairs minister Joaquim Forn and the Mossos chief Josep Lluís Trapero, Forn said that the move by Spain was “unacceptable”.

    “We denounce the Spanish government’s will of seizing the Mossos, as they did with Catalonia’s finances” Forn said adding that that “the Catalan government does not accept this interference, it bypasses all the institutions that the current legal framework already has in place to guarantee the security of Catalonia.” Additionally, Trapero expressed his intention to not accept the measure, which he described as “interference by the state”, and also warned that “it skips over all the bodies of the legal framework to coordinate the security of Catalonia”.


    Catalan minister Joaquim Forn (L) with Mossos chief Josep Lluís Trapero

    Earlier on Saturday, El Pais reported that Civil Guard Colonel Diego Perez de los Cobos, chief of staff of the Interior Ministry’s security department, was named by a prosecutor to coordinate the efforts of the Civil Guard, the National Police and the local Mossos.  Spanish media reported unnamed Home Office sources as saying the measure did not mean withdrawing any powers from the Mossos formally, but rather requiring them to submit to a joint coordination operation to stop the Catalan referendum taking place on October 1.

    However, shortly after the reshuffling, Catalan police chief Josep Lluis Trapero rejected giving up control to the central government during a meeting with the heads of the other police forces on Saturday, adding that all possible legal challenges would be studied. According to La Vanguardia Trapero “protested at that meeting about the decision to impose central government control” on the regional police force.

    Also on Saturday morning, as the police meeting in Barcelona took place, the regional interior minister, Forn, published a defiant message on Twitter: “We will encounter many difficulties. The state wants to take control of our self-government, but they will not stop us! #HelloRepublic”.

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    Ironically, as Bloomberg writes, while Mossos chief Trapero reports to the regional government, his force’s funding is mostly provided by Madrid and it’s supposed to take orders from judges and prosecutors from across the country. Article 155 of the Spanish Constitution lets the central government take control of a regional administration if it poses a threat to the national interest. Rajoy has already made moves in that direction.

    Earlier this week, the budget ministry took over management of Catalan’s finances and will issue paychecks to more than 200,000 public workers in the region, including the police.

    That said, any more direct challenge to the Mossos would be fraught with risk because Trapero, its leader, has become something of a local hero since leading the response to the terrorist attacks in August. Separatists are selling T-shirts with his face printed on them.

    According to Reuters, the Catalan government also believes that the Mossos takeover bypasses the Catalan statute  – article 164 – and constitutional law and the Spanish prosecutor that ruled in favour of Madrid taking control had overstepped his legal boundaries, saying that it had no power to rule on who had the authority to issue orders to Mossos.

    The prosecutor had ordered that the Catalan police, the Spanish National Police and Spain’s Guardia Civil be managed from the Ministry of Home Affairs in Madrid. The decision, according to the prosecution, aims at “reinforcing the operation to prevent crime and to keep public order” a week before the October 1 independence referendum.

     

    The decision was announced during a meeting between the prosecutor and the chiefs of the three police forces.

    The disobedience will fuel further speculation the Mossos will not work with the national Civil Guard in Spain’s largest regional economy. The standoff came a day after Prime Minister Mariano Rajoy’s government acknowledged it’s sending more reinforcements to help control street demonstrations and carry out a separate court order to halt the vote.

    Additionally, the latest move by Madrid will also increase the tension between the two sides which increasingly looks like it could descend into a direct confrontation as neither side appears to be willing to back down.


    Catalan President Carles Puigdemont speaking a pro-independence rally

    Carles Puigdemont, Catalonia’s president, called the independence vote in an attempt to push the secession movement forward after decades of political and legal fights over the region’s traditions and language. Since Rajoy took office in 2011, he’s had persistent clashes with separatists seeking to foment a backlash against Madrid. Catalonia is home to about 7.5 million people, or 16 percent of the population, but accounts for a fifth of the economy, on a par with Portugal and Finland.

    Several pro-independence groups have called for widespread protests on Sunday in central Barcelona. “Let’s respond to the state with an unstoppable wave of democracy,” a Whatsapp message which was used to organize the demonstration read.

    The Catalonian government opened a new website on Saturday with details of how and where to vote on Oct. 1, challenging several court rulings that had blocked previous sites and declared the referendum unconstitutional.

    “You can’t stem the tide,” Catalonia’s president Carles Puigdemont said on Twitter in giving the link to the new website.

    But Spanish Prime Minister Mariano Rajoy insisted again that the vote should not go ahead. “It will not happen because this would mean liquidating the law,” he said at the PP event in Palma de Mallorca. Acting on court orders, the Spanish state police has already raided the regional government offices, arrested temporarily several senior Catalan officials accused of organizing the referendum and seized ballot papers, ballot boxes, voting lists and electoral material and literature. The finance ministry in Madrid has also taken control of regional finances to make sure public money is not being spent to pay for the logistics the vote or to campaign.

    How this escalating clash between Madrid and Catalonia is resolved over the coming week will define the fate of Spain for years to come.

  • Putting America's Record-Breaking $20 Trillion Debt In Global Context

    The U.S. federal government just passed a record $20 trillion in publicly held debt. That’s bigger than the entire economy of every country in the European Union, combined.

    As HowMuch.net notes, the debt will only grow higher unless President Trump and the U.S. Congress can agree to unprecedented spending cuts combined with tax increases. 

    Don’t count on that happening anytime soon. Most people think that an eye-popping $20+ trillion debt is insurmountable, and in fact, it is the largest in the world by far.

    But when you look at another fiscal measure – the ratio of debt-to-GDP – the U.S. is not in the worst situation…

    Source: HowMuch.net

    HowMuch.net's visualization allows you to quickly see how the U.S. government’s debt compares to other countries around the world. The size of the country correlates to the size of the debt. The U.S. and Japan stand out because they have the highest debts in the world ($20.17T and $11.59T, respectively). Other countries, like Germany and Brazil, appear much smaller because their debts are comparatively tiny ($2.45T and $1.45T, respectively). We then color-coded each country according to its debt-to-GDP ratio. Green countries have a healthy margin, but dark red and fuchsia countries have debts that are even bigger than their entire economies.

    Top 10 countries with the Worst Debt-to-GDP Ratios 

    1. Japan (245% at $11.59T)
    2. Greece (173% at $338B)
    3. Italy (138% at $138B
    4. Portugal (133% at $274B)
    5. Belgium (111% at $111B)
    6. Spain (106% at $106B)
    7. Canada (106% at $106B)
    8. Ireland (105% at $105B)
    9. France (98% at $98B)
    10. Brazil (82% at $82B)

    The debt-to-GDP ratio is a critical metric for evaluating a country’s fiscal health. It makes a lot of sense for the American government to have a higher debt than a much smaller country, like Germany. Think about it like this: Bill Gates is worth $86 billion, so he can afford a much higher credit card bill than me or you.

    That’s why it’s important to consider the Gross Domestic Product (GDP) of each country, a number which represents the sum of all transactions occurring in the economy.

    Once you understand the public debt as a percentage of GDP, you get a level playing field for countries on different economic scales. When you think about it like this, the U.S. isn’t even among the ten worst sovereign debts in the world.

  • China's Maritime Strategic Realignment

    Authored by Brian Kalman, Daniel Deiss, Edwin Watson via SouthFront.org,

    China has begun construction of the first Type 075 Class Landing Helicopter Dock (LHD).

    Construction most likely started in January or February of this year, with some satellite imagery and digital photos appearing online of at least one pre-fabricated hull cell. The Type 075 will be the largest amphibious warfare vessel in the Peoples’ Liberation Army Navy (PLAN), with similar displacement and dimensions as the U.S. Navy Wasp Class LHD. The PLA has also made it known that the force plans to expand the current PLA Marine Corps from 20,000 personnel to 100,000.

    As China completes preparations for its new military base in Djibouti, located in the strategic Horn of Africa, it has also continued its substantial investment in developing the port of Gwadar, Pakistan. Not only will Gwadar become a key logistics hub as part of the China-Pakistan Economic Corridor (CPEC) and the “One Belt, One Road” trade initiative, but will also be a key naval base in providing security for China’s maritime trade in the region.  When these developments are viewed in conjunction with the decision to reduce the size of the army by 300,000 personnel, it is obvious that China has reassessed the strategic focus of the nation’s armed forces.

    The PLAN’s intends to expand the current force structure of the PLA Marine Corps fivefold, from two brigades to ten brigades. At the same time, the PLAN will be increased in size and capabilities, with many new, large displacement warships of varying types added to the fleet. Of particular interest, are the addition of at least two Type 055 destroyers, an indigenously designed and built aircraft carrier of a new class, two more Type 071 LPDs, and the first Type 075 LHD.

    China is rapidly gaining the ability to project power and naval presence at increasing distances from its shores. Not only is the PLAN expanding in tonnage, but its new vessels are considerably more capable. The PLAN will be striving to add and train an additional 25% more personnel over the next half a decade, in an effort to add the skilled crews, pilots, and support personnel that will facilitate such an ambitious expansion.

    The Chinese military leadership previously decided to double the number of AMIDs starting in 2014. A 100% increase in the PLA AMIDs and a 500% increase in the PLAMC denotes a major strategic shift in the defense strategy of the Chinese state. With the successful growth of the Silk Road Economic Belt/Maritime Silk Road Initiative, it becomes readily apparent that China must focus on securing and defending this global economic highway. China has made a massive investment, in partnership with many nations, in ensuring the success of a massive system of economic arteries that will span half of the globe. Many of these logistics arteries will transit strategic international maritime territories. In light of these developments, a military shift in focus away from fighting a ground war in China, to a greater maritime presence and power projection capability are quite logical.

    China began construction of a maritime support facility in Djibouti in 2016, to protect its interests in Africa, facilitate joint anti-piracy operations in the region, and to provide a naval base to support long range and extended deployments of PLAN assets to protect the shipping lanes transiting the Strait of Aden. In addition, China invested approximately $46 billion USD in developing the China-Pakistan Economic Corridor, including major investment in the infrastructure of the port of Gwadar. The governments of both nations desire the stationing of a flotilla of PLAN warships in the port, and possibly a rapid reaction force of PLA Marines. Gwadar is well positioned to not only protect China’s economic interests in Pakistan, but also to react to any crisis threatening the free passage of maritime traffic through the Strait of Hormuz. The forward positioning of naval forces will allow the PLAN to protect the vital crude oil and natural gas imports transiting the Suez Canal, the Gulf of Aden and into the Indian Ocean from routes west of the Horn of Africa. In light of the fact that 6% of natural gas imports and 34% of crude oil imports by sea to China transit this region, the desire to secure these waterways becomes readily apparent. Not only would the presence of PLAN warships and marines help to secure China’s vital interests in Pakistan and the China-Pakistan Economic Corridor in particular, but would also afford the PLAN a base of operations close to the Strait of Hormuz. Approximately 51% of all Chinese crude oil imports by sea transit the strait, as well as 24% of seaborne natural gas imports. Any closure of the Strait of Hormuz due to a theoretical military conflict or an act of terrorism or piracy would have a huge impact on the Chinese economy.

    Although the maritime trade routes transiting the Indian Ocean are of vital importance to keeping the manufacturing engine of China running uninterrupted, the South China Sea is of even greater importance. Not only does the region facilitate the passage of $5 trillion USD in global trade annually, but much of this trade is comprised of Chinese energy imports and exports of all categories. The geographic bottle neck of the Strait of Malacca, to the southwest of the South China Sea, affords the transit of 84% of all waterborne crude oil and 30% of natural gas imports to China. The closure of the strait, or a significant disruption of maritime traffic in the South China Sea, would have a devastating impact on the Chinese state. It is in the vital national interest of China to secure the region based on this fact alone. In addition, establishing a series of strategically located island outposts, covering the approaches to the South China Sea, affords China a greater ability to secure the entire region, establish Anti-Access/Area Denial (A2/AD) and defend the southern approaches to the Chinese mainland, while enforcing the nation’s claims to valuable energy and renewable resources in the region.

    China continues to expand and reinforce its island holdings in both the Paracel and Spratly archipelagos. The massive construction on Mischief Reef, Fiery Cross Reef and Subi Reef will likely be completed later this year. These three islands, in conjunction with the surveillance stations, port facilities and helicopter bases located on a number of key smaller atolls, afford China the capability to project power and presence in the region at a level that no other regional or global power can match.

    As China moves forward in expanding the PLAMC and the amphibious divisions of the PLA, it has maintained a swift schedule in shipbuilding which aims to provide a balanced and flexible amphibious sealift capability. China intends to tailor a modern and sizable amphibious warfare fleet that is capable of defending the growing maritime interests of the nation, and which can provide a significant power projection capability that can be employed across the full breadth of the Maritime Silk Road.

    The first two classes of amphibious vessels that were seen as essential to design, construct and supply to the PLAN were the Type 072A class Landing Ship Tank (LST) and the Type 071 class Landing Platform Dock (LPD). There are a total of six Type 071 LPDs planned, with four currently in service and the fifth vessel reaching completion this year.

    Plans to build a large LHD began in 2012, with a number of different designs contemplated. The class was known in intervening years as the Type 075 or Type 081. The Type 075 design was finalized and plans were made to begin construction in 2016. Although many analysts believe that the PLAN intends to build two such vessels, there will most likely be a need for one or two additional vessels of this class to meet the growing maritime security and power projection requirements of the nation. All signs point to the PLAN’s intentions of establishing two to three Amphibious Ready Groups (ARGs), as they have slowly and methodically developed a modern amphibious warfare skillset over the past two decades. They have taken a similar approach to establishing a modern carrier-based naval aviation arm.

    From what is known, the Type 075 will displace 40,000 tons, have an LOA of 250 meters, and a beam of 30 meter. The Type 075 will be fitted with a large well deck, allowing for amphibious operations by LCACs, AAVs, and conventional landing craft. Each LHD could theoretically carry approximately 1,500 to 2,000 marines, a full complement of MBTs and AAVs (approximately 25-40 armored vehicles), 60 to 80 light vehicles, and ample cargo stowage space. The helicopter compliment will most likely consist of approximately 20 Z-8 transport helicopters, two Z-18F ASW helicopters, one or two Ka-31 AEW helicopters, four Z-9 utility helicopters, and possibly 6 to 8 naval versions of the Z-10 attack helicopter. With no VSTOL fixed wing attack aircraft in service, the PLAN would most likely opt for using a rotary wing attack element for the LHDs.

    China has been slowly and methodically building the foundations of economic and military security and is offering those nations that cooperate as part of the New Silk Road/Maritime Silk Road a seat at the table. In order to create a mutually beneficial trade and transportation network, one that may soon supersede or compete against others, China must secure its vital interests, backed up by military force, and build a viable and sustainable naval presence in key maritime regions.

    China has clearly signaled that its defense strategy is changing.

    The Chinese leadership feels that the sovereignty of mainland China is secure and is shifting focus to securing the vital maritime trade lifeline that not only ensures the security of the nation, but will allow China to increase its economic prosperity and trade partnerships with a multitude of nations.

    Whether the United States decides to stand in the way of China’s growth or chooses to participate more constructively in a mutually beneficial relationship is yet to be determined. Without a doubt, China has set its course and will not deviate from this course unless some overwhelming force is brought to bear.

  • Trump Bars Breitbart From Alabama Rally As Feud With Bannon Escalates

    Apparently, this is what Steve Bannon meant when he swore he would never turn on his old boss during a series of interviews he gave after leaving the West Wing.

    The simmering feud between Breitbart and President Donald Trump intensified on Friday as the Trump communications team barred a Breitbart reporter from the press pool during a Trump rally in Alabama, where the president was campaigning for Luther Strange (aka "Big L") – his pick to permanently fill the Alabama senate seat vacated by Attorney General Jeff Sessions.

    Trump announced his support for Strange weeks ago, eliciting howls of outrage from Bannon and Breitbart, who have accused Strange of being a “swamp creature” and blasted him for his association with former Alabama Gov. Robert Bentley, who resigned earlier this year following a widely publicized sex scandal. Strange served as attorney general of Alabama (Sessions’ old job) under Bentley, and has been working with Trump for months after being appointed by Bentley to temporarily fill Sessions' old seat. 

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    But for better or worse, Strange is Trump's man – for now, at least – and the president showered him with praise during the rally. But while cycling through his greatest hits (everything from the second amendment, to Hillary-bashing, to his promised border wall), he found time to slip in a subtle dig at Bannon, joking that he had "fired" certain former staffers for disloyalty. Bannon and Breitbart have consistently supported  Alabama Supreme Court Roy Moore, who will face off against Strange in Tuesday's crucial Republican runoff primary.

    Anyone who has closely followed the many staffing changes at the White House will, of course, remember that Bannon and the White House communications department have offered conflicting accounts of the terms of his departure, with Bannon insisting that he left voluntarily, while the communications staff have suggested that he was fired.

    A similar ambiguity exists surrounding the terms of Bannon loyalist and former Breitbart employee Sebastian Gorka's departure, who, as luck would have it, appeared on Fox Business just minutes before Trump took the stage to slam the president over his support for Strange.

    In a brief segment, Gorka criticized Strange for his association with Bentley and claimed that Moore was the true “MAGA” candidate.

    * * *

    Of course, when Bannon – who is back running Breitbart – promised that he wouldn’t use the website as a cudgel against Trump, he did so with the caveat that Breitbart would hold the administration accountable should it abandon the nationalist, populist agenda that Trump promised the American people during the campaign.

    To wit, Breitbart has become increasingly frustrated with Trump’s perceived abdication of his nationalist agenda by sending more troops to Afghanistan (after promising to bring troops home) and, more intolerably, his decision to allow DACA to be preserved in law by striking a deal with “Chuck and Nancy.”

    And now it’s decided to turn its guns on Trump, publishing now fewer than hald a dozen anti-Strange or anti-Trump headlines during the Trump rally last night.

     

    * * *

    And now, Axios is reporting that Steve Bannon has been confirmed to headline a Roy Moore rally in Alabama Sunday night, alongside Phil Robertson of the popular show “Duck Dynasty.” Axios, which noted that Strange is also the pick of Majority Leader Mitch McConnell, a perennial Bannon foe, explained that “for Bannon to make a rare public appearance in such close proximity to Trump shows how invested he is in the race specifically, and attacking McConnell more generally.” But in attacking McConnell, in this instance, he is also striking at Trump.

    In keeping with his promise to always support Trump against the establishment forces that Bannon says are trying to co-opt the Trump presidency, Axios reported that the Bannon camp is trying to spin the attacks against Strange as an indirect way of “supporting” Trump.

    "Steve is coming to Alabama to support President Trump against the Washington establishment and Mitch McConnell. Steve views Judge Moore as a fierce advocate of Trump and the values he campaigned on."

    To be sure, Breitbart’s strategy may be working. Trump appeared to admit during the rally last night that his Strange endorsement may have been a mistake, and that he would support Moore if he wins.

    While the crowd at Friday’s rally cheered mightily for Trump, the cheers for his chosen candidate were less enthusiastic. As of Saturday afternoon, Moore leads Strange by nearly 9 percentage points in the RealClearPolitics polling average.

    Whoever wins Tuesday’s primary has a virtual lock on the senate seat. And as the race draws closer, we expect to hear more from Trump. But will Breitbart succeed in convincing him to change his endorsement?

    Given Trump’s distaste for “losers”, we imagine it’s not out of the question. 

  • America's 'Fake' Stability & Boobs On Credit

    Authored by Jim Quinn via The Burning Platform blog,

    Do you ever hear something so startlingly mind numbingly ridiculous you realize it must be a sign things have gotten so fucked up something has got to give?

    As I was driving to work yesterday morning on the Schuylkill Expressway a commercial comes on the radio from a plastic surgeon advertising for anyone looking for a better set of boobs. I had never heard a plastic surgeon commercial before, so I thought that was unusual. But, that wasn’t the best part. This plastic surgeon was offering no money down 18 month interest free financing on your new boobs.

    I wonder if they are moving boobs with subprime debt the same way the auto companies have used subprime debt to move cars. Of course, when a deadbeat defaults on an auto loan the car is easily repossessed. What happens when a bimbo defaults on her boob loan? How narrow minded of me.

    What happens when some dude who wants to be a bimbo defaults on his/her loan? I guess it was just a matter of time before breast enhancement met debt enhancement in this warped world of materialism, narcissism, financialization, and delusions.

    Now that revolving credit has reached a new all-time high of $1 trillion and total consumer debt outstanding has exceeded it’s 2008 peak at $12.8 trillion, the Fed has completed its job of helping the average American again in-debt themselves up to their eyeballs. This is considered a success story in this twisted, perverted, bizarro world we call America today. The solution to an epic debt induced global financial catastrophe caused by Federal Reserve easy money, Wall Street fraud, and Washington DC corruption has been to increase global debt by 50% since 2007, with virtually all of it created by central bankers and the governments they control.

    In what demented Ivy League educated academic mind would piling $68 trillion more debt on the backs of taxpayers as a cure for a disease caused by the initial $149 trillion of debt be considered rational and sustainable? It’s like having pancreatic cancer and trying to cure it with a self inflicted gunshot. And no one seems to care about or even notice the coming reset when this mass debt induced hysteria of delusion turns into the biggest financial collapse in the history of mankind.

    This entire ponzi scheme edifice of debt is nothing but a confidence game. When people begin to realize they can’t repay their own debts, start to understand their governments will never honor their debt based promises, and realize central bankers are nothing more than pretend wizards behind a curtain, the confidence will evaporate in an instant and a collapse which will make 2008/2009 look like a walk in the park will ensue. That’s when civil and global war will engulf the world and teach people real lessons about the real world.

    The boobs on credit commercial I heard this week is just another example of Wall Street and their Deep State crony co-conspirators completing their scheme to financialize every aspect of our lives and entrap us in chains of debt, beholden to these modern day Wall Street slave owners. When you see the record number of retail bankruptcies and store closings happening when GDP is supposedly rising by 3% and witness with your own two eyes the number of vacant storefronts and restaurants across our great land of materialism, you might wonder why revolving credit card debt is at a new all-time high.

    The answer is Wall Street has successfully financialized virtually every aspect of our day to day lives. Consumer and taxpayer transactions which required cash or check ten years ago can now be paid with a credit card. You can pay your IRS bill with a credit card. You can pay your real estate taxes with a credit card. You can pay your utilities with a credit card. You can pay your school tuition with a credit card. You can pay your rent with a credit card. You can “buy” furniture and appliances without paying for seven years. And guess what? That’s what millions of average Americans are doing. In addition, they are driving “rented” $35,000 automobiles on seven year nothing down payment plans.

    This massive debt induced fraud of a recovery gives the appearance of normalcy and stability. The stock market is at all-time highs is used as the narrative of central banker success. We’ve experienced extremely low volatility as the central bankers around the world have coordinated their money printing/debt creating schemes to purposely elevate financial markets to give the masses confidence that all is well. Anyone with critical thinking skills knows all is not well. The longer this fake stability is maintained the greater the collapse. Success breeds disregard for the possibility of catastrophe.

    So you can call me the boy who cried wolf, but our Minsky Moment is approaching.

    Sometimes they do ring a bell at the top.

    In this case they are shaking fake boobs at the top.

    “Stability leads to instability. The more stable things become and the longer things are stable, the more unstable they will be when the crisis hits.”Hyman Minsky

  • Elon Musk Isn't Alone: Vladimir Putin Asks "How Long Before The Robots Eat Us"

    Elon Musk isn’t the only one whose afraid that advances in artificial intelligence will leads to something akin to the creation of Skynet.

    The Daily Mail is reporting that Russian President Vladimir Putin has expressed reservations about artificial intelligence, even asking the head of Russia's largest tech firm 'how long do we have before the robots eat us'?

    The Russian president was speaking to Arkady Volozh, chief of internet firm Yandex, during a tour of the company's Moscow headquarters, the Daily Mail reports. Volozh was discussing the “potential” of AI when he discovered that Putin has a dramatically different interpretation of what that might be.

    According to state-funded Russian broadcaster RT, the question baffled Volozh.  

    “I hope never”, he replied after taking a pause to gather his thoughts. “It’s not the first machine to be better than humans at something. An excavator digs better than we do with a shovel. But we don’t get eaten by excavators. A car moves faster than we do…”

     

    But Putin seemed unconvinced. “They don’t think,” he remarked.

     

    Volozh acknowledged that it was true and scrambled back to his speech on AI’s merits.

    Putin hasn’t always harbored such a pessimistic view of AI. When asked earlier this month by a group of kids about who would rule the world in the future, Putin said it would be whatever country manages to perfect artificial intelligence.

    As RT points out, tech firms like Google and Facebook are developing new AI technology as an increasing number of online services rely on algorithms, including search engines, automated translation between languages, image enhancement and targeted advertising, an area that recently got Facebook into hot water when its self-reporting ad algos created a targeting category using the keywords "jew hater."

    Musk has repeatedly warned that AI could cause World War III. Unless the technology is properly regulated, he said, it represents a much bigger threat to the security of the US than North Korea.

    Of course, Musk has been criticized for his paranoid views by such tech luminaries as Facebook CEO Mark Zuckerberg, who said he was “optimistic” about AI’s potential.

    Whatever happens with AI, hopefully it doesn’t come to this.


     

  • The Sermon On The Mount[ain Of Debt]

    Via Global Macro Monitor,

    “Blessed are the young, for they shall inherit the national debt.” – President Herbert Hoover

    The Hoover administration thought there was no room and was ideologically opposed to fiscal expansion to stimulate aggregate demand.  Furthermore, Keynesian theory was not even developed at the time.  The General Theory of Employment, Interest and Money  was not published until February 1936.

    A policy error, partially due out of  ignorance, that led to the Great Depression, though it was monetary policy and the Fed’s failure as “lender of last resort” that “put the Great in the Great Depression.”

    …what happened is that [the Federal Reserve] followed policies which led to a decline in the quantity of money by a third. For every $100 in paper money, in deposits, in cash, in currency, in existence in 1929, by the time you got to 1933 there was only about $65, $66 left. And that extraordinary collapse in the banking system, with about a third of the banks failing from beginning to end, with millions of people having their savings essentially washed out, that decline was utterly unnecessary  – Milton Friedman

    Here is Ben Bernanke,

    The problem within the Fed was largely doctrinal: Fed officials appeared to subscribe to Treasury Secretary Andrew Mellon’s infamous ‘liquidationist’ thesis, that weeding out “weak” banks was a harsh but necessary prerequisite to the recovery of the banking system. Moreover, most of the failing banks were small banks (as opposed to what we would now call money-center banks) and not members of the Federal Reserve System. Thus the Fed saw no particular need to try to stem the panics. At the same time, the large banks – which would have intervened before the founding of the Fed – felt that protecting their smaller brethren was no longer their responsibility. Indeed, since the large banks felt confident that the Fed would protect them if necessary, the weeding out of small competitors was a positive good, from their point of view. – Ben Bernanke

    National Debt

    06/29/1929 =  16,931,088,484.10    (16.8 % of GDP)

     

    09/20/2017 =  20,179,769,858,967.22     (104.9 % of GDP)

    Source:  U.S. Treasury Department

    How many generations can keep “kicking the can down the road”?

    Ernest Hemingway “kicking the can the down the road” in Sun Valley, Idaho.

    Have we finally bumped up against the upper bound of the debt limit?   “This Time Is Different.”

    Prepare for the “clash of generations.”

    It has already started.

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Today’s News 23rd September 2017

  • Will The Deep State's War On Trump Lead To An Actual Civil War?

    Authored by Andrew Karybko via Oriental Review,

    Oriental Review is publishing the English original of Andrew Korybko’s interview with an Iranian newspaper from earlier this month.

    After only eight months after entering into office, we have witnessed the resignation and dismissal of 15 high-ranked people from the White House. In view of this, do you think that Trump will be able to finish his first term? Some analysts suggest that he won’t, so how unstable do you think the political situation in the US, and how serious of a threat does it pose to Trump’s presidency?

    There have been over a dozen high-level and much-publicized personnel shifts in the Trump Administration in the past 9 months, but they shouldn’t be interpreted as signaling that the President himself will be leaving anytime soon. These are all just casualties of Trump’s war with the “deep state” (permanent military, intelligence, and diplomatic bureaucracies), whereby the vested power interests in the US are fighting to defeat the “Make America Great Again” (MAGA) movement. Throughout the course of this conflict, Trump has clearly been thrown on the defensive as he’s had to compromise on his promised foreign policy platforms in order to retain a chance at succeeding on the domestic front, but even that looks uncertain right now in some respects as the “deep state”, aided by the RINOs (Republicans In Name Only), relentlessly continues to chip away at MAGA in order to retain their power and influence.

    If they can force Trump into submission and turn him into their puppet, as they’re trying to do, then there would be no need to attempt to remove him from office; likewise, if he continues to resist in some capacities, as he’s doing on domestic issues, then this scenario because more possible. Even so, it’s unlikely to succeed except in the event that Trump’s enemies can pull off turning him into the “fascist dictator” that they’ve fear mongered he’d become even before he was elected.

    The only conceivable way for this to happen is if the domestic unrest in the US between the Alt-Left and Alt-Right becomes so uncontrollable that Trump is forced to implement limited martial law, and if (or likely when) a racial minority or group thereof is killed during this time, regardless of the circumstances, this would be used to swiftly bring about attempted impeachment charges on whatever trumped-up pretext can be made. It’s not being implied that this will succeed, but just that if one talks about the impeachment scenario, then this is the only one out of the wide array that are being bandied about which has any realistic chance of succeeding, though the odds are nevertheless still slim.

    “The New Yorker” recently published an article which said that racism and fascism have been on the rise after Trump’s election, pointing to the incident in Charlottesville as proof of that. In your view, what’s the risk that this will spark a war between the left and right in the US?

    “The New Yorker”, given its liberal-progressive and endemic anti-Trump bias, shouldn’t be trusted as a reliable source of information, but the fact that it’s pushing the Mainstream Media narrative about Trump coming to power on the backs of racists and fascists deserves to be elaborated on. This is a false stereotype which suggests that “white” (Caucasian) people are racists simply because of their skin color, and therefore voted for Trump on that basis alone, which isn’t the case at all and is condescending to the tens of millions of people who supported him for his policies.

    That being said, there are indeed some actual racists and fascists who openly support Trump, but they’re such a small minority of the population as to be statistically irrelevant. For instance, the notorious Ku Klux Klan only has several thousand members nationwide, which pales in comparison to the at least 100,000-200,000 members of the Alt-Left militant group “Antifa”, which has proven to be much more violent and dangerous than their Alt-Right counterparts.

    The reason why the “deep state” is trying to link racists and fascists to Trump is to discredit his election victory, so their affiliated Mainstream Media proxies amplify the voices and numbers of a tiny minority of a minority of individuals in order to promote this perception. Nevertheless, they are dangerous and deserve to be condemned, though to be fair, so too should most of their Alt-Left counter-protesters, and for even more urgent reasons.

    When “Antifa” is heralded as “heroes” despite their wanton destruction and actual fascist-like violent intolerance for any dissenting views, this lends “legitimacy” to their tactics and “normalizes” them, essentially turning Far-Left street destabilizations into an accepted part of life for the elite because of their weaponized instrumentalization in intimidating the vast majority of Trump’s non-racist non-fascist base.

    In turn, this can only provoke a defensive reaction from these people which spikes the chances of Left-Right clashes becoming as common in the future in America’s cities as gangland shootings are today.

    To tie all of this in with the previous question, the reason why the “deep state” and Soros-affiliated Alt-Left groups want to spark such pronounced disorder and chaos in the US is to fuel a Color Revolution which would then rapidly descend into an Unconventional War of urban terrorism and political killings, all with the intent of driving Trump to become the “fascist dictator” that they fear mongered he’d become so as to have a basis for pushing through impeachment proceedings against him should racial minorities be killed if he implements limited martial law in response.

  • Japan's Lonely Single Men Are Settling For Virtual Reality "Wives Of The Future"

    In a country where over 70% of unmarried men between 18 and 34, and 60% of women, have no relationship with a member of the opposite sex, and where birthrates are among the lowest in the world after Japanese women gave birth to fewer than one million babies in 2016 for the first time since the government began tracking birth rates, Bloomberg reports on an industry that’s profiting off the reluctance of young Japanese men and women to find a human partner.

    What Bloomberg calls the “virtual love industry” in Japan has blossomed into a multi-million-dollar concern as unmarried men and women increasingly turn to simulated digital offerings for companionship.  Inventors create applications that essentially allow users to build a ‘virtual wife’ or ‘virtual husband’. While we imagine virtual companions bring badly needed comfort to millions of lonely Japanese, as Bloomberg notes, the industry does have a dark side: Some virtual-reality offerings promote unrealistic and even damaging portrayals of women as submissive. And men as domineering and menacing.

    “Starting today, you live here now, with me,” he snarls. “I expect you to keep me entertained.” Wait, isn’t that his job?

     

    A real young man on the streets of Akihabara, a district of Tokyo known for its anime and manga culture, is impressed by a demo of the game but declares, cringing, “Getting hit on by a man—it was pretty embarrassing.”

     

    Simple companionship isn’t Takechi’s only vision. His virtual world of husband and dutiful wife, he says, “could develop into love, if we keep investigating further.”

    One inventor who build a virtual-reality platform said he aims to create a virtual partner who brings greater satisfaction to Japanese men and women than a human companion would. That’s bad news for the Japanese economy, which, thanks to the looming demographic crunch as the population rapidly ages, will need to increasingly rely on the Bank of Japan’s “stimulus” to avoid a deflationary spiral.

    “She’s always there, always listening, ready to cater to her husband’s every whim. Meet Azuma Hikari, Japan’s digital “wife of the future,” according to her inventor, Minori Takechi, who believes his AI construct can go some way toward solving Japan’s problem with loneliness.

     

    Hikari lives in a bubble—like, an actual bubble, or a little transparent cylinder at any rate—in a skimpy outfit, lending a sympathetic ear to her man’s troubles, responding to commands, and flirting (“bath time—do not peep!”). Age: 20. Height: 158 centimeters. Specialty: fried eggs. Dislike: insects. So, less like Siri, more like Offred.

     

    Takechi set out to create a partner who “brings greater satisfaction than human interaction.” Best of all, Hikari is bashful, so her owner “doesn’t have to communicate with her all the time,” Takechi says with a shy grin, in the second video in our Love Disrupted series. He is selling his prototype for $2,700 and reports 300 pre-orders, mainly from men in their 20s and 30s.”

    At any rate at matter, should North Korean Leader follow through with his threats to “sink” Japan with nuclear weapons, a decision that, using the logic of certain investment banks, would represent an unprecedented economic stimulus.
     

    * * *

    Meanwhile, we recently noted that the thriving market for lifelike sex dolls may have jumped the shark after a company offering sex doll rentals shuttered its new venture after less than a week after it inspired a storm of controversy. But we doubt that setback will forestall more advances in sex doll technology. For a look at what's to come, the Daily Star recently published a look inside the sex doll workshop of Spanish scientist Dr Sergi Santos, who recently produced a talking sex robot named Samantha.

    The Daily Star published some exclusive photos of Santos's "works in progress"…

    Many of the images of the dolls mimicking real-life situations are simply uncanny…

    It's a silicone angel…

    And here's video from inside the workshop…

     

     

  • Blowback? – Mizzou Enrollment Tumbles To Lowest Since 2008

    Amid ongoing fallout from the negative media attention and student (and faculty) protests that rocked campus in 2015, the University of Missouri recently welcomed its smallest student body since 2008.

    As Campus Reform has repeatedly reported, the embattled university has taken hit after hit, starting with a $32 million budget shortfall and a five-percent budget cut, followed by a seven-percent drop in freshmen enrollment heading into last school year.

    As some may remember Mizzou hit the headlines after Melissa Click, a journalism professor, won infamy nationwide for her behavior during race-related protests at MU in November 2015.

    When a student journalist tried to cover the public protests, Click physically confronted him, saying he had no right to be there and needed to “get out.”

    When the journalist resisted, Click called for “some muscle” to try forcing him back.

    The student’s video of Click quickly went viral, and attracted the attention of Missouri lawmakers, more than 100 of whom signed a petition demanding Click’s termination. Click herself was eventually hit with misdemeanor assault charges, which were dropped after she agreed to perform community service. Initially, the school said Click’s fate would be decided during her tenure hearing in August, but in February the school’s board gave in to outside pressure and fired her.

    And, as Campus Reform's Anthony Gockowski reports, since then it has been downhill for the University…

    More recently, Mizzou shuttered seven residence halls due to a drastic drop in enrollment, renting some of the vacant rooms out to sports fans to help make up for the school’s many financial woes, and cut 474 jobs.

    Now, The Dothan Eagle reports that the university is facing the lowest levels of enrollment since 2008, with official numbers showing that enrollment is down 12.9 percent.

    Additionally, the Eagle notes that, with the exception of the senior class, every incoming class is smaller than last year’s, and even international enrollment fell by 12.1 percent.

    This year's freshman class is the smallest since 2008, with enrollment down about 33% from its peak in 2015.

  • From "Dotard" To "Old, Insane, B***h": Here's A List Of North Korea's Most Memorable Insults

    North Korean leader Kim Jong Un unwittingly set the internet on fire Thursday night when he proclaimed that US President and purported Kim BFF Donald Trump was a “mentally deranged dotard” and a “rogue and a gangster.”

    Kim’s usage of the arcane vocab word prompted hundreds of thousands of people ask Google what exactly is a dotard? (for the record, it’s a pejorative term for a senile old man).

    As the Sun newspaper points out, Kim’s latest viral proclamation follows a pattern of North Korean media serving up memorable – if sometimes nonsensical – soundbites in their attacks on American politicians.

    And in a list dating back to the Bush Administration – when Kim Jong Un's father Kim Jong Il was still running the country – the Sun recounts some of North Korea's most memorable missives to their American “imperialist” adversaries.

    Cory Gardner:

    When Senator Corey Gardner called Kim a “whack job” in May, the dictator was less than pleased. State media quickly responded, saying that Gardner was “human dirt”.

    A statement said: "It is a serious provocation that Gardner, like a psychopath, dare to bear the evil that dares our highest dignity.

    "It is America’s misfortune that a man mixed in with human dirt like Gardner, who has lost basic judgement and body hair, could only spell misfortune for the United States."

    Obama:

    In 2014, North Korea branded then-US President Barack Obama a "juvenile delinquent", a "clown" and a "dirty fellow.” The North’s remarks verged on outright racism when they said Obama "still has the figure of monkey while the human race has evolved through millions of years."

    KCNA added that Obama "does not even have the basic appearances of a human being" and, in a particularly vile statement, called him: "a wicked black monkey".

    John Kerry:

    Also in 2014, an unidentified North Korean spokesperson poetically described then-Secretary of State John Kerry a "wolf donning the mask of sheep" who had a "hideous lantern jaw.”

    Hillary Clinton:

    Kerry’s predecessor, Hillary Clinton, was described in 2009 as "by no means intelligent" and a "funny lady".

    "Sometimes she looks like a primary schoolgirl and sometimes a pensioner going shopping," an unnamed North Korean source said.

    Park Geun-Hye:

    The reclusive regime has also made former South Korean President Park Geun-hye a popular target, alternately naming her as a "senile granny", a "tailless, old, insane bitch", and "a traitor for all times".

    George W Bush:

    North Korea famously labeled Bush a “hooligan” who “looked like a chicken soaked in rain.”

    Dick Cheney:

    The former vice president was accused of being “a most cruel monster and bloody-thirsty beast.” Yet no jokes about his aim.

    Donald Rumsfeld

    The North blasted Rummy, labeling him a “political dwarf” and “human scum.”

    If there’s an upside to the US’s reluctance to foment regime change in the North, it’s that North Korea’s leader, and its ministry of propaganda, will probably keep churning out these colorful little nuggets.
     

  • Australia Cracks Down On Foreign Real Estate Buyers As "Ghost Towers" Increasingly Outrage Locals

    As we’ve discussed frequently over the past several years, home prices in some of Australia’s largest markets have gone completely vertical since 2013 as wealthy Chinese buyers have increasingly sought safe havens outside of the mainland to launder invest their cash.  Per the chart below, home prices in Melbourne have more than tripled since 2002 and Sydney is almost as bad.

    Not surprisingly, the bubbly home prices have angered locals, not only because they’ve been priced out of the market by foreign buyers, but more so because those foreign buyers scoop up prime real estate and then proceed to let it sit vacant.  The problem is so pervasive that these luxury towers, with apartments approaching $1 million, have been dubbed “ghost towers” by locals.  Per Bloomberg:

    These “ghost towers,” as the high-end residential property with three-bedroom apartments costing almost $1 million have been dubbed, are popular with Chinese investors who mostly live abroad. Their darkened blocks loom as sparsely occupied symbols of a property market where even solidly middle class households have increasingly found themselves priced out.

     

    Now, policy makers are seizing on public resentment and hitting foreign buyers with more taxes. New South Wales has doubled its surcharge when foreigners purchase residential property, and Western Australia has added a new tax as well. More controversially, both the conservative federal government and the left-leaning one in Victoria state that includes Melbourne this year imposed additional taxes on properties deemed to be empty for six months or more.

     

    More than 60 percent of Sydney residents blame foreign investment for the rising prices, according to a survey by University of Sydney academic Dallas Rogers. The idea of taking prime real estate out of the housing supply and leaving it vacant has become a focus of anger as homelessness has risen and hundreds of people have been camping in the rough out outside places like the Reserve Bank of Australia.

     

    “It’s just absurd,” said Tony Keenan, chief executive officer of affordability advocacy group Launch Housing, referring to the fact that Australia’s long period of uninterrupted growth should have ensured homes for everyone instead of “record levels of homeless and massive construction with empty properties at the end.”

     

    An analysis of Australian census data by the City Futures Research Centre found more than one in 10 homes unoccupied on the night of the count last year, with empty properties having risen 19 percent in Melbourne and 15 percent in Sydney since the last census five years previously.

     

    Foreigners, mainly from China, purchased 25 percent and 16 percent of the new housing supply in New South Wales and Victoria, respectively, in the year through September 2016, according to a Credit Suisse Group AG examination of state tax receipts.

    But, much like Vancouver where city officials slapped foreign nationals with a 15% transfer tax on home purchases last summer, the city of Melbourne has decided to fight back by imposing its own taxes to curb what increasingly looks like one of the world’s largest housing bubbles.

    Melbourne’s tax of 1 percent of an empty home’s value takes effect in January, adding to a nationwide tax imposed in May that starts at A$5,500 ($4,400) and scales sharply upward for properties worth more than A$1 million.

     

    Figuring out if a home is vacant is a vexing subject for public officials. Those in Victoria have said they plan to ask owners to self-declare, and also intend to monitor electricity and water usage to find cheaters. The Australian Taxation Office suggests the government investigate tips from informants. Other potential sources could include postal data or tax returns, said Catherine Cashmore, president of land tax reform group Prosper.

     

    But real estate professionals say it’s easy enough to hire someone to come in and turn on switches and taps, making a place appear lived-in. Agents say many properties are only temporarily empty, waiting for children to attend university or a family to able to move in. They also raise questions of fairness.

    Of course, not everyone is happy with the new taxes, including Monika Tu who has undoubtedly made a fortune helping rich Chinese buyers launder money through the Australian real estate market.

    “What next?” said Monika Tu, the Sydney-based director of Black Diamondz, which specializes in high end property sales to mainly Chinese buyers. “Shall we tax people who buy new shoes and don’t wear them?’’

    Sorry, Monika…you can always move to Seattle…we hear they’re still very receptive to helping launder Chinese cash…

  • Pictures Of Pyongyang: WSJ Unveils Never-Before-Seen Images From North Korea's Showcase Capital

    For the first time since 2008, a team of Wall Street Journal journalists has been allowed to visit and document the North Korean capital city of Pyongyang just as tensions between the US and its longtime geopolitical foe are reaching a boiling point.

    The team of reporters was taken on a guided tour of the showcase capital, reporting that the country’s nuclear ambitions appear to be etched into the city’s landscape. Giant sculptures of atoms sit on top of new apartment towers built for the country’s nuclear scientists.

    The atomic aesthetics, WSJ said, only reinforced the idea that the country would never voluntarily part with its nuclear program.

