Today’s News 12th August 2017

  • Does Kim Jong-Un's Strategy Make Sense?

    Authored by Federico Pieraccini via The Strategic Culture Foundation,

    "Looking at the recent North Korean testing of two intercontinental missiles, it may seem that Pyongyang wishes to increase tensions in the region. A more careful analysis, however, shows how the DPRK is implementing a strategy that will likely succeed in averting a disastrous war on the peninsula."

    In the last four weeks, North Korea seems to have implemented the second phase of its strategy against South Korea, China and the United States. The North Korean nuclear program seems to have reached an important juncture, with two tests carried out at the beginning and end of July. Both missiles seem capable of hitting the American mainland, although doubts still remain over Pyongyang's ability to miniaturize a nuclear warhead to mount it on an intercontinental ballistic missile (ICBM). However, the direction in which North Korea’s nuclear program is headed ensures an important regional deterrent against Japan and South Korea, and in some respects against the United States, which is the main reason for North Korea’s development of ICBMs. Recent history has repeatedly demonstrated the folly of trusting the West (the fate of Gaddafi remains fresh in our minds) and suggests instead the building up of an arsenal that poses a serious deterrence to US bellicosity.

    It is not a mystery that from 2009 to date, North Korea's nuclear capacity has increased in direct proportion to the level of distrust visited on Pyongyang by the West. Since 2009, the six-party talks concluded, Kim Jong-un has come to realize that the continuing threats, practices, and arms sales of the United States to Japan and South Korea needed to be thwarted in some way in the interests of defending the sovereignty of the DPRK. Faced with infinitely lower spending capacity than the three nations mentioned, Pyongyang chose a twofold strategy: to pursue nuclear weapons as an explicit deterrence measure; and to strengthen its conventional forces, keeping in mind that Seoul is only a stone’s throw away from North Korean artillery.

    This twofold strategy has, in little more than eight years, greatly strengthened the ability of the DPRK to resist infringement of its sovereignty. In contrast to the idea commonly promoted in the Western media, Pyongyang has promised not to use nuclear weapons first, reserving their use only in response to aggression against itself. In the same way, a pre-emptive attack on Seoul using traditional artillery would be seen as intolerable aggression, dragging Pyongyang into a devastating war. Kim Jong-un’s determination in developing conventional and nuclear deterrence has succeeded in establishing a balance of power that helps avoid a regional war and, in so doing, contributes to the strengthening of overall security in the region, contrary to what many believe.

    The reason the United States continues to raise tensions with Pyongyang and threaten a conflict is not out of a concern for the protection of her Japanese or South Korean allies, as one may initially be led to think. The United States in the region has a central objective that does not concern Kim Jong-un or his nuclear weapons. Rather, it is driven by the perennial necessity to increase forces in the region for the purposes of maintaining a balance of military force (Asian Pivot) and ultimately trying to contain the rise of the People's Republic of China (PRC). One might even argue that this strategy poses dangers not only to the entire region but, in the case of a confrontation between Washington and Beijing, the entire planet, given the nuclear arsenal possessed by the United States and the People's Republic of China.

    In this respect, the triangular relationship between China, North Korea and South Korea takes on another aspect. As always, every action is accompanied with a reaction. The statement that Beijing would prefer to get rid of the DPRK leadership is without foundation. Central in the minds of Chinese policy makers is the threat of a US containment that could undermine the country's economic growth. This strategic planning is well known in Pyongyang, and explains in part why the DPRK leadership still proceeds with actions that are not viewed well by Beijing. From the North Korean point of view, Beijing derives an advantage from sharing a border with the DPRK, which offers a friendly leadership not hostile to Beijing. Pyongyang is aware of the economic, political, and military burden of this situation, but tolerates it, receiving the necessary resources from Beijing to survive and develop the country.

    This complex relationship leads the DPRK to carry out missile tests in the hope of gaining many benefits. First of all, it hopes to gain a regional, and possibly a global, deterrence against any surprise attacks. Secondly, it forces South Korea to have a symmetrical response to DPRK missile tests, and this strategy, coming from North Korea diplomacy, is far from improvised or incongruous. In recent years, South Korea’s response has come in the form of the Terminal High Altitude Area Defense (THAAD) system, designed to intercept missiles. As repeatedly explained, it is useless against North Korean rockets, but poses a serious threat to the Chinese nuclear arsenal, as its powerful radars are able to scout much of China's territory, also being ideally positioned to intercept (at least in theory) a responsive nuclear strike from China. In a nutshell, THAAD is a deadly threat to China's strategic nuclear parity.

    From the point of view of the four nations involved in the region, each has different aims.

    For the United States, there are many advantages in deploying the THAAD: in increases pressure on China, as well as concludes an arms sale that is always welcomed by the military-industrial complex; it also gives the impression of addressing the DPRK nuclear problem adequately.

     

    South Korea, however, finds itself in a special situation, with the former president now under arrest for corruption. The new president, Moon Jae-in, would prefer dialogue rather than the deployment of new THAAD batteries. In any case, after the latest ICBM test, Moon required an additional THAAD system in the Republic of Korea, in addition to the launchers already there. With no particular options available to conduct a diplomatic negotiation, Seoul is following Washington in a spiral of escalation that certainly does not benefit the peninsula's economic growth.

     

    Ultimately, the PRC sees an increase in the number of THAAD carriers close to the country, and the DPRK is growing in its determination to pursue a nuclear deterrent.

     

    Indeed, the strategy of the Pyongyang is working: on the one hand, they are developing a nuclear weapon to deter external enemies; on the other, they are obligating the PRC to adopt a particularly hostile attitude towards South Korea’s deployment of THAAD. In this sense, the numerous economic actions of Beijing towards Seoul can be explained as a response to the deployment of the THAAD batteries. China is the main economic partner of South Korea, and this trade and tourism limitation is quite damaging to South Korea’s economy.

    This tactic has been used by North Korea for the last several years, and the results, in addition to the recent economic crunch between the PRC and South Korea have indirectly led to the end of the reign of the corrupt leader Park Geun-hye, an ever-present puppet in American hands. The pressure that the DPRK applies to bilateral relations between China and South Korea increases with each launch of an ICBM carrier, which is the logic behind these missile tests. Pyongyang feels justified in urging its main ally, China, to step up actions against Seoul to force it to compromise in a diplomatic negotiation with Pyongyang without the overbearing presence of its American ally pushing for war.

    The main problem in the relations between South Korea, China and North Korea is represented by American influence and the need to prevent a rapprochement between these parties. As already stated, the United States needs the DPRK to justify its presence in the region, aiming in reality at Chinese containment. Pyongyang has been isolated and sanctioned for almost 50 years, yet serves to secure China’s southern border in the form of a protected friend rather than an enemy. This situation, more than any United Nations sanction to which the PRC adheres, guarantees a lasting relationship between the countries. Beijing is well aware of the weight of isolationism and economic burden on North Korea, which is why Beijing is symmetrically increasing pressure on South Korea to negotiate.

    In this situation, the United States tries to remain relevant in the regional dispute, while not having the capacity to influence the Chinese decisions that clearly rely on other tactics, specifically putting pressure on South Korea. In military terms, as explained above, Washington can not start any military confrontation against the DPRK. The consequences, in addition to millions of deaths, would lead Seoul to break relations with Washington and seek an immediate armistice, cutting off the United States from negotiations and likely expelling US troops from its territory. Ultimately, there is no South Korean ability to influence the political process in the North while they continue to be flanked by the United States in terms of warfare (very aggressive joint exercises). The influence Washington can exert on Pyongyang is zero, having fired all cartridges with over half a century of sanctions.

    Conclusion

    The bottom line is that the United States cannot afford to attack the DPRK. Pyongyang will continue to develop its own nuclear arsenal, with Beijing's covert blessing in spite of its officially continuing to condemn these developments. At the same time, South Korea is likely to persevere with a hostile attitude, especially in regard to the deployment of new THAAD batteries. Sooner or later, Seoul will come to a breaking point as a result of further restrictions on trade between China and South Korea. As long as Seoul is able to absorb Chinese sanctions, little will change.

    What will lead to a major change in the region will be the economic effect of these restrictions that will eventually oblige Seoul to consider its role in the region and its future. Seoul's leadership is aware of three situations that will hardly change, namely: Pyongyang will never attack first; Beijing will continue to support North Korea rather than accept the United States on its border; and Washington is not able to bring solutions but only greater chaos and a worsening global economic situation to the region. In the light of this scenario, time is all on the side of Beijing and Pyongyang. Eventually the economic situation for Seoul will become unbearable, bringing it to the negotiating table with a weakened and certainly precarious position. Beijing and Pyongyang have a long-term common goal, which is to break the bond of submission between South Korea and the United States, freeing Seoul from Washington's neo-conservative programs to contain China (on a Russia containment model).

    Indirectly coordinated work between Beijing and Pyongyang is hardly understandable to Western analysts, but examining every aspect, especially with regard to cause-and-effect relationships, these decisions are not so incomprehensible and even more rational in a broader viewing of the region and its balance of power. On the one hand, Seoul sees the DPRK offering peace, stability and prosperity based on a framework agreement between Seoul, Pyongyang and Beijing. This would also particularly benefit South Korean trade with China, eventually returning to normal relationships between countries, with important economic benefits.

    The alternative is an alliance with Washington that would completely eliminate the economic benefits of a healthy relationship with Beijing. This could even potentially lead to a war involving millions of deaths, fought on South Korean soil and not in the United States. The United States does not offer any solutions to South Korea, either in the short or long term. The only thing Washington is offering is a fixed presence in the country, together with a stubborn anti-Chinese policy that would have serious economic consequences for Seoul.

    As paradoxical as it may seem, Kim Jong-un's rockets are much less of a threat than is Seoul’s partnership with Washington in the region, and in fact seem to offer Seoul the ultimate solution to the crisis in the peninsula.

  • Look Out Manhattan – Chinese Foreign Real-Estate Spending Plunges 82%

    Earlier this month, Morgan Stanley warned that commercial real estate prices in New York City, Sydney and London would likely take a hit over the next two years as Chinese investors pull out of foreign property markets.

    The pullback, they said, would be driven by China’s latest crackdown on capital outflows and corporate leverage, which they argued would lead to an 84% drop in overseas property investment by Chinese corporations during 2017, and another 18% in 2018.

    Sure enough, official data released by China’s Ministry of Commerce have proven the first part of Morgan Stanley’s thesis correct. Data showed that outbound investment in real estate was particularly hard hit during the first half of the year, plunging 82%.

    “According to official data, outbound investment by China’s real estate sector fell 82% year-on-year in the first half, to comprise just 2% of all outbound investment for the period.”

    Overall, outbound direct investment to 145 countries declined to $48.19 billion, an annualized drop of 45.8%, according to China Banking News.

    The decline is a result of a crackdown by Chinese authorities after corporations went on a foreign-acquisition spree that saw them spend nearly $300 billion buying foreign companies and assets, with China’s four most acquisitive firms accounting for $55 billion, or 18%, of the country’s total. The acquisitions aggravated capital outflows, creating a mountain of debt and making regulators uneasy. Late last month, Chinese authorities ordered Anbang Insurance Group to liquidate its overseas holdings. In June, authorities asked local banks to evaluate whether Anbang and three of its peers posed a “systemic risk” to the country’s financial system. As Morgan Stanley noted, these firms were responsible for billions of dollars of commercial real-estate investments in the US, UK, Australia and Hong Kong.

