Today’s News 6th July 2017

  • Australia: The Madness Continues

    Authored by Judith Bergman via The Gatestone Institute,

    • "While terrorism's origins have many factors, Islamic terrorists, as heinous as their acts are, they are often merely doing what the scriptures are telling them." — Tanveer Ahmed, Muslim psychiatrist.
    • In Australia, according to judges, women and children must accept sexual assaults because it is part of the "Islamic culture" of their attackers. It would seem that in parts of Australia, this "Islamic culture" has replaced the rule of law. None of the above, however, seems to be enough to appease Muslim sentiments. In March, Anne Aly, Australia's first female Muslim MP, said that racial-discrimination laws should be expanded to cover insults based on religion as well.
    • In March, a teacher at Punchbowl Primary School quit her job after she and her family received death threats from the children in the school, with some of them saying they would behead her. The teacher's complaints to the New South Wales Department of Education were dismissed.

    During the month of Ramadan alone, the world witnessed 160 Islamic attacks in 29 countries, in which 1627 people were murdered and 1824 injured. Nevertheless, the dual efforts to deny any links between Islamic terrorism and Islam on the one hand, and the efforts to accommodate Islam to the greatest extent possible on the other, seem to continue unaffected by the realities of Islamic terrorism — in Australia, as well, which is experiencing its own share of sharia and jihad.

    At the end of May, the Public Health Association of Australia (PHAA) called on the Australian Parliament's Joint Standing Committee on Foreign Affairs, Defence and Trade to:

    "…include a recommendation in its report that disavows the notion that there is any inherent link between Islam and terrorism… The Committee should condemn any politician who refers divisively (expressly or implied) to any religious or ethnic group for the purpose of political gain."

    PHAA Chief Executive Michael Moore said that there is no inherent link between any religion and acts of terror:

    "When you look at terrorism and the IRA, I don't think many people blamed Christianity for terrorism when clearly there was an overlay. In fact there's nothing ­inherent in Christianity that links to terrorism".

    Since when are public health officials qualified to make authoritative statements on the theology of Islam or its linkage to Islamic terrorism?

    Muslim psychiatrist Tanveer Ahmed, would disagree. Speaking in June about the Australian media's disproportionate focus on "Islamophobia" he said:

    "While terrorism's origins have many factors, Islamic terrorists, as heinous as their acts are, they are often merely doing what the scriptures are telling them."

    While Australian officials rush to declare that Islamic terrorism has nothing to do with Islam, revealingly they have referred to Islam or Islamic culture to exonerate Muslims on several occasions. In April, despite pleading guilty to sexually assaulting eight women and girls on a beach in Queensland, a young Afghan man was acquitted. The reason for the acquittal: "Cultural differences". According to the judge, "seeing girls in bikinis is different to the environment in which he grew up". The teen received two years' probation without being convicted of anything.

    Similarly, in 2014 , a registered sex-offender and pedophile, Ali Jaffari, was accused of attempted child-abduction. However, Australian police dropped all charges against him, after a magistrate told prosecutors that he would have difficulties finding Jaffari guilty. According to news reports:

    Magistrate Ron Saines said if he was hearing the matter, he would have reasonable doubt, citing "cultural differences" as one factor, which would result in the charges being dismissed.

    In Australia, according to judges, women and children must accept sexual assaults because it is part of the "Islamic culture" of their attackers. It would seem that in parts of Australia, this "Islamic culture" has replaced the rule of law.

    A recent taxpayer-funded study about domestic violence is an example of the trend, in certain parts of Australia, towards replacing Australian values with Islamic ones. According to the study, while refugees are grateful for, "peace, freedom, healthcare and education", the "major point of contention" is the issue of women's and children's rights:

    The three-year study, funded by the Australian Research Council, concludes: "Many refugees see some human rights, in particular those relating to women and children's rights, as detrimental to their successful settlement in Australia."

     

    It says some refugees argue "women's and child's rights contravene the cultural values, norms and mores" of their ethnic groups.

    The study called for "cultural sensitivity and understanding of the impact on male refugees and… feelings of alienation and disappointment".

    Domestic violence in Muslim households is already a hot topic in Australia. Keysar Trad, a former President of the Australian Federation of Islamic Councils, told Sky News in February that an angry husband can beat his wife as "a last resort". In April, the women's branch of Islamic group Hizb Ut-Tahrir posted a video from an all-women's event in Sydney to Facebook, in which two women demonstrated wife beating and called it "a beautiful blessing".

    Accommodating Islam in Australia takes other forms as well. For Ramadan this year, Muslim inmates of two maximum-security prisons in the State of Victoria were given taxpayer-funded microwave ovens in their cells for the month, so they could heat their food up after sunset, when they can break their fast. The issue apparently caused unrest among the non-Muslims in the jails.

    In Auburn, female Muslim swimming pool users were given a separate curtained pool, so that they could swim without male pool users seeing them. Belgravia Leisure, which operates the facility, said, "the curtain was installed to overcome cultural barriers and encourage Muslim women to use the pool". The company's general manager, Anthony McIntosh, said it was "a move to make the pool accessible for all cultural groups".

    None of the above, however, seems to be enough to appease Muslim sentiments. In March, Anne Aly, Australia's first female Muslim Member of Parliament, said that racial-discrimination laws should be expanded to cover insults based on religion as well. The Grand Mufti of Australia, Ibrahim Abu Mohammed, has voiced similar opinions.

    In June, the Islamic Council of Victoria made a submission to a Parliamentary inquiry, requesting from the government:

    "To create safe spaces urgently needed by Muslim youth to meet and talk about a range of issues in emotional terms, where they can be frank and even use words, which in a public space would sound inflammatory".

    In other words, Muslims should have a taxpayer-funded "safe space" where they can incite unhindered against Australians?

    Some Muslims have decided to create a "safe space" on their own, segregated from the rest of Australian society. In Brisbane, the Australian International Islamic College is planning an exclusively Muslim enclave, including a mosque covering 1,970 square meters; a three-storey elder-care and residential building, 3,000 square meters of retail space and 120 residential apartments, in addition to new classrooms and a childcare center for 2,000 students. The existing site is already home to the college, which caters to students from kindergarten to 12th grade. So much for "multiculturalism".

    Clearly, the appeasement is not working. It never has. Appeasement, in fact, usually seems to have the opposite effect. Here are a few recent examples of how Australian policies have been working out lately:

    In April, a Christian man in Sydney wearing a cross was attacked by a Muslim gang of youths, who, while screaming "Allah', and "f**k Jesus", threw his cross to the ground and violently assaulting him. According to Baptist Pastor George Capsis, this was the fourth such attack on a Christian in Sydney in the past six months.

    In Sydney's Punchbowl Boys High School — one of 19 schools in New South Wales identified as at risk of radicalizing Muslim students — students were "pressured to attend daily prayer meetings, lectures on the Koran and even cut their hair by peers badgering them to conform to Islam".

    The 19 at-risk schools all participate in an anti-radicalization program, but the principal of Punchbowl Boys High School, Chris Griffiths, a convert to Islam who has since been fired, had refused to participate in it; he said that he was "not comfortable with prayer groups being monitored or the school being 'stigmatised'".

    Griffiths need not have worried. Those de-radicalization programs apparently do not work very well. In March, a Sydney teenager who was in a de-radicalization program pleaded guilty to planning a terrorist attack on Anzac Day in 2016. The teenager was accused of trying to obtain a gun for his intended April 25 attack; then, when that failed, a bomb manual.

    In March, a teacher at Punchbowl Primary School quit her job after she and her family received death threats from the children in the primary school, with some of them saying they would behead her:

    She said she was abused by students when she stopped them from hanging a Syrian flag in the classroom.

     

     

    Many of the students also reportedly spoke of family members fighting in the war in Syria and pupils would walk out mid-way through a lesson to go and pray.

    According to news reports, the teacher's complaints to the New South Wales Department of Education were dismissed.

    Jihad also came to Australia during the recent Ramadan. After ISIS had told its supporters to attack the infidels "in their homes", Yacqub Khayre, an Australian Muslim, took that literally. On June 5, in a serviced-apartment block in an affluent Melbourne suburb, he took a woman hostage, killed another man, then, during the attack, called a television station and told them that his attack was for ISIS and al-Qaeda. But the Australian police are not easily fooled: they said at the time that terrorism was just "one line of inquiry". Khayre, a Somali immigrant, was, it turned out, well-known by the authorities. He had, in fact, been acquitted of plotting a terror attack at a Sydney army base in 2010; had served sentences for arson and violent crimes, and had been paroled in November 2016.

    Police investigate at the scene of an Islamist terror attack in Melbourne, Australia, on June 6, 2017, the day after police shot dead the attacker. (Photo by Michael Dodge/Getty Images)

  • The Dark Side Of Independence Day

    For most people, the 4th of July is all about great barbecues, ice-cold beer and stunning fireworks displays. However, as Statista’s Niall McCarthy notes, for an unlucky few, the holiday has a dark side…

    Infographic: The Dark Side Of Independence Day  | Statista

    You will find more statistics at Statista

    Last year, 4 people were killed and thousands more were hospitalized due to accidents involving fireworks.

    According to Journal of Surgical Research data published by Vox, young men and teenage boys are far more likely than anyone else to get injured by fireworks. Last year, they accounted for 61 percent of all hospitalizations. In 2016, 1,300 hospitalizations were caused by firecrackers, 900 were attributed to sparklers, 500 were from Roman candles, and 400 were caused by bottle rockets.

    As the infographic above shows the toll inflicted by fireworks every month in the U.S. between 2006 and 2010. New Year’s Eve resulted in 1,515 visits over those four years but that has nothing on Independence Day. The spike in July stands out like a sore thumb with over 15,500 people hospitalized due to fireworks over the same time period.

  • Professor Teaches Students About "The Problem That Is Whiteness"

    Authored by Nathan Rubbelke via TheCollegeFix.com,

    Serious explorations into race should focus on the problem of whiteness and be grounded in the claim that it’s a hegemonic “power apparatus,” a Fairfield University professor suggested at a recent conference aimed at pushing “radical social change” in higher education.

    The remarks from associate professor of philosophy Dr. Kris Sealey, who spoke about her strategies for discussing race in the classroom, were presented at a diversity conference for employees of Jesuit colleges.

    “So more and more, the courses that I teach on race have become courses in which I expect my students to engage in the hegemonic power of whiteness,” said Sealey, who’s taught courses such as “Black Lives Matter” and “Critical Race Theory.”

    Sealey, a scholar of color, said her approach toward teaching race has much to do with teaching at Fairfield University, a predominately white institution, and requires difficult conversations that force students to reevaluate how they understand themselves.

    “Hence, part of what makes pedagogies of racial justice particularly difficult are the stakes that they invariably include for all parties involved,” she said.

    Sealey’s comments were based in the book “Black Bodies, White Gazes: The Continuing Significance of Race” by Emory University philosopher George Yancy.

    Discussing Yancy’s work, the professor said she’s moved by his premise that “any inquiry into the experience of blackness must include some genealogy or some history of the white gaze.”

    Taking the thesis seriously, Sealey said, means “to acknowledge that any critical investigation of race should devote some time to the problem that is whiteness.”

    While saying there’s no single strategy on discussing race that works best for all students, Sealey touted what she called the “proven advantages” of her approach. Those advantages, she said, establish “objectively grounded claims” that she listed as the following:

    Whiteness means a specific power apparatus that exists at the expense of the disempowerment of black people.

     

    To be white in the U.S. is to be a perpetuator of the power apparatus unless one actively and consistently resists.

     

    It is possible, perhaps necessary, to acknowledge one’s personal implications in the white power apparatus.

    Sealey said it’s helpful for her students to see that their time in the classroom isn’t about existential conversion or evaluation of one’s character, but rather “the goal is to understand the role of the white gaze in the confiscation of the black body.”

    In a 2013 op-ed published by The New York Times, Yancy described the white gaze as “hegemonic” and wrote that it includes “poisonous assumptions and bodily perceptual practices.” Recalling an experience he had with a white police officer in the late 1970s, he said the white gaze includes seeing “the black male body as different, deviant, ersatz.”

    Drawing on Yancy’s work and speaking in philosophical terms, Sealey said she frames her class toward the concept of “un-suturing” — an idea she described as opening one’s self to what is other.

    Expanding on the concept, Sealey said that “if to suture is to keep closed,” then to un-suture means being able to be influenced by sensibilities or attitudes that run counter to one’s worldview.

    Sealey said Yancy applied this approach to suggest when white people engage in un-suturing, there’s an “undoing of a white-centric universe.”

  • Maduro Thugs Storm Venezuela National Assembly, Beat Opposition Lawmakers, Default Risk Jumps

    Venezuela celebrated 206 years of independence in a manner uniquely befitting Latin America’s socialist paradise: A gang of armed Maduro supporters broke into the National Assembly and viciously assaulted opposition lawmakers, nearly killing one.

    Here’s Reuters:

    The melee, which injured seven opposition politicians, was another worrying flashpoint in a traumatic last three months for the South American OPEC nation, shaken by opposition protests against socialist President Nicolas Maduro.

     

    Pipe-wielding government supporters burst into Venezuela's opposition-controlled congress on Wednesday, witnesses said, attacking and besieging lawmakers in the latest flare-up of violence during a political crisis.

     

    The melee, which injured seven opposition politicians, was another worrying flashpoint in a traumatic last three months for the South American OPEC nation, shaken by opposition protests against socialist President Nicolas Maduro.”

    Mobs of anti-government protesters have been gathering daily in the streets of Caracas and other Venezuelan cities to protests Maduro’s intensifying crackdown on dissent. As is well known, government mismanagement in the country with the world's biggest oil reserves has led to hyperinflation of over 10,000% and a total collapse in the standard of life. The country's dire financial straits have led to widespread hunger while necessary supplies like medicine have become dangerously scarce. At least 90 people have died in the unrest since April, many of them young men, like a 22-year-old protester whose government-sanctioned murder was caught on tape.

    Earlier this year, Maduro "annuled" the Assembly, stripping it of most of its legislative powers in favor of consolidating power in the hands of the executive branch.

    After the July 5 "Independence Day" attack (Venezuela celebrates its independence one day after the US), National Assembly president Julio Borges said more than 350 politicians, journalists and guests to the Independence Day session were trapped in the siege that lasted until dusk. 

    ‘There are bullets, cars destroyed including mine, blood stains around the (congress) palace,’ he told reporters. "The violence in Venezuela has a name and surname: Nicolas Maduro."

    The crowd had gathered just after dawn outside the building in downtown Caracas, chanting in favor of Maduro, witnesses said. In the late morning, several dozen people ran past the gates with pipes, sticks and stones and went on the attack. Several injured lawmakers stumbled bloodied and dazed around the assembly's corridors. Some journalists were robbed. After the morning attack, a crowd of roughly 100 people, many dressed in red and shouting ‘Long Live The Revolution!’, trapped people inside for hours, witnesses said.”

    Some in the crowd outside the legislature brandished pistols, threatened to cut water and power supplies, and played an audio of former socialist president Hugo Chavez saying "Tremble, oligarchy!" Fireworks were thrown inside. One lawmaker, Americo De Grazia, was hit on the head, fell unconscious, and was eventually taken by stretcher to an ambulance. His family later said he was out of critical condition and being stitched up.

    In October 2016, Maduro quashed a recall vote organized by the assembly. Maduro, a former bus driver and chosen successor of its deceased former leader, Hugo Chavez. Venezuela's opposition has stepped up its criticism of the dictator Maduro for seeking to solidify his control through the creation of a Constituent Assembly, a superbody that will be elected at the end of July. The opposition has promised to boycott the vote, which it (rightly) claims is being rigged.

    There has been a string of clashes at the country’s assembly since the opposition thrashed Maduro’s Socialist Party in December 2015 parliamentary elections.

    “In a speech during a military parade for Independence Day, Maduro condemned the "strange" violence in the assembly and asked for an investigation. But he also challenged the opposition to speak out about violence from within its ranks.

     

    In daily protests since April, young demonstrators have frequently attacked security forces with stones, homemade mortars and Molotov cocktails, and burned property. They killed one man by dousing him in gasoline and setting him on fire.

    In a statement that redefines irony, Maduro condemned the violence on the opposition that was unleashed by his own supporters.

    ‘I want peace for Venezuela," Maduro said. "I don't accept violence from anyone.’”

    Western officials quickly condemned the attack:

    'I condemn the grotesque attack on the Venezuelan assembly,’ tweeted UK ambassador John Saville.

     

    ‘This violence, perpetrated during the celebration of Venezuela's independence, is an assault on the democratic principles cherished by the men and women who struggled for Venezuela's independence 206 years ago today,’ the U.S. State Department said.”

    Meanwhile, Venezuela's opposition is demanding general elections to end Maduro’s rule over the OPEC member state. Police pilot Oscar Perez, who staged a coup attempt earlier this month and somehow survived, also condemned the violence.

    As previously noted, Perez had not been seen since he hijacked a helicopter last week and flew through Caracas pulling a "Freedom" banner. He reportedly opened fire and dropped grenades on the Interior Ministry and Supreme Court but nobody was injured. That attack is widely believed to have been staged to divert attention from the unrest that has brought the country to the brink of economic and political collapse.

    Expect violence to worsen as the Constitutional Assembly vote – slated for later this month – draws closer.

    Meanwhile, international investors, who have largely ignored the political upheavals in the socialist nation, have started to notice, and as Bloomberg reports, Venezuela's default odds are once again sharply rising as its foreign reserves tumble toward $10 billion amid ongoing deadly anti-government protests and President Nicolas Maduro’s push to rewrite the constitution.

    The implied probability of the country missing a payment over the next 12 months rose to 56 percent in June, based on the latest CDS data, the highest level since December. Implied odds of a credit event over the next five years increased to 91% last month.

    Maduro, who has faced three months of violent protests that have left almost 80 dead, has drastically cut imports of food and medicine in order to conserve the cash needed to pay bondholders with declining oil prices and production. That hasn’t stopped a drop in reserves, which usually provide investors with a certain degree of assurance that the government will avoid default in the short-term. Recent deals to provide the government with liquidity have only resulted in minor spikes that have disappeared quickly.

    The country faces payments on principal and interest of more than $5 billion in the remainder of the year, although no large sums are due before October. Judging by the recent moves in Venezuela CDS, the market is growing increasingly concerned that Maduro will have enough control over the country to make them.

  • A North Korean EMP Attack: The Dark Possibility

    Authored by Shannara Johnson via HardAssetsAlliance.com,

    As the tension between North Korea and the US continues to grow, the possibility of war is rapidly evolving into a probability. Now some military experts worry that an attack via EMP (electromagnetic pulse) on the US mainland might be a feasible option for Pyongyang.

    The signs are certainly there: Having recently completed the ninth missile test of 2017, Kim Jong-un promised to send the US an even bigger “gift package.”

    Adding to Kim Jong-un’s antics and inflammatory rhetoric, the recent death of American college student Otto Warmbier after his 17-month imprisonment in North Korea has certainly fanned the flames of antagonism between the US and the rogue regime.

    Han Tae Song, North Korea’s ambassador to the UN in Geneva, firmly rejected the accusation of misconduct and declared North Korea operates “according to our national laws and according to international standards.”

    To add insult to injury, Pyongyang’s official Korean Central News Agency (KCNA) also denies any wrongdoing or torture of Otto Warmbier—even going as far as to say North Korea is the “biggest victim” in this situation.

    EMP: Is This The Real Threat?

    Most analysts believe North Korea is not yet capable of a direct missile strike on the US mainland, but Kim Jong-un’s dogged determination to make this a reality is quite disconcerting.

    Some experts believe that the more realistic threat at this point in time is an EMP attack. To make that happen, all North Korea has to do is launch a low-yield nuclear missile from a submarine, ship, or even by balloon and explode it at high altitude, above the atmosphere.

    The potential result: a blackout of the Eastern grid that supplies 75% of power to the United States.

    If an EMP attack did take place, it would be beyond anything we have seen before. The Commission to Assess the Threat to the United States from Electromagnetic Pulse Attack, which was established by Congress in 2001, estimates that within 12 months following a nationwide blackout, “up to 90% of the US population could perish from starvation, disease, and societal breakdown.”

    Electronic Armageddon

    In practical terms, a catastrophic blackout would be worst in cities, because it would instantly deprive the population of access to drinking water, refrigeration, heat, air conditioning, and telecommunication. Food stores would be looted within a matter of days, and gas stations would cease to function without electricity.

    Without Internet access and power, all commerce and advanced methods of communication would stop. There would be no TV, radio, phones. Credit card transactions and cash withdrawals at banks would be impossible. Paper money would become worthless, and Bitcoin would cease to exist, along with the stock market.

    Newt Gingrich, speaking at the Senate Committee on Energy and Natural Resources earlier this month, said an EMP attack “would send us back to the 18th century.”

    But that’s not the only problem. If no outside help arrives, within days, chaos begins to reign. Civilization is a rather thin veneer that humans have acquired over centuries, a mask covering our hard-wired survival instincts. Once the mask slips, it could mean the end of the world as we know it.

    We Are Ill-Prepared For An EMP Attack

    US politicians and major utilities have kicked the can down the road when it comes to EMP preparation. Edison Electric estimates that shielding transformers for the US grid system could cost $20 billion.

    Granted, American power companies have been studying ways to protect our electronic grids against attack, but tangible results are slow in coming.

    The only current option after an EMP attack would be to replace damaged or destroyed transformers. However, says Scott Aaronson, managing director for Cyber and Infrastructure Security at Edison Electric, replacements for those transformers must be procured from foreign suppliers, which could take up to 18 months.

    Peter Vincent Pry, leader of the Task Force on National and Homeland Security, believes North Korea is closer to launching an EMP attack than many analysts believe. He wants Congress to work harder and cut the red tape to allow the innovation necessary to mitigate the threat.

    In Pry’s opinion, an EMP attack would ultimately kill more Americans than a direct nuclear blast could. His book, The Long Sunday, describes several plausible EMP attack scenarios.

    Pry thinks that “the first nation to use nuclear weapons today—even a rogue state like North Korea or Iran—will immediately become the most feared and credible nuclear power in the world, a formidable force to be reckoned with, and perhaps the dominant actor in a new world order.”

    Is there a sensible way to prepare for an EMP attack?

    Maybe not, but stocking some food, water, fuel, and batteries for emergencies is always a good idea—as well as owning a stash of gold coins as hard assets.

    While “you can’t eat gold,” as some preppers say, it is the only kind of money that has prevailed over the millennia.

  • It Takes Most Students Twice As Long As They Hoped To Pay Off Their Student Loans

    About 70% of college students – equal to about 44 million Americans – owe a collective $1.4 trillion in student debt. And while the standard repayment plan for federal loans suggests that they should take no more than 10 years to pay back, in reality, it regularly takes twice that long.

    “Research from Citizens Financial Group suggests that 60 percent of student debt borrowers expect to pay off their loans in their 40s. Data collected at the state level supports these findings. A study from the OneWisconsin Institute finds that it takes graduates of Wisconsin universities 19.7 years to pay off a bachelor's degree and 23 years to pay off a graduate degree.”

    Meanwhile, the Fed reports that there are 6.8 million student loan borrowers between the ages of 40 and 49 and that together, these graduates hold a collective $229.6 billion in debt. That means that Americans in their 40s with student loan debt each have an average balance of $33,765, according to CNBC.

    Many predict that the long-lasting effects of student debt threaten US housing prices as fewer millennials will be able to afford a home, while also delaying retirement.

    “The Federal Reserve Board of Washington, D.C. found that an increase in student debt has led to a decrease in home ownership, and a study from NerdWallet predicts that students who graduated from college in 2015 will have to delay retirement until the age of 75, in part because of the increasing burden of student debt.”

    CNBC points out that students should plan out how long it will take for them to pay off their loans, but this is easier said than done: Today's graduates face an uncertain job market, which is forcing more young Americans – members of the so-called millennial generation – to live with their parents for want of work.

    Perhaps, more students should consider trade schools, which are cheaper and can often lead to steady career-track work. And as we reported last week, many manufacturing companies are recruiting heavily for well-paying management jobs that don’t require a college degree.

  • The Trump-Putin Meeting And The Fate Of The Earth

    Authored by Norman Solomon via Counterpunch.org,

    Any truthful way to say it will sound worse than ghastly: We live in a world where one person could decide to begin a nuclear war — quickly killing several hundred million people and condemning vast numbers of others to slower painful deaths.

    Given the macabre insanity of this ongoing situation, most people don’t like to talk about it or even think about it. In that zone of denial, U.S. news media keep detouring around a crucial reality: No matter what you think of Donald Trump or Vladimir Putin, they hold the whole world in their hands with a nuclear button.

    If the presidents of the United States and Russia spiral into escalating conflicts between the two countries, the world is much more likely to blow up. Yet many American critics of Trump have gotten into baiting him as Putin’s flunky while goading him to prove otherwise. A new barrage of that baiting and goading is now about to begin — taking aim at any wisps of possible détente — in connection with the announced meeting between Trump and Putin at the G-20 summit in Germany at the end of this week.

    Big picture: This moment in human history is not about Trump. It’s not about Putin. It’s not about whether you despise either or neither or both. What’s at stake in the dynamics between them is life on this planet.

    Over the weekend, more than 10,000 people signed a petition under the heading “Tell Trump and Putin: Negotiate, Don’t Escalate.” The petition was written by RootsAction to be concise and to the point:

    “We vehemently urge you to take a constructive approach to your planned meeting at the G-20 summit. Whatever our differences, we must reduce rather than increase the risks of nuclear war. The future of humanity is at stake.”

    A war between the world’s two nuclear superpowers could extinguish human life on a gigantic scale while plunging the Earth into cataclysmic “nuclear winter.”

    “Recent scientific studies have found that a war fought with the deployed U.S. and Russian nuclear arsenals would leave Earth virtually uninhabitable,” wrote Steven Starr, a senior scientist with Physicians for Social Responsibility.

     

    “In fact, NASA computer models have shown that even a ‘successful’ first strike by Washington or Moscow would inflict catastrophic environmental damage that would make agriculture impossible and cause mass starvation.”

    The Bulletin of the Atomic Scientists explains why, since last year, it has moved the risk-estimate “Doomsday Clock” even closer to apocalyptic midnight – citing as a major factor the escalation of tensions between the U.S. and Russian governments.

    So, the imminent meeting between Trump and Putin will affect the chances that the young people we love – and so many others around the world – will have a future. And whether later generations will even exist.

    I put it this way in a recent article for The Nation

    “Whatever the truth may be about Russian interference in the U.S. election last year, an overarching truth continues to bind the fates of Russians, Americans and the rest of humanity.

     

    No matter how much we might wish to forget or deny it, we are tied together by a fraying thread of relations between two nations that possess 93 percent of the world’s nuclear weapons. Right now it is not popular to say so, but we desperately need each other to enhance the odds of human survival.”

    In that overall context, stoking hostility toward Russia is, uh, rather short-sighted.

    Wouldn’t it be much better for the meeting between Trump and Putin to bring Washington and Moscow closer to détente rather than bringing us closer to nuclear annihilation?

  • Malls Swap Retailers For Gyms And Restaurants In Last-Ditch Bid For Survival

    With a record 8,640 retail stores expected to close in 2017, American malls are desperate to draw in customers as America’s retail apocalypse leaves them littered with empty store fronts. Now, some are experimenting with a model that worked for some movie theaters: Invest in restaurants and popular amenities like rock-climbing walls to sell customers a better shopping "experience."

    To wit, Bloomberg spoke with the owner of the Newgate Mall, which plans to pour $500,000 into overhauling the outdated food court in a bid to lure restaurateurs and hungry shoppers. Rent payments from eateries are never going to recoup the renovation costs, but for landlord Time Equities Inc., that’s not the point.

    “The food hall is part of an effort to breathe new life into the entire 718,000-square-foot (67,000-square-meter) center and increase foot traffic, according to Ami Ziff, director of national retail at New York-based Time Equities. The company, which bought Newgate in Ogden, Utah, from GGP Inc. for $69.5 million last year, is one of many landlords wagering that elaborate makeovers will keep them competitive as they reinvent their properties in the age of Amazon.

     

    Costs are escalating as mall owners work to keep their real estate up to date and fill the void left by failing stores. The companies are turning to everything from restaurants and bars to mini-golf courses and rock-climbing gyms to draw in customers who appear more interested in being entertained during a trip to the mall than they are in buying clothes and electronics. The new tenants will pay higher rents than struggling chains such as Macy’s and Sears, and hopefully attract more traffic for retailers at the property, according to Haendel St. Juste, an analyst at Mizuho Securities USA LLC.

     

    “The math is pretty obvious, pretty compelling, but there are risks,” St. Juste said in an interview. “This hasn’t been done before on a broad scale.”

    Malls expanded square-footage rapidly during the 2000s, creating a bubble of retail space. Thanks to Amazon and the rise of e-commerce, that bubble has now burt. And for many malls, time is quickly running out. One Credit Suisse analyst estimates that a quarter of American malls will close over the next five years.

    Already this year, more than 49 million square feet of retail space has closed. Should this pace persist by the end of the year, total square footage reductions could reach 147M square feet, another all-time high, and surpassing the historical peak of 115M in 2001.

    According to Bloomberg, more than a dozen retailers have gone bankrupt this year as the shift toward online shopping accelerates. Even healthy retailers are shuttering hundreds of locations. As many as 13,000 stores are forecast to close next year, compared with 4,000 in 2016, according to brokerage Cushman & Wakefield Inc.

     
    Some of these closings are the result of landlords preemptively kicking out weak retail tenents and filling those spaces with more-profitable businesses like gyms and the restaurant-arcade hybrid Dave & Buster's.

    “Many landlords have been proactive in reclaiming space from weaker tenants to fill with more profitable ones. Chicago-based GGP, the No. 2 U.S. mall owner, has bought back 115 department stores over the last six years and redeveloped them, Chief Executive Officer Sandeep Mathrani said last month during the National Association of Real Estate Investment Trust’s annual conference in New York.

     

    The new tenant roster at those malls includes Best Buy and Nordstrom stores, restaurant-arcade chain Dave & Buster’s and health club Life Time Fitness, he said.”

     

    Department stores, which have performed particularly poorly in the age of Amazon, are a popular target for reclamation, even though they once were the centerpiece of many US malls.

     

    “We’ve actually made a very, very big statement by saying that over the next five years, we hope to recapture another 100 department stores,” Mathrani said.

     

    Ultimately, the wave of renovations is a shot in the dark. Data from landlords is sketchy, and retail analysts have trouble differentiating between maintenance, and improvements meant to help boost sales.

     

    “It can be difficult to calculate capital expenditures for malls because of poor landlord disclosures, Green Street analysts said in the January report. It’s a challenge to distinguish between deferred maintenance — for example, fixing a roof — and projects that will actually generate additional revenue at a property, the analysts wrote.”

    They could also lead to a wave of consolidation in the space, as only the largest landlords have the capital cushion to pay for these upgrades. These landlords also tend to own malls in more profitable markets, helping them recoup costs associated with upgrades through sales.

    “Giants such as GGP and Simon Property Group Inc., the largest mall owner in the U.S., are better positioned to absorb the increased costs than their peers that own less-desirable real estate, according to Green Street. The two companies have some of the most profitable malls in the country, and their high sales volumes make it easier to recover expenses.

     

    For Simon, redevelopment costs as a percentage of net operating income climbed from 3.5 percent in 2010 to 16.6 percent in 2015, before dropping to 7.6 percent last year, according to data Mizuho pulled from the company’s filings. A representative for Indianapolis-based Simon declined to comment. However, on a conference call in April, CEO David Simon responded to a question from an analyst about the potential for rising capital expenditures.

     

    ‘We spent a lot of capital in the portfolio to upgrade the look and feel. We’re going to continue to do that,’ Simon said. ‘I think the returns will be there, and I don’t think the dynamics of today’s current environment have changed that.’”

    Still, whether these efforts will succeed in increasing sales and foot traffic and sales remains to be seen. For now, at least, investors aren’t buying it: Shares of the biggest mall REITs like Santa Monica, Calif.-based Macerich Co. are still in the red for the year.

  • Are You A Domestic Terrorist? That Depends On Who Is In Power

    Authored by Daniel Lang via SHTFplan.com,

    Over the past year, Antifa and other similar anti-fascist groups have been caught threatening, intimidating, and inflicting violence against peaceful people on numerous occasions. And in each case, this has been done with the goal of effecting political change in this country. And that has left many of their critics wondering why groups like Antifa haven’t been labeled as terrorist organizations.

    What these people are doing, literally fits the dictionary definition of terrorism, which is “The unlawful use of violence and intimidation, especially against civilians, in the pursuit of political aims.”

    Well if you can believe it, Homeland Security has finally done what they should have done months ago.

    The Department of Homeland Security in New Jersey has officially listed Antifa as a domestic terrorist organization after a rash of violent attacks by the group targeting supporters of Donald Trump.

     

    Under the heading ‘Anarchist Extremists: Antifa’, the njhomelandsecurity.gov website characterizes Antifa under the designation of “domestic terrorism”.

     

    “In the past year, Antifa groups have become active across the United States, employing a variety of methods to disrupt demonstrations,” states the advisory, before going on to list a number of violent disruptions, including Milo Yiannopoulos’ speaking event at the University of California Berkeley on February 1st, which was cancelled after members of Antifa violently attacked free speech advocates.

     

    The advisory also lists how Antifa has engaged in doxxing of individuals to expose them to abuse and violent harassment.

    But that brings up an important question. Why did it take so long for Homeland Security to call Antifa a terrorist organization?

    In the post 9/11 world, it seems shockingly easy to be labelled a terrorist by our government. In the past, Homeland Security has deemed conservatives, libertarians, and Christians as potential terror threats. The government has kept a watchful eye on veterans, for fear that they will turn their lethal skills against the feds. A wide variety of people have been added to the terror watch list, despite having no known affiliations with any terrorist organizations.

    People who are merely preppers, conspiracy theorists, or who make purchases with cash are suspect. Americans who wish to encrypt their phones are viewed as potential terrorists. Even making your own gold and silver coins is viewed as a form of domestic terrorism.

    In short, if you make the government even slightly nervous, there’s a good chance that you will be seen as a potential terror threat, and the government doesn’t necessarily need any solid evidence to place you on a terror watch list. So again, why is it that in a society where any slight transgression can land you on the government’s shit list, did it take so long to label Antifa a terrorist organization?

    The truth is that as far as our government is concerned, “terrorist” is a catch all term for anyone who is a threat to the government. Sometimes that includes people who are genuine terrorists, but more often than not, it includes peaceful people who simply don’t want to go along with the government’s agenda. And because of that, the government’s definition of terrorism changes depending on who is in power.

    The most likely reason Antifa is being called a domestic terror organization, is because Donald Trump is president. If Homeland Security was under Obama, I seriously doubt that they would have received that label. In this case, that label is totally justified, but that could change in the future. We live under a government that can totally disregard the rights of anyone they say is a terrorist, but the definition of that word is fluid as far as the government is concerned.

    It is applied to whoever is a threat to the system at any given moment. It changes whenever it is convenient to whoever is in power. You can go from being a relatively free citizen to a terrorist who is stripped of all his rights, depending on who is running the country. What is considered totally normal behavior one day, can be deemed a terrorist threat the next. So until the government adheres to a strict definition of terrorism, all of our lives are in danger.

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Today’s News 5th July 2017

  • Chinese Manufacturers Are Scrambling To Replace Workers With Robots As Wages Soar

    Tepid wage growth has been frustrating Americans for years. But if trends in China’s manufacturing sector have any bearing on the US, there’s an upside to stagnant pay: Workers get to keep their jobs – for now, at least.

    In China – where real wages have doubled in the past decade – the opposite is true: Manufacturers, squeezed by rising labor costs and a paucity of skilled workers, are fueling an unprecedented boon in the adoption of automated technologies to cut down on the number of workers needed on factory floors, according to the latest findings of the China Employer-Employee Survey.

    Ironically, the Communist Party’s willingness to support unprofitable businesses is compounding problems for Chinese workers, as many manufacturers are barely profitable to begin with.

    As Bloomberg explains, China is no longer the cheap labor haven it once was.

    “Monthly manufacturing wages reached 4,126 yuan at the end of 2015, equal to those in Brazil but much higher than Mexico, Thailand, Malaysia, Vietnam, and India.

     

    At the same time, many firms are relying on government subsidies, while barely eking out profits or even losing money, according to the study released June 20. “Time is running out fast for Chinese manufacturers to adapt,” says Albert Park, head of the survey’s international committee and a labor economist at The Hong Kong University of Science and Technology.

     

    The study canvassed more than 1,200 companies and 11,300 workers in Guangdong, China’s biggest manufacturing province, and Hubei, a major industrial base in central China. Some 26 percent of workers left their jobs annually in Guangdong and that turnover rate was even higher for younger workers, about 37 percent for employees below 28."

    In a viral video published back in April, the People’s Daily provided a glimpse into the rapidly approaching future of China's labor force: The video, also released by the SCMP, shows hundreds of round Hikvision robots, each roughly the size of a seat cushion, swiveling across the floor of the large warehouse in Hangzhou. A worker is seen feeding each robot with a package before the machines carry the parcels away to different areas around the sorting center. The robots sort more than 200,000 packages a day.

    One factory owner explains to Bloomberg how he’s adding 40 robots to his workforce that will eventually allow him to reduce his human workforce by 25% or more.

    As he marches through a gritty factory that makes baby strollers and wheels, Hu Chengpeng says finding workers is his number one challenge these days. Turnover at the facility in Hanchuan in Hubei province in central China is running at 20 percent, even while wages have been growing by double digits for his 400-plus workers every year. “Labor costs are getting just too high,” he said.

     

    All of which explains why Hu, 34, is embracing China’s robotics revolution. He has added 40 new robots, each costing 40,000 yuan ($5,850), this year to replace dozens of workers tasked with cutting plastic molding. Eventually the factory will use a quarter fewer workers than today, without having to reduce annual production, he said. Hu also said he plans to shift more production away from making simple components and towards producing higher-margin branded strollers.”

    Engineers are rushing to replicate even the most basic advantages that humans have over robots. In a video published by Bloomberg, employees at San Francisco-based Autodesk explain how they’re designing software to enable robots to “see” their surroundings. The engineers say it will ameliorate safety issues that have been a barrier to wider adoption. Soon, they say, robots and humans will be able to work in closer proximity.

    Luckily, robots still have a ways to go before they can "think" like humans, too.

  • How To Make People Respect The Flag

    Authored by Justin King via The Fifth Column News,

    It’s the Fourth of July. The most American of days. If you left your home today or scrolled your social media accounts, you undoubtedly saw disrespect towards the American flag. It isn’t a new expression of speech, but it is certainly more widespread today than in years past. So the question arises: how can you make people respect the flag?

    First, let’s look at what the flag represents. Is it possible those showing disrespect to the flag just need to be educated about the symbolism? In a book about the flag published by the House of Representatives, it says in relevant part, “the star is a symbol of the heavens and the divine goal to which man has aspired from time immemorial; the stripe is symbolic of the rays of light emanating from the sun.” The flag’s colors had no specific symbolism or meaning when the flag was adopted in 1777, however, the Great Seal of the United States did have meanings for those same colors. “The colors of the pales (the vertical stripes) are those used in the flag of the United States of America; White signifies purity and innocence, Red, hardiness & valour, and Blue, the color of the Chief (the broad band above the stripes) signifies vigilance, perseverance & justice.”

    So there we have it: purity, innocence, hardiness, valour, vigilance, perseverance, and justice.

    Do the actions committed under the flag today match this symbolism? Does a pure country run torture camps or turn a blind eye when its allies do? Does an innocent nation intentionally foster a civil war in which millions of civilians are killed or displaced for political and economic gain?  Does a hardy country turn away those seeking help because it is too difficult? Does a valorous nation conduct a drone strike program in which 90% of those killed are “collateral damage”? Do vigilant citizens let the government run amok, or should they monitor government overreach the way the Founding Fathers intended? Does the country display the perseverance to forge ahead through danger and terror, or does it let the fear generated by a tiny minority of extremists control its foreign policy? Is there true justice when the nation has the largest inmate population on the planet and law enforcement kills an unarmed person 10% of the time they kill someone?

    It’s time to face the horrid truth. Vast quantities of Americans no longer respect the American flag because the ideas it is meant to symbolize are lost. If you started reading this in hopes of restoring respect for the flag, it’s probably your fault. Blind respect for the flag accompanied by apathy as the things it represents are destroyed has rendered the flag meaningless. It has become nothing more than a sports team bumper sticker. It’s something to show what side you’re on and help you root for the home team, while simultaneously betraying everything it was supposed to stand for. If you read the litany above and found a way to force it out of your mind, you are the problem. It’s not the punk burning the flag. It’s you, the person who claims to respect it while supporting the actions above. The college kid with the lighter may be destroying a physical flag, but you destroyed the idea of it. Which is worse? Who is really unamerican?

    Certainly, in the comments section under wherever this article is posted, someone will mention those who fought, bled, and died for the flag. I know more combat veterans than most. None have ever told me they fought for the flag or apple pie. When the bullets started flying, they fought for their friends. Those who were really hardcore fought for the mission. It should also be noted that, on the off chance someone knows a person who truly did fight and die for a piece of cloth, recently a teenager died because he mistakenly believed he could beat a train to the crossing. The point is: just because someone died for something they believed in doesn’t make it true. Rather than address the injustice of this soldier dying due to a mistake, you will attempt to politicize his death and allow more soldiers to die in the next war we shouldn’t be involved in.

    When the flag was first hoisted, the country didn’t live up to the symbolism. Genocide, slavery, and injustice followed it everywhere it went as the nation spread from sea to shining sea. Even with that start, the symbolism as outlined was a goal worth pursuing. It was worth the fight. Now, when people ask for justice, the flag-waving American responds with the hashtag of #BlueLivesMatter. When refugees flee US bombs falling on a country ripped apart by a civil war instigated by the US, the country shows no valor or hardiness. It shows fear and hatred. Your blind obedience to the state and the refusal to think about the symbolism of the flag disrespected it long before the first drop of gasoline touched it. You more than disrespected it, you killed it. The person who considers themselves a good American torched the meaning of the flag when they stopped questioning the government the way the Founding Fathers intended and when they stopped aspiring to the symbolism.

    If you want to restore respect for the American flag, it’s very simple. Make it something worthy of respect and stop treating it like a pom-pom at a football game.

  • Paul Craig Roberts: "Once Only Blacks Were Enslaved, Now We All Are"

    Authored by Paul Craig Roberts,

    The 4th of July is upon us.

    We will hear all sorts of patriotic BS about how wonderful we are and how thankful we are to our brave military which defends our liberty.

    Not a word will be said about the destruction by the Bush and Obama regimes of the US Constitution, which once protected our liberty far better than any military action.

     

    Not a word will be said about Washington’s 16 years of purely gratuitous war in the Middle East and North Africa that has destroyed in whole or part seven countries, sending millions of war refugees to overrun the Western World and change the quality of life for Western peoples.

     

    Not a word will be said about Washington’s ongoing insane provocations of Russia and China and Iran and Syria and North Korea that are likely to end in nuclear Armageddon.

    Speeches will celebrate “the exceptional, indispensable USA,” and fireworks will go off, preludes to the onrushing nuclear Armageddon.

    While we listen to speeches of our wonderful fairy tale life, how lucky we are to be so beloved by our Great Democratic Government, the American Association of Retired Persons (AARP) has issued an all points bulletin urging its members to wake up and to urge their US Senators “…to oppose the American Health Care Act passed by the House…"

    "This harmful bill gives billions of dollars to special interests while sticking ordinary Americans with huge premium hikes.

     

    It includes an age tax that would force older Americans to pay thousands of dollars more for their health insurance.

     

    It weakens Medicare and removes protections for people with pre-existing conditions. I urge you to represent my interests—not those of the drug and insurance companies.”

    The last sentence astounded me. How is it possible that a lobby group for retired people can possibly believe that the House and Senate have any interest in serving the American people?

    The House and Senate serve the people who have money, and those people are not the elderly. Thanks to the Federal Reserve, the elderly have not had any interest income on their savings for a decade.

    Moreover, thanks to jobs offshoring, the middle class is shrinking, and grandparents are having to support out of their savings both children and grandchildren. Savings are being drawn down and used up. Retired Americans simply do not have the resources to compete in Washington with the pharmaceutical and insurance corporations who are determined to pillage the elderly.

    In the USA money resides in the hands of the military/security complex, the Israel Lobby (US taxpayers give the money to them), Wall Street and the Banks Too Big To Fail, real estate and insurance, and environmental polluters such as energy, mining, electricity production, and agribusiness. No one else has any money. Therefore, these interest groups determine US domestic and foreign policy.

    The policy of the US government is easy to sum up. It consists of driving the American population into the ground and fomenting war abroad. This is what serves the money interests that control the government.

    Democracy does not exist in America. All the bombast you will hear on the 4th is designed to keep you locked in The Matrix.

    The talk about “taking back your government” is nonsense. The government doesn’t belong to you. You can’t take it back.

    Chris Hedges says that your only alternatives are to overthrow the criminal class in Washington or to accept your slavery.

  • Silicon Valley Begins To Crack Visibly

    Authored by Wolf Richter via WolfStreet.com,

    Chilling photos of for-lease signs lining the Great America Parkway 

    There are parts of Silicon Valley where commercial real estate is still hanging on, and there are parts where it has let go.