    “During a recent visit, the first by The Wall Street Journal since 2008, the city’s atomic aesthetics reinforced the message government officials conveyed repeatedly to the Journal reporters: North Korea won’t part with its nuclear weapons under any circumstances and is resolved to suffer economic sanctions and risk war with the U.S. to keep them.”

    One North Korean official told the WSJ that the country has ”grown up” and that it isn’t “interested in dialogue that would undermine our newly built strategic status.”

    WSJ noted that North Korea launched a ballistic missile over Japan on the second day of the trip. And hours after the group departed, US President Donald Trump vowed to “totally destroy North Korea” if the US is required to defend itself or allies, saying leader Kim Jong Un, whom he called “Rocket Man”, was on a “suicide path for himself and his regime.”

    However, the two English-speaking diplomats in dark suits who chaperoned WSJ’s reporters during their trip took a “more measured tone.”

    Over the next few days, they monitored several official interviews, visits to city landmarks and brief encounters with a handful of Pyongyang residents, which appeared to signal a rare outreach campaign by the government for outside news organizations to convey what it sees as the logic of its nuclear-weapons program. The US and North Korea don’t have diplomatic relations, and even indirect contact is limited.

    North Korea only allows outside media to visit with the explicit sanction of the state, and visitors are kept under close watch. Authorities granted WSJ requests to visit factories and stores, which were chosen by the government.

    Here is a collection of photos the reporters took during their visit to Pyongyang:

    An atomic sculpture outside a newly constructed residential building for the country's nuclear scientists.

    Children play with plastic weapons at an orphanage in Pyongyang.

    The Dear Leader…

     

    The entrance hall at Pyongyang’s new science library, crowned by a painting of former leaders Kim Il Sung and Kim Jong Il…

    A replica of a North Korean rocket stands in the center of the science library…

    In another telling detail, WSJ spoke with Ri Song Ho, who directs the Golden Cup Trading Co. factory, which produces some 700 different snacks, sodas, breads and sweets. Among its brands is a cake featuring an image of a North Korean rocket ready for launch.

  • "This Is Embarrassing": 2 People Show Up For iPhone 8 Launch in China

    Confirming reports that reception for Apple’s newly launched iPhone 8 may be “underwhelming” to put it lightly, as the phone provides little if any material improvement over its lower-priced predecessor even as sales for hardcore fans will be cannibalized by the iPhone X, is the following report from Hangzhou, China which shows that all of 2 people were waiting in line for the latest gizmo from Tim Cook.

    As Chinese media reports, summarized by David Kersten, “note the barricades for the anticipated queue…

    … that had to be put away because only 2 people showed up.”

    Some more details:

    I’ve C&P’d this article, clumsily translated by Google, because, being from a Chinese site, it doesn’t adapt well to the Facebook environment, however, the link is provided as are the pictures.

     

    “Embarrassing! IPhone 8 today, Hangzhou, security guards are busy removing the fence.

     

     

    September 22, the Bank of China iPhone 8 officially opened in the major channels. Hangzhou Apple West Lake shop, more than six in the morning to thirty or forty security. Black fence posture full of a row of rows, turn a few 90 degrees bend. 8:00 to open the door, the door on the two line up. 8:43 security guards began to withdraw fence …

     

     

    According to Hong Kong media, and the mainland, Hong Kong, Apple shop customers have no more employees.”

     

    With the iPhone 8 a dud, at least in China, AAPL longs are hoping that the reception for the iPhone X in a few weeks will be notably more enthusiastic, or else Apple may have a major problem on its hands.

  • Russia Warns US In Unprecedented "Secret" Face-To-Face Meeting Over Syria, But What's The Endgame?

    The moment the first Russian jet landed in Syria at the invitation of the Assad government in 2015, Putin placed himself in the driver's seat concerning the international proxy war in the Levant. From a strategic standpoint the armed opposition stood no chance of ever tipping the scales against Damascus from that moment onward. And though US relations with Russia became more belligerent and tense partly as a result of that intervention, it meant that Russia would set the terms of how the war would ultimately wind down.

    Russia's diplomatic and strategic victory in the Middle East was made clear this week as news broke of "secret" and unprecedented US-Russia face to face talks on Syria. The Russians reportedly issued a stern warning to the US military, saying that it will respond in force should the Syrian Army or Russian assets come under fire by US proxies. 

    The AP reports that senior military officials from both countries met in an undisclosed location "somewhere in the Middle East" in order to discuss spheres of operation in Syria and how to avoid the potential for a direct clash of forces. Tensions have escalated in the past two weeks as the Syrian Army in tandem with Russian special forces are now set to fully liberate Deir Ezzor city, while at the same time the US-backed SDF (the Arab-Kurdish coalition, "Syrian Democratic Forces") – advised by American special forces – is advancing on the other side of the Euphrates. As we've explained before, the US is not fundamentally motivated in its "race for Deir Ezzor province" by defeat of ISIS terrorism, but in truth by control of the eastern province's oil fields. Whatever oil fields the SDF can gain control of in the wake of Islamic State's retreat will then used as powerful bargaining leverage in negotiating a post-ISIS Syria. The Kurdish and Arab coalition just this week captured Tabiyeh and al-Isba oil and gas fields northeast of Deir Ezzor city.

    The race is underway for Syria's most oil rich province. Syrian War Report (9/22/17) courtesy of  SouthFront.

    At various times the Syrian-Russian side has come under mortar fire from SDF positions, even as Russia and the US are theoretically said to coordinate through a special military hotline. The SDF for its part claims it too has come under attack from the Syrian Army. The most significant event occurred just over a year ago when the US coalition launched a massive air attack on Syrian government troops in Deir Ezzor near the city's military airport at the very moment they were fighting ISIS. The US characterized it as a case of mistaken identity while Syria accused the US coalition of directly aiding ISIS by the attack. The end result was about 100 Syrian soldiers dead and over a hundred more wounded while ISIS terrorists were able to advance and entrench their positions. 

    Though US officials disclosed few elements of this week's unusual meeting, the US side did confirm Russia's threat of returning fire should Syrian soldiers come under attack. US coalition spokesman Colonel Ryan Dillon confirmed that, “They had a face-to-face discussion, laid down maps and graphics.” But the Russians publicly delivered further details outlining its message to the US military. Russian Major-General Igor Konashenkov said in a statement,“A representative of the U.S. military command in Al Udeid (the U.S. operations center in Qatar) was told in no uncertain terms that any attempts to open fire from areas where SDF fighters are located would be quickly shut down.” He added that, “Fire points in those areas will be immediately suppressed with all military means.” Russia has further openly accused the US of violating previously agreed to 'de-escalation' zones in Idlib (as part of Astana talks) using al-Qaeda proxies to engaged the Syrian Army in Idlib.

    The US coalition hinted in its statements that future military-to-military talks could continue regarding coordination in Syria. Though Russian warnings sound alarmist, and though the situation is increasingly very dangerous for the prospect of escalation, the US side appears to be in a vulnerable enough position to listen. The fact that the meeting occurred in the first place and was publicly acknowledged by the Pentagon is hugely significant as a US ban on such direct military talks was put in place after the collapse in relations between the two nations following the outbreak of the Ukraine proxy war in 2014.

    In reality some degree of US-Russian back channel communication and intelligence sharing probably existed long before the SDF made gains in Syria's east – this according to Seymour Hersh's 2016 investigation entitled, "Military to Military". Though (ironically) the CIA's push for regime change against Damascus was still operational and presumably in full gear at that time, the Pentagon's actions in Syria were always perhaps more humble regarding pursuit of regime change.

    But what are current Pentagon plans for its SDF proxy?

    It's no secret that the core component force of the SDF – the Kurdish YPG – has at times loosely cooperated with the Syrian government when the situation pragmatically served both sides. At the same time Damascus has over the past few years recognized the Kurds as a militarily effective buffer against both ISIS and other powerful jihadist groups like al-Nusra Front and Ahrar al-Sham. While many Russian and pro-Damascus analysts have accused the SDF of being a mere pawn of US imperialism meant to permanently Balkanize the region, this is only partially true – the truth is likely more nuanced.

    No doubt, the US is laying plenty of concrete in the form of forward operating bases across Kurdish held areas of northern and eastern Syria (currently about a dozen or more). And no doubt the US is enabling the illegal seizure of oil fields formerly held by the Islamic State, but Kurdish and US interests are not necessarily one and the same. The Kurds know that the best they can hope for in a post-war Syria is a federated system which allows Kurdish areas a high degree of autonomy. They also know, as decades of experience has taught them, that they will eventually be dumped by the US should the political cost of support grow too high or become untenable. For now the Kurds are gobbling up as many oil fields as possible before they are inevitably forced to cut deals with Damascus.

    //platform.twitter.com/widgets.js

    Though the US endgame is the ultimate million dollar question in all of this, it appears at least for now that this endgame has something to do with the Pentagon forcing itself into a place of affecting the Syrian war's outcome and final apportionment of power: the best case scenario being permanent US bases under a Syrian Kurdish federated zone with favored access to Syrian oil doled out by Kurdish partners. While this is the 'realist' scenario, there's of course always the question that an independent Iraqi Kurdistan could one day be realized out of the merging of Kurdish northern Iraq and Syria. But this would be nothing less than a geopolitical miracle. For now, early voting has begun in the Kurdish diaspora ahead of the planned for September 25th referendum on Kurdish independence, with the very first votes reportedly being cast in China.

  • Mainstream Media 'Triggered' Over Trump Sovereignty Talk, Claims 'America First' Idea Is Russian Propaganda

    Authored by Alex Thomas via SHTFplan.com,

    In yet another example of obvious disinformation being pushed by the establishment media, noted liar and MSNBC host Brian Williams took to the airwaves Wednesday to complain about the presidents use of the word “sovereignty” before interviewing a former CIA operative who declared that the literal idea of putting ones country first somehow “plays into Putin’s playbook”.

    Responding to President Trump’s repeated use of the word sovereign and sovereignty during his recent United Nations speech, Williams worried if this was a dog whistle signal to the liberal world order that the United States was no longer looking to world governing bodies for guidance.

    “Back to this use of the words sovereign and sovereignty,” Williams said as he spoke to mainstream media reporter Anita Kumar.  

     

    “Did you hear a buzzword or a dog whistle in his repeated use of that world?”

    “You know it caused me to go back through and count how many times and so he used that word sovereign or sovereignty 21 times,” a clearly triggered Kumar stated.

     

    “It was definitely the word.”

    Pretending not to know what the word sovereignty means, Williams than asked his guest who in turn was only to happy to take shots at the entire idea of putting ones own country first.

    “It just means what he was talking about from the beginning which is America first, we’re going to go it alone,” Kumar laughably claimed before moving into the heart of the real reason that the establishment doesn’t want America put first. (Hint: They actually care more about the United Nations than America itself)

     

    “That really undermines to me the UN which is where he was today, NATO, EU places like that. International bodies he was really saying, don’t matter as much anymore,” Kumar continued.

    Apparently in leftist insanity land Trump is the bad guy because he is directly going up against the very international bodies that the American people voted against in the 2016 election.

    Amazingly, this wasn’t the only open propaganda during the segment, as Williams also turned to former Chief of State for the DOD and the CIA under the Obama administration Jeremy Bash who openly declared that the entire idea of economic nationalism was a Russian ideology that plays into “Putins playbook”.

    You truly can’t make this nonsense up.

    Deep state operatives are now telling the American people that making their OWN country stronger helps the Russians. This has taken the level of Trump derangement syndrome to an all-time high.

    The segment also makes clear the transparent fact that the large majority of mainstream media talking heads are globalists first and Americans second (or third in some cases).

    As Steve Watson so rightfully noted, “To these unabashed globalists, even hearing the President use the word ‘sovereign’ is a trigger.”

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Today’s News 22nd September 2017

  • "You're Going To See A Rush For Gold" – Katusa Warns De-Dollarization Is Accelerating

    Authored by Mac Slavo via SHTFplan.com,

    Global strategist Marin Katusa is the New York Times best selling author of The Colder War, which details the geo-political power shift that threatens the global dominance of the United States. He’s also a well known resource hedge fund manager who legendary investor Doug Casey has called one of the best market analysts he’s ever worked with.

    His prior forecasts noted that countries around the world would soon stop trading commodities like oil in the U.S. dollar, something we’re already seeing with China, Russia, Iran, and Venezuela, all of which are preparing non-dollar, gold-backed mechanisms of exchange.

    This trend, according to Katusa in a must see interview with Future Money Trends, will only continue to weaken the U.S. dollar going forward and the result will be a massive capital flight to gold in coming years:

    I think we’ll have a near term bounce on the U.S. dollar… then it’s going to be very weak… and then it’s going to go much, much lower… With China and Russia working together to de-dollarize the U.S. dollar starting with oil, which is the biggest market… and then all the other commodities.

     

    You’re going to start seeing a massive unwind of these U.S. dollars in the emerging markets.

     

     

    When that money comes back… which it will… and the world starts cluing in that the emerging markets need gold to convert the Yuan and the Ruble and all these different factors, you’re going to see a massive rush for gold.

    Watch the full interview:

    Katusa notes that he is preparing to “load up” on gold-based assets as the dollar strengthens and puts additional pressure on gold prices, but says that by next year major fund managers will start moving capital back into precious metals in response to dollar weakness, global de-dollarization and economic crisis:

    Everybody wants to rush in when something’s exciting… but you take your position before the massive flow of money…

     

    I think we have a near term dead cat bounce for the U.S. dollar… which will mean we’re going to have a little bit of weakness here in gold in the near term… the next six months is my time to load up.

     

    …And when the funds flow come in… it’s going to be the equivalent of Niagra Falls coming through your garden hose.

    The geo-political realignment taking place now stands to upend the financial and economic systems as we know them. This shift will not come without crisis and panic. The time to position yourself in gold-based assets is now.

  • Complete Preview Of Theresa May's "Florence" Brexit Speech

    On Friday – a day many have called  “the most important day for Brexit since the referendum” – Theresa May will delivers her much anticipated Brexit speech in Florence. The roughly 5000-word speech is scheduled at begin around 09:15 EDT and is expected to provoke an immediate response from Brussels.

    Among the flurry of last minute preparations, earlier this week, the Telegraph reported that Foreign Secretary Boris Johnson will resign if May veers toward a “Swiss-style” EU arrangement in her speech (more here). Earlier today, BBC Political Editor Laura Kuenssberg reported that May’s Friday speech will say the UK willing to pay €20BN during transition period “BUT only if we have access to single market + some form of customs union.” As RanSquawk added, the €20BN does not cover long term liabilities, so the eventual total departure bill to taxpayers will potentially be far higher.

    Taking a step back, here is a bigger picture preview of what is known – and unknown – about tomorrow’s speech courtesy of RanSquawk

    What will May Say?

    Few specific details are available on what UK Prime Minister Theresa May will cover in her speech, to be delivered from Florence, Italy, on 22 September. However, it is expected that the material will be significant given that the UK delayed the fourth round of Brexit talks (which were set to take place in the week of 25 September). A spokesperson for May has been quoted as saying that the speech would outline the UK’s hopes for a “deep and special partnership” with the EU following Brexit. May was said to have discussed the particulars with her Cabinet on Thursday 21 September. At the time of publication, no firm details have been leaked, although a BBC reporter was told that May will seek a transitional agreement, with a time frame of two years being touted.

    “In the wake of slow progress on Brexit negotiations, the United Kingdom may be preparing to adjust its approach,” analysts at Stratfor write. “Brexit negotiations have achieved limited progress so far, and the EU side has warned that talks are still far from the ‘sufficient progress’ necessary to move to their second phase, which is meant to address the future bilateral relationship” which the UK was eager to begin in October.

    One theory that is gaining traction, therefore, is that the UK will offer some concessions to the EU which will help move the discussions on.

    Tensions Within May’s Cabinet

    The secrecy surrounding her speech was causing tension in May’s Cabinet. Reports in the Telegraph newspaper suggested that Foreign Secretary Boris Johnson would tender his resignation if May pivoted towards a ‘Swiss-style’ arrangement. The news drove sterling higher, with traders seemingly taking comfort from the idea that some of the more extreme, ‘hard’ voices around May would leave the Cabinet, allowing her to pursue a ‘softer’, more amenable deal.

    However, the story was denied and it has been subsequently reported that May made moves to appease Johnson; the Telegraph reported “the Cabinet truce over Britain’s future payments to the EU involves paying substantial sums to the bloc, but no further payments after Britain’s transition period.”

    The FT later wrote that PM May believes the UK can achieve a “bespoke” final deal with the EU, and May reportedly said neither a Canadian-style nor a Norway-style deal for single market was appropriate for the UK.

    Divorce Bill

    The Financial Times this week reported that the UK was set to make an “offer to fill a post-Brexit EU budget hole of at least €20bn” in an attempt to settle its so-called “diovrce bill.” The FT adds “UK officials have indicated Britain would ensure no member state would have to pay more into the EU budget or receive less money from it until 2020, the end of EU’s current long-term budget planning period. The expected hole in those two years after Brexit would be at least €20bn when payments the UK receives back from Brussels are excluded.

    “A figure of €20bn is pretty close to estimates for what the UK’s net contribution to the EU budget would have been under the status quo ‘Remain’ scenario,” say analysts at RBC Capital, “however, it is unlikely that monies relating to the current EU budget period will be the end of the financial settlement negotiation between the UK and the EU.” Later reports, which followed Ma’s Cabinet meeting, suggested any financial settlement – which May would not directly address in her speech – would be contingent on single market access.

    It is unclear how the EU might respond, given earlier demands from some suggesting a figure of as much as €60bln may be needed.

    “On the EU side, any response next week which hints progress is sufficient to move towards discussing the future UK-EU trade deal before year end should be supportive of a view that the two-year Article 50 process isn’t too far off-track,” RBC says.

    Transitional Period

    May is also expected to acknowledge the need for a transitional period to avoid a ‘Brexit cliff’, where the UK would continue to abide by EU rules in some areas, while phasing out a withdrawal in other areas. “While the British government seemed to be aiming for a two-year transition, we have been told May prefers a longer hiatus of three years, which would give her enough time to prepare for elections, to be held on their scheduled date, in 2022,” analysts at SGH Macro argue.

    * * *

    Want more? Here is another preview, this time from Barclays?

    Media speculation is mounting over the content of UK PM May’s Brexit Speech in Florence tomorrow. This is the first big Brexit-specific speech by the PM following the General Election. It is designed to outline the basis for negotiations at the fourth round of EU-UK negotiations in Brussels next week. Following that, the UK Conservative Party Conference will take place on 1-4 October, where PM May will need to satisfy her own party members with regards to the tone set over Brexit. Hence, the challenge for the PM in her speech will be to appear constructive to her EU partners, so as to advance the negotiation process, while at the same time not angering those within her own party, who may prefer a less accommodative course vis-a-vis the EU in the negotiations.

    May is expected to outline three key issues – The transition, the EU withdrawal bill, and the future relationship.

    • Transition – Highlights were provided by Chancellor Hammond last week. He insisted that the UK will leave the Single Market and the Customs Union in March 2019. The UK will seek to maintain the status quo of trade and access. A two-year transition period is seen as most likely to stop cabinet in-fighting.
    • EU Withdrawal bill – PM May is likely to commit to the UK paying what is deemed reasonable during a transition period. Her traditional style has been vague and there is a chance she may continue with this approach, and stop short of stating an actual figure that could leave herself open to attack during the upcoming Tory Party conference. However, press speculation is mounting of a £20bn figure as a starting point for negotiations, conditional upon access to the single market and some form of Customs Union (source: BBC). We expect an eventual figure in the region of £40-50bn may be negotiable. The reaction to this from Brussels and the UK media will be important for PM May going into the Tory Party conference.
    • Future relationship – Hammond gave some colour last week, focusing on financial services, and recognised concerns about the UK potentially deviating from high EU regulatory standards. We expect PM May to reiterate the importance of regulatory homogeneity in the short run. May is likely to try to insist on the need for the UK to negotiate trade deals, even if legally, this cannot begin until the second phase of negotiations.
    • Reaction following the speech: The key to watch here would be the reaction from EU’s chief Brexit negotiator, Michel Barnier, as well as the UK press. The speech lays the foundations for the EU-UK negotiations next week, and EU officials have voiced increasing frustration over delays, bearing in mind that the principles for the first phase of negotiations, covering  guarantees, commitments on citizens rights, are due to be agreed between October to December before it is possible to move on to trade issues in Phase 2.

  • One Simple Chart Proves That Facebook Thinks You're A Moron

    Last week we jokingly wrote about a Facebook press release that was apparently an honest effort by the social media giant intended to summarize Russian efforts to undermine the 2016 election using their social media platform. That said, at least to us, it seemed as though Facebook unwittingly proved what a farce the entire ‘Russian collusion’ narrative had become as, after digging through advertising data for the better part of full year, Facebook reported that they found a ‘staggering’ $50,000 worth of ad buys that MAY have been purchased by Russian-linked accounts to run ‘potentially politically related’ ads.

    Not surprisingly, after being attacked by the mainstream media and even Hillary for “assisting” the Russians, Zuckerberg is once again in the press today fanning the flames of the ‘Russian collusion’ narrative by saying that Facebook will release to Congress the details of the 3,000 ads that MAY have been purchased by Russian-linked accounts.

    And while it seems obvious, please allow us to once again demonstrate why this entire process is so utterly bizarre… 

    The chart below demonstrates how the $50,000 worth of ad buys that MAY have been purchased by Russian-linked accounts to run ‘potentially politically related’ ads compares to the $26.8 billion in ad revenue that Facebook generated in the U.S. over the same time period between 3Q 2015 and 2Q 2017….If $50,000 can swing an entire presidential election can you imagine what $26.8 billion can do?

     

    Of course, not all of that $26.8 billion was spent on political advertising so we took a shot at breaking it down further.  While Facebook doesn’t disclose political spending as a percent of their overall advertising revenue, we did a little digging and found that political advertising represented ~5% of the overall ad market in the U.S. in 2016.  We further assumed that political share of the overall ad market is roughly half of that amount in non-election years, or 2.5%. 

    Using that data, we figure that Facebook may get ~3.5% of their annual revenue from political advertising in an average year, or nearly $1 billion per year…give or take a few million.  Unfortunately, as the chart below once again demonstrates, this still does little to support Zuckerberg’s thesis that the $50,000 he keeps talking about is in any way relevant to the 2016 election.

     

    Of course, the pursuit of this ridiculous narrative proves that Zuckerberg has no interest in spreading the truth about how his company impacted (and by “impacted,” we mean “had no impact at all”) the 2016 election, but rather is only interested in shoving his political agenda down the throats of an American public that he presumes is too stupid to question his propaganda. 

    That said, if Zuckerberg is really just on a mission for truth, as he says he is, perhaps he can stop patronizing the American public and disclose the full facts surrounding political advertising on Facebook.  We suspect a simple financial disclosure detailing how much political advertising was sold on Facebook from 3Q 2015 – 2Q 2017, broken down by political affiliation, would go a long way toward proving just how meaningless $50,000 is in the grand scheme of things. 

    That said, somehow we suspect ‘truth’ is not really Zuckerberg’s end goal, now is it?

  • India Stack and Bitcoin (An Insider's View)

    By Chris at www.CapitalistExploits.at

    Before the good stuff… the fun stuff.

    Here’s a fan mail I received in response to this.

    I guess he/she never made it as far as this part:

    “Don’t get me wrong. I’m not against EVs, and I’m all for technological innovation.”

    Though, in all fairness, it may be the collagen talking. Either way, definitely not an Insider member, otherwise he/she/it would be well aware of where we’re actually invested. Ha!

    Dregs from the bottom of the barrel occasionally drift into my corner of cyberspace. That they respond like this must be due to this fascinating misconception that I give a damn.

    Still, if we poke them hard enough in the chest, they’ll bugger off leaving us with the fine specimens that make up the overwhelming majority of our distinguished readership. Which brings me neatly to:

    “Hi Chris,

     

    I’m not sure if this gets to you or is stuck in the admin box.

     

    Love your work, really enjoy it.

     

    Your current one on the knock off effects of banning gasoline and diesel cars made me want to bring up another point that is seldom discussed when people talk about the future of EVs… the profitability of refineries when they don’t have a market for gasoline.

     

    When a barrel of crude is refined, about half of its volume ends up as gasoline.  The other half ends up as diesel, jet fuel, bunker oil, chemical feedstocks, etc… Gasoline is great for running automobiles, but pretty lousy for any other industrial process.  Industrial processes such as mining, refining, transporting, and processing cobalt, lithium, and molybdenum into EV parts.  These processes depend on the other half of the barrel.

     

    Driving away (pun intended) the demand for gasoline by mandating EVs means that refineries have half of their product become much less valuable.  I don’t have the research or know of who has done the research, but I wonder what such a move would mean for the price of diesel, jet fuel, bunker oil, chemical feedstocks, etc…?

    Hope all is well, cheers!”

    Fair points and worth thinking about.

    For example. Do those industries taking up the “other half of a barrel” benefit? To what degree? For how long? And is the market pricing this?

    All fun stuff which we spend all most of our time doing here.

    Anyway, today I’ve got something special for you and it’s got nothing to do with EVs or gasoline.

    Bitcoin and India Stack

    It was Raoul Pal who first brought to my attention the incredible galactic sized project that is India Stack.

    I’ve since spoken with quite a variety of people both in India and out in order to better understand the dynamics of what’s taking place in India. I think it provides a fascinating and illuminating view into how certain problems can be dealt with.

    In particular (and I’ve not seen anyone mention this), the ability to recapitalise a banking system on the brink and to do so while transitioning over a billion citizens onto a digital system.

    Pre-cash elimination, India’s banks were in a shocking state. What better way to “fix” them than to get the poor to bail them out.

    Ever since man began forming communities, we’ve had a setup where those at the top manufacture ways and means to have those at the bottom pay for the things they want.

    Kings told stories about their “divine rights”, people believed it, priests told stories about the church’s relationship with God, people believed it. And today politicians tell stories about “the greater good”… and people believe it. Some things never change.

    Aside from the banking system being recapitalised…

    It’s been fascinating to watch what was up until recently one of the world’s largest cash economies and where millions never even had a bank account suddenly goes digital.

    So there were two steps here.

    The first being the elimination of cash in the economy, and the second bringing online the digital platform otherwise known as IndiaStack, an open source platform where information is a utility.

    The set of open API for developers includes:

    • The Aadhaar for authentication
    • The e-KYC documents that have been generated
    • Digital lockers
    • e-signatures (software based as against the present dongle based e-signs)
    • The Unified Payments Interface which rides on top of the National Payment Corporation of India’s Immediate Payment System.

    You can check out a presentation which provides a decent overview of it here.

    I’ve spoken with a lot of guys who see this as being a major boon for India’s economy, eliminating fraud, destroying swathes of bureaucracy, and bringing millions of people into the economy who previously never had access.

    I don’t disagree with any of this, but what I wanted to do was to find someone who wasn’t very bullish, someone who would challenge some of these thoughts. And with that in mind, I found and spoke to Deepankar Kapoor.

    Deepankar Kapoor – as you can probably infer from his name – is not only Indian but he’s also the founder of Bitcoinwiser, a well known face in the digital advertising industry in India with his most recent stint being as the Vice President & National Strategy Head at Ogilvy India.

    He has 9+ years of full time recognised experience in digital business transformation of Fortune 500 brands and won many accolades throughout his career. Academically, he holds an MBA from University of Calcutta wherein he majored in Marketing [Forecasting & Econometrics], BMS from Symbiosis International University and a Diploma in Cyber Laws from the Government Law College, Mumbai. Additionally, he is a Google and Twitter Certified Professional.

    You can listen to our conversation below. I apologise for the dodgy line at times – Kenyan Wi-Fi isn’t the best in the world.

    And a Question for This Week

    Wow Poll 21 Sep
    Cast your vote here and also see what others think

    – Chris

    “Change is opportunity.” — Suresh Prabhu, Union Minister for Commerce

    ————————————–

    Liked this article? Then you’ll probably like my other missives on

    this topic as well. Go here to access them (free, of course).

    ————————————–

  • Are We Really Capable Of Shooting Down North Korean Missiles?

    Authored by Daisy Luther via The Organic Prepper blog,

    According to some analysts, Americans may be overly confident in our military’s ability to shoot down North Korean missiles if the country were to attempt to strike.

    Maybe the reason we haven’t shot down North Korea’s test missiles is that we can’t. While we all certainly hope that our military would be able to successfully defend the country against incoming missiles, we need to be prepared for any possibility.

    According to an article by Joe Cirincione of Defense One, the reason we don’t shoot down North Korea’s missiles when they fire them over Japan is because…

    We don’t have the capability.

    Joe Cirincione is the president of Ploughshares Fund and the author of several books about nuclear weapons, including Nuclear Nightmares: Securing the World Before It Is Too Late.

    According to Cirincione, when Japanese Chief Cabinet Secretary Yoshihide Suga said, “We didn’t intercept it because no damage to Japanese territory was expected,” this was only partially true. It wasn’t a threat, but they didn’t have the capability to shoot it down due to the altitude.

    Neither Japan nor the United States could have intercepted the missile. None of the theater ballistic missile defense weapons in existence can reach that high. It is hundreds of kilometers too high for the Aegis interceptors deployed on Navy ships off Japan. Even higher for the THAAD systems in South Korea and Guam. Way too high for the Patriot systems in Japan, which engage largely within the atmosphere.

     

    All of these are basically designed to hit a missile in the post-mid-course or terminal phase, when it is on its way down, coming more or less straight at the defending system. Patriot is meant to protect relatively small areas such as ports or air bases; THAADdefends a larger area; the advanced Aegis system theoretically could defend thousands of square kilometers. (source)

    Well, that’s unsettling. So, what if we engaged the missile before it reached that high?

    Cirincione says that too is unlikely to be successful.

    There is almost no chance of hitting a North Korean missile on its way up unless an Aegis ship was deployed very close to the launch point, perhaps in North Korean waters.

     

    Even then, it would have to chase the missile, a race it is unlikely to win. In the only one or two minutes of warning time any system would have, the probability of a successful engagement drops close to zero. (source)

    But don’t take Cirincione’s word for it. In his article, he cited other experts who echo his sentiments.  Jonathon McDowell, an astronomer at the Harvard-Smithsonian Center for Astrophysics, tweeted in response to someone questioning why we didn’t shoot down NK’s missiles:

    As well, he quoted Jerry Doyle, deputy business editor for Asia at The New York Times:

    “It’s actually virtually impossible to shoot down a missile on the way up. Midcourse or terminal are the only places you have a shot.” (source)

    While I’m not sure how a business editor has special knowledge of our nuclear defense system, all of these sentiments certainly raise the question:

    IF WE HAVE THE ABILITY TO SHOOT DOWN NORTH KOREAN MISSILES, WHY HAVEN’T WE DONE SO?

    If we attempted to shoot down a North Korean missile and missed, it would be a major propaganda coup for Kim Jong Un.

    When our military practiced this, they managed to shoot down 2 out of 3 missiles.

    A lot of people are putting a great deal of hope in American missile defense systems, but it’s important to note that a couple of weeks ago in a test over the Pacific, our defense system failed. This was subsequent to a previous success.

     

    A medium-range ballistic missile was launched from a test range in Hawaii at 7:20 pm local time, but the interceptor missile fired at sea from USS John Paul Jones, a guided-missile destroyer, missed the target.

     

    “A planned intercept was not achieved,” the statement said. (source)

     

    That’s disconcerting. After the failed test, there was a third test which was successful, but it’s very important to realize that our military isn’t infallible. If our rate is 2 out of 3 missiles shot down, that means that 1 out of 3 still gets through and wreaks destruction.

    So, could we actually shoot down a missile “gift package” as Kim Jong Un creepily calls it?

    The unsettling answer is, maybe.

    Maybe, if we were expecting it, if the conditions were right, if we were close enough, if it was low enough, if we were in a perfect position.

    There are way too many “ifs” in there for me to feel fully confident in our ability to shoot down North Korean missiles before they strike the mainland, which experts now believe they have the ability to reach. We also know that North Korea also possesses the ability to create hydrogen bombs. And as I’ve written before, if you believe this is all a big set up for a false flag event, that would hardly matter to those nearby if such a thing were to happen.

    If you aren’t prepped for the potential of a nuclear strike, it’s time to start learning what you need to do. (This article and this class can help you.)

  • Florida Parents Outraged After Teacher Demands Her 5th Graders Use Gender Neutral Pronouns

    Over the past year or so, we’ve observed in amazement as one ‘institution of higher indoctrination’ (a.k.a. “university”) after another came up with replacement pronouns for politically incorrect ‘hate speech’ like ‘freshman’.  Vanderbilt even forced its teachers and administrators to wear name tags defining their pronouns just so there would be absolutely no gender confusion that might lead to a nasty “triggering” event or unnoticed “microaggression (see: Vanderbilt University Name Placards For Faculty Offices Will Now Include “Preferred Pronouns”).

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    But, while such things are expected from our millennial youth on progressive college campuses, parents of a 5th grade class in Tallahassee, Florida were somewhat shocked when they received a letter from “Mx. (pronounced Mix)” Bressack demanding that her students only refer to her using gender neutral terms like ‘Mx.’ instead of ‘Ms.’ and “they, them, their” instead of “he, his, she, hers.”  Per the Tallahassee Democrat:

    “One thing that you should know about me is that I use gender neutral terms. My prefix is Mx. (pronounced Mix). Additionally, my pronouns are “they, them, their” instead of “he, his, she, hers”. I know it takes some practice for it to feel natural, but my experience students catch on pretty quickly. We’re not going for perfection, just making an effort! Please feel free to reach out to me or administration if you have any questions. My priority is for all of my students to be comfortable in my classroom and have a space where they can be themselves while learning.”

     

    Of course, it didn’t take long for the parents of Mx. Bressack’s students to post their outrage to a Facebook group called “Tally Moms Stay Connected.” One mom bluntly asked  “is this fucking for real?” while another dad wondered whether it might makes sense to just stick to teaching math and science if your job is to be a math and science teacher.

     

    Meanwhile, principal Paul Lambert assured parents that Mx. Bressack enjoyed his full support but that “teachers in our district will not be allowed to use their influence in
    the classroom to advance any personal belief or political agenda.”

    “We support her preference in how she’s addressed, we certainly do,” Lambert said. “I think a lot of times it might be decided that there is an agenda there, because of her preference — I can tell you her only agenda is teaching math and science at the greatest level she can.”

     

    Lambert acknowledged there have been some calls to the Canopy Oaks front office regarding the letter.

     

    “There has been some (contact from concerned parents), the thing that has brought good understanding is, it’s not a preference that’s being applied to anyone other than the teacher.”

     

    “According to Principal Lambert, the teacher addresses students daily by using the pronouns he, she, him and her.  The teacher also uses ma’am and sir when responding to students. As a personal preference, however, the teacher simply prefers to be referred to in gender neutral terms as that of a coach,” Hanna wrote.

     

    “I can assure you that teachers in our district will not be allowed to use their influence in the classroom to advance any personal belief or political agenda. At this time, I do not believe that is the case in this instance.”

    So what say you…necessary step toward forming a more perfect progressive society or just complete insanity?

  • Dallas School Board Designates Founding Fathers As Having "Confederate Links"

    "Just if we saw Confederacy named in it, we then highlighted it" says a school board spokesperson while describing a list which contained Thomas Jefferson, Ben Franklin, and Sam Houston.

    The Dallas Independent School District is in damage control mode after an internal school board list was obtained by local press which shows schools under consideration for name changes due to possible "connections with slavery or the Confederacy." News of the list, obtained by the Dallas Morning News early this week, caused outrage for the fact that it includes Texas revolutionaries and founders such as Sam Houston, James Bowie and William Travis, as well as Dallas pioneers James Gaston and William Brown Miller. It further names other early American figures who very obviously lived long before the existence of the Confederacy such as U.S. presidents Thomas Jefferson, James Madison and, inexplicably, Ben Franklin.

    Battle of the Alamo: Even the Texas revolutionary defenders of the iconic Alamo were on a list of "controversial" historical figures which Dallas ISD needed to "research" for review of whether school names could stay.

    Of course, William Travis and Jim Bowie both died at the Alamo in 1836 while the Confederacy didn't come into existence until 1861. Sam Houston too lived most of his entire life before the civil war and was perhaps the greatest Native American rights supporter of the time, and was adopted as an "honorary Cherokee" by the tribe, having also married a Cherokee woman. Ben Franklin, one of the American founding fathers named on the Dallas ISD list, was a vocal abolitionist. It is stunning and extremely worrisome that school board trustees would be both so historically illiterate and politically correct that they would put such names on the list in the first place.


    Dallas school board member Dustin Marshall confirmed the list via social media. It's amazing that even founding fathers like Ben Franklin – an early vocal abolitionist – or Declaration of Independence author Thomas Jefferson should have to be debated. 

    But Dallas ISD is currently attempting to backtrack and spin the narrative now that the leaked list is receiving so much push back from Texans. There's likely some level of embarrassment which motivated the new stance as well. A subsequent Dallas Morning News update explained, "Instead of more research, the district is focusing on a narrow set of parameters to only rethink schools named after Confederate generals, said chief of school leadership Stephanie Elizalde." The board now claims that while the original list was merely for "research" purposes, it is only four schools that are being seriously considered to undergo a name change: Stonewall Jackson, Robert E. Lee, Albert Sidney Johnston and William L. Cabell elementary schools.

    Disturbingly, it appears that "research" into Confederate links is being conducted by a mere one person staff, this according to language used by board spokesperson Stephanie Elizalde. She was quoted further in The Dallas Morning News:

    The additional names were never part of any specific renaming plan. Instead, Elizalde said, the list was originally so broad because she wanted to do "due diligence" on the names of the district's 226 campuses.

     

    "The more I researched, the more I was going to find," she said.

    The more detailed explanation of her methodology is strange considering many of the names that actually made the school board's list:

    This was just a very quick review of looking at the biographies of the individuals, and if there was any association with Confederacy — not making a judgment for or against — just if we saw Confederacy named in it, we then highlighted it. We are now in the process of doing a second [look].

    Yet that doesn't explain how authors of America's founding documents and Texas revolutionary came to be "highlighted", unless the Dallas school board's knowledge of history is really that appalling (a real possibility it seems). 

    Rod Dreher, writing for The American Conservative, summarized the sad state of Dallas ISD with the following:

    Imagine the impoverishment of the minds who believe the most significant thing to know about Jefferson, Madison, and Franklin, is that they were in some way tainted by slavery. Imagine the ignorance of school leaders who are going to investigate whether William Travis and Jim Bowie — both of whom died in 1836 at the Alamo — could have been involved with the Confederacy, which came into existence in 1861…

     

    It’s disgusting, this iconoclasm. In 2015, 40 percent of DISD’s schools received a failing grade from the state. To be fair, over 90 percent of DISD’s students come from low income homes, meaning that the school system has tremendous barriers to overcome in educating them. Still, the fact that the DISD trustees are even considering a cosmetic, p.c. gesture like this is a farce.

    As we've asked many times before: who will the PC mob come for next? If there's talk of purging history – even Texas history in Texas schools – then clearly it can and likely will happen anywhere. Will there perhaps be a future time when Texans themselves will no longer "Remember the Alamo!"…?

  • Jim Rickards Warns "QT1 Will Lead To QE4"

    Authored by James Rickards via The Daily Reckoning,

    There are only three members of the Board of Governors who matter: Janet Yellen, Stan Fischer and Lael Brainard. There is only one Regional Reserve Bank President who matters: Bill Dudley of New York. Yellen, Fischer, Brainard and Dudley are the “Big Four.”

    They are the only ones worth listening to. They call the shots. The don’t like dots. Everything else is noise.

    Here’s the model the Big Four actually use:

    1. Raise rates 0.25% every March, June, September and December until rates reach 3.0% in late 2019.

     

    2. Take a “pause” on rate hikes if one of three pause factors apply: disorderly asset price declines, jobs growth below 75,000 per month, or persistent disinflation.

     

    3. Put balance sheet normalization on auto-pilot and let it run “on background.” Don’t use it as a policy tool.

    Simple.

    What does this model tell us about a rate hike in December?

    Disinflation has been strong and persistent. The Fed’s main metric for this (core PCE deflator year-over-year) has dropped from 1.9% in January to 1.4% in July. The August reading comes out on September 29. This time series is moving strongly in the wrong direction from the Fed’s perspective. This is what caused the September “pause” (which we predicted for readers last March).

    After seven months of decline, one month of increase, if it comes, will not be enough to get the Fed to end the pause. It would take at least two months of increases to change the Fed’s mind.

    That’s unlikely given the impact of Hurricanes Harvey and Irma. Those effects may be temporary, but they come at exactly the time when the Fed was looking for a turnaround in core inflation. They won’t get it. The pause goes on.

    How do I know this?

    For one thing, the Fed explains this all the time. It’s just that the media won’t listen; they’re too busy chasing dots.

    But this was also explained to me in detail by the ultimate Fed insider. I call him, “The Man Without a Face,” and I identify him by name in chapter six of my New York Times bestseller, The Road to Ruin.

    It’s true that Stan Fischer is leaving the board soon, but the White House has been in no hurry to fill vacancies. The Big Four will still be The Big Three (Yellen, Dudley and Brainard) when the December meeting rolls around and the analysis will be the same.

    Eventually the markets will figure this out. Right now, markets are giving a 70% chance of a rate hike in December based on CME Fed Funds futures. That rate will drop to below 20% by Dec. 13 when the FOMC meets again with a press conference. (There’s another meeting on Nov. 1, but no one expects any policy changes then).

    Now, with respect to quantitative tightening (QT), the same way they tapered QE, they’re going to “taper” QT. This time however, they’re going to taper upward. Meaning they’re going to go from $10 billion a month not being rolled over to $20 billion, $30 billion, etc.

    Eventually, the amount of securities they don’t roll over will go up until the balance sheet controlled by the Fed comes down to the targeted figure. The projection is that it could take five years to achieve. The problem is we might not make it that far before the entire system collapses.

    We’re in a new reality. But the Fed doesn’t realize it.

    Here’s what the Fed wants you to believe…

    The Fed wants you to think that QT will not have any impact.

     

    Fed leadership speaks in code and has a word for this which you’ll hear called “background.”

     

    The Fed wants this to run on background. Think of running on background like someone using a computer to access email while downloading something on background.

    This is complete nonsense. They’ve spent eight years saying that quantitative easing was stimulative. Now they want the public to believe that a change to quantitative tightening is not going to slow the economy.

    They continue to push that conditions are sustainable when printing money, but when they make money disappear, it will not have any impact. This approach falls down on its face — and it will have a big impact.

    Markets continue to not be fully discounted because they don’t have enough information. Contradictions coming from the Fed’s happy talk wants us to believe that QT is not a contractionary policy, but it is.

    My estimate is that every $500 billion of quantitative tightening could be equivalent to one .25 basis point rate hike. The Fed is about to embark on a policy to let the balance sheet run down.

    The plan is to reduce the balance sheet $30 billion in the fourth quarter of 2017, then increase the quarterly tempo by an additional $30 billion per quarter until hitting a level of $150 billion per quarter by October 1, 2018.

    Under that estimate, the balance sheet reduction would be about $600 billion by the end of 2018, and another $600 billion by the end of 2019.

    That would be the equivalent of half a .25 basis point rate hike in each of the next two years in addition to any actual rate hikes.

    While they might attempt to say that this method is just going to “run on background,” don’t believe it.

    The decision by the Fed to not purchase new bonds will be just as detrimental to the growth of the economy as raising interest rates.

    The Fed’s QT policy that aims to tighten monetary conditions, reduce the money supply and increase interest rates will cause the economy to hit a wall, if it hasn’t already.

    The economy is slowing. Even without any action, retail sales, real incomes, auto sales and even labor force participation are all declining. Every important economic indicator shows that the U.S. economy is slowing right now. When you add in QT, we may very well be in a recession very soon.

    Because they’re getting ready for a potential recession where they’ll have to cut rates yet again. Then it’s back to QE. You could call that QE4 or QE1 part 2. The Fed has essentially trapped itself into a state of perpetual manipulation.

    The problem continues to be that the stock market is overpriced for this combination of higher rates and slower growth.

    The one thing to know about bubbles is they last longer than you think and they pop when you least expect it. Under such conditions, it’s usually when the last guy throws in the towel that the bubble pops. We’re not there yet.