    The pullback will likely be equally as devastating for residential home prices. Average sales prices for Manhattan residential real estate has continued to climb, but cracks are starting to appear. As we pointed out two days ago, 25% of homes sold in 2Q still experienced a price cut, with that number rising to 40-60% in trendy neighborhoods like the Upper East Side.

    While falling real-estate prices would be an inconvenience for corrupt Chinese officials and other shady investors trying to stash their money as far away as possible from their homeland, they’d be a welcome relief for renters and young couples or individuals looking to buy their first home.

    Across the US, asking rents hit all-time highs earlier this year.

  • "We Can Barely Keep Up" – Prepper Panic-Buying Begins As WWIII Fears Grip America

    Authored by Mac Slavo via SHTFplan.com,

    As is often the case, most people wait until the last minute to prepare for the worst.

    As reported by CBS Detroit, one Army Surplus store owner reports that preparedness equipment is flying off the shelves:

    “We’ve been very busy. Unusually busy, I’d say,” Orr told WWJ’s Sandra McNeill. “It’s definitely an increase, just in selling all the normal prepper stuff, end of the world stuff. A lot of water prep stuff, food, MREs — the military meals.”

     

    And there’s been a substantial increase in the sale of a particular item they don’t sell much of — a so-called radiation antidote called potassium iodide.

     

     

    “It actually stops your thyroid from absorbing any radiation. So, it fills your thyroid with iodine, which it normally does anyways,” said Orr.

     

     

    Another popular request: gas masks. But most people looking for those will be out of luck.

     

    “Gas masks are a big thing too, but we only sell them as novelty,” said Orr.

    Ed Thomas, a spokesperson for TopTierGearUSA.com, which distributes high-end protective equipment for Nuclear, Biological and Chemical emergencies, says that their web site has seen a 1200% spike in orders in the last week.

    We’re barely keeping up with the inflow of orders and our staff is working double shifts just to get everything shipped. People are concerned with North Korea, World War III and what President Trump might do.

     

    I’ve never seen it at these levels.

     

    Everything… Anti radiation pills, gas masks, body suits and respiratory filters… people are trying to get their hands on these critical supplies in case this really happens.

     

    Our biggest concern is that our manufacturers won’t be able to keep up with demand.

    And it’s not just preparedness supplies. As Zero Hedge reports, bunker sales in California have skyrocket:

    While a global nuclear confrontation is generally viewed as a bad thing, for Ron Hubbard, President of Atlas Survival Shelters in Los Angeles, it has resulted in an economic windfall.  Here’s more from The Sacramento Bee:

    “It’s crazy, I’ve never seen anything like it,” Ron Hubbard, president of Atlas Survival Shelters, told Fox11.
     
     “It’s all over the country. I sold shelters today in North Carolina, Tennessee, Texas, Oklahoma, Louisiana, Oregon, Washington, Arizona, California.”

    As we’ve reported previously, the situation has gotten so serious that the island nation of Guam, recently threatened for annihilation by North Korea, has issued a nuclear emergency guide warning residents to not look at the flash or fireball following a nuclear detonation.

    President Trump announced Friday that the U.S. military is “locked and loaded,” ready to respond to North Korean aggression.

    With panic buying taking hold, it’s only a matter of time before prices for items like gas masks anti-radiation pills go through the roof. Following the Fukushima nuclear disaster in Japan, panicked U.S. West coast residents pushed prices for a single package to $200 on auction sites. Under normal circumstances, a package of the FDA approved pills sells for about $15.

  • IRS Reports 40% Surge In People Underpaying Their Tax Bills

    Paying taxes is just about as much fun as a root canal.  As such, apparently more and more people are just deciding not to do it.  As the Wall Street Journal points out today, the IRS saw a 40% surge in returns that owe tax penalties between 2010 and 2015.

    For reasons that aren’t clear, a growing number of people who pay taxes quarterly are getting their payments wrong and incurring penalties as a result. These taxpayers often owe estimated taxes because they have income that’s not subject to the same withholding as wages earned by employees.

     

    According to Internal Revenue Service data, the number of filers penalized for underpaying estimated taxes rose nearly 40% between 2010 and 2015—to 10 million from 7.2 million.

     

    In 2015, the total number of filers owing penalties may have exceeded the number filing estimated taxes, although final results aren’t out yet. This is possible because some who paid quarterly taxes may have made mistakes, and others who didn’t pay them should have.

     

    “The data suggest that millions of people don’t understand they need to pay quarterly taxes, or at least increase their withholding to avoid penalties,” says Eric Smith, an IRS spokesman.

     

    Estimated tax payments are Congress’s way of keeping non-wage earners from having an advantage over wage earners. More than 80% of taxpayers have wages that are typically subject to withholding, and most people pay most of their income tax this way. Thus the law requires people with other types of income to make quarterly payments based on amounts received during each period.

    Taxpayers with a mixture of wage and non-wage income must either pay tax quarterly or raise their withholding to cover the non-wage income. If total payments don’t meet certain thresholds, then the taxpayer owes a penalty on the underpayment based on interest rates charged by the IRS. Currently the rate is 4%.

    Of course, there’s any number of reasons why people may be underpaying their tax bills.  Some people, you know…those who count themselves among the 95 million ‘discouraged’ workers who have left the work force completely, have been forced to take on random contract work to make ends meet and simply don’t understand that they have to make quarterly estimated tax payments.

    That said, others understand the tax system perfectly well and are all too happy to take a 4% loan from the federal government courtesy of the Janet Yellen’s accommodative interest rate policies.

    Tax preparers suspect several factors are at work. For most of the period penalties grew, the interest rate was 3%—the lowest in decades, making the pain of paying them lower as well.

     

    “Some people don’t mind paying the toll, especially if their income bunches in the last quarter, and they just owe it for a few months,” says Don Williamson, noting the decision also could explain why average penalties have declined. Mr. Williamson is a certified public accountant who heads the Kogod Tax Policy Center at American University and has a private practice.

    To that end, and while unclear if it’s true, Floyd Mayweather’s tax attorney, Jeffrey Morse, recently said that he was simply taking advantage of Yellen’s low rates by ‘deferring’ his $22 million tax bill from 2015.  Of course, we suspect this could be just a clever way to avoid fessing up to blowing through nearly $1 billion in career prize winnings…because that would just be embarrassing.

    “If he is investing money and getting a rate of return that far exceeds what he has to pay the IRS in interest, then any smart business person is going to take advantage of that deferral.”

    //platform.twitter.com/widgets.js

     

    Then again, maybe it’s all much more simple and people aren’t paying their taxes because they need the money to fund that $500 monthly BMW lease payment they could never afford but finance companies were all too willing to underwrite…just a thought.

  • Social Security Requires A Bailout That's 60x Greater Than The 2008 Emergency Bank Handout

    Authored by Simon Black via SovereignMan.com,

    A few weeks ago the Board of Trustees of Social Security sent a formal letter to the United States Senate and House of Representatives to issue a dire warning: Social Security is running out of money.

    Given that tens of millions of Americans depend on this public pension program as their sole source of retirement income, you’d think this would have been front page news…

    … and that every newspaper in the country would have reprinted this ominous projection out of a basic journalistic duty to keep the public informed about an issue that will affect nearly everyone.

    But that didn’t happen.

    The story was hardly picked up.

    It’s astonishing how little attention this issue receives considering it will end up being one of the biggest financial crises in US history.

    That’s not hyperbole either– the numbers are very clear.

    The US government itself calculates that the long-term Social Security shortfall exceeds $46 TRILLION.

    In other words, in order to be able to pay the benefits they’ve promised, Social Security needs a $46 trillion bailout.

    Fat chance.

    That amount is over TWICE the national debt, and nearly THREE times the size of the entire US economy.

    Moreover, it’s nearly SIXTY times the size of the bailout that the banking system received back in 2008.

    So this is a pretty big deal.

    More importantly, even though the Social Security Trustees acknowledge that the fund is running out of money, their projections are still wildly optimistic.

    In order to build their long-term financial models, Social Security’s administrators have to make certain assumptions about the future.

    What will interest rates be in the future?
    What will the population growth rate be?
    How high (or low) will inflation be?

    These variables can dramatically impact the outcome for Social Security.

    For example, Social Security assumes that productivity growth in the US economy will average between 1.7% and 2% per year.

    This is an important assumption: the higher US productivity growth, the faster the economy will grow. And this ultimately means more tax revenue (and more income) for the program.

    But -actual- US productivity growth is WAY below their assumption.

    Over the past ten years productivity growth has been about 25% below their expectations.

    And in 2016 US productivity growth was actually NEGATIVE.

    Here’s another one: Social Security is hoping for a fertility rate in the US of 2.2 children per woman.

    This is important, because a higher population growth means more people entering the work force and paying in to the Social Security system.

    But the actual fertility rate is nearly 20% lower than what they project.

    And if course, the most important assumption for Social Security is interest rates.

    100% of Social Security’s investment income is from their ownership of US government bonds.

    So if interest rates are high, the program makes more money. If interest rates are low, the program doesn’t make money.

    Where are interest rates now? Very low.

    In fact, interest rates are still near the lowest levels they’ve been in US history.

    Social Security hopes that ‘real’ interest rates, i.e. inflation-adjusted interest rates, will be at least 3.2%.

    This means that they need interest rates to be 3.2% ABOVE the rate of inflation.

    This is where their projections are WAY OFF… because real interest rates in the US are actually negative.

    The 12-month US government bond currently yields 1.2%. Yet the official inflation rate in the Land of the Free is 1.7%.

    In other words, the interest rate is LOWER than inflation, i.e. the ‘real’ interest rate is MINUS 0.5%.

    Social Security is depending on +3.2%.

    So their assumptions are totally wrong.

    And it’s not just Social Security either.

    According to the Center for Retirement Research at Boston Collage, US public pension funds at the state and local level are also underfunded by an average of 67.9%.

    Additionally, most pension funds target an investment return of between 7.5% to 8% in order to stay solvent.

    Yet in 2015 the average pension fund’s investment return was just 3.2%. And last year a pitiful 0.6%.

    This is a nationwide problem. Social Security is running out of money. State and local pension funds are running out of money.

    And even still their assumptions are wildly optimistic. So the problem is much worse than their already dismal forecasts.

    Understandably everyone is preoccupied right now with whether or not World War III breaks out in Guam.

    (I would respectfully admit that this is one of those times I am grateful to be living on a farm in the southern hemisphere.)

    But long-term, these pension shortfalls are truly going to create an epic financial and social crisis.

    It’s a ticking time bomb, and one with so much certainty that we can practically circle a date on a calendar for when it will hit.

    There are solutions.

    Waiting on politicians to fix the problem is not one of them.

    The government does not have a spare $45 trillion lying around to re-fund Social Security.

    So anyone who expects to retire with comfort and dignity is going to have to take matters into their own hands and start saving now.

    Consider options like SEP IRAs and 401(k) plans that have MUCH higher contribution limits, as well as self-directed structures which give you greater influence over how your retirement savings are invested.

    These flexible structures also allow investments in alternative asset classes like private equity, cashflowing royalties, secured lending, cryptocurrency, etc.