    In Santa Clara, it has let go. Overall availability of office space in Santa Clara was nearly 19% in the first quarter, according to Savills Studley, up from 14% a year ago. Only two other areas in Silicon Valley – Milpitas and North San Jose – show greater availability at respectively 23% and a harrowing 30%.

    The availability problem becomes very real along the Great America Parkway, between Highway 237 and Highway 101. It’s near Levi’s Stadium. Nearby, Yahoo owned 49 acres of land that it acquired in 2006 and on which it had planned to build its new headquarters. It tore down the buildings on it and got the project approved for 3 million square feet of office space. It scuttled these plans in 2014 and turned the land into a parking lot for Levi’s Stadium. In April 2016, Yahoo sold the property for $250 million to LeEco, a Chinese company that had surged out of nowhere.

    LeEco was going to get into nearly everything, including electric cars in the US. It was going to build its global headquarters on it and hire 12,000 people. Then came reality. Earlier this year, LeEco in turn scuttled those plans and pulled back from the US, claiming that it had run into a cash crunch. It has since been trying to sell the property. There will be a buyer eventually, as always, but maybe not at $250 million.

    Turns out, that corridor along the Great America Parkway is drowning in office space that is for lease.

    “A growing Commercial Real Estate disaster” – that’s what Michael, who has been to this area on a regular basis since 2010, calls it.

     

    “This should be a thriving area given it is directly in the path to Levi stadium,” he said.

     

    “I have been seeing an incredible amount of construction here and everywhere over the last few years. However in the past year, I am seeing a considerable amount of for-lease signs with new construction projects unabated.”

    Here is the stretch of the Great America Parkway between Highway 237 and Highway 101:

    And here are the for-lease signs Michael photographed in front of office buildings along the Parkway.

    The building below used to sport a Dell logo. The logo disappeared, and now the whole building appears to be under renovation.

    The building across the street now has the Dell logo:

    And more space for lease.

    “Santa Clara and Sunnyvale had some of the most pleasant industrial commercial buildings that blended well with curved roads and lots of trees,” Michael says.

    “Now most of these are being leveled for these glass multi story monsters.”

    “There are at least a million square feet of unoccupied commercial real estate on a single street.”

    “Irrational construction?”

    But it’s not just Santa Clara. According to Savills Studley’s report on the Silicon Valley office sector in Q1, overall availability in Silicon Valley rose to 16% and availability of Class A office buildings jumped nearly four points year-over-year to 20% in Q1.

    In some areas, availability is low. But in others, such as in Santa Clara and San Jose, the opposite is the case. These two cities account for nearly two-thirds of the available space for lease in Silicon Valley. And there is a lot of construction, but only about half of it has been pre-leased.

    Availability in some key places:

    • Palo Alto:  6%
    • Menlo Park:  12%
    • Mountain View/Los Altos:  12%
    • Downtown San Jose:  17%
    • Santa Clara:  19%
    • Milpitas:  23%
    • North San Jose:  30%

    Yet, overall asking rents rose 6% year-over-year. Class B and C asking rents were about flat, but class A asking rents spiked nearly 15%. Even in Santa Clara – despite the vacant offices cluttering up the landscape – overall asking rents rose 5% year-over-year.

    But these are asking rents, not actual deals, where tenants negotiated big concessions and lower rents. And these deals have slowed to a crawl…

    Leasing activity peaked in mid-2015 at 12 million square feet on a trailing four-quarters basis. Leasing activity has since plunged 50% to just 5.8 msf for the trailing four-quarters, even as new supply keeps piling on the market.

    “It is open to debate, though, whether the region is gearing up for more growth or if the rally is winding down,” the report mused.

    And nationally, the Commercial Real Estate boom-and-bust cycle has turned. Read…  Next Asset Bubble Cracks: It’s so Big even the Fed is Fretting

  • Visualizing The Russian Collusion Investigation's Progress

    Presented with no comment…

     

    Source: MichaelPRamirez.com

  • Secret Service Grills Kathy Griffin Over Trump "Severed Head" Stunt

    A little more than a month after Kathy Griffin was fired by CNN for posing for a photo holding President Trump’s bloody severed head, Dan Abrams’ Law Newz blog is reporting that the so-called "comedian" was grilled by the US Secret Service over the controversial photoshoot.

    While Abrams doesn’t provide details about when and where the interview occurred, he did confirm that the interview lasted for more than an hour, and that it was related to Griffin’s desperate virtue-signaling – to other tolerant liberals – stunt.

    //platform.twitter.com/widgets.js

    Griffin’s attorney says the former CNN New Years’ Eve countdown hostess was just exercising her constitutional rights when she posed for the photo:

    “She basically exercised her First Amendment rights to tell a joke,” Dmitry Gorin, a criminal defense attorney representing Griffin said. “When you look at everything in the media, all the times entertainers make videos or express themselves in other ways, you’ve never seen an entertainer, let alone a comedian, be subject to a criminal investigation.”

    As Abrams notes, it’s unlikely that Griffin will be arrested: There is an exception for free speech that incites violence, but a judge would probably consider Griffin’s photo “crude political hyperbole.” Yet, the investigation is ongoing.

    In a teary, nonsensical press conference staged by Griffin a few days after the photo was published, a sobbing Griffin complained that Trump “broke me” and blamed the Trump family for ruining her career and directing a mob of threats and outrage against her.

     

  • The Fed's Definition Of Price Stability Is Probably Different Than Yours

    Authored by Michael  Lebowitz via 720Global.com,

    The Federal Reserve Act, as mandated by Congress, established a dual mandate to guide the Federal Reserve (Fed) in setting monetary policy. Price stability, one of the mandates, benefits economic growth as it allows investors, corporations, and consumers the ability to better predict future prices and therefore allocate investments and spending in a more optimal manner.

    To consider why price stability is beneficial, consider an oil producer deciding whether or not to invest in a new well. To simplify the analysis, assume the producer only needs to consider three variables to properly evaluate the project: (A) investment costs (fixed/variable), (B) a reliable estimation of the amount of oil, and (C) the future price of oil. The expected return equation dictates that profits must be greater than costs (B x C must be greater than A) to forecast a profit on the investment. The company has some control over investment costs and the surveying methods to determine the success of the well, but they have little if any control over the future price of oil. Therefore, the more stable and predictable the future price of oil, the more comfort the producer can have in making its decision about a new well.

    As laid out in the above scenario, the Fed’s price stability objective appears to be positive for the oil executives tasked to make the investment decision. At first glance who can argue that price stability is a bad thing? The problem though is not the objective itself, but how the Fed defines “price stability.” Currently, the Fed believes that their objective to maintain “price stability” would be met if prices, as measured by the Core Personal Consumption Expenditures deflator (PCE- Fed's preferred inflation gauge), were to increase at a 2% rate per year.  

    Ask your spouse, family member or friend what price stability means and they will likely describe a relatively constant price for goods and services over time. Corporate executives and investors would likely answer similarly.

    It is this juxtaposition between the Fed’s definition of stability and the definition most people would use that is worth exploring. More specifically, how has the Fed sold us on the idea that inflation and stability are the same things? The example charts two series of annual rates of price change to help answer that question.

    Which is more stable, the blue or the green line? We venture to guess that you think the blue line is more stable.

    The problem with that judgment is that it does not factor in price stability over any time horizon.

    To maximize profits or quality of consumption, investors, corporations, and consumers are better served with predictability around what the effect of price changes will be over the long term. Given the long time frames associated with investments, capital expenditures and higher priced consumption, annual or even monthly variations in the rate of inflation hold little value. Longer term trends and the value of the dollar are what matter most.    

    The graph below, using the same data as the graph above, charts the purchasing power of a $100 over the 20 year period.

    At a “stable” 2% rate of inflation (blue), the purchasing power of the dollar will be cut in half in 20 years. Said differently, the car you like priced at $35,000 today will cost $70,000 under a “stable price” regime in 20 years. Conversely, under the random scenario (green), with unpredictable year to year price changes, the purchasing power of the dollar remains largely intact for the entire period.

    We now ask again, which scenario is more stable? Which scenario would likely provide more value to our oil executives or anyone needing to know what a dollar can buy in the future?

  • China Joins Russia In Calling For Official Probe Into Use Of Chemical Weapons In Syria

    If there was any confusion whether in addition to Moscow, Beijing was also behind Assad, today all doubts were laid to rest when both Russia and China called on all involved parties “to support the efforts of the OPCW and the United Nations in investigating the alleged use of chemical weapons in Syria,” according to a joint statement by Russian and Chinese leaders on the current international situation posted on Kremlin website on Tuesday, following a meeting between Putin and China’s president Xi Jinping.

    “The sides emphasize that in matters of chemical weapons in Syria, all parties, with respect to Syrian sovereignty, must support the efforts of the Organization for the Prohibition of Chemical Weapons [OPCW] and relevant UN structures to conduct an independent and comprehensive investigation in order to obtain irrefutable evidence, establish genuine circumstances and draw conclusions that are capable of withstanding the verification by facts and time.”

    Additionally, in the document Russia and China both “strongly condemn any use of chemical weapons anywhere and by anyone.”

    The statement came days after the White House claimed last week that a new attack involving chemical weapons was being prepared by the Syrian government, however, failed to and declined to present any evidence. Washington vowed to make Syrian authorities “pay a heavy price” in case of chemical weapons use. Commenting on the White House’s statement, the Kremlin said that it considers US threats against Syrian legitimate leadership to be “unacceptable.” Damascus also denied the information.

    Furthermore, after a bilateral meeting between Russian President Vladimir Putin and his Chinese counterpart Xi Jinping, the two sides called for respecting the sovereignty and territorial integrity of Syria, as well as for a political solution to the Arab country’s crisis through an inclusive dialogue.

    “The parties underline the necessity of respecting the sovereignty, independence, unity and territorial integrity of the Syrian Arab Republic, call for settlement of the Syrian crisis in a political and diplomatic manner through broad intra-Syrian dialogue without any preconditions and external intervention, for a search for a political settlement option that matches the particular Syrian conditions and takes the concerns of all the parties to the conflict into account.”

    Moscow and Beijing also said they welcome the Geneva talks between representatives of Syrian government and the opposition, the statement said.

    Meanwhile, going back to the original fake chemical attack that was used to justify the US ballistic missile strikes on Syria in April, Damascus has repeatedly denied any involvement in the incident and said that the Syrian government doesn’t possess chemical weapons as the full destruction of Damascus’ chemical weapons stockpile had been confirmed by the Organization for the Prohibition of Chemical Weapons (OPCW) in January 2016.

    So far the US has failed to explain why it refuses to accept the Syrian offer to investigate the airbase that served as the alleged source of the chemical attack, although one particular explanation is quite obvious to all.  In any case, should Trump resort to another attack on Syria, once again using the fabricated excuse that Assad’s regime used chemical weapons, this time the US will have not only Russia but China as its foreign policy adversaries, as the global axes are becoming increasingly more distinct ahead of the next world war.

  • Illinois Tax Rate Soars 32% After Senate Overrides Governor Veto

    Two days ago when we reported that the Illinois House had voted 72-45 to pass a 32% income tax hike (and a $36 billion spending plan), in an last ditch scramble to provide the state with its first budget in three years (or else suffer the first ever US downgrade to “Junk”), we said that “ultimately, the fate of Illinois’ credit rating is now in the hands of Rauner, and whether and how fast his imminent veto is overriden.”

    We got the answer on Independence Day afternoon, when just around noon, first the Senate voted to approve the House tax hike and spending bill, then shortly after, Gov. Rauner – just as he warned he would – vetoed both the income tax increase and the budget bill and budget implementation bill….

    //platform.twitter.com/widgets.js

    …. only to be himself overriden moments later by the Senate, as it took the drastic measure to end a record budget impasse.

    The 36-18 vote in the Senate on the tax hike came after a very short debate, and two days after more than a dozen Republicans in the House broke ranks with Rauner to join Democrats to support the plan amid growing frustration.

    Needless to say, former PE titan, Bruce Rauner disagreed, and in his veto message to lawmakers said that “the package of legislation fails to address Illinois’ fiscal and economic crisis —and in fact, makes it worse in the long run. It does not balance the budget. It does not make nearly sufficient spending reductions, does not pay down our debt and holds schools hostage to force a Chicago bailout.” Rauner also noted he did not get the economic agenda items he had made a requirement to sign a tax hike into law.

    “This budget package does not provide property tax relief to struggling families and employers. It does not provide regulatory relief to businesses to create jobs and grow the economy. It does not include real term limits on state elected officials to fix our broken political system” said Rauner, listing the issues from what he once dubbed his “turnaround agenda.”


    Gov. Bruce Rauner holds a press conference

    It does however stave off the day of reckoning and potentially Illinois junk status downgrade.

    The voting came as Illinois entered its third year without a budget amid Wall Street’s threat of a credit downgrade to junk status, potential layoffs of construction workers and with Illinois already booted from the Powerball and Mega Millions lottery games.

    “We don’t have any time left,” said Sen. Toi Hutchinson, D-Olympia Fields. She laid out what is at stake without a resolution, including the state’s credit rating being downgraded to junk status, road workers being laid off, and the dismantling of higher education and social safety net.

    * * *

    The tax hike and budget now head to the House, which also will have to vote to override Rauner for them to become law. But according to the Chicago Tribune, Democratic Speaker Michael Madigan said the House would not do so Tuesday, meaning the budget process will play out at least another day. The House is not scheduled to convene until 4:30 p.m., but attendance has been an issue as lawmakers had dispersed for the holiday. Still no surprises are expected:

    “I think that the Senate vote is reflective of the vote in the House. I think it speaks to all the hard work that has been done by a bipartisan group in the legislature,” Madigan told WICS-TV of Springfield after the vote. “My expectation is that the bills that the Senate just passed will become law and we will have taken a huge step toward correcting the financial imbalances of the state of Illinois.”

    Perhaps, although some have suggested that instead of hiking taxes, which will lead to a fresh exodus of taxpayers from both Chicago and Illinois (recall the Chicago population is already shrinking the most of any US city) what the budget should have done is slash spending. Of course, that is the last thing on the mind of legislators of one of America’s biggest nanny states.

    In fact, quite the opposite: the accompanying budget plan, which the Senate also quickly approved 39-14, would have the state spend a little more than $36 billion, about $4 billion more than it currently takes in from taxes. In other words, Illinois just “saved” itself from default but assuring it would end up with even more debt.

    * * *

    Going back to the vote, as the Tribune adds, the 36 votes in the Senate was the minimum needed both to pass and override a veto. There are 37 Democrats in the Senate, but two voted no. They are Sen. Julie Morrison of Deerfield, and Sen. Tom Cullerton of Villa Park. Both likely will face a tough re-election challenge. Sen. Bill Haine, D-Alton, who has been undergoing treatment for blood cancer since February, traveled to the Capitol to vote for the plan. The critical vote belonged to Republican Sen. Dale Righter of Mattoon, who noted the damage done to Eastern Illinois University in his district.

    “Every dollar that we throw onto the backlog of bills is a dollar the next generation has to pay for even though we got to spend it,” Righter said. “That’s simply wrong, and that is the basis for which I support this.”

    * * *

    So do today’s last minute Senate fireworks mean no Illinois downgrade to junk is coming? It remains to be seen: the movement after years of dysfunction was enough to delay the state’s credit rating from being cut to junk status by Wall Street ratings agencies Monday, though they warned that much rides on a final approval of the budget package.  Even then, S&P Global Ratings warned that long-term damage has already been done.

    Even with a budget, however, it’s likely that Illinois’ finances would remain strained and vulnerable to unanticipated economic stress,” the agency said. “In addition to having accumulated record amounts of payables, the state’s university system has been deprived of state funding since January 2017. If a budget is enacted, the degree to which it closes the state’s structural deficit, provides a pathway for addressing the backlog of unpaid bills, and its impact on cash flows, will be important factors in our review of its effect on Illinois’ credit quality.”

    Meanwhile, on Monday Fitch called the weekend developments “concrete progress,” noting that it appears the legislature may have enough votes to override Rauner’s planned veto of the tax hike. S&P called the actions a “meaningful step.” Yields on the state’s 10-year debt have soared to 4.8 percent, 2.8 percentage points more than those of benchmark obligations. That’s the highest yield of all 22 states that Bloomberg tracks.

    It would be the ultimate insult to Illinois if despite the last minute scramble, S&P were to do to the insolvent state what it did to the USA in August 2011, when despite the pleas of Obama, Geithner and the entire administration, it went ahead and did the unthinkable, when it downgraded the US from its vaunted AAA rating. In any case, it’s only a matter of time before Illinois slides not only to Junk, but to Default as well…

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Today’s News 4th July 2017

  • Italian Ports Bombarded With Migrants; Interior Minister Demands Other EU Nations "Step Up"

    More than a year after the BREXIT referendum shocked the world, the various EU member nations are seemingly no closer to a consensus on how to deal with Europe’s migrant influx.  The lack of a coordinated plan and disproportionate distribution of migrants across the continent has Italy threatening to close their ports to privately-funded aid boats until other nations “step up.”   Per Yahoo News:

    With arrivals in Italy up nearly 19 percent over the same period last year, Rome has threatened to close its ports to privately-funded aid boats or insist that funding be cut to EU countries which fail to help.

     

    “There are NGO ships, Sophia and Frontex boats, Italian coast guard vessels” saving migrants i the Mediterranean, Minniti said, referring to the aid boats as well as vessels deployed under EU border security missions.

     

    “They are sailing under the flags of various European countries. If the only ports where refugees are taken to are Italian, something is not working. This is the heart of the question,” he said.

     

    “I am a europhile and I would be proud if even one vessel, instead of arriving in Italy, went to another European port. It would not resolve Italy’s problem, but it would be an extraordinary signal” of support, he said.

     

    Of course, in the face of the ever-growing crisis, the interior ministers of France, Germany and Italy got together to do what politicians do best: talk.  And while we’re sure that European citizens are very happy that “the talks went off very well,” somehow we suspect the continued “all talk, no action” approach to the crisis is not entirely satisfactory for a continent that has been devastated by terrorist attacks of late.  

    The French and German interior ministers met with their Italian counterpart Marco Minniti in Paris on Sunday to discuss a “coordinated response” to Italy’s migrant crisis, hours after Minniti had called on other European countries to open their ports to rescue ships.

     

    The working dinner at the French interior ministry — also attended by EU Commissioner for Refugees Dimitris Avramopoulos — was aimed at finding “a coordinated and concerted response to the migrant flux in the central Mediterranean (route) and see how to better help the Italians,” a source close the talks said.

     

    The four-way talks between Minniti, Thomas de Maiziere of Germany, Gerard Collomb of France and Avramopoulos will also prepare them for EU talks in Tallinn this week.

     

    “The talks went off very well,” a member of the Italian delegation told AFP after the Paris meeting, with the “Italian proposals being discussed”. The source offered no other details.

     

    “We are under enormous pressure,” Minniti had said earlier Sunday in an interview with Il Messaggero.

    Meanwhile, over 2,000 migrants have died this year alone in their attempts to cross the Mediterranean.

    More than 83,000 people rescued while attempting the perilous crossing from Libya have been brought to Italy so far this year, according to the UN, while more than 2,160 have died trying, the International Organization for Migration says.

     

    Italy’s Red Cross has warned the situation in the country’s overcrowded reception centres is becoming critical.

     

    “What is happening in front of our eyes in Italy is an unfolding tragedy,” UN High Commissioner for Refugees Filippo Grandi said on Saturday.

     

    Minniti said Rome would be pushing for a way to shift the asylum application process from Italy to crisis-hit Libya, and safely bring to Europe those who win the right to protection.

     

    “We have to distinguish before they set off (across the Mediterranean) between those who have a right to humanitarian protection and those who don’t,” he said.

    Perhaps, at some point, politicians will learn how to act rather than just talk…but we won’t hold our breath.

  • THe MoDeRN SPHiNX…
  • Trump Responds To N.Korea's Rocket Launch: "Does Kim Have Anything Better To Do With His Life?"

    On Monday night, following news of the latest North Korean ballistic missile launch which as discussed earlier landed in the Sea of Japan, and specifically Japan’s quasi-sovereign Economic Exclusion Zone, Trump tweeted his reaction to the latest provocation, which probably falls under the “modern day presidential” umbrella.

    Trump decided to eschew conventional diplomacy, and stated matter of facty, that “North Korea has just launched another missile” then prioeeded to ask of Kim Jong-Un, “does this guy have anything better to do with his life?

    //platform.twitter.com/widgets.js

    Apparently the answer is no, which may explain why it was recently revealed that South Korea’s previous president was seriously contemplating the assassinating Kim.

    In his second tweet, Trump added “gard to believe that South Korea and Japan will put up with this much longer. Perhaps China will put a heavy move on North Korea and end this nonsense once and for all!.”

    //platform.twitter.com/widgets.js

    Or perhaps after China slammed over the weekend the recent multi-billion US sale of weapons to China’s nemesis Taiwan, not to mention the deployment of a US missile-destroyer in the South China Seas which was promptly intercepted by Chinese forces, as well as Trump’s sanctioning of several Chinese entities for “doing business with North Korea, maybe China won’t do anything at all, and instead will cultivate and fund local and not so local terrorist to pick up the “global cleansing” role.

  • Missouri Legislature Reverses St. Louis Minimum-Wage Hike

    A week ago, we reported on a study from the University of Washington that exposed how the city of Seattle’s progressive minimum wage increases, which began in 2015, are – contrary to the hopes of misguided liberals – actually crushing the city’s poor.

    Specifically, the study found that higher minimum wages caused a 9.4% reduction to total hours worked by low-skilled workers, or roughly 14 million hours per year.  Given that a full-time employee works 2,080 hours per year, that's equivalent to just over 6,700 full-time equivalents who have lost their jobs, just in the city of Seattle.

    While the higher minimum wage law remains intact in liberal Washington State – despite the research suggesting that it’s harming Seattle's most vulnerable workers – the Missouri legislature recently acted to prevent a similar catastrophe from playing out in St. Louis by passing what’s known as a preemption law to invalidate a city-approved minimum wage hike that was slated to take effect in late August. The hike would’ve raised the city’s minimum wage to $10 an hour, from the state-approved $7.70.

    Preemption laws are becoming increasingly popular in GOP-controlled states as cities – typically bastions of liberal sentiment – try to raise minimum wages above statewide minimum levels. As the Huffington Post reports, it’s impossible to say how many St. Louis employers will take the GOP up on the offer to slash pay, given the effect such a move could have on competitiveness and morale.

    But if businesses agree that the wage hike was too aggressive, then at least some of them will likely revert to lower pay rates, particularly in low-wage industries like fast food.

    “If St. Louis’ existing measure were to stay in effect, the city’s minimum wage would be $10 this year and would then climb to $11 in 2018. The statewide rate of $7.70 typically goes up just a few cents a year, since it’s tied to an inflation index.

     

    St. Louis originally passed a minimum wage hike two years ago, prompting business groups to sue to stop it in court. The Missouri Supreme Court recently ruled that the St. Louis measure was lawful, but the new state preemption law renders it irrelevant.”

    However, St. Louis is one of the more interesting preemption-law case studies because it undoes a hike that was already approved – even if it hadn’t yet gone into effect. But at least 17 states have preemption laws that stand in the way of local minimum wage legislation, according to a recent study by the National League of Cities.

    Though Missouri is hardly alone. Just days after the Birmingham, Ala. City Council passed a wage hike in February 2016, GOP state legislators in Alabama passed a preemption law taking aim at the new $10.10 minimum wage. The Alabama chapter of the NAACP ended up filing a civil rights lawsuit against the state, claiming that the majority-white legislature was disenfranchising Birmingham residents, who are 73 percent African-American.

    Fearing the political backlash associated with potentially cutting people’s pay, Missouri Gov. Eric Greitens wouldn’t affix his signature to the bill; Missouri’s constitution stipulates that bills that go unsigned by the governor automatically become law.

  • You Want A Picture Of The Future? Imagine A Boot Stamping On Your Face

    Authored by John Whitehead via The Rutherford Institute,

    We have arrived, way ahead of schedule, into the dystopian future dreamed up by such science fiction writers as George Orwell, Aldous Huxley, Margaret Atwood and Philip K. Dick.

    Much like Orwell’s Big Brother in 1984, the government and its corporate spies now watch our every move.

    Much like Huxley’s A Brave New World, we are churning out a society of watchers who “have their liberties taken away from them, but … rather enjoy it, because they [are] distracted from any desire to rebel by propaganda or brainwashing.”

    Much like Atwood’s The Handmaid’s Tale, the populace is now taught to “know their place and their duties, to understand that they have no real rights but will be protected up to a point if they conform, and to think so poorly of themselves that they will accept their assigned fate and not rebel or run away.”

    And in keeping with Philip K. Dick’s darkly prophetic vision of a dystopian police state—which became the basis for Steven Spielberg’s futuristic thriller Minority Report which was released 15 years agowe are now trapped into a world in which the government is all-seeing, all-knowing and all-powerful, and if you dare to step out of line, dark-clad police SWAT teams and pre-crime units will crack a few skulls to bring the populace under control.

    Minority Report is set in the year 2054, but it could just as well have taken place in 2017.

    Seemingly taking its cue from science fiction, technology has moved so fast in the short time since Minority Report premiered in 2002 that what once seemed futuristic no longer occupies the realm of science fiction.

    Both worlds—our present-day reality and Spielberg’s celluloid vision of the future—are characterized by widespread surveillance, behavior prediction technologies, data mining, fusion centers, driverless cars, voice-controlled homes, facial recognition systems, cybugs and drones, and predictive policing (pre-crime) aimed at capturing would-be criminals before they can do any damage.

    All of this has come about with little more than a whimper from a clueless American populace largely comprised of nonreaders and television and internet zombies. But we have been warned about such an ominous future in novels and movies for years.

    The following films may be the best representation of what we now face as a society.

    Fahrenheit 451 (1966). Adapted from Ray Bradbury’s novel, this film depicts a futuristic society in which books are banned and serves as an adept metaphor for our obsessively politically correct society where virtually everyone now pre-censors speech.

    THX 1138 (1970). This is a somber view of a dehumanized society totally controlled by a police state. The people are force-fed drugs to keep them passive, and they no longer have names but only letter/number combinations such as THX 1138. Any citizen who steps out of line is quickly brought into compliance by robotic police equipped with “pain prods”—electro-shock batons.

    Soylent Green (1973). Set in a futuristic overpopulated New York City, the people depend on synthetic foods manufactured by the Soylent Corporation. The theme is chaos where the world is ruled by ruthless corporations whose only goal is greed and profit.

    Blade Runner (1982). In a 21st century Los Angeles, human life is cheap, and anyone can be exterminated at will by the police (or blade runners). Based upon a Philip K. Dick novel, this exquisite Ridley Scott film questions what it means to be human in an inhuman world.

    Nineteen Eighty-Four (1984). The best adaptation of Orwell’s dark tale, this film visualizes the total loss of freedom in a world dominated by technology and its misuse, and the crushing inhumanity of an omniscient state.

    They Live (1988). John Carpenter’s bizarre sci-fi social satire action film makes an effective political point about the underclass—that is, everyone except those in power—the point being that we, the prisoners of our devices, are too busy sucking up the entertainment trivia beamed into our brains and attacking each other up to start an effective resistance movement.

    The Matrix (1999). Humanity is at war against technology which has taken the form of intelligent beings, and computer programmer Thomas A. Anderson, secretly a hacker known by the alias “Neo,” is actually living in The Matrix, an illusionary world that appears to be set in the present in order to keep the humans docile and under control.

    Minority Report (2002). This film poses the danger of technology operating autonomously. Before long, we all may be mere extensions or appendages of the police state—all suspects in a world commandeered by machines.

    V for Vendetta (2006). This film depicts a society ruled by a corrupt and totalitarian government where everything is run by an abusive secret police. The subtext here is that authoritarian regimes through repression create their own enemies—that is, terrorists—forcing government agents and terrorists into a recurring cycle of violence.

    Land of the Blind (2006). This dark political satire is based on several historical incidents in which tyrannical rulers were overthrown by new leaders who proved just as evil as their predecessors.

    All of these films—and the writers who inspired them—understood what many Americans, caught up in their partisan, flag-waving, zombified states, are still struggling to come to terms with: that there is no such thing as a government organized for the good of the people. Even the best intentions among those in government inevitably give way to the desire to maintain power and control at all costs.

    Eventually, as I point out in my book Battlefield America: The War on the American People, even the sleepwalking masses (who remain convinced that all of the bad things happening in the police state—the police shootings, the police beatings, the raids, the roadside strip searches—are happening to other people) will have to wake up.

    Sooner or later, the things happening to other people will start happening to us and our loved ones.

    When that painful reality sinks in, it will hit with the force of a SWAT team crashing through your door, a taser being aimed at your stomach, and a gun pointed at your head. And there will be no channel to change, no reality to alter, and no manufactured farce to hide behind.

    As George Orwell warned, “If you want a picture of the future, imagine a boot stamping on a human face forever.”

  • Georgia Sec. Of State Blasts "Fake News"; Says Media Biggest Threat To Democracy Not Russian Hackers

    Back in December, the Georgia Secretary of State, Brian Kemp, publicly blasted the Obama administration and the Department of Homeland Security for repeated attempts to hack into his state’s election system.  Kemp figured the attempts were nothing more than an effort to expose security flaws in state election systems so that Homeland Security could designate all election systems as “Critical Infrastructure” and seize control in a massive “federal power grab.”  Here is a recap from our previous post:

    Last week we noted a letter from Georgia Secretary of State, Brian Kemp, to the Department of Homeland Security questioning why someone with a DHS IP address (216.81.81.80) had attempted to hack into his state’s election database on November 15, 2016 at 8:43AM.  Now, according to WSB-TV in Atlanta, we learn that Georgia’s election systems were actually the target of hacking by DHS on 10 separate occasions

    The Georgia Secretary of State’s Office now confirms 10 separate cyberattacks on its network were all traced back to U.S. Department of Homeland Security addresses.

     

    In an exclusive interview, a visibly frustrated Secretary of State Brian Kemp confirmed the attacks of different levels on his agency’s network over the last 10 months. He says they all traced back to DHS internet provider addresses.

     

    “We’re being told something that they think they have it figured out, yet nobody’s really showed us how this happened,” Kemp said. “We need to know.”

     

    Kemp told Channel 2’s Aaron Diamant his office’s cybersecurity vendor discovered the additional so-called vulnerability scans to his network’s firewall after a massive mid-November cyberattack triggered an internal investigation.

    Meanwhile, Kemp pointed out that all of the attempted hackings occurred around critical registration and voting deadlines calling into question whether “somebody was trying to prove a point.”

    But while the election, and the Obama administration, are now long gone, Kemp’s fight to protect his state’s election infrastructure from being taken over by the feds is still going full steam.  That said, it’s not the Obama administration’s hacking efforts that has Kemp worried these days, it’s “misinformation from the media” which he now says is the biggest threat to Democracy.  Below is an excerpt from an opinion piece that Kemp published in the USA Today:

    Misinformation from the media or disgruntled partisans not only fuels conspiracy theorists but also erodes the first safeguard we have in our elections — the public’s trust. Failing to respect this process with accurate reporting is a disservice to the American people.

     

    To be candid, the most plausible and potentially effective attack on our elections is not by hacking the vote — it is through the manipulation of the American media machine. With “breaking news” that generates voter confusion, these baseless attacks and inaccurate stories enhance voter apathy and erode our confidence in the cornerstone of our democracy. That’s the real story.

    Kemp goes on to lament about the number of calls he’s now forced to field on a daily basis from “misinformed” reporters that have no interest in learning the facts about his state’s election infrastructure but rather seek to “dilute facts and develop false narratives about Russian hacking and potential vulnerabilities in the system.”

    For years, we have run our elections with little interest from the press. But during last year’s presidential election, everything changed with the news media’s obsession with Russian meddling.

     

    Now, we are bombarded with questions about election security from reporters on tight deadlines. Their questions often reflect a complete misunderstanding of voting systems and what safeguards are in place to keep them secure.

     

    As reporters chase stories to feed the 24-hour news cycle, they dilute facts and develop false narratives about Russian hacking and potential vulnerabilities in the system. The prevailing plot line is that states like Georgia can’t provide suitable security for elections.

     

    Many news media elite think federal oversight is the answer. Republican and Democratic secretaries of state disagree. A “critical infrastructure” designation is simply a big government power grab.

    Of course, while we can’t argue with the logic, we somehow doubt Kemp’s opinion will sway CNN’s wall-to-wall coverage of “Russian hacking.”

    * * *

    Below is Kemp’s full opinion piece from the USA Today:

    As Georgia’s secretary of state, I have worked tirelessly to ensure our state’s elections are secure, accessible and fair.

    For years, we have run our elections with little interest from the press. But during last year’s presidential election, everything changed with the news media’s obsession with Russian meddling.

    Now, we are bombarded with questions about election security from reporters on tight deadlines. Their questions often reflect a complete misunderstanding of voting systems and what safeguards are in place to keep them secure.

    As reporters chase stories to feed the 24-hour news cycle, they dilute facts and develop false narratives about Russian hacking and potential vulnerabilities in the system. The prevailing plot line is that states like Georgia can’t provide suitable security for elections.

    Many news media elite think federal oversight is the answer. Republican and Democratic secretaries of state disagree. A “critical infrastructure” designation is simply a big government power grab.

    Informed, non-partisan experts agree that manipulating a presidential election makes a good TV storyline but lacks real-world standing. State voting systems are diverse, highly scrutinized and not connected to the Internet. Web-based attacks on voter registration do not affect the vote count. The thing that matters most — your vote — is secure.

    Misinformation from the media or disgruntled partisans not only fuels conspiracy theorists but also erodes the first safeguard we have in our elections — the public’s trust. Failing to respect this process with accurate reporting is a disservice to the American people.

    To be candid, the most plausible and potentially effective attack on our elections is not by hacking the vote — it is through the manipulation of the American media machine. With “breaking news” that generates voter confusion, these baseless attacks and inaccurate stories enhance voter apathy and erode our confidence in the cornerstone of our democracy. That’s the real story.

    Are states doing enough to keep our elections secure? Yes.

    Anything to the contrary is fake news.

  • Nasdaq Triggers Market-Wide Circuit-Breaker As AMZN "Crashes" 87% After-Hours

    Nasdaq has issued a market-wide trading halt amid what appears to be a "glitch" that sent a number of the largest Nasdaq-listed stocks to crash or spike to exactly $123.47 per share.

    This move crashed the value of companies including Amazon and Apple, sparked chaos in Microsoft, while sending Zynga rocketing up more than 3000%.

    On the eve of the US Independence Day holiday and in after-hours trading, The FT reports that market data show that companies such as Apple, Amazon, Microsoft, eBay and Zynga were repriced at $123.47.

    The Bloomberg data terminal listed either “market wide circuit breaker halt — level 2” or “volatility trading pause” on all the stocks affected.

     

    The glitch did not affect any market trading, including after hours.

    The mysterious reset to $123.47 per share meant that Amazon in theory saw its share price marked down 87.2 per cent…

    while shares in Apple fell 14.3 per cent…

    But Nasdaq-listed Microsoft had jumped 79.1 per cent — which would value the company at nearly $1tn…

     

    As Bloomberg reports, the apparent swings triggered trading halts in some securities, according to automatically generated messages. The halts are a mechanism exchanges use to limit the impact of particularly volatile sessions. A system status alert on Nasdaq’s website said that systems were operating normally at 8:23 p.m. ET. After-market hours on Nasdaq typically last from 4 p.m. to 8:00 p.m.

    In a statement, Nasdaq said the glitch was related to “improper use of test data” sent out to third party data providers, and said it was working to “ensure a prompt resolution of this matter”. In cases of any clearly erroneous data, trades made are cancelled.

    As a reminder this is not the first time 'glitches' have occurred on holidays… remember gold on Thanksgiving 2014.

  • North Korea Fires Ballistic Missile Which Lands In Japan's Exclusive Economic Zone

    Update: According to the S. Korea military, the N. Korea’s missile flew more than 930km, before dropping into the sea. Separately, US Pacific Command said in statement that North Korea launched a land-based intermediate-range ballistic missile on Tuesday morning. The missile was tracked for 37 minutes and landed in the Sea of Japan.

    * * *

    North Korea fired an “unidentified ballistic missile” from a province near the border with China on Tuesday, South Korea’s military said. The launch took place just days after the South’s new President Moon Jae-In and US President Donald Trump focused on deescalation of tensions on the Korean peninsula in their first summit.

    “North Korea fired an unidentified ballistic missile into the East Sea from the vicinity of Banghyon, North Pyongan Province, at around 9:40 a.m.,” the Joint Chiefs of Staff said cited by Yonhap.

    The projectile reportedly landed in Japan’s Exclusive Economic Zone, Takahiro Hirano, Public Affairs Officer from Japan’s Ministry of Defense told CNN, an outcome which Tokyo may deem an act of aggression, and promptly retaliate against.

    Japan’s Chief Cabinet Secretary Yoshihide Suga confirmed that the launch took place at 9:39 am and said that Japanese government would convene National Security Council Meeting; he added that Japan strongly protested to North Korea of its action.

    “On Tuesday, at 09:39 [00:39 GMT on Tuesday] North Korea launched a ballistic missile. The flight has lasted for 40 minutes, the missile fell into Japan’s exclusive economic zone  in the Sea of Japan. By this hour, there is no information on the damage inflicted to Japanese aircraft and ships,” Suga said at a press conference.   

    Suga also said Prime Minister Shinzo Abe ordered to gather related information and analysis.

    Shortly after the launch, Japanese Prime Minister Shinzo Abe said today’s missile launch by N. Korea is a clear indication that its threat is escalating, and added that N. Korea has ignored repeated warnings by international community.  Abe said confirmed strong ties with U.S. after speaking to President Donald Trump yesterday; Abe spoke to reporters in Tokyo after convening NSC meeting, remarks were carried on national broadcaster NHK. Abe also called on China and Russia to play a more “constructive” role.

    On Monday, North Korea celebrated the day of strategic forces of the Korean People’s Army (KPA) with a statement in its state-run newspaper that the country’s rockets may strike anywhere in the world. 

    The newspaper reminded about recent successful launches of ballistic missiles Hwasong-12, Pukguksong-2, as well as cruise missiles. The situation on the Korean peninsula has become aggravated in recent months due to a series of missile launches and nuclear tests conducted by Pyongyang, all of which are claimed to be in violation of UN Security Council resolutions. The previous launch took place on June 8, when North Korea carried out a launch of short-range anti-ship missiles, reportedly flying some 124 miles before dropping into the Sea of Japan.

    We expect a statement to be issued momentarily by the White House.

  • The Saudi-Qatar Rift Has Elements Of World War Potential

    Via GEFIRA,

    The First and the Second World War were the culmination of rivalries that go as far back as over a thousand years, when Charlemagne subjugated the Saxon tribes inhabiting modern Germany, and creating the Carolingian Empire. The political successors of Franks, France, and Saxons, the latter morphing into the Holy Roman Empire, then Prussia, then Germany, would continue to fight border wars until the bloodiest of them all, World War 2, inflicted enough destruction to both to force them to give up military means for the reciprocal arrangements.

    The First World War was triggered by a regional episode, the assassination of the Archduke of Austria, Franz Ferdinand, by Serb nationalists that put in motion the alliance of the German world, Austria and Prussia against the British, French and Russian one.

    Just like the two world wars in Europe were triggered by a single event, so can long standing, unresolved rivalries for power and influence over the Middle East result in the mother of all wars.

    Qatar and Saudi Arabia have collaborated in the recent years to overthrow the Assad presidency in Syria and replace it with a Sunni Muslim leader that would allow the creation of a pipeline from Qatar to Europe, for the benefit of the Gulf countries.

    The failure of the American-Saudi-Qatari coalition however re-opened old wounds. In the recent weeks, the Saudi-led bloc, including Jordan, Egypt and Bahrain has broken all ties with Qatar, accusing it of working with terrorist groups and having too close ties with Iran. Since then, having cashed in on the support of US President Trump, Saudis have given a list of 13 demands to Qatar, which the latter has no intention to comply with.

    In the meanwhile, very much like WW1 preparations, the game of alliances has started: Qatar, having lost the protection of the Arab world, sought it elsewhere, and found in Turkey.

    As for now the Iranian bloc, Iran itself, Iraq and Syria, is standing on the sidelines, and watching the developments.

    Iranians, Turks and Arabs are the three peoples who have been contesting each other’s dominance over the Middle East for the past 1400 years, and are now moving towards the next chapter of their confrontations.

    The historical background

    The first Iranian-Arab conflict is as old as the history of Islam itself. By 632 AD, then Zoroastrian Persia (the Western name of Iran) had undergone a 30 year-long nonstop conflict with the other regional mammoth, the Eastern Roman Empire. When the Muslim forces under Mohammad and then the Caliphs launched their attacks, Persia, weakened additionally with an ongoing civil war for the Sassanid throne, could barely mount any resistance.

    Iranians converted to Islam, but it soon became evident that their culture was significantly more sophisticated than that of their rulers. By 850 AD, Iranian dynasties broke free from the leadership of the Arab Caliph in Baghdad and went on to restore the Iranian language, costume and political institutions in what is known by historians as “Iranian intermezzo’’ They eventually ousted the Caliph from his capital.

    Arab dominance over Iran lasted only two centuries, but a new player would soon arrive on the scene. From the steppes of Central Asia, broadly known as Turkestan, in the 11th century, nomad Turkish tribes under Seljuk and his successors broke into Persia and quickly subjugated it, creating the Great Seljuk Empire, which would quickly expand to include the Arabic peninsula, Mesopotamia, Syria, and would then wrestle from the Eastern Roman Empire Armenia and Anatolia, while converting to Sunni Islam.

    Even the Arab Caliph of the Abbasid dynasty, who returned to Baghdad, would become a vassal of the Turks. While the ruling dynasty among Turks would switch from Seljuks to Ottomans after the Mongol invasions, the Arab world would essentially remain under Turkish rule until the end of the First World War, save for the brief period of the Ayyubids of Kurdish descent, followed by Mamelukes. Ottoman dominance can be even further exemplified by the abolition of the institution of the caliphate by Ottoman rulers.

    Even after the dissolution of the Ottoman Empire, the Arab world has failed to unite again, divided by the Sunni-Shia schism and local dynasties.

    The Persian world on the other side, just like it managed to break free from Arab rulers, would break free from the Turkish Seljuks as well, becoming once again its own master under the Khwarezmian dynasty. Very much like in the previous time, it would be short lived, due to the invasion of another nomadic people of the steppe, the Mongols; and just like in the previous times, Iranians would manage to oust foreign rulers and reorganize themselves under the Safavids. To signify their independence, Safavids adopted the Shia version of Islam, a choice that still lasts today, as a breakaway from the Sunni Arabs and Turks.

    Safavids and the successive dynasties ruling Iran would remain the main opponent of the Ottoman Empire’s rule of the Middle East until the first half of the 20th century.

    Back to the present

    Since then, Iranians have switched from a monarchy to a theocratic republic, Turks have switched from a monarchy to a secular republic, while Arabs are still struggling to find a uniting leader: the Arab nationalist movement (Baath) under Saddam Hussein that waged war against Iran, echoing the Muslim invasion of Persia, ultimately failed. Saudis, who have quickly amassed enormous wealth thanks to oil revenues, are now ambitiously and aggressively trying to assert their dominance over their neighours. Battle lines are being drawn: Turkey and Qatar on one side, Saudi Arabia, Egypt, Jordan and Bahrain on another and the Shia bloc of Iran, Iraq and Syria for a three-way dance that might have been ignited by the Qatari-Saudi rift.

    Over a thousand of years ethnic and religious rivalries are readying to culminate in what, thanks to technological development, could easily be the bloodiest chapter of them all.

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Today’s News 3rd July 2017

  • The Only Way Out Of The Qatar Crisis

    Authored by Ahmed Chari via The Strategic Culture Foundation,

    Qatar has been known for years as a small peninsula nation that punches far above its weight. Its immense oil wealth and enormous influence, through its English- and Arabic-language Al Jazeera channels, have given it diplomatic clout across the Arab world. Its soft power has been felt in negotiations in Darfur, Tripoli, Sanaa and elsewhere. Everywhere it has been either admired or envied.

    Now Qatar is on its back feet, fighting off criticism from all sides. Qatar’s candidate to run UNESCO is now almost certain to lose; a few months earlier, he was the frontrunner. Activists are pressing FIFA to bar Qatar from hosting the World Cup. Pressure is mounting to close the U.S. air base in Qatar; U.S. Air Force general Charles Wald, who opened the base in 2001, is now, in retirement, publicly calling for its closure. A coalition of thirty-four thousand predominantly African American churches protested Qatar in Washington, DC, on June 28, citing Qatar’s persecution of Christians, Jews and other religious minorities. (Qatar bans crosses on the outside of churches and bars public prayer by Christians, even though there may be more Christians in the country than the three hundred thousand native Qataris.) The protest, outside Qatar’s embassy at Twenty-Fifth and M Streets, is the first-ever public demonstration against Qatar in Washington. It won’t be the last.

    Even more dramatically, Qatar’s neighbors and allies have turned against it. Saudi Arabia, Egypt, Bahrain and the United Arab Emirates have cut diplomatic ties with Qatar and closed their air and sea ports to Qatar’s planes and ships. The Arab-language media is full of venom directed at Qatar. Now it is either pitied or feared.