    Is this thing ready to pop? Absolutely, and QT could be just the thing to do it.

    I would say the market is fundamentally set up for a fall. When you throw in the fact that the Fed continues to have no idea what they’re doing, and has taken a dangerous course anyway, I expect a very severe stock market correction coming sooner than later.

    As market perceptions catch up with reality, the dollar will sink, the euro and gold will rally, and interest rates will resume their long downward slide.

    Do you have your gold yet?

  • Jamie Dimon Faces Market Abuse Claim Over "False, Misleading" Bitcoin Comments

    A week after Jamie Dimon made headlines by proclaiming Bitcoin a "fraud" and anyone who owns it as "stupid," the JPMorgan CEO faces a market abuse claim for "spreading false and misleading information" about bitcoin.

    Unless you have been living under a rock for the past week, you will be well aware of JPMorgan CEO Jamie Dimon's panicked outburst with regard the 'fraud' that Bitcoin's 'tulip-like' bubble is. To paraphrase:

    "It’s a fraud. It’s making stupid people, such as my daughter, feel like they’re geniuses. It’s going to get somebody killed. I’ll fire anyone who touches it."

    One week later, an algorithmic liquidity provider called Blockswater has filed a market abuse report against Jamie Dimon for "spreading false and misleading information" about bitcoin.

    The firm filed the report with the Swedish Financial Supervisory Authority against JPMorgan Chase and Dimon, the company's chief executive. Blockswater said Dimon violated Article 12 of the European Union's Market Abuse Regulation (MAR) by declaring that cryptocurrency bitcoin was "a fraud".

    The complaint said Dimon's statement negatively impacted "the cryptocurrency's price and reputation".

     

    It also said Dimon "knew, or ought to have known, that the information he disseminated was false and misleading".

     

    "Jamie Dimon's public assertions did not only affect the reputation of bitcoin, they harmed the interests of some of his own clients and many young businesses that are working hard to create a better financial system,” said Florian Schweitzer, managing partner at Blockswater.

    Blockswater said JPMorgan traded bitcoin derivatives for their clients on Stockholm-based exchange Nasdaq Nordic before and after Dimon's statements (as we detailed here), which Schweitzer said "smells like market manipulation".

    Blockswater works with blockchain-based assets based in London and Austria. Its full complaint is below:

    Blockswater Files Market Abuse Report Against Jamie Dimon in Stockholm
    Blockswater LLP believes that Dimon violated EU’s Market Abuse Regulation by "spreading false and misleading information" about bitcoin

     

    STOCKHOLM/NEW YORK/LONDON/VIENNA, September 21, 2017 – Algorithmic liquidity provider Blockswater LLP filed a market abuse report with the Swedish Financial Supervisory Authority (FI) against JPMorgan Chase and Co. CEO Jamie Dimon. Blockswater believes that Dimon violated Article 12 of the European Union's Market Abuse Regulation (MAR) by declaring that cryptocurrency bitcoin was "a fraud.”

     

    The complaint filed with the Swedish authorities demonstrates how Dimon's statement negatively impacted "the cryptocurrency's price and reputation.” The document also lists evidence that suggests Dimon "knew, or ought to have known, that the information he disseminated was false and misleading.”

     

    "Jamie Dimon's public assertions did not only affect the reputation of bitcoin, they harmed the interests of some of his own clients and many young businesses that are working hard to create a better financial system,” says Florian Schweitzer, managing partner at Blockswater. JPMorgan traded bitcoin derivatives for their clients on Stockholm-based exchange Nasdaq Nordic before and after Dimon's statements fueled volatility in the market. “That’s a clear case of double standards and it smells like market manipulation.”

     

    Article 12 of the European Union's Market Abuse Regulation prohibits the manipulation of markets through practices such as spreading false or misleading information. Nasdaq Nordic, where exchange-traded notes on bitcoin are listed, defines the term “market manipulation” in accordance with the EU’s definition as “dissemination of information through the media, including the Internet, or by any other means that gives, or is likely to give, false or misleading signals as to Listed Products, including the dissemination of rumours and false or misleading news, where the person who made the dissemination knew, or ought to have known, that the information was false or misleading.”

     

    FI confirmed receipt of the report but did not comment further except to state that the financial markets regulator "will handle it according to [FI's] procedures."

     

    Blockswater LLP is an algorithmic liquidity provider for blockchain-based assets based in London (UK) and Vienna (Austria).
     
     

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Today’s News 21st September 2017

  • Never Forget: The US Government Has A Known History Of Using False Flags

    Authored by Caitlyn Johnstone via Medium.com,

    When it comes to 9/11, there are two groups of people: those who don’t know exactly what happened, and those who orchestrated it.

    Nearly everyone on earth belongs in the former category, but a lot of folks like to pretend they have a rock solid understanding of the events which transpired on that fateful day in 2001. Scoffing mainstream adherents like to pretend they’re confident that the official narrative is accurate, but they aren’t. A lot of hardcore conspiracy analysts like to pretend they know the real story, but they don’t. There’s simply not enough publicly available information for anyone to be certain exactly how things went down that day; all we can know for sure is that (A) the official story is riddled with plot holes, and (B) the American power establishment has an extensive and well-documented history of using false flags and propaganda to manipulate the public into supporting evil acts of military interventionism.

    If you think you know for a fact that the official story of what happened on September 11, 2001 is the true account and that all conspiracy theories have been “debunked”, you are ignorant.

    If you think you know the precise details of how what really happened differs from the official story, you’ve spent way too much time diving down conspiracy theory rabbit holes and should probably ease off the weed. There’s no need to get all defensive and go bedding yourself down to one hard doctrine of certainty when the US power establishment has already discredited itself so thoroughly. It’s unnecessary to plunge deep into theory when these people’s track record is so firmly established in fact.

    Here are just a few of the times the US government is known to have distorted the reality of events in order to manufacture public support for military intervention, which is per definition what a false flag is:

    The False Nayirah Testimony

    On October 10, 1990 a 15 year-old girl known only as Nayirah testified before the Congressional Human Rights Caucus about the horrors that Iraqi troops were inflicting upon the people of Kuwait. Her testimony that hundreds of babies had been taken out of their incubators and left to die on hospital floors was repeated as fact by Amnesty International, the mass media, numerous senators, and President H. W. Bush, tugging at the heartstrings of America and manufacturing support for American action in the Gulf War.

    It was a lie. Nayirah was in fact the daughter of the Kuwaiti Ambassador to the US, and her TV-friendly “removing babies from incubators” testimony was false. It never happened.

    Former CIA Director Bush with the Kuwaiti Ambassador, who watched his daughter’s false testimony before congress

    The Gulf of Tonkin Incident

    In 2005 a declassified historical study by the NSA revealed that one of the two incidents which were used to propel America into the disastrous Vietnam War happened the opposite of the way it was reported to have happened, and the second of the two incidents did not happen at all. The allegation that there were “deliberate” and “unprovoked” attacks upon the US Navy in the Gulf of Tonkin on August 2 and August 4 of 1964 was solemnly affirmed by President Johnson, which led to the swift passage of the Gulf of Tonkin Resolution authorizing full presidential authority to commit US military power to the Vietnamese intervention.

    In reality the August 2 incident was not in any way “unprovoked”, and it was in fact America’s USS Maddox which fired upon North Vietnamese boats first. On August 4 there was no engagement with any ships whatsoever, with Johnson privately admitting a year later that “For all I know, our navy was shooting at whales out there.”

    The USS Maine

    “But when the smoke was over, the dead buried and the cost of the war came back to the people in an increase in the price of commodities and rent?—?that is, when we sobered up from our patriotic spree?—?it suddenly dawned on us that the cause of the Spanish-American War was the price of sugar.”

    ~ Emma Goldman

    This goes way back. The video above describes how the Spanish-American war was brought on by a highly suspicious explosion upon the USS Maine while it was docked at the Havana Harbor in 1898, combined with the anti-Spain narratives of the plutocrat-owned newspapers of that time. Like all US wars, it was extremely profitable and benefitted the very rich.

    *  *  *

    This tradition of using lies to rally the unwashed masses behind military endeavors on behalf of the rich and powerful has probably been going on since the dawn of civilization, and it is only humanity’s increasing adeptness at networking and sharing information which has enabled us to begin catching on to the deceitful manipulations of the people who rule us. Our history books are doubtless riddled with countless inaccuracies as to the real reasons underlying violent conflicts between various kingdoms and factions, because the few literate people who were permitted to write the official historic accounts of them had full control of the narrative at the time.

    This is why we’ve been seeing increasingly blatant panic from existing power structures about alternative media. Whoever controls the narrative controls the world. It is only by general societal consensus that power exists where it exists, that money works the way it works, etc. At any time the public could stop honoring existing power structures and create an entirely different model for itself, deciding to distribute resources and allocate responsibilities in a way that benefits more people more efficaciously than the current paradigm. It is only by their ability to manipulate and control the mainstream narrative that powerful people have been able to keep this from happening.

    If the power elites didn’t need the consent of the public to rule, they wouldn’t have to lie constantly about their reasons for war. The public would never consent to military interventions if politicians were allowed to appear on CNN and say “Yeah well America has become a stronghold for the most powerful plutocracy in the history of civilization and it needs to maintain its status as the world’s only superpower in order to protect the investments of that plutocracy. This is why we have to keep knocking the pillars of support out from underneath Russia and China, and why I get millions in re-election campaign donations.”

    My more pessimistic readers won’t like hearing this, but the reality is that Americans are basically good people who generally want what’s best for the world. If they weren’t, the unelected power establishment which rules over them wouldn’t have to keep making up lies about babies in incubators and protecting their family from Weapons of Mass Destruction in order to secure US hegemony. If they ever told the public the truth, they’d be dealing with hundreds of millions of heavily-armed Americans telling them to get their sociopathic asses out of here.

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    What this means is that those of us who want what’s best for America and the world instead of endless war and economic oppression are necessarily locked in a media war with the plutocracy and its cronies. The populist alternative media owned and operated by ordinary people is the natural enemy of the plutocrat-owned mainstream media designed to prop up the existing power structure with establishment propaganda. Our ability to win this media war increases the more networked and internet-literate our society becomes, which is why the oligarchs have been working overtime to shut us down with corporate censorship.

    There is no reason to believe anything these lying sociopaths say, especially not about something that has served such a crucial role in their openly stated agenda to ensure US dominance over the world using its military and economic might. When you’ve got the extremely influential neoconservative think tank Project for the New American Century saying in September of 2000 that it would require “a new Pearl Harbor” to advance this agenda, and then getting exactly that one year later in an American tragedy which was used to manufacture support for greatly expanded US military interventionism, there’s no good reason to take all that in with a trusting “Yeah, that sounds legit.”

    These people are liars, and they are depraved. They have no problem using lies to kill a million Iraqis and thousands of US soldiers to advance their agendas, and there’s no reason to believe they wouldn’t kill US civilians as well. There’s no harm in familiarizing yourself with all the details about the various conspiracy theories surrounding 9/11 if that’s what you want to spend your brainpower on, but really all you need to know is that these people are known liars who have no problem slaughtering countless people to advance their agenda of global domination. There is no reason to trust them and many reasons not to. End of.

    *  *  *

    I’m a 100 percent reader-funded journalist so if you enjoyed this, please consider helping me out by sharing it around, liking me on Facebook, following me on Twitter, or throwing some money into my hat on Patreon.

  • The Real Threat Remains – Brandon Smith Warns "Do Not Be Fooled By The Fed's Magic Show"

    Authored by Brandon Smith via Alt-Market.com,

    I remember back in mid-2013 when the Federal Reserve fielded the notion of a "taper" of quantitative easing measures. More specifically, I remember the response of mainstream economic analysts as well as the alternative economic community. I argued fervently in multiple articles that the Fed would indeed follow through with the taper, and that it made perfect sense for them to do so given that the mission of the central bank is not to protect the U.S. financial system, but to sabotage it carefully and deliberately. The general consensus was that a taper of QE was impossible and that the Fed would "never dare." Not long after, the Fed launched its taper program.

    Two years later, in 2015, I argued once again that the Fed would begin raising interest rates even though multiple mainstream and alternative sources believed that this was also impossible. Without low interest rates, stock buybacks would slowly but surely die out, and the last pillar holding together equities and the general economy (besides blind faith) would be removed. The idea that the Fed would knowingly take such an action seemed to be against their "best self interest;" and yet, not long after, they initiated the beginning of the end for artificially low interest rates.

    The process that the Federal Reserve has undertaken has been a long and arduous one cloaked in disinformation. It is a process of dismantlement. Through unprecedented stimulus measures, the central bank has conjured perhaps the largest stock and bond bubbles in history, not to mention a bubble to end all bubbles in the U.S. dollar.

    Stocks in particular are irrelevant in the grand scheme of our economy, but this does not stop the populace from using them as a reference point for the health of our system. This creates an environment rife with delusion, just as the open flood of cheap credit created considerable delusion before the crash of 2008.

    Today, we find our economic fundamentals in complete disarray, but the overwhelming fantasy within stocks still remains. Why? Because yet again, for some reason, no one is ready to accept the reality that the Fed is pulling the plug on America's fiscal life support. Nary a handful of economists in the world think that the Fed will raise interest rates one more time this year if ever again, and the threat of a balance sheet reduction is the furthest thing from everyone's mind. Daytrading investors are utterly convinced they have the Fed by the short hairs. I say, the situation is actually in reverse.

    The minutes from the Fed's July Open Market Committee Meeting indicate that while the central bank has been the savior of stock investors for several years, the party is about to end. Comments on the risks a bull market might pose to "financial stability" have been more frequent the past couple of months

    Only a few weeks ago, former Fed chairman Alan Greenspan commented that bond markets could collapse and bring stocks down with them do to overvaluations and increasing interest rates.

    Recent spikes in markets despite a steady stream of natural disasters, threats of war with North Korea, as well as "increased inflation" (according to Fed models) due to the damage wrought by Hurricane Harvey suggest that the Fed will indeed continue hiking rates into our ongoing financial collapse.

    The next FOMC meeting will conclude on the 20th of this month, and the question is, will the Fed surprise with a rate hike and/or balance sheet reduction program? I believe the odds are much higher than many people seem to think. [ZH: we now know that The Fed did announce the start of the balance sheet reduction program as Brandon forecast]

    First, let's be clear, historically the Fed's predictable behavior has been to skip major policy actions in September and then startle markets with renewed and aggressive actions in December. People placing bets on a Fed rate hike in September would look at this pattern and say "no way." However, the narrative I see building in Fed rhetoric and in the mainstream media is that stock markets have become "unruly children" and that the Fed must become a "stern parent," reigning them in before they are crushed under the weight of their own naive enthusiasm.

    In my view, the Fed will continue to do what it says it is going to do — raise interest rates and reduce and remove stimulus, and that the mainstream narrative will soon be adjusted to suggest that this is "necessary;" that stock markets need a bit of tough love.

    If the Fed means to follow through with its stated plans for "financial stability" in markets, then the only measure that would be effective in shell-shocking stocks back to reality would be a surprise hike, a surprise announcement of balance sheet reduction or both at the same time.

    If the Fed intends to continue cutting off life support to equities and bonds in preparation for a controlled demolition of the U.S. economy, then there is a high probability at the very least of a balance sheet reduction announcement this week with strong language indicating another rate hike in December. I also would not completely rule out a surprise rate hike even though September is usually a no-action month for central banks.

    This would fit the trend of central banks around the globe strategically distancing themselves from artificial support for the financial structure. Last week, the Bank of England surprised investors with an open indication that they may begin raising interest rates "in the coming months." The Bank Of Canada surprised some economists with yet another rate hike this month and mentions of "more to come." The European Central Bank has paved the way for a tapering of stimulus measures according to comments made during its latest meeting early this month. And, the Bank of Japan initiated taper measures in July.

    Even Forbes is admitting that there appears to be a "coordinated tightening of monetary policy" coming far sooner than the mainstream expects. If you understand how the Bank for International Settlements controls policy initiatives of national central bank members, then you should not be surprised that central banks all over the world are pursuing the same actions and the same rhetoric. The only difference between any of them is the pace they have chosen in taking the punch bowl away from the party.

    The point is, when it comes to the fiat peddlers, there are indeed a few sure things, but continued stimulus is not one of them. One thing that is certain is that they will act in concert as they are clearly doing now in terms of policy tightening. Another thing that is certain is that if they plant a notion in the mainstream media — such as the notion that they are "worried about overvaluations in stocks" and that interest rates must rise, then they will follow through as they always have. Perhaps not at the pace the mainstream expects, or the pace I expect, but certainly somewhere in-between.

    Finally, it behooves me to mention again that the Fed has done all of this before. In the lead up to the stock market crash of 1929, the central bank bloated stocks with easy credit measures and low interest rates, only to hike rates in the name of "quelling inflation." This hacked the legs out from under markets with a machete, and the rest is history. The hidden purpose behind this tactic is extraordinary centralization on a global scale. The Fed is not interested in the health of the U.S. economy, it is interested in total globalization of all economies under one totalitarian umbrella. To make an omelet, you have to break a few eggs.

    Of course, the Fed will not engineer a market crash in a vacuum. It is my suspicion that the next Fed meeting will be followed by a geopolitical distraction — the most likely candidate being increasing conflict with North Korea.

    Do not be fooled by the magic show. The real threat to us all is the central banking and international banking apparatus, including the BIS and the IMF. From now until the end of this year, remain vigilant.

  • The Best Jobs Without A College Degree 2017 (In One Simple Chart)

    The Great Recession destroyed the job market for workers without college degrees, and the situation hasn’t gotten any better.

    This begs the question – can you still enjoy a high standard of living without a college degree? And what are the highest paying jobs for people without a traditional higher education?

    This new chart, from HowMuch.net, sheds some light on these pressing questions.

    The Bureau of Labor Statistics tracks which professions do not require a college education, how many people currently hold those jobs, and their median salaries. We combined this information into a scatter plot graph. The more dots you see, the more people work in that profession. And the higher the dots on the vertical axis, the more money they make.

    You can quickly see some pretty interesting trends. There are a lot of people without college degrees who make a great living. The median household income in the U.S. is $56,516. By that standard, all the jobs on our chart pay well above average.

    Specialization is the key to earning a high wage, especially in an area that cannot be outsourced. Elevator installers, power plant operators, transportation inspectors—these are all professions that require a high level of skill and must be done in person by someone with years of experience and certifications. Regardless of how automation affects the economy, you won’t ever be able to replace jobs like firefighting and law enforcement, despite what futuristic movies like Minority Report may have you believe.

    Top Ten Highest Paying Jobs Without Needing a Degree 

    1. Nuclear power reactor operator – $91,170 (salary) & 7,170 (workers)

    2. Transport manager – $89,190 (salary) & 113,270 (workers)

    3. Police supervisor – $84,840 (salary) & 100,200 (workers)

    4. Power distributor – $81,900 (salary) & 11,380 (workers)

    5. Elevator installer – $78,890 (salary) & 22,240 (workers)

    6. Detective – $78,120 (salary) & 104,980 (workers)

    7. Commercial pilot – $77,200 (salary) & 38,980 (workers)

    8. Media equipment worker – $75,700 (salary) & 18,620 (workers)

    9. Electrician – $75,670 (salary) & 23,060 (workers)

    10. Power plant operator – $74,690 (salary) & 35,010 (workers)

    And now, a word of caution. The top 25 professions where you don’t need a college degree only employ about 1.4 million people. That’s a lot of people, but the entire working population in the U.S. is over 205 million people. In other words, these jobs not only demand years of experience and specialization, but they’re also pretty rare. And don’t be mistaken: you may not need a college degree, but you do need some type of post-secondary training. You can’t just graduate high school and start your own electrical company. You have to work as an apprentice or join a training program first.

    That being said, it’s still possible for people without a formal college education to earn a respectable salary. The big takeaway from our chart is that you want to be in a position that can’t easily be replaced through automation or outsourcing. If you can find a career like that, then you’re in good shape to enjoy a high standard of living.

  • Pepe Escobar Unmasks Trump Doctrine: Carnage For New Axis Of Evil

    Authored by Pepe Escobar via The Asia Times,

    North Korea, Iran, Venezuela are targets in "compassionate" America's war on the "wicked few." It's almost as though Washington felt its hegemony threatened

    Paul Delaroche, Napoléon à Fontainebleau, 1840. With other global powers increasingly at odds with US foreign policy under Donald Trump, the nation's hegemony on the world stage may soon face its own crisis point.

    This was no “deeply philosophical address”. And hardly a show of  “principled realism” – as spun by the White House. President Trump at the UN was “American carnage,” to borrow a phrase previously deployed by his nativist speechwriter Stephen Miller.

    One should allow the enormity of what just happened to sink in, slowly. The president of the United States, facing the bloated bureaucracy that passes for the “international community,” threatened to “wipe off the map” the whole of the Democratic People’s Republic of Korea (25 million people). And may however many millions of South Koreans who perish as collateral damage be damned.

    Multiple attempts have been made to connect Trump’s threats to the madman theory cooked up by “Tricky Dicky” Nixon in cahoots with Henry Kissinger, according to which the USSR must always be under the impression the then-US president was crazy enough to, literally, go nuclear. But the DPRK will not be much impressed with this madman remix.

    That leaves, on the table, a way more terrifying upgrade of Hiroshima and Nagasaki (Trump repeatedly invoked Truman in his speech). Frantic gaming will now be in effect in both Moscow and Beijing: Russia and China have their own stability / connectivity strategy under development to contain Pyongyang.

    The Trump Doctrine has finally been enounced and a new axis of evil delineated. The winners are North Korea, Iran and Venezuela. Syria under Assad is a sort of mini-evil, and so is Cuba. Crucially, Ukraine and the South China Sea only got a fleeting mention from Trump, with no blunt accusations against Russia and China. That may reflect at least some degree of realpolitik; without “RC” – the Russia-China strategic partnership at the heart of the BRICS bloc and the Shanghai Cooperation Organization (SCO) – there’s no possible solution to the Korean Peninsula stand-off.

    In this epic battle of the “righteous many” against the “wicked few,” with the US described as a “compassionate nation” that wants “harmony and friendship, not conflict and strife,” it’s a bit of a stretch to have Islamic State – portrayed as being not remotely as “evil” as North Korea or Iran – get only a few paragraphs.

    The art of unraveling a deal

    According to the Trump Doctrine, Iran is “an economically depleted rogue state whose chief exports are violence, bloodshed and chaos,” a “murderous regime” profiting from a nuclear deal that is “an embarrassment to the United States.”

    Iranian Foreign Minister Mohammad Javad Zarif tweeted: “Trump’s ignorant hate speech belongs in medieval times – not the 21st century UN – unworthy of a reply.” Russian Foreign Minister Sergey Lavrov once again stressed full support for the nuclear deal ahead of a P5+1 ministers’ meeting scheduled for Wednesday, when Zarif was due to be seated at the same table as US Secretary of State Rex Tillerson. Under review: compliance with the deal. Tillerson is the only one who wants a renegotiation.

    Iran’s President Hassan Rouhani has, in fact, developed an unassailable argument on the nuclear negotiations. He says the deal – which the P5+1 and the IAEA all agree is working – could be used as a model elsewhere. German chancellor Angela Merkel concurs. But, Rouhani says, if the US suddenly decides to unilaterally pull out, how could the North Koreans possibly be convinced it’s worth their while to sit down to negotiate anything with the Americans ?

    What the Trump Doctrine is aiming at is, in fact, a favourite old neo-con play, reverting back to the dynamics of the Dick Cheney-driven Washington-Tehran Cold War years.

    This script runs as follows: Iran must be isolated (by the West, only now that won’t fly with the Europeans); Iran is “destabilizing” the Middle East (Saudi Arabia, the ideological foundry of all strands of Salafi-jihadism, gets a free pass); and Iran, because it’s developing ballistic that could – allegedly – carry nuclear warheads, is the new North Korea.

    That lays the groundwork for Trump to decertify the deal on October 15. Such a dangerous geopolitical outcome would then pit Washington, Tel Aviv, Riyadh and Abu Dhabi against Tehran, Moscow and Beijing, with European capitals non-aligned. That’s hardly compatible with a “compassionate nation” which wants “harmony and friendship, not conflict and strife.”

    Afghanistan comes to South America

    The Trump Doctrine, as enounced, privileges the absolute sovereignty of the nation-state. But then there are those pesky “rogue regimes” which must be, well, regime-changed. Enter Venezuela, now on “the brink of total collapse,” and run by a “dictator”; thus, America “cannot stand by and watch.”

    No standing by, indeed. On Monday, Trump had dinner in New York with the presidents of Colombia, Peru and Brazil (the last indicted by the country’s Attorney General as the leader of a criminal organization and enjoying an inverted Kim dynasty rating of 95% unpopularity). On the menu: regime change in Venezuela.

    Venezuelan “dictator” Maduro happens to be supported by Moscow and, most crucially, Beijing, which buys oil and has invested widely in infrastructure in the country with Brazilian construction giant Odebrecht crippled by the Car Wash investigation.

    The stakes in Venezuela are extremely high. In early November, Brazilian and American forces will be deployed in a joint military exercise in the Amazon rainforest, at the Tri-Border between Peru, Brazil and Colombia. Call it a rehearsal for regime change in Venezuela. South America could well turn into the new Afghanistan, a consequence that flows from Trump’s assertion that “major portions of the world are in conflict and some, in fact, are going to hell.”

    For all the lofty spin about “sovereignty”, the new axis of evil is all about, once again, regime change.

    Russia-China aim to defuse the nuclear stand-off, then seduce North Korea into sharing in the interpenetration of the Belt and Road Initiative (BRI) and the Eurasia Economic Union (EAEU), via a new Trans-Korea Railway and investments in DPRK ports. The name of the game is Eurasian integration.

    Iran is a key node of BRI. It’s also a future full member of the SCO, it’s connected – via the North-South Transport Corridor – with India and Russia, and is a possible future supplier of natural gas to Europe. The name of the game, once again, is Eurasian integration.

    Venezuela, meanwhile, holds the largest unexplored oil reserves on the planet, and is targeted by Beijing as a sort of advanced BRI node in South America.

    The Trump Doctrine introduces a new set of problems for Russia-China. Putin and Xi do dream of reenacting a balance of power similar to that of the Concert of Europe, which lasted from 1815 (after Napoleon’s defeat) until the brink of World War I in 1914. That’s when Britain, Austria, Russia and Prussia decided that no European nation should be able to emulate the hegemony of France under Napoleon.

    In sitting as judge and executioner, Trump’s “compassionate” America certainly seems intent on echoing such hegemony.

  • Digital-Currency Milestone: Somebody Just Bought A House With Bitcoin

    A day after Bridgewater Associates Founder Ray Dalio claimed that bitcoin was "definitely in a bubble" partly because he said the digital currency was too difficult to spend, CoinTelegraph is reporting that the first-ever bitcoin-only real-estate transaction has been completed in Texas.

    The transaction "illustrates crypto's potential to transform how financial transactions are conducted," according to Futurism.com.

    The Texas-based real estate brokerage firm Kuper Sotheby’s International Realty, the firm that reperesented the buyer, declined to disclose the number of bitcoins that were exchanged for the home. Futurism.com noted the ease with which the transaction was conducted. "The buyer simply transferred the bitcoin to the seller, who then converted it into US dollars."

    “In all of my 33 years of closing transactions, I honestly couldn’t have expected something so unique to go so smoothly,” Kuper Sotheby’s Sheryl Lowe, the buyer’s agent, said in a press release. “In a matter of 10 minutes, the bitcoin was changed to U.S. dollars and the deal was done!”

    Located in the central part of Austin, the property is just a few miles away from downtown.

    Futurism opines that the real estate transaction is "further proof" that bitcoin isn’t “a fraud." Instead, the transaction is another example of the increasing acceptance of cryptocurrencies, which are poised to revolutionize a variety of industries beyond finance, from transportation to entertainment to politics.

    According to Futurism, the home has grand entertaining areas, a master suite, and a chef-worthy kitchen. Sheryl Lowe of Kuper Sotheby’s that she “honestly couldn’t have expected something so unique to go so smoothly.” She said the seller was able to convert the bitcoin into US dollars in a matter of minutes.

    “In a matter of 10 minutes, the Bitcoin was changed to US Dollars and the deal was done!” she said in a statement.

    News of the sale comes about a week after one UK company focused on building affordable housing for young professionals said it would begin accepting bitcoin for down payments on its properties.

    Hear that, Ray?

    * * *

    Bitcoin has largely recovered from a selloff earlier in the month that was triggered by news that Chinese authorities were cracking down on local exchanges after banning initial coin offerings. The selloff worsened after JP Morgan Chase & CO CEO Jamie Dimon called bitcoin a "fraud" and said he would fire any traders caught speculating in it. One coin was trading at $4,006 on CoinDesk Wednesday morning.

    Earlier today, we noted that the price of a share of the Swiss National Bank climbed back above the price of one bitcoin on Wednesday thanks to a 13% jump. The bitcoin price, meanwhile, was largely flat.

  • "Racist" UCLA Professor Claims "Excessive Immigration" Is Hurting American Citizens

    Authored by Toni Airaksinen via CampusReform.org,

    University of California, Los Angeles research professor recently slammed the impact of “excessive immigration” on the labor market in a message to the campus community.

    Benjamin Zuckerman, professor of Astronomy and president of Californians for Population Stabilization, argued in an essay for The Daily Bruin that immigration, both legal and illegal, has a negative impact on native-born Americans.

    “For many years the United States has admitted a million legal immigrants a year. This, combined with illegal immigration, has had a significant impact on low-income American workers, who are disproportionately persons of color,” Zuckerman contends.

    Due to high rates of immigration, there is an unusually “abundant pool of cheap labor,” which he argues “contributes to the transfer of wealth from lower to upper strata of society, thus increasing income inequality.”

    “This is one reason why Californians for Population Stabilization supports reduced levels of immigration, and not because of ‘racism’ or ‘xenophobia,’” he assures his readers, responding to an op-ed written by UCLA alum Hector Prado, which alleged that Zuckerman’s anti-immigration work is rooted in exactly those prejudices.

    While students at UCLA have been quick to allege that Zuckerman is racist, his arguments are undergirded by concern with overpopulation, not immigration per se, and the mission of his own organization is rooted in concern over California’s burgeoning population.

    “California’s population has doubled, from 20 million to nearly 40 million in just the last forty years,” the website states.

     

    “More population growth has meant more pollution, more degradation of our environmental treasures, more traffic, overcrowded schools, higher taxes, longer waits at emergency rooms, [and] even more job competition.”

    However, Californians for Population Stabilization take care to note that immigration itself isn’t bad, but simply that “America’s antiquated immigration policy” causes problems, arguing that the country imports “millions of people with little to no regard for whether they have a skill set that matches the country’s economic needs.”

    In his essay for The Bruin, Zuckerman even suggests that population stabilization is consistent with left-wing values such as concern over climate change.

    "The importance of a prompt stabilization of the U.S. population is not a newfound concept,” he writes.

     

    “In fact, it was highlighted as one of the two most important steps the U.S. must take toward sustainability, according to the 1996 Population and Consumption Task Force Report of former President Bill Clinton’s Council on Sustainable Development.”

    Zuckerman concludes by insisting that “this nation can no longer afford to delay reasoned discussion about explosive population growth.”

    Campus Reform reached out to Zuckerman for an interview, but he was unable to respond in time for publication.

  • "No-Call, No-Show" Employees: Opioid Addiction Is Devastating American Manufacturers

    We’ve spent a lot of time of late discussing the impact of opioids on the American workforce.  While it is unclear exactly how much of an impact opioids are having on the steadily declining labor force participation rate, one thing is clear: nearly half of working age men not in the labor force today take some form of opioids on a daily basis.

    But, as Bloomberg points out today, drug abuse among those still gainfully employed is perhaps an even bigger problem for American manufacturing employers because of the safety concerns it presents.  Meanwhile, the additional drug testing costs associated with maintaining a safe work environment, in an era in which opioid addiction is spiraling out of control, tend to “mount up” as additional employees are required just to manage rigorous testing programs.

    At Philip Tulkoff’s food-processing plant in Baltimore, machines grind tough horseradish roots into puree. “If you put your arm in the wrong place,” the owner says, “and you’re not paying attention, it’s going to pull you in.” It’s not a good place to be intoxicated.

     

    Drug abuse in the workforce is a growing challenge for American business. While economists have paid more attention to the opioid epidemic’s role in keeping people out of work, about two-thirds of those who report misusing pain-relievers are on the payroll. In the factory or office, such employees can be a drag on productivity, one of the U.S. economy’s sore spots. In the worst case, they can endanger themselves and their colleagues.

     

    That’s why Tulkoff practices zero-tolerance. One randomly chosen employee gets tested every month, “and we’re gonna move it to two.” The costs mount up: He has to hire a third-party company to select the worker, and pay the clinic to conduct tests. Money is wasted training workers who subsequently drop out when they fail the screening.

     

    “We caught someone recently, saw him injecting,’’ said Jay Steinmetz, chief executive of Barcoding Inc. The Baltimore company creates software, and provides equipment, that helps businesses manage their inventory. It’s a desk environment, with none of the grinding machinery that poses risks for Tulkoff’s staff.

    Of course, other manufacturing companies have decided to take the opposite approach on drug testing as too rigorous a program would inevitably just result in excessive layoffs in an already tight labor market.

    It’s no wonder that not every boss is as rigorous as Tulkoff. “I know people who’ve said, ‘I can’t do it, I would lose too many people’,” he says.

     

    At the moment, 57 percent of employers say they perform drug tests, according to the National Safety Council. Out of those, more than 40 percent don’t screen for synthetic opioids like oxycodone — among the most widely abused narcotics, and one of the substances that new federal rules are targeting.

     

    “I have heard manufacturers over the years say, ’We wish we didn’t have to test for drugs,’ because they lose money when they can’t fill those positions,’’ he said.

     

    Meanwhile, “no-call, no-show” employees, those who simply take a job just long enough to score their next hit, are devastating to workplace productivity.

    And there’s no guarantee that new hires will stick around. Drug problems are accelerating the turnover among staff.

     

    “In the last three weeks, we’ve had six people come, get trained, and then are no-call, no-shows,’’ Greenblatt said. He said the biggest loss comes from taking high-performing employees out of the production process so they can train new hires. “That person is diverted into the completely unproductive task of teaching someone who’s going to leave in a day or two.’’

     

    Productivity growth in the U.S. economy has been slowing for decades. There’s little consensus about the causes. But there are signs that the spread of drug-abuse could be contributing to the problem.

    One Ohio factory owner shared her story with WTVR saying that although she has numerous blue-collar jobs available at her company, she struggles to fill positions because so many candidates fail drug tests. Regina Mitchell, co-owner of Warren Fabricating & Machining in Hubbard, Ohio, told The New York Times that four out of 10 applicants otherwise qualified to be welders, machinists and crane operators will fail a routine drug test. While not quite as bad as the adverse hit rate hinted at by the Beige Book, this is a stunning number, and one which indicates of major structural changes to the US labor force where addiction and drugs are keeping millions out of gainful (or any, for that matter) employment.

    Speaking to CNN’s Michael Smerconish, Mitchell said that her requirements for prospective workers were simple: “I need employees who are engaged in their work while here, of sound mind and doing the best possible job that they can, keeping their fellow co-workers safe at all times,” she said.

    This has proven to be a problem.

    “We have a 150-ton crane in our machine shop. And we’re moving 300,000 pounds of steel around in that building on a regular basis. So I cannot take the chance to have anyone impaired running that crane, or working 40 feet in the air.”

    While President Trump addressed his blue-collar base in Ohio this week, returning to his campaign theme of getting local communities back to work and returning jobs to America from overseas, the problem may not be a scarcity of jobs: it is workers who are not under the influence. As Mitchell said she has jobsshe just doesn’t have sober applicants. For 48 of the 50 years her company has been around, drug abuse had never been an issue, she told Smerconish.

    “It hasn’t been until the last two years that we needed to have a policy, a corporate policy in place, that protects us from employees coming into work impaired,” she said.

    Maybe instead of focusing how to perpetuate the US waiter and bartender job recovery, the BLS – and the administration – should contemplate how to eliminate the pervasive addiction problem which is rapidly becoming a structural hurdle for America’s millions of unemployed.

  • Even Bartenders And Personal Trainers Can Receive Whistleblower Awards From The SEC

    Authored by Jordan A. Thomas, chair of the whistleblower practice at the law firm of Labaton Sucharow

    Crafted by an ad agency immediately following 9/11, the slogan “if you see something, say something” took hold with astonishing speed. The tagline reflected a tectonic cultural shift; the serious and growing need for public participation in the nation’s enforcement paradigm. In many ways, those six words have come to define a change in guard in which government has effectively deputized everyday citizens to be its eyes and ears.

    The Securities and Exchange Commission sought a similar kind of cooperation with a revolutionary program that provides whistleblowers the ability to report anonymously and receive significant monetary awards and employment protections for tipping the agency to federal securities violations.  Its “deputies” are rewarded handsomely. Since its launch, the program has received tens of thousands of tips and has paid out approximately $158 million from a replenishing account funded by penalties, not taxpayer dollars.   

    Remarkably, only about half of whistleblower award recipients were current or former employees of the subject companies, according to a 2015 report to Congress by the SEC. While that figure inched up in the subsequent year, even at our firm's practice, over one-quarter of whistleblower clients were not employed by the companies on which they reported. So who are these outsiders and how are they changing the game?

    Who Can Blow the Whistle?

    Almost anyone can be an SEC whistleblower. Eligibility is more defined by the nature of the intelligence, than the source. That is, qualifying information provided by a tipster must be original and derived from either independent knowledge or independent analysis. Generally, where a whistleblower works does not factor into the eligibility calculus. Whistleblowers can be analysts, forensic accountants, secretaries, investors and even journalists. We have also met successful whistleblowers who gained their knowledge from a personal relationships with individuals at the subject companies. The net is wide; even bartenders, hair stylists and personal trainers could be eligible to receive a monetary award if they learn about possible securities violations from their clients.   

    This broad eligibility also extends to outside advisors of the company in question. Pursuant to the SEC guidelines, so-called gatekeepers such as officers, directors, attorneys, accountants and compliance professionals can be whistleblowers, although they must satisfy special procedural requirements. For instance, lawyers must carefully navigate their professional responsibilities, such as the attorney-client privilege.

    Outsiders In Action: Historical Awards

    When it comes to shining a light on corporate wrongdoing outsiders play a vital role. Consider the case of medical device company Orthofix International NV, which earlier this year agreed to pay over $14 million to settle charges that it improperly booked revenues and made payments to Brazilian doctors in violation of the Foreign Corrupt Practices Act. Four former executives also agreed to pay penalties to settle cases related to the accounting failures.

    The case is significant because my firm's clients, the Orthofix whistleblowers, were two independent financial analysts who performed the extensive detective work that enabled the SEC to bring its case. The analysts initially had a hunch that something about the company’s financial performance looked “odd.” They examined publicly available financial information and compared Orthofix’s reported sales and inventory turnover data with that of its peers to unearth evidence of suspicious practices. The whistleblower submission, supported by work from our in-house investigative team, included extensive briefing documents and analysis, which armed the SEC for a successful enforcement action. The analysts will be well rewarded for their diligence and determination: their award is expected to total at least $2.5 million.

    In a more recent example, on July 25, 2017, the SEC announced a whistleblower award of nearly $2.5 million to an employee of a domestic government agency. The related SEC order noted that, in general, an employee of a federal, state or local government agency can be a qualified whistleblower. There are some exceptions that apply to employees of certain regulatory agencies or law enforcement organizations, who are charged with uncovering legal violations as part of their responsibilities.

    Last year, in announcing an award of more than $700,000 to an outsider who provided the SEC with a detailed analysis that led to a successful enforcement action, Andrew Ceresney, then Director of the SEC’s Enforcement Division, affirmed the important role of outsiders in the new enforcement paradigm: “The voluntary submission of high-quality analysis by industry experts can be every bit as valuable as first-hand knowledge of wrongdoing by company insiders.”

    Finally, what was likely the first award issued to an outsider was also one of the largest SEC whistleblower awards ever made. In October 2013, the SEC awarded $14.7 million to an individual who provided key information to halt an ongoing scheme. Years later, in subsequent litigation with his partners, the whistleblower was identified as an investment fund manager who provided information regarding a visa-for-sale scam perpetrated by a Chicago man who raised $147 million from Chinese investors.

    What’s A Outsider To Do?

    In some respects, outsiders are free from certain pressures that plague employee whistleblowers who anticipate workplace retaliation or may have executed secrecy agreements that attempt to bar the reporting of misconduct. While both are illegal, such instruments and behaviors force employee whistleblowers to operate from positions of fear. Outsiders, on the other hand, can stand up and speak out against wrongdoing from an entirely different platform. And there is no doubt that in crafting the guidelines, the SEC fully intended and expected that outsiders would play a key role in helping to detect and deter securities violations. Indeed, during my tenure at the SEC, I was a part of the small group that developed the statutory and regulatory provisions of the whistleblower program. Recognizing that a panoply of individuals outside of the defendant companies could have actionable intelligence, we designed a program that ensures that virtually all knowledgeable individuals can speak up about possible securities violations—regardless of whether they are insiders or outsiders.    

    Nevertheless, it can be tricky for outsiders to move from hunch to knowledge and suspicion to proof. When information about potential violations is based on professional judgment rather than firsthand knowledge, it is mission critical to verify suspicions with in-depth analysis or other tangible (legally acquired) evidence. In our practice, our investigative team is led by a former FBI agent who calls upon seasoned investigators and financial analysts to support our clients’ submissions. This is particularly important for our clients outside the violating company, who want to confirm their suspicions or fill in any evidentiary gaps.

    At the end of the day, whether an individual suspects fraud from a distance or is smack dab in the midst of its damaging spiral, law enforcement authorities need the public’s help and should haven’t to go it alone. Frauds are too complex, too far-reaching and our enforcers stretched too thin. This is a public-private partnership of the highest order and the greatest necessity. If tiplines and overt vigilance are the ‘new normal,’ those who report misconduct are the heroes of our generation. And the government will reward their courage.

    So much for “tattletales.”

  • This $700 Billion Public Employee Ticking Time Bomb Is Only 6.7% Funded; Most States Are Under 1%

    We’ve spent a lot of time of late discussing the inevitable public pension crisis that will eventually wreak havoc on global financial markets.  And while the scale of the public pension underfunding is unprecedented, with estimates ranging from $3 – $8 trillion, there is another taxpayer-funded retirement benefit that has been promised to union workers over the years that puts pensions to shame…at least on a percentage funded basis.

    Other Post-Employment Benefits (OPEB), like pensions, are a stream of future payments that have been promised to retirees primarily to cover healthcare costs.  However, unlike pensions, most government entities don’t even bother to accrue assets for this massive stream of future costs resulting in $700 billion of liabilities that most taxpayer likely didn’t even know existed. 

    As a study from Pew Charitable Trusts points out today, the average OPEB plan in the U.S. today is only 6.7% funded (and that’s if you believe their discount rates…so probably figure about half that amount in reality) and many states around the country are even worse.

    States paid a total of $20.8 billion in 2015 for non-pension worker retirement benefits, known as other post-employment benefits (OPEB).  Almost all of this money was spent on retiree health care. The aggregate figure for 2015, the most recent year for which complete data are available, represents an increase of $1.2 billion, or 6 percent, over the previous year. The 2015 payments covered the cost of current-year benefits and in some states included funding to address OPEB liabilities. These liabilities—the cost of benefits, in today’s dollars, to be paid in future years—totaled $692 billion in 2015, a 5 percent increase over 2014.

     

    In 2015, states had $46 billion in assets to meet $692 billion in OPEB liabilities, yielding a funded ratio of 6.7 percent. The total amount of assets was slightly higher than the reported $44 billion in 2014, though the funding ratio did not change. The average state OPEB funded ratio is low because most states pay for retiree health care benefits on a pay-as-you-go basis, appropriating revenue annually to pay retiree health care costs for that year rather than pre-funding liabilities by setting aside assets to cover the state’s share of future retiree health benefit costs.

     

    State OPEB funded ratios vary widely, from less than 1 percent in 19 states to 92 percent in Arizona. As Figure 1 shows, only eight have funded ratios over 30 percent. These states typically follow pre-funding policies spelled out in state law. Many of them also make use of the expertise of staff from the state pension system to invest and manage plan assets.