    Education is also critical.

    Learning how to be a better investor can increase your investment returns and (most importantly) reduce losses.

    And increasing the long-term average investment return of your IRA or 401(k) by just 1% per year can have a PROFOUND (six figure) impact on your retirement.

    These solutions make sense: there is ZERO downside in saving more money for retirement.

    But it’s critical to start now. A little bit of effort and planning right now will pay enormous dividends in the future.

  • India Deploys More Troops Along China Border, Raises "Caution" Level

    With the world obsessing over every increasingly childish outburst in the daily back and forth between Trump and Kim Jong-Un, another conflict which has so far gone largely unnoticed by the global media continues to grow on the border between India and China.

    As reported yesterday, in the most recent escalation between the two nuclear powers, the Indian Army ordered the evacuation of a village close to the Doklam India-Bhutan-China tri-junction amid to a standoff between Indian and Chinese soldiers. This takes place just days after China turned the war threat amplifier up to ’11’ by threatening India (in an article published a Chinese state-controlled newspaper) that it could conduct a “small-scale military operation” to expel Indian troops from a contested region in the Himalayas.

    For those who need a reminder, the latest geopolitical standoff between India and China started in June, after Chinese troops started building a road on a remote plateau which is disputed by China and Bhutan. Indian troops countered by moving to the flashpoint zone to halt the work, with China accusing them of violating its territorial sovereignty and calling for their immediate withdrawal.

    After adding a large number of troops to the region, China then sharply escalated when a Chinese Ministry of Defense warned explicitly that Indian troops must leave the contested area if they do not want war.

    Then, earlier this week, tensions escalated further when as the Independent reported, the Chinese state-owned Global Times quoted a research fellow at the Institute of International Relations of the Shanghai Academy of Social Sciences who said China is preparing to initiate a “limited war” to push Indian soldiers out of the area.

     

    To this, the Indian response was the abovementioned forced evacuation of a few hundred villagers living in Nathang, who were asked to vacate their houses immediately, according to News18. Nathang is 35 km from the site of the two-month old standoff.

    Which brings us to today, and the latest report by PTI India, according to which in a strategically key move, India has poured in more troops along the entire stretch of its border with China in Sikkim and Arunachal Pradesh in the face of heightened rhetoric by Beijing over the Dokalam standoff, according to senior government officials on Friday.

    Furthermore, the “caution level” among the troops has also been raised, the officials told PTI.

    The Indian officials said that the decision to increase the deployment along the nearly 1,400-km Sino-India border from Sikkim to Arunachal Pradesh was taken after carrying out a detailed analysis of the situation and considering China’s aggressive posturing against India on Dokalam.

    “The troop level along the border with China in the Sikkim and Arunachal sectors has been increased,” said the officials on condition of anonymity because of the sensitive nature of the information. The Army’s Sukna-based 33 Corps as well as 3 and 4 corps based in Arunachal and Assam are tasked to protect the sensitive Sino-India border in the eastern theatre.

    However, the officials declined to give any figure or percentage of increased deployment, saying they cannot disclose “operational details.”

    According to defence experts, roughly 45,000 troops including personnel having completed the weather acclimatisation process are normally kept ready along the border at any given time, but not all are necessarily deployed. The soldiers, deployed over 9,000 feet, have to go through a 14-day-long acclimatisation process.

    The officials, however, said there is no enhancement of troops at the India-China-Bhutan tri-junction in Dokalam where around 350 army personnel are holding on to their position for nearly eight weeks after stopping Chinese troops from constructing a road on June 16.

    Bhutan and China have competing claims over Dokalam, and are negotiating a resolution. Meanwhile, China has been ramping up bellicose rhetoric against India over the last few week – in many aspect echoing either side in the US-North Korea conflict – demanding immediate withdrawal of Indian troops from Dokalam. Both the Chinese and Indian state medias have carried a barrage of critical articles on the Dokalam stand-off slamming India.

    India’s External Affairs Minister Sushma Swaraj recently said both sides should first pull back their troops for any talks to take place, and favoured a peaceful resolution of the border standoff. India also conveyed to the Chinese government that the road construction would represent a significant change of status quo with serious security implications for it.

    So far, not only has neither side pulled back troops, but as today’s latest news of increasing deployment suggests, a full blown conflict, one whose consequences could be far more devastating than a US military intervention in North Korea, looks increasingly likely with every passing day.

  • School Board Removes "Lynch" From The Name Of Three Schools Because It Was Deemed Offensive

    Authored by Daniel Lang via SHTFplan.com,

    Every time that the absurdity of political correctness reaches a new peak in our culture, it’s easy to assume that it can’t get any worse.

    But if we’ve learned anything over the past few years, it’s that it can always get worse.

    For people who have their entire identity wrapped up in being oppressed and downtrodden, the limit to what they can be offended by is absolutely bottomless. Which is why it shouldn’t come as a surprise that a school board in Oregon recently voted to remove the name “Lynch” from several elementary schools.

    You can probably guess why.

    Lynch Meadows Elementary, Lynch Woods Elementary and Lynch View Elementary were all named after a local family who donated land to the school district in the late 1800s.

     

    In recent years, school officials say they have received complaints from people who are concerned about the name’s connotation with lynching.

     

    ‘There were an increasing amount of questions and some complaints from families of color around the name,’ Centennial School District Superintendent Paul Coakley, who is black, told the Oregonian.

     

    ‘Our diversity is increasing every year, with families coming in from Northeast Portland and out of state, so [the names] needed to be looked at,’ he added.

    The fact that “Lynch” is an actual surname held by perhaps tens of thousands of people and has been around for hundreds of years, was of no consequence to the perpetually offended people who wanted these schools to change their names.

    “I don’t think any of you have ever seen a picture where one of your decedents was hanging from a tree,” said one man who testified in favor of the name change.

     

    “I know the majority of you guys are white and it’s hard to know how that word could have an effect but it does,” added a young student who testified. “If a simple name change could make students feel safe, then why are we holding back?”

    Actually, there is a very good and practical reason why these school names shouldn’t be changed. We have to ask ourselves, where does this end?

    Perhaps any “people of color” who happen to work for Merrill Lynch should be outraged.

     

    Maybe director David Lynch should have his name scrubbed from his films.

     

    Maybe the residents of Lynch Town Kentucky, as well as 10 other cities across the country that happened to be named “Lynchburg” should vote to change the names of their communities.

     

    Maybe this surname should be banned entirely. After all, we can’t let these people be a walking reminder of a terrible crime that they had nothing to do with, now can we?

    In case you’ve ever wondered why the culture of political correctness is always capable of reaching new levels of madness, now you know.

    Once you permit one absurdity, every absurdity is on the table.

     

  • Thrill-Seeking Chinese Tourists Rush To Visit North Korea "Before The Regime Collapses"

    While nearly two-thirds of Americans view North Korea as a “serious threat” and most would rather vacation literally anywhere else following the death of college student Otto Warmbier, Chinese adventure-seekers are visiting the North in ever-greater numbers, according to Reuters. The wave of tourism has been inspired by the fear that the latest escalation between Pyongyang and Washington might lead to the toppling of the Kim regime, which has successfully kept the forces of modernization at bay for decades, offering tourists a rare opportunity to catch a glimpse into the past that some say reminds them of a "young" China.

    North Korea has become a favorite destination among wealthier, more adventurous Chinese travelers. Another tour operator who targets the affluent said he’s been fielding more questions about whether it’s safe to visit the North, Reuters reported.

    "But those that inquire often already have their heart set on going," the operator, who declined to be named, told Reuters. "The idea of a bit of danger adds to the thrill and mystery of North Korea."

    While the looming threat of nuclear annihilation is keeping some tourists at bay, more daring travelers say they are trying to visit the North before regime change brings the country into the 21st century, according to one tour guide.

    "There have been quite a few tourists in my groups who say they want to see North Korea in its reclusive state while they can," he said.

     

    "It won't be the same if the regime collapses."

    China stopped publishing national data about tourism to North Korea in 2012. But regional data show that more than 580,000 Chinese from the province of Dandong crossed the border into North Korea during the second half of 2016, more than the double the 237,000 Chinese who visited the country during 2012.

    “China's tourism authority has not published a breakdown of the total number of Chinese visitors to North Korea since 2012, when it said 237,000 made the trip.

     

    But the number traveling just from Dandong spiked to 580,000 in the second half of 2016 alone, according to the state-run China News Service. The report said 85 percent of Chinese tourist visits to North Korea originated from Dandong.

     

    That's still only a fraction of the 8 million Chinese who visited South Korea in 2016.”

    According to Reuters, tourists can take ferries or charter speedboats down the Yalu River – the border between the North and China – to catch a glimpse of North Korea villages and the heavily armed guards who patrol the border.

    Other fun activities include paying respects to a statue of Kim il-Sung.

    “A flyer for the one-day tour to Sinijiu tout a trip to the city’s central plaza, where you can pay respects to a bronze statue of North Korea's founding president Kim il-Sung, as well as visits to a cosmetics factory, a revolutionary history museum, art history museum and a cultural park.

     

    "You can feast on the North Korean specialty food by warm and hospitable North Koreans," it says.

    As we reported last month, trade between China and North Korea expanded by 10% during the first half of the year, as have the number of border crossings. Meanwhile, traffic, especially on lower-end group tours, has grown steadily to one of the world's most isolated states over the past few years, despite North Korea's persistent nuclear and missile tests, which have elicited increasingly tight U.N. sanctions.

    Few of the Chinese who spoke to Reuters were concerned about the North’s missile tests, or the economic sanctions imposed by the UN. Most said they saw the opportunity to visit a “piece of history” as too attractive to pass up.

    “Undeterred by escalating tensions between Pyongyang and Washington rattling nerves globally, a steady stream of tourists from China each morning passes through the immigration checkpoint at the border trading hub of Dandong.

     

    Greeting them on the North Korean side are dozens of tour buses, collecting them for itineraries ranging from a day in neighboring Sinijiu to a week visiting North Korea's main cities, including the capital Pyongyang.

     

     "We're curious. We want to see how they live," Xu Juan said on Thursday before crossing the Yalu River, which marks the border between the two countries. Xu was traveling with friends and family from Hangzhou, in eastern China.

     

    "I just want the sense of nostalgia, to see a country that is poor, like (China was) when I was young," said a man in his early 50s, from Jilin province, declining to give his name.”

    If the Chinese government has its druthers, the North’s status as a living wax museum likely won’t change any time soon: According to an article in the Global Post, the Communist Party has vowed to step in if the US or South Korea tries to topple the Kim regime.

    Though no official US records are available, it’s believed that hundreds of adventure-seeking US tourists would visit North Korea every year. Typically, they would arrange tours through Switzerland, or sign on with a Chinese tour company based near the border. However, relations between the two countries have deteriorated to such a degree that any US tourist crazy enough to visit the North should get it over with soon: The State Department has banned US passport holders from traveling to the North after Sept. 1.

    For any American hoping to visit a foreign country ruled by a hostile government, we hear Eritrea is beautiful in the fall.
     

  • This Is How America Would Wage A Nuclear War Against North Korea

    Authored by Dave Majumdar via The National Interest,

    "It is time to think about the unthinkable…"

    The standoff between the United States and North Korea continues to escalate with neither side willing to back down.