    What happened? Qatar was found to be funding the enemies of America and its Arab allies. Washington policymakers are concerned that Qatar has funded, according to the U.S. State department, Al Qaeda affiliates in Syria as well as elements of ISIS—the very groups America is bombing in its campaign to liberate northern Iraq. It also supports Hamas, which both the United States and EU have designated as a terrorist organization. Bahrain believes that Qatar is supporting armed opposition groups against its royal family. The Saudis fault Qatar’s financial support to the Yemen-based Houthi rebels (opposed to the Saudi regime) as well as Qatar’s backing for violent opposition groups in the Saudi province of Al Qatif, which is mostly Shia.

    Meanwhile, Qatar has offered a sanctuary to the Muslim Brotherhood and known terrorists. The oil sheikhdom also shelters the Muslim Brotherhood’s spiritual guide, Yusuf al-Qaradawi; Khaled Meshal, who was until recently the leader of Hamas; and Abbassi Madani, an Algerian Islamist leader—as well as many Taliban leaders. Nor was Qatar simply giving these extremists a roof and a cot. It gave them a platform, through Al Jazeera, to raise funds, woo followers and boost their prestige.

    All of this duplicity and support might have been tolerable, as it too often was before the September 11 attacks, were it not for the Arab world’s confrontation with Iran. The Islamic Republic is already engaged in both a direct and a proxy war against the Sunni states. Iran’s state-run broadcasts refer to Bahrain as Iran’s “eighteenth province,” even though Persians have not ruled there for some three centuries, and call on believers to end Saudi control over the Muslim holy places in Mecca and Medina. The UAE has a bitter territorial dispute with Iran. And let’s not forget that Iran is developing atomic weapons and the missiles to carry them; it may be planning to settle its religious and regional arguments with a Hiroshima-style blast.

    In contrast with its neighbors’ conflicts with Iran, Qatar is in business with the Islamic Republic. It shares with Iran the Pars Sud gas field, one of the world’s largest.

    While Iran was under embargo, Qatar continued to sell Iranian natural gas to Europe. The shared gas field gave Qatar the perfect cover to help its partner in crime, Iran. Yet shipping by sea is slow, costly and risky. Qatar proposed a pipeline across Syria to move Iran’s energy products (as well as its own) to the power-starved European market. A pipeline would have cut costs while strengthening Qatar’s hand. The Syrian dictator soon put an end to this pipe dream.

    In short, Qatar’s support for Iran was the last straw for its neighbors. The U.S. State Department is trying to be neutral, and is asking for evidence of Qatar’s transgressions. Meanwhile, President Donald Trump has been far clearer: he has demanded that Qatar stop funding America’s enemies.

    Clearly, Qatar must stop opening the money spigot for groups designated as terrorists by its allies, and it should turn over the terror leaders it is hosting to face justice in their native lands.

    The U.S. State Department should also invite Morocco to help. Iran, and indirectly Qatar, is backing armed uprisings by minority Shia groups across the Sunni-majority Arab world. Morocco’s king, Mohammed VI, is also his kingdom’s supreme religious ruler. His words and moderate religious teachings have calmed restive Shia populations and inspired them to oppose violence. Under the king’s leadership, Morocco is now enjoying a new influence in Africa. Mohammed VI, as a spokesman for political and religious moderation, is an important voice to combat Shia uprisings and Sunni reprisals.

    Qatar must stop fanning the flames of Islamic division, and Morocco and the Gulf Arabs should be given a real chance to head off a religious civil war between Sunnis and Shia, which could cost millions of lives in a war that could drag on for decades.

    We have come to a time when confrontation with Qatar will produce peace, and compromising will lead to war. Trump’s instincts are right. If Qatar doesn’t change, the world around it will.

  • Illinois House Approves Historic 32% Tax Increase, Governor Vows Veto

    With Illinois, which on Saturday morning entered its third fiscal year without a budget, facing a catastrophic downgrade, late on Sunday evening the Illinois House approved the most controversial element of a budget package, a tax hike which will increase the income tax rate by 32% from 3.75% to 4.95%, and the corporate income tax rate from 5.25% to 7%, to try and end a historic budget impasse. The bill passed 72-45. The House also approved a $36 billion spending plan minutes later on a 81-34 vote. According to the Sun Times, it cleared an initial hurdle on Friday with 23 Republicans voting “yes.”

    “While no one could say this was an easy decision, it was the right decision,” House Speaker Mike Madigan said after the spending bill vote. “There is more work to be done.” Dems said they would work with Republicans on other resolution of other issues on table.

    The proposed tax increase will now head back to the Illinois Senate, which approved a revenue bill on May 23 with all Democratic votes as part of its “grand bargain” package. But Governor Bruce Rauner has said he’ll only support an income tax hike if it’s limited to four years and paired with a four-year property tax freeze. He’s also still seeking changes in workers’ compensation and pensions.

    Commenting on the just passed House bill, Rauner said he’ll veto the revenue bill.

    I will veto Mike Madigan’s permanent 32% tax hike. Illinois families don’t deserve to have more of the hard-earned money taken from them when the legislature has done little to restore confidence in government or grow jobs,” Rauner said.

    “Illinois families deserve more jobs, property tax relief and term limits. But tonight they got more of the same.” He also said in an emailed statement that “if the legislature is willing to pass the largest tax hike in state history with no reforms, then we must engage citizens and redouble our efforts to change the state.”

    Some commentators promptly countered that Rauner’s veto will likely be overriden.

    The tax bill passed with some essential Republican support: it needed 71 votes. But Illinois House Republican Leader Jim Durkin questioned how it will address the state’s $14 billion backlog. Durkin is seeking to get Rauner the “balanced budget package,” he wants, which includes spending reductions and “meaningful reforms.”

    “I am disappointed that we’re taking this up at this moment when there has been significant, significant progress to address the priorities of the governor and also the priorities of this caucus,” Durkin said.

     

    There are, of course, political ramifications to supporting a tax hike, on both sides of the aisle. Some House Democrats were expected to vote no to try to shield themselves from Illinois Republican Party attacks in next year’s election. But some House Republicans, knowing they’d too be targeted for supporting it. said there’s no other choice.

    Others were even more fatalistic: “If I lose my seat so be it,” state Rep. Michael Unes, R-Pekin said, adding the state shouldn’t have gotten so close to a financial collapse. “Without this, we will lose thousands of lives and thousands of jobs and the alternative is so much worse. I don’t like this. This is not easy. This is really, really difficult,” Unes said. “But the alternative is much worse than this. The alternative is literally taking our state off the cliff.”

    David Harris was among the Republicans who supported the bill, while also urging the governor to sign the revenue and spending bills if passed: “Have the courage to do what is right and bring this madness to an end.” 

    “I was not elected as a state legislator to help preside over the financial destruction of this great state,” Harris said. “I respect my colleagues who are voting no. But to me, enough is enough.”

    Meanwhile, changes made by House Democrats from the original Senate bill include the removal of streaming and satellite fees. It also closed corporate tax loopholes, increased the earned income tax credit, and restored the research and development and manufacturers’ tax credit to attract more businesses.

    House Democrats filed amendments to both the tax and spending measures on Sunday, which included nearly $400 million more in cuts. Although some House Republicans voiced frustrations over changes, House Democrats said they were reflective of topics discussed during negotiations.

    It is unclear if the passed tax increase will be sufficient to placate S&P. Recall July 1 was the date when the credit agencies said they would drop the state to “junk” status without a budget. Ultimately, the fate of Illinois’ credit rating is now in the hands of Rauner, and whether and how fast his imminent veto is overriden.

    Ultimately, Illinois faces a lose-lose dilemma: get junked and see its funding costs soar, or save its lowest possible investment grade rating, and watch as what is already the worst metropolitan exodus (recently the population of Chicago shrank the most of any US city), go into overdrive as tens of thousands more scramble to escape the state’s soaring tax rates.

  • The Crash Of 1929: "Somewhere, Deep Down, They Knew The Party Was Over"

    Via Jesse's Cafe Americain blog,

    History may not repeat… but it sure ryhmes…

    "…people believed that everything was going to be great always, always. There was a feeling of optimism in the air that you cannot even describe today."

    "There was great hope. America came out of World War I with the economy intact. We were the only strong country in the world. The dollar was king. We had a very popular president in the middle of the decade, Calvin Coolidge, and an even more popular one elected in 1928, Herbert Hoover. So things looked pretty good."

    "The economy was changing in this new America. It was the dawn of the consumer revolution. New inventions, mass marketing, factories turning out amazing products like radios, rayon, air conditioners, underarm deodorant…One of the most wondrous inventions of the age was consumer credit. Before 1920, the average worker couldn't borrow money. By 1929, "buy now, pay later" had become a way of life."

    "Wall Street got the credit for this prosperity and Wall Street was dominated by just a small group of wealthy men. Rarely in the history of this nation had so much raw power been concentrated in the hands of a few businessmen…"

    "One of the most common tactics was to manipulate the price of a particular stock, a stock like Radio Corporation of America…Wealthy investors would pool their money in a secret agreement to buy a stock, inflate its price and then sell it to an unsuspecting public. Most stocks in the 1920s were regularly manipulated by insiders "

    "I would say that practically all the financial journals were on the take. This includes reporters for The Wall Street Journal, The New York Times, The Herald-Tribune, you name it. So if you were a pool operator, you'd call your friend at The Times and say, "Look, Charlie, there's an envelope waiting for you here and we think that perhaps you should write something nice about RCA." And Charlie would write something nice about RCA. A publicity man called A. Newton Plummer had canceled checks from practically every major journalist in New York City… Then, they would begin to — what was called "painting the tape" and they would make the stock look exciting. They would trade among themselves and you'd see these big prints on RCA and people will say, "Oh, it looks as though that stock is being accumulated. Now, if they are behind it, you want to join them, so you go out and you buy stock also. Now, what's happening is the stock goes from 10 to 15 to 20 and now, it's at 20 and you start buying, other people start buying at 30, 40. The original group, the pool, they've stopped buying. They're selling you the stock. It's now 50 and they're out of it. And what happens, of course, is the stock collapses."

    "The pools were a little like musical chairs. When the music stopped, somebody owned the stocks and those were the sufferers. If small investors suffered, they would soon be back for more. They knew the game was rigged, but maybe next time, they could beat the system. Wall Street had its critics, among them economist Roger Babson. He questioned the boom and was accused of lack of patriotism, of selling America short."

    "Roger Babson warned of the speculation and said, "There's going to be a crash and the aftermath is going to be quite terrible." And people jumped on Babson from all around for saying such a thing, so that people who were cautious about their personal reputation, who did not want to call down on themselves a lot of calumny, kept quiet."

    "Politicians came and went, but in the 20s, the businessman was king."

    "With everyone trying to borrow money to cover the falling value of their stocks, there was a credit crunch. Interest rates soared. At 20 percent, few people could afford to borrow more money. The boom was about to collapse like a house of cards."

    "…the National City Bank would provide $25 million of credit…immediately, the credit crisis was alleviated. In fact, within the next 24 hours, call money went from 20 percent to eight percent and that stopped the panic, then, in March [1929]"

    "Everything was not fine that spring with the American economy. It was showing ominous signs of trouble. Steel production was declining. The construction industry was sluggish. Car sales dropped. Customers were getting harder to find. And because of easy credit, many people were deeply in debt. Large sections of the population were poor and getting poorer."

    "Just as Wall Street had reflected a steady growth in the economy throughout most of the 20s, it would seem that now the market should reflect the economic slowdown. Instead, it soared to record heights. Stock prices no longer had anything to do with company profits, the economy or anything else. The speculative boom had acquired a momentum of its own."

    "It was this nature of mass illusion. Prices were going up, people bought. That forced prices up further, that brought in more people. And eventually, the process becomes self-perpetuating. Every increase brings in more people convinced of their God-given right to get rich."

    "The 20s was a decade of all sorts of fast money schemes. Three years earlier, everyone was buying Florida real estate. As prices of land skyrocketed, more people jumped in, hoping to make a killing. Then, overnight, the boom turned to bust and investors lost everything."

    "On September 5th, economist Roger Babson gave a speech to a group of businessmen. 'Sooner or later, a crash is coming and it may be terrific.' He'd been saying the same thing for two years, but now, for some reason, investors were listening. The market took a severe dip. They called it the "Babson Break." The next day, prices stabilized, but several days later, they began to drift lower. Though investors had no way of knowing it, the collapse had already begun."

    "…the market fluctuated wildly up and down. On September 12th, prices dropped ten percent. They dipped sharply again on the 20th. Stock markets around the world were falling, too. Then, on September 25th, the market suddenly rallied."

    "Reuben L. Cain, Stock Salesman, 1929: I remember well that I thought, "Why is this doing this?" And then I thought, "Well, I'm new here and these people" — like every day in the paper, Charlie Mitchell would have something to say, the J.P. Morgan people would have something to say about how good things were — and I thought, "Well, they know a lot more about this market than I do. I'm fairly new here and I really can't see why it's going up." But then, when they say it can't go down or if it does go down today, it'll go back tomorrow, you think, "Well, they really are like God. They know it all and it must be the way it's going because they say so."

    "As the market floundered, financial leaders were as optimistic as ever, more so. Just five days before the crash, Thomas Lamont, acting head of the highly conservative Morgan Bank, wrote a letter to President Hoover. "The future appears brilliant. Our securities are the most desirable in the world."

    "Practically every business leader in American and banker, right around the time of 1929, was saying how wonderful things were and the economy had only one way to go and that was up."

    "There came a Wednesday, October 23rd, when the market was a little shaky, weak. And whether this caused some spread of pessimism, one doesn't know. It certainly led a lot of people to think they should get out. And so, Thursday, October the 24th — the first Black Thursday — the market, beginning in the morning, took a terrific tumble. The market opened in an absolutely free fall and some people couldn't even get any bids for their shares and it was wild panic. And an ugly crowd gathered outside the stock exchange and it was described as making weird and threatening noises. It was, indeed, one of the worst days that had ever been seen down there."

    "There was a glimmer of hope on Black Thursday…About 12:30, there was an announcement that this group of bankers would make available a very substantial sum to ease the credit stringency and support the market. And right after that, Dick Whitney made his famous walk across the floor of the New York Stock Exchange…. At 1:30 in the afternoon, at the height of the panic, he strolled across the floor and in a loud, clear voice, ordered 10,000 shares of U.S. Steel at a price considerably higher than the last bid. He then went from post to post, shouting buy orders for key stocks."

    "And sure enough, this seemed to be evidence that the bankers had moved in to end the panic. And they did end it for that day. The market then stabilized and even went up."

    "But Monday was not good. Apparently, people had thought about things over the weekend, over Sunday, and decided maybe they might be safer to get out. And then came the real crash, which was on Tuesday, when the market went down and down and down, without seeming limit…Morgan's bankers could no longer stem the tide. It was like trying to stop Niagara Falls. Everyone wanted to sell."

    "In brokers' offices across the country, the small investors — the tailors, the grocers, the secretaries — stared at the moving ticker in numb silence. Hope of an easy retirement, the new home, their children's education, everything was gone."

    "At the end of 1929, as they celebrated New Year's Eve, all that lay in the future. Nobody knew that the Great Depression was coming — unemployment, bread lines, bank failures — this was unimaginable. But the bubble had burst. Gone was that innocent optimism, the confidence, the illusion of wealth without work. One era had ended. They toasted the coming of the 30s, but somewhere, deep down, they knew the party was over."

  • "I'm Concerned For My Friend The President… They Are Going To Find Something"

    Authored by Mac Slavo via SHTFplan.com,

    Robert Kiyosaki is the well known author of the widely popular Rich Dad, Poor Dad series. As an outside-the-box thinker Kiyosaki has recently suggested that the U.S. economy is under so much pressure that it is in real danger of collapse. He is also a long-time advocate of gold and silver as a way to protect wealth during times of financial calamity. Kiyosaki happens to be a very good friend of President Donald Trump, with whom he has written two books.

    In the following interview with Infowars.com, he says that America is not only in serious trouble because of a poor education system, corrupt bureaucrats and socialist-leaning government employees, but that entrenched Deep State elites are feverishly working to take down the President.

    In dealing with Donald… he’s straight… he listens… he makes decision quickly…

     

    And I think that’s his Achilles heel… You know, because bureaucrats, all they want is to keep their jobs… they’re not here to get the job done.

     

    So I feel for my friend Donald… he is a great man.. he has the same disease I have… foot and mouth… or Tweet and mouth…

     

    I’m so politically incorrect… that’s what he is… it’s so unfortunate… everybody says ‘well, stop Tweeting.”

     

    Well, it’s Donald… People look at that covfefe he Tweeted… but at the same time he went to NATO and he said to NATO, “pay up… you guys are not paying your bills.”

    Then he went to Saudi Arabia and said “let’s kick ISIS’ butt.”

     

    That’s the kind of leader he is… but the press never covers that…

     

     

    Our whole system is suspect right now… it’s all these bureaucrats and people with their hands in pockets… why does a politician go into office poor and leave rich?

     

    How does it happen? That’s corruption… but nobody says anything about that.

     

     

    My concern for my friend the President… they are going to find something… it doesn’t make a difference what they find… they will find something.

    Just this week we learned that Democrats in Congress, reportedly with the support of some Republicans, are spearheading a new law that would create an “Oversight Commission on Presidential Capacity.” The committee would be a bi-partisan panel designed specifically to investigate President Trump’s mental health and to oust him under the 25th Amendment of the U.S. Constitution. Considering that non-conformity has now been identified by psychiatrists as a mental disorder, it should be clear, as Robert Kiyosaki warns, that finding a reason, any reason, to get rid of Trump would be a fairly straightforward process with the right people involved in the investigations.

    Coupled with a variety of investigations and accusations involving everything from Russian collusion to alleged blackmailing of MSNBC hosts Joe Scarborough and Mika Brzezinski about an Enquirer article, if the Deep State wants to find something, they absolutely will.

  • Government Forces Murder 4 More Protesters In Venezuela, Bringing Death Toll To 80

    As the oppressive regime of leftist autocrat Nicolas Maduro intensifies its crackdown on anti-government protesters who have been gathering daily in the streets of Caracas and other Venezuelan cities to demand regime change, the government’s body count continues to climb. Last week, one such government-sanctioned killing was caught on video. The chilling footage shows Venezuelan soldiers shooting a 22-year-old rioter in the chest after he hurled rocks at them.

    The Associated Press reports that at least four people were killed and eight injured during anti-government protests in central Venezuela on Saturday. The deaths brought to at least 80 the number of people killed since anti-government protests erupted three months ago.

    “Chief prosecutor Luis Ortega Diaz confirmed that four deaths occurred Friday in clashes in Barquisimeto. The city’s mayor blamed the deaths on armed militias that support Venezuela’s socialist government.”

    The deaths occurred as Ortega Diaz  – who has had the temerity to stand up to Maduro and question his late-March decision to dissolve the opposition-controlled National Assembly – asked the Inter-American Commission on Human Rights for protection Friday, days after Venezuela’s Supreme Court barred her from leaving the country and ordered her bank accounts froze, according to the Associated Press.

    Ortega Diaz is one of the few remaining Maduro critics who haven’t already been removed from power, challenging Maduro’s push to rewrite the constitution and pressing charges against officers responsible for deaths during anti-government protests.

    Her latest crime? Her office announced this past week that it would summon the chief of Venezuela’s feared Sebin intelligence agency, Gustavo Gonzalez, to appear on suspicion of “committing grave and systemic violations of human rights.”

    Maduro responded to Ortega Diaz’s decision by promoting Gonzalez to head of the nation’s army.

    Here’s more on that from the AP:

    Prosecutors said they are investigating incidents of illegitimate detentions, arbitrary raids and cases in which people have remained imprisoned despite court orders that they be freed.

     

    Maduro responded hours later by promoting Gonzalez to head the nation’s army. He called Gonzalez and Antonio Benavides Torres, another high-ranking official under investigation by the state prosecutor, “brave patriots.”

     

    “They have defended the peace of the republic and have all my support,” Maduro said.

    Maduro has tightened his grip on power and cracked down on his political opposition as the collapse in oil prices – the Venezuelan government’s primary source of revenue – coupled with years of economic mismanagement by Maduro precipitated an unprecedented economic crisis in the country. The collapse of Venezuela’s currency, the bolivar, which trades on the black market at a rate of nearly 8,000 to the dollar, triggered hyperinflation that has made bare essentials like flour, meat, medicine and toilet paper unavailable to the general population.

  • The Real Threat Of Artificial Intelligence – Keynesian Dystopia

    Authored by Kai-Fu Lee, originally posted at The New York Times,

    What worries you about the coming world of artificial intelligence?

    Too often the answer to this question resembles the plot of a sci-fi thriller. People worry that developments in A.I. will bring about the “singularity” — that point in history when A.I. surpasses human intelligence, leading to an unimaginable revolution in human affairs. Or they wonder whether instead of our controlling artificial intelligence, it will control us, turning us, in effect, into cyborgs.

    These are interesting issues to contemplate, but they are not pressing. They concern situations that may not arise for hundreds of years, if ever. At the moment, there is no known path from our best A.I. tools (like the Google computer program that recently beat the world’s best player of the game of Go) to “general” A.I. — self-aware computer programs that can engage in common-sense reasoning, attain knowledge in multiple domains, feel, express and understand emotions and so on.

    This doesn’t mean we have nothing to worry about. On the contrary, the A.I. products that now exist are improving faster than most people realize and promise to radically transform our world, not always for the better. They are only tools, not a competing form of intelligence. But they will reshape what work means and how wealth is created, leading to unprecedented economic inequalities and even altering the global balance of power.

    It is imperative that we turn our attention to these imminent challenges.

    What is artificial intelligence today? Roughly speaking, it’s technology that takes in huge amounts of information from a specific domain (say, loan repayment histories) and uses it to make a decision in a specific case (whether to give an individual a loan) in the service of a specified goal (maximizing profits for the lender). Think of a spreadsheet on steroids, trained on big data. These tools can outperform human beings at a given task.

    This kind of A.I. is spreading to thousands of domains (not just loans), and as it does, it will eliminate many jobs. Bank tellers, customer service representatives, telemarketers, stock and bond traders, even paralegals and radiologists will gradually be replaced by such software. Over time this technology will come to control semiautonomous and autonomous hardware like self-driving cars and robots, displacing factory workers, construction workers, drivers, delivery workers and many others.

    Unlike the Industrial Revolution and the computer revolution, the A.I. revolution is not taking certain jobs (artisans, personal assistants who use paper and typewriters) and replacing them with other jobs (assembly-line workers, personal assistants conversant with computers). Instead, it is poised to bring about a wide-scale decimation of jobs — mostly lower-paying jobs, but some higher-paying ones, too.

    This transformation will result in enormous profits for the companies that develop A.I., as well as for the companies that adopt it. Imagine how much money a company like Uber would make if it used only robot drivers. Imagine the profits if Apple could manufacture its products without human labor. Imagine the gains to a loan company that could issue 30 million loans a year with virtually no human involvement. (As it happens, my venture capital firm has invested in just such a loan company.)

    We are thus facing two developments that do not sit easily together: enormous wealth concentrated in relatively few hands and enormous numbers of people out of work. What is to be done?

    Part of the answer will involve educating or retraining people in tasks A.I. tools aren’t good at. Artificial intelligence is poorly suited for jobs involving creativity, planning and “cross-domain” thinking — for example, the work of a trial lawyer. But these skills are typically required by high-paying jobs that may be hard to retrain displaced workers to do. More promising are lower-paying jobs involving the “people skills” that A.I. lacks: social workers, bartenders, concierges — professions requiring nuanced human interaction. But here, too, there is a problem: How many bartenders does a society really need?

    The solution to the problem of mass unemployment, I suspect, will involve “service jobs of love.” These are jobs that A.I. cannot do, that society needs and that give people a sense of purpose. Examples include accompanying an older person to visit a doctor, mentoring at an orphanage and serving as a sponsor at Alcoholics Anonymous — or, potentially soon, Virtual Reality Anonymous (for those addicted to their parallel lives in computer-generated simulations). The volunteer service jobs of today, in other words, may turn into the real jobs of the future.

    Other volunteer jobs may be higher-paying and professional, such as compassionate medical service providers who serve as the “human interface” for A.I. programs that diagnose cancer. In all cases, people will be able to choose to work fewer hours than they do now.

    Who will pay for these jobs? Here is where the enormous wealth concentrated in relatively few hands comes in. It strikes me as unavoidable that large chunks of the money created by A.I. will have to be transferred to those whose jobs have been displaced. This seems feasible only through Keynesian policies of increased government spending, presumably raised through taxation on wealthy companies.

    As for what form that social welfare would take, I would argue for a conditional universal basic income: welfare offered to those who have a financial need, on the condition they either show an effort to receive training that would make them employable or commit to a certain number of hours of “service of love” voluntarism.

    To fund this, tax rates will have to be high. The government will not only have to subsidize most people’s lives and work; it will also have to compensate for the loss of individual tax revenue previously collected from employed individuals.

    This leads to the final and perhaps most consequential challenge of A.I. The Keynesian approach I have sketched out may be feasible in the United States and China, which will have enough successful A.I. businesses to fund welfare initiatives via taxes. But what about other countries?

    They face two insurmountable problems. First, most of the money being made from artificial intelligence will go to the United States and China. A.I. is an industry in which strength begets strength: The more data you have, the better your product; the better your product, the more data you can collect; the more data you can collect, the more talent you can attract; the more talent you can attract, the better your product. It’s a virtuous circle, and the United States and China have already amassed the talent, market share and data to set it in motion.

    For example, the Chinese speech-recognition company iFlytek and several Chinese face-recognition companies such as Megvii and SenseTime have become industry leaders, as measured by market capitalization. The United States is spearheading the development of autonomous vehicles, led by companies like Google, Tesla and Uber. As for the consumer internet market, seven American or Chinese companies — Google, Facebook, Microsoft, Amazon, Baidu, Alibaba and Tencent — are making extensive use of A.I. and expanding operations to other countries, essentially owning those A.I. markets. It seems American businesses will dominate in developed markets and some developing markets, while Chinese companies will win in most developing markets.

    The other challenge for many countries that are not China or the United States is that their populations are increasing, especially in the developing world. While a large, growing population can be an economic asset (as in China and India in recent decades), in the age of A.I. it will be an economic liability because it will comprise mostly displaced workers, not productive ones.

    So if most countries will not be able to tax ultra-profitable A.I. companies to subsidize their workers, what options will they have? I foresee only one: Unless they wish to plunge their people into poverty, they will be forced to negotiate with whichever country supplies most of their A.I. software — China or the United States — to essentially become that country’s economic dependent, taking in welfare subsidies in exchange for letting the “parent” nation’s A.I. companies continue to profit from the dependent country’s users. Such economic arrangements would reshape today’s geopolitical alliances.

    One way or another, we are going to have to start thinking about how to minimize the looming A.I.-fueled gap between the haves and the have-nots, both within and between nations. Or to put the matter more optimistically: A.I. is presenting us with an opportunity to rethink economic inequality on a global scale. These challenges are too far-ranging in their effects for any nation to isolate itself from the rest of the world.

  • The World Is Questioning Trump's Leadership

    According to a new study from Pew Research which polled 40,000 people in 37 nations, Donald Trump's presidency has had a "major impact on how the world sees the United States".

    Infographic: The World Is Questioning Trump's Leadership  | Statista

    You will find more statistics at Statista

    As Statista's Niall McCarthy notes, three quarters of those polled had little to no faith in the U.S. president doing the right thing for world affairs compared to an unimpressive 22 percent who have a great deal of confidence in him. Broken down on a country by country basis, majorities of respondents in Israel and Russia were confident about Trump's leadership abilities but nearly every other nation displayed a high degree of skepticism.

    Across the board, Obama's perfomance on the world stage is generally held in higher regard than Trump's. People were polled at the end of Obama's eight-year term and 88 percent of Germans, 83 percent of Canadians and 79 percent of people in the UK were satisfied with his global leadership.

    When asked about Trump's presidency, on the other hand, only 11 percent of Germans and 22 percent of those in Canada and the UK had faith in his global leadership.

  • Gunmen Open Fire On Crowd Outside Mosque In Avignon, France

    A shootout erupted around 10:30pm on Sunday night in Avignon, southern France, when two gunmen opened fire on a crowd outside the Arrahma mosque leaving either people injured, La Provence newspaper reports.

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    According to initial reports, two hooded men were seen arriving aboard a Renault Clio. One was armed with a handgun, the second a rifle. As a crowd oe people were leaving the mosque, one of the armed men, who had got out of his vehicle, opened fire.

    La Provence adds that at least four people were injured at the time, while subseqeuent reports said the number is at least eight. About fifty meters away, a family of four who was in her apartment on the second floor of a building also received shrapnel. A 7-year-old girl was slightly injured.

    Police in Avignon are now searching for the suspects who fled the scene.

    The police have said they do not suspect terrorism is a motive behind the attack. The permanent magistrate at the Avignon parquet, Laure Chabaud, said the working hypothesis is a settling of accounts or a quarrel between young people.

  • Make It Liquid, Please

    By Chris at www.CapitalistExploits.at

    Most of you know the story of Africa’s great jewel.

    Zimbabwe, presided over by the charming, charismatic, democratically elected leader Robert Mugabe.

    So great is the country that under his leadership it has reached dizzying heights. The highest inflation in Africa, the highest unemployment in Africa, and, of course, the highest rates of poverty, which on the dark continent is really quite something.

    Think about it, your neighbouring nations are themselves doing such a sterling job of raping and pillaging the populace and destroying wealth even before its past incubation point that in order to beat them you’d be forced to work so hard you’d probably have to quit drinking on the job.

    It was under this backdrop that in late 2009 I, together with a bunch of mining engineers from South Africa and some ex-military gents, sensed opportunity.

    You see, Zim had been running a government program which released its white citizens of the cumbersome obligations of ownership of all sorts of assets – things like farms, factories, land, and mines. And THIS was what we were interested in – gold mines to be precise. Many, but not all, of these assets had landed up in the hands of Mugabe’s henchmen. Many “whities” with a strongly held desire to keep their heads attached to their shoulders while simultaneously being mad as hell realising that all they’d worked for was to go to some illiterate thug with a panga and an IQ of 70 essentially had two options.

    A small number actually took to a scorched earth policy. They sold what they could and destroyed everything they’d worked for as they were unwilling to see it go to thieves.

    Others went the legal route of transferring land titles to blacks. In doing so, they got to choose the new land owners and so typically handed the assets over to longtime loyal employees, farm managers, mine managers, and so forth. The assets, now in the hands of black Zimbabweans, were that much safer from roaming thugs targeting white owned assets. The previous owners (those who could) fled to wherever they could. Amazingly, even previously war torn Mozambique received an influx of white talent though many went to Europe or South Africa. Pretty much anywhere looked better. Some had no options (no foreign passports) and either died or still eek out a living in the country today.

    What’s the Liquidity on an Asset No Sane Person Would Want?

    That’s the question we asked ourselves… figuring it to be near zero.

    As a white non-Zimbabwean citizen (actually white Zim citizens were and are in the same boat) you really didn’t want to “own” these assets. You wanted to control them but you sure as hell didn’t want to own them.

    The black guys who ended up with the assets couldn’t quite figure this out, the mindset being that they now had gone from having few assets to owning massive operations which were only a few years prior worth tens or hundreds of millions of dollars. So they just wanted to cash in and sell them.

    It’s worth mentioning that most of these poor guys had no financial acumen at all, and when we explained to them that we placed the assets in the liability column on the balance sheet (they needed to be maintained, which costs money) we drew blank stares. A balance sheet wasn’t something they knew too much about but when it sunk in that we believed the assets to be worthless unless we could go through an extraction of product, they realised that they’d have to go back to work (producing on a revenue share) they weren’t overjoyed. Visions of big houses, Land Cruisers, and holidays in Europe seemed further out of reach.

    Those assets in Zimbabwe can’t be easily bought or sold due to Mugabe and his minions creating all sorts of headaches requiring copious bottles of Klipdrift (a South African brandy) and a certain amount of hard currency changing hands with “officials”. That’s if they don’t just simply take what they want outright. The impact on liquidity of assets is typically like that of a safe being dropped on your guts. Oofff!

    Now, this is where it gets interesting.

    Liquidity should have been zero. After all, what white guy would want to buy something that could and probably would be stolen from under him within a few years, if not months, and could quite easily involve the removal of his head from his shoulders?

    But It Wasn’t…

    Enter some other gents going by the names of Ivan, Anatoly, and Vsevolod.

    These guys descended on Zimbabwe in waves. Perhaps there was a flyer in Moscow. Our own “soldier of fortune” explained to us where these guys came from and even some of their history, which was fascinating to me since he knew so much from just watching them across a table at a restaurant.

    Any dope could see they were well dressed thugs who could snap you in two without taking their attention off their lunch but it turns out that tattoos reveal a lot. Apparently when you leave the employ of the KGB or Spetznaz your employment options are somewhat limited. Mercenary work in 3rd world hell holes looks and pays a lot better than licking stamps at the post office and smiling at Babushkas.

    Anyway, the Russkies, after enjoying the collapse of the Soviet Union had a template on how to deal with such opportunities. You roll into town, use overwhelming muscle, and secure assets, then strip them and sell them. Hey, it worked in the ex-USSR, so why not Zim?

    Indeed, why not?

    Ivan and his mates were working for whatever “brains” had employed them, and they actually just went in and paid cash for all sorts of stuff. No need for any limbs to get snapped. This, as it turns out, was an excellent example of a truly terrible idea, and Ivan and most of his buddies have since departed, their tails between their legs. A few still hold onto assets (because nobody will buy them) which they paid waaaay too much for and to which their particular “skillsets” are not well suited.

    It became patently clear that these guys firstly had money to burn (presumably “acquired” by conducting other “business”)and didn’t seem to have a plan as to what to do once they’d bought the new assets. Clearly they wanted to just sell them on, and in the beginning, many “Ivans” approached our group with this in mind. Perhaps not giving thought to why on earth we, for our part, would pay a premium price on an asset which would could just as easily have bought (and indeed passed on) ourselves.

    The point here is that even though liquidity of the assets should have been rock bottom it wasn’t… yet.

    There is a solution here to all of this which we found, though it still had liquidity issues. How do you go about creating value in such a setup? The ultimate answer I think lies in code. Yup, computer code.

    Now, keep that story in mind because later this week, I’ll explain to you another weird thing that happened in Mugabe’s paradise. Both of these are important due to an entirely new technology that you’ve probably heard about but perhaps haven’t given much thought to.

    – Chris

    “Focus on the movement of liquidity… most people in the market are looking for earnings and conventional measures. It’s liquidity that moves markets.” — Stanley Druckenmiller

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Today’s News 2nd July 2017

  • Chris Christie Announces New Jersey Government Shutdown, Orders State Of Emergency

    Illinois, Maine, Connecticut: the end of the old fiscal year and the failure of numerous states to enter the new one with a budget, means that some of America’s most populous states have seen their local governments grind to a halt overnight until some spending agreement is reached. Now we can also add New Jersey to this list.

    On Saturday morning, New Jersey Gov. Chris Christie declared a state of emergency in the state, and announced a partial state government shutdown as New Jersey become the latest state to enter the new fiscal year without an approved budget after the Republican governor and the Democrat-led Legislature failed to reach an agreement by the deadline at midnight Friday, CBS New York reports.

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    In a news conference Saturday morning, Christie blamed Democratic State Assembly Speaker Vincent Prieto for causing the shutdown. And, just like Illinois and Connecticut, Christie and the Democrat-led Legislature are returning to work in hopes of resolving the state’s first government shutdown since 2006 and the first under Christie, before NJ is downgraded further by the rating agencies.

    “If there’s not a resolution to this today, everyone will be back tomorrow,” Christie said, calling the shutdown “embarrassing and pointless.” He also repeatedly referred to the government closure as “the speaker’s shutdown.”  Christie later announced that he would address the full legislature later at the statehouse on Saturday.

    Prieto remained steadfast in his opposition, reiterating that he won’t consider the plan as part of the budget process but would consider it once a budget is signed.  Referring to the shutdown as “Gov. Christie’s Hostage Crisis Day One,” Prieto said he has made compromises that led to the budget now before the Legislature.

     

    “I am also ready to consider reasonable alternatives that protect ratepayers, but others must come to the table ready to be equally reasonable,” Prieto said. “Gov. Christie and the legislators who won’t vote ‘yes’ on the budget are responsible for this unacceptable shutdown. I compromised. I put up a budget bill for a vote. Others now must now do their part and fulfill their responsibilities.”

    Politics aside, the diplomaitc failure has immediate consequences for Jersey residents: Christie ordered nonessential services to close beginning Saturday. New Jerseyans were feeling the impact as the shutdown took effect, shuttering state parks and disrupting ferry service to Liberty and Ellis islands. Among those affected were a group of Cub Scouts forced to leave a state park campsite and people trying to obtain or renew documents from the state motor vehicle commission, among the agencies closed by the shutdown.

    As funds run out elsewhere, it will only get worse.  Police were turning away vehicles and bicyclists at Island Beach state park in Ocean County.

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    A sign posted at the park entrance featured a photo of Prieto and the phone number of his district office in Secaucus, along with the caption: “This facility is CLOSED because of this man.”

    When asked about the sign, Christie spokesman Jeremy Rosen said the governor wanted to make sure people knew why the site was shuttered.  “Speaker Prieto singlehandedly closed state government,” Rosen said, adding that the governor wanted to make sure families “knew that the facilities were closed and who is responsible.”

    Not all things will be affected: remaining open under the shutdown will be New Jersey Transit, state prisons, the state police, state hospitals and treatment centers as well as casinos, race tracks and the lottery. 

    A major point of disagreement is the ongoing stalemate between Christie and lawmakers over whether to include legislation affecting the state’s largest health insurer into the state budget.

    Christie and Senate President Steve Sweeney agree on legislation to make over Horizon Blue Cross Blue Shield, including allowing the state insurance commissioner to determine a range for the company’s surplus that if exceeded must be put to use benefiting the public and policyholders.  But Prieto opposes the plan, saying that the legislation could lead to rate hikes on the insurer’s 3.8 million subscribers and that the legislation is separate from the budget.  Prieto has said he will leave open a vote on the $34.7 billion budget that remains deadlocked 26-25, with 24 abstentions, until those 24 abstentions change their mind.

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    Democratic Assemblyman Vince Mazzeo, of Northfield, was among those abstaining. He reasoned that if the governor did not get the Horizon bill, then nearly $150 million in school funding — $9.6 million of which would go to his district — would be line-item vetoed out of the budget.   And indeed, Christie said Friday during a news conference that he would slash the Democratic spending priorities if he did not get the Horizon bill as part of a package deal on the budget.  “You want me to wave a magic wand to get a budget?” Christie said. “I can’t get a budget to my desk. Only the Senate and Assembly can get the budget to my desk.”

    But where things may get nasty quick, is that Christie said public workers should not expect any back pay. “Yeah, don’t count on it.” Christie said of furlough pay. “That was Jon ‘I’ll Fight For a Good Contract For You’ Corzine. I ain’t him.”

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    Meanwhile, the fingerpointing has begun, including Democrats pointing at other Democrats.

    “It seems like he’s just being stubborn,” Mazzeo said of Prieto. “With all due respect to the speaker, then there should be some type of negotiations.” But Prieto said it’s lawmakers – fellow Democrats – like Mazzeo who are to blame for the shutdown. He said he is willing to discuss the Horizon legislation but after the budget is resolved.

    Christie has balked at the proposal because he says lawmakers plan to leave town to campaign for re-election and he will be a lame duck.  According to CBS, all 120 lawmakers face voters this year.

    Finally, putting the sheer chaos of it all in context, Christie who is term-limited and is expected to be out of office by January, has his family staying for the holiday weekend in a state-owned house at Island Beach State Park. The park is closed because of the shutdown.

  • The American People Are The Number One Target: "They Are Tightening The Screws"

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

    A little more than a week ago it was announced that Whole Foods was bought by Amazon.com for just under $14 billion.  One of the major problems with this is that Jeff Bezos, the head of Amazon has deep ties with the CIA and the Federal government.

    Wal-Mart being fully in the government’s pocket and now Whole Foods brought under thumb as well, how much longer before Kissinger’s “Food as a Weapon” principle is brought to bear?  A good article was just released by Jon Rappaport entitled Buy your food from the CIA: Amazon buys Whole Foods, that is worth reading.

    As if that connection is not nefarious enough, there is more: it appears a new cloud technology is being produced for the CIA from…you guessed it…none other than the CIA, as is excerpted here:

    The intelligence community is about to get the equivalent of an adrenaline shot to the chest. This summer, a $600 million computing cloud developed by Amazon Web Services for the Central Intelligence Agency over the past year will begin servicing all 17 agencies that make up the intelligence community. If the technology plays out as officials envision, it will usher in a new era of cooperation and coordination, allowing agencies to share information and services much more easily and avoid the kind of intelligence gaps that preceded the Sept. 11, 2001, terrorist attacks.

     

    “The Details About the CIA’s Deal with Amazon,” – www.theatlantic.com    6/17/17

    Guess the data center that ran taxpayers billions that is in Utah is not enough, nor the fusion centers in every state.  Did you like “…a new era of cooperation and coordination…” between the friendly agencies?  And all to “avoid intelligence gaps,” just for your protection, right?

    Wrong.

    They are tightening the screws, little by little, while they refine all the control mechanisms and place that security web over their number one target: the American people. 

    They are taking control of the food supply incrementally.  Water?  Yes, here in Montana, the state just sent out a form for property owners to declare their water rights…as the CKST (Confederated Kootenai &Salish Tribes) Water Compact was passed into law in Montana in 2014.  Actions will be taken within the next two years.

    As enumerated in other articles, Montana kicked in $3 million after the liberals in the state House and Senate, as well as the liberal governor, Bullock (D, MT) signed the water compact into law.  The shortfall is $8 million, as the total state commitment was $11 million.  They are just waiting for the Senate to ratify this as a Federal treaty, and then they can (ostensibly on “behalf” of the Indian Tribes) place meters on everyone’s wells…off of the reservation…and “manage” the water on behalf of the Indian Tribes…enforced by DHS.

    This is a small slice of the country as a whole.  They are following full speed ahead with the Agenda 21 Directive to take over everyone’s food, water, land…everything.  A war will surely enable them to throw the Executive Order 13603 into action to confiscate and control every resource in the United States, including human labor…slave labor, to be precise.  Incrementally they place these laws into effect, and the stultified public, thinking only of the next barbeque and fireworks party is dumbed down into inactivity.

    There’s enough going on in the international arena that is capturing everyone’s attention, such as North Korea’s missile tests and threats, China’s aggressive South China Sea/Senkaku islands maneuvering, and the Syrian debacle unfolding with the U.S. ratcheting up the tough-talk of blaming Russia and Iran for any “Syrian chemical attack” that comes along.  Russia also just deployed a new satellite, and there is the possibility that in a televised broadcast, he sent out a message to “sleeper” agent in the West.  See the article by Stefan Stanford entitled Vladimir Putin sends message to ‘Russian Sleeper Agents’ in West as Russia Launches Top Secret Military Satellite.

    “Hammer and Anvil” usually refers to a military maneuver to crush an enemy force between two friendly elements.  This maneuver is being employed here and now, as well: either crush the United States and enslave its people domestically, with an economic collapse or civil war, or just initiate a war with another country and enslave the citizenry afterward.  Either way, they are pushing their agenda forward each day.  It is just a matter of time to find out which of the two vehicles…international war or domestic tyranny…that they will employ to obtain their globalist and totalitarian objectives.

  • DeSoto To DeLorean – 14 Defunct Car Brands (& How They Failed)

    Automobile enthusiasts around the world know brands like Studebaker, Plymouth and Packard, but you’d be hard-pressed to find any of these on the roads today. Former powerhouses in the American auto market, as Visual Capitalists's Chris Matei notes, they have since become beloved by collectors, but lost to the general public.

    Today’s infographic comes from TitleMax and it looks at 14 now-defunct car brands and the circumstances that took them from highways to bygones.

    Courtesy of: Visual Capitalist

    These are only a selection of a much longer list of car brands that have not survived to see the present day. What accounts for the churn rate of these brands?

    BOLD EXPERIMENTS, BOONDOGGLES, AND BURNOUTS

    Some car brands, like Tucker and Saturn, introduced new ideas that the market simply didn’t care for, didn’t perform as well as the competition, or were too ambitious for the industry climate.

    Others, like Edsel and DeLorean, met swift ends as they hemorrhaged money far faster than their owners anticipated. Even more brands were simply folded into the ever-expanding portfolios of either Ford or General Motors, the two biggest auto conglomerates ever to rule the roads.

    BAD TIMING, OR WORSE ECONOMY?

    Car sales rise and fall with broader economic trends because they are tied into so many different variables: raw materials, production costs, labor costs, oil prices, and interest rates among others.

    We can look at two time periods in which the combination of these conditions caused many of the brands on this list to fail.

    Post-war Doldrums (1950-1958)

    Based on the timeline above, we can see that 1950s were a terrible time for the smaller players in the auto industry. The explanation as to why so many brands declined over this decade has to do with the highly competitive, oligopolistic business practices of market leaders Ford and General Motors. Both of these market titans were locked in a battle to lower prices by taking advantage of economies of scale, while wooing customers who were feeling the economic pressures of a postwar recession.