     

    Looking at the problem on a relative basis, you find that several states have accrued net OPEB liabilities totaling in excess of 10% of the personal income generated within their borders.

    Pew compared states 2015 OPEB liabilities with 2015 state personal income to show these liabilities in relation to the potential resources that states could draw on to cover the liabilities. The major ratings agencies and other financial research organizations commonly use personal income as a metric to illustrate untapped revenue sources and as an indicator of how flexible states can be in meeting their obligations under changing budget conditions. The research shows significant overall reported OPEB liabilities, but the relative size varies widely. (See Figure 2).

     

    The primary driver for the variation in OPEB liabilities is the difference in how states structure health care benefits for retirees. As a percentage of personal income, the liabilities range from less than 1 percent in 16 states to 16 percent in New Jersey.  Alaska, which has the highest ratio of liabilities to personal income at 42 percent, is a clear outlier among the 50 states because of generous benefit levels that can reach up to 90 percent of premiums for some retired workers. States that provide eligible retirees a monthly contribution equal to a flat percentage of the health insurance coverage premium report the largest liabilities—and could face the greatest fiscal challenges because their costs automatically increase as plan premiums do.

     

    Conversely, those states with fixed-dollar premium subsidies provide a smaller benefit and report lower liabilities. Their exposure to health care cost inflation is also lower, because a fixed-dollar subsidy does not rise with the plan premium.  Lastly, the states that only provide access to a retiree health plan, with no subsidy, have the lowest liabilities as a percentage of personal income.  Although these plans do not make an explicit monthly premium contribution to retirees, many offer retirees a reduced premium through a group rate, which is an implicit subsidy. The Governmental Accounting Standards Board (GASB), the private, independent organization that sets accounting and financial reporting standards for U.S. state and local governments, requires plans to recognize these implicit subsidies in plan financial reporting.

     

    Meanwhile, the cost increases of healthcare premiums seem to massively exceed inflation and/or wage growth year after year.

    In contrast, a number of states with higher premium contributions—including California and New Jersey—reported significantly greater liabilities beginning in 2014, reflecting increases in assumed future costs.   California’s plan actuary attributed $7.1 billion of the state’s $7.9 billion liability increase to changing demographic assumptions to account for longer retiree life expectancy in that year.New Jersey’s 2014 hike included a 5 percent increase in liabilities caused by changes in its mortality assumptions and a 9 percent jump linked to changes in health care cost assumptions. For states with the largest year-over-year change in OPEB liabilities, changes in assumptions were the largest driver in increasing costs.

    But we’re sure it’s OK, it’s not as if there is a massive wave of baby boomers that are about to retire and ask for these benefits to be paid anytime in the near future…

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Today’s News 20th September 2017

  • How The Military Defeated Trump's Insurgency

    Via Moon of Alabama blog,

    Trump was seen as a presidential candidate who would possibly move towards a less interventionist foreign policy.

    That hope is gone. The insurgency that brought Trump to the top was defeated by a counter-insurgency campaign waged by the U.S. military. (Historically its first successful one).

    The military has taken control of the White House process and it is now taking control of its policies.

    It is schooling Trump on globalism and its "indispensable" role in it. Trump was insufficiently supportive of their desires and thus had to undergo reeducation:

    When briefed on the diplomatic, military and intelligence posts, the new president would often cast doubt on the need for all the resources.

     

    Defense Secretary Jim Mattis and Secretary of State Rex Tillerson organized the July 20 session to lay out the case for maintaining far-flung outposts — and to present it, using charts and maps, in a way the businessman-turned-politician would appreciate.

    Trump was hauled into a Pentagon basement 'tank' and indoctrinated by the glittering four-star generals he admired since he was a kid:

    The session was, in effect, American Power 101 and the student was the man working the levers. It was part of the ongoing education of a president who arrived at the White House with no experience in the military or government and brought with him advisers deeply skeptical of what they labeled the “globalist” worldview.

     

    In coordinated efforts and quiet conversations, some of Trump’s aides have worked for months to counter that view, hoping the president can be persuaded to maintain — if not expand — the American footprint and influence abroad.

    Trump was sold the establishment policies he originally despised. No alternative view was presented to him.

    It is indisputable that the generals are now ruling in Washington DC. They came to power over decades by shaping culture through their sponsorship of Hollywood, by manipulating the media through "embedded" reporting and by forming and maintaining the countries infrastructure through the Army Corps of Engineers. The military, through the NSA as well as through its purchasing power, controls the information flow on the internet. Until recently the military establishment only ruled from behind the scene. The other parts of the power triangle, the corporation executives and the political establishment, were more visible and significant. But during the 2016 election the military bet on Trump and is now, after he unexpectedly won, collecting its price.

    Trump's success as the "Not-Hillary" candidate was based on an anti-establishment insurgency. Representatives of that insurgency, Flynn, Bannon and the MAGA voters, drove him through his first months in office. An intense media campaign was launched to counter them and the military took control of the White House. The anti-establishment insurgents were fired. Trump is now reduced to public figure head of a stratocracy – a military junta which nominally follows the rule of law.

    Stephen Kinzer describes this as America’s slow-motion military coup:

    Ultimate power to shape American foreign and security policy has fallen into the hands of three military men […]

     

     

    Being ruled by generals seems preferable to the alternative. It isn’t.

     

     

    [It] leads toward a distorted set of national priorities, with military “needs” always rated more important than domestic ones.

     

     

    It is no great surprise that Trump has been drawn into the foreign policy mainstream; the same happened to President Obama early in his presidency. More ominous is that Trump has turned much of his power over to generals. Worst of all, many Americans find this reassuring. They are so disgusted by the corruption and shortsightedness of our political class that they turn to soldiers as an alternative. It is a dangerous temptation.

    The country has fallen to that temptation even on social-economic issues:

    In the wake of the deadly racial violence in Charlottesville this month, five of the Joint Chiefs of Staff were hailed as moral authorities for condemning hate in less equivocal terms than the commander in chief did.

     

     

    On social policy, military leaders have been voices for moderation.

    The junta is bigger than its three well known leaders:

    Kelly, Mattis and McMaster are not the only military figures serving at high levels in the Trump administration. CIA Director Mike Pompeo, Attorney General Jeff Sessions, Energy Secretary Rick Perry and Interior Secretary Ryan Zinke each served in various branches of the military, and Trump recently tapped former Army general Mark S. Inch to lead the Federal Bureau of Prisons.

     

     

    the National Security Council [..] counts two other generals on the senior staff.

    This is no longer a Coup Waiting to Happen The coup has happened with few noticing it and ever fewer concerned about it. Everything of importance now passes through the Junta's hands:

    [Chief of staff John] Kelly initiated a new policymaking process in which just he and one other aide […] will review all documents that cross the Resolute desk.

     

     

    The new system [..] is designed to ensure that the president won’t see any external policy documents, internal policy memos, agency reports and even news articles that haven’t been vetted.

    To control Trump the junta filters his information input and eliminates any potentially alternative view:

    Staff who oppose [policy xyz] no longer have unfettered access to Trump, and nor do allies on the outside [.. .] Kelly now has real control over the most important input: the flow of human and paper advice into the Oval Office. For a man as obsessed about his self image as Trump, a new flow of inputs can make the world of difference.

    The Trump insurgency against the establishment was marked by a mostly informal information and decision process. That has been destroyed and replaced:

    Worried that Trump would end existing US spending/policies (largely, still geared to cold war priorities), the senior military staff running the Trump administration launched a counter-insurgency against the insurgency.

     

     

    General Kelly, Trump's Chief of Staff, has put Trump on a establishment-only media diet.

     

     

    In short, by controlling Trump's information flow with social media/networks, the generals smashed the insurgency's OODA loop (observe, orient, decide, act). Deprived of this connection, Trump is now weathervaning to cater to the needs of the establishment

    The Junta members dictate their policies to Trump by only proposing to him certain alternatives. The one that is most preferable to them will be presented as the only desirable one. "There are no alternatives," Trump will be told again and again.

    Thus we get a continuation of a failed Afghanistan policy and will soon get a militarily aggressive policy towards Iran.

    Other countries noticed how the game has changed. The real decisions are made by the generals, Trump is ignored as a mere figurehead:

    Asked whether he was predicting war [with North Korea], [former defence minister of Japan, Satoshi] Morimoto said: "I think Washington has not decided … The final decision-maker is [US Defence Secretary] Mr Mattis … Not the president."

    Climate change, its local catastrophes and the infrastructure problems it creates within the U.S. will further extend the military role in shaping domestic U.S. policy.

    Nationalistic indoctrination, already at abnormal heights in the U.S. society, will further increase. Military control will creep into ever extending fields of once staunchly civilian areas of policy. (Witness the increasing militarization of the police.)

    It is only way to sustain the empire.

    It is doubtful that Trump will be able to resist the policies imposed on him. Any flicker of resistance will be smashed. The outside insurgency which enabled his election is left without a figurehead, It will likely disperse. The system won.

  • The Future Of Artificial Intelligence (According To Pop Culture)

    The unpredictable nature of super-intelligent, self-improving machines lends itself quite nicely to the dramatic storylines of movies and books.

    It’s a science fiction writer’s dream – as Visual Capitalist's Jeff Desjardins warns: if AI becomes smart enough to create more advanced versions of itself, pretty much every outcome is on the table. Machines could empower humanity to become enlightened and virtuous. On the less optimistic side? Machines could instead ruthlessly enslave all of humankind to tickle their own warped sense of satisfaction.

    POP CULTURE PERSPECTIVES

    From the plot of movies like The Terminator to The Matrix, pop culture offers up innumerable examples of what could happen from the rise of the machines – and most of them, as you can imagine, steer towards the less optimistic side of the spectrum.

    Today’s infographic from BBC Future provides an entertaining take on these scenarios, organized by potential likelihood.

    Courtesy of: Visual Capitalist

    Some experts see AI having a $15.7 trillion impact on our economy, but pop culture offers up a slightly different perspective of what the future may hold.

    FUTURE AI SCENARIOS

    Here are just some of the scenarios offered up in mainstream movies, books, and television shows. Some are apocalyptic and dystopian, and some seem just plain bizarre:

    Seductive Siris: In 2013’s Her, Joaquin Phoenix falls in love with an intelligent operating system named Samantha.

     

    Self-Replicating AI: In 1995’s Screamers, scientists create a self-replicating weapon with one purpose: to destroy all life.

     

    The Singularity: AI vies to take over the world in 1982’s classic Tron.

     

    Rampaging Robots: In 1973’s Westworld, recently re-envisioned as a different TV series by HBO, murderous androids go on a killing spree in a futuristic Disney-style theme park.

     

    Feeling Machines: In the 1999 movie Bicentennial Man, a household robot experiences emotions, creative thoughts, and eventually develops sentience.

     

    Androids Among Us: Artificial beings infiltrate society undetected in TV series Battlestar Galactica.

     

    Human Enslavement: In the 1999 movie The Matrix, all life on Earth is an elaborate facade. The robots are really the ones in command, but you wouldn’t know it until you take the “red pill”.

     

    Mind Upload: Digitized humans gain immortality and then wreak havoc, such as in 2014’s Transcendence.

    ONE CERTAINTY

    While some of these ideas seem far-fetched, it’s worth noting that not all future scenarios are as distant as they may seem.

    With computing power increasing exponentially, the tail end of the hockey stick could happen sooner than we may think.

  • Paul Craig Roberts Exhorts "Whatever Happened To America?"

    Authored by Paul Craig Roberts,

    Dear Friends and Supporters, this is my quarterly call for your financial support. There is no one who will write for you more frankly and truthfully than I do. This article is long. Read it. Twice, three times. You will learn an important part of your history that has been cast into the Memory Hole. You will learn the nature of the danger that we as a people face. And you will learn a lot about yourselves. PCR

    Whatever Happened to America?

    Over the course of my lifetime, America has become an infantile country.

    When I was born America was a nation. Today it is a diversity country in which various segments divided by race, gender, and sexual preference, preach hate toward other segments. Currently white heterosexual males are losing in the hate game, but once hate is unleashed it can turn on any and every one. Working class white males understand that they are the new underclass in a diversity country in which everyone has privileges except them. Many of the university educated group of heterosexual white males are too brainwashed to understand what is happening to them. Indeed, some of them are so successfully brainwashed that they think it is their just punishment as a white male to be downtrodden.

    Donald Trump’s presidency has been wrecked by hate groups, i.e., the liberal/progressive/left who hate the “racist, misogynist, homophobic, gun nut working class” that elected Trump (see Eric Draitser, “Why He Won,” in CounterPunch, vol. 23, No. 1, 2017). For the liberal/progressive/left Trump is an illegitimate president because he was elected by illegitimate voters.
    Today the American left hates the working class with such intensity that the left is comfortable with the left’s alliance with the One Percent and the military/security complex against Trump.

    America, the melting pot that produced a nation was destroyed by Identity Politics. Identity Politics divides a population into hate groups. This group hates that one and so on. In the US the most hated group is a southern white heterosexual male.

    To rule America, Identity Politics is competing with a more powerful group – the military/security complex supported by the neoconservative ideology of American world hegemony.

    Currently, Identity Politics and the military/security complex are working hand-in-hand to destroy President Trump. Trump is hated by the powerful military/security complex because Trump wanted to “normalize relations with Russia,” that is, remove the “Russian threat” that is essential to the power and budget of the military/security complex. Trump is hated by Identity Politics because the imbeciles think no one voted for him but racist, misogynists, homophobic gun-nuts.

    The fact that Trump intended to unwind the dangerous tensions that the Obama regime has created with Russia became his hangman’s noose. Designated as “Putin’s agent,” President Trump is possibly in the process of being framed by a Special Prosecutor, none other than member of the Shadow Government and former FBI director Robert Mueller. Mueller knows that whatever lie he tells will be accepted by the media presstitutes as the Holy Truth. However, as Trump, seeking self-preservation, moves into the war camp, it might not be necessary for the shadow government to eliminate him.

    So the Great American Democracy, The Morally Pure Country, is actually a cover for the profits and power of the military/security complex.

    What is exceptional about America is the size of the corruption and evil in the government and in the private interest groups that control the government.

    It wasn’t always this way.

    In 1958 at the height of the Cold War a young Texan, Van Cliburn, 23 years of age, ventured to show up at the International Tchaikovsky Piano Competition in Moscow. Given the rivalry between the military powers, what chance did an American have of walking away with the prize? The cold warriors of the time would, if asked, had said none.

    But Van Cliburn electrified the audience, the Moscow Symphony, and the famous conductor. His reception by the Soviet audience was extraordinary. The judges went to Khrushchev and asked, “Can we give the prize to the American?” Khrushchev asked, “Was he the best.” The answer, “Yes.” “Well, then give him the prize.”

    The Cold War should have ended right there, but the military/security complex would not allow it.

    You can watch the performance here:

    In other words, the Soviet Union, unlike America today, did not need to prevail over the truth. The Soviets gave what has perhaps become the most famous of all prizes of musical competition to an American. The Soviets were able to see and recognize truth, something few Americans any longer can do.

    The supporters of this website are supporters because, unlike their brainwashed fellows who are tightly locked within The Matrix, they can tell the difference between truth and propaganda. The supporters of this website comprise the few who, if it is possible, will save America and the world from the evil that prevails in Washington.

    Van Cliburn came home to America a hero. He went on to a grand concert career. If Van Cliburn had been judged in his day, as Donald Trump is today for wanting to defuse the dangerously high level of tensions with Russia, Van Cliburn would have been greeted on his return with a Soviet prize as a traitor. The New York Times, the Washington Post, CNN, NPR and the rest of the presstitutes would have denounced him up one street and down another. How dare Van Cliburn legitimize the Soviet Union by participating in a music competition and accepting a Soviet prize!

    Did you know that Van Cliburn, after his talented mother had provided all the music instruction she could, studied under a RUSSIAN woman? What more proof do you need that Van Cliburn was a traitor to America? Imagine, he studied under a RUSSIAN! I mean, really! Isn’t this a RUSSIAN connection?!

    How can we avoid the fact that all those music critics at the New York Times and Washington Post were also RUSSIAN agents. I mean, gosh, they actually praised Van Cliburn for playing RUSSIAN music in MOSCOW so well.

    Makes a person wonder if Ronald Reagan wasn’t also a RUSSIAN agent. Reagan, actually convinced Van Cliburn to come out of retirement and to play in the White House for Soviet leader Gorbachev, with whom Reagan was trying to end the Cold War.

    I am making fun of what passes for reasoning today. Reason has been displaced by denunciation. If someone, anyone, says something, that can be misconstrued and denounced, it will be, the meaning of what was said not withstanding.

    Consider the recent statement by the Deputy Prime Minister of Japan, Taro Aso, in an address to members of his ruling political party. He said: “I don’t question your motives to be a politician. But the results are important. Hitler, who killed millions of people, was no good, even if his motives were right.”

    To anyone capable of reason, it is perfectly clear that Aso is saying that the ends don’t justify the means. “Even if” is conditional. Aso is saying that even if Hitler acted in behalf of a just cause, his means were impermissible.

    Aso, a man of principle, is instructing his party’s politicians to be moral beings and not to sacrifice morality to a cause, much less an American cause of Japanese rearmament so as to amplify Washington’s aggression toward China.

    The response to a simple and straight forward statement that not even in politics do the ends justify the means was instant denunciation of the Deputy Prime Minister for “shameful” and “dangerous” remarks suggesting that Hitler “had the right motives.”

    Arrgh! screamed the Simon Wiesenthal Center which saw a new holocaust in the making. Reuters reported that Aso had put his foot in his mouth by making remarks that “could be interpreted as a defense of Adolf Hitler’s motive for genocide during World War Two.” Even RT, to which we normally look for real as opposed to fake news, joined in the misreporting. The chairman of the Japanese opposition party joined in, terming Aso’s statement that the ends don’t justify the means “a serious gaffe.”

    Of course the South Koreans and the Chinese, who have WWII resentments against Japan, could not let the opportunity pass that the Western media created, and also unloaded on Japan, condemning the Deputy Prime Minister as a modern advocate of Hitlerism. The Chinese and South Koreans were too busy settling old scores to realize that by jumping on Aso they were undermining the Japanese opposition to the re-militarization of Japan, which will be at their expense.

    Aso is astonished by the misrepresentation of his words. He said, “I used Hitler as an example of a bad politician. It is regrettable that my comment was misinterpreted and caused misunderstanding.”

    It seems that hardly anyone was capable of comprehending what Aso said. He clearly denounced Hitler, declaring Hitler “no good,” but no one cared. He used the word, “Hitler,” which was sufficient to set off the explosion of denunciation. Aso responded by withdrawing Hitler as his example of a “bad politician.” And this is a victory?

    The media, even RT alas, was quick to point out that Aso was already suspect. In 2013 Aso opposed the overturning of Japan’s pacifist constitution that Washington was pushing in order to recruit Japan in a new war front against China. Aso, in the indirect way that the Japanese approach dissent, said “Germany’s Weimar Constitution was changed [by the Nazis] before anyone knew. It was changed before anyone else noticed. Why don’t we learn from the technique?” Aso’s remarks were instantly misrepresented as his endorsement of surreptitiously changing Japan’s constitution, which was Washington’s aim, whereas Aso was defending its pacifist constraint, pointing out that Japan’s pacificist Contitution was being changed without voters’ consent.

    An explanation of Aso’s words, something that never would have needed doing prior to our illiterate times, has its own risks. Many Americans confuse an explanation with a defense. Thus, an explanation can bring denunciation for “defending a Japanese nazi.” Considering the number of intellectually-challenged Americans, I expect to read many such denunciations.

    This is the problem with being a truthful writer in these times. More people want someone to denounce than want truth. Truth-tellers are persona non grata to the ruling establishment and to proponents of Identity Politics. It is unclear how much longer truth will be permitted to be expressed. Already it is much safer and more remunerative to tell the official lies than to tell the truth.

    More people want their inculcated biases and beliefs affirmed by what they read than want to reconsider what they think, expecially if changing their view puts them at odds with their peers. Most people believe what is convenient for them and what they want to believe. Facts are not important to them. Indeed, Americans deny the facts before their eyes each and every day. How can America be a superpower when the population for the most part is completely ignorant and brainwashed?

    When truth-tellers are no more, it is unlikely they will be missed. No one will even know that they are gone. Already, gobs of people are unable to follow a reasoned argument based on undisputed facts.

    Take something simple and clear, such as the conflict over several decades between North and South leading to the breakup of the union. The conflict was economic. It was over tariffs. The North wanted them in order to protect northern industry from lower priced British manufactures. Without tariffs, northern industry was hemmed in by British goods and could not develop.

    The South did not want the tariffs because it meant higher prices for the South and likely retaliation against the South’s export of cotton. The South saw the conflict in terms of lower income forced on southerners so that northern manufacturers could have higher incomes. The argument over the division of new states carved from former Indian territories was about keeping the voting balance equal in Congress so that a stiff tariff could not be passed. It is what the debates show. So many historians have written about these documented facts.

    Slavery was not the issue, because as Lincoln said in his inaugural address, he had no inclination and no power to abolish slavery. Slavery was a states rights issue reserved to the states by the US Constitution.

    The issue, Lincoln said in his inaugural address, was the collection of the tariff. There was no need, he said, for invasion or bloodshed. The South just needed to permit the federal government to collect the duties on imports. The northern states actually passed an amendment to the Constitution that prohibited slavery from ever being abolished by the federal government, and Lincoln gave his support.

    For the South the problem was not slavery. The legality of slavery was clear and accepted by Lincoln in his inaugural address as a states right. However, a tariff was one of the powers given by the Constitution to the federal government. Under the Constitution the South was required to accept a tariff if it passed Congress and was signed by the President. A tariff had passed two days prior to Lincoln’s inaugeration.

    The South couldn’t point at the real reason it was leaving the union—the tariff—if the South wanted to blame the north for its secession. In order to blame the North for the breakup of the union (the British are leaving the European Union without a war), the South turned to the nullification by some northern states of the federal law and US Constitutional provision (Article 4, Section 2) that required the return of runaway slaves. South Carolina’s secession document said that some Northern states by not returning slaves had broken the contract on which the union was formed. South Carolina’s argument became the basis for the secession documents of other states.

    In other words, slavery became an issue in the secession because some Northern states—but not the federal government—refused to comply with the constitutional obligation to return property as required by the US Constitution.

    South Carolina was correct, but the northern states were acting as individual states, not as the federal government. It wasn’t Lincoln who nullified the Fugative Slave Act, and states were not allowed to nulify constitutional provisions or federal law within the powers assigned to the federal government by the Constitution. Lincoln upheld the Fugative Slave Act. In effect, what the South did was to nullify the power that the Constitution gives to the federal government to levy a tariff. Apologists for the South ignore this fact. The South had no more power under the Constitution to nullify a tariff than northern states had to nullify the Fugative Slave Act.

    Slavery was not, under the Constitution, a federal issue, but the tariff was. It was the South’s refusal of the tariff that caused Lincoln to invade the Confederacy.

    You need to undersand that in those days people thought of themselves as citizens of the individual states, not as citizens of the United States, just as today people in Europe think of themselves as citizens of France, Germany, Italy, etc., and not as citizens of the European Union. In was in the states that most government power resided. Robert E. Lee refused the offer of the command of the Union Army on the grounds that it would be treasonous for him to attack his own country of Virginia.

    Having explained history as it was understood prior to its rewrite by Identity Politics, which has thrown history down the Orwellian Memory Hole, I was accused of “lying about the motivations of the South” by a reason-impaired reader.

    In this reader we see not only the uninformed modern American but also the rudness of the uninformed modern American. I could understand a reader writing that perhaps I had misunderstood the secession documents, but “lying about the motivations of the South”? It is extraordinary to be called a liar by a reader incapable of understanding the issues. President Lincoln and the northern states gave the South complete and unequivable assurances about slavery, but not about tariffs.

    The reader sees a defense of slavery in the secession documents but is unable to grasp the wider picture that the South is making a states rights argument that some northern states, in the words of the South Carolina secession document, “have denied the rights of property . . . recognized by the Constitution.” The reader saw that the documents mentioned slavery but not tariffs, and concluded that slavery was the reason that the South seceded.

    It did not occur to the reason-impaired reader to wonder why the South would secede over slavery when the federal government was not threatening slavery. In his inaugural address Lincoln said that he had neither the power nor the inclination to forbid slavery. The North gave the South more assurances about slavery by passing the Corwin Amendment that added to the existing constitutional protection of slavery by putting in a special constitutional amendment upholding slavery. As slavery was under no threat, why would the South secede over slavery?

    The tariff was a threat, and it was a tariff, not a bill outlawing slavery, that had just passed. Unlike slavery, which the Constitution left to the discretion of individual states, tariffs were a federal issue. Under the Constitution states had no rights to nullify tariffs. Therefore, the South wanted out.

    It also does not occur to the reason-impaired reader that if the war was over slavery why have historians, even court historians, been unable to find evidence of that in the letters and diaries of the soldiers on both sides?

    In other words, we have a very full context here, and none of it supports that the war was fought over slavery. But the reader sees some words about slavery in the secession documents and his reasoning ability cannot get beyond those words.

    This is the same absence of reasoning ability that led to the false conclusion that the Deputy Prime Minister of Japan was an admirer of Hitler.

    Now for an example of an emotionally-impaired reader, one so emotional that he is unable to comprehend the meaning of his own words. This reader read Thomas DiLorenzo’s article (http://www.paulcraigroberts.org/2017/08/21/lincoln-myth-ideological-cornerstone-america-empire/) and my article (http://www.paulcraigroberts.org/2017/08/28/weaponization-history-journalism/) as an “absolution of the South” and as “whitewashing of the South.” Of what he doesn’t say. Slavery? Secession? All that I and DiLorenzo offer are explanations. DiLorenzo is a Pennsylvanian. I grew up in the South but lived my life outside it. Neither of us are trying to resurrect the Confederacy. As I understand DiLorenzo, his main point is that the so- called “civil war” destroyed the original US Constitution and centralized power in Washington in the interest of Empire. I am pointing out that ignorance has spawned a false history that is causing a lot of orchestrated hate. Neither of us thinks that the country needs the hate and the division hate causes. We need to be united against the centralized power in Washington that is turning on the people.

    Carried away by emotion, the reader dashed off an article to refute us. My interest is not to ridicule the reader but to use him as an example of the emotionally-impaired American. Therefore, I am protecting him from personal ridicule by not naming him or linking to his nonsensical article. My only interest is to illustrate how for too many Americans emotion precludes reason.

    First, the reader in his article calls DiLorenzo and I names and then projects his sin upon us, accusing us of “name-calling,” which he says is “a poor substitute for proving points.”

    Here is his second mistake. DiLorenzo and I are not “proving points.” We are stating long established known facts and asking how a new history has been created that is removed from the known facts.

    So how does the emotionally-disturbed reader refute us in his article? He doesn’t. He proves our point.

    First he acknowledges “what American history textbooks for decades have acknowledged: The North did not go to War to stop slavery. Lincoln went to war to save the Union.”

    How does he get rid of the Corwin Amendment. He doesn’t. He says everyone, even “the most ardent Lincoln-worshipping court historian,” knows that the North and Lincoln gave the South assurances that the federal government would not involve itself in the slavery issue.

    In other words, the reader says that there is nothing original in my article or DiLorenzo’s and that it is just the standard history, so why is he taking exception to it?

    The answer seems to be that after agreeing with us that Lincoln did not go to war over slavery and gave the South no reason to go to war over slavery, the reader says that the South did go to war over slavery. He says that the war was fought over the issue of expanding slavery into new states created from Indian territories.

    This is an extremely problematic claim for two indisputable reasons.

    First, the South went to war because Lincoln invaded the South.

    Second, the South had seceded and no longer had any interest in the status of new territories.

    As I reported in my article, it is established historical record that the conflict over the expansion of slavery as new states were added to the Union was a fight over the tariff vote in Congress. The South was trying to keep enough representation to block the passage of a tariff, and the North was trying to gain enough representation to enact protectionism over the free trade South.

    It is so emotionally important to the reader that the war was over slavery that he alleges that the reason the South was not seduced by the Corwin Amendment is that it did not guarantee the expansion of slavery into new states, but only protected slavery in those states in which it existed. In other words, the reader asserts that the South fought for an hegemonic ideology of slavery in the Union. But the South had left the Union, so clearly it wasn’t fighting to expand slavery outside its borders. Moreover, the North gave the South no assurances over the South’s real concern—its economic exploitation by the North. The same day the North passed the Corwin Amendment the North passed the tariff. Clearly, it was not assurances over slavery that mattered to the South. Slavery was protected by states rights. It was the tariff that was important to the South.

    Whereas the tariff was the issue that brought the conflict to a head, correspondence between Lord Acton and Robert E. Lee shows that the deeper issue was liberty and its protection from centralized power. On November 4, 1866, Lord Acton wrote to Robert E. Lee: “I saw in State Rights the only availing check upon the absolutism of the sovereign will, and secession filled me with hope, not as the destruction but as the redemption of Democracy.” Acton saw in the US Constitution defects that could lead to the rise of despotism. Acton regarded the Confederate Constitution as “expressly and wisely calculated to remedy” the defects in the US Constitution. The Confederate Constitution, Acton said, was a “great Reform [that] would have blessed all the races of mankind by establishing true freedom purged of the native dangers and disorders of Republics.” 

    Lee replied: “I yet believe that the maintenance of the rights and authority reserved to the states and to the people, not only essential to the adjustment and balance of the general system, but the safeguard to the continuance of a free government. I consider it as the chief source of stability to our political system, whereas the consolidation of the states into one vast republic, sure to be aggressive abroad and despotic at home, will be the certain precursor of that ruin which has overwhelmed all those that have preceded it.”

    A present day American unfamiliar with the 18th and 19th century efforts to create a government that could not degenerate into despotism will see hypocrisy in this correspondence and misread it. How, the present day American will ask, could Acton and Lee be talking about establishing true freedom when slavery existed? The answer is that Acton and Lee, like George Washington and Thomas Jefferson, understood that there were more ways of being enslaved than being bought and sold. If the battle is lost over the character of government and power becomes centralized, then all are enslaved.

    Lee’s prediction of a government “aggressive abroad and despotic at home” has come true. What is despotism if not indefinite detention on suspicion alone without evidence or conviction, if not execution on suspicion alone without due process of law, if not universal spying and searches without warrants?

    What I find extraordinary about today’s concern with slavery in the 1800s is the lack of concern with our enslavement today. It is amazing that Americans do not realize that they were enslaved by the passage of the income tax in 1913. Consider the definition of a slave. It is a person who does not own his own labor or the products of his own labor. Of course, if the slave is to live to work another day some of his labor must go to his subsistance. How much depended on the technology and labor productivity. On 19th century southern plantations, the slave tax seems to have been limited short of the 50% rate.

    When I entered the US Treasury as Assistant Secretary, the top tax rate on personal income was 50%. During the medieval era, serfs did not own all of their own labor. At the time I studied the era, the top tax rate on serfs was believed to have been limited to one-third of the serf’s working time. Given labor productivity in those days, any higher tax would have prevented the reproduction of the labor force.

    So what explains the concern about wage slavery in 1860 but not in 2017?

    The answer seems to be Diversity Politics. In 1860 blacks had the burden of wage slavery. In 2017 all have the burden except for the rich whose income is in the form of capital gains and those among the poor who don’t work. Identity Politics cannot present today’s wage slavery as the unique burder of a “preferred minority.” Today those most subjected to wage slavery are the white professionals in the upper middle class. That is where the tax burden is highest. Americans living at public expense are exempted from wage slavery by lack of taxable income. Consequently, the liberal/progressive/left only objects to 19th century wage slavery. 20th Century wage slavery is perfectly acceptable to the liberal/progressive/left. Indeed, they want more of it.

    People can no longer think or reason. There seems to be no rational component in their brain, just emotion set into action by fuse-lighting words.

    Here is an example hot off the press. This month in Cobb County, Georgia, a car was pulled over for driving under the influence of alcohol. The white police lieutenant requested the ID of a white woman. She replied that she is afraid to reach into her purse for her license, because she has read many stories of people being shot because police officers conclude that they are reaching for a gun. Instead of tasering the woman for non-compliance, yanking her out of the car, and body slamming her, the lieutenant diffused the situation by making light of her concern. “We only shoot black people, you know.” This is what a person would conclude from the news, because seldom is a big stink made when the police shoot a white person.

    The upshot of the story is that the lieutenant’s words were recorded on his recorder and when they were entered as part of the incident report, the chief of police announced that the lieutenant was guilty of “racial insensitivity” and would be fired for the offense.

    Now think about this. A little reasoning is necessary. How are the words racially insensitive when no black persons were present? How are the words racially insensitive when the lieutenant said exactly what blacks themselves say? And now the clincher: Which is the real insensitivity, saying “we only shoot black people” or actually shooting black people? How is it possible that the officer who uses “racially insensitive” words to diffuse a situation is more worthy of punishment that an officer who actually shoots a black person? Seldom is an officer who has shot a black, white, hispanic, Asian, child, grandmother, cripple, or the family dog ever fired.

    The usual “investigation” clears the officer on the grounds that he had grounds to fear his life was in danger—precisely the reason the woman didn’t want to reach into her purse.

    For a person who tries to tell the truth, writing is a frustrating and discouraging experience. What is the point of writing for people who cannot read, who cannot follow a logical argument because their limited mental capabilities are entirely based in emotion, who have no idea of the consequence of a population imbued with hate that destroys a nation in divisiveness?

    I ask myself this question everytime I write a column.

    Indeed, given the policies of Google and PayPal it seems more or less certain that before much longer anyone who speaks outside The Matrix will be shut down.

    Free speech is only allowed for propagandists. Megyn Kelly has free speech as long as her free speech lies for the ruling establishment. Her lies are proteced by an entire media network backed by the Shadow Goverment and the Deep State.

    My truth is backed only by your support.

    So, if you want the truth, or as close as I can get to it, support my website.

  • "It's All Fun & War-Games" In Russia, Until…

    Amid Russia's largest wargames yet, with over 100,000 taking part in "Zapad 2017" according to NATO, independent news site Fontanka.ru has released footage of a rather shocking event.

    Reuters reports that a military helicopter on a rural training exercise in western Russia mistakenly fired rockets at a group of parked vehicles, knocking at least one person to the ground, footage posted by Russian news sites and on social media showed.

    The clip below shows a helicopter firing a salvo of rockets at a military truck covered in camouflage netting in open countryside, with three vehicles with no military markings visible, parked a few meters away. A man in civilian clothes who had been standing close to the truck was engulfed in a cloud of dust. The person filming the clip, who was slightly further away, could be seen sprawled on the ground.

    The Russian Defence Ministry’s western military district, in a statement cited by Interfax news agency, said that during a training exercise a helicopter’s targeting system had mistakenly acquired a target, but denied anyone had been injured.

    The representative cited by Interfax did not say when the incident happened, or where, or if the exercise was part of the “Zapad-2017” war games.

    “As a result of a strike by an unguided rocket, a cargo vehicle with no people on board was damaged,” Interfax quoted a representative of the military district as saying.

  • Russian Collusion? New Emails Reveal Hillary Clinton Invited Putin To "Pay For Play" Event

    Authored by Mac Slavo via SHTFplan.com,

    In newly released emails which the mainstream media is willfully ignoring, Hillary Clinton invited Russian president Vladimir Putin to a Clinton Foundation event. The Russian collusion between Hillary Clinton is becoming very apparent.

    Hillary Clinton likes to talk a tough game about Russian President Vladimir Putin. And she likes to put him on the list of those at fault for her loss in the election last November to Donald Trump. But that didn’t stop her from inviting him and other top Russian officials to a Clinton Foundation gala right after she became Secretary of State.

    Clinton Foundation director of foreign policy Amitabh Desai sent dozens of invitations to world leaders including then-Russian Prime Minister Vladimir Putin, Russian President Dmitry Medvedev, and Former President of the Soviet Union Mikhail Gorbachev, emails recently obtained by Judicial Watch revealed.

    While Democrats blast any Republican who has the nerve to even look Russia’s direction, Hillary and her minions in the Clinton Foundation were begging the Russians to come to an event put on by the “pay for play” organization.

    Hillary offered political favors in exchange for money filtered through the Clinton Foundation.

    On March 13, 2009, Desai emailed the list of invitations to Assistant Secretary of State Andrew Shapiro, who then forwarded the email to top Clinton aide, Jake Sullivan. This happened at approximately the same time that the newly appointed Clinton tried to “reset” U.S. relations with Russia. Yet, Donald Trump has been blasted for trying to do the same thing. The propaganda in the media is becoming clear as they continue to brush this story under the rug too.

    Hillary Clinton repeatedly attacked Putin during her 2016 presidential campaign and often tried to link president Donald Trump to the Russian leader. Clinton and her staff, with help from Barack Obama and the media also allegedly concocted the “Russian hacking” narrative within 24-hours of her election defeat, as documented in the Clinton campaign tell-all book, Shattered: Inside Hillary Clinton’s Doomed Campaign:

    That strategy had been set within twenty-four hours of her concession speech. Mook and Podesta assembled her communications team at the Brooklyn headquarters to engineer the case that the election wasn’t entirely on the up-and-up.

     

    For a couple of hours, with Shake Shack containers littering the room, they went over the script they would pitch to the press and the public. Already, Russian hacking was the centerpiece of the argument.

    Clinton’s public display of contempt for Putin does not match her track record of how she interacted with the Russian leader in the past as controversy swirled following a uranium deal she approved while at the State Department. The deal was quickly followed by a massive donation to her foundation, proving the “pay for play” policy she herself used to become wealthy.

    “One year after inviting Putin to the Clinton Foundation event, she approved the sale of 20% of America’s uranium capacity to Russia,” Conservative Review noted.

     

    “Shortly thereafter, donors connected to the company that was sold to Russia contributed $145 million in donations to the Clinton Foundation.”

    These newly released emails simply prove what most already knew – Hillary Clinton’s collusion with Russia is far deeper than Donald Trump’s.

  • The Obamacare "Death Spiral": Health Plans Now Cost Employers More Than A New Car

    With the Graham-Cassidy Obamacare replacement now officially dead, it appears Senate Republicans will be unable to pass a repeal-and-replace bill before the Sept. 30 deadline announced by the Senate Parliamentarian arrives – though it’s impossible to rule out another long-shot plan gaining momentum in the coming days.

    After the deadline, Senate Republicans would need 60 votes for their repeal-and-replace bill, effectively killing the repeal-and-replace effort, at least for now.

    As Republicans struggle to fulfill their campaign promises to the American people, the Wall Street Journal has published a report showing that rising premiums are forcing some small business owners to stop offering benefits, the latest sign that Democrats ignored Republican rhetoric about the bill’s job-killing potential at their own political peril.

    As we’ve reported time and time again, the bill has increased cost pressures on businesses, forcing them lay off employees or pare back benefits to stay in business.

    According to WSJ, the average cost of health coverage offered by employers pushed toward $19,000 for a family plan this year, while the share of firms providing insurance to workers continued to edge lower, according to a major survey by the Kaiser Family Foundation.

    Annual premiums rose 3% to $18,764 for an employer plan in 2017, from $18,142 last year, the same rate of increase as in 2016, according to an annual poll of employers conducted by Kaiser and the Health Research & Educational Trust, a nonprofit affiliated with the American Hospital Association.

    Premiums for employers have been climbing for several years, though, as WSJ notes, their rise has been slowed somewhat by a shift toward larger out-of-pocket costs for employees in the form of higher deductibles. That move slowed this year, as deductibles were roughly flat, compared with 2016.

    Kaiser foundation officials said it wasn’t clear why the growth in deductibles appeared to pause this year. The average general deductible for single coverage among all workers, including those with no deductible, this year was $1,221 – the same as last year, but up sharply from $802 in 2012. This year, 28% of covered workers were enrolled in high-deductible plans that can be paired with savings accounts that aren’t taxed, compared with 29% last year and 19% five years ago.

    Drew Altman, chief executive of the Kaiser foundation, said it was too soon to tell if the growth in deductibles would quickly resume next year, or if employers are reluctant to keep pushing the tactic.

    “We’ll have to watch it,” Mr. Altman said. “It’s possible it’s playing itself out or reaching some kind of natural limit.”

    Still, the rise of premiums over time has resulted in family health plans that can annually cost more than a new car, though often most of the cost is borne by employers. Employees paid on average $5,714, or 31%, of the premiums, for a family plan in 2017, according to Kaiser.

    In what should be interpreted as clear-cut evidence of the bill’s job-killing potential, Gary Claxton, a vice president at the foundation, said that the overall cost of insurance appears to be driving small firms, particularly those with low-wage workers, to stop offering health benefits. Indeed, among small employers that didn’t offer health insurance, 44% said the biggest reason for not providing the benefit was its cost. “It’s harder for them to maintain coverage when it’s so expensive,” Mr. Claxton said.

    However, among small employers that didn’t provide health coverage, 16% did give workers some money they could use toward purchasing a plan themselves.

    None of this should surprise readers, as we've been writing for years that the entire Obamacare system is on the "verge of collapse" as premiums soar, risk pools deteriorate and insurers were pull out of exchanges all around the country leaving many Americans with just a single 'option' for health insurance.

    Meanwhile, for an individual worker, the average annual cost of employer coverage was $6,690 in the 2017 survey, up 4% from last year, with employees paying 18% of that.

    In another troubling trend highlighted by WSJ, the number of employers offering health insurance as a benefit to employees has been declining even as the labor market has purportedly been tightening. This appears to jive with stagnant hourly earnings, which have shown little movement as most of the new jobs being created in the US are low-level, low-skill and low-pay.

    The Kaiser survey was conducted between January and June of this year and included 2,137 randomly selected employers that responded to the full telephone survey.
     

  • Did Obama Know About Comey's Surveillance?

    Authored by James Freman op-ed via The Wall Street Journal,

    The media is less interested in Obama Administration wiretapping than in how Trump described it…

    This week CNN is reporting more details on the Obama Administration’s 2016 surveillance of people connected to the presidential campaign of the party out of power. It seems that once President Obama’s appointee to run the FBI, James Comey, had secured authorization for wiretapping, the bureau continued its surveillance into 2017. CNN reports:

    US investigators wiretapped former Trump campaign chairman Paul Manafort under secret court orders before and after the election, sources tell CNN, an extraordinary step involving a high-ranking campaign official now at the center of the Russia meddling probe.

     

    The government snooping continued into early this year, including a period when Manafort was known to talk to President Donald Trump.

     

    Some of the intelligence collected includes communications that sparked concerns among investigators that Manafort had encouraged the Russians to help with the campaign, according to three sources familiar with the investigation. Two of these sources, however, cautioned that the evidence is not conclusive.

    This means the wiretapping was authorized more than ten months ago and perhaps more than a year ago.

    It was presumably a tough decision for a judge to issue a secret warrant under the Foreign Intelligence Surveillance Act, enabling the administration to spy on someone connected with the presidential campaign of its political adversaries.

    One would presumably only approve such an order if the request presented by the executive branch was highly compelling and likely to produce evidence that the subject of the wiretap was in fact working with Russia to disrupt U.S. elections.

    Roughly a year later, as the public still waits for such evidence, this column wonders how this judge is feeling now, especially now that CNN has reported that at least two of its three sources believe the resulting evidence is inconclusive.

    One would also presume—or at least hope—that seeking to wiretap associates of the leader of the political opposition is not an everyday occurrence in any administration. At the very least, it seems highly unlikely that such a decision would be made by a mid-level official. CNN notes,

    “Such warrants require the approval of top Justice Department and FBI officials, and the FBI must provide the court with information showing suspicion that the subject of the warrant may be acting as an agent of a foreign power.”

    It seems reasonable for the public to know exactly which officials made this decision and who else they consulted or informed of their surveillance plans. Was the President briefed on the details of this investigation?

    And as for the information showing suspicion, where did the FBI come up with that? A September 7 column from the Journal’s Kim Strassel raises disturbing questions, based on recent events and a Washington Post story from last winter. Ms. Strassel writes:

    The House Intelligence Committee’s investigation took a sharp and notable turn on Tuesday, as news broke that it had subpoenaed the FBI and the Justice Department for information relating to the infamous Trump “dossier.”