    With each passing day, the possibility of open warfare breaking out seems to increase as each side ups the ante. Indeed, President Donald Trump has ratcheted up his rhetoric in recent days—seemingly threatening to launch a nuclear first strike against North Korea.

    “North Korea best not make any more threats to the United States,” Trump told reporters at his golf club in Bedminster, New Jersey.

     

    “They will be met with fire and fury like the world has never seen. He has been very threatening beyond a normal state and as I said they will be met with fire and fury and frankly power the likes of which this world has never seen before.”

    Just hours later, Kim Jong-un’s regime in Pyongyang threatened to preemptively strike at American forces given even a “slight sign of the U.S. provocation.” That, according to the North Korean statement, would include a “beheading operation” such as a special operations forces raid aimed at assassinating Kim.

    “The U.S. should remembered, however, that once there observed a sign of action for ‘preventive war’ from the U.S., the army of the DPRK will turn the U.S. mainland into the theatre of a nuclear war before the inviolable land of the DPRK turns into the one,” reads a North Korean Foreign Ministry statement.

     

    “We do not hide that we already have in full readiness the diversified strategic nuclear strike means which have the U.S. mainland in our striking range.”

    Meanwhile, Defense Secretary Jim Mattis—while taking a more measured tone—issued a statement on August 9 warning North Korea that it must give up its nuclear weapons. “The DPRK [Democratic People’s Republic of Korea] must choose to stop isolating itself and stand down its pursuit of nuclear weapons,” Mattis said. “The DPRK should cease any consideration of actions that would lead to the end of its regime and the destruction of its people.”

    Mattis also warned that the United States would continue to maintain overwhelming nuclear superiority over Pyongyang. “While our State Department is making every effort to resolve this global threat through diplomatic means, it must be noted that the combined allied militaries now possess the most precise, rehearsed and robust defensive and offensive capabilities on Earth,” Mattis said. “The DPRK regime’s actions will continue to be grossly overmatched by ours and would lose any arms race or conflict it initiates.”

    If tensions with North Korea boil over into open warfare—or if Trump decides to launch a preemptive strike—there are military options available to the United States. However, the collateral damage that might be wrought onto South Korea and Japan could be devastating.

    “We would not necessarily need to resort to a nuclear strike,” one retired Defense Department official told The National Interest.

     

    “We have conventional capabilities and capacity to take out many of the threats we are most concerned with. It wouldn't be easy, of course.”

    Another high-ranking former senior defense official said that North Korea is a complex, multi-dimensional problem. It is not an issue that can be solved by the military or even the United States by itself. All of the stakeholders in the Western Pacific including Japan, South Korea, China, Russia and United States have to be part of the equation. “Endorsing Japan and South Korea seeking their own nuclear deterrent force may get China’s attention,” the former senior defense official said. “There are many such options available and that needs to be played out before resorting to the military option is the best way ahead.”

    But what are the military options available to the United States should it come to war?

    Arms control advocates note that a preventative nuclear first strike would be a gross violation of international law. “Talk of targeting North Korea with nuclear weapons is delusional and should be off the table,” Kelsey Davenport, director for nonproliferation policy at the Arms Control Association, told The National Interest. “In addition to the gross illegality of a preventative nuclear strike, the humanitarian, economic and environmental consequences would be devastating—and not just contained within North Korea’s borders. Washington would be putting U.S. allies at serious risk, both from the fallout, but also from a North Korean counter attack.”

    If Trump’s words are taken at face value and a nuclear first strike is a real option that he is considering, the U.S. Air Force’s fleet of twenty Northrop B-2 Spirit stealth bombers will likely have to shoulder the burden.

    “We haven't had tactical nukes in the fleet since the Bush I administration, so no first strike will come from the sea,” James R. Holmes, professor of strategy at the U.S. Naval War College—speaking in a personal capacity—told The National Interest.

     

    “An ICBM or SLBM strike could be misinterpreted by China and Russia as against them, so that's probably out as well. My guess would be that USAF bombers, probably B-2s, would carry out the mission.”

    As for conventional options, the B-2 can carry a pair of 30,000 pound GBU-57A/B Massive Ordnance Penetrator bombs, but the U.S. Air Force only has a handful of those weapons in its inventory. It is not clear if there are enough GBU-57s available to substantially damage the North Korean nuclear program, let alone destroy it.

    “On the conventional side, there are bunker-busting munitions. We're back to the USAF as the primary executor of the operation, with THAAD and Aegis ships providing the defense against missile launches,” Holmes said.

     

    “How effective bunker busters would be would depend on how many sites need to be struck, how deep and extensive the bunkers are, and whether we could concentrate enough fire on them to do the job.”

    Davenport agreed that the United States has conventional military options—but there is no guarantee of success. Moreover, North Korea could retaliate with its road-mobile ballistic missiles, which are designed to ride out a first strike by dispersing.

    “The United States has non-nuclear options in the region for targeting North Korea’s nuclear assets, such as airstrikes and cruise missiles,” Davenport said.

     

    “But while a conventional strike would be less devastating, there is still no guarantee that the United States would hit all of Korea’s nuclear assets. The U.S. has fewer intelligence options at its disposal in North Korea, and Pyongyang has mobile nuclear-capable missiles that are more difficult to track.”

    Even if Trump were to resort to the nuclear option, there are questions as to how effective such an attack would be.

    “I guess the answer depends on how you define effective,” Holmes said.

     

    “One imagines we could take out the program with nukes, but at what cost? Even apart from the obvious loss of life and material damage, you're talking about nuking a country that is centrally located among American allies and prospective foes.”

    In fact, the collateral damage to the United States’ network of alliances and Washington’s standing in the world could be catastrophic.

    “There would be a very real prospect of breaking our alliances with Japan and South Korea and assuring permanent enmity from China and Russia,” Holmes said.

     

    “We would also place our position as guarantor of the international order in jeopardy. As you suggest, it's hard for an international pariah to lead by example. So my answer would be: a first strike wouldn't be effective even if it worked. The returns don't justify the enormous costs.”

    Another factor to consider is that a military attack that is intended to disarm North Korea’s nuclear forces might actually prompt a nuclear retaliation.

    “If the North Korean regime thought is nuclear deterrent was at risk, either from a nuclear or conventional strike, Pyongyang might miscalculate and launch its own nuclear weapons,” Davenport said.

     

    “A nuclear exchange of any size would have devastating regional consequences. Even a strike targeted solely at taking out North Korea’s intercontinental ballistic missiles runs the risk of being misinterpreted by Pyongyang as part of a larger military operation.”

    Indeed, as former director of national intelligence, retired Air Force Lt. Gen. James Clapper told CNN, North Korea is looking at the world in strict realist terms. Pyongyang—from its vantage point—is surrounded by enemies that are overwhelmingly more powerful than it is. The Kim regime’s only trump card against those foes are their nuclear weapons. Because the survival of the Kim regime is dependent on their nuclear capability, Pyongyang will never give up those weapons under any circumstances. Thus, America’s best response is containment and deterrence.

    “We need to have dialogue with them,” Clapper told CNN. “But accept the fact they are a nuclear power."

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Today’s News 11th August 2017

  • US Military Presence Overseas Mushrooming: Here, There, And Everywhere

    Authored by Alex Groka via The Strategic Culture Foundation,

    Around 200,000 US troops are stationed in 177 countries throughout the world. The forces use several hundred bases, more than 1,000 if the figure includes overseas warehouse and installations. The US may need more soon, with its presence and involvement in armed conflicts on the rise.

    It was reported on August 7 that the Pentagon plans to conduct airstrikes on Islamic State (IS) in the Philippines. This move will be part of the effort to rout IS militants who occupied Marawi, a city in the south of the Philippines, in May, prompting President Rodrigo Duterte to declare martial law in the entire southern region of Mindanao and ask the US for help. In June, the Joint Special Operations Task Force Trident joined the battle.

    Just three days before that (on August 4), it was reported by the Pentagon that a Special Operations Forces (SOF) team was deployed to Yemen to support the ongoing United Arab Emirates (UAE) operation against the Al Qaida in the Arabian Peninsula (AQAP) terror group. The amphibious assault ship Bataan with several hundred Marines aboard is also operating in the region. Close-air support missions in the current offensive against AQAP are not ruled out.

    On August 7, the US was also reported to be sending dozens more Marines to Helmand Province in southwestern Afghanistan. Army Gen. John Nicholson as the US commander in that country has been lobbying for 3,000 to 5,000 troops in addition to the 8,400 US service members already on the ground.

    In June, the US increased the size of its special operations advisory force embedded with the Syrian Democratic Forces as the group prepared its invasion of Raqqa, Syria. Around 1,000 US service members are believed to be operating there.

    The SOF play a special role to implement the «here, there and everywhere» policy. In 2016, the US SOF teams conducted missions in 138 countries – roughly 70 percent of the nations on the planet. The Special Operations Command is tasked with carrying out 12 core missions. Last year, US SOF were deployed to 32 African nations, about 60 percent of the countries on the continent. Navy SEALs, Green Berets, and other special operators are now conducting nearly 100 missions across 20 African countries at any given time. They are deployed in Libya – the country, which has its future uncertain after the 2011 US-led NATO involvement.

    The US war footprint grows in the Middle East with no endgame in sight. In his remarks at the Conservative Political Action Conference (CPAC) Donald Trump said that the last 15 years of US military action in the Middle East had been an almost incomprehensible waste of money – six trillion dollars – and that after all that US war and meddling the region was actually in a worse shape than before the operations were launched. So, the policy was wrong, the president understands that and…keeps on doing the very same thing on a larger scale!

    The presence in Europe is on the rise. Troops are being deployed to countries they had no presence in before, such as Norway and Estonia. It’s not forces only but also the costly logistics infrastructure. The military wants more large-scale exercises in Europe to further boost the presence and expand infrastructure there. During his recent foreign trip, Vice President Mike Pence said the US Air Force would deploy twice as many jets during the Russian exercise Zapad-2017 to be held in September.

    The US military is calling for even greater presence in Europe. Air Force Brigadier General John Healy, the director of US exercises in Europe, says he wants one comprehensive training maneuver would be crucial in testing NATO's preparedness for a global showdown with Russia. As he put it, «What we're eventually going toward is a globally integrated exercise program so that we (are) … all working off the same sheet of music in one combined global exercise». The military leader believes the exercise should encompass all domains of war – land, sea, air, space and cyber and involve all nine US combatant commands.

    Under President Trump, drone strikes worldwide grew 432 percent as of mid-March. Civilian death toll is significant in Iraq and Syria as a result of US bombardment.

    A war with Iran appears to be imminent. An attack against North Korea is on the cards. There is a plan to spend $8 billion on bulking up the US presence in the Asia-Pacific region over the next five years by upgrading military infrastructure, conducting additional exercises and deploying more forces and ships.

    All these facts make one recall the events that took place just a few months ago. President Trump said he would avoid interventions in foreign conflicts. Instead of investing in wars, he would spend money to build up America's aging roads, bridges and airports. But there was a loophole. He promised to stay away from all other conflicts except Islamic State militancy.