    Smaller volume manufacturers like Packard and Studebaker could not keep up, even when they attempted to merge. As a result, these and many other smaller brands were forced out, or absorbed into the portfolios of one of the “big two.”

    Same Car, Different Name (1998-2008)

    A similar stretch of declining sales plagued the late 1990s and early 2000s, as the trend of “badge engineering” caught up with manufacturers.

    Rather than designing new models at high cost, conglomerates like GM simply engineered new brand “badges” and marketed the same basic models under a variety of names like Pontiac, Plymouth, Mercury, or Oldsmobile. The same tactic was later used to take mid-market designs, such as the Ford Fusion, and style them for a luxury audience as a new model – in this case, the Lincoln Mk. Z.

    Badge engineering curbed the appeal of a number of American brands under the GM and Ford portfolios. The nail in many of their coffins was the major auto industry downturn in 2008. That year, GM restructured as it underwent Chapter 11 bankruptcy.

    As a result, GM removed the majority of its badge engineered brands, including many of those listed above, from dealerships in the following years.

  • 5 Maps That Explain The Modern Middle East

    Authored by George Friedman and Kamran Bokhari via MauldinEconomics.com,

    If geopolitics studies how nations behave, then the nation is singularly important. Nation-states are the defining feature of the modern political era. They give people a collective identity and a pride of place… even when their borders are artificially drawn, as they were in the Middle East.

    Constantly in conflict with the notion of nationalism, especially in such a volatile region, are transnational issues. These are issues like religion and ethnicity that cannot be contained by a country’s borders.

    Arab nation-states are now failing in the Middle East, and though their failure is primarily due to their governments’ inability to create viable political economies, transnational issues—especially the competition between the Sunni and Shiite sects of Islam, as well as the struggle within the Sunni Arab realm—are expediting the process.


    Click to enlarge

    The Failure of Pan-Arabism

    Transnational issues have long bedeviled the countries of the modern Middle East. Major Arab states like Egypt, Syria, and Iraq began to flirt with pan-Arabism—a secular, left-leaning ideology that sought political unity of the Arab world—not long after they were founded. It threatened entrenched powers, particularly Arab monarchies like Saudi Arabia. But for an ideal that promoted unity, pan-Arabism was a notably fractured movement, with claims of leadership coming from the Baath party in Syria and Iraq to Gamal Abdel Nasser in Egypt. Whichever form it took, it advocated a kind of nationalism that defied the logic of the nation-state.

    Pan-Arab nationalism failed because it couldn’t replace traditional nationalism and because it advocated something that had never existed in history. But the countries that rejected it never really developed into viable political entities. Autocracies and artificial, state-sponsored secularism kept them fragile, held together mostly by the coercion of state security forces.

    Since the 1970s, these countries have been challenged by another transnational idea, Islamism (or political Islam), which has proved to be far more effective than pan-Arabism. Whether practiced by the Muslim Brotherhood, by jihadists, or more recently, by Salafists, the movement has spread throughout the Middle East. It has taken root not only among Sunni Arabs but also among Shiites. In fact, the Shiites were the first to create an Islamist government when they toppled the monarchy in the 1979 Iranian Revolution. Sunni Islamists would not hold traditional political power until after the so-called 2011 Arab Spring. But their power was short-lived: Either the regimes they sought to replace survived the uprisings, as was the case in Egypt, or the uprisings themselves eventually gave way to armed insurrection, as was the case in Syria.

    The anarchy of the Arab Spring was fertile ground for jihadists, especially for the Islamic State, which became the most powerful Sunni Islamist force in the region. The group owes its success primarily to its ability to exploit sectarian differences in the region—differences made all the more acute after the United States toppled the regime of Saddam Hussein, a secular government dominated by Sunnis who had been in control of a majority Shiite country. The Baathist regime in Iraq was replaced by a Shiite-dominated government that Sunnis throughout the region had tried to keep from power.

    Likewise, the Islamic State, Saudi Arabia, and Turkey scrambled to take ownership of the Sunni rebellion in Syria, which had been led by a minority Shiite government. The Islamic State was the best positioned to exploit the situation, creating a singular battlespace that linked eastern Syria with western Iraq.


    Click to enlarge

    In doing so, it has destroyed what we have come to know as the sovereign states of Iraq and Syria. Iraqi and Syrian nationalism can’t really exist if there is no nation. The Islamic State has lost some territory recently, but its losses appear to benefit not the nations to which the land once belonged but the sectarian and ethnic groups that happen to be there. In Syria, Sunni Arab forces are not all that interested in fighting the Islamic State. The only two groups that appear willing are the Syrian Democratic Forces, which are dominated by Kurds who are trying to carve out their own territory, and Syrian government forces, who want to retake the areas that IS seized after the rebellion broke out.

    Nationalism Replaced by Sectarianism

    Identities based solely on sectarianism now stand in the place of nationalism. On one side are the Sunnis, led nominally by Saudi Arabia. On the other are the Shiites, led nominally by Iran. The Sunni bloc is in disrepair; the Shiite bloc is on the rise. The fact that Iran is Persian has in the past dissuaded Arab Shiites from siding with Tehran, but Saudi efforts to prevent the Shiite revival (not to mention the rise of the Islamic State) have left them feeling vulnerable. They are willing to set aside their differences for sectarian solidarity.


    Click to enlarge

    There’s historical precedent for what’s happening in the Middle East.

    In the 10th century, the Shiite Buyid and Fatimid dynasties came to power because the Sunni Abbasid caliphate, challenged by competing caliphates and upstart Persian and Turkic groups, began to lose its power. Shiite dynasties ultimately could not survive in a majority Sunni environment, especially not after it came back on top from around 1200 to around 1600. The Shiites rebounded in the 16th century in the form of the Safavid Empire in Persia, which officially embraced Shiite Islam as state religion. Power changes hands, cyclically, about every 500 years.


    Click to enlarge

    And now, with Sunni Arab unity on the decline and with jihadists challenging Sunni power, the circumstances are ideal once again for Shiite power to expand.

    Click to enlarge

    The Shiites are a minority, so it’s unclear just how far their influence can actually spread. But what is clear is that modern nationalism is being replaced by medieval sectarianism.
     

  • America's Pension Bomb: Illinois Is Just the Start

    We’ve written quite a bit over the past couple of months about the pending financial crisis in Illinois which will inevitability result in the state’s debt being downgraded to “junk” at some point in the near future (here is our latest from just this morning: “From Horrific To Catastrophic”: Court Ruling Sends Illinois Into Financial Abyss).

    Unfortunately, the state of Illinois doesn’t have a monopoly on ignorant politicians…they’re everywhere.  And, since the end of World War II, those ignorant politicians have been promising American Baby Boomers more and more entitlements while never collecting nearly enough money to cover them all…it’s all been a massive state-sponsored scam.

    As we’ve noted frequently before, some of the largest of the many entitlement ‘scams’ in this country are America’s public pension funds.  Up until now, these public pension have been covered by stealing money set aside for future generations to cover current claims…it’s a ponzi scheme of epic proportions…$5-$8 trillion to be exact.

    Of course, the problem with ponzi schemes is that eventually you get to the point where the ponzi is so large that you can’t possibly steal enough money from new entrants to cover redemptions from those trying to exit…and, with a tidal wave of baby boomers about to pass into their retirement years, we suspect that America’s epic ponzi is on the verge of being exposed for the world to see.

    And when the ponzi dominoes start to fall, Bloomberg has provided this helpful map to illustrate who will succumb first…

     

    Of course, if you live in a state like South Dakota, you may take some solace from the fact that your public pension is fully funded…don’t. 

    Once the dominoes start to fall, and they will, those “ignorant politicians” we mentioned above will think they’re doing the right thing when they attempt to “socialize the issue” with federal bailouts and tax hikes.  Unfortunately, this is one crisis that will be too large for even American taxpayers to bailout.

  • The Mad Chase For Russia-gate Prey

    Authored by Daniel Lazare via The Strategic Culture Foundation,

     

    June turned out to be the cruelest month for the Russia-gate industry.

    The pain began on June 8 when ex-FBI Director James Comey testified that a sensational New York Times article declaring that “members of Donald J. Trump’s 2016 presidential campaign and other Trump associates had repeated contacts with senior Russian intelligence officials” was “in the main … not true.”

    Russian President Vladimir Putin addresses UN General Assembly on Sept. 28, 2015. (UN Photo)

    Then came Republican Karen Handel’s June 20 victory in a special election in Georgia’s sixth congressional district, sparking bitter recriminations among Democrats who had hoped to ride to victory on a Russia-gate-propelled wave of resistance to Trump.

    More evidence that the strategy was not working came a day later when the Harris Poll and Harvard’s Center for American Political Studies produced a devastating survey showing that 62 percent of voters see no evidence that the Trump campaign colluded with Russia, while 54 percent believe the “Deep State” is trying to unseat the President by leaking classified information. The poll even showed a small bounce in Trump’s popularity, with 45 percent viewing him favorably as opposed to only 39 percent for his defeated Democratic rival Hillary Clinton.

    The mainstream news media also came in for some lumps. On June 23, CNN retracted a story that had claimed that Congress was looking into reports that the Trump transition team met secretly with a Russian investment fund under sanction from the U.S. government. Three days later, CNN announced that three staffers responsible for the blooper – reporter and Pulitzer Prize-nominee Thomas Frank; Pulitzer-winner Eric Lichtblau, late of the New York Times; and Lex Haris, executive editor in charge of investigations – had resigned.

    Adding to CNN’s embarrassment, Project Veritas, the brainchild of rightwing provocateur James O’Keefe, released an undercover video in which a CNN producer named John Bonifield explained that the network can’t stop talking about Russia because it boosts ratings and then went on to say about Russia-gate:

    Could be bullshit, I mean it’s mostly bullshit right now.  Like, we don’t have any big giant proof. But … the leaks keep leaking, and there are so many great leaks, and it’s amazing, and I just refuse to believe that if they had something really good like that, that wouldn’t leak because we’ve been getting all these other leaks. So I just feel like they don’t really have it but they want to keep digging. And so I think the president is probably right to say, like, look, you’re witch-hunting me, like, you have no smoking gun, you have no real proof.

    Project Veritas also released an undercover video interview with CNN contributor Van Jones calling the long-running probe into possible collusion between Trump’s 2016 campaign and Russia a “nothing-burger,” a position similar to the skepticism that Jones has displayed in his on-air comments.

    True, the Bonifield video was only a medical reporter sounding off about a story that he’s not even covering and doing so to a dirty-trickster who has received financing from Trump and who, after another undercover film stunt, was ordered in 2013 to apologize and pay $100,000 to an anti-poverty worker whose privacy he had invaded.

    Good for Ratings

    But, still, Bonifield’s “president-is-probably-right” comment is hard to shake. Ditto Van Jones’ “nothing-burger.” Unless both quotes are completely doctored, it appears that the scuttlebutt among CNNers is that Russia-gate is a lot of hot air but no one cares because it’s sending viewership through the roof.

    MSNBC host Rachel Maddow

    And if that’s what CNN thinks, then it may be what MSNBC’s Rachel Maddow thinks as she also plays the Russia card for all it’s worthIt may also be what The Washington Post has in the back of its mind even while hyperventilating about Russian President Vladimir Putin’s “crime of the century, an unprecedented and largely successful destabilizing attack on American democracy.”

    The New York Times also got caught up in its enthusiasm to hype the Russia-gate case on June 25 when it ran a story slamming Trump for “refus[ing] to acknowledge a basic fact agreed upon by 17 American intelligence agencies that he now oversees: Russia orchestrated the attacks [on Democratic emails], and did it to help get him elected.”

    The “17-intelligence-agency” canard has been a favorite go-to assertion for both Democrats and the mainstream news media, although it was repudiated in May by President Obama’s Director of National Intelligence James Clapper and CIA Director John Brennan.

    So, on June 29, the Times apparently found itself with no choice but to issue a correction stating: “The [Russia-hacking] assessment was made by four intelligence agencies — the Office of the Director of National Intelligence, the Central Intelligence Agency, the Federal Bureau of Investigation and the National Security Agency. The assessment was not approved by all 17 organizations in the American intelligence community.”

    This point is important because, as Consortiumnews.com and other non-mainstream news outlets have argued for more than a month, it is much easier to manipulate a finding by hand-picking analysts from a small number of intelligence agencies than by seeking the judgments and dissents from all 17.

    Despite the correction, the Times soon returned to its pattern of shading the truth regarding the U.S. intelligence assessment. On June 30, a Times article reported: “Mr. Trump has repeatedly cast doubt on the unanimous conclusion of United States intelligence agencies that Russia sought to interfere in the 2016 race.”

    The Times’ phrase “unanimous conclusion” conveys the false impression that all 17 agencies were onboard without specifically saying so, although we now know that the Times’ editors are aware that only selected analysts from three agencies plus the DNI’s office were involved.

    In other words, the Times cited a “unanimous conclusion of United States intelligence agencies” to mislead its readers without specifically repeating the “all-17-agencies” falsehood. This behavior suggests that the Times is so blinded by its anti-Trump animus that it wants to conceal from its readers how shaky the whole tale is.

    Holes from the Start

    But the problems with Russia-gate date back to the beginning. Where Watergate was about a real burglary, this one began with a cyber break-in that may or may not have occurred. In his June 8 testimony before the Senate Intelligence Committee, Comey conceded that the FBI never checked the DNC’s servers to confirm that they had truly been hacked.

    Former FBI Director James Comey

    COMMITTEE CHAIRMAN RICHARD BURR: Did you ever have access to the actual hardware that was hacked?  Or did you have to rely on a third party to provide you the data that they had collected?

     

    COMEY: In the case of the DNC, and, I believe, the DCCC [i.e. the Democratic Congressional Campaign Committee], but I’m sure the DNC, we did not have access to the devices themselves.  We got relevant forensic information from a private party, a high-class entity, that had done the work.  But we didn’t get direct access.

     

    BURR: But no content?

     

    COMEY: Correct.

     

    BURR: Isn’t content an important part of the forensics from a counterintelligence standpoint?

     

    COMEY: It is, although what was briefed to me by my folks — the people who were my folks at the time – is that they had gotten the information from the private party that they needed to understand the intrusion by the spring of 2016.

    The FBI apparently was confident that it could rely on such “a high-class entity” as CrowdStrike to tell it what it needed to know. Yet neither the Democratic National Committee nor CrowdStrike, the Irvine, California, cyber-security firm the DNC hired, was remotely objective.

    Hillary Clinton was on record calling Putin a “bully” whose goal was “to stymie, to confront, to undermine American power” while Dmitri Aperovitch, CrowdStrike’s chief technical officer, is a Russian émigré who is both anti-Putin personally and an associate of the Atlantic Council, a pro-Clinton/anti-Russian think tank that is funded by the Saudis, the United Arab Emirates and the Ukrainian World Congress. The Atlantic Council is one of the most anti-Russian voices in Washington.

    So, an anti-Putin DNC hired an anti-Putin security specialist, who, to absolutely no one’s surprise, “immediately” determined that the break-in was the work of hackers “closely linked to the Russian government’s powerful and highly capable intelligence services.”

    Comey’s trust in CrowdStrike was akin to cops trusting a private eye not only to investigate a murder, but to determine if it even occurred. Yet the mainstream media’s pack journalists saw no reason to question the FBI because doing so would not accord with an anti-Trump bias so pronounced that even journalism profs have begun to notice.

    Doubts about CrowdStrike

    Since CrowdStrike issued its findings, it has come under wide-ranging criticism. Cyber experts have called its analysis inconsistent because while praising the alleged hackers to the skies (“our team considers them some of the best adversaries out of all the numerous nation-state, criminal and hacktivist/terrorist groups we encounter on a daily basis”), CrowdStrike says it was able to uncover their identity because they made kindergarten-level mistakes, most notably uploading documents in a Russian-language format under the name “Felix Edmundovich,” a reference to Felix E. Dzerzhinsky, founder of the Soviet secret police.

    Couple walking along the Kremlin, Dec. 7, 2016. (Photo by Robert Parry)

    “Raise your hand if you think that a GRU or FSB officer would add Iron Felix’s name to the metadata of a stolen document before he released it to the world while pretending to be a Romanian hacker,” wisecracked cyber-skeptic Jeffrey Carr.

    Others noted how easy it is for even novice hackers to leave a false trail. In Seattle, cyber-sleuths Mark Maunder and Rob McMahon of Wordfence, makers of a popular computer-security program, discovered that “malware” found in the DNC was an early version of a publicly available program developed in the Ukraine – which was strange, they said, because one would expect Russian intelligence to develop its own tools or use ones that were more up to date.

    But even if the malware was Russian, experts pointed out that its use in this instance no more implicates Russian intelligence than the use of an Uzi in a bank robbery implicates Mossad.

    Other loose threads appeared. In January, Carr poured cold water on a subsequent CrowdStrike report charging that pro-Russian separatists had used similar malware to zero in on pro-government artillery units in the eastern Ukraine.

    The Ukrainian ministry of defense and the London think tank from which CrowdStrike obtained much of its data agreed that the company didn’t know what it was talking about. But if CrowdStrike was wrong about the Ukraine case, how could everyone be sure it was right about the DNC?

    In March, Wikileaks went public with its “Vault 7” findings showing, among other things, that the CIA has developed sophisticated software in order to scatter false clues – which inevitably led to dark mutterings that maybe the agency had hacked the DNC itself in order to blame it on the Russians.

    Finally, although Wikileaks policy is never to comment on its sources, Julian Assange, the group’s founder, decided to make an exception.

    “The Clinton camp has been able to project a neo-McCarthyist hysteria that Russia is responsible for everything,” he told journalist John Pilger in November. “Hillary Clinton has stated multiple times, falsely, that 17 U.S. intelligence agencies had assessed that Russia was the source of our publications. That’s false – we can say that the Russian government is not the source.”

    Craig Murray, an ex-British diplomat who is a Wikileaks adviser, disclosed that he personally flew to Washington to meet with a person who was either the original source or an associate of the source. Murray said the motive for the leak was “disgust at the corruption of the Clinton Foundation and the tilting of the primary election playing field against Bernie Sanders.”

    Conceivably, such contacts could have been cutouts to conceal from WikiLeaks the actual sources. Still, Wikileaks’ record of veracity should be enough to give anyone pause. Yet the press either ignored the WikiLeaks comments or, in the case of The Washington Post, struggled to prove that WikiLeaks was lying.

    Unstable Foundation

    The stories that have been built upon this unstable foundation have proved shaky, too. In March, the Times published a front-page exposé asserting that Trump campaign manager Paul Manafort “had regular communications with his longtime associate – a former Russian military translator in Kiev who has been investigated in Ukraine on suspicion of being a Russian intelligence agent.”  But if the man was merely a suspected spy as opposed to a convicted one, then what’s the problem?

    President Donald Trump being sworn in on Jan. 20, 2017. (Screen shot from Whitehouse.gov)

    The article also noted that Jason Greenblatt, a former Trump lawyer who is now a special White House representative for international negotiations, met last summer with Rabbi Berel Lazar, “the chief rabbi of Russia and an ally of Russia’s president, Vladimir V. Putin.” But an Orthodox Jew paying a call on Russia’s chief rabbi is hardly extraordinary. Neither is the fact that the rabbi is a Putin ally since Putin enjoys broad support in the Russian Jewish community.

    In April, the Times published another innuendo-laden front-page story about businessman Carter Page whose July 2016 trip to Moscow proved to be “a catalyst for the F.B.I. investigation into connections between Russia and President Trump’s campaign.”

    Page’s sins chiefly consist of lecturing at a Moscow academic institute about U.S.-Russian relations in terms that The New York Times believed “echoed the position of President Vladimir V. Putin of Russia” and, on another occasion, meeting with a suspected Russian intelligence agent in New York.

    “There is no evidence that Mr. Page knew the man was an intelligence officer,” the article added. So is it now a crime to talk with a Russian or some other foreign national who, unbeknownst to you, may turn out to be an intelligence agent?

    Then there is poor Mike Flynn, driven out as national security adviser after just 24 days in office for allegedly misrepresenting conversations with Russian Ambassador Sergey Kislyak – exchanges during the Trump transition that supposedly exposed him to the possibility of Russian blackmail although U.S. intelligence was monitoring the talks and therefore knew their exact contents. And, since the Russians no doubt assumed as much, it’s hard to see what they could have blackmailed him with. [See Consortiumnews.com’s “Turning Gen. Flynn into Road Kill.”]

    Yet the mainstream media eagerly gobbled up this blackmail possibility while presenting with a straight face the claim by Obama holdovers at the Justice Department that the Flynn-Kislyak conversations might have violated the 1799 Logan Act, an ancient relic that has never been used to prosecute anyone in its entire two-century history.

    So, if the scandal is looking increasingly threadbare now, could the reason be that there was little or nothing to it when it was first announced during the final weeks of the 2016 campaign?

    Although it’s impossible to say what evidence might eventually emerge, Russia-gate is looking more and more like a Democratic version of Benghazi, a pseudo-scandal that no one could ever figure out but which wound up making Hillary Clinton look like a persecuted hero and the Republicans seem like obsessed idiots.

    As much as that epic inquiry turned out to be mostly a witch-hunt, Americans are beginning to sense the same about Washington’s latest game of “gotcha.”

    The United States is still a democracy in some vague sense of the word, and “We the People” are losing patience with subterranean maneuvers on the part of the Democrats, the neoconservatives, and the intelligence agencies seeking to reverse a presidential election.

    Like Benghazi or possibly even the Birthergate scam about President Obama’s Kenyan birthplace, the whole convoluted Russia-gate tale grows stranger by the day.

  • And The Country Receiving The Most Asylum Applications In The World Is…

    According to the latest OECD report published today, the (OECD) country receiving the most new applications for asylum last year was Germany…

    Infographic: The Countries Receiving the Most Asylum Applications | Statista

    You will find more statistics at Statista

    As Statista's Martin Armstrong notes, this is perhaps not so surprising, given the welcoming stance offered by Chancellor Merkel's government amid the refugee crisis.

    The most common countries of origin for applicants in Germany were Syria, Afghanistan and Iraq.

    In second place, but due to a completely different set of circumstances, the U.S. received 261,970 applications, mainly from El Salvador, Mexico and Guatemala.

  • Markets Are Still Dancing To The QE Two-Step…But Is the Music About To Stop?

    Authored by Chris Hamilton via Econimica blog,

    Just a quick thought about what is driving the US stock market.  The chart below shows the Wilshire 5000 (representing all publicly traded US equities in red), the Federal Reserve balance sheet (black), and excess reserves held at the Federal Reserve Bank by the largest of private(?) banks (likely a majority of these reserves held by foreign banks).  What you may notice is the rise in equities since '09 correlating with the rise in the Federal Reserves balance sheet until QE ended.  Then a momentary pause in equities during 2015, and another strong leg higher since.  That strong leg higher correlates nicely to the drawdown in the excess reserves held at the FRB, particularly since 2016.

    The chart below shows these dynamics since 2008.  The Federal Reserves purchase of $3.6 trillion in new "assets"…and the continual rise in excess reserves banks hold at the Fed until September, 2014.  As the reserves and QE ceased rising and were essentially flat, the market began rolling over.  However, by late 2015 banks began withdrawing those excess reserves and putting them to work…and the equity markets positively responded.

    Finally, a close-up of the dynamic since 2013.

    But as the Fed is now raising rates, and banks are paid billions in IOER (interest on excess reserves) to do nothing with that money (IOER's is the Fed's only means now to raise rates…as explained HERE)…the excess reserves sitting fallow at the FRB have again begun to rise (chart below).

    Absent further QE or banks drawing down their trillions in excess reserves…maybe investors should check the color of that swan flying overhead about now?!?  Invest accordingly.

  • China Completes Construction Of New Missile Shelters On Disputed South China Sea Islands

    Trump’s “up and down” relationship with China may be on the precipice of taking a sharp dive into the proverbial abyss.  After frequently threatening to label China a “currency manipulator” on the campaign trail last year, Trump’s relationship with China’s President Xi Jinping took a decided turn for the better after a meeting at Mar-a-Lago in which China vowed to help address the “menace of North Korea” .

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    But apparently those efforts have officially failed:

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    And, shortly after those efforts were declared dead, the Trump administration signed a $1.3 billion arms deal with Taiwan, a deal which China has “demanded” be cancelled immediately.

    Meanwhile, as the Financial Times points out today, in the midst of all the international crises, China has made great strides building out and further militarizing their disputed islands in the South China Sea.

    Over the past three months, China has built four new missile shelters on Fiery Cross, boosting the number of installations on the reef to 12, according to satellite images provided to the Financial Times by the Center for Strategic and International Studies.

     

    China has also expanded radar facilities on Fiery Cross and two other disputed reefs — Subi and Mischief — in the Spratly Island chain, and started building underground structures that Greg Poling, director of CSIS’s Asia Maritime Transparency Initiative, assesses will be used to store munitions.

     

    “We haven’t seen any slowdown in construction, including since the Mar-a-Lago summit,” said Mr Poling. “The islands are built and they are clearly militarised, which means they already got over the hard part. Now every time they put in a new radar or new missile shelter, it is harder for the world to get angry. They are building a gun, they are just not putting the bullets in yet.”

     

    The advances underscore how much progress China has made towards militarizing the man-made islands in ways that significantly enhance its ability to both monitor activity in the South China Sea and to project power in the western Pacific where the US has been the dominant power in the seven decades since the second world war.

    Euan Graham, an Asia expert at the Lowy Institute in Sydney, said it was “not quite game over in the South China Sea” but that China had fundamentally altered the status quo over the islands that would be hard to change barring war or natural disasters.

     

    “They already exert a strategic effect by projecting China’s presence much further out,” said Mr Graham. “They will not prevent the US Navy from operating in their vicinity, but they will complicate the threat environment for US ships and aircraft — by extending the [Chinese navy’s] surveillance and targeting net, as well as the envelope of power projection.”

     

    Of course, these latest provocations come despite a promise made to Obama in 2015 that “China would not militarize the man-made islands”…a promise which the Obama administration apparently took at face value and proceeded to bury their heads in the sand.

    During a visit to Washington, Mr Xi told Barack Obama in 2015 that China would not militarise the man-made islands, but in the intervening 20 months Beijing has stepped up construction, and now has runways that can accommodate Chinese fighter jets.

     

    China’s legal claim to the seas around the maritime features is legally controversial since many were dredged out of coral and sand and thus not entitled to status as islands. But Vasily Kashin, an expert on the Chinese military at the Higher School of Economics in Moscow, said the goal was never legal sovereignty but to give China forward bases from which it could patrol and exercise control in their vicinity.

     

    “If you have this infrastructure in the Spratlys, it allows China to constantly monitor aircraft and ships in the South China Sea. The point is that no one will be able to do anything in the area without them seeing.”

     

    Ely Ratner, an Asia expert who served in the Obama administration, said Washington had failed to craft a strategy to convince China to halt militarisation of the man-made islands. “Until China believes that there will be significant costs . . . I don’t think they have any reason to slow down,” said Mr Ratner. “They have been pushing on an open door and have been surprised at how little resistance they have faced.”

     

    Critics say the Obama administration took too cautious an approach to avoid creating tensions that would hurt the ability for co-operation on other issues. Meanwhile, some experts say the Trump team has given China a relatively free pass to maximise the chances it will boost pressure on North Korea to give up its nuclear programme.

    Somehow we suspect the Trump administration will end up being slightly less “accommodating” over the long term…

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Today’s News 1st July 2017

  • Paul Craig Roberts Asks "Why Has Washington Been At War For 16 Years?"

    Authored by Paul Craig Roberts,

    For sixteen years the US has been at war in the Middle East and North Africa, running up trillions of dollars in expenses, committing untold war crimes, and sending millions of war refugees to burden Europe, while simultaneously claiming that Washington cannot afford its Social Security and Medicare obligations or to fund a national health service like every civilized country has.

    Considering the enormous social needs that cannot be met because of the massive cost of these orchestrated wars, one would think that the American people would be asking questions about the purpose of these wars. What is being achieved at such enormous costs? Domestic needs are neglected so that the military/security complex can grow fat on war profits.

    The lack of curiousity on the part of the American people, the media, and Congress about the purpose of these wars, which have been proven to be based entirely on lies, is extraordinary. What explains this conspiracy of silence, this amazing disinterest in the squandering of money and lives?

    Most Americans seem to vaguely accept these orchestrated wars as the government’s response to 9/11. This adds to the mystery as it is a fact that Iraq, Libya, Syria, Yemen, Afghanistan, and Iran (Iran not yet attacked except with threats and sanctions) had nothing to do with 9/11. But these countries have Muslim populations, and the Bush regime and presstitute media succeeded in associating 9/11 with Muslims in general.

    Perhaps if Americans and their “representatives” in Congress understood what the wars are about, they would rouse themselves to make objections. So, I will tell you what Washington’s war on Syria and Washington’s intended war on Iran are about. Ready?

    There are three reasons for Washington’s war, not America’s war as Washington is not America, on Syria.

    The first reason has to do with the profits of the military/security complex. The military/security complex is a combination of powerful private and governmental interests that need a threat to justify an annual budget that exceeds the GDP of many countries. War gives this combination of private and governmental interests a justification for its massive budget, a budget whose burden falls on American taxpayers whose real median family income has not risen for a couple of decades while their debt burden to support their living standard has risen.

     

    The second reason has to do with the Neoconservative ideology of American world hegemony. According to the Neoconservatives, who most certainly are not conservative of any description, the collapse of communism and socialism means that History has chosen “Democratic Capitalism,” which is neither democratic nor capitalist, as the World’s Socio-Economic-Political system and it is Washington’s responsibility to impose Americanism on the entire world. Countries such as Russia, China, Syria, and Iran, who reject American hegemony must be destabilized and desroyed as they stand in the way of American unilateralism.

     

    The Third reason has to do with Israel’s need for the water resources of Southern Lebanon. Twice Israel has sent the vaunted Israeli Army to occupy Southern Lebanon, and twice the vaunted Israeli Army was driven out by Hezbollah, a militia supported by Syria and Iran. To be frank, Israel is using America to eliminate the Syrian and Iranian governments that provide military and economic support to Hezbollah. If Hezbollah’s suppliers can be eliminated by the Americans, Israel’s army can steal Southern Lebanon, just as it has stolen Palestine and parts of Syria.

    Here are the facts: For 16 years the insouciant American population has permitted a corrupt government in Washington to squander trillions of dollars needed domestically but instead allocated to the profits of the military/security complex, to the service of the Neoconservative ideology of US world hegemony, and to the service of Israel.

    Clearly, Amerian democracy is a fraud. It serves everyone but Americans.

    What is the likely consequence of the US government serving non-American interests?

    The best positive outcome is poverty for the 99 percent. The worst outcome is nuclear armageddon.

    Washington’s service to the military/security complex, to the Neoconservative ideology, and to Israel completely neglects over-powering facts.

    Israel’s interest to overthrow Syria and Iran is totally inconsistant with Russia’s interest to prevent the import of jihadism into the Russian Federation and Central Asia. Therefore, Israel has put the US into direct military conflict with Russia.

    The US military/security complex’s financial interests to surround Russia with missile sites is inconsistent with Russian sovereignty as is the Neoconservatives’ emphasis on US world hegemony.

    President Trump does not control Washington. Washington is controlled by the military/security complex (watch on youtube President Eisenhower’s description of the military/security complex as a threat to American democracy), by the Israel Lobby, and by the Neoconservatives. These three organized interest groups have pre-empted the Amercan people, who are powerless and are uninvolved in the decisions about their future.

    Every US Representative and US Senator who stood up to Israel was defeated by Israel in their re-election campaign. This is the reason that when Israel wants something it passes both houses of Congress unanimously. As Admiral Tom Moorer, Chief of Naval Operations and Chariman of the Joint Chiefs of Staff, said publicly, “No American President can stand up to Israel.” Israel gets what it wants no matter what the consequences are for America.

    Adm. Moorer was right. The US gives Israel every year enough money to purchase our government. And Israel does purchase our government. The US government is far more accountable to Israel than to the American people. The votes of the House and Senate prove this.

    Unable to stand up to tiny Israel, Washington thinks it can buffalo Russia and China. For Washington to continue to provoke Russia and China is a sign of insantity. In the place of intelligence we see hubris and arrogance, the hallmarks of fools.

    What Planet Earth, and the creatures thereon, need more than anything is leaders in the West who are intelligent, who have a moral conscience, who respect truth, and who are are capable of understanding the limits to their power.

    But the Western World has no such people.

  • America's Fertility Rate Falls To Record Low

    The US isn't yet grappling with the economic disaster that is a shrinking popuation – unlike Japan. Though it's starting to look like a not-too-distant possibility. US birthrates fell to yet another historic low in 2016 as a whirlwind of economic and cultural factors inspire more women to delay, or forgo, having children. According to provisional data for the fourth quarter provided by the CDC, the US birthrate has declined to 62 births per 1000 women – its lowest level on record, and down from 62.5 in 2015.

    This is especially troubling because demographers worry that a dwindling birth rate will hurt economic growth and tax revenues needed to fund transfer payments to a growing elderly population, as more members of the baby boomer generation age into retire.

    The CDC did not say why the birth rate is declining. But according to Axios, research and surveys have shown several reasons, including wider availability of birth control, personal economic instability from student loans or other debt, women focused on launching a career before starting a family, and a growing acceptance that not everyone wants to have children.

    If the Trump administration achieves higher economic growth, it’s unlikely to do so fast enough to support the mandated 9% increase in entitlement spending for older Americans without more deficit spending. Trump says he intends to preserve Social Security and Medicare spending levels.

    The highest birthrates are now seen among women aged 30-34. Previously, the highest rate had been for women aged 25-29, which fell to 101.9 in 2016.

    Chart courtesy of Axios

    Furthermore, as Statista notes, teenage pregnancy is in continual decline in the United States. As preliminary data released in a newreport by the National Centre for Health Statistics on Friday reveals, the birth rate of mothers in the 15-19 age group dropped to a record low of 20.3, amounting to 209,480 births in 2016. Compared to 2015, this is a decrease of almost 9% and even 62% when compared to 1996.

    Conversely, birth rates of women aged 40-44 are on the rise: While it stood at 6.8 in 1996, the provisional birth rate for this age group is 11.4 births per 1,000 women in 2016, which accounts for an increase of 4% compared to the previous year.

    Infographic: Teen Birth Rate at Its Lowest Level in Twenty Years | Statista

    You will find more statistics at Statista

    Here are a few other interesting data points from the CDC, courtesy of Axios:

    • The CDC estimates the fertility rate in 1960 was about 118 births per 1,000 women, or almost double what it is today.
    • Despite the record low birth rate, more than 3.94 million babies were born in 2016, which was about 37,000 fewer than 2015.
    • The highest birth rate is now among women aged 30-34 at 102.6 births per 1,000 women. Previously, the highest rate had been for women aged 25-29, which fell to 101.9 in 2016.
    • U.S. births by race origin of the mother: 52% white, 23% Hispanic, 14% black, 6% Asian, 1% Native American/native of Alaska, Hawaii or Pacific Islands.

    * * *

    Economists worry that if birthrates continue to decline, America’s economy will enter a period of stagnant growth like that experienced by Japan over the past two decades. As we reported last year, the problem of falling fertility in Japan, which at 1.4 births per woman, has one of the lowest fertility rate in the developed world, is so severe, that Japan's lawmakers have decided to take action.  Late last year, Japan’ cabinet approved a record $830 billion spending budget for fiscal 2017, which includes child-rearing support. However, the birth rate in the US remains positive, while Japan's population is shrinking.

     

    However, at this rate, the local population may not need the free money in the not too distant future. The only hope, as in the case of many European nations, is that a surge in immigration will offset the natural decline of the domestic population, whose average age has never been higher…

  • Joseph Tainter: The Collapse Of Complex Societies

    Authord by Adam Taggart via PeakProsperity.com,

    By popular demand, we welcome Joseph Tainter, USU professor and author of The Collapse Of Complex Societies (free book download here).

    Dr. Tainter sees many of the same unsustainable risks the PeakProsperity.com audience focuses on — an overleveraged economy, declining net energy per capita, and depleting key resources.

    He argues that the sustainability or collapse of a society follows from the success or failure of its problem-solving institutions. His work shows that societies collapse when their investments in social complexity and their energy subsidies reach a point of diminishing marginal returns. From Tainter's perspective, we are likely already past the tipping point towards collapse but just don’t know it yet:

    Sustainability requires that people have the ability and the inclination to think broadly in terms of time and space. In other words, to think broadly in a geographical sense about the world around them, as well as the state of the world as a whole. And also, to think broadly in time in terms of the near and distant future and what resources will be available to our children and our grandchildren and our great grandchildren.

     

    One of the major problems in sustainability and in this whole question of resources and collapse is that we did not evolve as a species to have this ability to think broadly in time and space. Instead, our ancestors who lived as hunter-gatherers never confronted any challenges that required them to think beyond their locality and the near term(…)

     

    We have developed the most complex society humanity has ever known. And we have maintained it up to this point. I have argued that technological innovation and other kinds of innovation evolve like any other aspect of complexity. The investments in research and development grow increasingly complex and reach diminishing returns. We cannot forever continue to spend more and more on technological innovation when we’ve reached the point of diminishing returns, which I argue we have reached.

     

    Our system of innovation is going to change very significantly over the next twenty to thirty to fifty years or so. By the end of the century, our system of innovation will not be anything like what we know today. It will have to be very different. And it’s likely that innovation is not going to be able to solve our problems as readily as it has done to this point.

     

    The technological optimists have assumed that the productivity of innovation is either constant or increasing. And in fact, what I think my colleagues and I can show is that the productivity of innovation is actually decreasing. What that means is that we will not forever be able to solve resource problems through innovation(…)

     

    And so individuals need to take responsibility for their own ignorance. As I said, our species did not evolve to think broadly in terms of time and space and if we’re going to maintain our way of life, people have to learn to do so. People have to take responsibility for knowing and understanding the predicament that we’re facing. I have argued over the last few years that we need to start teaching early school age children in K to 12 to think differently, to think broadly in terms of time and space – to think historically, to think long-term about the future, to think broadly about what’s going on in the world around us instead of the narrow way – the narrow, local way – that most people live and think. So I put responsibility on individuals to broaden their knowledge.

    Click the play button below to listen to Chris' interview with Joseph Tainter (42m:44s).

  • "We Don't Know What Happened" St. Louis Officials Clueless As Downtown Sinkhole Swallows Car

    In a development that should send a chill down the spine of every citizen of St. Louis  – especially considering the city’s efforts to revitalize its violence-plagued downtown – a sinkhole spontaneously appeared in the city's downtown, swallowing a car that had been parked street side.

    And even more concering, city officials say they have no idea how it happened.

    Vincent Foggie, of the city's water division, said the hole was missing mounds of dirt that normally support the road's asphalt-topped concrete. He called such voids large enough to swallow a vehicle a rarity in the city.

     

    "We don't know what happened," Foggie said. "I have no idea where the dirt went."

    St Louis resident Jordan Westerberg parked his car on sixth street downtown near the railway exchange building on Thursday morning as he and his fiancée headed to an early morning workout at a gym nearby.

    When he returned shortly before 7 a.m. local time, his Toyota Camry was nowhere to be found. Westerberg and his fiancée said they figured it had been towed.

    Then, they saw a gathering of street workers near their parking space, tipping them off that something wasn’t right. That's when Westerberg, 25, found the vehicle in the gaping hole – about 20 feet (6 meters) deep and 8 to 10 feet (2.5 to 3 meters) across – that took up the entire southbound lane of the street, next to a vacant building expected to feature apartments, office space and retail, according to the Associated Press.

    No injuries were reported.

    "It's pretty crazy," said Westerberg, who lives in a loft downtown. "We could've been in the car. It's a compact car. It's not like it's heavy."

    The city said it wasn’t immediately clear what caused the sinkhole, though an 8-inch, below-ground water main at the site appeared to have been broken for some time, given the amount of erosion.

    Now for the real question: How does a water main break in a major city’s downtown without city officials being alerted somehow?

    Hopefully the city will refund Westerberg's parking costs, at the very least.

    Here’s a video courtesy of local AM radio station KMOX.

     

  • Connecticut Gov. Signs Exec. Order Taking Over Spending After State Fails To Pass Budget

    With Maine looking like it will be the first state to shut down heading into the new fiscal year on Saturday morning and perhaps beating Illinois to the punch, moments ago Connecticut, as previewed last night, will also enter the new fiscal year without a budget, inviting rating agencies to downgrade it to Illinois' "barely junk" rating or perhaps making CT the first US junk-rated state.

    Lawmakers and the governor had been unable to reach an agreement on a two-year budget that will cover a projected $5 billion deficit for months, and not even the threat of the new year prompted them to move as we expected.

    Meanwhile, Governor Malloy signed an executive order taking over the state's spending authority which will cut most services but at least keeps the government open. From Reuters:

    • CONNECTICUT GOVERNOR SIGNS EXECUTIVE ORDER TO TAKE CONTROL OF STATE SPENDING AFTER FAILURE TO PASS FY 2018/19 BIENNIAL BUDGET
    • CONNECTICUT EMERGENCY SPENDING PLAN KEEPS STATE GOVERNMENT OPEN BUT CUTS SERVICES

    As a result of the failure to pass a budget, AP reports that nonprofit social service agencies that rely on state funds are preparing for deep cuts. Democratic Gov. Dannel P. Malloy, who wanted the General Assembly to at least pass a proposed three-month mini-budget, is expected to reluctantly sign an executive order that maintains only essential state services.

    Connecticut’s General Assembly failed to pass a version of the state budget on Friday, forcing Democratic Gov. Dannel P. Malloy, who wanted the General Assembly to at least pass a proposed three-month mini-budget, to sign an executive order to take control of state spending, according to the Associated Press.

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    Gian-Carl Casa, president and CEO of Connecticut Community Nonprofit Alliance, says agencies that help people struggling with mental illness to domestic violence are planning to lay-off staff and close programs.

    The failure is the latest blemish on Malloy's record. The two-term governor has said he will not seek a third term when is current one is up at the end of 2018.

  • Picturing An 'America First' Korea Policy

    Authored by Patrick Buchanan via Buchanan.org,

    “The North Korean regime is causing tremendous problems and is something that has to be dealt with, and probably dealt with rapidly.”

    So President Trump told reporters in the Rose Garden this week.

    But how this is to be done “rapidly” is not so easy to see.

    North Korea has just returned to us Otto Warmbier, a student sentenced to 15 years hard labor for stealing a propaganda poster. Otto came home comatose, and died within days.

    Trump’s conundrum: How to keep such a regime from acquiring an ICBM with a nuclear warhead, which Kim Jong Un is determined to do.

    Having seen us attack Iraq and Libya, which had no nukes, Kim believes that only nuclear weapons that can hit America can deter America. He appears willing to risk war to achieve his goal.

    Trump’s options as he meets South Korean President Moon Jae-in?

    First, the decapitation of the Kim dynasty. But the U.S. has been unable to accomplish regime change for the 64 years following the Korean War. And killing Kim could ignite a war.

    Then there is a U.S. pre-emptive strike on North Korea’s nuclear sites and missile arsenals. But this would surely mean a war in which Americans on the DMZ would be among the first to die, as thousands of North Korean artillery and mortar tubes fired into the suburbs and city of Seoul, which is as close as Dulles Airport is to the White House.

    Asked by Congressman Tim Ryan why we don’t launch a war to end this threat, Defense Secretary James Mattis replied that, while we might “win … at great cost,” such a war would “involve the massive shelling of an ally’s capital … one of the most densely packed cities on earth.”

    Seoul has a metro-area population of 25 million.

    We are thus approaching a point where we accept North Korea having a nuclear weapon that can reach Seattle, or we attack its strategic arsenal and bring on a war in which millions could die.

    What about sanctions?

    The only nation that could impose sufficient hardships on North Korea to imperil the regime is China. But China refuses to impose the Draconian sanctions that might destabilize the regime, and might bring Korean refugees flooding into China. And Beijing has no desire to see Kim fall and Korea united under a regime aligned with the United States.

    What FDR said of one Caribbean dictator, the Chinese are probably saying of Kim Jong Un, “He may be an SOB, but he’s our SOB.”

    Early in his presidency, Trump gave the franchise for dealing with the North Korean threat to Beijing. But his friend Xi Jinping has either failed Trump or declined to deliver.

    As for President Moon, he wants to negotiate, to engage the North economically, to invite its athletes to join South Koreans on joint teams for the Winter Olympics in 2018. Moreover, Moon is said to be willing to cut back on joint military exercises with the U.S. and regards the THAAD missile defense we introduced into South Korea as a negotiable item.

    China, whose missile launches can be detected by THAAD radar, wants it removed and has so informed South Korea.

    Where does this leave us?

    We are committed to go to war to defend the South and have 28,000 troops there. But South Korea wants to negotiate with North Korea and is prepared to make concessions to buy peace.

    As the nation that would suffer most in any second Korean War, South Korea has the sovereign right to play the hand. But what Seoul considers best for South Korea is not necessarily best for us.

    What would be an America First Korean policy?

    The U.S. would give Seoul notice that we will, by a date certain, be dissolving our mutual security treaty and restoring our full freedom to decide whether or not to fight in a new Korean War. Given the present risk of war, possibly involving nuclear weapons, it is absurd that we should be obligated to fight what Mattis says would be a “catastrophic” war, because of a treaty negotiated six decades ago by Eisenhower and Dulles.