     

    That dossier, whose allegations appear to have been fabricated, was commissioned by the opposition-research firm Fusion GPS and then developed by a former British spook named Christopher Steele. ..

     

    The Washington Post in February reported that Mr. Steele “was familiar” to the FBI, since he’d worked for the bureau before. The newspaper said Mr. Steele had reached out to a “friend” at the FBI about his Trump work as far back as July 2016. The Post even reported that Mr. Steele “reached an agreement with the FBI a few weeks before the election for the bureau to pay him to continue his work.”

    Oddly, even though CNN is the source of this week’s news, the media outlet seems less interested in President Obama’s knowledge of the surveillance activities that occurred on his watch and against his political adversaries than in how President Trump has described them.

    CNN’s scoop doesn’t even mention Mr. Obama except in the context of Mr. Trump’s accusations of wiretapping against the former president that appeared on Twitter in March. CNN has followed up with another story saying that Mr. Trump’s accusations have still not been proven.

    That’s true, although Mr. Trump’s argument may be getting stronger. And whatever Donald Trump’s tweets say, Americans deserve to know how our government came to spy on people associated with the presidential campaign of the party out of power.

  • Fed’s Massive QE is Ending – Here Comes the Boom! By Michael Carino

    The Federal Reserve has manipulated bond prices for the last
    10 years.  Yields in the US and abroad
    are lower now than during the Great Depression – a period in time that could
    justify such low yields.  For those with
    short memories, bond markets are more expensive than before and right after the
    financial crisis of 2008.  Longer dated
    yields are at least 300 basis points richer than typical when inflation is
    running around 2% as it is today.  Yes,
    the bond market in the US and globally are the most overpriced ever.  We are now on the precipice of the catalyst
    for the greatest bond market trade unwind ever – the end of the Fed’s quantitative
    easing program.

    I have heard all the arguments for why yields are so
    low.  Inflation is low, growth is slow,
    the Fed is raising rates or lowering rates, buying bonds or selling bonds and a
    plethora of the sky is falling fodder is credited for reasons to buy or hold
    onto current positions in the bond market. 
    You can backfill this story any way you like.  The truth is that the bond market has been
    manipulated by the Federal Reserve lowering the Fed Funds rates to zero, buying
    5 trillion of bonds and giving forward guidance that it is safe to come along
    on the Fed induced bond buying binge. 
    The Fed’s commitment that they would not take the punch bowl away from
    the party had definitely contributed to the bond buying bonanza.

    Party Over!  The Fed
    has been warning the markets that the party has come to an end, Fed Funds will
    keep going higher and their portfolio will be rolling off and reduced.  Even though it’s last call, many participants
    are lining up to load up on drinks, hoping the lights to the bar stay on a
    little longer.  Long term bond yields
    have been manipulated by some of the largest bond trading firms during low
    volume periods pushing yields back down to lows seen only during depressions or
    catastrophes.  These market distorting
    strategies are masked by the Fed’s market distorting strategies.  Even though short term rates are pinned near
    the Fed Funds rate, long term rates have been manipulated to where the yield
    curve is rather flat.  You pick up very
    little yield to compensate for the embedded duration risk, or price risk from
    rising interest rates as you look out the interest rate curve.

    As the Fed continues to raise rates and now unwinds their
    massive bond purchases, the historically low bond yields leave the market is in
    a tenuous position.  Any day, and for any
    reason, the bond market can experience parabolic moves higher in yield.  As volatility increases, more bond managers
    will evacuate the market place that has limited yield to compensate for the
    volatility risk.  Cash is now a viable
    alternative and there is only a minimal yield give up with none of the risks in
    longer dated bonds.

    To be honestly blunt, investors are taking massive amounts
    of risk in the bond market – consciously or unconsciously.  Yes, some of the biggest risks with little
    compensation.  We have learned nothing
    since the 2008 bond market meltdown.  And
    now we are at lower yields and higher prices since then.  Worse, the bond market has almost doubled in
    the last 10 years.  I have to repeat
    myself again.  Doubled in the last 10
    years!!!   Lower yields in a market that
    is twice as large and we still think this is going to end well?

    The Fed has fostered and encouraged the current bond market
    situation.  They know their departure
    from the market will be disruptive and have been trying to set the market up
    for this for some time.  Instead of
    positioning accordingly, large participants have been high volume trading the
    markets at the detriment to those that have tried to prepare for this next
    chapter.  This leaves the market poorly
    positioned for the Fed’s withdrawal of market support.

    The bond market has changed greatly from that of a decade
    ago and there are a few large balance sheets that hold significantly large
    positions.  This distribution in the bond
    market makes it impossible for the largest holders to ever sell their
    positions.  Any attempt to sell (to who?)
    and yields would shoot higher.  The best
    they can do is to keep providing liquidity, supporting markets at these most
    expensive levels and hope some event comes along to bluff the market into
    holding these levels until they retire or sell their firms.

    So what should the markets expect?  I was vocally warning anyone who would listen
    in 2006 and 2007 that the risks built in the system would be catastrophic when
    they unwound.  I continue to ring the
    alarms now.  After 10 years of driving
    and pinning yields to ultimate lows and the fundamentals significantly divergent
    from the market, market participants are unprepared for the end of the Fed’s QE
    program.

    With the end of QE and the largest buyer of Treasuries non-existent,
    volatility will increase.  Yields cannot
    be justified when volatility increases and selling in the bond market will
    begin.  Money will move to cash and
    redemptions submitted to bond funds and other fixed income hedge funds.  But yields will move higher before the bond
    fund redemptions are paid leaving larger losses and more panicked investors.  Higher bond yields will not be met with the
    buy the dips attitude.  Rather, selling
    will beget selling, liquidity will disappear and yields will start to gap
    higher.  Funds that knew nothing except
    inflows will, unfortunately, need to limit redemptions and gate their
    investors.  As volatility increases and
    liquidity decreases, the markets will crescendo into a financial debacle that
    will only end when a large or a couple of large and popular funds that have
    outperformed over the past 10 years have to close down.  This will alleviate selling, but more
    importantly, reprice the bond markets to a yield level that compensates for
    risks and starts to attract sound investors.

    This may seem like a dire prediction but it’s not.  This is part of any normal market process
    where prices go up and down.  The
    unfortunate result of 10 years of Fed market manipulation is that many bond
    market managers are clueless as to how normal markets operate.  Some traders were 10 years old during the last
    bond market debacle!  What worked for the
    last 10 years will not work for the next 10. 
    As the Fed turns off the lights and locks up the bar, don’t find yourself
    stuck inside looking for a way out.  

     

    by Michael Carino, Greenwich Endeavors, 9/19/17

     

    Michael Carino is the CEO of Greenwich Endeavors and has
    been a fund manager and owner for more than 20 years.  He has positions that benefit from a
    normalized bond market and higher yields.  

  • Full Preview Of Tomorrow's "Historic" FOMC Meeting

    It is virtually guaranteed that tomorrow the FOMC will make history by officially announcing the Fed’s plan to begin shrinking its balance sheet through the gradual phasing out of bond reinvestments, which however in a world in which other central banks continue to pump $125 billion per month, will hardly by noticed by markets at least in the beginning.

     

    So aside from the start of balance sheet renormalization what else should traders expect tomorrow? Earlier today, we showed a cheat sheet from ING that broke down the various USD bullish and bearish permutations of how Yellen could still surprise the market, including the Fed’s signalling on policy rates, economic projections, a shift in the “dots”, comments on asset prices and, last but not least, whether Yellen will stay or leave when her term expires in Feb 2018.

     

    * * *

    For those seeking a more in-depth preview, here courtesy of RanSquawk, is the full “historic” September 20 FOMC Preview.

    • FOMC likely to maintain rates between 1.00-1.25%; there will be focus on whether it flattens the rate hike trajectory
    • The formal announcement of balance sheet reduction is expected; it’s unclear what size the Fed wants to return it to
    • Growth and unemployment projections unlikely to see major changes; inflation may be trimmed again

    RATES

    • Money markets price a very slim chance that the FOMC will hike rates this week, with an overwhelming 98.6% implied probability that the Federal Funds Rate target will remain between 1.00% to 1.25%. Looking ahead, markets now assign a 58% chance that rates will be lifted again in 2017.
    • Federal Funds futures currently price in just two more hikes over the Fed’s current forecast horizon; the FOMC’s June forecasts pencilled in seven rate rises over that timeframe. Note, this week’s forecast will extend the horizon out to 2020.
    • Given the cautious tone of comments from FOMC participants in recent weeks, it will be interesting to see whether the central bank lowers its trajectory for the rate path down, in line with the market’s view. However, analysts at Barclays do not expect a major revision to the median view of the rate profile, but sees the average falling: “We expect the median policy path to remain unchanged, but the average policy path should decline. We believe the average funds rate will decline by 15-25bp across the forecast horizon, and we believe as many as seven participants may signal that they prefer no further rate hikes this year (against nine participants who view one or more as appropriate).”

    BALANCE SHEET

    • It is an almost a forgone conclusion that the FOMC will formally announce the start of its balance sheet programme; indeed, ‘several’ were ready to make the announcement in July. The Fed has also been given some leeway not that the debt ceiling has been extended until December.
    • In June, the FOMC suggested a plan where it will allow $6bln of maturing Treasuries and $4bln of maturing MBS to roll-off per month for a three-month period; that amount would then be raised to $12bln for Treasuries and $8bln for MBS for another three months, and after a year, redemptions would be capped at $30bln for Treasuries and $20bln for MBS per month.
    • The plan ensures the Fed wouldn’t have to outright sell any of its holdings immediately, which would cause a market reaction. In fact, Fed commentary suggests that the central bank wants to avoid any “shock and awe”; Loretta Mester (non-voter) said the intention is to set the policy, then “forget it”, suggesting that balance sheet would not be an active policy tool.
    • Some questions remain unanswered; for instance, what size the FOMC is ultimately seeking to cut the balance sheet to. It is currently around $4.5trln; pre-crisis, it was around $800mln, but it is unlikely that the Fed intends to bring it down to that size. It seems as though the FOMC is still undecided: William Dudley (NY Fed, permanent voter) sees the balance sheet falling to between $2.4trln and $3.5trln – a wide range, but there doesn’t seem to be any firm consensus as yet.

    STAFF ECONOMIC PROJECTIONS

    • The Fed meets amid an improving tone in US economic data: The labour market has been ticking along nicely for some time, with the rate of joblessness beneath the Fed’s estimate of NAIRU. The second estimate of growth in Q2 was revised higher to 3.0%, well above the Fed’s longer-term view between 1.8% and 2.0%. Inflation has been the Achilles heel, but there are some signs of improvement here too. Recent CPI data showed upside surprises to headline and core rates; but the Fed’s preferred measure – core personal consumption expenditures – lingers at the lowest since Q4 2015 at (1.4% vs Fed’s June forecast of 1.7% in 2017); additionally, wage growth continues to disappoint, which may give the Fed ammunition to remain dovish.
    • Analysts at Oxford Economics say “a key focus will be on the FOMC’s view of recent inflation readings and its degree of conviction about whether inflation will hit the 2% target over the medium-term,” adding “this in turn will underpin the committee’s decision about raising rates further this year and the pace of rate increases next year.” FOMC Chair Janet Yellen has previously attributed the weak inflation to temporary factors and called for patience. Many will look out for commentary on whether the Committee has reached a consensus on the extent to which low inflation is transitory, and how much patience should be extended. The likes of Neel Kashkari (voter, dovish) expressed outright concerns on inflation, whereas centrists like William Dudley see a return to target in the medium-term; others, like Robert Kaplan (voter) want to see more evidence before committing to a tighter monetary policy path.
    • It is worth noting that the Fed’s forecast horizon will be extended out to 2020, and the FOMC’s June forecasts and the current market view are generally in line, with the exception of inflation, suggesting growth and unemployment forecasts will be little changed, though its short-term inflation views may be cut.

    PRESS CONFERENCE WITH CHAIR YELLEN

    • Chair Janet Yellen will likely adopt her usual balanced approach in her press conference, according to SGH Macro Advisors, to ensure that the FOMC still has the option of a rate hike in 2017. “She will certainly give voice to dovish concerns over the persistence in low inflation and the possibility of a new inflation dynamic emerging,” SGH says, “but on balance, we still expect her to modestly tilt her remarks to a base rate path that would warrant a possible third-rate hike in December.”
    • In addition to inflation, the Fed’s forecasts, and the immediacy of near-term rates hikes, Yellen may also be quizzed on FOMC personnel following the early resignation of Stanley Fischer. Tradition dictates that outgoing Governors do not usually attend the last meeting of their term; however, the Fed has confirmed that Fischer will be in attendance, though it is unclear whether he will be submitting economic forecasts.
    • The upshot of Fischer’s resignation means that there would be four vacancies on the Fed’s Board of Governors; but additionally, there remains doubt around Chair Yellen’s own position when her term expires next year, and on top of that, the position of President of the Richmond Fed (which will have a vote in 2018) remains unfilled.

    * * *

    Finally, here are select sellside research takes on what to expect tomorrow:

    • Barclays: We believe the Fed will begin balance sheet normalization as described in the June 2017 Addendum to the Committee’s Policy Normalization Principles and Plans. Beyond this, the committee will likely engage in extensive discussions about how much the underlying trend rate of inflation has slowed. We do not believe the committee will reach consensus on the extent to which slower inflation is transitory and, in turn, how much “patience” is needed before proceeding with further policy rate normalization or whether it is worth the risk to financial stability to run the domestic economy hotter. Yet, we believe some members will reflect their view that some of the slowing in inflation will be persistent and mark down modestly their inflation forecast for 2018. Although we do not expect the median policy rate path to change, we do expect the average federal funds rate projection to decline.
    • Credit Suisse: We expect the Fed to keep the fed funds rate unchanged and to begin reducing the size of their balance sheet. We expect an announcement in line with their June policy normalization plan which stated that reinvestments are ended up to a gradually-increasing cap. The caps are likely to begin at a modest $10bn per month, but are scheduled to rise every quarter before levelling off at $50bn. Aside from the balance sheet reduction, we expect a dovish tone from the September meeting.
    • Goldman Sachs: We expect the FOMC to officially announce next week that balance sheet runoff will begin in October. As the Fed has already communicated extensively about its plan for a gradual and predictable runoff, we expect markets to focus instead on the outlook for the federal funds rate. The key question is whether the committee’s expectations for the federal funds rate have declined in light of the surprising deceleration in the inflation data since the start of the year. Several Fed officials have expressed reduced confidence in the view that the recent decline is a blip and that inflation will reaccelerate. Despite this week’s stronger-than-expected CPI report, Fed officials will still be looking at year-over-year core PCE and CPI inflation rates that are three tenths and five tenths lower, respectively, than in March. We therefore look for lower core inflation in the Summary of Economic Projections (SEP) and expect the “dot plot” to show a decline in the average projected funds rate path. While risks are tilted to the downside, we still expect the median projection to continue to show a third rate hike this year, 3 hikes in 2018 and a longer-run funds rate at 3%. Ultimately, there are three reasons why we expect only minor dovish changes. First, several influential FOMC members have highlighted that there is not yet enough data in hand to abandon the view that the economy is close to full employment and that diminishing spare capacity will gradually push inflation back up to the target. Second, growth momentum has remained very firm and while hurricanes will make the activity data noisier in the near term, they are unlikely to derail firm underlying trend growth. Third, financial conditions have continued to ease even as the FOMC moved to a path of quarterly tightening last December.
    • ING: We think this may be one of the more difficult meetings and press conferences for Chair Yellen to navigate, not least because of the growing dichotomy within the FOMC over the appropriate near-term policy approach. Our base case is for the doves to prevail, with a lower conviction over the pace and extent of future policy tightening visible in the Fed’s dot plot. While the median 2017 dot is still set to tentatively pencil in a Dec rate hike, we expect to see more members calling for a pause for the remainder of the year; anything more than five would suggest that hopes of a Dec hike stand on a fragile footing. More telling of a dovish shift would be if the 2018 dot also moves lower; here we require five or more members to downgrade their views over future policy hikes, a scenario that cannot be ruled out given the softer US inflation dynamics. What is highly likely is that we’ll see the 2019 and longer-run dots moving lower – with Fed officials acknowledging that a 2% handle for the terminal Fed funds rate is more realistic in the prevailing US economic environment.
    • Morgan Stanley: Our US economists expect the Fed to announce balance sheet normalization at its September meeting. They also expect the median dots to remain as they were in June, with the Fed adding a final rate hike in 2020 (see FOMC Preview: Auto Pilot). In our view, the risks to this outcome are that the 2018 median dot falls to 1.875% from 2.125% and the longer-run median dot falls to 2.75% from 3.00%. To assess the risks, we constructed the September 2017 dot-plot scenario in Exhibit 4. First, we attempted to match up dots in 2017 with dots in 2018. This allows us to create the following scenarios we felt were reasonable. We assume: 2 more FOMC participants pencil in no further hikes in 2017 and decrease the # of subsequent hikes in 2018 to 2from 3; 2 participants keep the third hike in 2017, but decrease the # of subsequent hikes in 2018 to 2 from 3;and 2 participants decrease the # of hikes in 2017 to 3 from 4, but keep 4 hikes in 2018. Given we assumed only 2 more participants join the “no more hikes in 2017” camp, the 2017 median dot remains at 1.375%. However, given our other assumptions, half of the Committee ends up with a 2018 dot below 2.00% and half ends up with a dot above 2.00% – leaving the median between 1.875 and 2.125% versus its 2.125% position in June. It is possible that Randal Quarles is confirmed by the Senate and sworn in before the meeting, thereby allowing a 17th dot to be added. But, at this point, the Senate has not scheduled his confirmation hearing. As a result of our scenario analysis, we think there is a reasonable risk that the 2018 median dot falls by 25bp,even though it’s not our base case.

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Today’s News 19th September 2017

  • Scientists Say Italian Supervolcano Is "Becoming More Dangerous" As Magma Builds Beneath It

    After the long-dormant supervolcano Campi Flegrei awakened late last year, a team of scientists that has pinpointed the now-active volcano's magma source says a potentially devastating eruption could be just around the corner.

    Campi Flegrei is a volcanic caldera to the west of Naples that last erupted in the sixteenth century. It has been mostly quiet since then, with the exception of a few small tremors in the 1980s. Seismographic data from those rumbles allowed scientists to pinpoint the source of the magma that flooded into Campi Flegrei's chamber and caldera, according to United Press International. The results are unequivocal: An analysis of the supervolcano's hot zone suggests Campi Flegrei could be nearing an eruption.

    "What this means in terms of the scale of any future eruption we cannot say, but there is no doubt that the volcano is becoming more dangerous," De Siena said.

     

    "The big question we have to answer now is if it is a big layer of magma that is rising to the surface, or something less worrying which could find its way to the surface out at sea."

    Researchers liken the volcano's hot zone to a boiling pot of soup. Over the last several years, the volcano has gotten considerably hotter.

    The Campi Flegrei "hot zone"

    Four years ago, scientists warned any eruption could kill millions living near or on top of the volcano.

    "These areas can give rise to the only eruptions that can have global catastrophic effects comparable to major meteorite impacts," said Giuseppe De Natale, head of a project to monitor the volcano's activity.

    Now, based on an assessment of the current flows, scientists are worried that a potentially deadly eruption could happen close to a population center like the city of Naples.

    "During the last 30 years the behaviour of the volcano has changed, with everything becoming hotter due to fluids permeating the entire caldera," Dr De Siena explained.

     

    "Whatever produced the activity under Pozzuoli in the 1980s has migrated somewhere else, so the danger doesn't just lie in the same spot, it could now be much nearer to Naples which is more densely populated.

     

    "This means that the risk from the caldera is no longer just in the centre, but has migrated. Indeed, you can now characterise Campi Flegrei as being like a boiling pot of soup beneath the surface.

     

    "What this means in terms of the scale of any future eruption we cannot say, but there is no doubt that the volcano is becoming more dangerous.

    The study, which Phys.org reports provides a benchmark that could help determine the timing of future eruptions, was led by Dr. Luca De Siena at the University of Aberdeen in conjunction with the INGV Osservatorio Vesuviano, the RISSC lab of the University of Naples, and the University of Texas at Austin.

    Still, scientists have some questions.

    "One question that has puzzled scientists is where magma is located beneath the caldera, and our study provides the first evidence of a hot zone under the city of Pozzuoli that extends into the sea at a depth of 4 km," Dr De Siena said.

     

    "While this is the most probable location of a small batch of magma, it could also be the heated fluid-filled top of a wider magma chamber, located even deeper."

    Dr De Siena's study suggests that magma was prevented from rising to the surface in the 1980s by the presence of a one-to-two-kilometer-deep rock formation that blocked its path, forcing it to release energy along a different route. While the implications of this are still not fully understood, the relatively low amount of seismic activity in the area since the 1980s suggests that pressure is building within the caldera, raising the risk of an eruption.

    Just days ago, scientists warned that Mount Paektu, a long dormant supervolcano in North Korea, could be roused to a potentially humanity-threatening eruption if the isolated nation continues to conduct nuclear tests at its Punggye-ri nuclear test site.

    Meanwhile, US government officials are monitoring a similar situation unfolding at the Yellowstone Caldera in Wyoming, another “supervolcano.” An eruption at Yellowstone could plunge the Earth into a volcanic winter, according to scientists at NASA, who’ve devised an incredibly risky plan to save the US from the volcano.

    Of course, some scientists say NASA’s plan risks triggering the eruption it's trying to prevent.

    NASA believes the most viable solution could be to drill up to 10km down into the super volcano and pump down water at high pressure. The circulating water would return at a temperature of around 350C (662F), thus slowly day by day extracting heat from the volcano. And while such a project would come at an estimated cost of around $3.46 billion, it comes with an enticing catch which could convince politicians (taxpayers) to make the investment.

    Of course, drilling into a supervolcano comes with its own risks, like the eruption that scientists are desperate to prevent.
     

  • Flags, Symbols, And Statues Resurgent As Globalism Declines

    Authored by Wayne Madsen via The Strategic Culture Foundation,

    As the forces of globalism retreat after numerous defeats in the United States, the United Kingdom, Turkey, and other nations, there is a resurgent popularity in national, historical, and cultural symbols. These include flags, statues of forbearers, place names, language, and, in fact, anything that distinguishes one national or sub-national group from others. The negative reactions to cultural and religious threats brought about by the manifestations of globalism – mass movement of refugees, dictates from supranational organizations like the European Union and the United Nations, and the loss of financial independence – should have been expected by the globalists. Caught up in their own self-importance and hubris, the globalists are now debasing the forces of national, religious, and cultural identity as threats to the “world order.”

    The most egregious examples of globalist pushback against aspirant nationhood and the symbols of national identity are Catalonia and Kurdistan.

    Two plebiscites on independence, a September 25, 2017 referendum on the Kurdistan Regional Government declaring independence from Iraq and an October 1 referendum on Catalonia beginning the process of breaking away from the Kingdom of Spain, are expected to achieve “yes” votes. Neither plebiscite is binding, a fact that will result in both votes being ignored by the mother countries.

    Iraq, the United States, Turkey, and Iran have warned Kurdish Iraq against holding the independence referendum. The United States is prepared to double-cross its erstwhile Kurdish allies for a fourth time. President Woodrow Wilson, who has been cited as the “first neoconservative or neocon, reneged on Kurdish independence during the post-World War I Versailles peace conference. Henry Kissinger double-crossed Kurdish leader Mustafa Barzani in 1975 with the Algiers Accord between Iraq and Iran, a perfidious act that forced 100,000 of Barzani’s Kurdish forces into exile in Iran. George H. W. Bush promised the Kurds help after Operation Desert Storm in 1991 if they revolted against Saddam Hussein’s government. US military aid was not forthcoming and the Kurds were forced into a small sliver of northern Iraq, over which a US “no-fly zone” was imposed. Now, Donald Trump’s administration has warned the Kurds not to even think about independence, even though the Kurdish peshmerga forces helped the US and its allies to drive the Islamic State out of Kirkuk and the rest of northern Iraq.

    In Spain, the conservative prime minister is trying to emulate the Spanish fascist dictator Generalissimo Francisco Franco in making threats against Catalonia’s independence wishes.

    In response to the Catalan Parliament's vote to hold an October 1 referendum on Catalonia's independence from Spain, Prime Minister Mariano Rajoy and his People's Party government have promised to round up the pro-independence members of the Catalan government, as well as pro-independence legislators of the parliament and mayors, and criminally charge them with sedition.

    Rajoy's stance should be no surprise since his party, the Popular Party, is the political heir of Franco's Falangist party. Franco's version of the Nazi Gestapo, the Guardia Civil, brutally suppressed Catalan and Basque identity. Particular targets for suppression, according to Falangist doctrine, were "anti-Spanish activists," "Reds," "separatists," "liberals," "Jews," "Freemasons," and "judeomarxistas."

    The Falange was eventually replaced by the National Movement, which continued many of Franco's policies, including repression of the Catalan and Basque culture, autonomy, and language.

    The Francoist People's Alliance, founded in 1989 by Franco's Interior Minister, Manuel Fraga Iribarne, eventually morphed into the People's Party of Rajoy. The People's Party considers itself "Christian Democratic," but it receives support from Franco's fascist Roman Catholic order, the Opus Dei.

    Rajoy is using a decision by Spain's Constitutional Court, suspending the independence referendum in Catalonia, as justification for his threats against the region. Apparently, the neo-fascist government of Spain has been trawling Twitter to collect the names of Catalan mayors who have posted photographs of themselves and messages of support for the “Junts pel Si” (Together for Yes) pro-independence coalition. The mayors, along with members of parliament and the government in Barcelona, are being placed on a Guardia Civil list targeting them with arrest and incarceration if the referendum is carried out.

    Rajoy has also warned officials of local municipal councils that their cooperation in holding a referendum vote will be considered an act of sedition and that they, too, face arrest and detention.

    Rajoy's channeling of Franco will only solidify anti-Spanish feelings in Catalonia, even among those not keen on independence. The iron boot of Rajoy and the People's Party in Catalonia will only boost support for Catalan independence from those mildly opposed to it or neutral. If Catalonia's regional and local government leaders are paraded off to prisons, the peaceful independence movement in the region could easily turn violent. There is also widespread support for Catalan independence in the separatist Basque region, where parades have been held in support of the Catalan cause. In August, 3000 pro-Catalan independence Basques marched in the Basque city of San Sebastian. If Rajoy carries through with his threat against Catalonia, the Basque region will also see it as a threat to them and join in a renewed campaign of violence against the Madrid neo-fascists. The Basque secessionist terrorist group ETA agreed to disarm in 2011 but it has not turned in all its weapons.

    The Basque party EH Bildu has already submitted a bill in the regional Basque parliament that is a copy of the Catalan independence referendum bill that passed the parliament in Barcelona.

    People around the world are rejecting the notion that states, harboring more than one nation, ethnic group, or tribal entity, should be recognized by globalist institutions like the EU and UN as representing all the constituent parts.

    Currently, the Republic of Macedonia is negotiating with Greece, the EU, and NATO on membership under a nation-state name that suits Greece. Greece does not recognize Macedonia by that name because it believes Macedonia harbors irredentist designs on Greek Macedonia. Greece insists the country use the provisional name of FYROM, which stands for the “Former Yugoslav Republic of Macedonia.” Macedonian nationalists scoff at such a name, likening it to being forced to use the fictional Klingon language of “Star Trek.”

    As a result of the United Kingdom’s exit from the EU, Scotland, Wales, and Northern Ireland are demanding that London grant them the right to maintain their own economic and other links with the Eurocrats in Brussels. Scotland may hold a second independence referendum with or without the blessing of London. The Welsh Assembly in Cardiff is sounding more and more like the Scottish Parliament in demanding a separate deal with the EU for Wales. Even in the heart of the EU bureaucracy – Belgium – Flanders and Wallonia show no signs of abandoning their march toward independence, leaving Brussels as its own independent city-state hosting the headquarters of the EU, NATO, and Godiva Chocolatier. Rather than the Belgian flag, one is more likely to find Flemish flags flying from poles in Antwerp and Walloon flags adorning buildings in Liège.

    Around the world, statues of historical figures are being defaced and removed by contrarian groups who bear ethnic or political grudges. They include Confederate General Robert E. Lee throughout the United States, Captain James Cook in Australia, Father Junipero Serra in California, Christopher Columbus in New York, King Kamehameha in Hawaii, Hugo Chavez in Venezuela, and Marthinus Pretorius and Paul Kruger in South Africa. This all represents the trend toward dissolution of the nation-state.

    Nation-state flags, monuments of past political and religious figures, and other nation-state symbols are not only being questioned but, in some cases, ignored or cast aside completely. The world is “going tribal” and there is little the governing globalists and elites can do about it. They brought this situation upon themselves with their aloofness and ignorance. The UN General Assembly will soon welcome 193-member state leaders to its plenary session in New York. The UN may do well to plan for future sessions at which 300 or more member-state leaders, from Åland to Zanzibar and Baltistan to Mthwakazi, converge on New York.

  • "As Much Gold As You Can Eat…"

    Over six years ago, former-Goldmanite and head of The New York Fed Bull Dudley proudly proclaimed how the price of iPads was dropping when confronted by an unruly audience demanding to know why their food costs were soaring, prompting guffaws and widespread murmuring from the audience, with one audience member calling the comment "tone deaf," and another quipping "I can't eat an iPad."

    Dudley's infamous ignorance will never be forgotten and as The Fed continues to pump the prices of stocks up (which you also cannot eat) and the price of putting a roof over your head is soaring (also non-edible), Martin Armstrong put us straight on one potential inflation hedge… that it turns out you can eat

    I am working from the Abu Dhabi office this week meeting with clients in town.

    I thought I would post something unusual.

    In the Emirates Palace, you can have a cup of coffee with gold on top you can drink.

    You can also order ice cream made from camel milk top with real gold you can eat.

    Interesting use of gold.

  • Freedom Is A Myth: We Are All Prisoners Of The Police State's Panopticon Village

    Authored by John Whitehead via The Rutherford Institute,

    "We're run by the Pentagon, we're run by Madison Avenue, we're run by television, and as long as we accept those things and don't revolt we'll have to go along with the stream to the eventual avalanche…. As long as we go out and buy stuff, we're at their mercy… We all live in a little Village. Your Village may be different from other people's Villages, but we are all prisoners.

    – Patrick McGoohan

    First broadcast in Great Britain 50 years ago, The Prisoner a dystopian television series described as “James Bond meets George Orwell filtered through Franz Kafka” – confronted societal themes that are still relevant today: the rise of a police state, the freedom of the individual, round-the-clock surveillance, the corruption of government, totalitarianism, weaponization, group think, mass marketing, and the tendency of humankind to meekly accept their lot in life as a prisoner in a prison of their own making.

    Perhaps the best visual debate ever on individuality and freedom, The Prisoner (17 episodes in all) centers around a British secret agent who abruptly resigns only to find himself imprisoned, monitored by militarized drones, and interrogated in a mysterious, self-contained, cosmopolitan, seemingly tranquil retirement community known only as the Village.

    The Village is a virtual prison disguised as a seaside paradise: its inhabitants have no true freedom, they cannot leave the Village, they are under constant surveillance, their movements are tracked by surveillance drones, and they are stripped of their individuality and identified only by numbers.

    The series’ protagonist, played by Patrick McGoohan, is Number Six.

    “I am not a number. I am a free man,” was the mantra chanted on each episode of The Prisoner, which was largely written and directed by McGoohan.

    In the opening episode (“The Arrival”), Number Six is told that he is in The Village because information stored “inside” his head has made him too valuable to be allowed to roam free “outside.”

    Throughout the series, Number Six is subjected to interrogation tactics, torture, hallucinogenic drugs, identity theft, mind control, dream manipulation, and various forms of social indoctrination and physical coercion in order to “persuade” him to comply, give up, give in and subjugate himself to the will of the powers-that-be.

    Number Six refuses to comply.

    In every episode, Number Six resists the Village’s indoctrination methods, struggles to maintain his own identity, and attempts to escape his captors. “I will not make any deals with you,” he pointedly remarks. “I’ve resigned. I will not be pushed, filed, stamped, indexed, debriefed or numbered. My life is my own.”

    Yet no matter how far Number Six manages to get in his efforts to escape, it’s never far enough.

    Watched by surveillance cameras and other devices, Number Six’s getaways are continuously thwarted by ominous white balloon-like spheres known as “rovers.” Still, he refuses to give up. “Unlike me,” he says to his fellow prisoners, “many of you have accepted the situation of your imprisonment, and will die here like rotten cabbages.”

    Number Six’s escapes become a surreal exercise in futility, each episode an unfunny, unsettling Groundhog’s Day that builds to the same frustrating denouement: there is no escape.

    The series is a chilling lesson about how difficult it is to gain one’s freedom in a society in which prison walls are disguised within the trappings of technological and scientific progress, national security and so-called democracy.

    As Thill noted when McGoohan died in 2009,The Prisoner was an allegory of the individual, aiming to find peace and freedom in a dystopia masquerading as a utopia.”

    The Prisoner’s Village is also an apt allegory for the American Police State: it gives the illusion of freedom while functioning all the while like a prison: controlled, watchful, inflexible, punitive, deadly and inescapable.

    The American Police State, much like The Prisoner’s Village, is a metaphorical panopticon, a circular prison in which the inmates are monitored by a single watchman situated in a central tower. Because the inmates cannot see the watchman, they are unable to tell whether or not they are being watched at any given time and must proceed under the assumption that they are always being watched.

    Eighteenth century social theorist Jeremy Bentham’s panopticon has become a model for the modern surveillance state in which the populace is constantly being watched, controlled and managed by the powers-that-be and funding its existence.

    Nowhere to run and nowhere to hide: this is the new mantra of the architects of the police state and their corporate collaborators (Facebook, Amazon, Netflix, Google, Instagram, etc.).

    We now find ourselves in the unenviable position of being monitored, managed and controlled by our technology, which answers not to us but to our government and corporate rulers.

    Consider that on any given day, the average American going about his daily business will be monitored, surveilled, spied on and tracked in more than 20 different ways, by both government and corporate eyes and ears.

    This is the electronic concentration camp—the panopticon prison—the Village—in which we are now caged.

    It is a prison from which there will be no escape if the government gets it way.

    Even now, the Trump Administration is working to make some of the National Security Agency’s vast spying powers permanent.

    In fact, Attorney General Jeff Sessions is pushing for Congress to permanently renew Section 702 of the Foreign Intelligence Surveillance Act, which allows government snoops to warrantlessly comb through and harvest vast quantities of our communications.

    And just like that, we’re back in the Village, our escape plans foiled, our future bleak.

    Except this is no surprise ending, as I make clear in my book Battlefield America: The War on the American People: for those who haven’t been taking the escapist blue pill, who haven’t fallen for the Deep State’s phony rhetoric, who haven’t been lured in by the promise of a political savior, we never stopped being prisoners.

    So how do we break out?

    For starters, wake up. Resist the urge to comply.

    Think for yourself. Be an individual. As McGoohan commented in 1968, “At this moment individuals are being drained of their personalities and being brainwashed into slaves… As long as people feel something, that's the great thing. It's when they are walking around not thinking and not feeling, that's tough. When you get a mob like that, you can turn them into the sort of gang that Hitler had.”

    We have come full circle from Bentham’s Panopticon to McGoohan’s Village to Huxley’s Brave New World.

    You want to be free? Break out of the circle.

  • US Is Sending Another Aircraft Carrier To Korea: Yonhap

    After carrying out bombing drills over the Korean peninsula on Monday following North Korea’s firing of an intermediate-range missile over the Japanese island of Hokkaido, US and South Korean forces are planning to continue their displays of military might early next month, according to a report from Yonhap, the South Korean news agency. However, in a move that is sure to provoke a barrage of threats from North Korea, the US is reportedly sending a nuclear-armed aircraft carrier to the waters off the Korean peninsula, where it will take part in an upcoming round of military drills.

    Earlier this year, the US sent three aircraft carriers to waters near North Korea in an unprecedented show of force. However, it's unclear if any of those carriers are still positioned so closely to the peninsula. Here's the latest map of US naval strike groups, which was compiled by Stratfor using publicly-available information. Deployments considered "sensitive" would not be included on this map.

    As Yonhap reports, the aircraft carrier will participate in a series of naval drills with South Korean forces. Yonhap didn’t reveal the name of the carrier. South Korea and the US will also conduct a “combined missile alert drill” in late September or early October, for which they will be joined by Japan, Yonhap said, citing a source in South Korea’s Ministry of Defense. The US is also expected to once again send B-1B strategic bombers stationed in Guam to Korea later this month in a warning to the North.

    However, given UN Ambassador Nikki Haley’s revelation that the UN Security Council may have reached the limits of its ability to economically pressure the isolated country, it’s understandable that the US would want to signal an escalation in its flexing of military muscle, to show. After all, the US needs to maintain the illusion that “military options” remain on the table. Even though, as former White House Chief Strategist Steve Bannon confirmed in an interview before he was ousted from the West Wing, there aren’t any options available to the US that wouldn’t lead to millions of civilian deaths in Seoul from conventional weapons fire.

    US, Japanese and South Korean officials believe North Korea is “in the final stages” of developing a long-range ballistic missile that would be able to reliably strike the Continental US. The North believes obtaining such a weapon is essential to the regime's survival, but the prospect of a nuclear-armed North Korea – which is already, in a sense, a reality – has horrified the international community.

    According to Yonhap, the South Korean defense ministry expects the North to soon carry out more missile tests, as well as an expected seventh nuclear test.

    To be sure, news of the aircraft carrier being sent to the waters around the Korean peninsula may remind readers of President Donald Trump’s promise to send a strike force of nuclear-armed submarines to the waters of the peninsula earlier this year, only for media reports to confirm that the submarines were, in fact, headed in the other direction.

    Assuming the carrier is, in fact, headed to its reported post, such an act would be interpreted as an unprecedented provocation by Kim Jong Un and his generals, and likely demand a response in kind.

  • America's Slow-Motion Military Coup

    Authored by Stephen Kinzer via The Boston Globe,

    In a democracy, no one should be comforted to hear that generals have imposed discipline on an elected head of state. That was never supposed to happen in the United States. Now it has.

    Among the most enduring political images of the 20th century was the military junta. It was a group of grim-faced officers — usually three — who rose to control a state. The junta would tolerate civilian institutions that agreed to remain subservient, but in the end enforced its own will. As recently as a few decades ago, military juntas ruled important countries including Chile, Argentina, Turkey, and Greece.

    These days the junta system is making a comeback in, of all places, Washington. Ultimate power to shape American foreign and security policy has fallen into the hands of three military men: General James Mattis, the secretary of defense; General John Kelly, President Trump’s chief of staff; and General H.R. McMaster, the national security adviser. They do not put on their ribbons to review military parades or dispatch death squads to kill opponents, as members of old-style juntas did. Yet their emergence reflects a new stage in the erosion of our political norms and the militarization of our foreign policy. Another veil is dropping.

    Given the president’s ignorance of world affairs, the emergence of a military junta in Washington may seem like welcome relief. After all, its three members are mature adults with global experience — unlike Trump and some of the wacky political operatives who surrounded him when he moved into the White House. Already they have exerted a stabilizing influence. Mattis refuses to join the rush to bomb North Korea, Kelly has imposed a measure of order on the White House staff, and McMaster pointedly distanced himself from Trump’s praise for white nationalists after the violence in Charlottesville.

    Being ruled by generals seems preferable to the alternative. It isn’t.

    Military officers, like all of us, are products of their background and environment. The three members of Trump’s junta have 119 years of uniformed service between them. They naturally see the world from a military perspective and conceive military solutions to its problems. That leads toward a distorted set of national priorities, with military “needs” always rated more important than domestic ones.

    Trump has made clear that when he must make foreign policy choices, he will defer to “my generals.” Mattis, the new junta’s strongman, is the former head of Central Command, which directs American wars in the Middle East and Central Asia. Kelly is also an Iraq veteran. McMaster has commanded troops in Iraq and Afghanistan almost without interruption since he led a tank company in the 1991 Gulf War.

    Military commanders are trained to fight wars, not to decide whether fighting makes strategic sense. They may be able to tell Trump how many troops are necessary to sustain our present mission in Afghanistan, for example, but they are not trained either to ask or answer the larger question of whether the mission serves America’s long-term interest. That is properly the job of diplomats. Unlike soldiers, whose job is to kill people and break things, diplomats are trained to negotiate, defuse conflicts, coolly assess national interest and design policies to advance it. Notwithstanding Mattis’s relative restraint on North Korea, all three members of Trump’s junta promote the confrontational approach that has brought protracted war in Afghanistan, Iraq and beyond, while fueling tension in Europe and East Asia.

    Our new junta is different from classic ones like, for example, the “National Council for Peace and Order” that now rules Thailand. First, our junta’s interest is only international relations, not domestic policy. Second, it did not seize power in a coup, but derives its authority from the favor of an elected president. Third and most important, it main goal is not to impose a new order but to enforce an old one.

    Last month, President Trump faced a crucial decision about the future of America’s war in Afghanistan. This was a potential turning point. Four years ago Trump tweeted, “Let’s get out of Afghanistan.” If he had followed that impulse and announced that he was bringing American troops home, the political and military elite in Washington would have been stunned. But junta members swung into action. They persuaded Trump to announce that instead of withdrawing, he would do the opposite: reject “rapid exit” from Afghanistan, increase troop strength, and continue “killing terrorists.”

    It is no great surprise that Trump has been drawn into the foreign policy mainstream; the same happened to President Obama early in his presidency. More ominous is that Trump has turned much of his power over to generals. Worst of all, many Americans find this reassuring. They are so disgusted by the corruption and shortsightedness of our political class that they turn to soldiers as an alternative.

    It is a dangerous temptation.

  • Offshore Yuan Tumbles To 2-Week Lows, Biggest Drop Since Election

    Offshore yuan has now dropped almost 16 handles in the last 8 days since Chinese officials voiced their concerns "about a rallying yuan as exporters come under strain."

    Tonight's tumble pushes the Yuan to its lowest since August for the biggest 8-day drop since the election...

     

    And offers Trump some excuses to be mad at China for 'devaluing' their currency after the dollar dumped for most of the year…

     

    Notably, while Yuan is tumbling, Hong Kong Dollar spiked back toewards the peg…

  • Why Is Google Hiring 1,000 Journalists To Flood Newsrooms Around America?

    So what do you do when you fail to elect your chosen candidate and your former political allies and mainstream media turn against you by painting you not as the ‘progressive’, open-minded, friendly tech company that you used to be but as an evil, racist, Russian-colluding corporate villain intent upon destroying all that is sacred in the world?  Well, you just buy the media, of course.

    As Poynter notes today, after a series of public relations debacles in recent weeks, from the firing of James Damore to news last week that Google’s algos served up some fairly disturbing keywords to potential advertising buyers (e.g. “Why Do Black People Ruin Neighborhoods“), Google is ramping up its media presence with the announcement that the Google News Lab will be working with Report For America (RFA) to hire 1,000 journalists all around the country. 

    Many local newsrooms have been cut to the bone so often that there’s hardly any bone left. But starting early next year, some may get the chance to rebuild, at least by one.

     

    On Monday, a new project was announced at the Google News Lab Summit that aims to place 1,000 journalists in local newsrooms in the next five years. Report For America takes ideas from several existing organizations, including the Peace Corps, Americorps, Teach for America and public media.

     

    Unlike foreign or domestic service programs or public media, however, RFA gets no government funding. But they are calling RFA a national service project. That might make some journalists uncomfortable  – the idea of service and patriotism. But at its most fundamental, local journalism is about protecting democracy, said co-founder Charles Sennott, founder and CEO of the GroundTruth Project.

     

    “I think journalism needs that kind of passion for public service to bring it back and to really address some of the ailments of the heart of journalism,” he said.

     

    Here’s how RFA will work: On one end, emerging journalists will apply to be part of RFA. On the other, newsrooms will apply for a journalist. RFA will pay 50 percent of that journalist’s salary, with the newsroom paying 25 percent and local donors paying the other 25 percent. That reporter will work in the local newsroom for a year, with the opportunity to renew.

    Google

     

    Of course, while the press release above tries to tout the shared financial responsibility of these 1,000 journalists, presumably as a testament to their ‘independence’, it took about 35 seconds to figure out that the primary funder of the journalists’ salaries, RFA, is funded by none other than Google News Lab.