    Everybody thought he meant only airstrikes in the Middle East. Now it looks like the president meant the other regions as well. The Islamic State is present in Afghanistan and Africa. The IS terrorists have recently staged a terrorist act in Iran. They take responsibility for terrorist attacks in Europe. Jihadists operate in Russia and Central Asia. Their presence is menacing in the Asia-Pacific region. They are almost everywhere to serve as a pretext for US invasions or war preparations in almost any corner of the globe.

    The United States in actually one way or another involved in all hot spots on the world map. No doubt, it will expand the involvement in the Philippines, Somalia, Afghanistan, Yemen, and boost the naval and air force presence in the Asia Pacific to oppose China – a move not related to the IS by any stretch of imagination as well as the beefing up of forces in Europe.

    So, it’s Europe, Asia-Pacific, the Middle East and Africa! It feels like the United States is always at war or preparing for a war somewhere. Yemen on August 4, the Philippines on August 7, perhaps some other place a few days later, you never know what to expect. It’s like the «perpetual war for perpetual peace» described by Charles Beard.

    No matter how high the military expenditure is, the US military is doomed to be stretched thin until the policy is not changed. One cannot square the circle or embrace the boundless. The nation has a huge national debt. If the enemy is the Islamic State then the intelligence and military efforts should be concentrated on the mission to strike the group, not a number of tall orders to be accomplished by and large at the very same time.

    With one mission accomplished, the US could review the priorities. The thing is – it will never be accomplished because the Islamic State is not only militants, but rather the ideology that drives them. This evil cannot be defeated by the people in uniform alone. But that’s a different story to talk about in another article. Anyway, stretching the resources thin is not an effective policy. The United States will be following two hares catching neither instead of setting the priorities straight and focusing on what is the primary mission.

  • Who's The Richest Person In Your State?

    The United States is known to have many millionaires and billionaires. But, as HowMuch.net details, it turns out that not all states are equal when it comes to the rich and powerful.

    Where does your state fall? Take a look at the map below to see the richest person in every state.

    Source: HowMuch.net

    A photo of the richest person in any given state is superimposed on each state in the map, along with the person’s name and net worth. States are color coded based upon how the richest person in that state attained his or her wealth: red for self-made, blue for inherited and purple for inherited and growing. There is a total of 52 wealthy individuals on the map because there was a tie in two states. The data were collected from Forbes.

    An outright majority of the richest people in the states are self-made. Nearly all of the wealthiest people in Western states are self-made, while a more mixed group is found among the richest individuals in Northeastern states. There is also a small trend found in familial ties. The wealthiest person in both Texas and Arkansas – Jim and Alice Walton – are from the family that founded retail giant Wal-Mart. The Mars family, the founders of the Mars candy company, also appears twice on the map; John and Jacqueline Mars in Wyoming and Virginia.

    Although the individuals found on the map represent the wealthiest person in each state, the net worth of each person varies to a significant degree. The West Coast – California, Oregon and Washington – is home to some of the wealthiest people in the country. This includes Bill Gates, the wealthiest man in not only the U.S. but the world. The wealthiest person in states with a small population, like Midwestern America states, tend to have a relatively lower net worth compared to larger states. But there are a few notable exceptions, including the world’s third wealthiest man Warren Buffet in sparsely-populated Nebraska.

    There are many millionaires and billionaires found throughout the United States. But some states, particularly highly populated states, are home to the ultra-rich, while other states with smaller populations tend to be home to individuals with relatively lower net worth. It appears that the further you go West, the more you find wealthy individuals that are self-made, rather than inheritors of large fortunes.

  • Pepe Escobar On North Korea: Fire, Fury, Fear, & False Flags

    Authored by Pepe Escobar via The Asia Times,

    Alarm bells ringing as rampant speculation breaks out over Pyongyang’s ‘possible’ miniaturized nuclear warheads.

    Beware the dogs of war.

    The same intel “folks” who brought to you babies pulled from incubators by “evil” Iraqis as well as non-existent WMDs are now peddling the notion that North Korea has produced a miniaturized nuclear warhead able to fit its recently tested ICBM.

    That’s the core of an analysis completed in July by the Defense Intelligence Agency (DIA). Additionally, US intel believes that Pyongyang now has access to up to 60 nuclear weapons.

    On the ground US intel on North Korea is virtually non-existent – so these assessments amount to guesswork at best.

    But when we couple the guesswork with an annual 500-page white paper released earlier this week by the Japanese Defense Ministry, alarm bells do start ringing.

    The white paper stresses Pyongyang’s “significant headway” in the nuclear race and its “possible” (italics mine) ability to develop miniaturized nuclear warheads able to fit on the tips of its missiles.

    This “possible” ability is drowned in outright speculation. As the report states, “It is conceivable that North Korea’s nuclear weapons program has already considerably advanced and it is possible that North Korea has already achieved the miniaturization of nuclear bombs into warheads and has acquired nuclear warheads.”

    Western corporate media would hardly refrain from metastasizing pure speculation into a “North Korea has miniaturized nuclear weapons” frenzy consuming the cable news cycle/ newspaper headlines.

    Talk about hearts and minds comfortably numbed by the fear factor.

    The Japanese white paper, conveniently, also escalated condemnation of China over Beijing’s actions in both the East and South China seas.

    So let’s look at the agendas in play. The War Party in the US, with its myriad connections in the industrial-military-media complex, obviously wants/needs war to keep the machinery oiled. Tokyo, for its part, would much appreciate a pre-emptive US military attack – and damn the inevitable, massive South Korean casualties that would result from Pyongyang’s counterpunch.

    It’s quite enlightening that Tokyo, for all practical purposes, considers China as a “threat” as serious as North Korea; Defense Minister Itsunori Onodera went straight to the point when he said, “North Korea’s missiles represent a deepening threat. That, along with China’s continued threatening behavior in the East China Sea and South China Sea, is a major concern for Japan.” Beijing’s response was swift.

    Kim Jong-Un, demonized ad infinitum, is not a fool, and is not going to indulge in a ritual seppuku unilaterally attacking South Korea, Japan or US territory. Pyongyang’s nuclear arsenal represents the deterrent against regime change that Saddam Hussein and Gaddafi could not count on. There’s only one way to deal with North Korea, as I’ve argued before; diplomacy. Tell that to Washington and Tokyo.

    Meanwhile, there’s United Nations Security Council Resolution 2371. It does target North Korea’s major exports – coal, iron, seafood. Coal accounts for 40% of Pyongyang’s exports, and arguably 10% of GDP.

    Yet this new sanctions package does not touch imports of oil and refined-oil products from China. That’s one of the reasons why Beijing voted in favor.

    Beijing’s strategy is a very Asian attempt to find a face-saving solution – and that takes time. UNSC resolution 2371 buys time – and may dissuade the Trump administration, for now, from going heavy metal, with horrible consequences.

    Chinese Foreign Minister Wang Yi cautiously stated the sanctions are a sign of international opposition to North Korea’s missile and nuclear weapons programs. The last thing Beijing needs is a war right on its borders, also bound to negatively interfere with the expansion of the New Silk Roads, a.k.a. Belt and Road Initiative (BRI).

    Beijing could always work on re-building trust between Pyongyang and Washington. That’s an order taller than the Himalayas. One just needs to look back at the 1994 Agreed Framework, signed during Bill Clinton’s first term.

    The framework was supposed to freeze – and even dismantle – Pyongyang’s nuclear program and was bound to normalize US-North Korea relations. A US-led consortium would build two light-water nuclear reactors to compensate for Pyongyang’s loss of nuclear power; sanctions would be lifted; both parties would issue “formal assurances” against the use of nuclear weapons.

    Nothing happened. The framework collapsed in 2002 – when North Korea was enshrined in the “axis of evil” by the Cheney regime. Not to mention that the Korean War is still, technically, on; the 1953 armistice was never replaced by a real peace treaty.

    So what next? Three reminders.

    1) Beware of an engineered false flag, to be blamed on Pyongyang; that would be the perfect pretext for war.

     

    2) The current narrative is eerily similar to the usual suspects blaring since forever that Iran is a heartbeat away from “building a nuclear weapon”.

     

    3) North Korea holds trillions of US dollars in unexplored mineral wealth. Watch the shadowplay by candidates bound to profit from such juicy loot.

  • Bomb Shelter Sales "Skyrocket" In California As Nuclear Fears Spike

    Equity investors today failed to follow through on initial efforts to “Buy The Fucking Fire and Fury Dip” but they are apparently rushing out to buy their very own doomsday bunkers on the off chance that President Trump wasn’t joking yesterday when he offered the following warning to North Korea:

     

    Apparently the comments have spooked some folks on America’s west coast who are thought to be within Kim Jong Un’s nuclear strike radius. And while a global nuclear confrontation is generally viewed as a bad thing, for Ron Hubbard, President of Atlas Survival Shelters in Los Angeles, it has resulted in an economic windfall.  Here’s more from The Sacramento Bee:

    “It’s crazy, I’ve never seen anything like it,” Ron Hubbard, president of Atlas Survival Shelters, told Fox11. “It’s all over the country. I sold shelters today in North Carolina, Tennessee, Texas, Oklahoma, Louisiana, Oregon, Washington, Arizona, California.”

     

    The company, based in Montebello in eastern Los Angeles, sells shelters priced from $10,000 to $100,000. Hubbard told the station that the shelters are designed to be buried 20 feet below ground and can sustain survivors for up to one year, depending on the size and model.

     

    He told the station he had sold more than 30 units in recent days, including to customers in Japan.

     

    Meanwhile, Bloomberg reports that Vivos, another shelter manufacturer in Del Mar, Calif., near San Diego, also has experienced a spike in business.

    “Japan’s going hog wild right now,” said Ron Hubbard, owner of Atlas Survival. The Montebello, California-based company makes about a dozen different underground refuge models intended to be inhabitable for six months to a year, some outfitted with escape tunnels, decontamination rooms and bulletproof hatches.

     

    “People are getting off the fence – we’ve got thousands and thousands of applications,” said Robert Vicino, founder and chief executive officer of Vivos, Spanish for “alive.”

     

    Vivos sells models for individual and communal use, and the company has built subterranean survival communities in the U.S. and Europe. The latest, xPoint, covers 9,000 acres in South Dakota with 575 off-grid dugouts. Planned amenities include a community theater, hydroponic gardens, shooting ranges, restaurant and bar. Shelters in the community are available for lease with an up-front cost of $25,000. Vicino told Bloomberg about 50 units have been leased or reserved.

    Bunker

     

    Of course, for now we can only speculate that Trump and Putin must have colluded in efforts to spark a global nuclear confrontation while quietly buying up bunker manufacturers behind the scenes to make a little extra cash.  We demand that Special Counsel Mueller expand his investigation to look into this rather suspicious development immediately. 

  • Canada Sends Soldiers To Popular Border Crossing

    Prime Minister Justin Trudeau should probably stop telling refugees that “everybody is welcome in Canada,” after his vow to protect asylum seekers inspired thousands of migrants to journey north across the US-Canada border, fearing deportation should they remain in the states following the election of President Donald Trump.

    The influx of migrants has overwhelmed the ability of local and federal agencies to process and provide for the newcomers, leaving many in an uncomfortable legal limbo as they wait for their hearing dates. In recent months, thousands of Haitian asylum seekers have crossed into Quebec following Trump’s threat to remove the temporary protected status granted to nearly 60,000 Haitians living in the US following Haiti’s 2010 earthquake. Of the 4,345 people who either sought asylum at the Canadian border or were intercepted by police in the first six months of 2017, 3,350 were recorded in Quebec.