    “The commonest error in politics,” Lord Salisbury reminded us, “is sticking to the carcass of dead policies.”

    But we should also tell South Korea that if she desires a nuclear deterrent against an attack by the North, she should build it. Americans should not risk a nuclear war, 8,000 miles away, to defend a South Korea that has 40 times the economy of the North and twice the population.

    No vital U.S. interest requires us, in perpetuity, to be willing to go to war to defend South Korea, especially if that war entails the risk of a nuclear attack on U.S. troops or the American homeland.

    If the United States did not have a mutual security pact that obligates us to defend South Korea against a nuclear-armed North, would President Trump be seeking to negotiate such a treaty?

    The question answers itself.

  • New York Times Forced To Retract Longstanding '17 Intel Agencies' Lie About Russian Hacking

    Authored by Caitlin Johnstone via Medium.com,

    “Seventeen intelligence agencies”? – ?if you’ve been following the maniacal #TrumpRussia coverage to any extent, you’ve heard this phrase used uncritically, time and again, regardless of your ideological loyalties. Pundits, papers and rank-and-file establishment loyalists have been unquestioningly regurgitating the nonsensical line that 17 intelligence agencies confirmed Russian interference in the US elections ever since Hillary Clinton made that baseless assertion in a debate back in October.

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    The innate absurdity of the claim was immediately attacked by WikiLeaks and anti-establishment outlets who pointed out that this would necessarily need to involve full investigations from agencies like the Coast Guard, the DEA and the Energy Department in order to be true. Nevertheless, many high-profile pro-establishment outlets like Politifact and USA Today found Clinton’s claims to be 100 percent true on the grounds that James Clapper, then-Director of National Intelligence and notorious Russophobic racist, “speaks on behalf of” all 17 intelligence agencies. To this day Politifact stands by its false claim on the basis of that same spurious assertion.

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    It turns out, however, that in addition to Clapper’s office there were only three intelligence agencies involved in that assessment, not 17, and that the conclusions were drawn not by the actual agencies in full, but by a mere two dozen loyalists from those agencies hand-selected by Russophobic eugenicist Clapper himself. The great Robert Parry notes in his Consortium News article about this point, “as any intelligence expert will tell you, if you ‘hand-pick’ the analysts, you are really hand-picking the conclusion. For instance, if the analysts were known to be hard-liners on Russia or supporters of Hillary Clinton, they could be expected to deliver the one-sided report that they did.”

    As reported by Parry, we have known about these facts since they emerged from Clapper’s racist face hole on May 8, and they were confirmed by former CIA Director John Brennan on May 23. And yet at a California technology conference on May 31, Hillary Clinton repeated the same lie she’s been spouting since October:

    Seventeen agencies, all in agreement, which I know from my experience as a Senator and Secretary of State, is hard to get. They concluded with high confidence that the Russians ran an extensive information war campaign against my campaign, to influence voters in the election. They did it through paid advertising we think; they did it through false news sites; they did it through these thousand agents; they did it through machine learning, which you know, kept spewing out this stuff over and over again. The algorithms that they developed. So that was the conclusion.”

    The “17 intelligence agencies” lie had been completely, thoroughly debunked for weeks, and yet not a soul called Clinton out on her brazen lie within the establishment press. Indeed, establishment pundits like Megyn Kelly continued to repeat the lie, and have continued to do so throughout the month of June.

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    All this changed when CNN was sent reeling by a 1–2–3-punch combination ensuing from its horrendously propagandistic Russia coverage, which has seen three of its journalists lose their jobs and sent the network into international disgrace. All of a sudden we are seeing establishment outlets getting a lot more conscientious about what they choose to publish about the Russian Federation, and today we saw none other than the New York Times posting the very first retraction of this long-debunked lie that we have seen in establishment media.

    Correction: June 29, 2017

     

    A White House Memo article on Monday about President Trump’s deflections and denials about Russia referred incorrectly to the source of an intelligence assessment that said Russia orchestrated hacking attacks during last year’s presidential election.

     

    The assessment was made by four intelligence agencies — the Office of the Director of National Intelligence, the Central Intelligence Agency, the Federal Bureau of Investigation and the National Security Agency. The assessment was not approved by all 17 organizations in the American intelligence community.

    You just know how that went down, too; the retraction tells a complete story with a beginning, middle and end. The article’s author repeated the “17 intelligence agencies” lie without so much as a second thought, because it’s something they’ve been saying for months and getting away with?—?hey, it’s only Russia, right? They’re the Official Bad Guys so we can print whatever we want about them. The Washington Post has been getting away with telling brazen lie after brazen lie about Russia and suffering no consequences for it whatsoever, so we’ve got plenty of wiggle room here. The article passed by the editors for the same reason, but then someone up top received a complaint about the false claim in the article and immediately pulled the author into his office, yelling, “You fool! What’s the matter with you? Are you trying to get us CNNed???”

    As I never get tired of reminding the brainwashed consumers of mainstream media, Russiagate is bullshit, and we fucking told you so. The entire thing was sparked off by two dozen agents hand-selected by a racist man with a racist agenda, and only persists because the US deep state wants regime change in Moscow and Damascus. This moronic conspiracy theory has been permitted to march on for far too long, and in the meantime we’ve been goose stepped to the brink of World War 3 as a result of this administration’s idiotic behavior in Syria. That’s where a real resistance needs to happen; not a McResistance to imaginary threats fed to the masses by the lying corporate media, but a real resistance to a very real and tangible threat from actions by the Trump administration and the unelected power establishment with which he is unquestionably aligned in a nation that the United States has no business involving itself in whatsoever.

    Come on, America. I know you can snap out of the trance they’ve got you in. I know you’ve got it in you. Slam the brakes on the course they’ve got you on. Protest US involvement in Syria. Don’t let them Iraq you again.

  • Oliver Stone Tells Ron Paul: Edward Snowden Is The "Most American Of Patriots"

    Director Oliver Stone, who’s recently released series “The Putin Interviews” stirred up controversy among liberals who accused him of being a Russian propagandist, appeared on the Liberty Report with former Texas Congressman Ron Paul to discuss the documentary, his views about former NSA contractor Edward Snowden, and why the US’s aggressive approach to containing the purported threat posed by Russia has led to a breakdown in relations between the two powers.

    Stone said he’s been “interested” in Russia since being raised as a conservative in New York City, claiming that his father instilled a “fear” of Communism and Russians in him at a young age. In the early 1980s, Stone visited the country for the first time as a screenwriter with the idea of interviewing several dissidents. He has returned several times since. In particular, Stone has become interested in the case of Snowden, whom he praised as “the most American of patriots.”

    “I was interested in Russia – I went back into the 2000s. The Snowden story occupied me. And of course, it’s so ironic that he the most American of patriots is living in Moscow because he has to. It’s the only country in the world that would give him asylum –  in other words it’s the only country in the word that can deny the US what it wants which is Snowden.”

     

    “[Putin] explained to me that Russians wanted an extradition treaty with the US for years, but nothing doing, because there are a lot of Russian criminals in America who stole money from Russia. He did nothing wrong in Russian terms so they gave him asylum – now its 3 years 5 years whatever its going to be. I wish Ed well I really do.”

    Stone tried explaining Putin’s point of view regarding the breakdown in relations between the US and Russia that has occurred since the end of the George W Bush presidency, saying the US’s decision to install new ABM defenses have greatly unsettled Russians, who see their installation as an encroachment.

    “We come around now to this period in 2017…for some reason an improving US-Russia relationship deteriorated completely. Mr. Putin in his interview goes into the ABM treaty, he goes into the expansion of NATO and the American support of terrorism in the caucuses while the Russians were helping them in Afghanistan.”

     

    “That’s an important issue for them. Many American lives were saved. I think you talked about those three issues NATO, ABM, the support of terrorism.”

    The ABM installations, in particular, are threatening a policy of “nuclear parity” that has existed since the Soviet Union, Stone said, adding that the notion that Russia is a threat to the US is “insanity,” given Russia's weaker economy and less powerful military.

    “ABM destroys the nuclear parity that existed. When Mr. Bush tore that up in 2001, that was a signal that the US wanted nuclear superiority, or a first strike option.”

    Stone also shared a story about watching the movie “Dr. Strangelove” with Putin, who he said was greatly moved.

    “I showed him the movie Dr. Strangelove…and he watched it very serious about it. He said this movie was very accurate of that time and it’s still accurate today.”

    Circling back to the issue of nuclear deterrents, Stone said he’s worried that rising tensions around the world could trigger a “nuclear confrontation.”

    “I’m saying I have reached that age when I am not really concerned about what happens to me but… it’s not just about the US, but about the whole planet and I feel a nuclear confrontation, an accident, could happen tomorrow. But you put ABMs in Poland and Romania – that’s a gigantic mistake.”

     

    “An ABM can be converted overnight from a defensive missile to an offensive missile. They’re surrounded from the North the East and the West by US missiles and we don’t seem to realize it.”

    Stone says he’s “scared for America,” explaining that many US citizens prefer to blindly accept media spin that’s favorable to the US establishment, without questioning it, or trying to understand Russia’s point of view.

    “It’s a good thing I went through JFK when I was younger…there’s been a lot of controversy around my movies. I’m scared not for myself because I’m at that age, they can’t destroy me anymore, but I’m scared for America, I’m afraid they’ve lost their sense. I’m afraid there’s a lack of foresight and leadership.”

    Stone denied allegations that he provided questions to Putin ahead of time, and said the four-part documentary is a great opportunity for Americans to learn more about Russia’s enigmatic leader.

    “Over four hours you can listen to a man who’s been there 16 years talk about the balance of power. We live in this spin cycle like a laundry every day it’s a crisis and I think that’s the way we like it, it creates more money but this is not a view of the world.”

  • Maine To Begin Shutdown After Gov. LePage Says He Won't Sign Budget Bill

    After Maine Gov. Paul LePage delivered an ultimatum to state lawmakers, promising to provoke a government shutdown should the state's legislature hand him a budget that includes a tax increase, it appears the governor intends to keep his word.

    LePage told reporters at the state capital that he won't sign anything Friday, ensuring that a shutdown will begin at midnight, because the current budget proposalwhich was endorsed late Thursday by a special panel of lawmakers but has not yet been approved by the state legislature, includes a 1.5% lodging tax increase.

    According to the Bangor Daily News, the budget package currently under consideration would raise the lodging tax from 9% to 10.5%. The budget does, however, include a 3% cut to an education surtax on individuals earning more than $200,000. LePage has also taken issue with the size of the $7.1 billion budget.

    To be sure, it’s not entirely certain that the budget will even make it to the governor’s desk before the day is over. That’s because LePage has asked the state’s House Republicans to oppose the deal, which was negotiated by Senate President Mike Thibodeau, R-Winterport, and House Speaker Sara Gideon, D-Freeport.

    LePage has embraced brash rhetoric during the budget fight, accusing lawmakers of “trying to put a gun to the governor’s head."

    “This budget they have has no prayer, and if they’re hell-bent on bringing this budget down, we will shut down at midnight tonight and we will talk to them in 10 days,” LePage said.

    LePage’s comments came hours before the House and Senate were due to vote on the compromise spending plan.

    Gideon, the democratic opposition leader, said lawmakers should focus on ginning up the two-thirds support that a deal would need. The governor can only legally sit on the budget for ten days before either vetoing or signing it. Once it has been vetoed, the legislature could override the governor with a two-thirds majority vote.

    “If we do not do that and if the governor then does not do his job by either signing the budget or returning it to us immediately with his veto then we will be damaging the lives of too many people in this state,” she said.

    Some Democrats have expressed a desire to work with the governor in eliminating the tax hike at issue in the bill.

    “Senate Minority Leader Troy Jackson, D-Allagash, said during a hastily organized news conference after the governor’s comments that he will personally introduce a bill to eliminate the proposed lodging tax increase if that would spur LePage and Republicans to support the budget bill, though Gideon said she wouldn’t support any changes late in the process.

     

    “If the governor has objections to the lodging tax, that’s fine,” Jackson said. “I will personally sponsor any bill he puts in that eliminates the increase in the lodging tax.”

    Under a shutdown, Maine would have no authority to pay workers, meaning the state’s roughly 12,000 employees will either work or stay home without pay, LePage announced Thursday that state law enforcement, state parks, psychiatric hospitals, prisons and ferries will remain operational, but that was only a partial plan. During the state’s last shutdown, in 1991, 2,000 employees were called into work at the beginning of the shutdown.

    The shutdown, though brief, could have a major impact on the state’s economy, according to BDN.

    “Workers represented by the Maine State Employees Association will lose wages generating $2.5 million in daily economic impact, according to an analysis from the liberal Maine Center for Economic Policy, with $944,000 in Kennebec County alone.”

    Uncertainty surrounding whether state workers will be paid next week inspired a wave of protests at the capitol.

    Some of those union members were at the State House on Friday, including Kip Mitchell, 53, a Maine Department of Transportation employee who said he’s the only wage earner in a family of four who said “the uncertainty is scary.”

     

    Jonathan French, 38, of Hallowell, a civil engineer in the same department, said he had worries besides his job, since his young son gets services through the Maine Department of Education’s Child Development Services program.

     

    “We’re citizens, too, so we’re going to be out of work, but we’re also going to experience all the other effects of the shutdown … ,” he said. “So, it’s kind of a double-whammy for us.”

    Two other states, Connecticut and Illinois, are struggling to pass budgets on Friday. Connecticut, which has seen its debt downgraded by all three of the major ratings agencies in recent months, is trying to winnow a $5 billion budget deficit that’s driven largely by overly generous benefits to state employees. Connecticut Gov. Dannel Malloy signed an executive order Friday afternoon to take control of state spending after the legislature was unable to reach a deal on the bienniel budget.

    Illinois, which has been operating without a budget for two years, could see its debt rating downgraded to junk territory if it fails to pass a budget. As the situation in Illinois appears increasingly uncertain, its house speaker has said he will ask the credit agencies to defer action based on progress being made toward an accord.

    Right. Good luck.

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Today’s News 30th June 2017

  • 5 Reasons America Should Not Fight Iran, Russia, And Assad In Syria

    Authored by Aaron David Miler and Richard Sokolsky via The Strategic Culture Foundation,

    Pursuing an ambitious mission against all three adversaries in Syria is dangerous, imprudent and unnecessary

    The idea du jour circulating inside the Trump administration and among terrorism experts and Syria watchers alike is that ISIS cannot be destroyed in Syria unless Bashar al-Assad is removed from power and Iran’s presence and influence are drastically curtailed. And in a perfect world, this indeed would be the best possible outcome to prevent ISIS and other jihadi groups, including Al Qaeda, from ensconcing themselves there. But needless to say, the Middle East isn’t a perfect world. U.S. retaliation against another chemical-weapons attacks, as the White House threatened late Monday, would be both necessary and justified. (Assad and his military would “pay a heavy price,” the statementread.) But pursuing an ambitious mission against Iran, Assad and the Russians in Syria is dangerous, imprudent and unnecessary to protect vital American security interests.

    Here are five compelling reasons why.

    The United States Can’t Eradicate ISIS in Syria

    In his inaugural address, President Trump spoke about eradicating radical Islamic terrorism from the face of the earth. It cannot be done. Syria alone will remain an incubator for jihadists and Salafists of all stripes due to a toxic brew of poor governance, bleak economic opportunities, sectarian hatreds and beleaguered Sunni communities. And its ideology and propaganda will still be able to feed on the resentments and sense of victimhood and grievance among the Sunni population. Those who argue for a more assertive policy in Syria are right that, unless these problems are addressed, ISIS and other jihadi groups will continue to thrive even without the caliphal proto-state. But even the most risk inclined in the Trump administration cannot envision that kind of U.S. commitment in Syria, which would entail the United States and its allies committing thousands of troops and billions of dollars to militarily defeat all of their adversaries in Syria and to occupy, stabilize and reconstruct the country. Indeed, the president himself has strongly argued against nation building. Containing jihadists is realistic; ridding them from Syria is a pipe dream.

    There’s No Foreseeable Stable End State for Syria

    The idea that confronting Iran or trying to weaken the Assad regime in an effort to remove him from power or force him into a negotiated political transition is chimerical. That’s been evident for several years. Even if the United States made a commitment to take Assad out, it would lead to more chaos, no organized force aligned with the West to replace him and a mad scramble among all kinds of groups—Sunni jihadists like ISIS and Al Qaeda, pro-Iranian Shia militias, Alawites and Kurds—to consolidate control over real estate, making the situation worse. Assad was unprepared for a negotiated political transition before Russia’s intervention in 2015 helped turn the tide in his favor. He certainly would never agree to such an outcome now that he controls most of the critical cities and regions in Syria. Moreover, the Russians, who may ultimately want a political solution as an exit strategy, don’t seem to be in a hurry for one—and Moscow won’t be pressured and intimidated into accepting one, given what it has invested in Syria. Thus, even if getting rid of ISIS, in theory, means ridding Syria of Assad and Alawite domination, reducing Sunni grievances and stemming Iran’s influence, it simply isn’t feasible at a cost the American Congress and public are willing to pay. And if there is no attainable stable end state, the Trump administration’s moves to deepen military and civilian involvement in Syria need to be carefully weighed and evaluated against the precise objectives that an escalating commitment is designed to achieve. Those who are pushing for a more aggressive role in Syria have never identified the relationship between more U.S. engagement and any conceivable end state.

    We Don’t Want a War with Iran

    Iran is run by a repressive regime. It abuses human rights, has expansionist aims and sponsors terrorist acts throughout the Middle East. But trying to roll back Iran’s influence in Syria looks a lot easier in theory than in practice. Those pushing to eject Iran from southeastern Syria and stymie its efforts to control border crossings between Iraq and Syria—with the intention of creating a land bridge to the Mediterranean—have yet to demonstrate how any of this would contribute to the defeat of ISIS. Nor have they been forthright about the forces it would take to achieve these goals and sustain control over the region. One White House official recently referred to the creation of a Rat Patrol modelled after the 1960s TV show depicting a bunch of tough U.S. soldiers riding around in jeeps and harassing German soldiers in the North African desert. The administration is also planning to send a seven-member team to provide humanitarian assistance to areas in southeastern Syria that have been liberated from Islamic State control. All of this amounts to tactical gimmicks bound to fail, not a strategy. The administration’s Syria policies are untethered to any broader set of goals for combating ISIS and other jihadi groups—a goal that Iran shares more urgently, given the recent terror attack in Tehran. Moreover, ramping up a more aggressive and escalatory policy against Iran might jeopardize the nuclear accord. That agreement is far from perfect, but it will significantly slow down Iran’s march toward a nuclear-weapons capability for the next ten to fifteen years. Indeed, with the North Korean nuclear file very much open, the last thing the United States needs is another outlier state pushing to join the nuclear club.

    The United States Can’t Sideline Russia

    Fears that the United States and Russia will slide into a full-scale war over Syria are overblown because both fully appreciate the potentially catastrophic consequences. But continued escalation of military incidents involving U.S. and Russian forces in Syria will make it all but impossible for the two countries to work out any kind of modus vivendi for stabilizing the country after Raqqa falls to U.S. and coalition forces. Russia confronts Washington with several inconvenient truths: first, it’s in a much stronger military and diplomatic position than the United States. Second, because Putin has the upper hand it is hard to imagine that he (or the Assad regime) will be amenable to imposing any meaningful restrictions on Assad’s freedom of action. Nor is Putin likely to accept any kind of international presence in Syria for peacekeeping, stabilization and reconstruction that undermines their control. Third, Moscow will be critical to establishing the political and economic arrangements that will be required for stabilization and reconstruction. In short, any kind of post-conflict cooperation with Moscow in Syria will not be possible if the United States tries to put the squeeze on Russia. Those who argue that pressure on Moscow is the only way to change Putin’s calculations ignore the president’s seeming unwillingness to tangle with him, the unwillingness of the United States to apply serious pressure and Putin’s willingness to push back if necessary.

    U.S. Interests in Syria Aren’t as Vital as Those of Its Adversaries

    No matter how important Syria is to the United States (and an argument can be made that it’s not all that important), Washington needs to decide how much it’s prepared to sacrifice and whether it’s ready to stay the course when Iran and Russia push back. There’s an elemental divide between the way the United States sees this issue and those who live in or close to the region: whether it’s Iran, Turkey, Israel, Jordan and the Gulf Arabs, they seem prepared to sacrifice far more than the United States. They know their neighborhood better, geography and demography give them key advantages, and for many the stakes are existential in a way they’ll never be for America. Nowhere is this more apparent than in Syria: Assad is fighting for his survival; Syria may not be as vital to Iran as Iraq is, but Tehran has already sacrificed huge resources, men and material to the fight; and Putin didn’t project Russia’s military power into Syria only to fold in the face of U.S. pressure. The reality is that the Syria-Iran-Russia coalition is much more a coalition of the willing than the alliance the United States has managed to assemble, which seems more like a coalition of the semi-willing and self-interested. The argument that the only way to change Russian or Iranian calculations is to escalate the pressure is a dangerous game, given the disparity in will, interests and allies that exists between the two sides. Who’d blink first, given the absence of congressional and public support for another military adventure with no end state (see Afghanistan and Iraq)?

    Like Afghanistan where the United States is now also stuck, Washington will likely need to settle for a good-enough outcome, certainly not a victory. What this means now is impossible to say. After all, the United States has been in Afghanistan for a decade and a half, and still doesn’t know if anything resembling sustainable success is in the cards.

    Still, the primary goal in Syria must continue to be weakening and containing jihadi groups, keeping them on their heels to prevent attacks on the United States, Europe and regional allies. This is not an optimal outcome, but it’s far more preferable than pursuing unrealistic and unrealizable goals that could drag the United States into endless and distracting wars it cannot win against far more committed and determined adversaries. Managing rather than eliminating the jihadist threat in Syria is neither a pretty nor heroic strategy, and it certainly won’t fix Syria or deal Iran a strategic blow. But for America, it’s the right approach, particularly when considering the risks and downsides of taking on Syria and Iran in these contested areas. And there are hopeful signs that the Pentagon at least is well aware of these dangers.

  • Sarah H. Sanders Takes No Crap From Virtue Signaling WH Press Corps

    Content originally published at iBankCoin.com

    During yesterday’s White House press briefing, Deputy Press Secretary Sarah Huckabee Sanders was hit with a barrage of salty questions over President Trump’s early morning tweets about MSNBC hosts “Low I.Q. Mika Brzezinski” and her husband “Psycho Joe Scarborough.”

    Identity Politics 101

    When NBC’s Hallie Jackson asked how “as a woman” she felt about the President attacking another woman on her looks, Sanders didn’t bat an eyelash – telling the outraged social justice journalist:

    Everybody wants to make this “an attack on a woman.” What about the constant attacks he [Trump] receives? Or the rest of us? I’m a woman and I’ve been attacked by the shows multiple times – but I don’t cry foul because of it. I think that you want to create this false narrative – one hand it’s like “let’s treat everybody equally,” and on the other hand they attack, attack, attack – and apparently that’s wrong.”

      

    BUT SARAH – THE CHILDREN!

    Attempting to lure Huckabee into a logic trap – Jackson then asked what the Press Secretary would tell her children about Trump’s tweets. Sorry Hallie, God wins just about every time.

    Hallie Jackson: You talk about being personally affected by all of this as well – and that nothing is wrong with the president fighting fire with fire – is the argument you’re making. On a personal level, you have sat here and talked about your family from this podium. Are you going to tell your kids this behavior is okay?


    Sarah H. Sanders: Look, I’ve been asked before – when it comes to role models, as a person of faith, I think we all have one perfect role model, and when I’m asked that question I point to God, I point to my faith, and that’s where I tell my kids to look. None of us are perfect, and certainly there’s only one that is, and that’s where I would point.

    How do Trump’s tweets help his agenda?

    Jon Decker of FOX News Radio then asked Sanders whether or not Trump’s tweets helps his legislative agenda, which she threw back in Decker and the MSM – bringing up the media’s time spent covering various topics:

    Sanders: You look at the coverage over the last month of the extended period between May and June – all of the major networks, if you look at their coverage and what they’re talking about, they spent one minute in the evening newscast talking about tax reform, three minutes on infrastructure, five minutes on the economy and jobs, 17 minutes on healthcare, and 353 minutes attacking the President and pushing a false narrative on Russia. I mean, look at that in comparison. If you guys want to talk about legislative agenda and focus on policy and priorities – you guys get to help set that table.

      

    But, but – Trump should be better than a cable news journalist…

    NBC’s Kristen Welker also threw down – asking about unity.

    Kristen Welker: “Does his tweet this morning, his series of tweets help to unify the country?”

     

    Sarah H. Sanders: “Look, again, I think that the President is pushing back against people who attack him day after day after day.  Where is the outrage on that?”

     

    Kristen Welker: “I understand your point, but he’s the President of the United States, they are cable news anchors.  So he has to stand to a higher standard”


    Sarah H. Sanders: “Again, I think I’ve been pretty clear that when the President gets hit, he’s going to hit back harder, which is what he did here today.”

      

    At the end of the day

    The MSM White House Press Corps played hardball identity politics in their attempt to lure Sarah H. Sanders into calling President Trump a sexist degenerate monster; trotting out women, Sarah Huckabee’s children, “unity,” and cable news anchors – and instead got served for being total hypocrites obsessed with Russia.

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  • Trump Security Chief Turned White House Aide Called As Witness In Russia Probe

    It’s been a couple of weeks since the mainstream media has ID’d a Trump associate who’s been drawn into the ongoing investigations in the alleged collusion between the campaign and Russia. Today’s disclosure comes courtesy of ABC, which identified longtime bodyguard Keith Schiller as a possible witness. Congressional investigators allegedly want to interview Schiller, the former head of security for the Trump Organization who currently serves as the White House director of Oval Office operations.

    Here’s ABC:

    “Congressional investigators now want to interview Keith Schiller, President Donald Trump’s longtime bodyguard-turned-White House aide, as part of their investigation into Russian interference in the 2016 presidential campaign, sources familiar with the investigation told ABC News.

     

    Schiller, the former head of security for the Trump Organization who now serves as the White House director of Oval Office operations, is one of several Trump associates on the House Intelligence Committee’s witness list in its ongoing investigation into Russian election interference.

    ABC claims that the committee’s decision to interview Schiller marks a “new phase” in the investigation, which is examining how Russia attempted to influence the election, the Obama administration’s response and allegations of collusion between Trump associates and Russian officials. But it's unclear exactly what the news organization means by this.

    "The committee’s focus on Schiller and other Trump campaign officials and associates marks a new phase in the investigation — which is examining how Russia attempted to influence the election, the Obama administration’s response and allegations of collusion between Trump associates and Russian officials.

     

    “It's the latest indication that the investigations are touching Trump's inner circle. In late July, longtime Trump associate Roger Stone is expected to appear before congressional investigators for a closed-door interview. The growing list of other Trump associates the committee has said they want to meet includes former National Security Adviser Michael Flynn, Trump son-in-law and senior adviser Jared Kushner, and former Trump campaign chairman Paul Manafort.”

    To date, Kushner, Stone, Flynn and Manafort have all volunteered to cooperate with the ongoing investigations and have denied any wrongdoing. Notably, ABC’s report is devoid of any details about the questions Schiller might be asked, or the circumstances surrounding whatever it is he may have witnessed. But, as is becoming tradition with these anonymously sourced reports about the Russia investigation, the most telling details can be found at the bottom of the story.

    “One White House official was unsurprised to learn that Schiller has been contacted. As the investigations expand, several White House aides have expressed privately to ABC News that they are expecting to hear from Congress or the special counsel.”

    That’s right: Schiller is being called as a witness because it’s likely that EVERYBODY EVEN REMOTELY CLOSE to the president is being summoned to speak with investigators. As ABC noted lower down in the story, special counsel Robert Mueller has already interviewed dozens of witnesses as part of its probe. Schiller, a former NYPD officer, has been at Trump’s side for nearly 20 years, and is one of his closest advisers and aides — playing the role of a body man, confidant and gatekeeper for the businessman-turned-president.

    Perhaps investigators will focus on the circumstances surrounding the firing of former FBI Director James Comey – a decision for which the Trump administration has provided multiple conflicting explanations, provoking outrage from Democrats. According to ABC, Schiller played a small role in the firing of Comey.

    When Trump made the decision to fire FBI Director James Comey, it was Schiller who hand-delivered the letter of termination from the president to FBI headquarters.

    Schiller typically keeps a low profile, though ABC notes that he headlines during the campaign after hitting a protester outside Trump Tower and ejecting Univision anchor Jorge Ramos from a Trump campaign press conference. Investigators appear to have a wide remit to interview Trump associates, and it’s looking increasingly likely that they won’t be satisfied until every single person in Trump’s orbit has been interviewed. Who knows? Maybe Anthony Senecal, the Mar-a-Lago butler who was the subject of his very own New York Times profile during the campaign, will be next?

  • Russian Satellite Will Launch In Two Weeks, Will Be The Brightest Star In Sky

    Authored by Mac Slavo via SHTFplan.com,

    (ABOVE: An artist’s rendition of the Russian Mayak satellite.)

    Mayak, a Russian satellite that will become one of the brightest stars in the night sky, is just two weeks away from launching into space.  Their goal is to make the unique satellite bright with the use of a giant reflective sheet of material, but some scientists are warning that there may be negative consequences.

    The satellite is small, roughly the size of a loaf of bread and in the form of a CubeSat.  It will be launched on a Soyuz 2.1v vehicle on Friday, July 14, from Baikonur Cosmodrome in Kazakhstan, as a secondary payload. The project, led by Moscow State Mechanical Engineering University (MAMI), raised more than $30,000 on Russian crowdfunding website Boomstarter.

    Once in orbit, about 600 kilometers (370 miles) high, the satellite is designed to unfurl a giant pyramid-shaped solar reflector.

     

    The goal is for this satellite to shine brighter than any other star in the night sky. To do this, its reflector made of Mylar will span 16 square meters (170 square feet) and is apparently 20 times thinner than human hair. The mission is also acting as a technology demonstration, to test how to brake satellites in orbit and de-orbit them.

    “Mayak,” which translates to “Beacon” in English is controversial though.  

    “We want to show that space exploration is something exciting and interesting, but most importantly that today it is accessible to everybody who is interested,” project leader Alexander Shaenko said, reported Sputnik News.  Mayak’s only mission is to be bright and remove defunct satellites from earth’s orbit.

    But it runs the risk of a backlash from scientific and environmental groups, depending on how bright it is. Some, like Russia Today, have suggested it may shine as bright as the Moon, although that is questionable.  Nonetheless, if it is excessively bright, it could cause havoc for astronomers who rely on darkness to observe the universe.

    “We fight so hard for dark skies in and around our planet,” Nick Howes, an astronomer and former deputy director of the Kielder Observatory in Northumberland, told IFLScience.

     

    “To see this being potentially ruined by some ridiculous crowdfunded nonsense makes my heart simply despair.”

    Skeptics won’t keep the satellite from launching though. Russia will put Mayak in space in about two weeks, on July 14.  We’ll have to wait to see just how bright it is and if it’s bright enough to warrant complaints from scientists.

  • House Passes "Kate's Law" & Bill Targeting Sanctuary Cities

    Split largely along party lines, The House passed legislation on Thursday to crack down on illegal immigration and enact a key priority of President Trump’s known as "Kate's Law."

    As The Hill reports, the House approved two bill –

    • one would cut off some federal grants from so-called sanctuary cities that limit cooperation with immigration authorities;
    • the other would impose tougher sentences on criminals who have entered the U.S. illegally multiple times.

    “For years, the lack of immigration enforcement and spread of sanctuary policies have cost too many lives,” said House Judiciary Committee Chairman Bob Goodlatte (R-Va.), the author of both bills.

    Kate's Law is named for Kate Steinle, a San Francisco woman killed by an illegal immigrant who was in the U.S. despite multiple deportations.The brutal murder of Steinle catapulted the issue of illegal criminal aliens into the national spotlight. Alleged shooter Juan Francisco Lopez-Sanchez had been deported five times and had seven felony convictions. The two-year anniversary of her death is on Saturday.

    The second measure, "No Sanctuary for Criminals Act," would cut federal grants to states and “sanctuary cities” that refuse to cooperate with law enforcement carrying out immigration enforcement activities.

    “The word 'sanctuary' calls to mind someplace safe, but too often for families and victims affected by illegal immigrant crime, sanctuary cities are anything but safe,” Homeland Security Secretary John Kelly asserted in the pre-vote press conference.

     

    “It is beyond my comprehension why federal state and local officials … would actively discourage or outright prevent law enforcement agencies from upholding the laws of the United States,” he added.

    House Democratic leaders encouraged members to oppose the bill to withhold funds from sanctuary cities, but didn’t apply as much pressure on “Kate’s Law,” which establishes higher penalties for criminals who have entered the country illegally. As The Hill reports,

    The sanctuary city bill passed 228-195, while the sentencing bill passed 257-167.

     

    Three Democrats defected from their party to support taking away grants from the sanctuary localities: Reps. Matt Cartwright (Pa.), Henry Cuellar (Texas) and Collin Peterson (Minn.). Seven Republicans voted against the bill: Reps. Justin Amash (Mich.), Carlos Curbelo (Fla.), Mario Diaz-Balart (Fla.), Dan Donovan (N.Y.), Peter King (N.Y.), Dave Reichert (Wash.) and Ileana Ros-Lehtinen (Fla.).

     

    Twenty-four Democrats voted for "Kate's Law." Amash was the only Republican to oppose it.

    President Trump was pleased

    Calling the bills "vital to public safety and national security."

    Democrats, as appears to be their identity-politics-driven divisive way, accused proponents of the bill of stoking anti-immigrant attitudes.

    “These bills are nothing new and they are not really about immigration or fighting crime,” Rep. Luis Gutierrez (D-Ill.), a member of the Congressional Hispanic Caucus, said during House floor debate. “They are about racial profiling and putting Latinos, quote unquote, in our place.”

    ICE already has arrested nearly 66,000 individuals this year that were either known or suspected to be in the country illegally. Of those arrested, 48,000 were convicted criminal aliens.

    We now await the legal challenges to these bills which we are sure will be unleashed instantly.

  • Rebellion At The NYTimes: Newsroom To Walk Out After "Decrying Direction Of Paper"

    Exhausted and demoralized after repeated buyouts and cutbacks in the newsroom, it seems the downtrodden journalists at the New York Times have finally had enough: In a pair of letters delivered to executive editor Dean Baquet and managing editor Joseph Kahn, the News Guild of New York said the New York Times editorial staff will leave the newsroom on Thursday as a demonstration of solidarity as management threatens jobs, according to MarketWatch.

    Unlike the employee rebellion at the Wall Street Journal last year, when staffers confronted management about unequal pay practices and a paucity of female reporters and editors in leadership roles, the uproar at the times is centered around the repeated paycuts and cutbacks, which have left the newsroom feeling “demoralized.” One letter was sent by the organization's copy editors, who are facing dramatic staffing cuts, while the second letter was sent by reporters in an expression of solidarity with the editing staff. Both detailed frustrations with the repeated rounds of buyouts, and the lack of transparency surrounding management’s decisionmaking.

    “In the copy editors’ letter to Baquet and Kahn, they say they feel betrayed and disrespected in the newsroom, and ask that management reconsider staffing cuts that are expected as the paper plans to restructure.

     

    “Cutting us down to 50 to 55 editors from more than 100, and expecting the same level of quality in the report, is dumbfoundingly unrealistic,” the letter reads. “You often speak about the importance of engaging readers, of valuing, investing and giving a voice to readers. Dean and Joe: We are your readers, and you have turned your backs on us.”

     

    “Editors — and yes, that especially means copy editors — save reporters and the Times every day from countless errors, large and small,” they say in the letter. “Requiring them to dance for their supper sends a clear message to them, and to us, that the respect we have shown the Times will not be reciprocated.”

    The editorial staff is accusing Times management of being too opaque in its efforts to restructure the news operation, which includes consolidating two separate groups of editors into one group and asking copy editors to resubmit applications for roles in the newsroom.

    Indeed, morale is so low at the NYT that its reporters and editors said they actually feel more respected by readers than by management. The letters referenced an internal report in which the copy editors were compared to dogs urinating on fire hydrants.

    That’s quite the claim  – considering President Donald Trump’s relentless bashing of the “failing” news organization has turned public sentiment squarely against it.

    “And that is why it feels like such a profound waste that morale is low throughout the newsroom, and that many of us, from editors to reporters to photo editors to support staff, are angry, embittered and scared of losing our jobs,” the letter reads.

    The rebellion comes at a time when advertising revenues for print – formerly a powerhouse of the media industry that has been precipitously eroded by the rise of free news on the internet – continue to shrink, and gains in digital advertising are failing to make up the difference.

    In the first quarter, print ads declined by 18% while digital ad revenue increased by nearly 19% and accounted for more than 38% of the company’s total ad revenue. Still, the paper’s stock remains buoyant; shares have risen more than 35% year-to-date, compared with a 9% gain in the S&P 500.

  • Saudi Arabia Is Weakening US Influence In The Middle East

    Authored by Federico Pieraccini via The Strategic Culture Foundation,

    As widely anticipated, tensions between members of the Gulf Cooperation Council (GCC) are slowly corroding the unity of Washington’s allies in the Middle East

    In a series of almost unprecedented events among Washington's regional allies, the crisis between Saudi Arabia and Qatar seems to worsen by the day. The long-awaited list of demands presented to Doha by Riyadh seem to be intentionally impractical, as if to oblige Qatar to plead guilty to the crimes alleged by the Saudi kingdom or face the consequences, still unknown.

    The surreal requests start with demands to close the international television network Al Jazeera, as well as halt the financing of the Muslim Brotherhood. At the heart of the issue remains the question of political and diplomatic relations with Iran, the bane of the Saudi royal family’s existence. The House of Thani that controls Qatar has until July 3 to accept all the demands presented. At the moment, Doha seems to be sending mixed messages, announcing that it wants to evaluate the Saudis’ proposals, but also letting it be known that most of the demands are «not reasonable».

    Another interesting tidbit concerns the removal of Muhammed bin Nayef by the Saudi king as his successor to the throne. Prince Mohammad bin Salman, the young 31-year-old nephew, replaces Muhammed bin Nayef, the former Crown Prince and major ally of the CIA and European and American governments. Mohammad bin Salman is currently the most controversial figure in the Middle East. Responsible for the devastating war in Yemen and the desperate financial state of Riyadh’s finances, he oscillates between his Vision 2030 and an anti-Iranian preoccupation that is likely to bring his kingdom to bankruptcy. In Yemen, he waged a military campaign costing in the tens of billions of dollars, only to lose against the poorest Arab country in the world. His irrational anti-Iranian stance has even led him to risk a conflict within the GCC (thanks to the precious lobbying role of the UAE ambassador to the US, Yousef al-Otaiba) over the excessive freedom of Doha's foreign policy.

    Initially, this disaster appeared to be limited only to the two Gulf nations, with Trump’s Twitter account signalling Washington’s immediate backing of Mohammad bin Salman’s crusade against Iran and Qatar. The severity of the situation was immediately perceived by Turkey. Ankara and Doha have always played a leading role in the Muslim Brotherhood, a religious group that Riyadh considers to be terrorist organization and a threat to their Salafi realm.

    Turkey reiterated its support for the House of Al Thani by deploying about 3,000 military personal to Doha in the country's new military base, at the same time dismissing as «useless and unresponsive» the Saudis’ requests to abandon the base and withdraw their troops. In a series of unprecedented moves, bin Salman mooted the possibility of supporting Kurdish troops in Iraq and Syria if Ankara should continue to support Doha. What once seemed to be an indissoluble union between Turkey, Qatar and Saudi Arabia today presents far more than fracture and tension, all to the benefit of the likes of Iran and Russia fighting terrorism in Syria alongside the legitimate government in Damascus. It is a nightmare for those like the United States who hoped to continue to impose their will on the Middle East through the blind obedience of certain vassals like Turkey, Qatar and Saudi Arabia. With each one battling the other, the US’s role becomes much more complicated to influence events.

    Tensions between Washington's allies are creating a situation of all against all, indeed a sense and feeling that is all too commonly reflected in Washington these days. After days of silence, the State Department and the Pentagon expressed their support for Qatar, contradicting the President’s indications that Qatar was a terrorist-financing state. Confusion and contradictions in the United States are increasingly having a destabilizing effect, showing a country without a strategic direction. The State Department has strongly criticized Saudi Arabia for its attitude towards Qatar over the last two weeks. This is by no means surprising, as the US Department of State is still infiltrated by former Obama administration loyalists, who themselves are heavily tied to the Muslim Brotherhood, as was the former nominee Hillary Clinton together with her trusted assistant Huma Abedin. The Pentagon, in this deep-state civil war, considers Qatar primarily from a tactical perspective: 90% of US aircraft directed against Syria take off from the Al Udeid Air Base in Qatar. The sale of $12 billion worth of jets to Qatar is evidence that Qatar is one of the military-industrial complex’s best customers. The contradictory messages emanating from this US administration, unable to speak with one voice, continues to destabilize America’s closest allies in the region.

    Another move that has certainly not gone unnoticed concerns the deployment of several Israeli tactical and operational aircraft in Saudi Arabia. The process of rapprochement between these two nations continues unabated, creating even more distrust in the region.

    What now seems irreversible is the attitude of Doha’s authorities, who seem to have decided to use this opportunity to chart their own course independently of Riyadh. The Qatar Airways CEO, when interviewed by Al Jazeera, reiterated that, thanks to Iran, there is a chance for the operator to circumvent the skies illegally closed to it by the UAE, Saudi Arabia and Bahrain. The CEO, when questioned on how he would proceed given the expected huge losses, stated that the company intends to broaden its horizons towards new routes so far unexplored.

    Saudi tactics are likely to create difficulties and problems for Qatar, even with support from Iran and other regional countries. For the moment, Doha’s ships carrying liquefied natural gas (LNG) continue to operate freely. In a country that receives almost 90% of its revenue from the sale of LNG, blocking its ships would mean pushing Qatar into a corner, a state of affairs that would closer resemble conventional warfare. Bin Salman’s inexperience and bungling will end up creating problems with Egypt, which currently allows transit of Qatar’s LNG through the Suez Canal to reach the Mediterranean and deliver gas to European customers. A request from Riyadh to Cairo to block Qatari ships would hardly be accepted, creating further fractures and tensions among those participating in the blockade of Qatar.

    Perhaps Trump has only now realized how unhelpful these rifts are to his Arab NATO plan. If Turkey and Israel are on opposite sides, and Qatar and Saudi Arabia are on the verge of a war, it is unlikely that Washington could continue to try impose its strategic vision in all the Middle East in the intention of safeguarding its interests.

    In this chaotic mess for the US and it’s allies, as always, the axis of the Shiite resistance benefits the most, especially in Syria with the advancement of Assad's troops in the province of Deir ez-Zor, after almost five years of its absence there. Where Turkey, Iran and Russia have achieved ceasefire agreements, signed in Astana, the majority of remaining problems lie with the terrorist groups supported by Qatar and Turkey or Saudi Arabia. In addition to a series of skirmishes a few days ago, mistrust and the swapping of sides seem to be on the agenda, with Syria decreasingly under the control of terrorists and the prospect of the entire country being liberated coming into vision.

    Washington is once again getting itself into an almost unprecedented situation. Whether or not Trump has given his blessing to Saudi Arabia’s actions against Qatar, what matters are the consequences for the region. Iran seems to play more and more the role of a moderate force ready to engage in dialogue with all parties. The Saudi attitude is likely to disaffect two strategic partners, Turkey and Egypt, with the latter ready to abandon the Saudis if pushed too far. Turkey, after intense Russian diplomatic efforts, seems to be on the verge of abandoning its support for anti-Assad forces, but prudence dictates that it tarries awhile before proceeding with these changes. Erdogan has often played a double or triple game.

    Bin Salman’s strategy began with the Yemen war, continued with hostility against Qatar, and is now culminating with his appointment as Crown Prince. Trump seems to have climbed onto the chariot of losers, and now it is harder than ever to support a loose cannon like bin Salman who seems to show little hesitation in destroying his kingdom as well as undoing fundamental relations among Washington's allies.

    It is a struggle against time for the American deep state in fight against itself and spinning around in conflict. The risks of Bin Salman’s disruptive actions and Trump’s incompetence could have unimaginable consequences, as the possible collapse of the whole Anglo-American Middle East architecture constructed over a hundred years of wars and abuses.

  • Millennial Housing Crisis Unfolds As Skyrocketing Avocado Prices Hit All Time High

    One month ago, an Australian millionaire “discoverd” the cause why US housing refuses to rebound to its pre-crisis levels, and tangentially why Millennials were – at least anecdotally – living if not in their parents basement, then destined to a life of renting: avocado toast. (For a more in depth discussion on Millennials’ housing habits, read “Will Millennials Ever Become A Generation Of Homeowners: BofA Has A Troubling Answer“).

    Tim Gurner, a luxury property developer in Melbourne told 60 Minutes in Australia that young people can’t afford to buy property because they’re wasting money on fancy “avocado toast” and overpriced coffee.

    “When I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each,” he said. “We’re at a point now where the expectations of younger people are very, very high.”

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    He added: “We are coming into a new reality where … a lot of people won’t own a house in their lifetime. That is just the reality.” Asked if he believes young people will never own a home, he responded: “Absolutely, when you’re spending $40 a day on smashed avocados and coffees and not working. Of course.” The 35-year-old executive then offered a point of comparison, describing how hard he worked when he was young.