     

    Meanwhile, as a further testament to RFA’s ‘independence, we noticed that their Advisory Board is flooded with reputable, ‘impartial’ news organizations like the New York Times, NPR, CBS, ABC, etc….

     

    That said, as Jeff Bezos found out this morning, you can buy the media outlet but that doesn’t necessarily mean you can buy their loyalty (see: Did WaPo Break The Law When It Disciplined A Writer For This Negative Article On Jeff Bezos?)….

  • PBOC Researcher: China Should Start Its Own Sovereign Digital Currency "As Soon As Possible"

    The past two weeks have been quite a rollercoaster for bitcoin and other cryptocurrencies. In loose chronological order, we have seen:

    In the process Bitcoin went from $4,200 to under $3,000 in just days… and then rocketed back to over $4,000 today as the influence of governments in determining the fate of cryptocurrencies was strongly questioned.

    Meanwhile, as reported yesterday, first India announced it may issue its own bitcoin-like cryptocurrency as legal tender, and now, in a publication of the Chinese central bank, Huang Zhen, a researcher at Central University of Finance and Economics writes that the “the PBOC it should start its own sovereign digital currency as soon as possible” according to a commentary in the PBOC’s own Financial News.

    Here is the key excerpt, roughly translated:

    In order for the Chinese government to prevent and control the risk of virtual currency, it decided to prohibit the issuance of ICO tokens, and stop the trading of cryptocurrencies and other virtual currencies on exchanges, to better protect the interests of China’s financial consumers, and to prevent the spread of currency risk to China’s financial system, safeguard China’s financial security and the stability of important economic initiatives. The sovereign state is still the fundamental player in global politics, and carries with it the characteristics of the world financial system. Cryptocurrencies and other virtual currencies attempt to challenge the sovereign state’s right to issue currency, requiring the nationalization of currency issuance. China has a clear understanding of digital forms of money, and is actively engaging in relevant work. The central bank has set up a research group and a digital money research institute to explore the digitization of sovereign money. After this round of virtual money markets supervision, we expect under the auspices of the Chinese central bank to launch our own sovereign digital currency as soon as possible to help maintain China’s leadership in the development of global digital finance.

    Translation: decentralized cryptocurrencies, in which the money creation process is no longer controlled by the state (as a reminder, cryptos are not a liability to any central bank and are thus not backed by any official government entity), are the enemy and deserve the scorn and condemnation of every spoke of the establishment, from the central banks’ central bank, to commercial banks, to financial newspapers of record, all the way down to brown-nosing wannabe establishment “hanger-on” lackeys. Meanwhile, centralized digital currencies, which are controlled by the state, which can be adjusted and modified anywhere and at any time at a the flick of a switch, and which can be extinguished or multiplied at will during times of NIRP or hyperinflation, are wondrous creations, and China – for one – can’t wait to launch one.

    Or as the BIS explained, left bad, right good.

     

    … or even simpler, the difference between Fedcoin and Bitcoin.

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Today’s News 18th September 2017

  • Which Countries Have The Most Economic Complexity?

    As Visual Capitalist's Jeff Desjardins notes, rvery country has an economy that is unique.

    In some places, such as the United States or Germany, economies are able to produce many different goods and services that get exported around the world. These countries tend to house world-class businesses in sectors like financials, technology, consumer goods, and healthcare, with companies that produce highly specialized goods like automobiles, software, or pharmaceutical products. Ultimately, these are innovative economies that can roll with the punches, creating growth even when prospects are dim.

    In other places, this level of sophistication is just not there. Innovation and knowledge are stunted or non-existent for most industries, and these countries may focus exclusively on one or two goods to pay the bills. Venezuela’s reliance on oil is an obvious example of this, but there are even many Western countries that miss the mark here as well.

    MEASURING ECONOMIC COMPLEXITY

    In 2009, a team at Harvard formalized a measure of economic complexity that compared nations based on the sophistication of their economies. Now known as the Economic Complexity Index (ECI), the exact measurement is complicated, but it essentially uses data on two main things to uncover the underlying level of economic complexity:

    1. Economic Diversity 
    Measures how many different products a country can produce.

     

    2. Economic Ubiquity
    Measures how many countries are able to make those products.

    In other words: if a country produces only a few goods, that economy is not very complex. Further, if a country produces many different products, but they are all simple ones that can be replicated elsewhere, the economy is still not complex. See full details on the project here.

    RANKING THE MOST COMPLEX ECONOMIES

    Here are the most complex economies in order, along with the changing rankings over time:

    As you’ll notice, the most recent set of data is from 2015.

    Topping the list are the economies of Japan (1st), Switzerland (2nd), Germany (3rd), and South Korea (4th). The United States sits in 9th place, and Canada is further down at 33rd.

    Australia, which relies heavily on commodities, ranks notably low for Western countries in 73rd place, where it is sandwiched between Kazakhstan and the Dominican Republic.

    MOVERS AND SHAKERS

    The most recent iteration of the index also highlighted some movers and shakers over the last 10 year period:

    In particular, the crisis in Venezuela has had an effect on economic complexity, eroding any sophistication that existed.

    Meanwhile, Cuba’s economy is also in the decline in terms of sophistication – and with major exports including raw sugar (27%), rolled tobacco (15%), nickel (12%), oil (11%), hard liquor (7%), and crustaceans (4%), it’s not hard to see why.

    On the opposite side of the spectrum, the Philippines is the biggest mover upwards, ascending 28 spots.

    Some African countries are also moving fast up the rankings: Botswana, Malawi, Uganda, and Cameroon each jumped over 20 spots.

  • The Death Of Free Speech Is Imminent: Government Begins Censorship Of Media Through Disingenuous Means

    Authored by Mac Slavo via SHTFplan.com,

    The death of free speech is imminent.

    Anyone with access to a computer and the internet can see that the United States mainstream media is nothing more than a propaganda machine designed to brainwash the masses into a lemming-like agreement with the government.

    And now, it’s oh-so-ironic that the same government that tells the media what to report on in order brainwash the public is seeking to quiet those who disagree and label them as “propaganda.”  Some may call it fake news, others just want a different opinion rather than the left-leaning media hysteria we are accustomed to.

    But now, media outlet RT (Russia Today), founded in Russia will have to register with the United States as “foreign media;” which will forever give it the inaccurate title of “propaganda.”

    This doesn’t apply to merely the Russian version of the news outlet, but the American-run and operated site as well. According to The Hill, in a report on Monday, RT did not name the company that the Department of Justice (DOJ) has compelled to file paperwork under the Foreign Agents Registration Act, but blasted the edict as overreaching.

    “The war the US establishment wages with our journalists is dedicated to all the starry-eyed idealists who still believe in freedom of speech. Those who invented it, have buried it,” Margarita Simonyan, RT’s editor-in-chief, said about the registration.

    Media organizations have been exempted from the law, which is wide-ranging in its disclosure requirements and generally applies to political consultants and those working in lobbying or public relations.

     

    It would be a felony if RT is found to have willfully failed to register as a foreign agent, however.

     

    The registration would not stop the organization from operating, but requires regularly submitted paperwork that lists its sources of foreign government-tied revenue and the contacts it makes in the United States, and it would require any reporting to be labeled as being influenced or financed by the Russian government. –The Hill

    RT has also contracted with Julian Assange, who runs WikiLeaks and is suspected of leaking internal emails from the Democratic National Committee, so the fact that they are being singled out with attempts to silence their reporting is not a big surprise to anyone with functioning neurons.

    RT must be a threat to the political elites and the establishment, or they would be left alone while outlets like CNN brainwash and lie for profit to prop up the wealthy and powerful politicians they will stop at nothing to protect.

  • Ron Paul: Here's The Truth About The War Between The Alt Right And Cultural Marxists

    Despite recently being demonetized by YouTube, possibly for his anti-establishment views and slamming President Trump’s decision to increase troop levels in Afghanistan, former Texas Congressman Ron Paul is back with a video addressing the widening left-right political divide in the US – and the role that the “immoral use” of government force has played in fomenting the US’s present political crisis.

    Claiming that the US is "witnessing a battle between authoritarian groups in America", the prominent libertarian and former politician says that the "Alt-Right" and Cultural Marxists are fighting to control a government that is bankrupt, doesn't follow the Constitution, and controls a foreign empire that is running on fumes.  Ron Paul describes our dilemma.

    “Most Americans agree the violent confrontation between the alt-right and the cultural Marxist is serious, dangerous and getting worse. Understanding economics, cultural differences and the acceptance of authoritarianism is required to find the answer to the crisis.

     

    Rejecting a society based on personal liberty led to the conflict we are now witnessing: replacing authoritarianism with volunteerism must be our goal. The immoral use of government force caused this crisis and expanding it will only increase the hatred between the two sides.

     

    Though there are leaders on both sides promoting violence, large numbers are attracted to the raging culture war for emotional reasons in response to the lies and the incitement by those whose ulterior motive is seeking power, wealth and promoting a dangerous new world order.”

    The biggest problem that Paul sees is that neither the left or the right have made liberty – both economic and political – a priority. In fact, just the opposite is happening. Both the left and the right are moving in a more authoritarian direction.

    Meanwhile, the left’s penchant for labeling all of their ideological opponents as Nazis and racists is helping to sow chaos and division, Paul says.

    “One side has been labeled the alt-right, the other cultural Marxism. The right would like to reduce the debate to the differences between Communism and a populist government that emphasizes caring for Americans over foreigners. The Left would have us believe it's merely a conflict with supporters of racism and injustice and cultural Marxism. Neither side speaks of Liberty. The alt-right is made up of conservatives, populists, and pro white enthusiasts, but all are labeled Nazis and fascists by the left.”

    “Some are just fed up with the false charges and the penalties toward whites by leftist racists and the extremism of political correctness. The vicious labeling of all those who are frustrated and who join with those who are angry as Nazis and racist is only for the purpose of creating chaos. The left demands that all Trump supporters fit into this category. This is the strategy for fomenting race riots and civil war. No doubt Trump makes himself vulnerable to these inaccurate and wild charges by his enemies. The left promotes cultural Marxism and class warfare yet there are fellow travelers who represent typical liberal activists progressives and white haters. Many on the Left generally despise any minority who chooses to be a conservative or libertarian.”

    Leftists, Paul says, are far more cynical than their idealistic proclamations would suggest. White leftists only see minorities as important within the context of their votes, and are quick to treat minorities who identify as conservative or libertarian as traitors to the cause. Meanwhile, neither side understands how liberty leads to economic prosperity for the largest number of citizens.

    “Too many on the left see minorities as only important when their votes can be corralled. From their viewpoint as minorities, well-being success must come only from benefiting from doctrines promoted by forced wealth redistribution by the liberal left it's all about control it's cynical racism.”

    “The philosophic issues that divide us are what matters. Both sides accept the principle of government aggression as a proper tool of government. Neither side understands how true freedom leads to the prosperity that both sides pay lip service to. Neither side understands the shortcomings of deceptive, short-lived prosperity that comes with government deficits and monetary inflation which always ends badly, especially for the people who are supposed to be benefiting by government welfare spending. The ending of such a period of artificial wealth is now apparent and since it's not understood by either side of the current raging conflict, both are proposing different government solutions with sharp disagreements in the blame game.”

    Both the left and the right claim to be the torchbearers of the American experiment. But neither side cares about what the Constitution says, Paul said. Furthermore, both sides banded together to support the Bush doctrine, a willingness to countenance foreign interventionism that persists across the modern political spectrum. Leftists and conservatives take advantage of superficial differences to divide people – the left via identity politics and the right via their racist views.  

    “Both sides claim patriotic loyalty and ownership of the American tradition. Neither group cares about what the Constitution says both sides support America's world Empire its militarism the military industrial complex and horribly dangerous Bush doctrine of pre-emptive war. Neither side condemns our aggression or foreign interventionism. There is extensive support by both for economic planning by government though in different degrees and for different purposes.”

    This means no complaints about protectionism, Federal Reserve power or subsidies to the special interest groups. For our bipartisan leaders, it is only who gets to distribute the loot that matters. Identity politics has taken over in forming alliances. This encourages lying, race preferences demagoguery and inciting hatred since the concept of Liberty is something that applies to individuals rather than special interest groups it is therefore rejected.”

    Liberty is not something that can be distributed according to the various groups that claim victimization and a right to other people's earnings. The tool used especially by the far left is extreme political correctness that regulates speech by claiming hateful motivation by anyone with whom they disagree. These charges are inevitably spread with a broad brush by a complicit media advocating both types of authoritarianism. Left and right purposely divide people by natural and acceptable differences. Pursuing the cause of Liberty unites all those who honestly seek peace and prosperity in distinction from those who resort to authoritarianism. Divisiveness will cause both sides to fail with their half-hearted efforts to force an escalation of violence and the destruction of the middle class.”

    Unfortunately, neither the left or the right has expressed concern with the “deeply flawed” US monetary system, Paul said. The Federal Reserve has been allowed to debase the US dollar through the complicity of both left- and right-leaning politicians. And now, as Paul notes, the bills are all coming due.

    Neither side will face up to the economic reality of a deeply flawed economic system and the pending collapse of the American Empire. Sadly neither side complains about the danger of the Bush Doctrine of preemptive strikes and decisions being made to go to war without congressional approval, the dependency on deficit spending, and the monetary mischief of the Fed. The bills are now coming due and the political chatter associated with the current social strife serves to distract from the philosophical impurities from which we have been infected for many decades. The number of enemies that we have generated by our foreign policy is ignored and the problem made worse by our economic and military meddling around the world our inability to pay our bills and meet our unfunded liabilities will be the limiting factor.”

    In short, the US’s economic and military meddling around the world have led to a reliance on unsustainable deficit spending. This, Paul contends, is the greatest threat facing American society – and neither side is talking about a solution.

    His full video is below.

  • How Rich Chinese Use Visa Fixers To Move To The U.S.

    Authored by Peter Robison, Karen Weise, Wenxin Fan, and Yan Zhang via Bloomberg.com,

    Have a spare $500,000 to invest in an economically distressed American area (that actually isn’t distressed at all)? China’s EB-5 fixers will help you every step of the way

    One summer Saturday in 2013, Vivian Ding took the stage in the grand ballroom of Shanghai’s Shangri-La Hotel to hold forth on a subject in which she was both an expert and an inspiration: emigrating to the U.S.

    Tall, with a commanding presence, Ding is what you might get if Tony Robbins were a Chinese woman capable of both pumping up a cavernous ballroom and filling out an I-526, the Immigrant Petition by Alien Entrepreneur form. Standing next to a 6-foot-high pyramid draped in black velvet, she recounted her own move to America and described the prestigious U.S. high school her daughters attended, thanks to a program that lets immigrants invest in new commercial enterprises in exchange for permanent residency visas—green cards. The cloth was pulled to reveal a model of a Manhattan building: the glassy residences on the Hudson River now known as Via 57 West. Sign a contract that day to lend $500,000, help build a “landmark for mankind”—and take home a prize, Ding implored the audience. That day, the prize was an iPad mini.

    Ellis Liu, a finance manager at a company that runs internet cafes, was in the audience. He didn’t sign up on the spot, but he couldn’t shake the idea. Shanghai had become so smoggy; his young son was constantly sneezing. A few months later, he paid $50,000 in fees to Ding’s company, Qiaowai, and got money from his father to make a $500,000 investment in another New York project, to bring Wi-Fi to the city’s subway system. Then he settled in for the four-year wait before, conditional visa in hand, he’d be able to begin job hunting in Los Angeles.

    Some immigrants pile into rafts or fishing boats to get to America. Others try to slip past the cameras and sensors along the southern border. And many simply pay up via the EB-5 visa program, through which U.S. Citizenship and Immigration Services issues 10,000 conditional green cards annually. By investing $500,000 in areas deemed economically distressed, prospective immigrants can get temporary U.S. residence for themselves and their families. Anyone whose investment creates 10 jobs can apply to become a permanent resident.

    When the program started, in 1990, Congress was squeamish about creating the impression that U.S. visas were for sale, so the law specifies that investors’ money must be at risk. The hope was that the program would jump-start development in moribund rural areas. But it languished unused for years, until developers in New York and other large cities figured out how to get just about any area to qualify as distressed, and the program took off. In recent years more than 90 percent of EB-5 investments have been in cities, and about three-quarters in real estate—often luxury residential properties in Manhattan. Most of the money comes from Chinese investors lined up by fixers such as Ding, who flood WeChat with advertisements and bring over American politicians to attach their names to projects, like Hollywood stars hawking whiskey in Japan.

    Post-Brexit, mid-Trump, borders appear to be tightening, but China’s visa fixers still sell a world of limitless possibilities. They’ve turned some of the world’s most forbidding bureaucratic machinery into a kind of consumer good for China’s rising wealthy class. “No other country in the world comes anywhere near the Chinese market in terms of the network of agents,” says Philadelphia attorney Ron Klasko, who heads the American Immigration Lawyers Association’s EB-5 committee. At least 1,000 migration agents are registered in China, and industry participants say there are many more unofficial ones. “Some operate at an exceedingly high level,” Klasko says, “and some do not.”

    Ding’s company, Qiaowai, inadvertently put the industry under additional scrutiny in May when it hosted an event at the Beijing Ritz-Carlton headlined by Nicole Meyer, the sister of Jared Kushner, President Trump’s son-in-law and a White House adviser. She was seeking investors for One Journal Square, a pair of apartment towers Kushner Cos. is building in Jersey City overlooking Manhattan. Meyer said the project “means a lot to me and my entire family.” At one point in the session, a photo of Trump was displayed on a giant screen. Qiaowai had published advertisements inviting investors to consider the “government-supported” development, which, it claimed, “in a real sense guarantees a permanent green card and the safety of the investment principal.”

    Meyer’s remarks were immediately reported by international news agencies, and a Kushner Cos. spokesman apologized. Qiaowai pulled the advertisements. Federal prosecutors later sought emails and documents from Kushner Cos., which said it “did nothing improper” and is “cooperating with legal requests for information.” Kushner Cos.’ partner in One Journal Square, KABR Group, told CNN in August that the two companies were no longer seeking EB-5 financing for the project.

    The incident was a gift for the significant number of congressional members who’ve grown to despise the EB-5 program. Some can’t get over the idea that it smacks of selling citizenship. Others say the program is dirty and point to a series of scams that have defrauded foreign investors and put U.S. citizens in jail. Still others say the program has enriched middlemen and a few big-city developers while doing almost nothing for the parts of the country it was designed to help. Republican Senator Charles Grassley of Iowa—a state that hasn’t seen an EB-5 project since 2010, according to the Iowa Economic Development Authority—is perhaps the most vocal and vehement critic. He’s asked the Department of Homeland Security, which oversees immigration to the U.S., to investigate “potentially fraudulent statements and misrepresentations” made by Qiaowai in promoting the Kushner buildings.

    Chinese agents have heard this all before. “An agent said to me once, ‘You know, we make a lot of money every time you cry wolf,’ ” recalls Robert Whyte, a Los Angeles banker who advises U.S. developers on EB-5 compliance. “They go out there and sell ‘This is your last opportunity!’ knowing full well it’s not.”

    Mickey Rowley was running the Greater Philadelphia Hotel Association when Pennsylvania Governor Ed Rendell named him, in 2003, deputy secretary for tourism, film, and economic development marketing. A few years into his tenure, someone asked him to look into using EB-5 funding to attract film production to the state. After all, moviemaking, like condo construction, creates jobs. His colleagues shrugged when he told them he was headed to China to round up $60 million from immigrant investors. “They were like, ‘Go get ’em, sport,’ ” he recalls.

    He had the commitments in 12 days. EB-5 loans were eventually used to make the Russell Crowe thriller The Next Three Days and the slasher flick My Bloody Valentine 3D, among others, in Pittsburgh. And Rowley—suddenly regarded as a China expert—returned a half-dozen times to raise money for projects across the state.

    What made it so easy, Rowley says, were the agents. They waited in his hotel lobby each morning. They stood at attention until he took his seat at dinner. And during meals, he says, “no one takes food off the Lazy Susan until I take food off the Lazy Susan. These agents really suck up to you.” They would offer him a car and driver, restaurant reservations, invitations to karaoke. “I never paid for anything,” Rowley says. “I was never alone. I was handled right up to the hotel lobby.”

    He also came to understand the extent to which the agents traded in proximity to power—sometimes physically. One agent sublet space in Pennsylvania’s trade office in Shanghai to impress clients. At presentations, Rowley spoke in English as an agent translated. It could be awkward. Standing before an audience in Wuhan, wearing a tie with a map of Pittsburgh on it, he tried to connect by saying he felt at home because rivers flowed through both cities. But what he’d meant as a little flourish died as the agent held up his own tie, pointed to it, and told the audience something like, “This guy’s tie has a map of Pittsburgh.” As Rowley gave more speeches, he noticed that people listened intently when the governor’s name came up. So he made it part of his talks. “I always made casual mention of a conversation when ‘I was just speaking to our governor the other day about Chinese investment,’ ” he says.

    Agents sometimes exploited the language barrier. Rowley remembers one having a long and animated discussion in Chinese with an audience member. Others jumped in. A Chinese-speaking American told him afterward that the agent had reassured the audience member he didn’t need to worry that he’d been in the Communist Party. Someone told the agent she was mistaken. The U.S. generally denies visas to current and former party members.

    With EB-5 loans, developers pay interest rates of 4 percent to 8 percent a year, compared with commercial alternatives of 10 percent to 18 percent. The developers latched onto the program during the Great Recession and now count on it for a big part of their financing; the value of all EB-5 loans jumped from $240 million in 2007 to $4.4 billion in 2015, according to financial adviser Brandlin & Associates.

    Agents make money on both sides of the deal. In addition to a fee of about $50,000 paid by each investor, they claim as much as half of the interest payments made by the developer. Middlemen in the U.S., who bundle EB-5 investments for developers, get most of the rest. The immigrant investor typically gets 0.5 percent or less.

    But many aren’t interested in their rate of return. They want the visa—and a project that’s sure to succeed. If it fails, there’s a chance they’ll lose both their principal and their shot at a green card. Agents who can quickly deliver investors likely to get initial approval from U.S. immigration can get a bigger piece of the interest payments from developers, Klasko says. And agents connected to good projects can charge investors more. “China is nothing if not a capitalist society—it’s all negotiated,” he says.

    The pay quickly adds up, particularly for large companies such as Qiaowai, which says it has 600 employees in 15 Chinese cities. Last year the U.S. received about 11,000 immigration petitions from Chinese investors, and Qiaowai claims it accounts for a third of the EB-5 market in China. If each of those approximately 3,700 petitioners who were Qiaowai clients paid a typical $50,000 fee, Ding’s company made something like $185 million, not including interest payments. Qiaowai and Ding didn’t respond to multiple requests for comment for this article.

    Ding places her personal American success story at the center of Qiaowai’s marketing, sometimes inviting her twin daughters, who went to the same prep school in Dallas as George W. Bush’s twins, to join her on stage. The company has posted photos on social media of Ding at Trump’s inauguration and at a post-inaugural party called the Liberty Ball.

    Agents are responsible for finding the hook that will make each project appeal to Chinese investors. Often, it’s an American politician or celebrity. “They completely trust the American government,” Rowley says, “despite the fact they don’t trust their own government.” Last year former New York Mayor Rudy Giuliani spoke in Beijing and Shanghai at Qiaowai seminars for Maefield Development’s renovation of a Times Square theatre. Giuliani, who was billed as “the father of the Times Square revival,” gave short speeches on the strength of the New York economy.

    In 2013, Qiaowai helped raise $50 million in EB-5 loans for a Jersey City tower known as Trump Bay Street, built by Kushner Cos. It was a fallow moment for the family brand. “Nobody knew who Kushner was, and we felt Trump was a funny character,” recalls Lily Wang, a former Qiaowai manager who now runs the competing Guanyi Investment Consulting Group. “He was no Buffett, and leveraging on him could not be convincing.” Qiaowai instead promoted the project’s proximity to Manhattan. A video put viewers behind the wheel of a car driving through Jersey City as Woke Up This Morning, the theme song from The Sopranos, played. It was still a difficult sell; Wang says it took Qiaowai a year to find 100 investors for the Trump-Kushner project.

    In June, a month after Qiaowai held the event in Beijing featuring Nicole Meyer and the big photo of Trump, people crowded into the grand ballroom in Shanghai’s Four Seasons Hotel for another Qiaowai seminar. Two massive TV screens looped a video profile of Ding and shorter stories about successful immigrants. “These are all true stories,” Song Ying, a sales manager, told the crowd. Qiaowai hadn’t had an easy start with the EB-5 program, she confided. Early clients doubted they’d get their $500,000 back. When the first of them did, Song recalled, they threw a party.

    This day, Song was announcing the company’s newest project (its 88th, according to the company website), a Criterion Group development on the Astoria waterfront in Queens, N.Y. Even though congressional critics were calling for an investigation of Qiaowai’s claims at the Kushner event, Song repeated the pitch. “Choose Qiaowai,” she told attendees, “you will get what you want. Guaranteed.”

    At the seminar’s next session, a tax expert highlighted an important benefit of emigrating to the U.S.: The country hasn’t signed on to an automated international information exchange, designed to reduce tax evasion, that China had just joined. “The Chinese government won’t know how much money you have in the U.S.,” he said to a room of investors, some of whom rose to snap photos of his slide presentation.

    The families, some with toddlers, spilled from the ballroom into a foyer. There, more experts stood by to answer prospective investors’ questions on housing, education, and other aspects of resettlement. Jannie Zhang, a business development officer from the China offices of Standard Chartered Plc, was there to advise on perhaps the most important concern: getting money out of the country. China allows its citizens to move only $50,000 abroad each year, far below the minimum EB-5 investment of $500,000. To get around this, investors often line up friends and family, or even pay strangers, to wire money overseas, a process known as “ant moving.”

    China monitors transfers from multiple sources into a single overseas account. Zhang told people that transferring money out of mainland China into multiple overseas accounts, instead of just one, should be enough to avoid the government’s attention. She said investors could open an account at one of the bank’s branches in China for 500,000 yuan ($76,500) and get additional accounts in Hong Kong or Singapore. From there, the money could be routed freely to the U.S. “This is a service that we are not allowed to promote proactively,” Zhang said. “But we can answer questions.”

    Not every agent can afford Qiaowai’s trappings at the Four Seasons. Two smaller operations set up shop in smaller conference rooms next door, and in the lobby, a man approached every person leaving the hotel who carried one of Qiaowai’s gray tote bags. “Do you need immigration service?” he asked. “Take my card.”

    In 2009, as Chinese investors were flocking to EB-5, Larry Wang, founder of Well Trend United Consulting, a large immigration agency based in Beijing, joined a nationally televised debate about the program. Some participants argued that it was unfair to China—just a way for the U.S. to squeeze money out of the country during the Great Recession. Wang, an EB-5 supporter, countered that the program was good so long as agents brought solid projects to their customers. Thinking back on that debate today, he says, he wishes he’d been more critical. “It’s getting too popular in China,” he says. “Are most Chinese clients knowledgeable enough? Are most agents good enough, capable enough to handle the situations? I don’t think so.” Wang learned the hard way about the risk that clients will be swept up in fraud. In 2010, Well Trend found four investors to supply $500,000 apiece in EB-5 funding for a factory that a Beverly Hills businessman was proposing to build in Moberly, Mo., 130 miles east of Kansas City. The facility was meant to produce Sweet-O, an artificial sugar substitute developed by a company called Mamtek. The city of Moberly sold $39 million in bonds to help fund the project.

    A year later, Mamtek was broke. The businessman, Bruce Cole, was charged with theft and fraud after it emerged that he’d used the money to avoid foreclosure on his California home. He pleaded guilty and was sentenced in 2014 to seven years in prison. The city defaulted on its bonds, and investors lost their money. Wang says he personally repaid his clients $2.5 million to cover their lost investment and other fees.

    In 2013 the U.S. Securities and Exchange Commission issued an alert warning investors to avoid companies that guarantee returns or visas or that claim to be supported by the U.S. government. But frauds big and small continue to haunt the program. In Seattle, a Tibetan monk-turned-developer was recently sentenced to four years in federal prison for misusing money he raised from more than 280 Chinese investors. Another developer misused $200 million in EB-5 money raised from 731 investors to build a biotech center in rural Vermont, according to the SEC. The commission also says it’s stopped some scams in progress, including one in which a man raised about $160 million from more than 290 Chinese nationals for the “World’s First Zero Carbon Emission Platinum LEED certified” hotel in Chicago, then never even went so far as to apply for building permits. The investors got $147 million of their money back—and those who were still interested had no choice but to start the process over again.

    The U.S. hit its annual quota of 10,000 EB-5 visas for the first time in 2014. Eighty-five percent of them went to Chinese nationals. The quota system stipulates that no country’s citizens can claim more than 7 percent of the total EB-5 visas in a year, as long as any other country wants them. But demand from outside China is small—though it’s growing—so in practice, citizens of every other country go directly to the front of the line and Chinese investors hoover up whatever’s left. The most visas ever claimed by a country other than China was 903, by South Korea in 2009.

    Just before Trump took office, Homeland Security proposed rules that would raise the minimum investment for an EB-5 visa to $1.35 million and tighten the qualifications for distressed areas. The Trump administration hasn’t yet made clear whether the rules will go into effect.

    Congress, for its part, continues to scrutinize the program. Primarily because of opposition by Grassley, Democratic Senator Dianne Feinstein of California, and a few others, EB-5 has been surviving on short-term extensions for the past two years. Feinstein wants to kill the program entirely.

    But that appears to be a minority view. Most politicians find it hard to turn down any program that promises economic development, and even some of those who take a hard line on immigration can stomach EB-5. In July, Senator Ted Cruz spoke in San Francisco at the EB-5 & Investment Immigration Convention. The Texas Republican told attendees that EB-5 creates jobs at zero taxpayer expense. The program also meshes with the priorities Trump set in his immigration proposal to curtail family preferences while maintaining those based on skills or wealth. Trump and his son-in-law, of course, have benefited from the program themselves through the Jersey City project. Kushner says he’s recused himself from any administration decisions on EB-5.

    It may be that the only losers in this system are the prospective immigrants. Over the past four years, 13 percent of EB-5 loans failed to perform, more than twice the rate of commercial mortgage-backed securities, according to Mark Elletson, managing director at Brandlin & Associates. Lance Jurich, a Los Angeles bankruptcy attorney, says he’s been hearing lately from more EB-5 investors, and they’re often in a tough spot, because their loans are typically junior to others in bankruptcy proceedings. In addition to getting their principal back, Jurich’s EB-5 clients want help proving their money created jobs while the project was still viable, so they can maintain their immigration status. “When you’re representing a financial institution like a bank, the loan officers don’t get deported if the project fails,” Jurich says.

    Basic math is also working against aspiring immigrants. The number of visas available to Chinese nationals is falling—to about 7,500 in 2016—as more people from other countries apply for the program. There are now so many pending applications from China that the U.S. government estimates a Chinese investor filing now may have to wait 10 years from the time he forks over his $500,000 to when he gets approval to move to the U.S. Liu, who paid his money in late 2013, didn’t get an interview with a U.S. visa officer until this May. He flew to Guangzhou, where a visa officer at a U.S. field office, seemingly without a glance at the files Qiaowai had prepared for him, granted him, his wife, and their son conditional visas good for two years.

    In September, Liu plans to visit Los Angeles and see Disneyland with his family. Then he’ll start looking for a job in the area. He’s trying not to share his unease about the uncertainty of the visa process. “I’m actually quite worried,” he says. “But I leave the pressure to myself.”

    As the backlog in the U.S. builds, Chinese agents see a new kind of opportunity: They’re trying to sell clients on destinations where investor visas are easier to obtain. At the seminar in June, Qiaowai’s Song suggested investors check out Malta, which is part of the European Union. It’s pricey, but fast. And there are other options. Whyte, the consultant, isn’t convinced of the potential. “The agents say to me, ‘My clients are also considering Australia,’ ” he says. “And I say, ‘Let them go to Australia. Go ahead!’ They want to come to America.”

  • Muddy Waters' Carson Block Sues Equifax For $500,000

    Disgraced credit-monitoring company Equifax, which has seen its stock drop by nearly 40% since disclosing what will likely be remembered as one of the most damaging data breaches in US history, eliciting dozens of class-action lawsuits, calls for investigations by at least one state attorney general, and requests from multiple Congressional committees for more information about the exact timeline of when Equifax learned about the hack, and when it was disclosed – because somewhere between those two events, several of the company’s executives, including its CFO, cashed out of some $2 million in stock and options.

    In the latest humiliating blow to a company that failed at its only job – safeguarding Americans’ sensitive personal and financial data – famed short-seller Carson Block has announced that he has decided to sue the company over its “abysmal” handling of the hack.

    And here’s the kicker: He doesn’t even have an open short position against the company. In other words: There’s no profit motive here. Block – like millions of Americans – is just really, really pissed.

    Here’s the Financial Times:

    “Veteran short-seller Carson Block has launched a private lawsuit against Equifax, accusing the credit-reporting company of an “abysmal” handling of one of the worst cyber security incidents in history. Equifax said on September 7 that its systems were breached by criminals in a raid that went on for more than two months — an admission that has prompted a flood of regulatory inquiries, dozens of private lawsuits and a more than one-third collapse in the company’s share price. The data of up to 143m Americans was compromised, the company said, along with up to 400,000 people in the UK.

     

    One of those was Mr Block, whose suit filed on Friday accuses Equifax of negligence in failing to safeguard and protect his personal identifying information from criminals, as well as a failure to disclose the breach in a timely fashion.”

    Apparently, Block has learned that his personal information was compromised in the hack because he’s suing for personal damages. He has also accused the company of failing to disclose the breach in a timely fashion. The company’s CEO, Rick Smith, who is expected to deliver Congressional testimony early next month, has said that the company at first believed the hack was relatively minor."

    According to the FT, the famed short sellers is seeking $500,000 in damages, a paltry sum considering Muddy Waters reportedly produced double-digit returns last year.

    “Mr Block’s firm, Muddy Waters, has no short position that would benefit from a fall in the stock. In the suit, filed in the Northern District of California, San Francisco division, he seeks damages of at least $500,000 for the “stress, nuisance and annoyance” of dealing with issues stemming from the breach.

     

    The suit notes that Equifax’s business revolves around being a “secure storehouse” for data and providing a clear financial profile of consumers that lenders and other businesses can rely on. According to its own description, Equifax organises, assimilates and analyses data on more than 820m consumers and more than 91m businesses worldwide.

     

    Equifax could not be reached for comment at the time of publication.”

    As the FT explains, hackers gained access to the company’s systems by exploiting a vulnerability in Apache Struts, a popular open-source framework for developing web applications in the Java programming language. On Friday, Equifax said that it had patched the hole on July 30, one day after it had detected strange activity on its servers. But cybersecurity experts note that the fix had been available since March, when the Apache Foundation put out an update which had been widely disseminated in tech circles. In short, the company’s cybersecurity experts committed an unforced error by neglecting to invest the meager resources required to patch the fix.

    Amid the firestorm of controversy that has engulfed the company in the aftermath of the hacking disclosure, Equifax has actively tried to cover up the fact that Susan Mauldin, Equifax’s chief information security officer, and the person who was responsible for keeping the highly confidential and secret information of over 100 million Americans, has zero security or technology credentials…in fact, she was a music major at the University of Georgia.

    Smith, Mauldin and nine other executives are named in Block’s lawsuit.  Mauldin, Equifax said, would retire immediately from the company on Friday, along with David Webb, chief information officer.

    According to the suit, Equifax should’ve been more careful following two big breaches in 2016. In one of those, 430,000 names and other vital pieces of information were lost as a result of the company using “alarmingly poor” security for the generation of PINs from the last four digits of a social-security number and the four-digit year of birth.

    Of course, with North Dakota Democrat Heidi Heitkamp calling for a criminal investigation into securities fraud, Block’s lawsuit for a meager half a million is probably the least of the company’s worries…
     

  • "Lies, Lies, & OMFG More Lies!"

    Authored by Jim Quinn via The Burning Platform blog,

    “There are three types of lies — lies, damn lies, and statistics.” – Benjamin Disraeli

    Every month the government apparatchiks at the Bureau of Lies and Scams (BLS) dutifully announces inflation is still running below 2%. Janet Yellen then gives a speech where she notes her concern inflation is too low and she needs to keep interest rates near zero to save humanity from the scourge of too low inflation. I don’t know how I could survive without 2% inflation reducing my purchasing power.

    This week they reported year over year inflation of 1.9%. Just right to keep Janet from raising rates and keeping the stock market on track for new record highs. According to our beloved bureaucrats, after they have sliced, diced, massaged and manipulated the data, you’ve experienced annual inflation of 2.1% since 2000. If you believe that, I’ve got a great real estate deal for you in North Korea on the border with South Korea.

    “Lies sound like facts to those who’ve been conditioned to mis-recognize the truth.” ? DaShanne Stokes

    CPI and Core CPI

    Ignore that silly Shiller PE ratio far surpassing 1929 and 2007 levels. Ignore every historically accurate valuation method showing the stock market 70% to 129% overvalued. Wall Street shysters like Jamie Dimon, faux financial analysts, corporate media talking heads and even Donald Trump tell you this time is different. Tax cuts, amnesty for illegals, more wars, and eliminating the debt ceiling will surely spur massive economic growth. Trillion dollar deficits are always bullish. Making America Great with More Debt should drive the stock market to 30,000 in no time.

    All is well. Real median household income just surpassed the level achieved in 1999. Think about that for a second. It took seventeen years for the average American family to get back to a household income of $59,000. The $59,000 of household income in 2017 doesn’t quite go as far as it did in 1999, with even BLS manipulated inflation showing an 87% increase in medical costs, 80% increase in energy costs, 51% increase in food costs, 53% increase in housing costs, and a 115% increase in college education. And of course the BLS changed their methodology, boosting household income by $1,700 in 2013. So, in reality it is still below 1999 levels.

    12/9/17: U.S. Median Household Income: The Myths of Recovery

    When you consider 50% of all households make less than $59,000, have not benefited one iota from the Fed/Wall Street debt engineered stock bull market, have less than $1,000 in savings, and less than $50,000 of retirement savings, you realize your Deep State masters must propagandize economic data and manipulate inflation and unemployment figures to keep the masses confused, deluded, and misinformed. The Big Lie is their strategy of choice.

    The lies built into the politically motivated CPI figure are designed to screw senior citizens, bond investors, and average hard working Americans who depend upon annual salary increases to keep their heads above water. Corporations are able to point to the low levels of CPI as the reason they don’t need to provide higher salary increases. The government can get away with providing little or no Social Security increases to senior citizens by purposely under-reporting inflation based upon academic theories put forth by captured Ivy League pinheads paid off by the Deep State.

    The chart below provides the government reported cumulative increases in key categories since 2000. Not only does the government purposely under-report the increases in these costs, they also purposely under-weight the significance of particular categories in order to reduce the reported level of inflation. Some of these categories show significant increases, but they are far lower than what average Americans are actually experiencing in the real world.

    CPI Components

    One of the outrageous examples of how the government uses academic gibberish about product improvements to drastically under-report CPI is how they report new vehicle inflation. The average price of a new car in 2000 was $22,000. Today, the average price is $34,500. That’s a 57% increase. The BLS bullshit artists have the gall to report new vehicle inflation of a whopping 2% since 2000.

    They have “adjusted” away 55% of the actual increase by saying airbags and other unnecessary technological baubles improved automobiles to such an extent, prices didn’t really go up. What a fucking joke. Having your ass warmed with the push of a button didn’t put the extra $12,500 in your bank account to pay for that car. And new vehicles account for 3.6% of the CPI calculation, while health insurance accounts for 1% of the weighting. Yeah, that reflects reality.

    Another outrageous example of under-reporting inflation is in the highest weighted category of housing. It is supposed to reflect the cost of rent and home ownership. The owners equivalent rent calculation is purposely opaque in order to suppress the true cost increase. Median home prices were $165,000 in 2000 and are currently $317,000, a 92% increase. The average rent of $475 in 2000 has risen to $910 today, also a 92% increase. So it makes total sense for the BLS drones to report a 53% increase in housing since 2000. I’m sure their academic model adjusted the true increase downward by 39% due to some obscure algorithm created by a Princeton economics professor.

    Medical care advancing by 87% since 2000 sounds substantial, but that only equates to annual inflation of 3.5%. I’d love to find anyone in this country who has only seen their medical costs rise by 3.5% per year. The blatantly shameful falsification of medical inflation is evident to anyone living through the current Obamacare nightmare. According to these BLS prevaricators, health insurance has only risen by 21% since the passage of the Obamacare abortion bill. That lie is beyond comprehension as anyone living in the real world has likely experienced insurance premium increases exceeding 100% since 2009.

    I work for the largest employer in Philadelphia, with the most leverage in negotiating insurance premiums with the health insurance complex. I also have tracked my expenditures by category since the 1990’s with Quicken. I know exactly what my medical costs and health insurance costs were in 2009 and what they are today. Let’s do a reality check on the BLS inflation figures of 26% for medical services and 21% for health insurance premiums.

    Back in 2009 we had no individual or family deductibles, no co-pays for lab work, and low co-pays for doctor visits. Today, with $1,500 individual deductibles and co-pays 70% higher, our annual medical expenses are 140% higher than they were in 2009, with one less person in the house. That’s slightly more than the BLS fraudulent figure of 26%. Our annual health insurance premiums aren’t 21% higher than 2009. They are 90% higher. And I work for an employer that has negotiating leverage. Many Americans are experiencing 200% to 400% increases. This is the real world, not some excel spreadsheet model world created by academics, politicians and bureaucrats.

    Could the BLS be as incompetent in capturing medical inflation as they appear or are they massively under-reporting the true inflation and the weighting for the average American family on purpose? I would contend it is purposeful and directed by those in power as a last ditch effort to keep the masses from revolting and hanging them from the nearest lamppost. The Federal Reserve and their Deep State co-conspirators must massively understate true inflation because reporting the truth would require interest rates to be raised, Social Security payments to be increased, and wages to be elevated – blowing a gaping hole in the federal budget and initiating a stock, bond and housing market collapse.

    Those in power know their decades of propaganda and social engineering in public schools have dumbed down the masses to such an extent not one in ten could even tell you what CPI stands for, let alone how it is measured. Any critical thinking intelligent person aware of their daily costs knows their true annual inflation rate isn’t 1.9%. It exceeds 5% and has exceeded 5% since 2000.

    Anyone reading and understanding this article is a dangerous man to the government. We know they are dishonest, insane and intolerable. Our job is to spread discontent until a tipping point is reached. I don’t think we are too far away.

    “The most dangerous man to any government is the man who is able to think things out for himself, without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane and intolerable, and so, if he is romantic, he tries to change it. And even if he is not romantic personally he is very apt to spread discontent among those who are.” ? H.L. Mencken

  • Pension Storm Coming: "This Will Become One Of The Most Heated Battles Of My Lifetime"

    By John Mauldin from Mauldin economics

    This time is different are the four most dangerous words any economist or money manager can utter. We learn new things and invent new technologies. Players come and go. But in the big picture, this time is usually not fundamentally different, because fallible humans are still in charge. (Ken Rogoff and Carmen Reinhart wrote an important book called This Time Is Different on the 260-odd times that governments have defaulted on their debts; and on each occasion, up until the moment of collapse, investors kept telling themselves “This time is different.” It never was.)

    Nevertheless, I uttered those four words in last week’s letter. I stand by them, too. In the next 20 years, we’re going to see changes that humanity has never seen before, and in some cases never even imagined, and we’re going to have to change. I truly believe this. We have unleashed economic and technological forces we can observe but not entirely control.

    I will defend this bold claim at greater length in my forthcoming book, The Age of Transformation.

    Today we will zero in on one of those forces, which last week I called “the bubble in government promises,” which I think is arguably the biggest bubble in human history. Elected officials at all levels have promised workers they will receive pension benefits without taking the hard steps necessary to deliver on those promises. This situation will end badly and hurt many people. Unfortunately, massive snafus like this rarely hurt the politicians who made those overly optimistic promises, often years ago.