    With the pace of new arrivals increasing, the federal government is being forced to take action.

    According to the Associated Press, the Canadian government has dispatched soldiers to a remote back road connecting Quebec with upstate New York. The site has become a popular route for migrants, with more than 400 crossing on Sunday alone.

    The military will assist the Royal Canadian Mounted Police and the Canadian Border Service agency in constructing a registration center complete with tents that can house close to 500 people at the site.

    The site will function as a point of entry where asylum seekers are processed and turned over to the government. Soldiers will not play a security role, according to the AP.

    Once the settlement is finished, only a few will stay behind. The rest will go back to their home base.

    The decision to construct the makeshift shelter comes as Quebec is running out of space to house the migrants.

    Local officials recently opened a temporary shelter in Montreal’s Olympic Stadium as they scramble to meet the demand for beds, with some local aid workers telling the Montreal Gazette that government-funded aid programs are “close to their limits.”  

    It appears that, with local agencies straining under the workload, Trudeau has come through with some federal aid. But when will the progressive iconic and frequent Trump antagonist realize that Canada has simply taken in too many migrants?
     

  • Understanding The Hysterical Reaction To The Google Memo

    Authored by Mike Krieger via Liberty Blitzkrieg blog,

    Today’s post is the final installment of a four part series on the Google memo and the various issues it’s raised regarding our cultural capacity for intelligent debate. I’ve also touched upon the very serious issue of Google’s expanding position as an integral and willing tool of U.S. imperial foreign policy, as well as its defense of oligarchy and status quo thinking at home.

    Here are the first three parts, in case you missed them:

    Part 1 — Why the Google Memo Brings Forward an Overdue Conversation

    Part 2 — ‘The Firing’

    Part 3 — Google: Search Engine or Deep State Organ?

    Before I get started, I want to make something clear. I am entirely sympathetic to the fact that the Google memo justifiably made many women who work in the tech industry feel uncomfortable and anxious. While I’ve never worked in that field, I worked in the highly aggressive and male-dominated environment of Wall Street for a decade. That sort of culture can definitely make women feel left-out, awkward or worse. I do not deny that such problems exist in an industry dominated by one gender. Unfortunately, that very legitimate issue has become totally swamped in the public mind due to the hysterical, dishonest and illogical reactions by many to the Google memo.

    Irrespective of what you think of the memo, it’s dangerous and counterproductive to start calling people names rather than engage in calm, intelligent debate. Certainly, James Damore could’ve done some things differently in the composition of his memo, but anyone who reads it can see he was trying to be fair and open-minded. I have no doubt that he was genuinely trying to have a conversation about an issue he identified at Google and feels passionately about. He wasn’t trying to make his colleagues feel anxious or uncomfortable. For that transgression he was demonized and fired. Are we already back to burning witches?

    Today’s post will focus on applying what we learned about consciousness evolution in my five-part series on Spiral Dynamics to the Google memo affair. I’ll do my best to make this as understandable as possible for those of you who never read those posts, but to fully grasp what I’m about to discuss, you should probably read (or reread) them.

    As I started reading the Google memo I couldn’t help but think that I was reading something written by someone coming from a second-tier consciousness perspective. This is important, because according to author and thinker Ken Wilber only a small fraction of the world’s population (about 5%) is centered around yellow consciousness or higher. Here’s a brief description of yellow consciousness from a prior post.

         7. Yellow: Integrative. Life is a kaleidoscope of natural hierarchies [holarchies], systems, and forms. Flexibility, spontaneity, and functionality have the highest priority. Differences and pluralities can be integrated into interdependent, natural flows. Egalitarianism is complemented with natural degrees of excellence where appropriate.

     

    Knowledge and competency should supersede rank, power, status, or group. The prevailing world order is the result of the existence of different levels of reality (memes) and the inevitable patterns of movement up and down the dynamic spiral. Good governance facilitates the emergence of entities through the levels of increasing complexity (nested hierarchy). 

    If that’s confusing, here’s an alternative attempt:

    Yellow value system Characteristics

    Firstly, he noticed that a Yellow orientated lifestyle is much more free than a lifestyle in any of the other value systems. Yellow oriented people seemed to move and express themselves completely free and independent of their life environment. Contrary to people in other value systems, they were not afraid anymore to be rejected and they didn’t fear other people’s or God’s judgment. They didn’t show the need to make an impression on others and to reach the top at the cost of everything.

     

    They also didn’t strive anymore for absolute truths and they didn’t have the need to belong to something anymore. In short: these were people without irrational fears, compulsive needs and compulsive behaviors. However, this Yellow freedom doesn’t mean that people in the Yellow value system are not connected to their environment. On the contrary, Yellow oriented people are very much involved and show a lot of compassion. The biggest difference with people from other value systems is that their life environment is not fearfully or compulsively leading them.

    Right off the bat, I identified James as a second-tier thinker when he wrote the following about political leanings.

     

    Neither side is 100% correct and both viewpoints are necessary for a functioning society or, in this case, company. A company too far to the right may be slow to react, overly hierarchical, and untrusting of others. In contrast, a company too far to the left will constantly be changing (deprecating much loved services), over diversify its interests (ignoring or being ashamed of its core business), and overly trust its employees and competitors.

    What James does right there is something most people never do. He objectively, and without claiming one to be superior to the other, discusses the key traits of people who tend to lean left versus those who lean right. Of course, you could always add to the list, but I think he pretty much nails it. He goes on to state that both are necessary for a functioning society. This is where it becomes clear he’s coming at political debate from an integral, or second-tier consciousness perspective. Rather than profess one ideology to be superior to the others and try to fight about it in an attempt to gain power and dominance, which is what first-tier thinkers always do, he understands that different human perspectives are important and necessary to the whole. Progress is not about demonizing and subjugating people who don’t agree with you, but rather integrating all the various and beautiful differences amongst us in the most healthy and beneficial way possible.

    Moving on, one of the many things Ken Wilber so accurately notes throughout much of his work, is how the prior leading-edge level of consciousness (green) tends to despise and react very negatively to anyone operating on second-tier consciousness. When we talk about green in 2017, we are really talking about how green currently manifests on the planet, which is actually just a twisted perversion of its original self. This devolution of green consciousness into a destructive “mean green” meme is a big part of what’s been holding us back as a species, and also played a consequential role in the election of Trump. Ken Wilber discussed this at length in his excellent e-book on the election, Trump and a Post-Truth World. Here are a few relevant excerpts:

    The green postmodern leading-edge of evolution itself has, for several decades, degenerated into its extreme, pathological, and dysfunctional forms. As such, it is literally incapable of effectively acting as a real leading-edge. Its fundamental belief—“there is no truth”—and its basic essential attitude—“aperspectival madness”— cannot in any fashion actually lead, actually choose a course of action that is positive, healthy, effective, and truly evolutionary. With all growth hierarchies denied and deconstructed, evolution has no real way to grow, has no way forward at all, and thus nothing but dominator hierarchies are seen everywhere, effectively reducing any individual you want to a victim. The leading-edge has collapsed; it is now a few-billion-persons (or so) massive car crash, a huge traffic jam at the very edge of evolution itself, sabotaging virtually every move that evolution seeks to take. Evolution itself finds its own headlights shining beams of nihilism, which can actually see nothing, or narcissism, which can see only itself. Under this often malicious leadership (the mean-green-meme), the earlier levels and stages of development have themselves begun to hemorrhage, sliding into their own forms of pathological dysfunction. And this isn’t just happening in one or two countries, it is happening around the world.

     

    As the decades unfolded, green increasingly began veering into extreme, maladroit, dysfunctional, even clearly unhealthy, forms. Its broad-minded pluralism slipped into a rampant and runaway relativism (collapsing into nihilism), and the notion that all truth is contextualized (or gains meaning from its cultural context) slid into the notion that there is no real universal truth at all, there are only shifting cultural interpretations (which eventually slid into a widespread narcissism).

    One of the reasons contemporary greens act so hysterical all the time is because of the fact that their entire worldview is actually based on a contradiction. On the one hand, they claim to believe that there’s no absolute truth and that everything is a social construct, yet…

    For postmodernists, all knowledge is non-universal, contextual, constructivist, interpretive—found only in a given culture, at a given historical time, in a particular geopolitical location. Unfortunately, for the postmodernists, every one of its summary statements given in the previous paragraph was aggressively maintained to be true for all people, in all places, at all times—no exceptions. Their entire theory itself is a very Big Picture about why all Big Pictures are wrong, a very extensive metanarrative about why all metanarratives are oppressive. They most definitely and strongly believe that it is universally true that there is no universal truth. They believe all knowledge is context bound except for that knowledge, which is always and everywhere trans-contextually true. They believe all knowledge is interpretive, except for theirs, which is solidly given and accurately describes conditions everywhere. They believe their view itself is utterly superior in a world where they also believe absolutely nothing is superior. Oops.

    The madness emanating from a lot of these folks makes sense when you deconstruct it all and realize that pretty much the entire postmodern green ideology is based on a massive, irreconcilable contradiction. This is precisely why they don’t like to debate issues, but would rather shout people down by calling them names like Nazi, racist, misogynist, etc. It’s a brutish form of language oppression and authoritarianism, which they somehow justify in the name of their view being superior (in a world where nothing is supposed to be superior). No wonder they’ve lost their minds.

    It’s even worse than that though. Not only do greens have to deal with the fact their ideology and worldview is rooted in a lie, they now have to deal with the obvious truth that their policies in government have completely failed the public. As Wilber notes:

    Meanwhile, the leading-edge green cultural elites—upper-level liberal government, virtually all university teachers (in the humanities), technology innovators, human services professions, most media, entertainment, and most highly liberal thought leaders—had continued to push into green pluralism/relativism—“what’s true for you is true for you, and what’s true for me is true for me”—all largely with intentions of pure gold, but shot through with an inherently self-contradictory stance with its profound limitations (if all truth is just truth for me and truth for you, then there is no “truth for us”—or collective, universal, cohering truths— and hence, in this atmosphere of aperspectival madness, the stage was set for massively fragmented culture, which the siloed boxes and echo chambers of social media were beginning to almost exclusively promote and enhance).

     

    The problem very quickly became what Integral Metatheory calls a “legitimation crisis,” which it defines as a mismatch between Lower-Left (or cultural) beliefs and the Lower-Right systems (or actual background realities, such as the techno-economic base). The cultural belief was that everybody is created equal, that all people have a perfect and equal right to full personal empowerment, that nobody is intrinsically superior to others (beliefs that flourished with green). Yet the overwhelming reality was increasingly one of a stark and rapidly growing unequality—in terms of income and overall worth, property ownership, employment opportunity, healthcare access, life satisfaction issues. The culture was constantly telling us one thing, and the realities of society were consistently failing to deliver it—the culture was lying. This was a deep and serious legitimation crisis— a culture that is lying to its members simply cannot move forward for long. And if a culture has “no truth,” it has no idea when it’s lying—and thus it naturally lies as many times as it accidentally tells the truth, and hence faster than you can say “deconstruction,” it’s in the midst of a legitimation crisis.