    Gurner was not the first to suggest that young people’s love of avocado toast was making it harder for them to buy homes. According to the Guardian, demographer Bernard Salt wrote in the Australian last year that if young people stopped going to “hipster cafes”, they could purchase property. He wrote: “I have seen young people order smashed avocado with crumbled feta on five-grain toasted bread at $22 a pop and more. I can afford to eat this for lunch because I am middle aged and have raised my family. But how can young people afford to eat like this? Shouldn’t they be economising by eating at home? How often are they eating out? Twenty-two dollars several times a week could go towards a deposit on a house.”

    Well, we have bad news: as of today, the price of raw avocado just hit an all time high, and if the gentlemen mentioned above are correct, it assures an entire generation of Millennials will be doomed to rent or continue living in various parental basements.

    Among other thing, the record high price has been blamed on soaring demand as American per-capita consumption jumped to 6.9 pounds in 2015, versus 3.5 pounds in 2006, according to government data. People are being drawn to the fruit not just for its taste but also for its healthy oils and fats, a trend borne out in the U.S. by Starbucks Corp.’s announcement last month it’s selling avocado sandwich spread.

    “You have increased consumption in China and other areas of the world, like Europe,” said Roland Fumasi, an analyst at Rabobank in Fresno, California. “They’re pulling a lot more of the Mexican crop, so there’s less available for the U.S.”

    As Bloomberg reported in April, Mexico supplies 82 percent of the avocados eaten north of the border. Its shipments into the U.S. surged to 1.76 billion pounds in 2015 from just 24 million pounds in 2000, according to data from the Hass Avocado Board in Mission Viejo, California. As a result, in late April a 10-kilogram (22-pound) box of Hass avocados from the state of Michoacan, Mexico’s biggest producer, cost 530 pesos ($27.89). The price was more than double what it was a year earlier and the highest in data going back 19 years.

    * * *

    Meanwhile, piggybacking on the meme of avocados-as-homeownership-equivalent, SoFi, an online personal finance company geared toward younger moneymakers, said today it would “award” anyone who takes out a mortgage through the service a month’s worth of avocado toast, delivered straight to their door. So… take out a mortgage that locks you in for 30 years, but get free avocados for a month.

    From the purposefully absurd press release:

    SoFi Is Offering Avocado Toast for Buying a Home—Yes, Really

     

    Who says you can’t have avocado toast if you want to buy a home? Oh, right—an Australian real estate developer who made the comment heard ’round the world about how it’s preventing millennials from becoming homeowners.

     

    Obviously, buying a home doesn’t mean you have to chuck avocado toast out of the picture. In fact, buying a home now comes with avocado toast.

     

    What we mean by that is, for the month of July 2017 only, anyone who takes out a SoFi mortgage to purchase a home will receive a month’s worth of avocado toast delivered to their door. Buy a home using a SoFi mortgage, and you’ll receive an email asking whether you want regular or gluten-free bread. Avocados and bread will then arrive in a series of three shipments—though you’ll still need to toast the bread yourself to get the full experience.

     

    Why avocado toast? Because with a SoFi mortgage, you don’t have to skip out on the avocado toast while saving up for a down payment. SoFi mortgages make it possible to buy a home with just 10% down and no borrower-paid private mortgage insurance required, which could get you into your dream home sooner. It could also make it possible to do that while brunching. 

     

    Plus, the SoFi pre-approval process is mostly online and exceptionally fast (paperwork is kept at a minimum). And with flexible debt-to-income limits, SoFi mortgages make it possible to qualify for more financing than you might with a traditional lender. For millennials with student debt, this could be your ticket to a home, rather than opting out of an occasional morning treat.

     

    So, want to buy a home and have your avocado toast, too? Apply for a SoFi mortgage, and once it goes through we’ll email you with details about sending you fancy breakfast to pair with coffee on your new kitchen countertop. (Instagram filter optional.)

    While it remains to be seen if this gimmicky ad campaign is successful in spurring millennial homeownership, even if it means soaring bad debt for SoFi in just a few short year, for now a far bigger threat to the US housing market is how financially challenged millennials will be able to juggle both their favorite bourgeois meal as well as saving up for that down payment or simply staying current on their mortgage.

  • American "Fear Of Sharia" Is Anything But "Silly"

    Authored by A.Z.Mohamed via The Gatestone Institute,

    • To allay fears inspired in Americans by what he called a "right-wing caricature" of Islamic jurisprudence, Imam Feisal Abdul Rauf claimed, falsely, that it "does not presume to replace American law. It agrees with its underlying values and promotes them." In fact, both founders of political Islam, Sayyed Qutb and Hassan al-Banna, openly explained that Islam wishes to destroy all states and governments.
    • A new problem seems to have sprung up: some disembodied entity at Google apparently decided, with a few swipes of a bear-paw, to censor all the contents from these historically accurate think-tank postings. What is Google trying to keep you from knowing? Material that would be more dangerous for you to know or more dangerous for you not to know? How considerate of Google to have made this decision for you!
    • American fear of sharia is anything but "silly." It comes not a minute too soon.

    In a recent op-ed in the New York Daily News, Kuwaiti American Sufi cleric and activist Feisal Abdul Rauf — who served more than 25 years as the imam of the Masjid al-Farah Mosque in New York City — argued that nobody in the United States should be worried about the incorporation of Islamic law, sharia, into the legal system or should be protesting it. To allay fears inspired in Americans by what he called a "right-wing caricature" of Islamic jurisprudence, Rauf claimed, falsely, that sharia "does not presume to replace American law. It agrees with its underlying values and promotes them." In fact, both founders of political Islam, Sayyed Qutb and Hassan al-Banna, openly explained that Islam wishes to destroy all states and governments.

    Both founders of political Islam, Sayyed Qutb (right) and Hassan al-Banna (left), openly explained that Islam wishes to destroy all states and governments. (Images source: Wikimedia Commons)

    Hmm, a new problem seems to have sprung up: some disembodied entity at Google apparently decided, with a few swipes of a bear-paw, to censor all the contents from these historically accurate think-tank postings. What is Google trying to keep you from knowing? Material that would be more dangerous for you to know or more dangerous for you not to know? How considerate of Google to have made this decision for you!

    Anyhow, Rauf then goes on to say that sharia courts would never be sanctioned in the U.S. "The First Amendment, which prevents government establishment of religion, forbids it," he writes, incorrectly.

    The First Amendment, in its entirety, reads as follows:

    Amendment I. Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.

    Rauf then proceeds to defend sharia against its detractors.

    "Sharia is not about amputations and stoning," he assured readers, again incorrectly.

    Rauf continues: "…Within the history of Islam, they have rarely occurred." A short search in google belies that.

    "What Islamic law does prescribe," he goes on, in a breathtaking example of taqiyya [obfuscation] and kitman [dissimulation] — which are both permitted in Islam under certain circumstances, such as to defend Islam — "are the same do's [sic] and don'ts of the Ten Commandments — the social imperatives most of us recognize whatever our religion."

    Ironically, the Reuters photo selected by the Daily News op-ed editor to accompany the piece — a snapshot of a Muslim bride at her "sharia" wedding – provided inadvertent evidence of Rauf's deceit. Sharia forbids taking, printing or disseminating photos except when required (such as to obtain a passport) or otherwise necessary. In addition, according to sharia, a female Muslim must cover her entire body, her hair and preferably her face — so as not to arouse sexual desire in men other than her husband. As it is written in the Quran (33:59):

    "O Prophet! Tell your wives and daughters and the believing women that they should draw over themselves their jilbab (outer garments) (when in public); this will be more conducive to their being recognized (as decent women) and not harassed."

    One frequently quoted hadith (the actions and saying of the Prophet Muhammad) goes farther, branding women who are "dressed but appear to be naked" as "inviting to evil and will be inclined to it. They will not enter Jannah (paradise) and they will not even smell its fragrance."

    The bride in the photo illustrating Rauf's article is wearing a very revealing dress, which exposes not only her face and hair, but her entire upper body and a view of cleavage. Although it is likely that the picture was taken while she was with a group of women, it is now on public display, enabling men other than her husband to see it.

    As someone who has shared the article on social media, Rauf would be considered by sharia to be among those responsible for "inviting to evil" through its dissemination, as would the bride herself, the groom and her other male guardians, such as her father and brothers.

    In any country governed by sharia, such as Iran, these transgressors could expect not only divine retribution, but punishment ("ta'zir"), meted out by a qadi (judge), Muslim ruler, religious police or other disciplinary forces. This punishment is often imprisonment or brutal lashing.

    In Saudi Arabia, for example, a woman was arrested last December for tweeting a picture of herself without a hijab or abaya.

    Such instances are completely absent from Rauf's article.

    Rather than whitewashing the Islamic legal system, and trying to assuage what the headline of the piece calls the "silly American fear" of sharia, Rauf — and the family and imam of the Muslim bride in the photo — should be grateful for living in the United States, where they are not subjected to such cruel and senseless punishments. American fear of sharia is anything but "silly." It comes not a minute too soon.

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Today’s News 29th June 2017

  • "It Is The Presstitutes, Not Russia, Who Interfered In The US Presidential Election"

    Authored by Paul Craig Roberts,

    Unlike Oliver Stone, who knew how to interview Vladimir Putin, Megyn Kelly did not. Thus, she made a fool of herself, which is par for her course.

    Now the entire Western media has joined Megyn in foolishness, or so it appears from a RT report. James O’Keefe has senior CNN producer John Bonifield on video telling O’Keefe that CNN’s anti-Russia reporting is purely for ratings:

    “It’s mostly bullshit right now. Like, we don’t have any big giant proof.”

     

    CNN’s Bonifield is reported to go on to say that “our CIA is doing shit all the time, we’re out there trying to manipulate governments.” 

    And, of course, the American people, the European peoples, and the US and European governments are being conditioned by the “Russia did it” storyline to distrust Russia and to accept whatever dangerous and irresponsible policy toward Russia that Washington comes up with next.

    Is the anti-Russian propaganda driven by ratings as Bonifield is reported to claim, or are ratings the neoconservatives and military/security complex’s cover for media disinformation that increases tensions between the superpowers and prepares the ground for nuclear war?

    RT acknowledges that the entire story could be just another piece of false news, which is all that the Western media is known for.

    Nevertheless, what we do know is that the fake news reporting pertains to Russia’s alleged interference in the US presidential election. Allegedly, Trump was elected by Putin’s interference in the election. This claim is absurd, but if you are Megyn Kelly you lack the IQ to see that. Instead, presstitutes turn a nonsense story into a real story despite the absence of any evidence.

    Who actually interfered in the US presidential election, Putin or the presstitutes themselves? The answer is clear and obvious. It was the presstitutes, who were out to get Trump from day one of the presidential campaign. It is CIA director John Brennan, who did everything in his power to brand Trump some sort of Russian agent. It is FBI director Comey who did likewise by continuing to “investigate” what he knew was a non-event. We now have a former FBI director playing the role of special prosecutor investigating Trump for “obstruction of justice” when there is no evidence of a crime to be obstructed! What we are witnessing is the ongoing interference in the presidential election, an interference that not only makes a mockery of democracy but also of the rule of law.

    The presstitutes not only interfered in the presidential election; they are now interfering with democracy itself. They are seeking to overturn the people’s choice by discrediting the President of the United States and those who elected him. The Democratic Party is a part of this attack on American democracy. It is the DNC that insists that a Putin/Trump conspiracy stole the presidency from Hillary. The Democrats’ position is that it is too risky to permit the American people—the “deplorables”— to vote. The Democratic Party’s line is that if you let Americans vote, they will elect a Putin stooge and America will be ruled by Russia.

    Many wonder why Trump doesn’t use the power of the office of the presidency to indict the hit squad that is out to get him. There is no doubt that a jury of deplorables would indict Brennan, Comey, Megyn Kelly and the rest. On the other hand, perhaps Trump’s view is that the Republican Party cannot afford to go down with him, and, therefore, as he is politically protected by the Republican majority, the best strategy is to let the Democrats and the presstitutes destroy themselves in the eyes of flyover America.

    What our survival as Americans depends on is the Russians’ view of this conflict between a US President who intended to reduce the tensions between the nuclear powers and those determined to increase the tensions. The Russian high command has already announced its conclusion that Washington is preparing a surprise nuclear attack on Russia. It is not possible to imagine a more dangerous conclusion. So far, no one in Washington or any Western government has made an effort to reassure Russia that no such attack is being prepared. Instead, the calls are for more punishment of Russia and more tension.

    This most extraordinary of failures demonstrates the complete separation of the West from reality.

    It is difficult to imagine a more extreme danger than for the insouciant West to convince Russia that the West is incapable of rational behavior.

    But that is precisely what the West is doing.

  • America's First Robot Bar Opens In Vegas: "Perfect Pours Every Time"

    Here’s a headline that should send a chill through the spine of every bartender and server in America: “Bionic bartenders deployed at Las Vegas Strip bar.”

    As we reported last week, Cowen analyst Andrew Charles calculated that McDonald’s “Experience of the Future” strategy  could allow it to replace 2,500 cashiers with “Big Mac ATMs” by the end of 2017 – and another 3,000 in 2018.

    Now, in a hint of what’s to come for the nightlife industry, the Las Vegas Sun reports that the a bar relying solely on robot bartenders – the first of its kind in the US – will open on Friday.

    Here’s the Sun:

    “Tipsy Robot, a 2,500-square-foot bar to open Friday at the Miracle Mile Shops at Planet Hollywood, boasts two robotic bartenders ready to make your favorite concoction any way you like.”

    The bar is being run by Rino Armeni, the chairman of a company called Robotic Innovations, who said he decided to open the first robot bar in Las Vegas to give the city a leg up on other nightlife hubs like New York City and Miami.

    Here’s how it works:

    “Customers place their order on one of the dozen tablet stations in the bar or through the Tipsy Robot app on their smartphone. They then pay with cash or credit card and enter their email address.

     

    A QR code (barcode) is sent to the email, which the customer places above various windows available. The barcode is scanned and the drink is entered into the system. Patrons can see where their drink is in the queue and are alerted when their order is up.

     

    Each robot has access to more than 60 kinds of liquor, and drinks can be mixed and poured into a 12-ounce plastic cup within 70 seconds.”

    Armeni stressed that the robots are meant to be a novelty, and that he believes Technology that carries out human jobs ultimately won’t replace human servers.

    “We have a human bar on the side, and the robotic bar is mostly an attraction and entertainment,” Armeni said, “It’s no different from the fountains at Bellagio and the Welcome to Fabulous Las Vegas sign.”

    However, if the robots’ performance lives up to the description provided by the Sun – well, let’s just say that bartenders who were hoping to make a good living in Sin City might want to consider a move.

    “Ice, lemon, limes and sugars are stored behind the wall of the robots. Juices, sodas and liquors are housed above them.

     

    Aside from perfect pours every time, Armeni said the robots don’t spill and don’t waste any ingredients.

     

    “They work to perfection, so everything the robots make is perfect,” he said.

    Tipsy Robot’s location at the entrance of the Miracle Mile Shops on Las Vegas Boulevard was chosen because of its heavy foot traffic, Armeni said.

    “We wanted to find a place where there was a lot of people coming through,” Armeni said. “At this location, there is an average of 24,000 people coming through a day, so that was what sold it to us.”

    In addition to the robots, the bar will employ 16 humans, including what Armeni calls “Galactica Ambassadors,” women dressed in space-themed metallic silver dresses – they’re basically a squad of hostesses. Technicians are also on hand to tend to the machines should problems arise.

    The techs also ensure the robot's self-cleaning system is working properly because unlike bartenders and other servers – whose hygiene habits are largely a matter of trust – these robots automatically clean their robot “hands” between each drink.

    Now, if two robots, whose only associated costs are the initial investment, maintainence costs, and the electricity required to operate them, can perform the exact same job as a human server, ask yourself: How could anybody justifying being paid $15 an hour to perform the same job – but not as well – as an oversized electric back-massager hooked up to an iPad?
     

  • Researchers Discover That Social Media Can Be Used To Predict Riots, Revolutions, And Even The Weather

    Authored by Mac Slavo via SHTFplan.com,

    Most of us don’t give much thought to what we post on social media, and a lot of what we see on social media is pretty innocuous. However, it only seems that way at first glance. The truth is that what we post online has a frightening potential. According to recent research from the Pacific Northwest National Laboratory and the University of Washington, the things we post on social media could be utilized by software to predict future events.

    In a paper that’s just been published on Arxiv, the team of researchers found that social media can be used to “detect and predict offline events”.

     

    Twitter analysis can accurately predict civil unrest, for instance, because people use certain hashtags to discuss issues online before their anger bubbles over into the real world.

     

    The most famous example of this came during the Arab Spring, when clear signs of the impending protests and unrest were found on social networks days before people took to the streets.

     

    A system called EMBERS (Early Model Based Event Recognition using Surrogates) has also yielded “impressive results” not just in “detecting events, but in detecting specific properties of those events”.

     

    It has been used to predict unrest in South America, forecasting events with 80 per cent accuracy in Brazil and a slightly underwhelming 50 per cent in Venezuela.

     

    Another study showed “impressive” results in detecting “civil unrest” linked to the Black Lives Matter group, which formed in America in response to police shootings.

    And that’s not all. The researchers found that social media posts could be used to predict the weather, disease outbreaks, future crimes, and the mental health of individual social media users.

    So we should probably ask ourselves, is the government using this kind of technology? Because the vast troves of personal data that is collected by the NSA every day could be used to make very accurate predictions. It’s one thing to plug publicly available social media posts into predictive software, but the government has access to all of our personal emails, phone calls, search histories, and even our online purchases.

    When you combine that data with social media posts, you can make a very sophisticated profile of any individual, because you know what kind of persona they’re trying to project in public, and you know who they really are on the inside. And if you have access to internet histories from hundreds of millions of people, as well as advanced supercomputers, there’s no telling what you could predict.

    Make no mistake, this isn’t science-fiction. There are private companies working for the government right now who are creating powerful computer forecasting programs.

    It is called the “Sentient World Simulation.” The program’s aim, according to its creator, is to be a “continuously running, continually updated mirror model of the real world that can be used to predict and evaluate future events and courses of action.” In practical terms that equates to a computer simulation of the planet complete with billions of “nodes” representing every person on the earth.

     

    The project is based out of Purdue University in Indiana at the Synthetic Environment for Analysis and Simulations Laboaratory. It is led by Alok Chaturvedi, who in addition to heading up the Purdue lab also makes the project commercially available via his private company, Simulex, Inc. which boasts an array of government clients, including the Department of Defense and the Department of Justice, as well as private sector clients like Eli Lilly and Lockheed Martin.

     

    Chatruvedi’s ambition is to create reliable forecasts of future world events based on imagined scenarios. In order to do this, the simulations “gobble up breaking news, census data, economic indicators, and climactic events in the real world, along with proprietary information such as military intelligence.”

     

    Although not explicitly stated, the very type of data on digital communications and transactions now being gobbled up by the NSA, DHS and other government agencies make ideal data for creating reliable models of every individuals’ habits, preferences and behaviors that could be used to fine-tune these simulations and give more reliable results…

    If anything, that may be the real purpose of the NSA. When you think about it, it makes a lot more sense than what the government claims this technology is used for, which is to stop terrorism. Are they really spending billions of dollars on a massive surveillance grid just to stop a handful of terrorist attacks? Or are they really trying to predict major global events?

  • Scientists Fear "Supervolcano" Eruption As Earthquake Swarm Near Yellowstone Soars To 800

    More than 800 earthquakes have now been recorded at the Yellowstone Caldera, a long-dormant supervolcano located in Yellowstone National Park, over the last two weeks – an ominous sign that a potentially catastrophic eruption could be brewing. However, despite earthquakes occurring at a frequency unseen during any period in the past five years, the US Geological Survey says the risk level remains in the “green,” unchanged from its normal levels, according to Newsweek.

    The biggest earthquake in this “swarm” – which registered a magnitude of 4.4 – took place on June 15, three days after the rumblings started. That quake was the biggest in the region since a magnitude 4.8 earthquake struck close to Norris Geyser Basin in March 2014. This magnitude 4.4 earthquake was so powerful that people felt it in Bozman Montana, about eight miles away.

    A scientist from the University of Utah said the quakes have also included five in the magnitude three range, and 68 in the magnitude two range.

    “The swarm consists of one earthquake in the magnitude 4 range, five earthquakes in the magnitude 3 range, 68 earthquakes in the magnitude 2 range, 277 earthquakes in the magnitude 1 range, 508 earthquakes in the magnitude 0 range, and 19 earthquakes with magnitudes of less than zero,” the latest report said.

    An earthquake with a magnitude less than zero is a very small event that can only be detected with the extremely sensitive instruments used in earthquake monitoring.”

    The 'Sunset Lake' hot spring in Yellowstone National Park.

    There is normally a rise in seismic activity before a volcano erupts. And scientists currently believe there’s a 10% chance that a “supervolcanic Category 7 eruption” could take place this century, as pointed out by theoretical physicist Michio Kaku.

    An eruption, Kaku said, is long overdue: The last one occurred 640,000 years ago.

    To be sure, the swarm has slowed down considerably this week, and larger swarms have been recorded in the past, according to Jacob Lowenstern, the scientists in charge of the Yellowstone Volcano Observatory.

    Yet the possibility that the volcano could be on the verge of what’s called a “supereruption” should be enough to give the government pause. But scientists have said recently that there’s some evidence to suggest the next one could occur this century.

    "Grand Prismatic" Hot Spring at Yellowstone.

    So how would a supervolcanic eruption at Yellowstone impact the regional ecosystem, and the US more broadly? Well, as Liberty Blog’s Michael Snyder points out, it would be nothing short of catastrophic.

    Hundreds of cubic miles of ash, rock and lava would be blasted into the atmosphere, and this would likely plunge much of the northern hemisphere into several days of complete darkness. Virtually everything within 100 miles of Yellowstone would be immediately killed, but a much more cruel fate would befall those living in major cities outside of the immediate blast zone such as Salt Lake City and Denver.

    Hot volcanic ash, rock and dust would rain down on those cities literally for weeks. In the end, it would be extremely difficult for anyone living in those communities to survive. In fact, it has been estimated that 90 percent of all people living within 600 miles of Yellowstone would be killed.

    Experts project that such an eruption would dump a layer of volcanic ash that is at least 10 feet deep up to 1,000 miles away, and approximately two-thirds of the United States would suddenly become uninhabitable. The volcanic ash would severely contaminate most of our water supplies, and growing food in the middle of the country would become next to impossible.

    In other words, it would be the end of our country as we know it today.

    The rest of the planet, and this would especially be true for the northern hemisphere, would experience what is known as a “nuclear winter”. An extreme period of “global cooling” would take place, and temperatures around the world would fall by up to 20 degrees. Crops would fail all over the planet, and severe famine would sweep the globe.

    In the end, billions could die.

    So yes, this is a threat that we should take seriously.

  • The Federal Reserve Is A Saboteur – And The "Experts" Are Oblivious

    Authored by Brandon Smith via Alt-Market.com,

    I have written on the subject of the Federal Reserve's deliberate sabotage of the U.S. economy many times in the past. In fact, I even once referred to the Fed as an "economic suicide bomber." I still believe the label fits perfectly, and the Fed's recent actions I think directly confirm my accusations.

    Back in 2015, when I predicted that the central bankers would shift gears dramatically into a program of consistent interest rate hikes and that they would begin cutting off stimulus to the U.S. financial sector and more specifically stock markets, almost no one wanted to hear it. The crowd-think at that time was that the Fed would inevitably move to negative interest rates, and that raising rates was simply "impossible."

    Many analysts, even in the liberty movement, quickly adopted this theory without question. Why? Because of a core assumption that is simply false; the assumption that the Federal Reserve's goal is to maintain the U.S. economy at all costs or at least maintain the illusion that the economy is stable. They assume that the U.S. economy is indispensable to the globalists and that the U.S. dollar is an unassailable tool in their arsenal. Therefore, the Fed would never deliberately undermine the American fiscal structure because without it "they lose their golden goose."

    This is, of course, foolish nonsense.

    Since its initial inception from 1913-1916, the Federal Reserve has been responsible for the loss of 98% of the dollar's buying power. Idiot analysts in the mainstream argue that this statistic is not as bad as it seems because "people have been collecting interest" on their cash while the dollar's value has been dropping, and this somehow negates or outweighs any losses in purchasing power. These guys are so dumb they don't even realize the underlying black hole in their own argument.

    IF someone put their savings into an account or into treasury bonds and earned interest from the moment the Fed began quickly undermining dollar value way back in 1959, then yes, they MIGHT have offset the loss by collecting interest. However, this argument, insanely, forgets to take into account the many millions of people who were born long after the Fed began its devaluation program. What about the "savers" born in 1980, or 1990? They didn't have the opportunity to collect interest to offset the losses already created by the Fed. They were born into an economy where saving is inherently more difficult because a person must work much harder to save the same amount of capital that their parents saved, not to mention purchase the same items their parents enjoyed, such as a home or a car.

    Over the decades, the Fed has made it nearly impossible for households with one wage earner to support a family. Today, men and women who should be in the prime of their careers and starting families are for the first time in 130 years more likely to be living at home with their parents than any other living arrangement.

    People are more likely to be living with their parents now than back during time periods in which young people actually wanted to stay close to their parents to take care of them. That is to say, most young people are stuck at home because they can't afford to do anything else, not because they necessarily want to be there.

    This is almost entirely a symptom of central bank devaluation of the currency and its purchasing potential. The degradation of the American wage earner since the Fed fiat machine began killing the greenback is clear as day.

    The Fed is also responsible for almost every single major economic downturn since it was established. As I have noted in the past, Ben Bernanke openly admitted that the Fed was the root cause of the prolonged economic carnage during the Great Depression on Nov. 8, 2002, in a speech given at "A Conference to Honor Milton Friedman … On the Occasion of His 90th Birthday:"

    "In short, according to Friedman and Schwartz, because of institutional changes and misguided doctrines, the banking panics of the Great Contraction were much more severe and widespread than would have normally occurred during a downturn.

     

    Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."

    Bernanke is referring in part to the Fed's program of raising interest rates into an economic downturn, exacerbating the situation in the early 1930's and making the system highly unstable. He lies and says the Fed "won't do it again;" they are doing it RIGHT NOW.

    The Fed was the core instigator behind the credit and derivatives bubble that led to the crash in 2008, a crash that has caused depression-like conditions in America that we are still to this day dealing with. Through artificially low interest rates and in partnership with sectors of government, poor lending standards were highly incentivised and a massive debt trap was created. Former Fed chairman Alan Greenspan publicly admitted in an interview that the central bank KNEW an irrational bubble had formed, but claims they assumed the negative factors would "wash out."

    Yet again, a Fed chairman admits that they either knew about or caused a major financial crisis. So we are left two possible conclusions — they were too stupid to speak up and intervene, or, they wanted these disasters to occur.

    Today, we are faced with two more brewing bubble catastrophes engineered by the Fed: The stock market bubble and the dollar/treasury bond bubble.

    The stock market bubble is rather obvious and openly admitted at this point. As the former head of the Federal Reserve Dallas branch, Richard Fisher, admitted in an interview with CNBC, the U.S. central bank in particular has made its business the manipulation of the stock market to the upside since 2009:

    "What the Fed did — and I was part of that group — is we front-loaded a tremendous market rally, starting in 2009.

     

    It's sort of what I call the "reverse Whimpy factor" — give me two hamburgers today for one tomorrow."

    Fisher went on to hint at his very reserved view of the impending danger:

    "I was warning my colleagues, Don't go wobbly if we have a 10 to 20 percent correction at some point… Everybody you talk to… has been warning that these markets are heavily priced." [In reference to interest rate hikes]

    The Fed "front-loaded" the incredible bull market rally through various methods, but one of the key tools was the use of near-zero interest rate overnight loans from the central bank, which corporations around the world have been exploiting since the 2008 crash to fund stock buybacks and pump up the value of stock markets. As noted by Edward Swanson, author of a study from Texas A&M on stock buybacks used to offset poor fundamentals:

    "We can't say for sure what would have happened without the repurchase, but it really looks like the stock would have kept going down because of the decline in fundamentals… these repurchases seem to hold up the stock price."

    In the initial TARP audit, an audit that was limited and never again duplicated, it was revealed that corporations had absorbed trillions in overnight loans from the Fed. It was at this time that stock buybacks became the go-to method to artificially prop up equities values.

    The problem is, just like they did at the start of the Great Depression, the central bank is once again raising interest rates into a declining economy. This means that all those no-cost loans used by corporations to buy back their own stocks are now going to have a price tag attached. An interest rate of 1% might not seem like much to someone who borrows $1000, but what about for someone who borrows $1 Trillion? Yes, borrowing at ANY interest rate becomes impossible when you need that much capital to prop up your stock. The loans have to be free, otherwise, there will be no loans.

    Thus, we have to ask ourselves another question; is the Fed really ignorant enough to NOT know that raising rates will kill stock markets? They openly admit that they knew what they were doing when they inflated stock markets, so it seems to me that they would know how to deflate stock markets. Therefore, if they deliberately engineered the market rally with low interest rates, it follows that they are deliberately engineering a crash in markets using higher interest rates.

    Mainstream economists and investment "experts" appear rather bewildered by the Federal Reserve's exuberance on rate hikes.  Many assumed that Janet Yellen would hint at a pullback from the hike schedule due to the considerable level of negative data on our fiscal structure released over the past six months.  Yellen has done the opposite.  In fact, Fed officials are now stating that equities and other assets appear to be "overvalued" and that markets have become complacent.  This is a major reversal from the central bank's attitude just two years ago.  The fundamental data has always been negative ever since the credit crisis began.  So what has really changed?

    Well, Donald Trump, the sacrificial scapegoat, is now in the White House, and, central bank stimulus has a shelf life.  They can't prop up equities for much longer even if they wanted to.  The fundamentals will always catch up with the fiat illusion.  No nation in history has ever been able to print its way to prosperity or even recovery.  The time is now for the Fed to pull the plug and lay blame in the lap of their mortal enemy – conservatives and sovereignty champions.  They will ignore all financial reality and continue to hike.  This is a guarantee.

    In the Liberty Movement the major misconception is that the Fed is attempting to "catch up" to the next crash by raising interest rates so that they will be ready to stimulate again.  There is no catching up to this situation.  The Fed has no interest in saving stock markets or the economy.  Again, the fed has raised rates before into fiscal decline (during the Great Depression), and the result was a prolonged crisis.  They know exactly what they are doing.

    What does the Fed gain from this sabotage? Total centralization. For example, before the Great Depression there used to be thousands of smaller private and localized banks in America. After the Great Depression most of those banks were either destroyed or absorbed by elite banking conglomerates. Banking in the U.S. immediately became a fully centralized monopoly by the majors. In a decade, they were able to remove all local competition and redundancy, making communities utterly beholden to their credit system.

    The 2008 crash allowed the banking elites to introduce vast stimulus measures requiring unaccountable fiat money creation. Rather than saving America from crisis, they have expanded the crisis to the point that it will soon threaten the world reserve status of our currency. The Fed in particular has set the U.S. up not just for a financial depression, but for a full spectrum calamity which will include a considerable devaluation (yet again) of our currency's value and resulting in extreme price inflation in necessities.

    The next phase of this collapse will include the end of the dollar as we know it, making way for a new global currency system that uses the IMF's SDR basket as a foundation. This plan is openly admitted in the elitist run magazine 'The Economist' in an article entitled "Get Ready For A Global Currency By 2018."

    It is important to understand what the Fed actually is – the Fed is a weapon. It is a weapon used by globalists to destroy the American system at a given point in time in order to clear the way for a new single world economy controlled by a single managerial entity (most likely the IMF or BIS). This is the Fed's purpose. The central bank is not here to save the U.S. from harm, it is here to make sure the U.S. falls in a particular manner — a controlled demolition of our fiscal structure.

  • Project Veritas Exposes CNN's Van Jones: "The Russia Thing Is Just A Big Nothing Burger"

    Yesterday, after dropping his first undercover CNN bombshell, which starred producer John Bonifield admitting that CNN’s endless ‘Russian meddling’ crusade was “mostly bullshit” directed by the network’s CEO Jeff Zucker with the sole intent of spiking ratings, Project Veritas‘ James O’Keefe promised there was more to come.  And, all we knew was that the subject of the second video would be “someone we all knew…”

    As it turns out, that ‘someone’ is none other than CNN’s Van Jones who inadvertently got caught revealing his true thoughts on CNN’s ‘Russian meddling’ narrative, namely that the whole story is a “big nothing burger.”

    PV Reporter:  “What do you think is going to happen this week with the whole Russia thing?”

     

    Van Jones:  “The Russia Thing Is Just A Big Nothing Burger”

     

    PV Reporter:  “Really?”

     

    Van Jones:  “Yeah.”

    Here is the full Van Jones footage for your viewing pleasure:

     

    Of course, while we’re happy that Van Jones decided to tell the truth, if only while he thought no one was listening, we do wonder how he intends to explain his seemingly conflicted ‘on-air’ versus ‘off-air’ personalities to his children.  As you may recall, Jones was the same distraught CNN commentator who spent election night describing Trump as a “bully” and a “bigot” all while saying that his “biggest fear” was how he could explain Trump’s victory to his children…

    Perhaps it’s time to think about how you can explain to your children why you exploited your position and fame to provoke mass hysteria among a divided American electorate, over a story you knew to be false…hysteria which very well could have contributed to a mass shooting that nearly claimed the life of Steven Scalise.

    (h/t HH)

     

    Finally, here is yesterday’s video for those who missed it:

  • "Fake Research": Seattle Mayor Knew Critical Min. Wage Study Was Coming, So He Called Berkeley 'Economists'

    Earlier this week we wrote about a study published by the University of Washington which was fairly damning for Seattle’s $15 minimum wage.  To our total ‘shock’, the study found that higher minimum wages caused a 9.4% reduction to total hours worked by low-skilled workers, or roughly 14 million hours per year.  Given that a full-time employee works 2,080 hours per year, that’s the equal to just over 6,700 full-time equivalents who have lost their jobs, just in the city of Seattle, courtesy of moronic politicians who don’t seem to grasp basic mathematical concepts (see the full note here: Seattle Min Wage Hikes Crushing The Poor: 6,700 Jobs Lost, Annual Wages Down $1,500 – UofW Study).

    As it turns out, however, the bigger story might be why the Mayor of Seattle decided to waste taxpayer money commissioning a competing study from the University of California, Berkeley…especially in light of the fact that the University of Washington study was already paid for by taxpayers and researchers on the project were granted far greater access to data. 

    Hmm, might it have something to do with the fact that Seattle’s mayor knew that Berkeley’s liberal economists would manipulate data in whatever way necessary to paint a rosy picture for higher minimum wages?  That’s a rhetorical question…

    As the Seattle Weekly noted, the controversy started when a Forbes blogger discovered a curious sentence in the minimum wage study released by Berkeley a couple of weeks ago, days before the University of Washington study was published.

    The sentence got him wondering why the “Office of the Mayor of Seattle” would commission a study when taxpayers of his city were already funding a study on the exact same thing?

    Could it be the fact that Berkeley’s Michael Reich was well known to be the “go-to academic for proponents of a $15-an-hour minimum wage” who “has done at least six … studies on the minimum wage in California municipalities, all showing that a wage increase would be beneficial.”

    So the Forbes blogger reached out to the Mayor’s office for clarification…

    Last week, I reached out to Benton Strong, the mayor’s spokesman, to ask why the city was requesting research already covered by the UW team.

     

    He responded to say that “the upcoming UW study is not part of the work funded by the City. Michael Reich is a well-known economist who had done extensive work on policies like the minimum wage and the City asked him to review early drafts of the UW report, specifically the methodology, and provide analysis. Yesterday, he also provided analysis of the impacts of the minimum wage in Seattle.”

     

    At the time, I wasn’t aware of what upcoming UW study he was talking about, and asked for clarification, to which Strong said: “There’s apparently one coming next week.”

     

    And so there was.

     

    To review, the timeline seems to have gone like this: The UW shares with City Hall an early draft of its study showing the minimum wage law is hurting the workers it was meant to help; the mayor’s office shares the study with researchers known to be sympathetic toward minimum wage laws, asking for feedback; those researchers release a report that’s high on Seattle’s minimum wage law just a week before the negative report comes out.

    In other words, the Mayor of Seattle used taxpayer funds to commission a duplicative, “fake study” from a clearly sympathetic, biased economist, at a liberal university, all in an effort to mislead voters about the real effects of his disastrous minimum wage policy.

    Of course, we’re sure Donna Brazile would classify this as just another attempt to “criminalize behavior that is normal”

  • "Central Bankers Aren't As Clever (And We're Not As Dumb) As They Believe"

    Authored by Jeffrey Snider via Alhambra Investment Partners,

    To complete a trifecta, maybe someone could interview Alan Greenspan about rational exuberance.

    The last of the latest Fed Chairmen, Janet Yellen, purports this week that the next financial crisis will not be in “our lifetimes.” The issue, however, isn’t even crisis so much as credibility. Given that she and the rest of them had no idea about the last one until it was almost over, we might be forgiven for rejecting her thesis outright – and it having nothing at all to do with the current or expected future state of finance. She is nearly the last person that should be speaking on that topic.

    The very last opinion that should be solicited would be from her immediate predecessor, Ben Bernanke. He was busy just yesterday doing what he does, meaning polishing up as best he can his legacy. Speaking on invitation to an ECB conference in Sintra, Portugal, the same where Mario Draghi caused his “reflation” stir, the former Federal Reserve head gave a speech he modestly titled When Growth Is Not Enough.

    It is typical Bernanke, who has taken to these kinds of tricks in order to justify the apex of his career. For him it was a top; for the rest of the world not at all. The last thing anyone associates with Bernanke is growth. His speech would have more appropriately been called When Not Enough Growth.

    During his tenure he was clearly bipartisan, or at least largely free of partisanship. In 2017, he is not. His general purpose in appearing was to acknowledge, like many economists are being forced to, the great dissatisfaction around the world with the results of largely his exertions. Before last year, economists could plausibly claim things were OK if not great, but after Brexit and especially Trump it is no longer possible to live that deep in denial.

    It is to the current President that Bernanke clearly feels his reputation most threatened, describing yesterday the stunning political revolt as, “last November Americans elected president a candidate with a dystopian view of the economy.” In doing so, he betrays his own true motivations. Ben Bernanke’s legacy, even more so than Barack Obama’s, is Donald Trump.

    In particular, Americans generally have little confidence in the ability of government, especially the federal government, to fairly represent their interests, let alone solve their problems. In a recent poll, only 20 percent of Americans said they trusted the government in Washington to do what is right “just about always” or “most of the time”. The failure to prevent the global financial crisis did not help this situation of course, but these attitudes are long-standing, going back at least to the 1970s. [emphasis added]

    The highlighted portion wasn’t some trivial footnote, a small matter among larger ones. It was everything, especially for the Federal Reserve who before the crisis declared that what Janet Yellen says right now. For an institution claiming to be the height of economic competence and authority, the Panic of 2008 was all that mattered.

    But if that was the only fault with the so-called establishment elite, it would still be enough to register as it finally has with the public. The tragic comedy did not end there, however, and Bernanke knows it well. He asserts again in this latest speech something he referred to in a little-noticed blog post (for Brookings) from last October.

    Economists Charles Jones and Peter Klenow had at that time published a paper the former Fed Chair immediately seized upon. They proposed that things like GDP or nation income figures weren’t comprehensive measures of social advance. Jones and Klenow created an “economic welfare” statistic that incorporated intangibles like vacation time, life expectancy, and inequality.

    Bernanke is a very smart guy, but he isn’t as clever as he may think of himself. If you claim to be running an economy and it doesn’t produce in all the traditional ways of output and income, then suddenly saying those aren’t the appropriate standards is as transparent as it gets. It’s not quite convincing given his own public history to in 2017 try to say “it wasn’t all bad.” Methinks the money printer doth protest too much.

    And that is really the point.

    Quantitative easing was designed and sold to the public as the right amount of the right program to get the economy back going again after what was a catastrophic error. To long after its conclusion suggest that maybe GDP or national income estimates aren’t good enough standards for measuring and then appropriately crafting a response is to totally undercut that thesis; it was the correlation with GDP that led to the Q part of QE. Moving the goalpost only proves that QE wasn’t what you thought it was.

    If you have to refashion standards to suggest why you maybe could have possibly not performed so badly, then maybe you really did and maybe most people by now know it. And to further think along just those lines, perhaps the election of Trump isn’t so extreme as it might first seem to the delicate orthodox sensibilities of the perpetually slow and ignorant. Maybe it doesn’t leave us in economic dystopia, but that is at least the direction we might have been traveling all this time you called it a recovery.

    What’s even more illuminating is the lack of mention of the Great “Moderation.” It has been almost excised from official history.

    The period where central bankers created forever new plateaus of prosperity, winning monetary policymakers especially undying admiration and too frequently cultish status has been completely transformed into outright mistrust; so deep it has infected, as Bernanke’s speech concedes, all levels of government and establishment. Yellen is left nearly the undisputed anti-maestro. Only now do people like Bernanke admit there might be reasons.

    Bernanke once said (2004) that the Great “Moderation” was indeed the work of monetary policy, so its years later omission is all the more telling. At least then economic pronouncements matched outward economic conditions. No one was compelled to challenge the unemployment rate, or recognize the mainstream clinging to it was out of clear and growing desperation rather than scientific analysis. They really didn’t know what they were doing, and now they worry too many people might have figured that out.

    It is another small (emphasis on small) step in the right direction. Economists like Bernanke are feeling very uncomfortable, as they should. They have much to answer for and for the first time in ten years are feeling enough pressure to start doing so. That the first round leads them to different but still nonsense is to be expected. As I wrote above, they aren’t as clever as they might think, and you not as dumb as they believe – or used to.

  • Rolls Royce Now Sells More Of Its Cars To "New Money" Tech Millionaires

    Auto manufacturers have been bracing for a slump in car sales in the coming years as ownership rates for younger generations are expected to slump. Their reasoning? Millennials and their ilk tend to favor experiences over luxury goods, while also tending to cluster in urban settings where public transportation is easily accessible.

    But there might be some hope – at least in the high-end market,  which is increasingly catering to a newly-minted cohort of millionaires who made their money in tech and finance. To wit, Rolls Royce has revealed that the average age of its customer base is declining, having fallen to 45, compared with 56 seven years ago.

    That’s lower than the average range for new-car buyers overall, which hovers around 52, and younger than the average age of luxury car buyers, too, which is 50, according to data provided to Bloomberg by Kelley Blue Book.

    The Wraith coupe

    The average age of Rolls Royce owners is below Buick, Cadillac, Mercedes-Benz and BMW.

    “Buick, for instance, has an average new-buyer age of 59. At Cadillac it’s 52, at Mercedes-Benz it’s 51, and at BMW it’s 50, according to KBB. Land Rover’s average customer is 45, the youngest of any included in the data. (Rolls-Royce was not among the brands reviewed in that report—its numbers are internal.) Bentley, a closer competitor to Rolls-Royce, reported an average buyer age of 56.2 years in 2014, though that number is likely younger now.”

    Indeed, it appears the 111-year-old brand, which is known for its stuffy old-money aesthetic, is attracting a new generation of customers among the next generation of tech and finance elites. The company’s CEO Torsten Müller-Ötvös, has touted the decline as a sign that the luxury carmaker is succeeding in its push to attract younger drivers with newer, more modern-looking cars.

    The Phantom

    “We are now catering all to the different kinds of set groups when it comes to customers,” Müller-Ötvös said. “These are customers who for the first time said, ‘Oh, guess what. I like this Wraith, and I put it in addition to my Ferraris into my garage, because Ferraris can be stressful from time to time.’ ”

    As is the case with all luxury items, remaining "cool" is essential to a brands survival – hence why Royce felt the need to shout news that it's selling to younger buyers from the mountaintops.

    “Why does attracting a young(ish) buyer pool matter? For one thing, it prevents against the hypothetical eventuality that your customers eventually die off. Older buyers tend to be loyal buyers, but as they age, their numbers naturally dwindle.

     

    More immediately, it has to do with brand image. If pensioners are the ones driving your cars, the rest of the world inevitably associates the brand with their age set. That doesn’t exactly foster future buying excitement.”

    In another interesting shift, the new buyers that Rolls Royce is courting have a somewhat different profile.

    CEO Torsten Müller-Ötvös

    The reason for the relative youth of Rolls buyers has to do with how they’re amassing their wealth, Müller-Ötvös said. Rather than in previous decades when acquiring it from Daddy was a viable, and respectable, option, he’s noticing the people turning up at his dealerships are self-made.

     

    “It's not any longer inherited money,” he said. “The majority is all self-generated money in very young people who are already making fortunes, be it real estate, be it engineering, be it IT, be it Western entertainment, whatever.”

    As Bloomberg explains, the declining average age of Rolls Royce buyers seems to cut against the conventional wisdom – but not the masses of data that show young people still buy cars at rates comparable to older cohorts of the population.

    Experts have warily anticipated in recent years an expected slump in car sales as millennials begin to overtake baby boomers in the marketplace as the world’s biggest spenders. The theory was that they cared less about owning things—houses, property, cars—than in just being able to access them at any given time. The success of shared-access businesses Uber, Airbnb, and Rent the Runway, plus the rise in the development of self-driving cars and other forms of urban transportation in any number of various pods, seemed to support that idea.