    Earlier this year I called the pension mess “The Crisis We Can’t Muddle Through.” Reflecting since then, I think I was too optimistic. Simply waiting for the floodwaters to drop down to muddle-through depth won’t be enough. We face an entire new ocean, deeper and wider than we can ever cross unaided.

    Storms from Nowhere?

    This year marks the first time on record that two Category 4 hurricanes have struck the US mainland in the same year. Worse, Harvey and Irma landed directly on some of our most valuable and vulnerable coastal areas. So now, in addition to all the problems that existed a month ago, the US economy has to absorb cleanup and rebuilding costs for large parts of Texas and Florida, as well as our Puerto Rico and US Virgin Islands territories.

    Now then, people who live in coastal areas know full well that hurricanes happen – they know the risk, just not which hurricane season might launch a devastating storm in their direction. In a note to me about Harvey, fellow Rice University graduate Gary Haubold (1980) noted just how flawed the city’s assumptions actually were regarding what constitutes adequate preparedness. He cited this excerpt from a recent Los Angeles Times article:

    The storm was unprecedented, but the city has been deceiving itself for decades about its vulnerability to flooding, said Robert Bea, a member of the National Academy of Engineering and UC Berkeley emeritus civil engineering professor who has studied hurricane risks along the Gulf Coast.

    The city’s flood system is supposed to protect the public from a 100-year storm, but Bea calls that “a 100-year lie” because it is based on a rainfall total of 13 inches in 24 hours.

    “That has happened more than eight times in the last 27 years,” Bea said. “It is wrong on two counts. It isn’t accurate about the past risk and it doesn’t reflect what will happen in the next 100 years.” (Source)

    Anybody who lives in Houston can tell you that 13 inches in 24 hours is not all that unusual. But how do Robert Bea’s points apply to today’s topic, public pensions? Both pension plan shortfalls and hurricanes are known risks for which state and local governments must prepare. And in both instances, too much optimism and too little preparation ultimately have devastating results.

    Admittedly, public pension liabilities don’t come out of nowhere the way hurricanes seem to – we know exactly where they will strike. In many cases, we know approximately when they’ll strike, too. Yet we still let our elected officials make impossible-to-fulfill promises on our behalf. The rest of us are not so different from those who built beach homes and didn’t buy hurricane or storm surge insurance. We just face a different kind of storm.

    Worse, we let our government officials use predictions about future returns that are every bit as unrealistic as calling a 13-inch rain in Houston a 100-year event. And while some of us have called pension officials out, they just keep telling lies – and probably will until we reach the breaking point.

    Puerto Rico is a good example. The Commonwealth was already in deep debt before Irma blew in – $123 billion worth of it. There’s simply no way the island can repay such a massive debt. Creditors can fight in the courts, but in the end you can’t squeeze money out of plantains or pineapples. Not enough money, anyway. Now add Irma damages, and the creditors have even less hope of recovering their principal, let alone interest.

    Puerto Rico is presently in a new form of bankruptcy that Congress authorized last year. Court proceedings will probably drag on for years, but the final outcome isn’t in doubt. Creditors will get some scraps – at best perhaps $0.30 on the dollar, my sources say – and then move on. We’re going to find out how strong those credit insurance guarantees really are.

    “That’s just Puerto Rico,” you may say if you’re a US citizen in one of the 50 states. Be very careful. Your state is probably not so much better off. In 10 years, your state may well be in the same place where Puerto Rico is now. I’d say the odds are better than even.

    Are your elected leaders doing anything about this huge issue, or even talking about it? Probably not.

    As it stands now, states can’t declare bankruptcy in federal courts. Letting them do so would raises thorny constitutional issues. So maybe we’ll have to call it something else, but it’s going to end the same way. Your state’s public-sector retirees will not get what they were promised, and they won’t take the outcome kindly.

    Blood from Turnips

    Public sector bankruptcy, up to and including state-level bankruptcy, is fundamentally different from corporate bankruptcy in ways that many people haven’t considered. The pension crisis will likely expose those differences as deadly to creditors and retirees.

    Say a corporation goes bankrupt. A court will take all its assets and decide how to divvy them up. The assets are easy to identify: buildings, land, intellectual property, cash, etc. The parties may argue over their value, but everyone knows what the assets are. They won’t walk away.

    Not so in a public bankruptcy. The primary asset of a city, county, or state is future tax revenue from households and businesses within its boundaries. The taxpayers can walk away. Even without moving, they can bypass sales taxes by shopping elsewhere. If property taxes are too high, they can sell and move. When they take a loss on the sale, the new owner will have established a property value that yields the city far less revenue than it used to receive.

    Cities and states don’t have the ability to shed their pension liabilities. They are stuck with them, even as population and property values change.

    We may soon see an example of this in Houston. Here in Texas, our property taxes are very high because we have no income tax. Your tax is a percentage of your home’s taxable value. So people argue to appraisal boards that their homes are falling apart and not worth anything like the appraised value. (Then they argue the opposite when it’s time to sell the home.)

    About 200 entities in Harris County can charge taxes. That includes governments from Houston to Baytown to Hedwig Village, plus 20 independent school districts.

    There’s a hospital district, port authority, several college districts, the flood control district, a multitude of utility districts, and the Harris County Department of Education. Some homes may fall within 10 or more jurisdictions.

    What about those thousands of flooded homes in and around Houston; how much are they worth? Right now, I’d say their value is zero in many cases. Maybe they will have some value if it’s possible to rebuild, but at the very least they ought to receive a sharp discount from the tax collector this year.

    Considering how many destroyed or unlivable properties there are all over South Texas, I suspect cities and counties will lose billions in revenue even as their expenses rise. That’s a small version of what I expect as city and state pension systems all over the US finally face reality.

    Here in Dallas I pay about 2.7% in property taxes. When I bought my home over four years ago, I checked our local pension and was told we were 100% funded. I even mentioned in my letter that I was rather surprised. Turns out they lied. Now, realistic assessments suggest they will have to double the municipal tax rate (yes, I said double) to be able to fund fire and police pension funds. Not a terribly popular thing to do. At some point, look for taxpayers to desert the most-indebted cities and states. Then what? I don’t know. Every solution I can imagine is ugly.

    Promises from Air

    Most public pension plans are not fully funded. Earlier this year in “Disappearing Pensions” I shared this chart from my good friend Danielle DiMartino Booth:

    Total unfunded liabilities in state and local pensions have roughly quintupled in the last decade. You read that right – not doubled, tripled or quadrupled: quintupled. That’s nice when it happens on a slot machine, not so nice when it’s money you owe.

    You will also notice in the chart that much of that change happened in 2008. Why was that? That’s when the Fed took interest rates down to nearly zero, meaning it suddenly took more cash to fund future payments. Also, some strapped localities conserved cash by promising public workers more generous pension benefits in lieu of pay raises.

    According to a 2014 Pew study, only 15 states follow policies that have funded at least 100% of their pension needs. And that estimate is based on the aggressive assumptions of pension funds that they will get their predicted rate of returns (the “discount rate”).

    Kentucky, for instance, has unfunded pension liabilities of $40 billion or more. This month the state budget director notified local governments that pension costs could jump 50-60% next year. That’s due to a proposed reduction in the system’s assumed rate of return from 7.5% to 6.25% – a step in the right direction but not nearly enough.

    Think about this as an investor. Do you know a way to guarantee yourself even 6.25% average annual returns for the next 10–20 years? Of you don’t. Yes, some strategies have a good shot at doing it, but there’s no guarantee.

    And if you believe Jeremy Grantham’s seven-year forecasts (I do: His 2009 growth forecast was spot on), then those pension funds have very little hope of getting their average 7% predicted rate of return, at least for the next seven years.

    Now, here is the truth about pension liabilities. Let’s assume you have $1 billion in funding today. If you assume a 7% compound return – about the average for most pension funds – then that means in 30 years that $1 million will have grown to $8 billion (approximately). Now, what if it’s a 4% return? Using the Rule of 72, the $1 billion grows to around $3.5 billion, or less than half the future assets in 30 years if you assume 7%.

    Remember that every dollar that is not funded today means that somewhere between four dollars and eight dollars will not be there in 30 years when somebody who is on a pension is expecting to get it. Worse, without proper funding, as the fund starts going negative, the funding ratio actually gets worse, sending it into a death spiral. The only way to bring it out of the spiral is with huge cuts to other needed services or with massive tax cuts to pension benefits.

    The State of Kentucky’s unusually frank report regarding the state’s public pension liability sums up that state’s plight in one chart:

    The news for Kentucky retirees is quite dire, especially considering what returns on investments are realistically likely to be. But there’s a make or break point somewhere. What if pension plans must either hit that 6% average annual return for 2018–2028 or declare bankruptcy and lose it all?

    That’s a much greater problem, and it’s a rough equivalent of what state pension trustees have to do. Failing to generate the target returns doesn’t reduce the liability. It just means taxpayers must make up the difference.

    But wait, it gets worse. The graph we showed earlier stated that unfunded pension liabilities for state and local governments was $2 trillion. But that assumes an average 7% compound return. What if we assume 4% compound returns? Now the admitted unfunded pension liability is $4 trillion. But what if we have a recession and the stock market goes down by the past average of more than 40%? Now you have an unfunded liability in the range of $7–8 trillion.

    We throw the words a trillion dollars around, not realizing how much that actually is. Combined state and local revenues for the US total around $2.6 trillion. Following the next recession (whenever that is), the unfunded pension liabilities for state and local governments will be roughly three times the revenue they are collecting today, and that’s before a recession reduces their revenues. Can you see the taxpayer stuck between a rock and a hard place? Two immovable objects meeting? The math just doesn’t work.

    Pension trustees don’t face personal liability. They’re literally playing with someone else’s money. Some try very hard to be realistic and cautious. Others don’t. But even the most diligent can’t control when the next recession comes, or when the stock market will crash, leaving a gaping hole in their assets while liabilities keep right on rising.

    I have had meetings with trustees of various government pensions. Many of them want to assume a more realistic discount rate, but the politicians in their state literally refuse to allow them to assume a reasonable discount rate, because owning up to reality would require them to increase their current pension funding dramatically. So they kick the can down the road.

    Intentionally or not, state and local officials all over the US made pension promises that future officials can’t possibly keep. Many will be out of office when the bill comes due, protected from liability by sovereign immunity.

    We are starting to see cities filing for bankruptcy. That small ripple will be a tsunami within 7–10 years.

    But wait, it gets still worse. (Do you see a trend here?) Many state and local governments have actually 100% funded their pension plans. Some states and local governments have even overfunded them – assuming they get their projected returns. What that really means is that the unfunded liabilities are more concentrated, and they show up in unlikely places. You think Texas is doing well? Look at some of our cities and weep. Look, too, at other seemingly semi-prosperous cities all over the country. Do you think the suburbs of Dallas will want to see their taxes increased to help out the city? If you do, I may have a bridge to sell you – unless you would rather have oceanfront properties in Arizona.

    This issue is going to set neighbor against neighbor and retirees against taxpayers. It will become one of the most heated battles of my lifetime. It will make the Trump-Clinton campaigns look like a school kids’ tiddlywinks smackdown.

    I was heavily involved in politics at both the national and local levels in the 80s and 90s and much of the 2000s. Trust me, local politics is far nastier and more vicious. And there is nothing more local than police and firefighters and teachers seeing their pensions cut because the money isn’t there. Tax increases of up to 100% are going to become commonplace. But even these new revenues won’t be enough… because we will be acting with too little, too late.

    This is the core problem. Our political system gives some people incentives to make unrealistic promises while also absolving them of liability for doing so. It also places the costs of those must-break promises on innocent parties, i.e. the retirees who did their jobs and rightly expect the compensation they were told they would receive.

    So at its heart the pension crisis is really not a financial problem. It’s a moral and ethical problem of making and breaking promises that profoundly impact people’s lives. Our culture puts a high value on integrity: doing what you said you would do.

    We take a job because the compensation package includes x, y and z. Then someone says no, we can’t give you z, so quit and go elsewhere.

    The pension problem is going to get worse as more and more retirees get stuck with broken promises, and as taxpayers get handed higher and higher bills. These are irreconcilable demands in many cases. It’s not possible to keep contradictory promises.

    What’s the endgame? I think much of the US will end up like Puerto Rico. But the hardship map will be more random than you can possibly imagine. Some sort of authority – whether bankruptcy courts or something else – will have to seize pension assets and figure out who gets hurt and how much. Some courts in some states will require taxes to go up. But courts don’t have taxing authority, so they can only require cities to pay, but with what money and from whom?

    In many states we literally don’t have the laws and courts in place with authority to deal with this. And just try passing a law that allows for states or cities to file bankruptcy in order to get out of their pension obligations.

    The struggle will get ugly, and innocent people on both sides will be hurt. We hear stories about retired police chiefs and teachers with lifetime six-digit pensions and so on. Those aberrations (if you look at the national salary picture) are a problem, but the more distressing cases are the firefighters, teachers, police officers, or humble civil servants who served the public for decades, never making much money but looking forward to a somewhat comfortable retirement. How do you tell these people that they can’t have a livable pension? We will see many human tragedies.

    On the other side will be homeowners and small business owners, already struggling in a changing economy and then being told their taxes will double. This may actually happen in Dallas; and if it does, we won’t be alone for long.

    The website Pension Tsunami posts scores of articles, written all across America, about pension problems. We find out today that in places like New York and Chicago and Cook County, pension funds have more retirees collecting than workers paying into the fund. There are more retired cops in New York and Chicago than there are working cops. And the numbers of retirees just keep growing. On an individual basis, it is smart for the Chicago police officer to retire as early possible, locking in benefits, go on to another job that offers more retirement benefits, and round out a career by working at least three years at a private job that qualifies the officer for Social Security. Many police and fire pensions are based on the last three years of income; so in the last three years before they retire, these diligent public servants work enormous amounts of overtime, increasing their annual pay and thus their final pension payouts.

    As I’ve said, this is the crisis we can’t muddle through. While the federal government (and I realize this is economic heresy) can print money if it has to, state and local governments can’t print. They actually have to tax to pay their bills. It’s the law. It’s also an arrangement with real potential to cause political and social upheaval that Americans have not seen in decades. The storm is only beginning. Think Hurricane Harvey on steroids, but all over America. Of all the intractable economic problems I see in the future (and I have a vivid imagination), this is the most daunting.

  • Beijing Start-Up Now Offers Sex Dolls For Rent

    It's official: China's sharing economy has reached its peak.

    After shared workout pods, stools luxury cars, and, of course, bicycles, Shanghaist reports that a Beijing-based startup now has come up with a "mesmerizingly grotesque" idea: what if people could rent sex dolls through an app and return them after a period of time so that other silicone slammers could take advantage of the very same product?

    And no, sadly this is not a joke.

    The Chinese app, which is called Ta Qu, or "Touch" in English, was launched in 2015 as a platform for discussing issues about sex and sexuality. Over the past two years, it has pivoted or "(d)evolved" into a sex doll sharing app, which is now being tested in Beijing.  The Global Times reports that daily rentals cost 298 yuan, or less than $50, while users of the app can rent dolls for a week for the price of 1,298 yuan, after making an 8,000 yuan deposit.

    The dolls then get delivered right to the user's doorstep.

    According to the Chinese outlet, there are currently five models to choose from: "Greek bikini model," "US Wonder Woman," "Korean housewife," "Russian teenager" and "Hong Kong car race cheerleader." Users can customize the dolls to their liking by picking out hair and eye color, as well as their outfits. 

    Here is what $50 per day rents you:

    For those asking the obvious question, the company states that it also has hygiene on its mind, as explained by their official policy.

    "The dolls' lower parts are changed for every customer," reads the app. "Please remove the lower parts before returning. After the lower parts are cleaned, the doll can be used repeatedly."

    The sex rental-sharing app is currently trying to make a name for itself in China's booming adult toy market. On Weibo, where the company has more than 300,000 followers, it announced it would be giving out 20,000 free condoms as a way of promotion. It has also established several "pop-up" locations in Beijing to inform residents about their services, while even allowing people to pose for photos with their dolls while riding on the city's subway.

    Hoping to capitalize on China's infamous gender imbalance, as well as its online gaming culture which breeds hordes of lonely young men, it remains to be seen whether Ta Qu will actually be able to translate the sharing economy model to sex dolls. But hey, at least it's a better idea than shared umbrellas.

  • China Orders No Market Turbulence Ahead Of Party Congress

    The most important event in China in five years is about to take place, and Beijing isn’t taking any chances.

    Ahead of the Communist Party’s twice-a-decade congress – an event so massive that according to Bloomberg “nothing escapes its pull” – which is slated to start on October 18 in Beijing, regulators have made it clear to the nation’s top brokers, bankers and financiers that they don’t want to see any major turbulence in markets.

    In a repeat of the fiasco that followed the bursting of China’s equity bubble in the summer of 2015 when Beijing effectively nationalized the stock market, and went so far as to throw prominent hedge fund managers and assorted “speculators” in prison, the China Securities Regulatory Commission has ordered local brokerages to “mitigate risks” and ensure stable markets before and during the Communist Party’s leadership congress next month, according to Bloomberg. Additionally, to leave virtually nothing to chance – and to have ready scapegoats in case someone does in fact sell – the CSRC also banned brokerage bosses from taking holidays or leaving the country from Oct. 11 until the congress ends.

    Brokerage bosses were told to avoid travel of any kind from Oct. 11 until the congress ends, including business trips.

     

    Luckily for them, China’s national day holidays are coming up in the first week of October. Local markets will be shut for an entire week, providing plenty of time to recharge for the congress.

    Since the congress, which is expected to replace about half of China’s top leadership, is of paramount importance to President Xi Jinping who will use it as a foundation to cement his influence into the next decade, nothing is allowed to spoil the optics of supreme control at this critical moment.

    And while China routinely takes steps to reduce market swings during key political gatherings, the travel ban on brokerage chiefs illustrates how seriously regulators are taking next month’s meeting, according to Bloomberg.

    Still, the news will hardly come as a surprise to most market participants, and explains why Chinese markets have already rallied significantly this year amid expectations of government support, while equity volatility has tumbled to the lowest level in over 2 decades. The Shanghai Composite Index touched a 20-month high on Tuesday, while the yuan has strengthened 6.4% against the dollar this year.

    In addition to the travel ban, China’s regulator told brokerages and futures companies to check for risks in their liquidity, operations and financial health, effectively warning that it does not want to see any selling. The regulator also ordered firms to assess their information system security and credit risks and report their findings before October, Bloomberg’s sources added.

    Of course, with so much focus on how effective China will be at keeping its equity markets growing at a steady, controlled pace and avoiding turbulence ahead of the critical summit, anyone hoping to make a political statement against the Xi regime – whether domestically or offshore – could do so simply by causing even a modest market correction sometime in mid-October, especially since even the smallest spike in volatility could lead to a panicked selloff in light of such an unexpected move.

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Today’s News 17th September 2017

  • The Gentleman’s Guide to Self-Defense Part 4: Inexpensive Self-Defense Tools

    Preface: Also take a look at the BulletProof Shirt and Knife-Resistant Clothing.

     

    Here's a quick round-up of inexpensive but effective self-defense tools …

     

    Hoffner Folding Knife

    In many "blue" states like mine, it's illegal to carry switchblades or even assisted-opening knives …

    A reader suggested a Hoffner knife. Made by a top firearm and knife trainer to U.S police departments – law enforcement officer Brian Hoffner – the Hoffner folding knife is incredible.

    It is legal in my blue state, because it does not have a spring-assisted opening. However, the Hoffer cleverly uses gravity to easily open with one hand. So even with my tendinitis (I injured my wrists lifting way too much at the gym), I can easily open the Hoffner one-handed with a quick flick of my wrist.

    Bottom line: Even in my big brotherish anti-self-defense state, I can legally carry a knife with which I can handily protect myself with quick-deploying, one-handed action.

    Purpleheart Armoury Hickory Cane

    If you'd like to carry a baseball bat around – but don't want to look so conspicuous – you can carry an elegant, all-hickory cane with a beefy metal handle. This thing is incredibly well-made, solid hickory, and as elegant as they come:

    Cane 1 Cane 3

    (My pictures don't do it justice.)

    It is built like a tank – one whack on the noggin and the bad guy is going night-nite – and as classy as any cane in the world.

    You can leave it in the car, in your bedroom, or take it with you. 

    $85 from Purpleheart Armoury.

    Nitecore P12GT 1,000 Lumen Flashlight

    I conducted hours of research to find a small, portable, tactical flashlight which would actually work to blind an attacker long enough to mount a defense or get away.

    It turns out that there are 4 criteria for an effective self-defense flashlight:

    (1) It has to be really bright

    (2) It has to have a "strobe" mode. Specifically, it is very hard for a thug's eyes to adjust to a bright strobe than a constant bright light. It is also disorienting af.

    (3) It has to be a great "thrower". That is, it has to shine really far, as opposed to casting a wide arc. Thinking of being able to reach the bad guy's eyes, and (metaphorically) have the light basically hit the back of their head.

    (4) It has to be small enough to easily fit in your pocket.

    When I started looking, nothing met all 4 criteria …

    But recently, Nitecore released the P12GT, and it passes all 4 tests with flying color.

    At 1,000 lumens, this is crazily bright (there are also 3 other settings for normal household uses).

    It has a good strobe. And you can program the button on the thumb-end of the flashlight to "remember" the last setting you used. So you can auto-program the main button to go straight to the self-defense strobe setting.

    It is a crazy good thrower … the light shines 401 yards. (That's more than 3 football fields!)

    And at only 1 inch in diameter and 5.5 inches at length, it can easily fit in your front or back pocket.

    I haven't received a cent for writing these reviews. I received a test sample of one of the above-described tools … but not the other two. I vouch for all three of them.

  • The Russia-China Plan For North Korea: Stability & Connectivity

    Authored by Pepe Escobar via The Asia Times,

    Moscow has been busy building agreements that would extend Eurasian connectivity eastward. The question is how to convince the DPRK to play along…

    Chinese President Xi Jinping (centre) and his wife Peng Liyuan welcome Russian President Vladimir Putin ahead of a banquet dinner during the BRICS Summit in Xiamen, Fujian province, on September 4, 2017

    The United Nations Security Council’s 15-0 vote to impose a new set of sanctions on North Korea somewhat disguises the critical role played by the Russia-China strategic partnership, the “RC” at the core of the BRICS group.

    The new sanctions are pretty harsh. They include a 30% reduction on crude and refined oil exports to the DPRK; a ban on exports of natural gas; a ban on all North Korean textile exports (which have brought in US$760 million on average over the past three years); and a worldwide ban on new work permits for DPRK citizens (there are over 90,000 currently working abroad.)

    But this is far from what US President Donald Trump’s administration was aiming at, according to the draft Security Council resolution leaked last week. That included an asset freeze and travel ban on Kim Jong-un and other designated DPRK officials, and covered additional “WMD-related items,” Iraqi sanctions-style. It also authorized UN member states to interdict and inspect North Korean vessels in international waters (which amounts to a declaration of war); and, last but not least, a total oil embargo.

    “RC” made it clear it would veto the resolution under these terms. Russian Foreign Minister Sergey Lavrov told the US’ diminishing Secretary of State Rex Tillerson Moscow would only accept language related to “political and diplomatic tools to seek peaceful ways of resolution.” On the oil embargo, President Vladimir Putin said, “cutting off the oil supply to North Korea may harm people in hospitals or other ordinary citizens.”

    Russian Foreign Minister Sergei Lavrov. Photo: Reuters

    Russian Foreign Minister Sergei Lavrov. Photo: Reuters

    “RC” priorities are clear: “stability” in Pyongyang; no regime change; no drastic alteration of the geopolitical chessboard; no massive refugee crisis.

    That does not preclude Beijing from applying pressure on Pyongyang. Branch offices of the Bank of China, China Construction Bank and Agricultural Bank of China in the northeastern border city of Yanji have banned DPRK citizens from opening new accounts. Current accounts are not frozen yet, but deposits and remittances have been suspended.

    To get to the heart of the matter, though, we need to examine what happened last week at the Eastern Economic Forum in Vladivostok – which happens to be only a little over 300 km away from the DPRK’s Punggye-ri missile test site.

    It’s all about the Trans-Korean Railway

    In sharp contrast to the Trump administration and the Beltway’s bellicose rhetoric, what “RC” proposes are essentially 5+1 talks (North Korea, China, Russia, Japan and South Korea, plus the US) on neutral territory, as confirmed by Russian diplomats. In Vladivostok, Putin went out of his way to defuse military hysteria and warn that stepping beyond sanctions would be an “invitation to the graveyard.” Instead, he proposed business deals.

    Largely unreported by Western corporate media, what happened in Vladivostok is really ground-breaking. Moscow and Seoul agreed on a trilateral trade platform, crucially involving Pyongyang, to ultimately invest in connectivity between the whole Korean peninsula and the Russian Far East.

    South Korean Prime Minister Moon Jae-in proposed to Moscow to build no less than “nine bridges” of cooperation: “Nine bridges mean the bridges of gas, railways, the Northern Sea Route, shipbuilding, the creation of working groups, agriculture and other types of cooperation.”

    Crucially, Moon added that the trilateral cooperation would aim at joint projects in the Russian Far East. He knows that “the development of that area will promote the prosperity of our two countries and will also help change North Korea and create the basis for the implementation of the trilateral agreements.”

    Russian President Vladimir Putin and his South Korean counterpart Moon Jae-in visit the Far East Street exhibition at Russky Island in Vladivostok. Photo: Sputnik/Mikhail Klimentyev

    Russian President Vladimir Putin and his South Korean counterpart Moon Jae-in visit the Far East Street exhibition at Russky Island in Vladivostok. Photo: Sputnik / Mikhail Klimentyev

    Adding to the entente, Japanese Foreign Minister Taro Kono and South Korean Foreign Minister Kang Kyung-wha both stressed “strategic cooperation” with “RC”.

    Geo-economics complements geo-politics. Moscow has also approached Tokyo with the idea of building a bridge between the nations. That would physically link Japan to Eurasia – and the vast trade and investment carousel offered by the New Silk Roads, aka, the Belt and Road Initiative (BRI) and the Eurasia Economic Union (EAEU). It would also complement the daring plan to link a Trans-Korean Railway to the Trans-Siberian one.

    Seoul wants a rail network that will physically connect it with the vast Eurasian land bridge, which makes perfect business sense for the fifth largest export economy in the world. Handicapped by North Korea’s isolation, South Korea is in effect cut off from Eurasia by land. The answer is the Trans-Korean Railway.

    Moscow is very much for it, with Putin noting how “we could deliver Russian pipeline gas to Korea and integrate the power lines and railway systems of Russia, the Republic of Korea and North Korea. The implementation of these initiatives will be not only economically beneficial, but will also help build up trust and stability on the Korean Peninsula.”

    Moscow’s strategy, like Beijing’s, is connectivity: the only way to integrate Pyongyang is to keep it involved in economic cooperation via the Trans-Korean-Trans-Siberian connection, pipelines and the development of North Korean ports.

    The DPRK’s delegation in Vladivostok seemed to agree. But not yet. According to North Korea’s Minister for External Economic Affairs, Kim Yong Jae: “We are not opposed to the trilateral cooperation [with Russia and South Korea], but this is not an appropriate situation for this to be implemented.” That implies that for the DPRK the priority is the 5+1 negotiation table.

    Still, the crucial point is that both Seoul and Pyongyang went to Vladivostok, and talked to Moscow. Arguably the key question – the armistice that did not end the Korean War – has to be broached by Putin and the Koreans, without the Americans.

    While the sanctions game ebb and flows, the larger strategy of “RC” is clear – a drive aimed at Eurasian connectivity. The question is how to convince the DPRK to play along.

  • North Korea's Nuclear Tests Could Trigger "Supervolcano" Eruption

    After North Korea’s latest nuclear test, scientists are worried that more underground explosions in the isolated country’s rocky north could set the stage for a deadly volcanic eruption not unlike the one that NASA fears could be brewing in the Yellowstone caldera.

    Following the North’s sixth nuclear test, which produced a blast that, by some estimates, was as powerful as 300 kilo hertz, Chinese authorities have stepped up radiation monitoring and even closed part of their border with North Korea as fallout fears have intensified.

    And now, as Newsweek reports, China has limited access to a nature reserve on its border with North Korea after a mysterious series of seismic shakes at the rogue nation's nuclear test site were detected less than 10 minutes after it conducted its latest test, which also triggered a sizable tremor. The severity of the tremors prompted Beijing to close the site over fears that underground detonations by the North Koreans at a facility near Punggye-ri could lead to rockslides, or worse, trigger an eruption of the active "super volcano" Mount Paektu, according to Disclose.tv.

     

    According to Disclose.tv, the magma and sulfur booms during a supervolcano eruption could kill millions of people in the surrounding area, and potentially endangering all of humanity.

    The volcano, which is sacred to North Korea, is located right on its border with China. China’s closure is in effect for a 70-mile-radius around the detonation site. A blast from a super volcano could be catastrophic, with ash traveling thousands of miles, potentially causing hundreds of thousands of deaths

    "For the safety and convenience of travelers, we have temporarily closed the southern tourist zone of Changbai Mountain," read the message from Chinese authorities, translated by UPI. "Officials are thoroughly investigating the safety of the tourist area." The area will remain closed to the public until "the potential risks disappear," it said.

    But besides radioactive risks, scientists are worried that North Korea’s nuclear tests could disturb could disturb mountains in the Changbai range, along with the still-active Mt. Paektu, triggering the first eruption since 1903.

    A new article in scientific journal Nature’s Scientific Reports states that “an underground nuclear explosion test near an active volcano constitutes a direct threat."

    Scientists wrote that it could “disturb the magma chamber of a volcano, thus accelerating the volcanic activity,” scientists argue.

    “This is an interesting mystery at this point,” Göran Ekström, a seismologist at Columbia University in New York City, told Nature.

    The US Geological Survey estimated the second burst of seismic energy, only eight and a half minutes after the detonation, had a magnitude of 4.1; the detonation itself registered at 6.3. While satellite images do show signs of structural collapse, the movement of rock more closely resembles a landslide.

    North Korea is hardly alone in facing a potentially deadly eruption. Recently, NASA scientists have spoken out about the threat of super volcanoes and the risky methods that could be used to prevent a devastating eruption.

    Lying beneath the tranquil and beautiful settings of Yellowstone National Park in the US is an enormous magma chamber called a caldera. It’s responsible for the geysers and hot springs for which the area is known, but for scientists at NASA, it’s also one of the greatest natural threats to human civilization as we know it.

    Following an article published by BBC about super volcanoes last month, a group of NASA researchers got in touch with the media to share a report previously unseen outside the space agency about the threat Yellowstone poses, and what they hypothesize could possibly be done about it. As one researcher described it, the threat from super volcanos is much higher than the risk from asteroids

    “I was a member of the NASA Advisory Council on Planetary Defense which studied ways for NASA to defend the planet from asteroids and comets,” explains Brian Wilcox of Nasa’s Jet Propulsion Laboratory (JPL) at the California Institute of Technology.  

     

    “I came to the conclusion during that study that the supervolcano threat is substantially greater than the asteroid or comet threat.”

    So, the agency has devised a plan that could ameliorate the volcano threat. The plan, which has yet to be authorized or implemented, would drill up to 10km down into the super volcano and pump down water at high pressure. The circulating water would return at a temperature of around 350C (662F). Thus, slowly day by day, extracting heat from the volcano. And while such a project would come at an estimated cost of around $3.46 billion, it comes with an enticing catch which could convince politicians (taxpayers) to make the investment.

    “Yellowstone currently leaks around 6GW in heat,” Wilcox says. “Through drilling in this way, it could be used to create a geothermal plant, which generates electric power at extremely competitive prices of around $0.10/kWh. You would have to give the geothermal companies incentives to drill somewhat deeper and use hotter water than they usually would, but you would pay back your initial investment, and get electricity which can power the surrounding area for a period of potentially tens of thousands of years. And the long-term benefit is that you prevent a future supervolcano eruption which would devastate humanity.”

    Of course, drilling into a super volcano comes with its own risks – in fact, it could inadvertently cause the eruption scientists are trying to prevent.

    Talk about a volcanic irony…

  • The Race For Deir Ezzor: Russian Jets Strike US-Backed Forces In Syria

    One week ago we wrote that in “The Race For Deir Ezzor: US And Syrian Forces Are About To Collide“, explaining that “as ISIS continues to rapidly collapse in its last two strongholds (Raqqa and Deir Ezzor cities), the competition for recovery of territory seems in full gear between the US-SDF and Syria-Russia alliances.” More importantly, “Deir Ezzor province happens to be Syria’s most oil-rich territory, which means the future of some of Syria’s largest oil fields remains up for grabs.”

    Furthermore, we added that “it looks increasingly like US-backed SDF forces and the Syrian Army could be set to clash as both roll back ISIS lines from either side of the Euphrates. The SDF’s surprisingly rapid advance Friday and Saturday was assisted by US and coalition airstrikes and was further made possible by the Syrian Army’s weakening of ISIS defenses on the southeast side of the river. The airspace over Deir Ezzor is potentially growing even more dangerous as there are substantial rumors that the US coalition has declared a no fly zone (NFZ) over the north side of the Euphrates. In the meantime, Syrian and Russian air operations in the area will only increase with Deir Ezzor military airport’s returning to full service.”

    One week later, that’s precisely what happened, and overnight we got the first glimpse of just what this next stage of the Syria proxy war, now largely devoid of ISIS, will look like, when according to Reuters “U.S.-backed militias”, which have included various and assorted Al-Qaeda offshots, spinoffs and reverse mergers, said they came under attack on Saturday from Russian jets and Syrian government forces in Deir al-Zor province.

    The Syrian Democratic Forces – an alliance of Kurdish and Arab militias fighting with the U.S.-led military coalition –  said the strikes wounded six of its fighters. In a statement carried by Reuters, the SDF said that “our forces east of the Euphrates were hit with an attack from the Russian aircraft and Syrian regime forces, targeting our units in the industrial zone.”

    A Deir Ezzor military council fighter which fights under the SDF holds the council’s flag.

    And, as has been the case for years now, ISIS was used as the strawman to justify escalation on both sides. The SDF accused Damascus of trying to obstruct its battle against Islamic State. Such attacks “waste energies that should be used against terrorism … and open the door to side conflicts,” it said. Right… terrorism. Meanwhile, the real reason for the scramble for Deir Ezzor, imposing one’s influence on this key resources rich region, remains unmentioned even as assaults by the Russian-backed Syrian army and the U.S.-backed SDF have at times raised fears of clashes that could stoke tensions between the competing world powers.

    With Russian and Iran-backed Syrian troops closing in from the west, while US-backed SDF forces operating mostly on the east side, the two factions have mostly stayed out of each other’s way in their “fight against ISIS” with the Euphrates acting as a dividing line.

    And while talks have been under way to extend a formal demarcation line, there has been little progress on the issue. Meanwhile, as Deir Ezzor is set to fall shortly to either government or SDF forces, and any imaginary demarcation line is voided, the simmering proxy war may once again suffer an explosive breakout.

    Ahmed Abu Khawla, the commander of the SDF’s Deir al-Zor military council, said Russian or Syrian fighter jets flew in from government-held territory before dawn.

     

    The warplanes struck as the SDF waged “heated and bloody battles” in the industrial zone on the eastern bank, seizing factories from Islamic State militants, he said.

     

    ”We have requested explanations from the Russian government,“ he told Reuters. ”We have asked for explanations from the coalition … and necessary action to stop these jets.

    There was no immediate comment from the Syrian government or Moscow, and there certainly has been no comment from the US-led coalition on action to stop Russian jets. Incidentally, if anyone wants a sign from Trump that he has truly turned his back on Putin, it won’t come from the confiscation of some unneeded Russian assets or confiscation of Russian diplomatic buildings in the US, but from the US launching a firm Russian counter-offensive in Syria.

    Also on Saturday, a senior aide to President Bashar al-Assad said the government would fight any force, including the U.S.-backed militias, to recapture the entire country. ”I‘m not saying this will happen tomorrow … but this is the strategic intent,” Bouthaina Shaaban said in a TV interview according to Reuters.

    Ironically, The U.S.-led coalition said last week that the SDF did not plan to enter Deir Ezzor city, where Syrian troops recently broke an Islamic State siege that had lasted three years. Just a few days later, however, they appears to have changed their mind.

    Meanwhile, seeking to maintain the offensive momentum, a pro-Damascus military alliance launched attacks on Saturday from the southern corner of Deir Ezzor province to drive Islamic State from the Iraqi border. The last local vestige of the Islamic State is also coming under attack by U.S.-backed Iraqi government forces just over the border from Syria’s Deir Ezzor inside Iraq.

    With the fate of Deir Ezzor – and much of the oil in the region – set to be sealed in the coming days, the Syrian war which has gradually disappeared from both the front pages and the public consciouness, may make a strong comeback, especially if it is Syria/Russia/Iran that first gains control of this key regional outpost.

  • Here's What Your Identity Sells For On The Dark Web

    Millions of Americans who trusted Equifax with sensitive personal and financial data, including social security numbers and credit-card information, are now nervously wondering whether they will be among the unlucky minority of affected customers whose identities are successfully “repurposed” by online criminal groups.

    One researcher from security firm SecureWorks shared some details about today’s burgeoning marketplace for stolen data with Bloomberg, and the conclusion is clear: It is now easier – and cheaper – for criminals to access and abuse illicit data than ever before. In fact, a high-limit American express card with a high chance of working can be purchased online for less than $20. Criminals can buy files with thousands of low-limit card numbers for pennies on the dollar.

    According to Bloomberg, “verified” high-limit credit cards from developed countries like the US, Japan, and South Korea are selling on the dark web for the bitcoin equivalent of about $10 to $20.

    “Verified” means the seller has tested out transactions on the card and found it hasn’t been canceled yet. For scammers on a budget, there’s unverified stolen credit card data, which comes out to pennies a card when bought in bulk.

    Here’s a screengrab from one dark-web marketplace.

    Luckily for criminals, cards generally aren’t selling any cheaper on the dark web these days, said Alex Tilley, a researcher at Secureworks. Today’s buyers are more likely to get higher-quality cards, ones with sizable limits that can be used fraudulently with ease. It isn’t as hit-or-miss as it used to be, a welcome change for criminals, chilling news for most of us.

    Criminals have even set up sophisticated “rating systems” to help value the data. Business cards are preferred, Tilley said, because they don’t have a limit. Those and high-end personal cards—say, a Platinum American Express that has been verified and has an 85 percent rating (judged by the seller to have an 85 percent chance of being successfully used in a fraud)—will go for $15 to $20. A regular Mastercard that doesn’t have a high limit might go for $9.

    One underground hacker market inexplicably called Trump’s Dumps is selling full identities of individuals just like you for as little as $10 apiece. They’re called fullz, “dossiers that provide enough financial, geographic and biographical information on a victim to facilitate identity theft or other impersonation-based fraud.” Fullz can help a criminal get past those irritating “secret questions” that sites ask to verify your identity.

    Recently, Secureworks’ researchers have seen more offers of bulk pre-verified card details, along with more identifying information about the owners. In some cases, offers even include the cardholder’s mother’s maiden name. Still, they cost just $10 to $12. Below is a fullz offer with a lot of personal identification on a Korean consumer.

    In a massive breach like Equifax, hackers can easily walk away with hundreds of millions of dollars in profits from selling the data. Meanwhile, the identity thieves who purchased it can reap their own fortune running their scams.

    Congress, the FTC and Equifax customers – enraged by both the company’s reluctance to initially disclose the breach and its carelessness (some would say tight-fistedness) concerning its cybersecurity defenses – have buried the company in lawsuits and official inquiries.

    As USA Today revealed yesterday, hackers took advantage of an Equifax security vulnerability two months after an industry group discovered the coding flaw and shared a fix for it, raising questions about why Equifax didn't update its software successfully when the danger became known.

    We’re looking forward to hearing the whole story from CEO Rick Smith when he testifies before Congress early next month. Whether Smith manages to hang on to his job remains to be seen – calls for his resignation after a 12-year-long scandal-free tenure are mounting. CNBC's Jim Cramer said last night that Smith "should be fired today."

    But perhaps more worrying for Smith and his C-Suite companions are calls from North Dakota Sen. Heidi Heitkamp, who has demanded a criminal investigation into whether the company's executives – several of whom sold stock during the period between when the company first learned about the hack and when it disclosed it to the public – commited securities fraud.

    "If that happened, then somebody needs to go to jail," she said.

     

  • How Does Your State Measure Up On Student Free Speech?

    Authored by Casey Mattox via Alliance Defending Freedom,

    More than four decades ago, the Supreme Court made it clear that public college students do not sacrifice their constitutional rights when they arrive on campus, finding “no room for the view that … First Amendment protections should apply with less force on college campuses than in the community at large.”

    Yet the reality of most students does not reflect the promise of the “marketplace of ideas.” Universities are regulating what students may say, when and where they can say it, and even who will speak for them. Increasingly, state legislatures are responding by enacting laws to protect student free speech.

    We are pleased to release today a review of these state laws – highlighting the states that have protected free speech on their state-funded campuses … and those that have a lot of work to do.

    The Problem

    For decades, universities have enacted “speech codes” to regulate student expression. These policies limit what students may say and often take the form of “harassment,” “civility,” or similar policies that lump constitutionally protected speech in with true threats, harassment, and other unprotected speech. For instance, just last year, Alliance Defending Freedom (ADF) successfully challenged an Iowa State policy that deemed speech “harassment” if other students thought it was not “legitimate” or “necessary” or “lacked a constructive purpose.” Despite these policies being clearly unconstitutional, they are very common.

    In addition to restricting what students may say, many universities have also strictly limited when and where students may speak – often combining these limits with requirements that administrators approve student speech or literature distribution in advance. North Carolina State required students to notify the administration five days in advance of any oral or written communication anywhere on campus until we sued and a federal court ordered the policy changed. And one school has even arrested Young Americans for Liberty members for distributing the Constitution on their campus.

    Finally, free speech is only free if students decide who speaks for them. Students regularly join together with like-minded students to advocate for any number of religious, political, or other causes, building community with one another and enriching the campus environment through their advocacy. Like all student groups, they seek to elect leaders who actually share the views that the group intends to promote. But some universities have tried to prevent religious and political student organizations from having that choice.

    Why It Matters

    Free speech on campus affects all of us. Today’s college students are tomorrow’s legislators, judges, teachers, and voters.

    The lessons they are learning about how the First Amendment works will impact our future because what happens on campus will not stay on campus.

    Indeed, the Supreme Court has even warned that if we do not protect free speech on campus, “our civilization will stagnate and die.” As dramatic as that sounds, when two-thirds of all Americans now attend college it is only natural that our broader culture will be shaped by what we learn about the value of free speech and religious freedom in those formative years.

    How States Are Responding

    While the First Amendment protects free speech, universities continue to violate these core constitutional freedoms. The ADF Center for Academic Freedom has litigated federal lawsuits against over a dozen colleges and universities in the last year alone. And we have a 90 percent success rate in challenging these violations of students’ First Amendment rights. If you’re a student, you should know your rights, exercise them, and ensure that your campus is respecting the First Amendment.

    Appalled that their public institutions are suppressing rather than supporting free speech and association, states are increasingly enacting legislation to ensure that public universities affirm and protect those values. There are a number of model bills – all of which have their merits. But the American Legislative Exchange Council’s new “FORUM Act” would address all three of these threats to student free speech: ending speech codes, speech zones, and violations of students’ freedom of association. The legislation would also allow students to pursue legal action in state or federal court when their rights are violated.

    As state legislatures consider ways to address the threats to free speech on their tax-funded campuses, we are pleased to provide this guide to current state laws protecting the rights of free speech and association on public university campuses. It is our hope that we will have to update this information frequently as more states join the fight to defend the First Amendment on our campuses, teaching students to know their own constitutional rights and respect the constitutional rights of others.

  • The 30 US Metros With The Highest And Lowest Incomes

    Authored by Wolf Richter via WolfStreet.com,

    Breath-taking differences in a vast country.

    The Census Bureau released another data trove this week for 2016, based on the American Community Survey. Among many other data points, the survey details median household incomes by geographic location, such as by metro area, county, or state. And they show just how enormous the income differences in the US are from city to city.

    Of the 382 metropolitan statistical areas (MSA) that the US government recognizes, the median income of $110,000 in Silicon Valley is over three times the median income of $35,600 in Laredo, TX.