     

    In the meantime, the leading-edge of both green “no-truth” and techno- economic “no-job” had created a seething, quietly furious, and enormously large amount of what Nietzsche called “ressentiment”—which is French for “resentment.” Nietzsche meant it specifically for the type of nasty, angry, and mean-spirited attitude that tends to go with “egalitarian” beliefs (because in reality, there are almost always “greater” and “lesser” realities— not everything is or can be merely “equal,” and green resents this mightily, and often responds with a nasty and vindictive attitude, which Integral theorists call “the mean green meme”). But the notion of “ressentiment” applies in general to the resentment that began to increasingly stem from the severe legitimation crisis that began to soak the culture (which itself was, indeed, due primarily to a broken green). Everywhere you are told that you are fully equal and deserve immediate and complete empowerment, yet everywhere denied the means to actually achieve it. You suffocate, you react, and you get very, very mad.

    So where does all of this lead us? For starters, we’re dealing with a mean green ideology that increasingly dominates most elitist institutions. This worldview is based on an obvious contradiction, and over the past several decades, has also publicly failed when it comes to governing. While Trump’s election was a regressive political backlash to this reality, the cultural dominance of green remains firmly in place as we can see with the dishonest and unfair reaction to the memo by the media and Google itself.

    Going forward, there are two paths to a better future. Personally, I don’t think greens will ever get control of their own madness and become healthy “greens.” Rather I think we will have to push to try to get 10% of the world’s population to what Ken Wilber describes as the “tipping point.” Here’s how he put it in his e-book:

    The one other option, slightly different, is for evolution to leap-frog to an integral stage of unfolding as its new leading-edge, which would inherently perform all of the tasks now required of a regenerated green. This “leap- frogging” would not constitute skipping a stage (which is not possible), but it would mean building a higher stage on a diseased predecessor, which lands it with a handicap right from the start. The integral attitude, however, is designed to effectively spot and route around such roadblocks, and this we would expect to see.

     

    The most likely course of action, however, is some mixture of both. That’s not a cop-out, it’s a precise prediction. Green simply cannot function, not even on its own level, if it continues in its extreme, mean-green-meme (vindictively seeing “deplorables” everywhere), hyper-sensitive, over-the- top politically correct, dysfunctional, and pathological form in which it now exists. Its inherent contradictions are increasingly being seen and felt, and ways to work around them are being explored (which incorporate the partial truths of green but not their extreme and pathological absolutisms).

     

    That lessening of green’s pervasive hostility and vindictiveness toward all previous stages of development is what we identied as “step one” in the requisite self-healing of green. There is at least a decent likelihood that this will—and to some degree already has—begun to happen. On the other hand, “step two”—the realization that growth holarchies provide the actual basis of the value judgments that green is already making, and that these growth holarchies also are the only truly effective means to displace the dominator hierarchies that green correctly ranks on the bottom of the list of social desirables—is a bit less likely to occur at the green level itself, but will most likely depend upon the transformation to integral 2nd tier. My strong suspicion, therefore, is that green will perform a good deal of step one on its own, and that this will have a very positive effect on culture at large. (And conversely, to the extent that at least this first step is not taken, then the self-corrective drive of evolution will continue to push, and push, and push into existing affairs, driving more Trump-like “disasters” as evolution redoubles its efforts to force its way through these recalcitrant obstructions.)

     

    But step two will likely be taken at this time only by integral communities themselves, and otherwise will await the growth of 10 percent of the population which would initiate a tipping point and propel the integral stage into being the next-higher leading-edge, with altogether stunning repercussions.

     

    Contributing to this growth and increase in truly inclusive awareness, and under the drive to discover “what’s next” after postmodernism, various Integral theories and metatheories are increasingly gaining ground, and wherever they do, they automatically correct the green dysfunctions that they unearth. Little by little, in other words, an Integral awareness is helping to embody an evolutionary self-correction in its very actions.

     

    It is this Integral view that I wish to recommend to any who are ready for such…In embracing all of yesterday, it opens us to all of tomorrow. And it will provide a leading-edge of evolution the likes of which humanity has literally never seen before.

     

    This is indeed the next, authentic and genuine leading-edge, and it has already begun its inevitable emergence. It carries with it the inexorable drive to “transcend and include” literally all of the previous stages of development and the stations of life that they now inhabit—but minus the inherent rancor that each of them, on its own, feels for the others.

     

    Humankind has never had a leading-edge like this at any previous point in history. It is indeed “cataclysmic,” “a monumental leap in meaning,” and it is here for each of us to embrace and express should we so desire. And it is the one, sure, and certain balm—if authentically inhabited—for the isolating, regressive, repressive, mean-spirited, and fragmenting state in which the world now nds itself rapidly drowning.

    As Wilber explains, green consciousness, so revolutionary and important in its early days has devolved and descended into madness. It is no longer capable of leading, and we face a major evolutionary crossroads — regress or push forward into higher consciousness. Green will go into this new world kicking and screaming as we’ve seen recently with the Google memo, but go they will. The more they act out, the more they expose themselves as vacuous, narcissistic charlatans, which will turn more and more people off. Its self-destruction is a necessary step in the path forward.

  • South Korea Introduces World's First Robot Tax

    In case you missed it, South Korea has introduced what is being called the world’s first tax on robots amid fears that machines will replace human workers, leading to mass unemployment. Of course, one can’t actually tax robots so what they’re actually doing is changing the corporate tax code to provide disincentives for capital investments in technology.  Genius plan if we understand it correctly.  Per The Korea Times:

    Amid worldwide debate on the use of robots for work and possible consequent unemployment issues, the government made a first move that may help slow down automation in industries, according to sources, Monday.

     

    In its recently announced tax law revision plan, the Moon Jae-in administration said it will downsize the tax deduction benefits that previous governments provided to enterprises for infrastructure investment aimed at boosting productivity.

     

    Currently, enterprises that have invested in industry automation equipment are eligible for a corporate tax deduction. Companies can have part of their corporate tax ? between 3 percent and 7 percent of the investment ? deducted under the policy, with the rate varying by the size of their business.

     

    This sunset policy was scheduled to expire at the end of the year. But the government suggested extending it to the end of 2019 while decreasing the deduction rate by up to 2 percentage points.

    Let that sink in for a moment…South Korea is literally looking to change its tax code to deter corporations from making capital investments “aimed at boosting productivity.” 

    Robot Tax

     

    Of course, it’s not just financially challenged politicians who have managed to convince themselves that taxing productivity gains is a great idea…Bill Gates is fully onboard as well.

    Microsoft founder Bill Gates is one of the well-known advocates of a robot tax. In an interview this February, he said governments should levy a tax on the use of robots in a goal to fund retraining of those who lose jobs and to slowdown automation.

     

    “For a human worker who does $50,000 worth of work in a factory, the income is taxed,” Gates said. “If a robot comes in to do the same thing, you’d think that we’d tax the robot at a similar level.”

     

    He also stressed that there are still many jobs that need human hands and minds and thus cannot be properly replaced by robots.

     

    “What the world wants is to take this opportunity to make all the goods and services we have today, and free up labor, let us do a better job of reaching out to the elderly, having smaller class sizes, helping kids with special needs, all of those are things where human empathy and understanding are still very unique,” he said. “We still deal with an immense shortage of people to help out there.”

    Just out of curiosity, who does Bill Gates think is actually on the hook for those tax bills sent to corporations?  If the U.S. government suddenly decided to raise Microsoft’s tax rate by 40% would the company simply absorb the earnings hit and move on as if nothing happened?  Or, would they pass those additional costs on to their customers to save their share price from tanking? 

    You see, Bill, corporations don’t really pay taxes.  Yes, we know that in a literal sense their names are on the tax returns but they’re simply pass through entities that collect money from end consumers and send it to various taxing authorities. 

    So, as usual, the only people who really get hurt by these ridiculously misinformed policies are the consumers who will have to overpay for everything from iphones to automobiles.

    And here’s the real kicker, Bill, your robot tax is massively regressive as the poorest people are the ones who will be hit hardest by what is effectively a consumption tax.

    Meanwhile, this all ignores the far more dire long-term consequences of deterring technological innovation. 

    As we’ve pointed out before, John Maynard Keynes made similar predictions about technology leading to mass unemployment back in the 1930s…

    “We are being afflicted with a new disease of which some readers may not have heard the name, but of which they will hear a great deal in the years to come—namely, technological unemployment” – Keynes, 1930

    …Yet, here we are some 85 years later sitting on near full employment (well, if you ignore the ~95 million people just ‘don’t want’ a job) despite coming quite a long way since the days of primitive single-engine prop planes and steam engines.  Go figure…

  • "We Need More Suckers At The Table" – Quant Funds Stumble As Dumb-Money Disappears

    The omniptence of artificial intelligence is unquestioned. The 'future' is automation, robotization, and algorithmic domination is the mantra of the new normal prognosticators – and anyone who challenges this world view is a luddite or 'denier'.

    There's just one problem – those quantitative, AI-based, computerized algos, that are supposed to be making people obsolete in the financial markets, are in trouble. As Bloomberg reports, program-driven hedge funds are stumbling, a promising startup has closed, and once-reliable styles are showing weakening returns.

    This isn’t just normal volatility confined to a single month, according to noted quant fund manager Neal Berger, the founder and chief investment officer of Eagle’s View Asset Management, a $500 million fund-of-funds that invests with 30 managers, half of them quants. Returns have been decaying for a year, suggesting the rest of the market has figured out what the robots are doing and started taking evasive action, Berger said.

    Bloomberg notes that June was the worst month on record for Berger’s fund, as usually robust strategies lost their footing and the firm fell 2.4 percent. The worst pain has been among quants in the market-neutral equity space, which take long and short positions to isolate bets on price patterns and relationships.

    There's "Turmoil in Quant Land", said Berger in a letter to clients this summer to explain his "candid view why strategies that were once working regularly mysteriously stopped working."

    It comes down to two factors:

    1.Increased competition: more investors are using algorithms to fight over the same inefficiencies in the market.

    “Now every bank has a factor model,” said Benjamin Dunn, president of the portfolio consulting practice at Alpha Theory LLC, which works with managers overseeing about $200 billion.

     

    “You’ve had a democratization of a lot of data and analytics that were once the domain of very systematic quant investors. Everything is getting arbitraged away.

    2. Low volatility: quantitative funds are most successful in an environment where there is large disagreements in the market over the prices of assets. Today there is little disagreement, and the best way to earn outsized returns is placed highly leveraged bets that the market will remain calm. That's working for some investors, but is far too risky for others.

    In fact, the persistently low level of volatility has brought out an increasing number of hedge funds strategies oriented toward regularly selling volatility. Although we believe that this is "picking up nickels in front of a bulldozer", shockingly, these Funds have been some of the best performing strategies over the past years.

     

    Although our guess is as good as anyone's, we believe the shockingly low levels of volatility has to do with an increase in computer driven, quantitative trading coupled with banks selling options to offer "yield enhancement" structured products to investors who are starving for this yield.

     

    This feedback loop, the increase in assets run by hedge funds, and, the rise of quants, has created unusual patterns, dislocations, and low levels of volatility.

     

    While those simply following the broader market indices wouldn't realize anything is amiss, it is our belief that these factors have created a challenging mix for trading oriented strategies. It won't last forever, but, it could last longer than we can.