     

    But further studies have indicated the contrary. According to J.D. Power & Associates, millennials’ share of new vehicle purchases in the U.S. hit 27 percent in 2014, up from 18 percent in 2010. They’ll comprise 40 percent of the U.S. car market by 2020. (The report classified millennials as those born between 1977 and 1994.)

    The age of luxury-car owners is declining in China, too, despite a crackdown on corruption initiated by Chinese President Xi Jinping that included measures to curb the acceptance of luxury gifts – which sometimes included fancy cars – by public officials.

    “In China, the average age of new-car buyers hovers around 34. Thirty-eight percent of all new luxury car buyers there are under 40. Last year, Cadillac boasted widely about its 34-year-old average buyers in China.”

    Despite the crackdown, the unprecedented debt-enhanced creation of wealth in the world's second-largest economy appears to ensure that Rolls Royce's future is in the east.
     

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Today’s News 28th June 2017

  • Mapping The World's 20 Most Populous Cities By 2100

    If you look at a modern map of the world’s most populous cities, you’ll notice that they are quite evenly distributed around the globe.

    Metropolises like Moscow, New York, Tokyo, Cairo, or Rio de Janeiro are spread apart with very different geographic and cultural settings, and practically every continent today can claim at least one of the world’s 20 most populous cities.

    However, as Visual Capitalist's Jeff Desjardins notes, in the future, things will be very different, according to projections from the Global Cities Institute. In fact, over the next 80 years or so, some cities will literally 10x or 20x in size – turning into giant megacities that have comparable populations to entire countries like modern-day Germany, France, or the United Kingdom.

    The most interesting part? None of these cities will be in the Americas, Europe, China, or Australia.

    Source: Visual Capitalist

    The Top Four Megacities of the Future

    According to predictions from the Global Cities Institute, these will be the biggest cities in the world in 2100:

    Lagos

    Lagos is already one of the biggest metropolises in Africa, and we previously noted that it was one of the fastest growing cities in the world.

    In fact, it’s growing so fast, that no one knows how big it actually is. The U.N estimated it had 11.2 million people in 2011, and the year after The New York Times said it had at least 21 million inhabitants. In any case, this Nigerian metropolis is growing like a weed, and the Global Cities Institute estimates that the city’s population will hit the 88.3 million mark by 2100 to make it the biggest city in the world.

    The city is already a center of West African trade and finance – but Lagos has ambitious plans to up the ante even further. Right now, the city is building Eko Atlantic, a massive new residential and commercial development that is being pitched as the “Manhattan of Nigeria”. It’s just off of Victoria Island, and it is being built on reclaimed land with special measures in place to prevent flooding from global warming.

    Kinshasa

    When people think of the DRC, sprawling metropolises generally aren’t the first things that come to mind.

    But Kinshasa, once the site of humble fishing villages, has already likely passed Paris as the largest French-speaking city in the world. And it’s getting bigger – by 2100, it’s projected to be the world’s second largest city overall.

    How Kinshasa develops will certainly be interesting. As it stands, approximately 60% of the 17 million people living there by 2025 will be younger than 18 years old. How the city deals with education will be paramount to the city’s future progression.

    Dar Es Salaam

    Have you heard of Dar Es Salaam, the Tanzanian megacity that will hold 73.7 million inhabitants in 2100?

    It’s not on a lot of people’s radars, but its population will explode 1,588% to become the third largest city in Africa, and in the world.

    Interestingly, East Africa will be home to many of the world’s biggest cities in the future – and many will be seemingly popping up out of nowhere. Consider Blantyre City, Lilongwe, and Lusaka, for example. Most Westerners will not likely have heard of these places, but these centers in Malawi and Zambia will each hold over 35 million people.

    Mumbai

    Finally, the last city to round out the top four is Mumbai, which is already one of the world’s biggest megacities with over 20 million people.

    As the entertainment capital of India, it will be interesting to see how Mumbai evolves – and how it ends up comparing to other Indian megacities like Delhi and Kolkata, which each will hold over 50 million residents themselves.

  • How America Armed Terrorists In Syria

    Authored by Gareth Porter via TheAmericanConservative.com,

    Three-term Congresswoman Tulsi Gabbard of Hawaii, a member of both the Armed Services and Foreign Affairs committees, has proposed legislation that would prohibit any U.S. assistance to terrorist organizations in Syria as well as to any organization working directly with them. Equally important, it would prohibit U.S. military sales and other forms of military cooperation with other countries that provide arms or financing to those terrorists and their collaborators.

    Gabbard’s “Stop Arming Terrorists Act” challenges for the first time in Congress a U.S. policy toward the conflict in the Syrian civil war that should have set off alarm bells long ago: in 2012-13 the Obama administration helped its Sunni allies Turkey, Saudi Arabia, and Qatar provide arms to Syrian and non-Syrian armed groups to force President Bashar al-Assad out of power. And in 2013 the administration began to provide arms to what the CIA judged to be “relatively moderate” anti-Assad groups—meaning they incorporated various degrees of Islamic extremism.

    That policy, ostensibly aimed at helping replace the Assad regime with a more democratic alternative, has actually helped build up al Qaeda’s Syrian franchise al Nusra Front into the dominant threat to Assad.

    The supporters of this arms-supply policy believe it is necessary as pushback against Iranian influence in Syria. But that argument skirts the real issue raised by the policy’s history.  The Obama administration’s Syria policy effectively sold out the U.S. interest that was supposed to be the touchstone of the “Global War on Terrorism”—the eradication of al Qaeda and its terrorist affiliates. The United States has instead subordinated that U.S. interest in counter-terrorism to the interests of its Sunni allies. In doing so it has helped create a new terrorist threat in the heart of the Middle East.  

    The policy of arming military groups committed to overthrowing the government of President Bashar al-Assad began in September 2011, when President Barack Obama was pressed by his Sunni allies—Turkey, Saudi Arabia and Qatar—to supply heavy weapons to a military opposition to Assad they were determined to establish. Turkey and the Gulf regimes wanted the United States to provide anti-tank and anti-aircraft weapons to the rebels, according to a former Obama Administration official involved in Middle East issues.

    Obama refused to provide arms to the opposition, but he agreed to provide covert U.S. logistical help in carrying out a campaign of military assistance to arm opposition groups. CIA involvement in the arming of anti-Assad forces began with arranging for the shipment of weapons from the stocks of the Gaddafi regime that had been stored in Benghazi. CIA-controlled firms shipped the weapons from the military port of Benghazi to two small ports in Syria using former U.S. military personnel to manage the logistics, as investigative reporter Sy Hersh detailed in 2014. The funding for the program came mainly from the Saudis.

    A declassified October 2012 Defense Intelligence Agency report revealed that the shipment in late August 2012 had included 500 sniper rifles, 100 RPG (rocket propelled grenade launchers) along with 300 RPG rounds and 400 howitzers. Each arms shipment encompassed as many as ten shipping containers, it reported, each of which held about 48,000 pounds of cargo. That suggests a total payload of up to 250 tons of weapons per shipment. Even if the CIA had organized only one shipment per month, the arms shipments would have totaled 2,750 tons of arms bound ultimately for Syria from October 2011 through August 2012. More likely it was a multiple of that figure.  

    The CIA’s covert arms shipments from Libya came to an abrupt halt in September 2012 when Libyan militants attacked and burned the embassy annex in Benghazi that had been used to support the operation. By then, however, a much larger channel for arming anti-government forces was opening up. The CIA put the Saudis in touch with a senior Croatian official who had offered to sell large quantities of arms left over from the Balkan Wars of the 1990s. And the CIA helped them shop for weapons from arms dealers and governments in several other former Soviet bloc countries.

    Flush with weapons acquired from both the CIA Libya program and from the Croatians, the Saudis and Qataris dramatically increased the number of flights by military cargo planes to Turkey in December 2012 and continued that intensive pace for the next two and a half months. The New York Times reported a total 160 such flights through mid-March 2013. The most common cargo plane in use in the Gulf, the Ilyushin IL-76, can carry roughly 50 tons of cargo on a flight, which would indicate that as much as 8,000 tons of weapons poured across the Turkish border into Syria just in late 2012 and in 2013.

    One U.S. official called the new level of arms deliveries to Syrian rebels a “cataract of weaponry.” And a year-long investigation by the Balkan Investigative Reporting Network and the Organized Crime and Corruption Reporting Project revealed that the Saudis were intent on building up a powerful conventional army in Syria. The “end-use certificate” for weapons purchased from an arms company in Belgrade, Serbia, in May 2013 includes 500 Soviet-designed PG-7VR rocket launchers that can penetrate even heavily-armored tanks, along with two million rounds; 50 Konkurs anti-tank missile launchers and 500 missiles, 50 anti-aircraft guns mounted on armored vehicles, 10,000 fragmentation rounds for OG-7 rocket launchers capable of piercing heavy body armor; four truck-mounted BM-21 GRAD multiple rocket launchers, each of which fires 40 rockets at a time with a range of 12 to 19 miles, along with 20,000 GRAD rockets.

    The end user document for another Saudi order from the same Serbian company listed 300 tanks, 2,000 RPG launchers, and 16,500 other rocket launchers, one million rounds for ZU-23-2 anti-aircraft guns, and 315 million cartridges for various other guns.

    Those two purchases were only a fraction of the totality of the arms obtained by the Saudis over the next few years from eight Balkan nations. Investigators found that the Saudis made their biggest arms deals with former Soviet bloc states in 2015, and that the weapons included many that had just come off factory production lines. Nearly 40 percent of the arms the Saudis purchased from those countries, moreover, still had not been delivered by early 2017. So the Saudis had already contracted for enough weaponry to keep a large-scale conventional war in Syria going for several more years.

    By far the most consequential single Saudi arms purchase was not from the Balkans, however, but from the United States. It was the December 2013 U.S. sale of 15,000 TOW anti-tank missiles to the Saudis at a cost of about $1 billion—the result of Obama’s decision earlier that year to reverse his ban on lethal assistance to anti-Assad armed groups. The Saudis had agreed, moreover, that those anti-tank missiles would be doled out to Syrian groups only at U.S. discretion. The TOW missiles began to arrive in Syria in 2014 and soon had a major impact on the military balance.

    This flood of weapons into Syria, along with the entry of 20,000 foreign fighters into the country—primarily through Turkey—largely defined the nature of the conflict. These armaments helped make al Qaeda’s Syrian franchise, al Nusra Front (now renamed Tahrir al-Sham or Levant Liberation Organization) and its close allies by far the most powerful anti-Assad forces in Syria—and gave rise to the Islamic State.

    By late 2012, it became clear to U.S. officials that the largest share of the arms that began flowing into Syria early in the year were going to the rapidly growing al Qaeda presence in the country. In October 2012, U.S. officials acknowledged off the record for the first time to the New York Times that  “most” of the arms that had been shipped to armed opposition groups in Syria with U.S. logistical assistance during the previous year had gone to “hardline Islamic jihadists”— obviously meaning al Qaeda’s Syrian franchise, al Nusra.

    Al Nusra Front and its allies became the main recipients of the weapons because the Saudis, Turks, and Qataris wanted the arms to go to the military units that were most successful in attacking government targets. And by the summer of 2012, al Nusra Front, buttressed by the thousands of foreign jihadists pouring into the country across the Turkish border, was already taking the lead in attacks on the Syrian government in coordination with “Free Syrian Army” brigades.

    In November and December 2012, al Nusra Front began establishing formal “joint operations rooms” with those calling themselves “Free Syrian Army” on several battlefronts, as Charles Lister chronicles in his book The Syrian Jihad. One such commander favored by Washington was Col. Abdul Jabbar al-Oqaidi, a former Syrian army officer who headed something called the Aleppo Revolutionary Military Council. Ambassador Robert Ford, who continued to hold that position even after he had been withdrawn from Syria, publicly visited Oqaidi in May 2013 to express U.S. support for him and the FSA.  

    But Oqaidi and his troops were junior partners in a coalition in Aleppo in which al Nusra was by far the strongest element. That reality is clearly reflected in a video in which Oqaidi describes his good relations with officials of the “Islamic State” and is shown joining the main jihadist commander in the Aleppo region celebrating the capture of the Syrian government’s Menagh Air Base in September 2013.

    By early 2013, in fact, the “Free Syrian Army,” which had never actually been a military organization with any troops, had ceased to have any real significance in the Syria conflict. New anti-Assad armed groups had stopped using the name even as a “brand” to identify themselves, as a leading specialist on the conflict observed.

    So, when weapons from Turkey arrived at the various battlefronts, it was understood by all the non-jihadist groups that they would be shared with al Nusra Front and its close allies. A report by McClatchy in early 2013, on a town in north central Syria, showed how the military arrangements between al Nusra and those brigades calling themselves “Free Syrian Army” governed the distribution of weapons. One of those units, the Victory Brigade, had participated in a “joint operations room” with al Qaeda’s most important military ally, Ahrar al Sham, in a successful attack on a strategic town a few weeks earlier. A visiting reporter watched that brigade and Ahrar al Sham show off new sophisticated weapons that included Russian-made RPG27 shoulder-fired rocket-propelled anti-tank grenades and RG6 grenade launchers.

    When asked if the Victory Brigade had shared its new weapons with Ahrar al Sham, the latter’s spokesman responded, “Of course they share their weapons with us. We fight together.”  

    Turkey and Qatar consciously chose al Qaeda and its closest ally, Ahrar al Sham, as the recipients of weapons systems. In late 2013 and early 2014, several truckloads of arms bound for the province of Hatay, just south of the Turkish border, were intercepted by Turkish police. They had Turkish intelligence personnel on board, according to later Turkish police court testimony. The province was controlled by Ahrar al Sham. In fact Turkey soon began to treat Ahrar al Sham as its primary client in Syria, according to Faysal Itani, a senior fellow at the Atlantic Council’s Rafik Hariri Center for the Middle East.

    A Qatari intelligence operative who had been involved in shipping arms to extremist groups in Libya was a key figure in directing the flow of arms from Turkey into Syria. An Arab intelligence source familiar with the discussions among the external suppliers near the Syrian border in Turkey during those years told the Washington Post’s David Ignatius that when one of the participants warned that the outside powers were building up the jihadists while the non-Islamist groups were withering away, the Qatari operative responded, “I will send weapons to al Qaeda if it will help.”

    The Qataris did funnel arms to both al Nusra Front and Ahrar al Sham, according to a Middle Eastern diplomatic source. The Obama administration’s National Security Council staff proposed in 2013 that the United States signal U.S. displeasure with Qatar over its arming of extremists in both Syria and Libya by withdrawing a squadron of fighter planes from the U.S. airbase at al-Udeid, Qatar. The Pentagon vetoed that mild form of pressure, however, to protect its access to its base in Qatar.

    President Obama himself confronted Prime Minister Recep Tayyip Erdogan over his government’s support for the jihadists at a private White House dinner in May 2013, as recounted by Hersh. “We know what you’re doing with the radicals in Syria,” he quotes Obama as saying to Erdogan.

    The administration addressed Turkey’s cooperation with the al Nusra publicly, however, only fleetingly in late 2014. Shortly after leaving Ankara, Francis Ricciardone, the U.S. ambassador to Turkey from 2011 through mid-2014, told The Daily Telegraph  of London that Turkey had “worked with groups, frankly, for a period, including al Nusra.”

    The closest Washington came to a public reprimand of its allies over the arming of terrorists in Syria was when Vice President Joe Biden criticized their role in October 2014. In impromptu remarks at Harvard University’s Kennedy School, Biden complained that “our biggest problem is our allies.”  The forces they had supplied with arms, he said, were “al Nusra and al Qaeda and the extremist elements of jihadis coming from other parts of the world.”  

    Biden quickly apologized for the remarks, explaining that he didn’t mean that U.S. allies had deliberately helped the jihadists. But Ambassador Ford confirmed his complaint, telling BBC, “What Biden said about the allies aggravating the problem of extremism is true.”

    In June 2013 Obama approved the first direct U.S. lethal military aid to rebel brigades that had been vetted by the CIA. By spring 2014, the U.S.-made BGM-71E anti-tank missiles from the 15,000 transferred to the Saudis began to appear in the hands of selected anti-Assad groups. But the CIA imposed the condition that the group receiving them would not cooperate with the al Nusra Front or its allies.

    That condition implied that Washington was supplying military groups that were strong enough to maintain their independence from al Nusra Front. But the groups on the CIA’s list of vetted “relatively moderate” armed groups were all highly vulnerable to takeover by the al Qaeda affiliate. In November 2014, al Nusra Front troops struck the two strongest CIA-supported armed groups, Harakat Hazm and the Syrian Revolutionary Front on successive days and seized their heavy weapons, including both TOW anti-tank missiles and GRAD rockets.  

    In early March 2015, the Harakat Hazm Aleppo branch dissolved itself, and al Nusra Front promptly showed off photos of the TOW missiles and other equipment they had captured from it. And in March 2016, al Nusra Front troops attacked the headquarters of the 13th Division in northwestern Idlib province and seized all of its TOW missiles.  Later that month, al Nusra Front released a video of its troops using the TOW missiles it had captured.

    But that wasn’t the only way for al Nusra Front to benefit from the CIA’s largesse. Along with its close ally Ahrar al Sham, the terrorist organization began planning for a campaign to take complete control of Idlib province in the winter of 2014-15. Abandoning any pretense of distance from al Qaeda, Turkey, Saudi Arabia, and Qatar worked with al Nusra on the creation of a new military formation for Idlib called the “Army of Conquest,” consisting of the al Qaeda affiliate and its closest allies. Saudi Arabia and Qatar provided more weapons for the campaign, while Turkey facilitated their passage. On March 28, just four days after launching the campaign, the Army of Conquest successfully gained control of Idlib City.

    The non-jihadist armed groups getting advanced weapons from the CIA assistance were not part of the initial assault on Idlib City. After the capture of Idlib the U.S.-led operations room for Syria in southern Turkey signaled to the CIA-supported groups in Idlib that they could now participate in the campaign to consolidate control over the rest of the province. According to Lister, the British researcher on jihadists in Syria who maintains contacts with both jihadist and other armed groups, recipients of CIA weapons, such as the Fursan al haq brigade and Division 13, did join the Idlib campaign alongside al Nusra Front without any move by the CIA to cut them off.

    As the Idlib offensive began, the CIA-supported groups were getting TOW missiles in larger numbers, and they now used them with great effectiveness against the Syrian army tanks. That was the beginning of a new phase of the war, in which U.S. policy was to support an alliance between “relatively moderate” groups and the al Nusra Front.

    The new alliance was carried over to Aleppo, where jihadist groups close to Nusra Front formed a new command called Fateh Halab (“Aleppo Conquest”) with nine armed groups in Aleppo province which were getting CIA assistance. The CIA-supported groups could claim that they weren’t cooperating with al Nusra Front because the al Qaeda franchise was not officially on the list of participants in the command. But as the report on the new command clearly implied, this was merely a way of allowing the CIA to continue providing weapons to its clients, despite their de facto alliance with al Qaeda.

    The significance of all this is clear: by helping its Sunni allies provide weapons to al Nusra Front and its allies and by funneling into the war zone sophisticated weapons that were bound to fall into al Nusra hands or strengthen their overall military position, U.S. policy has been largely responsible for having extended al Qaeda’s power across a significant part of Syrian territory. The CIA and the Pentagon appear to be ready to tolerate such a betrayal of America’s stated counter-terrorism mission. Unless either Congress or the White House confronts that betrayal explicitly, as Tulsi Gabbard’s legislation would force them to do, U.S. policy will continue to be complicit in the consolidation of power by al Qaeda in Syria, even if the Islamic State is defeated there.

  • The End Of The (Petro)Dollar: What The Fed Doesn't Want You To Know

    Authored by Shaun Bradley via TheAntiMedia.org,

    The United States’ ability to maintain its influence over the rest of the world has been slowly diminishing. Since the petrodollar was established in 1971, U.S. currency has monopolized international trade through oil deals with the Organization of the Petroleum Exporting Countries (OPEC) and continuous military interventions. There is, however, growing opposition to the American standard, and it gained more support recently when several Gulf states suddenly blockaded Qatar, which they accused of funding terrorism.

    Despite the mainstream narrative, there are several other reasons why Qatar is in the crosshairs. Over the past two years, it conducted over $86 billion worth of transactions in Chinese yuan and has signed other agreements with China that encourage further economic cooperation. Qatar also shares the world’s largest natural gas field with Iran, giving the two countries significant regional influence to expand their own trade deals.

    Meanwhile, uncontrollable debt and political divisions in the United States are clear signs of vulnerability. The Chinese and Russians proactively set up alternative financial systems for countries looking to distance themselves from the Federal Reserve.  After the IMF accepted the yuan into its basket of reserve currencies in October of last year, investors and economists finally started to pay attention. The economic power held by the Federal Reserve has been key in financing the American empire, but geopolitical changes are happening fast. The United States’ reputation has been tarnished by decades of undeclared wars, mass surveillance, and catastrophic foreign policy.

    One of America’s best remaining assets is its military strength, but it’s useless without a strong economy to fund it. Rival coalitions like the BRICS nations aren’t challenging the established order head on and are instead opting to undermine its financial support. Qatar is just the latest country to take steps to bypass the U.S. dollar. Russia made headlines in 2016 when they started accepting payments in yuan and took over as China’s largest oil partner, stealing a huge market share from Saudi Arabia in the process. Iran also dropped the dollar earlier this year in response to President Trump’s travel ban. As the tide continues to turn against the petrodollar, eventually even our allies will start to question what best serves their own interests.

    Many E.U. member states are clashing with the unelected leadership in Brussels over immigration, terrorism, and austerity measures. If no solutions are found and things deteriorate, other countries could potentially follow the U.K.’s lead and vote to leave, as well. It is starting to become obvious that countries in Eastern Europe will look to the East to get the resources their economies need.

    China, Russia, and India are all ahead of the curve and started stockpiling gold years ago. They recognize that hard assets will be the measure of true wealth in the near future — not fiat money. The historic hyperinflation that has occurred in these countries solidified the importance of precious metals in their monetary systems. Unfortunately, most Americans are ignorant of the past and will likely embrace more government bailouts and money printing when faced with the next recession. Even Fed officials have admitted that more quantitative easing is likely the only path going forward.

    Several renowned investors have warned about this ongoing shift of economic power from West to East, but bureaucrats and central bankers refuse to admit how serious things could get. The impact on the average person could be devastating if they are not properly educated and prepared for the fallout.

    Economist and author James Rickards summarized why China and Russia are so interested in acquiring precious metals:

    “They are stuck with their dollars. They fear, rightly, that the US will inflate its way out of its $19 trillion mountain of debt. China’s solution is to buy gold. If dollar inflation emerges, China’s Treasury holdings will devalue, but the dollar price of its gold will soar. A large gold reserve is a prudent diversification.  Russia’s motives are geopolitical. Gold is the model 21st century weapon for financial wars.The US controls dollar payments systems and, with help from European allies, can eject adversaries from the international payments system called Swift. Gold is immune to such assaults. Physical gold in your custody cannot be hacked, erased, or frozen. Moving gold is a simple way for Russia to settle accounts without US interference.”

    Mainstream pundits will continue to distract the public with the same optimistic talking points, but taking advantage of this calm before the storm is important. As this transition takes place, central bankers will sacrifice anything and everything to keep their Ponzi scheme going. Only individuals can take the initiative to protect themselves and be able to help others who won’t be as lucky. Those who embrace sound money and cryptocurrencies will thrive in this new competitive global economy, but if America fails to adapt, the same fiat system that gave it power will drag it into poverty.

  • "CNN Caught Cold" In Undercover Sting – Producer Admits Russia Fake News Story Pushed For Ratings

    Update: President Trump has noted the series of CNN 'Fake News' stories once again…

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    Content originally published at iBankCoin.com

    The investigative journalists at Project Veritas have done it again! Known for their undercover sting operations, such as the one which exposed the DNC's highly organized network of professional agitators sent to disrupt Trump rallies, voter fraud, or the undercover operation which led to the arrests of Antifa thugs planning to disrupt an the inauguration "deploraball" event.

    This time, the organization led by James O'Keefe has infiltrated CNN

     

    A PV journalist covertly filmed a candid discussion with CNN [health] producer John Bonifield, where the "Very Fake News" network employee admitted that the whole Russia story against President Trump is nothing more than a ratings grab by CNN's CEO Jeff Zucker – based on the fact that most of CNN's liberal audience wants to see the President go down in flames.

    Bonifield also admitted that he hasn't seen any evidence of President Trump committing a crime.

    John Bonifield: Even if Russia was trying to swing an election, we try to swing their elections, our CIA is doing shit all the time, we're out there trying to manipulate governments.

     

    I haven't seen any good enough evidence to show that the President committed a crime.

     

    I know a lot of people don't like him and they'd like to see him get kicked out of office…. but that's a lot different than he actually did something that can get him kicked out of office.

    Russia is for ratings!

    PV Journalist: Why is CNN constantly like "Russia this, Russia that?"

     

    Bonifield: Because it's ratings. Our ratings are incredible right now.

     

    My boss, I shouldn't say this, my boss yesterday we were having a discussion about this dental shoot and he was like I just want you to know what we're up against here. Just to give you some context, President Trump pulled out of the climate accords. For a day and a half we covered the climate accords. And the CEO of CNN [Jeff Zucker] said in our internal meeting, he said good job everybody covering the climate accords, but we're done with it. Let's get back to Russia.

     

    But all the nice cutesy little ethics that used to get talked about in journalism school, you're just like, that's adorable. That's adorable. This is a business.

    True feelings about Russia…

    John Bonifield was asked directly what he thinks about Russia… and responded with what many on the right have been saying for months; If it was something really good, it would have already leaked:

    PV Journalist: But honestly, you think the whole Russia shit is just bullshit?

     

    Bonifield: Could be bullshit. I mean, it's mostly bullshit right now. Like, we don't have any giant proof. Then they say, "well there's still an investigation going on." I don't know, if they were finding something we would know about it. They way these leaks happen, they would leak it. They'd leak. If it was something really good, it'd leak.

     

    I just feel like they don't really have it but they want to keep digging. And so I think the President is probably right to say, like "look, you are witch hunting me. You have no smoking gun, you have no real proof."

    Watch:

      

     

    UPDATE: Full video here:

      

     

  • Quants Haven't Made Human Investors Obsolete Just Yet

    We are already unquestionably living in the era of the quantitative fund: Not only are quant funds receiving a larger percentage of new investor money than their discretionary peers, but as JPM Morgan’s head quant noted earlier this month, passive and quantitative funds now account for about 60% of equity assets, compared with less than 30% a decade ago.

    Indeed, the chart below confirms what JPM already revealed: "for now, systematic traders are the dominating force in markets."

    But while the asset-management space is increasingly looking like a “quant’s world”, with carbon-based traders looking increasingly anachronistic, a handful of fund managers are aggressively pushing back against the notion that human investors are headed toward obsolescence.

    At least that’s what a quartet of money managers have posited in recent weeks, according to Bloomberg.

    “Winton, a $30.6 billion hedge fund that’s used algorithms to trade for two decades, told clients that people must still make the big decisions. Michael Hintze, who runs another major fund, said computer models can spot market anomalies but rarely provide answers. Jordi Visser, investment chief at a third firm, said humans still have the upper hand when it comes to recognizing patterns. Billionaire bond manager Jeffrey Gundlach said he’s betting people will prevail."

    “Despite the immense power of modern computing, it is neither advisable — nor even possible — to dispense with humans entirely,” Winton, founded by David Harding, who earned a degree in theoretical physics before going into finance, wrote in its letter to clients this month.”

    These fund managers are not alone in their belief in the essentiality of human reasoning: Treasury Secretary Steven Mnuchin said that he isn’t worried about artificial intelligence taking American’s jobs. Never mind that his remarks arrived on the same day as a PWC report which showed that more than a third of U.S. jobs could be at "high risk" of automation by the early 2030s, a percentage that’s greater than in Britain, Germany and Japan.

    Not to mention what Bloomberg described as “a crescendo of warnings from the likes of Federal Reserve Chair Janet Yellen and software billionaire Bill Gates that big data and machine learning may unleash a wave of automation on the US.”

    Doubleline Capital’s Gundlach said he doesn’t believe in machine’s taking over finance. His advice for beating them? “Work hard.”

    Jeff Gundlach

    Winton said that while some tasks, like recurring calculations for assessing risk and vetting trading algorithms for anomalies, might be outsourced to computers. Most investment decisions at the fund will still need to be vetted by humans.

    “Winton wrote in its letter, there are big tasks at hedge funds ripe for automation, such as performing large-scale, recurring calculations for assessing risk across portfolios. But according to the firm, whose 450 employees include astrophysicists and other scientists, computers are far from ready to make investing decisions independently. Instead, people will be running software at every stage of the process.

     

    Winton managers design and choose algorithms that are ultimately approved or rejected by its investment board. And while computers are better suited to handle early stages of checking data, once anomalies are flagged, humans are better at cross-referencing the irregularities against other sources to draw conclusions, the London-based firm said.”

     

    “The notion that human involvement in investment management should, or even could, be fully automated is wide of the mark,” Winton, which returned 1.3 percent this year through May on its main fund, wrote in the letter.”

    To be sure, none of this will stop the biggest banks – and at least one fund – from trying to automate as many tasks as possible, from aspects of underwriting, to asset management, to legal tasks.

    “Billionaire trader Steven Cohen is experimenting with ways to automate his best money managers. Goldman Sachs Group Inc. is developing systems to eliminate hundreds of hours of human labor in initial public offerings. JPMorgan Chase & Co. is using machine-learning techniques to take over work from lawyers. (Its CEO, Jamie Dimon, said in an interview published Monday that people are massively overreacting to the threat of technology.)”

    But even the automation of low-level tasks could threaten at least one crucial aspect of the hedge-fund industry: The exorbitant fees charged by most managers.

    “Hedge fund managers, for example, traditionally charged clients 2 percent of assets and 20 percent of profits. It’s harder to justify if automated platforms can achieve decent results without a big bite. Such has been the case with index funds.”

    Some fund managers are also skeptical of backtesting – the process of trying to determine the efficacy of a trading algorithm by checking it against historical data. Successful traders will find ways to incorporate technology into their processes without relying on it alone to drive investment decisions, one fund manager said.

    “The industry’s survivors will be the ones who imbibe technology into their processes, Visser said. The trick is to use a combination of human judgment and models, “while artificial intelligence tries to catch up to the power of the brain,” he said.”

    And while some quant-driven strategies have certainly proven successful at sniffing out market anomalies, successful investors still need to grasp the basics.

    "Hintze at CQS, a $14 billion hedge fund based in London, concedes that quant-driven strategies are here to stay, and that they’re good at taking advantage of anomalies in markets. While engineering and mathematics are intriguing, successful investing is based on an understanding of fundamentals, technicals and investor sentiment, he said."

  • The Most Dangerous Fake News Of All Is Peddled By The Corporate Media

    Authored by Mike Krieger via Liberty Blitzkrieg blog,

    This is not the sort of thing you see in a confident, brave, and civilized nation, it’s the sort of stuff you’d expect to see toward the end. It’s the stuff of craven war-mongers, of dishonest cowards, of a totally deranged and very dangerous media. The signs are everywhere; imperial decline is set to accelerate rapidly in the coming years.

     

    – From the April post: Prepare for Impact – This is the Beginning of the End for U.S. Empire

    Fake news, propaganda and garbage information is everywhere and I’m not going to pretend otherwise. That being said, the key thing to understand is fake news from obscure websites you’ve never heard of is not what represents the real, global danger of rampant dishonest information. The real danger of fake news is the stuff that’s consistently being vomited onto the pages of “respectable,” billionaire-owned corporate media.

    Obscure blogs and independent thinkers such as myself aren’t influencing foreign policy, domestic policy or anything that really matters (look around you). While alternative media did indeed play a monumental role in the election of Donald Trump, how much really changed when it comes to the true power centers?

    Not much, not much at all. Goldman Sachs and Wall Street are more in control than ever before, and neocons and other assorted interventionists seem to be running foreign policy.

    All of this reminds me of the famous saying, “if voting made any difference, they’d make it illegal.” Indeed, the time has come for all of us to own up to the very real and present danger of corporate media, which seemingly exists to provide public relations for oligarchs and the foreign policy establishment. Not that this should be surprising, you’d have to be the most naive creature on earth to think newspapers owned by billionaires are going to tell the public the truth. Indeed, I made the following observation earlier today on Twitter.

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    Truth be told, it’s way beyond bizarre, it’s downright terrifying. Note that most major newspapers could barely catch their breath from demonizing Trump during his first three months, yet suddenly saw him as a heroic figure as soon as he lobbed a few bombs at Assad. This is like giving a puppy a treat for peeing on a wee wee pad. The corporate press is literally training Trump to wage as much imperial war as possible. It’s crucial to understand that Trump, or any other administration really, can only do so much on the interventionist war front as the corporate press permits and pushes. Unfortunately, the corporate press is always pushing for war.

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    Today provided yet another example of how the “respectable” oligarch-owned press unquestionably repeats government propaganda when it comes to foreign policy. Two days after Seymour Hersh blew a hole in the fairytale account of Assad using chemical weapons in April, and merely a few hours after Sean Spicer started conditioning the public for more war with evidence-free claims that another chemical attack was imminent, here’s how the New York Times covered the April attack.

    Naturally, you have the photo of the hurt child to pull at your heartstrings underneath which is written, “after a nerve agent was used in an attack in April.” Of course, there is no proof that a nerve agent was used in the attack; in fact, there seems to be increasing proof that there wasn’t. Yet, that doesn’t stop The New York Times from doing it again and again later in the piece.

    WASHINGTON — American officials have seen chemical weapons activity at a Syrian air base that was used in the spring nerve gas attack on rebel-held territory, the Defense Department said on Tuesday, scrambling to explain what prompted a White House statement a day earlier that Syria would “pay a heavy price” if it carried out another one.

     

    Capt. Jeff Davis, a Pentagon spokesman, told reporters that what looked like active preparations for a chemical attack were seen at Al Shayrat airfield, which was struck in April by American cruise missiles two days after the Syrian government dropped bombs loaded with toxic chemicals in northern Syria. Another Defense Department official said that an aircraft shelter at Al Shayrat that had been hit by an American Tomahawk missile was being used for the preparation.

     

    The United States and other world powers have accused Mr. Assad’s forces of repeatedly using chemical weapons to subdue rebels seeking to topple his government. Chemical attacks killed more than 1,000 people near Damascus in 2013 and dozens more in northern Syria in April of this year.

    The paper consistently states non-facts as facts in order to push a particular narrative. Meanwhile, here’s some of what Seymour Hersh reported in German newspaper Die Welt over the weekend:

    The available intelligence made clear that the Syrians had targeted a jihadist meeting site on April 4 using a Russian-supplied guided bomb equipped with conventional explosives. Details of the attack,  including information on its so-called high-value targets, had been provided by the Russians days in advance to American and allied military officials in Doha, whose mission is to coordinate all U.S., allied, Syrian and Russian Air Force operations in the region.

     

    Some American military and intelligence officials were especially distressed by the president’s determination to ignore the evidence. “None of this makes any sense,” one officer told colleagues upon learning of the decision to bomb. “We KNOW that there was no chemical attack … the Russians are furious. Claiming we have the real intel and know the truth … I guess it didn’t matter whether we elected Clinton or Trump.”

     

    The Execute Order governing U.S. military operations in theater, which was issued by the Chairman of the Joint Chiefs of Staff,  provide instructions that demarcate the relationship between the American and Russian forces operating in Syria. “It’s like an ops order – ‘Here’s what you are authorized to do,’” the adviser said. “We do not share operational control with the Russians. We don’t do combined operations with them, or activities directly in support of one of their operations.  But coordination is permitted. We keep each other apprised of what’s happening and within this package is the mutual exchange of intelligence.  If we get a hot tip that could help the Russians do their mission, that’s coordination; and the Russians do the same for us. When we get a hot tip about a command and control facility,” the adviser added, referring to the target in Khan Sheikhoun, “we do what we can to help them act on it.” “This was not a chemical weapons strike,” the adviser said. “That’s a fairy tale. If so, everyone involved in transferring, loading and arming the weapon – you’ve got to make it appear like a regular 500-pound conventional bomb – would be wearing Hazmat protective clothing in case of a leak. There would be very little chance of survival without such gear. Military grade sarin includes additives designed to increase toxicity and lethality. Every batch that comes out is maximized for death. That is why it is made. It is odorless and invisible and death can come within a minute. No cloud. Why produce a weapon that people can run away from?”

     

    The target was struck at 6:55 a.m. on April 4, just before midnight in Washington. A Bomb Damage Assessment (BDA) by the U.S. military later determined that the heat and force of the 500-pound Syrian bomb triggered  a series of secondary explosions that could have generated a huge toxic cloud that began to spread over the town, formed by the release of the fertilizers, disinfectants and other goods stored in the basement, its effect magnified by the dense morning air, which trapped the fumes close to the ground. According to intelligence estimates, the senior adviser said, the strike itself killed up to four jihadist leaders, and an unknown number of drivers and security aides. There is no confirmed count of the number of civilians killed by the poisonous gases that were released by the secondary explosions, although opposition activists reported that there were more than 80 dead, and outlets such as CNN have put the figure as high as 92. A team from Médecins Sans Frontières, treating victims from Khan Sheikhoun at a clinic 60 miles to the north, reported that “eight patients showed symptoms – including constricted pupils, muscle spasms and involuntary defecation – which are consistent with exposure to a neurotoxic agent such as sarin gas or similar compounds.” MSF also visited other hospitals that had received victims and found that patients there “smelled of bleach, suggesting that they had been exposed to chlorine.” In other words, evidence suggested that there was more than one chemical responsible for the symptoms observed, which would not have been the case if the Syrian Air Force – as opposition activists insisted – had dropped a sarin bomb, which has no percussive or ignition power to trigger secondary explosions. The range of symptoms is, however, consistent with the release of a mixture of chemicals, including chlorine and the organophosphates used in many fertilizers, which can cause neurotoxic effects similar to those of sarin.

    Given the reporting of a journalist with decades of history calling out government b.s., you’d think the New York Times would at least mention Hersh’s reporting in their article. Nope, not a peep.

    The Atlantic does a similar thing. Here are a few excerpts from its Syria piece this morning. Let’s start with the title.

    “Another” chemical attack. Meanwhile, it looks like the last one never even happened, yet does The Atlantic mention the report authored by Sy Hersh two days earlier? Of course not, but it does continue to repeat the fake news claim of an April chemical weapons attack over and over.

    White House Press Secretary Sean Spicer released a statement Monday night accusing the Syrian government of potentially engaging in preparations for another chemical weapons attack. While the statement offered minimal details, it argued that a future attack “would likely result in the mass murder of civilians, including innocent children.” On April 4, a government-led chemical attack in Syria’s northwestern Idlib province resulted in the deaths of more than 80 civilians. According to Spicer, the Syrian government’s latest preparations closely resemble those carried out prior to April 4.

    Never let the truth get in the way of a good story.

    If indeed enacted, a new chemical weapons attack could have reverberating consequences throughout the international community. In response to April’s attack, the U.S. launched 59 tomahawk missiles at a Syrian air base—the nation’s first military operation against an Arab government since President Obama’s intervention in Libya in 2011. At the time, the administration referred to the strike as a “one-off” occurrence intended to deter future chemical attacks. But, in the wake of the operation, administration officials reported that President Trump had been deeply troubled by graphic images of Syrian children struggling to breathe. “No child of God should ever suffer such horror,” Trump said while announcing the strike.

    The nation’s first military operation against an Arab government since President Obama’s intervention in Libya in 2011.”

    Since that went so well, we may as well do it again.

    Meanwhile, do you know anything about David G. Bradley, the man who owns Atlantic Media? I didn’t think so. Here’s a brief snippet mentioning him from a 2010 Daily Beast article about D.C. “richest power players.”

    Far more visible is well-heeled entrepreneur and Atlantic Media publisher David G. Bradley, who owns The National Journal, The Atlantic, and Hotline. In 1979, a 26-year-old Bradley founded the Research Council of Washington. Over the years he zeroed in on health care and finance, and in 1997 he sold the company for more than $300 million. He is known for hosting monthly ultra-exclusive off-the-record dinners—a Valhalla of insiders, top journalists, foreign leaders, and White House officials—in his glass-enclosed office at the Watergate. “It’s a joy for me,” Bradley has said. “I launched it for the romance of it. It’s more book club than it is clubhouse.”

    I’ll let you make your own determination as to whether or not this sort of thing is likely to lead to hard-hitting, power challenging journalism. Sounds like a bunch of elitists stroking each other to me.

    Which brings me to the main point. The major newspapers do not hold power to account. They aren’t working for the public interest, and you can see the results all around us. With government, corporate oligarchs and the media entirely aligned against the best interests of the population at large, the situation looks very bleak. The imperial train wreck appears unstoppable.

     

  • Chinese Satellite Data Hint At Ominous Manufacturing Slowdown

    Chinese factory activity contracted last month for the first time in nearly a year when the Caixin PMI dipped below 50, the threshold for growth. And now, early indicators for the month of June – including one satellite-based measure – suggest that there’s more pain ahead for the manufacturing sector in the world’s second-largest economy.

    A reading published by San Francisco-based SpaceKnow Inc. which uses commercial satellite imagery to monitor activity across thousands of industrial sites signaled deterioration in the country’s manufacturing sector for the first time since August. The gauge, known as the China Satellite Manufacturing Index, fell to 49.6, below the 50 break-even level. The index incorporates satellite data from thousands of industrial sites across China.

    Satellite imagery has often proved eerily presceint in the recent past: In the US, satellite data analyzing activity in retailers' parking lots pointed to significant activity weakness at core US retail locations, even as sentiment indicators were suggesting an uptick in sales following the election.

    Meanwhile, small- and medium-sized enterprises showed the lowest level of confidence in 16 months, and conditions in the steel business remained lackluster, according to Bloomberg.

    Some other indicators have been slightly more sanguine: sales-manager sentiment stayed positive, and outlook of financial experts recovered.

    Still, data suggest that output in China’s economy slowed during the second quarter after a strong start to the year, with investment slowing, some credit becoming tighter and signs that curbs on the country’s property market are starting to have an impact.

    Should growth continue to slow, China’s leaders would find themselves in an awkward position, with the country’s twice-a-decade leadership transition expected to occur this fall when the 19th Party Congress convenes to appoint its new senior leadership. It’s widely believed that China’s President Xi Jinping will begin serving his second five-year term.

    Another gauge, Standard Chartered Plc’s Small and Medium Enterprise Confidence Index slumped to a 16-month low at 54.7 – a sign that smaller companies are finding it harder to obtain credit as regulators move to damp financial risks. A sub-gauge of lending fell below 50, signaling deterioration, for the first time on record.

    These data show that Chinese banks are growing reluctant to lend to small Chinese companies, preferring larger, more established peers, this leaves those companies in line to feel the brunt of the People’s Bank of China’s monetary tightening, as the central bank tries to ease the market off of its dependence on repeated liquidity injections.

    “Although the central bank will likely provide sufficient liquidity to avoid a liquidity crunch, banks may still prefer lending to bigger rather than smaller companies amid tighter liquidity conditions,” according to Standard Chartered's Kelvin Lau and Hunter Chan.

    That could be the spark that ignites China’s “Minsky moment” – the financial cataclysm that Kyle Bass and other perma-china-bears have been waiting for when China’s overleveraged market crumbles to dust – might finally be in the offing. Indeed, though China's markets have been relatively calm recently, the PBOC's attempts to tighten liquidity have sparked some instability in recent months. Back in March, the central bank had to engage in mini bailouts when a jump in interbank rates caused some small regional lenders to default on their interbank loans after money market rates shot higher. Meanwhile, China's weakening credit impulse should give any China bulls pause.

    In one ominous sign, Hong Kong microcap stocks crashed overnight after a rumor that local exchanges might force all “zombie companies “ to delist triggered a wave of margin calls. The selloff triggered worries about stability in the country’s equity market, which has seen a series of spectacular crashes in individual names this year, despite the broader Hang Seng benchmark’s strong performance.

    Compounding worries for investors is a report published by Caixin a few weeks ago saying that two dozen Chinese companies asked their employees to buy their stock, promising to cover their losses – a transparent attempt at pumping up the price to fend off collateral calls on stock-backed loans.

    What's more, in a fantastic expose from earlier this month, Reuters reported on how Chinese firms' "rehypothecating" collateral between two and three borrowers, suggesting that billions, or maybe even trillions, of dollars' worth of loans are based on so-called ghost collateral, leaving them effectively unsecured.

    Meanwhile, the S&P Global Platts China Steel Sentiment Index remained at a lackluster level — 38.12 out of 100 points. The gauge is based on a survey of about 75 to 90 China-based market participants including traders and steel mills.

    "Market participants do not expect any great improvement over the coming month," Paul Bartholomew, a senior managing editor at S&P Global Platts in Melbourne, wrote in a release. "Confidence in the export market has evaporated after two stronger months, as overseas customers are wary about buying when the price direction is so unclear.”

    In addition to the ominous economic indicators, political tensions are worsening, too. Two weeks after Trump's ominous China “tried and failed” to contain North Korea tweet, the leaders of the two global powers appear to be getting closer to the default relationship that many expected after the election – that is to say, a hostile one. The Trump report follows last night's news that the United States plans to place China on its global list of worst offenders in human trafficking and forced labor, a step that according to Reuters could aggravate tensions with Beijing.
     