    These MSAs can be large. For example, the extended San Francisco Bay Area is divided in several metros including the two biggest:

    • San Jose-Sunnyvale-Santa Clara, which is the southern portion of Silicon Valley and includes Palo Alto.
    • San Francisco-Oakland-Hayward, which includes five counties (San Francisco, Alameda, Marin, Contra Costa, and San Mateo) that make up the northern part of Silicon Valley, San Francisco, parts of the East Bay, and a part of the North Bay.

    These two are also the metros that had the highest median household incomes in the US in 2016, of $110,040 and $96,677 respectively.

    “Household income” is income by all household members and from all sources of money, including “earnings” (wages, salaries, and the like) and investment income such as interest, dividends, and rents (#11-#13):

    1. Earnings
    2. Unemployment compensation
    3. Workers’ compensation
    4. Social security
    5. Supplemental security income
    6. Public assistance
    7. Veterans’ payments
    8. Survivor benefits
    9. Disability benefits
    10. Pension or retirement income
    11. Interest
    12. Dividends
    13. Rents, royalties, and estates and trusts
    14. Educational assistance
    15. Alimony
    16. Child support
    17. Financial assistance from outside of the household
    18. Other income

    Below are the 30 metros in the US with the highest household incomes. Those in California are color-coded: bright red for the extended Bay Area, burgundy (sort of) for Southern California, and neon-pink for the Central Coast.

    In total, nine of the 30 metros with the highest median incomes are in California. There are many up and down the East Coast and a number of them in the middle of the country. Hawaii has two metros on the list, as has Alaska. But even within the top 30, the median household income of Number One is 57% higher than that of Number 30:

    Below here are the 30 of the 382 metros with the lowest median household incomes. Note these lists represent the extremes in the US. There are 322 MSAs in between the two lists, and their income levels cluster closely around the national median household income:

    The comparison shows just how vast the income differences by geographical regions are in a vast country, and it also explains a host of other differences, such as home prices and rents, where $1.2 million, for example, buys a median condo in San Francisco (these are nothing special) or a palatial house in Laredo, TX.

    But “median household income” is an aggregate number that hides as much as it reveals. Here are some details. Read…  The Chilling Fact “Record Median Household Income” is Hiding

  • S&P On The Verge Of History

    U.S. stocks have risen more in the past eight years than in almost any other post-World War II time of economic growth, as defined by the National Bureau of Economic Research.

    The logic here is that economic expansions fuel bull markets and so it’s reasonable to measure market recoveries after a period of macro contraction ends.

    Using that definition, let’s review how the S&P 500 has performed during the last ten economic recoveries. To be precise, the birth of the stock market’s bull market is dated as the first day after an NBER-defined recession has ended. The market run continues through the peak.

    The S&P 500 Index jumped 172 percent from July 2009, when the current expansion started, through Wednesday. The biggest advance was about 300 percent and occurred from April 1991 to March 2001, when Internet-related stocks soared.

    As Capital Speculator blog's James Picerno notes, the question before the house: Will the momentum of late endure long enough to overtake the 1991-2001 record in duration and/or magnitude?

    If so, the bull market in the here and now has to last another 463 trading days, which translates into a market rally that goes deep into 2019.

    There's just one thing wrong…

    Remember – the 'market' is not the 'economy'… or maybe it is in the new normal?

  • Is the Difference Now Permanent?

    From the Slope of Hope: I will start off with a chart that, in a sea of tens of thousands of charts, stood out as shocking:

    0916-drawdown

    What the chart represents is the percentage drop from whatever the record high was. In other words, it shows the percentage loss a person would have had if they had bought at the highest point in the history of the market.

    What stunned me about the chart was how for nearly half a decade stocks have been absolutely “pinned” to the top. There was a tiny dip in late 2015, but since that time, there hasn’t been a single drop in the market of even 5%, and even those tiny 1% and 2% drops have been utterly healed.

    In other words, hell on earth for an equity bear. Absolute. Living. Hell.

    Of course, equity bulls are doing fine, and those who didn’t trade the market prior to 2012 must figure this is the easiest thing in the known universe. Indeed, they probably feel like geniuses. Because all you do is deposit some money, pick a few random stocks, and voila, you have more money than before.

    Why should anybody even bother working, with such easy money out there?

    Of course, those of us who study markets for a living know that there’s a pretty simple reason for this unidirectional “market” of ours……

    0916-correla

    Hell, it even applies right down to the individual stocks!

    So the question I ponder with increasing frequency now – – and it’s a question whose potential answer chills me to the bone – – is this: what if it really is different this time? And, more important, what if this difference is permanent?

    What if, in the relatively brief history of public equity markets, it simply took this much progress in technology, central bank knowledge, and economic scholarship to finally figure out how to completely control the market without serious price inflation?

    What if, as recent history shows, equities will merely increase in price in perpetuity? They might not move that swiftly, but they will, more or less, become more valuable, with a sprinkling of tiny drops here and there to make sure people don’t go completely hog wild.

    Let’s think of this from a different angle: as you probably know, the market for diamonds is tightly controlled. De Beers has mastered the art of the cartel. If diamonds were simply in a huge global open market, with price discovery fully allowed, there is no doubt prices would be far lower (albeit more volatile), because they actually are NOT that rare or precious.

    As it is, though, De Beers has balanced massive marketing (“a diamond is forever“………”how can you make two months’ salary last forever?”) with artificially-controlled supply to yield a market with pretty much zero volatility and a steadily increasing price.

    Maybe the chart above is the future of stocks. I really don’t know.

    But do you notice there’s no active public market for buying and selling diamond as a commodity? And that there aren’t any technical analysts for diamond charts? Or that there’s no national network devoted to news related to diamonds? It’s because all of that stuff would be drop-dead boring, because prices are controlled, and predictable, and not worthy of examination. Someone figured out how to control the market. And thus the “market” no longer exists.

    God help us all…………us chartists especially………..if this is the new world order for equities.

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Today’s News 16th September 2017

  • A Glimmer Of Hope? Russia, US Officials Revive Dialogue On Arms Control

    Authored by Andrei Akulov via The Strategic Culture Foundation,

    The New Start Treaty was in focus of the talks held in Helsinki between Russian Deputy Foreign Minister Sergei Ryabkov and US Undersecretary of State Thomas Shannon on September 11-12. The parties agreed that the treaty should be implemented without exception. It was revealed that expert consultations on the future of the agreement had begun. A meeting of the US-Russian bilateral commission on implementing the New START would take place in the near future so that the two sides could continue their discussion of the technical aspects of implementation.

    In force since 2011, New START foresees the reduction of both countries' nuclear arsenals to 1,550 warheads and 700 operationally deployed launch systems by 2018. The treaty also obliges Moscow and Washington to exchange information about their nuclear weapon stockpiles. It is one of the few nuclear agreements still being honored amid the current strained relations between Washington and Moscow. The treaty is set to expire in 2021 and stipulates that the parties may agree to extend it for a period of no more than five years.

    With no negotiations in sight on a new strategic arms reduction agreement, it would be prudent to extend the treaty till 2026. True, it would be even more beneficial to have a new treaty, if possible, but there are obstacles on the way. At this level of reductions, other nuclear powers should join. This prospect is hardly feasible at present, and yet step-by-step progress toward constructive consultations on nuclear arms reductions and transparency measures is possible. The US program of creating a global missile defense is also a hindrance. There is also a problem of mistrust against the background of the relationship at its lowest ebb.

    An agreement to extend the landmark treaty is the way to stabilize the ties and prevent a competition. It would revive the hopes for saving the arms control regime, which is being eroded, to put the world back to the brink of nuclear war where it had been before the Partial Nuclear Test Ban Treaty was signed in 1963. The mutual limits and the robust verification and compliance regime, including satellites, on-site inspections, required notifications, and data exchanges enhance stability and reduce incentives for engaging in an arms race. With no verification procedures in place, the leaderships of both countries would lose a critical source of intelligence, hampering policymakers’ ability to make informed decisions. By extending New START, the parties could add stability at the time of increasing tensions.

    In February, President Trump decried the New START Treaty. He said it was one-sided and «Just another bad deal that the country made, whether it's START, whether it's the Iran deal … We're going to start making good deals», he said in an interview with Reuters. He also responded negatively to Russian President Putin’s suggestion to extend that treaty in a January phone call.

    The military leaders appear to have a different view. Gen. John Hyten, the head of US Strategic Command, told Congress in March that he is a “big supporter” of the treaty. According to him, “bilateral, verifiable arms control agreements are essential to our ability to provide an effective deterrent.” Secretaries of Defense and State, support New START. The Federation of American Scientists supports the treaty. European allies also back the idea of keeping New START in force. According to Federica Mogherini, European Union High Representative for Foreign Affairs and Security Policy, “The right path is the one marked by the New START Treaty and its implementation. This is the kind of cooperation between Russia and the United States that we Europeans like to see.”

    The United States is currently pursuing a near-complete overhaul of all elements of its strategic nuclear potential. Over the next 30 years, it plans to have a new ICBM, a new strategic submarine, a new bomber, and a new nuclear cruise missile. However, none of the plans are inhibited by New START. Russia is going through modernization of its nuclear triad. It’s absolutely important to keep the limitations and verification procedures in place to ensure adequate planning.

    Extending New START could help create a positive atmosphere for improving the US-Russia relationship.

    It would help head off unconstrained nuclear arms race and global security. Failing to pursue an extension would be a major missed opportunity.

    Nobody expects spectacular breakthroughs, but it’s good news the issue of strategic stability was at last addressed during a high level Russia-US meeting. It was abnormal that the nuclear arms reductions were not part of the bilateral agenda for such a long period of time. It’s hard to overestimate the importance of the fact that the dialogue is revived at the time when the entire arms control and non-proliferation regime is unraveling. Looks like at last a glimmer of light appeared at the end of the tunnel.

  • Fearful Californians Prepare For A Nuclear Attack: "A Lot Of People Will Be Killed"

    With each passing day and each new ICBM launch from a seemingly unhinged North Korean dictator, the fears of an attack on the U.S. mainland, though faint, increasingly weigh on the hearts and minds of Americans, particularly those in California.  As The Guardian points out today, those fears have even prompted a group of California public health officials and emergency responders to gather for a strategy session with Hal Kempfer, a retired marine lieutenant colonel, to discuss which areas are the most likely targets and how citizens should respond to an attack.

    Hal Kempfer, a noted international security expert, is getting a roomful of California public health officials and emergency responders to think about the unthinkable – a nuclear bomb exploding at the port of Long Beach, about four miles away.

     

    “A lot of people will be killed,” he said, “but a large percentage of the population will survive. They will be at risk and they will need help.”

     

    “If you want to mess up southern California, if you want to mess up the west coast, if you want to mess up our country – where do you attack?” Kempfer asks. “If I’m sitting in North Korea and looking at possible targets, I’m going to be looking at Long Beach very closely.”

     

    He talks about the port and downtown Long Beach being “toast” – no exaggeration, since the blast wave is likely to vaporize everything in its immediate path. But the city health department, the Long Beach airport and fire department might not be; they are all somewhat protected by a hilly area that is likely to halt the initial blast wave. And so the city can, tentatively, think about setting up a center of emergency operations.

     

    Of course, the radioactive fallout created as the explosion gathers up tremendous quantities of dust and ocean water and spits them into the atmosphere would represent a secondary grave risk, especially in the first hours after an attack.

     

    Not to mention the electromagnetic pulse that is likely to knock out electronic systems including phones and computers, the pile-ups expected on the freeways as drivers are blinded by the flash of the explosion, the rush for food, water and gasoline as millions of Angelenos attempt to drive out of the region, and the terror triggered by even the idea of a second, follow-up attack.

    Meanwhile, lest you think this was all just a creative way for some public employees to skip work for a day, Ventura County, located just northwest of Los Angeles, has even taken the unusual step of prepping a 250-page plan on how to respond to the humanitarian crisis that would result from a nuclear attack in Los Angeles. 

    In fact, their efforts even include this truly bizarre public service announcement that instructs folks to shelter in place and cover windows with plastic.

    Of course, as we pointed out back in August, while a global nuclear confrontation is generally viewed as a bad thing, for Ron Hubbard, President of Atlas Survival Shelters in Los Angeles, it has resulted in an economic windfall as a staggering number of Californians have suddenly turned into doomsday preppers.

    “It’s crazy, I’ve never seen anything like it,” Ron Hubbard, president of Atlas Survival Shelters, told Fox11. “It’s all over the country. I sold shelters today in North Carolina, Tennessee, Texas, Oklahoma, Louisiana, Oregon, Washington, Arizona, California.”

     

    The company, based in Montebello in eastern Los Angeles, sells shelters priced from $10,000 to $100,000. Hubbard told the station that the shelters are designed to be buried 20 feet below ground and can sustain survivors for up to one year, depending on the size and model.

     

    He told the station he had sold more than 30 units in recent days, including to customers in Japan.

     

    All that said, Kempfer points out that there is a silver lining here because any attack from North Korea likely wouldn’t result in “your traditional nuclear apocalypse scenario” because Kim Jong-Un probably only has weapons capable of destroying about 1 square mile at a time.

    Rather, it’s likely to be a Hiroshima-sized bomb – large enough to obliterate everything within a square-mile radius and kill tens of thousands of people, either immediately or through the lingering effects of radiation. But still leaving millions of survivors across the region who would need help.

     

    “We’re talking about smaller North Korean things,” Kempfer emphasized, though the word “smaller” sounds very far from reassuring. “This is not your traditional nuclear apocalypse scenario.”

    So, Californians at least have that going for them, which is nice.

  • Jim Rickards' "Golden Solution" To America's Debt Crisis

    Authored by Jim Rickards via DailyReckoning.com,

    Right now, the United States is officially $20 trillion in debt. Over half of that $20 trillion was added over the past decade.

    And it looks like annual deficits will be at the trillion dollar level sooner than later when projected spending is factored in.

    Basically, the United States is going broke.

    I don’t say that to be hyperbolic. I’m not looking to scare people or attract attention to myself. It’s just an honest assessment, based on the numbers.

    Now, a $20 trillion debt would be fine if we had a $50 trillion economy.

    The debt-to-GDP ratio in that example would be 40%. But we don’t have a $50 trillion economy. We have about a $19 trillion economy, which means our debt is bigger than our economy.

    When is the debt-to-GDP ratio too high? When does a country reach the point that it either turns things around or ends up like Greece?

    Economists Ken Rogoff and Carmen Reinhart carried out a long historical survey going back 800 years, looking at individual countries, or empires in some cases, that have gone broke or defaulted on their debt.

    They put the danger zone at a debt-to-GDP ratio of 90%. Once it reaches 90%, they found, a turning point arrives…

    At that point, a dollar of debt yields less than a dollar of output. Debt becomes an actual drag on growth.

    What is the current U.S. debt-to-GDP ratio?

    105%.

    We are deep into the red zone, that is. And we’re only going deeper.

    The U.S. has a 105% debt to GDP ratio, trillion dollar deficits on the way, more spending on the way.

    We’re getting more and more like Greece. We’re heading for a sovereign debt crisis. That’s not an opinion; it’s based on the numbers.

    How do we get out of it?

    For elites, there is really only one way out at this point is, and that’s inflation.

    And they’re right on one point. Tax cuts won’t do it, structural changes to the economy wouldn’t do it. Both would help if done properly, but the problem is simply far too large.

    There’s only one solution left, inflation.

    Now, the Fed printed about $4 trillion over the past several years and we barely have had any inflation at all.

    But most of the new money was given by the Fed to the banks, who turned around and parked it on deposit at the Fed to gain interest. The money never made it out into the economy, where it would produce inflation.

    The bottom line is that not even money printing has worked to get inflation moving.

    Is there anything left in the bag of tricks?

    There is actually. The Fed could actually cause inflation in about 15 minutes if it used it.

    How?

    The Fed can call a board meeting, vote on a new policy, walk outside and announce to the world that effective immediately, the price of gold is $5,000 per ounce.

    They could make that new price stick by using the Treasury’s gold in Fort Knox and the major U.S. bank gold dealers to conduct “open market operations” in gold.

    They will be a buyer if the price hits $4,950 per ounce or less and a seller if the price hits $5,050 per ounce or higher. They will print money when they buy and reduce the money supply when they sell via the banks.

    The Fed would target the gold price rather than interest rates.

    The point is to cause a generalized increase in the price level. A rise in the price of gold from $1,350 per ounce to $5,000 per ounce is a massive devaluation of the dollar when measured in the quantity of gold that one dollar can buy.

    There it is — massive inflation in 15 minutes: the time it takes to vote on the new policy.

    Don’t think this is possible? It’s happened in the U.S. twice in the past 80 years.

    The first time was in 1933 when President Franklin Roosevelt ordered an increase in the gold price from $20.67 per ounce to $35.00 per ounce, nearly a 75% rise in the dollar price of gold.

    He did this to break the deflation of the Great Depression, and it worked. The economy grew strongly from 1934-36.

    The second time was in the 1970s when Nixon ended the conversion of dollars into gold by U.S. trading partners. Nixon did not want inflation, but he got it.

    Gold went from $35 per ounce to $800 per ounce in less than nine years, a 2,200% increase. U.S. dollar inflation was over 50% from 1977-1981. The value of the dollar was cut in half in those five years.

    History shows that raising the dollar price of gold is the quickest way to cause general inflation. If the markets don’t do it, the government can. It works every time.

    But what people don’t realize is that there’s a way gold can be used to work around a debt ceiling crisis if an agreement isn’t reached in the months ahead.

    I call it the weird gold trick, and it’s never seen discussed anywhere outside of some very technical academic circles.

    It may sound weird, but it actually works. Here’s how…

    When the Treasury took control of all the nation’s gold during the Depression under the Gold Reserve Act of 1934, it also took control of the Federal Reserve’s gold.

    But we have a Fifth Amendment in this country which says the government can’t seize private property without just compensation. And despite its name, the Federal Reserve is not technically a government institution.

    So the Treasury gave the Federal Reserve a gold certificate as compensation under the Fifth Amendment (to this day, that gold certificate is still on the Fed’s balance sheet).

    Now come forward to 1953.

    The Eisenhower administration actually had the same debt ceiling problem we have today. And Congress didn’t raise the debt ceiling in time. Eisenhower and his Treasury secretary realized they couldn’t pay the bills.

    What happened?

    They turned to the weird gold trick to get the money. It turned out that the gold certificate the Treasury gave the Fed in 1934 did not account for all the gold the Treasury had. It did not account for all the gold in the Treasury’s possession.

    The Treasury calculated the difference, sent the Fed a new certificate for the difference and said, “Fed, give me the money.” It did. So the government got the money it needed from the Treasury gold until Congress increased the debt ceiling.

    That ability exists today. In fact, it is exists in much a much larger form, and here’s why…

    Right now, the Fed’s gold certificate values gold at $42.22 an ounce. That’s not anywhere near the market price of gold, which is about $1,330 an ounce.

    Now, the Treasury could issue the Fed a new gold certificate valuing the 8,000 tons of Treasury gold at $1,330 an ounce. They could take today’s market price of $1,330, subtract the official $42.22 price, and multiply the difference by 8,000 tons.

    I’ve done the math, and that number comes fairly close to $400 billion.

    In other words, tomorrow morning the Treasury could issue the Fed a gold certificate for the 8,000 tons in Fort Knox at $1,330 an ounce and tell the Fed, “Give us the difference over $42 an ounce.”

    The Treasury would have close to $400 billion out of thin air with no debt. It would not add to the debt because the Treasury already has the gold. It’s just taking an asset and marking it to market.

    If the debt ceiling isn’t raised, this gold certificate trick could finance the government for almost an entire year, because we have about a $400 billion deficit.

    It’s not a fantasy. It was done twice. It was done in 1934 and it was done again in 1953 by the Eisenhower administration. It could be done again. It doesn’t require legislation.

    Is the government working on this gold trick I just described? I don’t know.

    But it’s suspicious that Treasury Secretary Mnuchin recently went to inspect the Fort Knox gold. He was only the third Treasury secretary in history to visit Fort Knox, and the first since 1948. The visit was highly, highly unusual.

    I’ll be keeping an eye on this space, but the real message is that the solutions to current debt levels are inflationary.

    They involve a dollar reset, or a dollar reboot. That means revaluing the dollar either through a higher gold price or marking the gold to market and giving the government money.

    There’s a lot of moving parts here, but they all point in one direction, which is higher inflation. It’s the only way to keep America from going broke. Unfortunately, it will also make your money worth less.

  • Apple's New "FaceID" Could Be A Powerful Mass Spying Tool

    Authored by Mac Slavo via SHTFplan.com,

    On Tuesday, Apple revealed their newest phone. The new line was anticipated by Apple users and is another cult favorite.  But many are rightly skeptical of the “FaceID” feature.

    FaceID, is a tool that would use facial recognition to identify individuals and unlock their phones for use. Unsurprisingly, this has generated some major anxiety about mass spying and privacy concerns. Retailers already have a desire for facial recognition technology. They want to monitor consumers, and without legally binding terms and Apple could use FaceID to track consumer patterns at its stores or develop and sell data to others.

    That seems minor on the surface, but the ramifications could be enormous. 

    It’s also highly possible that police would be able to more easily unlock phones without consent by simply holding an individual’s phone up to his or her face, violating the rights of the person to privacy.

    But FaceID should create fear about another form of government surveillance too. And this one is a rights violation of every person on earth: mass scans to identify individuals based on face profiles. Law enforcement is rapidly increasing their use of facial recognition; one in two American adults are already enrolled in a law enforcement facial recognition network, and at least one in four police departments has the capability to run face recognition searches. This could make Apple the target for a new mass surveillance order.

    While Facebook has a powerful facial recognition system, it doesn’t maintain the operating systems that control the cameras on phones, tablets, and laptops that stare at us every day.

    Apple’s new system completely changes that. For the first time, a company will have a facial recognition system with millions of profiles, and the hardware to scan and identify faces throughout the world.

    According to Wired, this is a system already ripe for government abuse. The government could issue an order to Apple with a set of targets and instructions to scan iPhones, iPads, and Macs to search for specific targets based on FaceID, and then Apple would provide the government with those targets’ location based on the GPS data of devices’ that receive a match. Apple has a good record of fighting for user privacy, but there’s only so much the company could do if its objections to an order are turned down by the courts. And the government is already looking into how this could benefit them, but are hiding behind the guise of “privacy.” On Wednesday Sen. Al Franken (D-Minnesota) released a letter to Apple CEO Tim Cook, asking how the company will handle the technology’s security and privacy implications.

    But this type of sleazy “Big Brother” activity by the government is not new.

    Over the last decade the government has increasingly embraced this type of mass scan method. Edward Snowden’s disclosures revealed the existence of Upstream, a program under FISA Section 702 (set to expire in just a few months). With Upstream, the NSA scans all internet communications going into and out of the United States for surveillance targets’ emails, as well as IP addresses and what the agency has called cybersignatures. And last year Reuters revealed that Yahoo, in compliance with a government order, built custom software to scan hundreds of millions of email accounts for content that contained a digital signature used by surveillance targets. –Wired

    Mass facial recognition scans are unconstitutional and a gross violation of human privacy rights. But that has yet to stop the overreaching government from its pursuit of an even more effective method of their goal of dystopian mass surveillance.

  • Syria's President Exposed A Flaw In US Foreign Policy That No One Wants To Talk About

    Authored by Darius Shahtahmasebi via TheAntiMedia.org,

    In an interview with RT in 2015, Syrian President Bashar al-Assad uttered perhaps one of his most intriguing statements since the Syrian conflict erupted in 2011. Assad stated:

    “Western propaganda has, from the very beginning, been about the cause of the problem being the president. Why? Because they want to portray the whole problem in Syria lies in one individual; and consequently the natural reaction for many people is that, if the problem lies in one individual, that individual should not be more important than the entire homeland. So let that individual go and things will be alright. That’s how they oversimplify things in the West.”  [emphasis added]

    He continued:

    Notice what happened in the Western media since the coup in Ukraine. What happened? President Putin was transformed from a friend of the West to a foe and, yet again, he was characterized as a tsar…This is Western propaganda. They say that if the president went things will get better. [emphasis added]

    Putting aside Assad’s vast and extensive list of war crimes and crimes against humanity, Assad highlighted one of the major flaws in Western thinking regarding America’s hostile policies toward a number of independent states.

    Just look at the current to-and-fro-ing between North Korea and the United States to gather an accurate picture of what is being referred to here. The problem of North Korea is consistently portrayed in the media as caused by one person (current leader Kim Jong-un), a narrative that ultimately ignores the role America and its allies have played in this current crisis. As Anti-Media previously highlighted:

    “…the problem [North Korean crisis] is constantly framed as one caused by North Korea alone, not the United States. ‘How to Deal With North Korea,’ the Atlantic explains. ‘What Can Trump Do About North Korea?’ the New York Times asks. ‘What Can Possibly Be Done About North Korea,’ the Huffington Post queries. Time provides 6 experts discussing ‘How We Can Solve the Problem’ (of North Korea). ‘North Korea – what can the outside world do?’ asks the BBC.”

    What the media is really advancing here – particularly when one talks about a military option as a response to dealing with North Korea’s rogue actions – is the notion that if the U.S. could only take out Kim Jong-un, the problem of North Korea would disappear.

    Would the death of one man rid every single North Korean of the hostility and hatred they harbor toward the United States when many know full well that in the early 1950s the U.S. bombed North Korea so relentlessly they eventually ran out of targets to hit — that the U.S. military killed off at least 20 percent of the civilian population?

    If Kim Jong-un is removed, will North Koreans suddenly forget that nearly every North Korean alive today has a family relative that was killed by the United States in the 1950s?

    In the simple corporate media narrative, yes they will. Killing that one person and removing them from office will not only save the country they brutalize but will also provide security and stability for the rest of the world.

    Never mind that prior to the U.S.-NATO onslaught of Libya in 2011, Libya had the highest standard of living in the African continent. The Times once admitted that its healthcare system was the “envy of the region.” Now, the country has completely collapsed, with well over two million children out of school, countless migrants drowning in its waters, extremism running unchecked and unchallenged, and traders openly selling slaves like a commodity.

    Let’s suppose every single accusation against Libyan leader Muammar Gaddafi was true (they weren’t); how can it be said that destroying a country’s infrastructure and assassinating its leader in flagrant disregard of international law is a realistic solution to any problem? If you oppose Donald Trump, would a Russian-led military intervention solve your problems with the country he rules over?

    Forget what you think you know about Saddam Hussein, Muammar Gaddafi, Kim Jong-un, Bashar al-Assad, Vladimir Putin, and Venezuela’s Nicolas Maduro – the narrative Western governments and their media mouthpieces have promulgated for the last few decades remains completely nonsensical. You can’t solve Syria’s or Venezuela’s problems by removing their current leaders, especially if you attempt to do it by force. Anyone who claims this is possible is lying to you and is also too naïve and indolent to bother researching the current situations in Afghanistan, Yemen, Libya, Iraq – to name a few.

    The fact that the U.S. evidently doesn’t want to solve any problems at all – that it merely seeks to overthrow leaders that don’t succumb to its wishes – is a topic for a separate article but is certainly worth mentioning here as well.

    The same can ultimately be said of Donald Trump. Since his election victory, many celebrities, media pundits, and members of the intelligence community have sought to unseat and discredit him. Yet Donald Trump is merely a horrifying symptom of America’s problems; to think he alone caused them and that by removing him from office the U.S. would suddenly become a safe-haven of freedom and liberty is nothing short of idiotic.

    If you agree with the latter sentiment, you must also concede that the problems facing North Korea, Syria, Venezuela, and elsewhere could never be solved by the U.S. forcibly removing their leaders.

    If Assad was removed from Syria, would extremism disappear or would it thrive in the political vacuum as it did in Iraq? Could Syria’s internal issues — which are much more extensive than the corporate media would have us believe — be solved by something as simple as removing its current leader? Can anyone name a country where this has been tried and tested as a true model for solving a sovereign nation’s internal crises? Anyone who truly believes a country’s problems can be solved in this facile way needs to do a bit more reading.

    If you can recognize this dilemma, you can agree that it’s time for the media to completely undo the simplicity in its coverage of these issues and start reporting on the genuine diplomatic options that could be pursued, instead.

  • Irma's Aftermath: "For The First Time In 300 Years, There's Not A Single Living Person On Barbuda"

    Exactly one week ago, Prime Minister Gaston Browne surveyed the damage on his tiny Caribbean island of Barbuda and declared that Hurricane Irma had completely devastated the island and left 90% of all dwellings leveled.  Browne went on to say that Irma’s “absolute devastation” meant that Barbuda was “basically uninhabitable” for the 1,800 people who called it home.

    Now, according Barbuda’s Ambassador to the United States, Ronald Sanders, the entire island has been evacuated for the first time in 300 years leaving “not a single living person on the island of Barbuda.”  Per the USA Today:

    “The damage is complete,” says Ambassador Ronald Sanders, who has served as Antigua and Barbuda’s ambassador to the U.S. since 2015. “For the first time in 300 years, there’s not a single living person on the island of Barbuda — a civilization that has existed on that island for over 300 years has now been extinguished.”

     

    “This was a huge monster,” he says. “The island and the people on the island had absolutely no chance.”

     

    “We’ve had most of the people we’ve brought over to Antigua in shelters,” says Sanders. “We’ve tried to make living accommodations as good as humanly possible in these circumstances. Fortunately, we had planned ahead for this hurricane, and we had ordered supplies in from Miami and the United States before the hurricane hit.”

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    As the following aerial footage from the BBC shows, not a single structure was left untouched by Irma’s 185 mph winds.

     

    Meanwhile, even though Barbuda residents have been evacuated to safety on Antigua, Sanders says the mass evacuation has resulted in an unsustainable situation with massively overcrowded schools and unsanitary living quarters in government facilities.

    Though Barbudan evacuees are safe, Sanders says the situation is not ideal — people are living in cramped quarters in government facilities and nursing homes, including some 500 school-aged children. Now that school is back in session, Antigua must find room for these students.

     

    “The situation is unacceptable, and it’s costly,” he says. “We’re going to have to keep this going for sometime because Barbuda’s not going to be rebuilt in a hurry, and when we do rebuild it, we’re going to have to rebuild to massive hurricane standards. This is going to take a while. There is no electricity there, there is no potable water anymore, there is no structure in which people can survive. We have a mammoth task on our hands.”

     

    Sanders says the world must step up and help Barbuda.

     

    “We are a small island community — the gross domestic product of Antigua is $1 billion a year,” he says. “We cannot afford to take on this responsibility by ourselves. Barbuda is not just a disaster, it’s a humanitarian crisis. We are hopeful that the international community will come to our aid, not because we’re begging for something we want, but because we’re begging for something that is needed.”

    Finally, Sanders took the opportunity to remind us all that, in his scientific opinion as an Ambassador, Hurricane Irma was the direct result of all of our contributions to global warming….

    “We believe climate change is here to stay — it’s a reality, despite all of the naysayers,” he says. “We know that these things have occurred as a result of the profligacy of the countries that are rich, and have abused the system. We, unfortunately, who contribute less than naught point naught percent of pollution of the world’s atmosphere, are the world’s greatest victims.”

    …except this…

    Hurricanes

    …and this…

    Globa;

    Oh well, we probably just don’t understand the math…

  • Germany Launches Probe After Pentagon's Syrian Arms Smuggling Story Goes Viral

    The German government has opened an probe into an illegal Pentagon arms trafficking operation after a bombshell investigative report on the secret program went viral this week.

    On Wednesday we reported on the continuing Pentagon arms pipeline to Syria which runs through Europe, the Balkans, and Caucuses, and which is based on a shady network of private contractors and altered US government paperwork. The Organized Crime and Corruption Reporting Project (OCCRP) and the Balkan Investigative Reporting Network (BIRN) produced conclusive evidence and internal memos proving that not only is the Pentagon currently involved in shipping up to $2.2 billion worth of (mostly old Soviet) weapons from private dealers to US-backed Syrian militants, but is actually manipulating paperwork such as end-user certificates in order to conceal the ultimate destinations of the weaponry (in this case Syria).

    The new investigation also confirms Bulgarian journalist Dilyana Gaytandzhieva's prior findings, which exposed the role of Azerbaijan-operated Silk Way Airlines in the weapons airlifts. Though independent journalists and regional monitoring groups have been digging into the Pentagon arms shipments throughout the summer, mainstream European and American press were reluctant to cover the story, even as a steady flow of incontrovertible proof emerged online in the form of documents, photos, and videos of mysterious cargo planes being loaded with weapons. Over the past two weeks WikiLeaks has also highlighted the emerging details of a developing story which saw at least one journalist come under scrutiny by European security officials.

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    After a week of the story picking up momentum, it appears we may finally be seeing the beginnings of public and governmental investigations forming as European governments perhaps reluctantly take stock of Pentagon arms pipelines in their territories now coming under public attention and outrage. As Stripes reports, Germany announced a new legal inquiry early Friday:

    The German prosecutor’s office in Kaiserslautern said Friday it is looking into a report that the Pentagon used Ramstein Air Base to transport weapons covertly to rebel fighters in Syria — an allegation, that if true, might have broken German law.

     

    …The weapons transfer through Ramstein would have required permission from the German government, the report stated.

     

    Officials with Germany’s Economic Affairs Ministry told Stars and Stripes that the ministry did not give the U.S. military permission to transport weapons to Syria through the country. They denied having any knowledge of such activities.

    Part of the OCCRP and BIRN investigation spotlighted Ramstein as one of the many key transport hubs used in the Syria weapons trafficking program. The arms monitoring groups jointly published a side report on the Pentagon's questionable activities at the German US installation as part of its broader findings on Tuesday.

    That report included a newly unearthed internal email authored by the Pentagon’s US Special Operations Command Mission (SOCOM) instructing its partnering contractors to, as BIRN summarizes, "stop trucking Soviet-style weapons from the Balkans through Germany" because "officials in Berlin became concerned about the deliveries."

    The closing line of the SOCOM email explicitly acknowledges that, "Germany has become very sensitive to these requests."


    SOCOM email published by BIRN's Balkan Insight on Tuesday: 
    "Germany has become very sensitive to these requests."

    BIRN questioned the German government over the findings this week and immediately caught German officials lying about their knowledge of the Pentagon weapons transfers. According to the BIRN/OCCRP summary of the exchange:

    The German government earlier declined to comment on the nature of its “sensitivities”, and at a press conference on Thursday, continued to insist it has no knowledge of the movement of weapons to Syria.

     

    German laws, however, dictate that licences to transport weapons must be accompanied by end user certificates which states the final destination of the shipment and who will be using the equipment.

     

    According to the German government, no such licence has been issued for deliveries to Syria or neighbouring countries since 2010.

     

    This claims jars with a report in the Serbian press in December 2015, revealing that a number of US air force C-17 cargo planes had delivered Serbian weapons to the Ramstein airbase.

     

    The report was backed up by one of SOCOM’s most important contractors on its Syrian contract, Global Ordnance, which shared the story on Facebook adding: “Glad Global Ordnance could contribute to support our military!”

    Both leaked and public documents confirm Serbia to be another key logistical hub in the Syria weapons transport program. Multiple weapons end-user certificates were proven to be falsified or altered by the Pentagon, which is likely exactly what the newly announced German probe will look into. One of the weapons trafficking investigators told Foreign Policy this week that, “The Pentagon is removing any evidence in their procurement records that weapons are actually going to the Syrian opposition.”

    Yet it appears that some of the very contracting companies and individuals involved in the shadowy scheme have over the years taken to Facebook and other social media platforms to brag about their role in the program and huge profits that resulted. BIRN's Balkan Insight has just today published a trove of photographs and postings it culled from social media which connect various arms dealers – some of them with known links to organized crime – to the Pentagon weapons program.

    Arms dealer and Pentagon contractor for the Syria covert program, Marc Morales, uploaded photos on January 29, 2015 from the Zastava factory, Kragujevac, Serbia. He openly bragged about the contracts he procured: 'Another day in the office,' he wrote.

    As the latest BIRN report notes, what is depicted in the Hollywood film War Dogs is sadly not at all a thing of the past or mere of recent history, but is current and ongoing. And unlike in the movies, real people – specifically Syrians and Iraqis – are dying as a result. But with the new German government probe just announced which was surely the result the story going viral this week, there is perhaps some hope that public outrage could continue to shine a light on such disgusting US government criminality.

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  • High-Ranking CIA Agent Blows Whistle On The Deep State And Shadow Government

    Authored by Aaron Kesel via ActivistPost.com,

    A CIA whistleblower, Kevin Shipp, has emerged from the wolves den to expose the deep state and the shadow government which he calls two entirely separate entities.

    “The shadow government controls the deep state and manipulates our elected government behind the scenes,” Shipp warned in a recent talk at a Geoengineeringwatch.org conference.

    Shipp had a series of slides explaining how the deep state and shadow government functions as well as the horrific crimes they are committing against U.S. citizens.

    Some of the revelations the former CIA anti-terrorism counter intelligence officer revealed included that “Google Earth was set up through the National Geospatial Intelligence Agency and InQtel.” Indeed he is correct, the CIA and NGA owned the company Google acquired, Keyhole Inc., paying an undisclosed sum for the company to turn its tech into what we now know as Google Earth. Another curious investor in Keyhole Inc. was none other than the venture capital firm In-Q-Tel run by the CIA according to a press release at the time.

    Shipp also disclosed that the agency known as the Joint Special Ops Command (JSOC) is the “president’s secret army” which he can use for secret assassinations, overturning governments and things the American people don’t know about.

    FBI warrantless searches violate the Fourth Amendment with national security letters, which Shipp noted enables them to walk into your employer’s office and demand all your financial records and if he or she says anything about them being there they can put your supervisor in jail or drop a case against themselves using the “State’s Secret Privilege law.”

    “The top of the shadow government is the National Security Agency and the Central Intelligence Agency,” Shipp said.

    Shipp expressed that the CIA was created through the Council on Foreign relations with no congressional approval, and historically the CFR is also tied into the mainstream media (MSM.) He elaborated that the CIA was the “central node” of the shadow government and controlled all of other 16 intelligence agencies despite the existence of the DNI. The agency also controls defense and intelligence contractors, can manipulate the president and political decisions, has the power to start wars, torture, initiate coups, and commit false flag attacks he said.

    As Shipp stated, the CIA was created through executive order by then President Harry Truman by the signing of the National Security Act of 1947.

    According to Shipp, the deep state is comprised of the military industrial complex, intelligence contractors, defense contractors, MIC lobbyist, Wall St (offshore accounts), Federal Reserve, IMF/World Bank, Treasury, Foreign lobbyists, and Central Banks.

    In the shocking, explosive presentation, Shipp went on to express that there are “over 10,000 secret sites in the U.S.” that formed after 9/11. There are “1,291 secret government agencies, 1,931 large private corporations and over 4,800,000 Americans that he knows of who have a secrecy clearance, and 854,000 who have Top Secret clearance, explaining they signed their lives away bound by an agreement.

    He also detailed how Congress is owned by the Military Industrial Complex through the Congressional Armed Services Committee (48 senior members of Congress) giving those members money in return for a vote on the spending bill for the military and intelligence budget.

    He even touched on what he called the “secret intelligence industrial complex,” which he called the center of the shadow government including the CIA, NSA, NRO, and NGA.

    Shipp further stated that around the “secret intelligence industrial complex” you have the big five conglomerate of intelligence contractors – Leidos Holdings, CSRA, CACI, SAIC, and Booz Allen Hamilton. He noted that the work they do is “top secret and unreported.”

    The whistleblower remarked that these intelligence contractors are accountable to no one including Congress, echoing the words of Senator Daniel Inouye when he himself blew the whistle on the shadow government during the Iran-Contra hearings in 1987.

    At the time Inouye expressed that the “shadow government had its own funding mechanism, shadowy Navy, and Air Force freedom to pursue its own goals free from all checks and balances and free from the law itself.”

    Shipp further added that the shadow government and elected government were in the midst of a visible cold war.

    So who is Shipp and is he credible as a whistleblower, does he have credentials for the CIA? Aim.org wrote:

    Shipp held several high-level positions in the CIA. He was assigned as a protective agent for the Director of Central Intelligence, a counterintelligence investigator, a Counter Terrorism Center officer, a team leader protecting sensitive CIA assets from assassination, a manager of high-risk protective operations, a lead instructor for members of allied governments, an internal staff security investigator, and a polygraph examiner. He was tasked with protecting the CIA from foreign agent penetration and the chief of training for the CIA federal police force.  Mr. Shipp functioned as program manager for the Department of State, Diplomatic Security, and Anti Terrorism Assistance global police training program.  He is the recipient of two CIA Meritorious Unit Citations, three Exceptional Performance Awards and a Medallion for overseas covert operations.  He is the author of From the Company of Shadows–CIA Operations and the War on Terrorism.

    Shipp noted he was working with former NSA whistleblower William Binney but didn’t state what the two were working on together. Shipp is highly credible and may just be the highest level whistleblower. This leak is huge. He has been previously mentioned in the New York Times for blowing the whistle on the mistreatment of him and his family when they were put in a mold-contaminated home. He is also mentioned in a WikiLeaks cable during the GiFiles that I was able to dig up. Is this the beginning of whistleblowers coming forward to end the shadow government and deep state? You can watch Shipp’s full explosive presentation below.

  • "Unprecedented Thefts" Force Baltimore Bike-Sharing Program To Suspend Operations

    In 2016, the city of Baltimore partnered with Bewegen Technologies to launch North America’s largest electrical-assisted cycling (or pedelec) bike sharing program. The system is located in Baltimore’s metropolitan area with over 25 stations available. Fast forward one-year later, this grand “sharing economy” experiment in America’s most dangerous city has imploded due to what the company’s CEO says is a level of theft he has never experienced before.

    As of today, Baltimore officials have suspended all operations of the bike fleet until October 15, 2017. According to the Baltimore Sun, the temporary shutdown is due to “thieves ripping the bicycles out at an unprecedented pace”, said Alain Ayotte, CEO of Bewegen Technologies, the Canadian manufacturer. The manufacturer of the $2.36 million Baltimore Bike Share system said his company has “never experienced the level of theft” that caused officials to announce a temporary shutdown of the program to allow additional locking devices to be installed to the bike docks.

    Per Baltimore Sun,

    We don’t have this issue anywhere else, not at this level,” Ayotte said Wednesday. “Our locking system is recognized [as] very, very up to industry standard, but due to the issues that occurred in Baltimore this summer, we did add additional security.”

     

    The bike-share program launched last fall with 200 bicycles at 20 stations and was supposed to grow to 500 bicycles at 50 stations in the spring. Instead, it has suffered so many thefts and maintenance backups that most of the bicycles are out of service. The program will close Sunday and reopen Oct. 15.

    Unwittingly, some bicycle stations were placed in areas of extreme wealth inequality and high violent crime. Even though, each bicycle is outfitted with GPS, it did not deter thieves. Baltimore is suffering from a racial wealth divide according to JPM. The report highlights African Americans are 63% of the total 620k population with nearly 1/3 having a net worth of zero.

    At one point, the thefts became so rampant, maintenance employees spent a majority of time searching for stolen bikes. The Department of Transportation had to apologized for misleading millennials about the true nature of the bicycle problem calling it a ‘rebalancing issue’.

    In particular, a citizen named Brian Seel, wrote a Medium piece titled: “Baltimore Bike Share Only Has Four Bikes”. Recently, he rode to all 25 bike sharing docks and only found four working bikes. In the article, he explains how the ‘real problem’ is communication issues with the bike sharing company…

    Mr. Steel rode to all 25 stations. In his first finding, he stopped at Baltimore City where there were no bikes, but 5 listed on the APP.

    At Baltimore Visitors Center there were no bikes, but 7 listed on the APP.

    In Baltimore’s financial district there were no bikes, but 6 listed on the APP.

    Baltimore Bike Sharing’s twitter plays it cool….

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    It’s a ‘manageable situation’

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    The last one is hilarious: “This is not unusual”…..

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    Baltimore is a shrinking city with a population at a 100-year low. Officials are unwittingly throwing money at anything, such as a bike-sharing system, to attract millennials. Unfortunately, there is too much overhang in a city where 50-years of democrat-controlled leadership, in-conjunction with decades of deindustrialization. This should be a big clue to millennials that the narrative of city life continues to crack.

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