  • Jim Grant Explains The Gold Standard

    Authored by Ryan McMaken via The Mises Institute,

    Earlier this month in the Wall Street JournalJames Grant explored the latest academic attack on the gold standard — this time in the form of One Nation Under Gold by financial journalist James Ledbetter.

    Not that the establishment economics profession needs another book trashing gold. Among the university- and government-employed PhDs who hand down their wisdom about economics from on high, few have anything but disdain for the yellow metal. 

    Grant knows this all to well and notes: 

    As if to clinch the case against gold – and, necessarily, the case for the modern-day status quo – Mr. Ledbetter writes: “Of forty economists teaching at America’s most prestigious universities — including many who’ve advised or worked in Republican administrations — exactly zero responded favorably to a gold-standard question asked in 2012.”

     

    Perhaps so, but “zero” or thereabouts likewise describes the number of established economists who in 2005, ’06 and ’07 anticipated the coming of the biggest financial event of their professional lives. The economists mean no harm. But if, in unison, they arrive at the conclusion that tomorrow is Monday, a prudent person would check the calendar.

    Nevertheless, the gold standard has a reputation for being dark and nefarious. It’s backward and limiting, and the sort of thing one ought to associate with crucifixion, as implied in William Jennings Bryan’s famous Cross of Gold speech

    But, as Grant sums things up, it’s not as complicated as all that: 

    What was the gold standard, exactly — this thing that the professors dismiss so airily today? A self-respecting member of the community of gold-standard nations defined its money as a weight of bullion. It allowed gold to enter and leave the country freely. It exchanged bank notes to gold, and vice versa, at a fixed and inviolable rate. The people, not the authorities, decided which form of money was best.

     

    The gold standard was a hard task master, all right.

     

    You couldn’t devalue your way out of trouble.

     

    You couldn’t run up a big domestic budget deficit.

     

    The central bank of a gold-standard country (if there was a central bank) was charged with preserving the convertibility of the currency and, in a pinch, serving as lender of last resort to needy commercial banks. Growth, employment and price stability took their own course. And if, in a financial panic or a business-cycle downturn, gold fled the country, it was the duty of the central bank to establish a rate of interest that called the metal home. In the throes of a crisis, interest rates would likely go up, not down.

    The reason gold is so unpleasant then, Grant writes, is that “the modern sensibility quakes at the rigor of such a system.” But, in an age when science and technology can solve all our problems, surely if we try really hard, we can devise an economic system that can create wealth out of thin air! 

    Thus was the gold standard replaced by another standard: 

    That system features monetary oversight by former university economics faculty — the Ph.D. standard, let’s call it. The ex-professors buy bonds with money they whistle into existence (“quantitative easing”), tinker with interest rates, and give speeches about their intentions to buy bonds and tinker with interest rates (“forward guidance”).

    But why was this new standard adopted? Many economists would have us believe it was due to some rational embrace of more “correct” thinking. 

    But, as with Keynesian economics in general – which was largely embraced because it tells powerful people what they want to hear = the new monetary system was embraced because governments couldn't pay their debts:

    Addressing a national television audience on Sunday evening, Aug. 15, 1971, President Richard Nixon announced the temporary suspension of the dollar’s convertibility into gold. No more would foreign governments enjoy the right to trade in their greenbacks for bullion at the then standard rate of $35 to the ounce. 

    It’s not a coincidence that this came at the end of a long period of guns-and-butter policy in which the US government spent freely on new wars and a growing welfare state. But there was a problem. Government’s ability to give itself a raise by inflating the currency was restrained somewhat by the Bretton Woods system, which guaranteed the international value of gold at a fixed number of dollars. 

    Nixon yearned to be free of this restraint so he could spend dollars more freely, and not have to worry about their value in gold. 

    Nixon’s move was, in short, the final and total politicization on money itself, and, as Grant notes, “The Ph.D. standard is … a political institution. It is the financial counterpart to the philosophy of statism."

     

  • New Polls Suggest the People of the World Hate Trump — IMPEACH THE ORANGE ORB NOW!!!

    Enough of this charade. The people of the world have spoken, and just 22% of asked by Pew Research have confidence in President Trump — down from Obama’s stellar 64%. More than that, the only two nations in the world where Trump was more popular than Obama was Russia (shocker!) and Israel.

    Why doesn’t Trump move to Jerusalem and become President there? He seems to love that wall so much — plus he’d be closer to his friends in Russia.

    He loves walls.

    Our dear friend from MSNBC, the impartial Chris Mathews, weighs in on this new impeachable offense.

    Let’s recap Trump’s crimes.

    He worked with Russian hackers to access John Podesta’s email box, revealing the DNC to be the corrupt organization we’ve all grown to adore.
    After becoming President, he took two scoops of iced cream, while everyone else took only one.
    He fired Comey and called Flynn ‘a good guy.’ Clearly, collusion — execute all involved.
    He obstructed justice by claiming to have tapes. He had zero tapes. Impeach now.
    He didn’t enjoy a Ramadan dinner — something of a tradition in the White House.
    He might get a chance to nominate a second supreme court justice.
    He has yet to release his taxes.

    This orange orangutan must leave the White House to make way for the whitest man to ever live — Mike Pence. He’s so white, his hair is white. His stance of electrocuting gays until they turn back to normal is somewhat alarming — but I feel we can work with him in making America somewhat good again.

    This greatness business is arduous, hard work, and environmentally unfriendly.

    For the sake of the people of the world, in spite of Russia and Israel, we must impeach Trump now.

     

     

    Content originally published at iBankCoin.com

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Today’s News 27th June 2017

  • Italy's Newest Bank Bailout Cost As Much As Its Annual Defense Budget

    Authored by Simon Black via SovereignMan.com,

    Two more Italian banks failed over the weekend– Banco Popolare di Vicenza and Veneto Banca.

    (In other news, the sky is blue.)

    The Italian Prime Minister himself stated that depositors’ funds were at risk, so the government stepped in with a bailout and guarantee package that could cost taxpayers as much as 17 billion euros.

    That’s a lot of money in Italy – around 1% of GDP. In fact it’s basically as much as the 17.1 billion euros they spent on national defense last year (according to an estimate by Italian think tank IAI).

    You don’t have to have a PhD in economics to figure out that NO government can afford to spend its entire defense budget every time a couple of medium-sized banks need a bailout.

    That goes especially for Italy, whose public debt level is already 132% of GDP… and rising. They simply don’t have the money.

    Moreover, the European Union actually has a series of new rules collectively known as the “Bank Recovery and Resolution Directive” which is supposed to prevent failing banks from being bailed out with taxpayer funds.

    Here’s the thing– Italy has LOTS of banks that are on the ropes.

    So with taxpayer resources exhausted (and technically prohibited), who’s going to be on the hook next time a bank goes under?

    Easy. By process of elimination, the only other party left to fleece is the depositor.

    Here’s how it works:

    Let’s say a bank takes in $1 billion in deposits.

    Naturally the bank doesn’t just keep $1 billion in cash sitting in its vault. They invest the money. They make loans. They buy assets.

    So the bank’s balance sheet shows $1 billion worth of assets, and $1 billion worth of deposits that they owe to their customers.

    But sometimes banks screw up when they invest their customers’ funds. Loans go bad. Borrowers default.

    For example, if a bank invested $200 million in Greek government bonds, and then the government of Greece defaults, the bank would only have $800 million in assets remaining.

    But they’d still owe their depositors the full $1 billion.

    How can a bank with only $800 million in assets possibly honor the $1 billion worth of deposits they owe to their customers?

    They can’t. And there’s a word for this: insolvency.

    This is the problem with so many banks across Italy (and many other countries around the world). They owe their depositors more than their assets are worth.

    Again, the taxpayers are ultimately on the hook from this weekend’s bailouts, along with some subordinated bondholders who got wiped out.

    But Italy’s banking problems go far beyond two little banks. This is a systemic issue across the country’s ENTIRE banking sector. And the solution goes far beyond what the taxpayers can afford.

    So next time around it could very well be the depositors who end up losing money.

    Even if not, it hardly seems worth taking the chance.

    By the way, I’m not just talking about Italy here.

    You know how they say “time heals all wounds?” Well, not in banking. Some wounds never heal.

    And there are countless banks and banking systems around the world that never fully recovered from the 2008 crisis.

    This raises the question– why hold money at a shaky bank in a country where the government is in debt up to its eyeballs? Especially when there are so many better options.

    Most people never think twice about where they hold their savings, typically opening accounts based on some irrelevant anachronism like geography.

    It’s 2017. Why trust all of your savings to a financial institution simply because it’s across the street?

    If you run a website, you wouldn’t necessarily choose a web hosting company because it’s located in your home town. You’d find the best company with the best service and best uptime.

    If you want to buy a new mobile phone, you wouldn’t just go to a local retailer. You’d probably shop online and find the best deal, even if it’s from a company across the planet.

    Why should money be any different?

    The world is a big place with LOTS of options and opportunities.

    And there are plenty of places where the banks might have MUCH stronger fundamentals, located in jurisdictions with minimal debt.

    But if this is too exotic, you could also consider physical cash.

    With an at-home safe, you effectively become your own banker, eliminating the middle man and eliminating the risk to your savings.

    This is all part of a great Plan B.

    Clearly there are risks in a number of banking systems, including most of the West where the majority of governments are themselves insolvent.

    Perhaps those risks are never realized.

    But it’s hard to imagine you’ll be worse off for holding a little bit of physical cash… or to consider the option of holding a portion of your savings in a bank that’s conservative, well-capitalized, and located in a country with zero debt.

    Even if nothing bad ever happens, there’s no downside in having taken these steps.

    But if these risks do pan out, your Plan B will end up being the best insurance policy you’ve ever had.

    Do you have a Plan B?

  • "You Will Be Held Accountable Trump" ISIS Hackers Deface Government Website With Threatening Message

    The websites of Ohio Governor John Kasich and other state government agencies were hacked on Sunday with a pro-ISIS post warning that President Donald Trump would be “held accountable” for deaths in Muslim countries, according to Bloomberg.

    Ten state websites and two servers that were affected have been taken off line for an investigation with law enforcement into how the hackers were able to deface them, said Tom Hoyt, a spokesman for the Ohio Department of Administrative Services.

    The Ohio governor’s website wasn’t loading on Sunday afternoon, and a cached version showed the message “hacked by Team System Dz.’’ The message, pictured below, read: “You will be held accountable Trump, you and all your people for every drop of blood flowing in Muslim countries’’ adding, “I love the Islamic State.”

    Kasich spokeswoman Emmalee Kalmbach said in a statement that “as soon as we were notified of the situation, we immediately began to correct it, and will continue to monitor until fully resolved.”

    Ohio Treasurer Josh Mandel, a Republican candidate for the U.S. Senate in 2018, posted on Facebook that the Department of Rehabilitation and Correction website had been hacked and said, “Wake up freedom-loving Americans. Radical Islam infiltrating the heartland.’’

    The same pro-Islamic State message, accompanied by music, was also shown on Sunday on the website of Brookhaven, a town on New York’s Long Island about 50 miles from Manhattan, according to the New York Post.

    The hacks come as Muslims around the world mark the end of the Ramadan, a month of fasting, and celebrate the Eid al-Fitr holiday, which began Saturday, and ends on Tuesday.

  • CNN Exposed In Undercover Sting – Producer Admits Russia Story Fake News Pushed For Ratings

    Content originally published at iBankCoin.com

    The investigative journalists at Project Veritas has done it again! Known for their undercover sting operations, such as the one which exposed the DNC’s highly organized network of professional agitators sent to disrupt Trump rallies, voter fraud, or the undercover operation which led to the arrests of Antifa thugs planning to disrupt an the inauguration “deploraball” event.

    This time, the organization led by James O’Keefe has infiltrated CNN…

    A PV journalist covertly filmed a candid discussion with CNN [health] producer John Bonifield, where the “Very Fake News” network employee admitted that the whole Russia story against President Trump is nothing more than a ratings grab by CNN’s CEO Jeff Zucker – based on the fact that most of CNN’s liberal audience wants to see the President go down in flames.

    Bonifield also admitted that he hasn’t seen any evidence of President Trump committing a crime.

    PV Journalist: So you believe the Russia thing is a little crazy, right?

     

    John Bonifield: Even if Russia was trying to swing an election, we try to swing their elections, our CIA is doing shit all the time, we’re out there trying to manipulate governments.

    I haven’t seen any good enough evidence to show that the President committed a crime.


    I know a lot of people don’t like him and they’d like to see him get kicked out of office…. but that’s a lot different than he actually did something that can get him kicked out of office.

    Russia is for ratings!

    PV Journalist: Why is CNN constantly like “Russia this, Russia that?”

     

    Bonifield: Because it’s ratings. Our ratings are incredible right now.

     

    My boss, I shouldn’t say this, my boss yesterday we were having a discussion about this dental shoot and he was like I just want you to know what we’re up against here. Just to give you some context, President Trump pulled out of the climate accords. For a day and a half we covered the climate accords. And the CEO of CNN [Jeff Zucker] said in our internal meeting, he said good job everybody covering the climate accords, but we’re done with it. Let’s get back to Russia.


    But all the nice cutesy little ethics that used to get talked about in journalism school, you’re just like, that’s adorable. That’s adorable. This is a business.

    True feelings about Russia…

    John Bonifield was asked directly what he thinks about Russia… and responded with what many on the right have been saying for months; If it was something really good, it would have already leaked:

    PV Journalist: But honestly, you think the whole Russia shit is just bullshit?

     

    Bonifield: Could be bullshit. I mean, it’s mostly bullshit right now. Like, we don’t have any giant proof. Then they say, “well there’s still an investigation going on.” I don’t know, if they were finding something we would know about it. They way these leaks happen, they would leak it. They’d leak. If it was something really good, it’d leak.

    I just feel like they don’t really have it but they want to keep digging. And so I think the President is probably right to say, like “look, you are witch hunting me. You have no smoking gun, you have no real proof.”

    Watch:

      
     (Full video here):
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  • The Age Of No Privacy: The Surveillance State Shifts Into High Gear

    Authored by John Whitehead via The Rutherford Institute,

    “We are rapidly entering the age of no privacy, where everyone is open to surveillance at all times; where there are no secrets from government.” ? William O. Douglas, Supreme Court Justice (1966)

    The government has become an expert in finding ways to sidestep what it considers “inconvenient laws” aimed at ensuring accountability and thereby bringing about government transparency and protecting citizen privacy.

    Indeed, it has mastered the art of stealth maneuvers and end-runs around the Constitution.

    It knows all too well how to hide its nefarious, covert, clandestine activities behind the classified language of national security and terrorism. And when that doesn’t suffice, it obfuscates, complicates, stymies or just plain bamboozles the public into remaining in the dark.

    Case in point: the National Security Agency (NSA) has been diverting “internet traffic, normally safeguarded by constitutional protections, overseas in order to conduct unrestrained data collection on Americans.”

    It’s extraordinary rendition all over again, only this time it’s surveillance instead of torture being outsourced.

    In much the same way that the government moved its torture programs overseas in order to bypass legal prohibitions against doing so on American soil, it is doing the same thing for its surveillance programs.

    By shifting its data storage, collection and surveillance activities outside of the country—a tactic referred to as “traffic shaping” —the government is able to bypass constitutional protections against unwarranted searches of Americans’ emails, documents, social networking data, and other cloud-stored data.

    The government, however, doesn’t even need to move its programs overseas. It just has to push the data over the border in order to “[circumvent] constitutional and statutory safeguards seeking to protect the privacy of Americans.”

    No wonder the NSA appeared so unfazed about the USA Freedom Act, which was supposed to put an end to the NSA’s controversial collection of metadata from Americans’ phone calls. The NSA had already figured out a way to accomplish the same results (illegally spying on Americans’ communications) without being shackled by the legislative or judicial branches of the government.

    Mind you, this metadata collection now being carried out overseas is just a small piece of the surveillance pie.

    The government and its corporate partners have a veritable arsenal of surveillance programs that will continue to operate largely in secret, carrying out warrantless mass surveillance on hundreds of millions of Americans’ phone calls, emails, text messages and the like, beyond the scrutiny of most of Congress and the taxpayers who are forced to fund its multi-billion dollar secret black ops budget.

    In other words, the surveillance state is alive and well and kicking privacy to shreds in America.

    On any given day, the average American going about his daily business is monitored, surveilled, spied on and tracked in more than 20 different ways by both government and corporate eyes and ears.

    Whether you’re walking through a store, driving your car, checking email, or talking to friends and family on the phone, you can be sure that some government agency, whether the NSA or some other entity, is listening in and tracking your behavior. This doesn’t even begin to touch on the corporate trackers that monitor your purchases, web browsing, Facebook posts and other activities taking place in the cyber sphere.

    We have now moved into a full-blown police state that is rapidly shifting into high-gear under the auspices of the surveillance state.

    Not content to merely transform local police into extensions of the military, the Department of Homeland Security, the Justice Department and the FBI are working to turn the nation’s police officers into techno-warriors, complete with iris scanners, body scanners, thermal imaging Doppler radar devices, facial recognition programs, license plate readers, cell phone Stingray devices and so much more.

    Add in the fusion centers, city-wide surveillance networks, data clouds conveniently hosted overseas by Amazon and Microsoft, drones equipped with thermal imaging cameras, and biometric databases, and you’ve got the makings of a world in which “privacy” is reserved exclusively for government agencies.

    Thus, the NSA’s “technotyranny”  is the least of our worries.

    Just about every branch of the government—from the Postal Service to the Treasury Department and every agency in between—now has its own surveillance sector, authorized to spy on the American people.

    And of course that doesn’t even begin to touch on the complicity of the corporate sector, which buys and sells us from cradle to grave, until we have no more data left to mine. Indeed, Facebook, Amazon and Google are among the government’s closest competitors when it comes to carrying out surveillance on Americans, monitoring the content of your emails, tracking your purchases, exploiting your social media posts and turning that information over to the government.

    It’s not just what we say, where we go and what we buy that is being tracked.

    We’re being surveilled right down to our genes, thanks to a potent combination of hardware, software and data collection that scans our biometrics—our faces, irises, voices, genetics, even our gait—runs them through computer programs that can break the data down into unique “identifiers,” and then offers them up to the government and its corporate allies for their respective uses.

    All of those internet-connected gadgets we just have to have (Forbes refers to them as “(data) pipelines to our intimate bodily processes”) are setting us up for a brave new world where there is nowhere to run and nowhere to hide.

    Incredibly, there are still individuals who insist that they have nothing to fear from the police state and nothing to hide from the surveillance state, because they have done nothing wrong.

    To those sanctimonious few, secure in their delusions, let this be a warning.

    There is no safe place and no watertight alibi.

    The danger posed by the American police/surveillance state applies equally to all of us.

    As I make clear in my book Battlefield America: The War on the American People, in an age of too many laws, too many prisons, too many government spies, and too many corporations eager to make a fast buck at the expense of the American taxpayer, we are all guilty of some transgression or other.

    Eventually, we will all be made to suffer the same consequences in the electronic concentration camp that surrounds us.

  • Prada Is Selling A $185 Paper Clip

    We finally have some good news for the distressed US retail industry.

    In light of recent deteriorating spending trends within the luxury segment, with Bank of America internal card data showing a relentless decline in retail spending among the wealthiest segment…

    … one would perhaps think that the conspicuous consumption excesses that marked the peak of the last bubble were long behind us.

    One would be wrong: first there was Balenciaga selling a $2,145 handbag that was a spitting image of an IKEA tote sold for $1 at the iconic store, and now, there is the $185 Prada paper clip.

    According to Business Insider, the Italian-made clip sold by Barneys New York, is 6.25 centimeters in length and 2.25 centimeters wide, is made from silver and has the Prada logo embossed on its side. It’s supposed to be used as a money clip, although one wonders why nouveau riche Millennials would use a Prada paper clip to hold their money (especially if much of it is in cryptocurrencies) when a, well, money clip should suffice perfectly. Then again, we can only assume Prada did their market research, and this is what it came up with:

    Of course, one can buy roughly 300 similar-looking paper clips on Amazon for around $5.50, which comes out to around $0.02 per paper clip, but hey, they are not silver Prada paperclips. 

    The social media response, as noted by Mashable, suggests that the new product may not be the smash hit that Prada envisioned:

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    On the odd chance that $185 is out of your budget, and if you can live without the Prada logo on your silver paper clip, Barneys sells a similar product for only $150.

  • Democratic-Party-Aligned Firm Behind Debunked "Russia Dossier" Stonewalls Senate Investigators

    A Democratic Party-aligned opposition research firm is stonewalling Congressional investigators who are trying to ascertain exactly who financed the now-debunked “Russia dossier” – remember? The one that claimed germaphobe Trump enjoyed getting urinated on by Russian hookers?

    The New York Post’s Paul Sperry is out with another report about Fusion GPS, a “research and strategic intelligence firm” founded by “three former Wall Street Journal investigative reporters.” But congressional sources say it’s actually an opposition-research group for Democrats, and the founders, who are more political activists than journalists, have a pro-Hillary, anti-Trump agenda."

    Fusion has refused to answer Senate investigators’ questions or provide records of communications that might help the panel identify who financed the error-ridden dossier. Now, because of the firm's intransigence, it looks like the investigators might soon make good on their threats.

    “These weren’t mercenaries or hired guns,” a congressional source familiar with the dossier probe said.

     

    “These guys had a vested personal and ideological interest in smearing Trump and boosting Hillary’s chances of winning the White House.”

    The firm was founded by Glenn Simpson, Thomas Catan and Peter Fritsch. Two of whom, Fritsch and Catan, have ties to Mexico — with Fritsch, a former Journal bureau chief in Mexico City, married to a Mexican woman who worked for Grupo Dina — a beneficiary of NAFTA. Catan, formerly from Britain, once edited a Mexican business magazine.

    Simpson, pictured below, is reported to have shared dark views of both Russian President Vladimir Putin and Trump. Before joining Fusion GPS, Simpson did opposition research for a former Clinton White House operative.

    Clearly, the research in the dossier – which was used to help justify the launch of Congressional and DOJ probes into the Trump campaign’s ties to Russian entities – has had tremendous consequences for the new administration, forcing Trump to beat back baseless claims and insinuations fed to the media by the DOJ and intelligence agencies. Still, after months of this treatment, no evidence of collusion has emerged.

    But the question remains: Who, exactly, provided the funding for the organization’s controversial and research? Money that allowed the firm to hire former MI6 agent Christopher Steele, allegedly the source of the dossier’s controversial claims.

    The Post has an idea of the profile, if not exactly the identity, of the individual or individuals responsible.

    “Fusion GPS was on the payroll of an unidentified Democratic ally of Clinton when it hired a long-retired British spy to dig up dirt on Trump. In 2012, Democrats hired Fusion GPS to uncover dirt on GOP presidential nominee Mitt Romney. And in 2015, Democrat ally Planned Parenthood retained Fusion GPS to investigate pro-life activists protesting the abortion group.”

    The FBI is also resisting Senate investigators who are zeroing in on the alleged misconduct by former deputy director Andrew McCabe, who’s failure to recuse himself from the investigation into the Trump campaign despite financial and political connections to Clinton through his Democrat activist wife has attracted suspicion.

    And unsurprisingly, former Attorney General Loretta Lynch – now the subject of another probe organized by the Senate Judiciary Committee – is somehow involved.

    "Senate investigators are demanding to see records of communications between Fusion GPS and the FBI and the Justice Department, including any contacts with former Attorney General Loretta Lynch, now under congressional investigation for possibly obstructing the Hillary Clinton email probe, and deputy FBI director Andrew McCabe, who is under investigation by the Senate and the Justice inspector general for failing to recuse himself despite financial and political connections to the Clinton campaign through his Democrat activist wife.:

    The bureau’s attempts to verify the content in the dossier should alarm anybody in a report that should who’s been following along these past few months, after receiving a copy of the dossier in August, the bureau offered to pay its controversial source to corroborate the information.

    “The FBI received a copy of the Democrat-funded dossier in August, during the heat of the campaign, and is said to have contracted in October to pay Steele $50,000 to help corroborate the dirt on Trump — a relationship that “raises substantial questions about the independence” of the bureau in investigating Trump, warned Senate Judiciary Chairman Chuck Grassley, R-Iowa.”

    As the Post reminds us, Steele has been cited as the source for nearly the entire collusion narrative, from the pro-Trump hackers were working at the direction of Russian President Vladimir Putin, the theory that the Russian government might have compromising information about Trump, and the idea that a Trump confidant held a clandestine meeting in Moscow.

    All of these allegations, as the Post notes, are 100% bullshit. Steele hasn't traveled to Moscow since the 1990s, and it appears his main source for most of his material was Google. 

    “Steele’s most sensational allegations remain unconfirmed. For instance, his claim that Trump lawyer Michael Cohen held a “clandestine meeting” on the alleged hacking scheme in Prague with “Kremlin officials” in August 2016 unraveled when Cohen denied ever visiting Prague, his passport showed no stamps showing he left or entered the US at the time, witnesses accounted for his presence here, and Czech authorities found no evidence Cohen went to Prague.

     

    Steele hadn’t worked in Moscow since the 1990s and didn’t actually travel there to gather intelligence on Trump firsthand. He relied on third-hand “friend of friend” sourcing. In fact, most of his claimed Russian sources spoke not directly to him but “in confidence to a trusted compatriot” who, in turn, spoke to Steele — and always anonymously.

     

    But his main source may have been Google. Most of the information branded as “intelligence” was merely rehashed from news headlines or cut and pasted — replete with errors — from Wikipedia.”

    But that didn’t stop both Democrats and, before them, anti-Trump Republicans, from accepting Steele’s allegations without scrutiny – and paying him handsomely for his efforts.

    “Steele contracted with Fusion GPS to investigate Trump’s ties to Russia starting in June 2016, whereupon he outlandishly claimed that Hillary campaign hackers were “paid by both Trump’s team and the Kremlin” and that the operation was run out of Putin’s office. He also fed Fusion GPS and its Hillary-allied clients incredulous gossip about Trump hating the Obamas so much that he hired hookers to urinate on a bed they slept in at the Moscow Ritz-Carlton, and that Russian intelligence recorded the pee party in case they needed to blackmail Trump.

     

    Never mind that none of the rumors were backed by evidence or even credible sourcing (don’t bother trying to confirm his bed-wetting yarn, Steele advised, as “all direct witnesses have been silenced”). Steele reinforced his paying customers’ worst fears about Trump, and they rewarded him for it with a whopping $250,000 in payments.”

    Steele, pictured below, also played a role in maligning former National Security Adviser Michael Flynn by suggesting there was something “untoward” about Flynn’s attending of a dinner to celebrate the 10th anniversary of Russia Today – an event that was also attended by former Green Party candidate Jill Stein.

    “In the same August report, for example, Steele connected a Moscow trip taken by then-Trump campaign adviser Michael Flynn to “the Russian operation” to hack the election. But there was nothing secret about the trip, which had taken place months earlier and had been widely reported.

     

    And there was nothing untoward about it. It was a dinner celebrating the 10th birthday of Russian TV network RT, and Flynn sat at the same table with Putin as US Green Party presidential candidate Jill Stein.”

    Meanwhile, it appears the founders of Fusion GPS have profited handsomely from their misinformation campaign:

    “Property records show that in June 2016, as Clinton allies bankrolled Fusion GPS, Fritsch bought a six-bedroom, five-bathroom home in Bethesda, Md., for $2.3 million.”

    Could this be the thread that finally unravels the Trump investigation? We think so. Stay tuned for more information once the inevitable subpoena is served…

  • "Tick, Tick, Tick" Comey Ally Scrambles To Explain Why "Next Trump Bombshell" Didn't Arrive Today

    As we noted late last week, Benjamin Wittes, the Brookings Institution senior fellow and noted ally of former FBI Director James Comey, took to twitter to claim that another “bombshell” story, presumably related to the multiple investigations into whether the Trump camp colluded with the Russians, was in the works. However, unlike previous warnings from Wittes, this one contained a caveat: the “fuse” on the story is of an uncertain length, and that the next salvo could arrive as soon as Monday.

    But with no major bombshell forthcoming, Wittes returned to Twitter Monday to offer a few clarifications.

     

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    Not only did Wittes reiterate that the timing of the next bombshell story remains uncertain, he also offered a few more clues: The, he says, isn’t necessarily related to Comey, who was spotted walking into the New York Times office in Times Square last week.

    He also noted that there’s “an interesting preemptive defense of collusion happening," likely referring to comments made on Fox News by Washington DC Managing Editor Brit Hume and a host of other characters.

    “Can anybody identify the crime?” Hume asked.

    While Wittes messages might appear to be the half-crazed ravings of a defeated liberal, as the Daily Caller pointed out, they should be taken seriously. His previous warnings – tweets of “TICK TICK TICK” – have in the recent past preceded major NYT bombshells, including the May 16 report about the Comey memo and its contents. He tweeted a similar message two days later, before the NYT published a report about Comey wanting to keep his distance from Trump.

     

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    Wittes did it again shortly before the Times published a story alleging Comey asked Attorney General Jeff Sessions not to leave him in the room alone with Trump on June 6. Wittes says he has reviewed Comey-related stories before, and was an on-the-record source for the May 18 piece reported by the NYT’s Michael Schmidt, where he recounted to the NYT reporter that Comey had told him at a lunch meeting that he sought to distance himself from Trump. Comey felt that Trump was attempting to cozy up to Comey in hopes of quashing the ongoing Russia probe.

    As for his point about the story not involving Comey, perhaps the Special Counsel Robert Mueller and his team of prosecutorial Democrats have unearthed a new baseless narrative with which to badger the president. Let’s see: We’ve already seen collusion and obstruction – and can only imagine what might be next.

    Maybe Trump really did shoot somebody on Fifth Avenue. Only way to find out is to stay tuned

  • Seymour Hersh: US Lied About Syrian Chemical Attack Then Bombed Them Anyway

    Liberty Blitzkrieg's Mike Krieger notes that part of Trump’s appeal to many of his voters was, at least ostensibly, the idea that he would employ a less hawkish/neocon foreign policy than his opponent Hillary “We Came, We Saw, He Died” Clinton.

    While it’s still too early to decisively say that Trump will usher in yet another foreign policy disaster for these United States and the world, it’s certainly not looking good.

     

    The lobbing of tomahawk missiles into Syrian based on the fairytale that Assad launched a chemical weapons attack was the first sign that Trump is easily manipulated and impulsive. In fact, the episode bothered me so much I wrote a post detailing the dire ramifications titled, Prepare for Impact – This is the Beginning of the End for U.S. Empire.  I suggest taking a read if you missed it the first time, it’s my most popular post of the year.

     

    While that was bad enough, Trump’s cozying up to the barbaric, terrorist-supporitng leaders of Saudi Arabia has been by far the most concerning aspect of his foreign policy (if you can call it that) so far. This policy has become even more dangerous now that the 30-year old princeling who is leading the Saudis’ increasingly aggressive stance in the region has been named crown prince. It appears Trump is willing to let the Saudis do whatever they want in the region, which is guaranteed to have disastrous implications for America and the Middle East.

    But a new Seymour Hersh article is out showing that the US knew there was no Assad chemical attack in April, but President Trump decided to bomb anyway.

    And the details are shocking… as TheAntiMedia.org's Darius Shahtahmasebi details, never one to accept the U.S. government’s official explanation of events without question, Pulitzer Prize-winning journalist Seymour Hersh has investigated Donald Trump’s decision to strike the al-Shayat Airbase in Syria in April of this year, which the president launched amid widespread allegations that the Syrian government committed a chemical weapons attack.

    In a report entitled “Trump’s Red Line,” published Sunday in the daily German newspaper Die Welt, Hersh asserts that President Donald Trump ignored important intelligence reports when he made the decision to attack Syria after pictures emerged of dying children in the war-torn country.

    For those of us without goldfish memories, Hersh’s recent investigation is reminiscent of his previous examination of the alleged chemical weapons attacks in 2013, detailed in an article entitled “Whose Sarin?” That article was published in the London Review of Books.

    The official White House explanation for the events in April of this year was that Donald Trump was moved by the suffering of “beautiful” Syrian babies – the same Syrian babies he doesn’t want to set foot in the United States – and decided to punish the Syrian government for the attack two days after it allegedly occurred. This punishment came in the form of an airstrike despite the lack of a thorough investigation regarding what took place that fateful day in April and who was ultimately culpable (though the Trump administration insisted they were certain that Syrian President Bashar al-Assad was to blame).

    In that context, it should come as no surprise that Trump acted rashly without consideration of the facts on the ground. However, what is most disturbing about Hersh’s account is the fact that, according to his source, Trump was well aware that the U.S. had no solid intelligence linking the Syrian government to a chemical weapons attack — and that’s because, according to Hersh’s article, it’s doubtful a chemical weapons attack occurred at all.

    Hersh reports:

    “The available intelligence made clear that the Syrians had targeted a jihadist meeting site on April 4 using a Russian-supplied guided bomb equipped with conventional explosives. Details of the attack,  including information on its so-called high-value targets, had been provided by the Russians days in advance to American and allied military officials in Doha, whose mission is to coordinate all U.S., allied, Syrian and Russian Air Force operations in the region.”

     

    “None of this makes any sense,” one officer reportedly told colleagues upon learning of the decision to bomb Syria, according to Hersh. We KNOW that there was no chemical attack … the Russians are furious. Claiming we have the real intel and know the truth … I guess it didn’t matter whether we elected Clinton or Trump.”

    According to Hersh, Trump “could not be swayed” by 48 hours worth of intense briefings and decision-making following the initial reports of the alleged chemical weapons attack. Hersh, who reportedly reviewed transcripts of real-time communications, explains that there is a “total disconnect” between the president and his military advisers and intelligence officials.

    As is the case with Syrian military operations, Russia gave the U.S. details of the carefully planned attack on a meeting in Khan Sheikhoun, according to Hersh’s  admittedly anonymous sources. The Russians had employed a drone to the area days before the attack to develop the intelligence necessary to coordinate it.

    According to Hersh’s sources, the United States and its Russian counterpart routinely share information regarding planned attacks in order to avoid collisions. However, they also permit “coordination,”  a practice that involves giving the other side a “hot tip about a command and control facility,” which then helps the other side carry out their attack.

    Therefore, there was no surprise chemical weapons attack, as the Trump administration alleged. In fact, Russia had actually warned its American counterpart on the off-chance that there were any CIA assets on the ground who should have been forewarned of an impending attack.

    “They [the Russians] were playing the game right,” a senior adviser told Hersh.

    Hersh continues:

    “Russian and Syrian intelligence officials, who coordinate operations closely with the American command posts, made it clear that the planned strike on Khan Sheikhoun was special because of the high-value target. ‘It was a red-hot change. The mission was out of the ordinary – scrub the sked,’ the senior adviser told me. ‘Every operations officer in the region’ – in the Army, Marine Corps, Air Force, CIA and NSA – ‘had to know there was something going on. The Russians gave the Syrian Air Force a guided bomb and that was a rarity. They’re skimpy with their guided bombs and rarely share them with the Syrian Air Force. And the Syrians assigned their best pilot to the mission, with the best wingman.’ The advance intelligence on the target, as supplied by the Russians, was given the highest possible score inside the American community.

    Hersh confirms Russia’s account of the incident, in which Russian authorities alleged that the Syrian Air Force bombed a “terrorist warehouse,” and that secondary bombings dispersed dangerous chemicals into the atmosphere.

    Strangely, if Hersh’s reporting is accurate, it is not clear why Russia didn’t give the detailed account at the time — and why the Russians didn’t emphasize that they had shared information with the U.S. military well in advance of the attack, as this would have cast further doubt on the official U.S. narrative. In that context, Russia could have provided proof of any prior communications that took place within the so-called deconfliction channel. It also doesn’t explain why Russia’s president, Vladimir Putin, appeared to endorse two competing theories behind the events at Khan Sheikhoun.

    However, Hersh continues:

    “A team from Médecins Sans Frontières, treating victims from Khan Sheikhoun at a clinic 60 miles to the north, reported that ‘eight patients showed symptoms – including constricted pupils, muscle spasms and involuntary defecation – which are consistent with exposure to a neurotoxic agent such as sarin gas or similar compounds.’ MSF also visited other hospitals that had received victims and found that patients there ‘smelled of bleach, suggesting that they had been exposed to chlorine.’ In other words, evidence suggested that there was more than one chemical responsible for the symptoms observed, which would not have been the case if the Syrian Air Force – as opposition activists insisted – had dropped a sarin bomb, which has no percussive or ignition power to trigger secondary explosions. The range of symptoms is, however, consistent with the release of a mixture of chemicals, including chlorine and the organophosphates used in many fertilizers, which can cause neurotoxic effects similar to those of sarin.

    Hersh is not the first high-profile investigator to cast major doubts on the Trump administration’s official narrative regarding the events at Khan Sheikhoun. MIT professor emeritus Theodore Postol, who previously worked as a former scientific advisor to the U.S. military’s Chief of Naval Operations, poked major holes in the claims that the Syrian government had launched a chemical weapons attack at Khan Sheikhoun, noting the “politicization” of intelligence findings (you can access all of his reports here). Postol argued that there was no possible way U.S. government officials could have been sure Assad was behind the attack before they launched their strike, even though they claimed to be certain. Postol took the conversation even further, asserting that the available evidence pointed to an attack that was executed by individuals on the ground, not from an aircraft. Former weapons inspector Scott Ritter had similar concerns regarding the White House’s conclusions, as did former U.K. ambassador to Syria Peter Ford. The mainstream media paid almost zero attention to these reports, a slight that exposes the media’s complicity in allowing these acts of war to go ahead unquestioned.

    “This was not a chemical weapons strike,” the adviser said. “That’s a fairy tale. If so, everyone involved in transferring, loading and arming the weapon – you’ve got to make it appear like a regular 500-pound conventional bomb – would be wearing Hazmat protective clothing in case of a leak. There would be very little chance of survival without such gear. Military grade sarin includes additives designed to increase toxicity and lethality. Every batch that comes out is maximized for death. That is why it is made. It is odorless and invisible and death can come within a minute. No cloud. Why produce a weapon that people can run away from?”

    According to Hersh’s source, within hours of viewing the footage of the ‘attack’ and its aftermath, Trump ordered his national defense apparatus to plan for retaliation against the Syrian government. Hersh explains that despite the CIA and the DIA (Defense Intelligence Agency) having no evidence that Syria even had sarin, let alone that they used it on the battlefield, Trump was not easily persuaded once he had made up his mind.

    “Everyone close to him knows his proclivity for acting precipitously when he does not know the facts,” the adviser told Hersh. He doesn’t read anything and has no real historical knowledge. He wants verbal briefings and photographs. He’s a risk-taker. He can accept the consequences of a bad decision in the business world; he will just lose money. But in our world, lives will be lost and there will be long-term damage to our national security if he guesses wrong. He was told we did not have evidence of Syrian involvement and yet Trump says: ‘Do it.”’ [emphasis added]

    At a meeting on April 6, 2017, at his Mar-a-Lago resort in Florida, Trump spoke with his national security officials regarding the best way to move forward. The meeting was not to decide what to do, Hersh explains, but how best to do it (and how to keep Trump as happy as possible).

    Trump was given four options. The first one was dismissed at the outset because it involved doing nothing. The second one was the one that was decided upon: a minimal show of force (with advance warning to Russia). The third option was the strike package that Obama was unable to implement in 2013 in the face of mounting public opposition and Russia’s threats of intervention. This plan was Hillary Clinton’s ultimate fantasy considering she was encouraging it moments before Trump’s lone strike actually took place. However, this would have involved extensive air strikes on Assad’s airfields and would have drawn in the Russian military to a point of no return. The fourth option involved the direct assassination of the Syrian president by bombing his palaces, as well as his underground bunkers. This was not considered, either.

    As we all witnessed in April, the second option was adopted, and the airbase Trump struck was up and running again in less than 24 hours, making it a very symbolic and empty show of force.

    Hersh’s insight into the way Trump is conducting his foreign policy does not bode well for the future of the Syrian conflict (or anywhere else in the world, for that matter). Trump was not interested in the intelligence or the facts on the ground — if he had been, he would have waited until an investigation had determined culpability before ordering a strike.

    Missing from Hersh’s account, however, is the fact that it was newly appointed national security advisor General H.R. McMaster who laid out the military strike proposals to the president at his resort on April 6. McMaster replaced former national security advisor Michael Flynn after the latter was forced to resign due to leaks from within the intelligence community. Due to Flynn’s alleged ties to Russia, it seems unlikely he would have proposed such a strike on Russia’s close ally to begin with.

    It is unclear whether McMaster proposed the strikes in order to appease Trump or because McMaster ultimately wants Trump to adopt a tougher stance against Syria and Russia; McMaster has a history of pro-interventionism and anti-Russian sentiment.

    Those commentators who can review these startling revelations but still condone Trump’s actions with a lazy ‘Assad is still a bad guy and must be overthrown’ mindset argument are being intellectually dishonest, with themselves and others. As was the case in 2013, there is still very little evidence that Assad has ever used chemical weapons — particularly in the attacks that the U.S. has tried to pin on him — yet this is the standard by which the corporate media and our respective governments have instructed us to judge Assad. Even without this conclusive evidence, shortly after the April events, U.S. ambassador to the U.N. Nikki Haley stated Assad will fall from power.

    Hersh’s investigation bolsters many claims that the U.S. acted rashly without first conducting or ordering an impartial inquiry regarding what happened in April of this year. Hersh’s report also serves as a reminder to the world of the warpath we are continuing down, spearheaded by an impulsive and reckless megalomaniac who has no interest in ascertaining fact from fiction.

    *  *  *

    Liberty Blitzkrieg's Mike Krieger also notes that just as interesting as the information above, is the fact that Hersh had to turn to a German newspaper to publish it. This makes perfect sense, because the one area where U.S. corporate press maintains unassailable consistency is when it comes to cheerleading for an interventionist, imperial foreign policy based on unverified claims and outright lies. Trump’s little fireworks display checked all those boxes, which is why the corporate media drooled all over the bombing, celebrating Trump for the first time of his Presidency. As Hersh notes:

    After the meeting, with the Tomahawks on their way, Trump spoke to the nation from Mar-a-Lago, and accused Assad of using nerve gas to choke out “the lives of helpless men, women and children. It was a slow and brutal death for so many … No child of God should ever suffer such horror.”

     

    The next few days were his most successful as president. America rallied around its commander in chief, as it always does in times of war.

     

    Trump, who had campaigned as someone who advocated making peace with Assad, was bombing Syria 11 weeks after taking office, and was hailed for doing so by Republicans, Democrats and the media alike. One prominent TV anchorman, Brian Williams of MSNBC, used the word “beautiful” to describe the images of the Tomahawks being launched at sea. Speaking on CNN, Fareed Zakaria said: “I think Donald Trump became president of the United States.” 

     

    A review of the top 100 American newspapers showed that 39 of them published editorials supporting the bombing in its aftermath, including the New York Times, Washington Post and Wall Street Journal.

    Which once again goes to show just how worthless, irresponsible and downright dangerous U.S. corporate media really is.

    Finally, as Ron Paul rages below, Republicans cannot let go of "regime change" for Syria and new Cold War with Russia — even as the Democrats are starting to back away. Will the mainstream media stick with the narrative as well? Or is it all about to come crashing down?

  • McMansions Are Back And They're More Hideous Than Ever

    The McMansion rose to prominence in the early-to-mid-2000s and to this day is the epitome of the excesses created by the biggest mortgage bubble in the history of mankind.  In suburbs all across America, these 3,000 – 5,000 square foot, cookie-cutter monstrosities, with their foam pillars and lots that were just barely larger than the footprint of the houses themselves, were popping up faster than you could say “subprime mortgage.”

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    Unfortunately, as we’re forced to report frequently here, Americans tend to have very short-term memories and can’t seem but help but constantly repeat the sins of their past.  As such, it’s hardly a surprise that the average size of new homes in the U.S. is once again skyrocketing at an even faster rate than the early part of this century.

     

    Apparently people in the Midwest managed to maintain some level of modesty in the early 2000’s but have since decided ‘modesty’ is massively overrated.

     

    Meanwhile, the return of the McMansion epidemic is also helping to push home prices back to all-time highs.

     

    Meanwhile, if you can’t beat em, as the saying goes, then you might as well mercilessly mock and ridicule them…or something like that.  Luckily, as the Washington Post points out today, that is where “McMansion Hell” comes in.

    Kate Wagner, an architecture critic, wishes America would have learned its lesson about McMansions the first time around. She spends her free time tearing apart their architectural anachronisms on her blog, McMansion Hell.

     

    Wagner describes McMansions as a particular artifact of economic history, one whose physical form was the product of a new American pastime: flipping houses.

     

    And, since Americans will never stop building these hideous dwellings, McMansion Hell should be able to provide us with hours of entertainment for years to come.

    “They were built to sell in the year they were selling, not for future generations,” said Wagner. “These houses are kind of disfigured, because they were built from the inside out, to have the most amenities to sell faster.”

     

    A culture of house flipping helped to quantify certain home improvements, like the addition of colossal marble islands and palatial foyers designed to grab the attention of buyers. That gave these houses even more of a cookie-cutter feel.

     

    “It’s about invoking the symbolism of having a lot of money, but not spending a lot of money on the house,” says Wagner.

     

    Whoever owns the house above must be poor…not a single column.

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