    Additionally, he explains, systematic strategies require an endless supply of victims to thrive, and the growth of quant and passive funds has caused dumb money to behave unpredictably or disappear altogether.

    With all the geniuses in quant, high-powered computers, and enormous data, where are the "suckers" who are providing the juice for all of these absolute return quantitative strategies?

     

    Simply put, the 'edge providers' have moved aggressively into passive index funds and broader market ETFs.

     

    As such, we have a condition amongst the traditional quantitative strategies whereby we have robots trading against robots. Without a steady source of 'edge providers', these 'edge demanders' are just trading money back and forth with each other.

     

    We believe increased quantitative trading coupled with passive indexation by retail, and, low levels of realized and implied volatility may be creating a feedback loop that has caused unusual price movements in a variety of securities that have challenged trading oriented strategies.

    Eagle’s View is shifting “almost entirely away from mainstream quant strategies due to the fact that we feel that they are too crowed and without enough juice available for all to feast,” Berger wrote.

    …the shift toward passive indexation by those investors who have historically been the 'edge providers' has no end in sight. While one might argue that fundamentals always win out in the end (and we agree), we need to make money over a much shorter horizon for our investors and cannot sit idle in a world where hedge funds are expected to produce regular returns and stay ahead of the curve even if fundamentals are irrational. Over my nearly 30 year Wall St. career, I am a firm believer in the adage that "the markets can stay irrational longer than we can stay solvent".

    A market neutral version of value is on track to post its worst year since at least 2008, according to data compiled by Bloomberg PORT.

    And factors aren’t just performing poorly, some are barely performing at all. With equity markets bathed in tranquility, groups of stocks assembled according to their growth, momentum and volatility traits have never been more muted, the data show.

    In order to exploit inefficiency, giant quant firms "need to be dwarfed by large, dumb money," Berger concluded by phone to Bloomberg.

     

    "They’re waiting for the sucker to come to the table, but the suckers are fewer and far between."

    Don't be the sucker, America.

  • A New Report Raises Big Questions About Last Year’s DNC Hack

    Written by Patrick Lawrence of The Nation,

    It is now a year since the Democratic National Committee’s mail system was compromised—a year since events in the spring and early summer of 2016 were identified as remote hacks and, in short order, attributed to Russians acting in behalf of Donald Trump. A great edifice has been erected during this time. President Trump, members of his family, and numerous people around him stand accused of various corruptions and extensive collusion with Russians. Half a dozen simultaneous investigations proceed into these matters. Last week news broke that Special Counsel Robert Mueller had convened a grand jury, which issued its first subpoenas on August 3. Allegations of treason are common; prominent political figures and many media cultivate a case for impeachment.

    The president’s ability to conduct foreign policy, notably but not only with regard to Russia, is now crippled. Forced into a corner and having no choice, Trump just signed legislation imposing severe new sanctions on Russia and European companies working with it on pipeline projects vital to Russia’s energy sector. Striking this close to the core of another nation’s economy is customarily considered an act of war, we must not forget. In retaliation, Moscow has announced that the United States must cut its embassy staff by roughly two-thirds. All sides agree that relations between the United States and Russia are now as fragile as they were during some of the Cold War’s worst moments. To suggest that military conflict between two nuclear powers inches ever closer can no longer be dismissed as hyperbole.

    All this was set in motion when the DNC’s mail server was first violated in the spring of 2016 and by subsequent assertions that Russians were behind that “hack” and another such operation, also described as a Russian hack, on July 5. These are the foundation stones of the edifice just outlined. The evolution of public discourse in the year since is worthy of scholarly study: Possibilities became allegations, and these became probabilities. Then the probabilities turned into certainties, and these evolved into what are now taken to be established truths. By my reckoning, it required a few days to a few weeks to advance from each of these stages to the next. This was accomplished via the indefensibly corrupt manipulations of language repeated incessantly in our leading media.

    Debbie

    Lost in a year that often appeared to veer into our peculiarly American kind of hysteria is the absence of any credible evidence of what happened last year and who was responsible for it. It is tiresome to note, but none has been made available. Instead, we are urged to accept the word of institutions and senior officials with long records of deception. These officials profess “high confidence” in their “assessment” as to what happened in the spring and summer of last year—this standing as their authoritative judgment. Few have noticed since these evasive terms first appeared that an assessment is an opinion, nothing more, and to express high confidence is an upside-down way of admitting the absence of certain knowledge. This is how officials avoid putting their names on the assertions we are so strongly urged to accept—as the record shows many of them have done.

    We come now to a moment of great gravity.

    There has been a long effort to counter the official narrative we now call “Russiagate.” This effort has so far focused on the key events noted above, leaving numerous others still to be addressed. Until recently, researchers undertaking this work faced critical shortcomings, and these are to be explained. But they have achieved significant new momentum in the past several weeks, and what they have done now yields very consequential fruit. Forensic investigators, intelligence analysts, system designers, program architects, and computer scientists of long experience and strongly credentialed are now producing evidence disproving the official version of key events last year. Their work is intricate and continues at a kinetic pace as we speak. But its certain results so far are two, simply stated, and freighted with implications:

    There was no hack of the Democratic National Committee’s system on July 5 last year—not by the Russians, not by anyone else. Hard science now demonstrates it was a leak—a download executed locally with a memory key or a similarly portable data-storage device. In short, it was an inside job by someone with access to the DNC’s system. This casts serious doubt on the initial “hack,” as alleged, that led to the very consequential publication of a large store of documents on WikiLeaks last summer.

     

    Forensic investigations of documents made public two weeks prior to the July 5 leak by the person or entity known as Guccifer 2.0 show that they were fraudulent: Before Guccifer posted them they were adulterated by cutting and pasting them into a blank template that had Russian as its default language. Guccifer took responsibility on June 15 for an intrusion the DNC reported on June 14 and professed to be a WikiLeaks source—claims essential to the official narrative implicating Russia in what was soon cast as an extensive hacking operation. To put the point simply, forensic science now devastates this narrative.

    This article is based on an examination of the documents these forensic experts and intelligence analysts have produced, notably the key papers written over the past several weeks, as well as detailed interviews with many of those conducting investigations and now drawing conclusions from them. Before proceeding into this material, several points bear noting.

    One, there are many other allegations implicating Russians in the 2016 political process. The work I will now report upon does not purport to prove or disprove any of them. Who delivered documents to WikiLeaks? Who was responsible for the “phishing” operation penetrating John Podesta’s e-mail in March 2016? We do not know the answers to such questions. It is entirely possible, indeed, that the answers we deserve and must demand could turn out to be multiple: One thing happened in one case, another thing in another. The new work done on the mid-June and July 5 events bears upon all else in only one respect. We are now on notice: Given that we now stand face to face with very considerable cases of duplicity, it is imperative that all official accounts of these many events be subject to rigorously skeptical questioning. Do we even know that John Podesta’s e-mail was in fact “phished”? What evidence of this has been produced? Such rock-bottom questions as these must now be posed in all other cases.

    Two, houses built on sand and made of cards are bound to collapse, and there can be no surprise that the one resting atop the “hack theory,” as we can call the prevailing wisdom on the DNC events, appears to be in the process of doing so. Neither is there anything far-fetched in a reversal of the truth of this magnitude. American history is replete with similar cases. The Spanish sank the Maine in Havana harbor in February 1898. Iran’s Mossadegh was a Communist. Guatemala’s Árbenz represented a Communist threat to the United States. Vietnam’s Ho Chi Minh was a Soviet puppet. The Sandinistas were Communists. The truth of the Maine, a war and a revolution in between, took a century to find the light of day, whereupon the official story disintegrated. We can do better now. It is an odd sensation to live through one of these episodes, especially one as big as Russiagate. But its place atop a long line of precedents can no longer be disputed.

    Three, regardless of what one may think about the investigations and conclusions I will now outline—and, as noted, these investigations continue—there is a bottom line attaching to them. We can even call it a red line. Under no circumstance can it be acceptable that the relevant authorities—the National Security Agency, the Justice Department (via the Federal Bureau of Investigation), and the Central Intelligence Agency—leave these new findings without reply. Not credibly, in any case. Forensic investigators, prominent among them people with decades’ experience at high levels in these very institutions, have put a body of evidence on a table previously left empty. Silence now, should it ensue, cannot be written down as an admission of duplicity, but it will come very close to one.

    It requires no elaboration to apply the above point to the corporate media, which have been flaccidly satisfied with official explanations of the DNC matter from the start.

    Qualified experts working independently of one another began to examine the DNC case immediately after the July 2016 events. Prominent among these is a group comprising former intelligence officers, almost all of whom previously occupied senior positions. Veteran Intelligence Professionals for Sanity (VIPS), founded in 2003, now has 30 members, including a few associates with backgrounds in national-security fields other than intelligence. The chief researchers active on the DNC case are four: William Binney, formerly the NSA’s technical director for world geopolitical and military analysis and designer of many agency programs now in use; Kirk Wiebe, formerly a senior analyst at the NSA’s SIGINT Automation Research Center; Edward Loomis, formerly technical director in the NSA’s Office of Signal Processing; and Ray McGovern, an intelligence analyst for nearly three decades and formerly chief of the CIA’s Soviet Foreign Policy Branch. Most of these men have decades of experience in matters concerning Russian intelligence and the related technologies. This article reflects numerous interviews with all of them conducted in person, via Skype, or by telephone.

    WB

    William Binney

    The customary VIPS format is an open letter, typically addressed to the president. The group has written three such letters on the DNC incident, all of which were first published by Robert Parry at www.consortiumnews.com. Here is the latest, dated July 24; it blueprints the forensic work this article explores in detail. They have all argued that the hack theory is wrong and that a locally executed leak is the far more likely explanation. In a letter to Barack Obama dated January 17, three days before he left office, the group explained that the NSA’s known programs are fully capable of capturing all electronic transfers of data. “We strongly suggest that you ask NSA for any evidence it may have indicating that the results of Russian hacking were given to WikiLeaks,” the letter said. “If NSA cannot produce such evidence—and quickly—this would probably mean it does not have any.”

    The day after Parry published this letter, Obama gave his last press conference as president, at which he delivered one of the great gems among the official statements on the DNC e-mail question. “The conclusions of the intelligence community with respect to the Russian hacking,” the legacy-minded Obama said, “were not conclusive.” There is little to suggest the VIPS letter prompted this remark, but it is typical of the linguistic tap-dancing many officials connected to the case have indulged so as to avoid putting their names on the hack theory and all that derives from it.

    Until recently there was a serious hindrance to the VIPS’s work, and I have just suggested it. The group lacked access to positive data. It had no lump of cyber-material to place on its lab table and analyze, because no official agency had provided any.

    Donald Rumsfeld famously argued with regard to the WMD question in Iraq, “The absence of evidence is not evidence of absence.” In essence, Binney and others at VIPS say this logic turns upside down in the DNC case: Based on the knowledge of former officials such as Binney, the group knew that (1) if there was a hack and (2) if Russia was responsible for it, the NSA would have to have evidence of both. Binney and others surmised that the agency and associated institutions were hiding the absence of evidence behind the claim that they had to maintain secrecy to protect NSA programs. “Everything that they say must remain classified is already well-known,” Binney said in an interview. “They’re playing the Wizard of Oz game.”

    New findings indicate this is perfectly true, but until recently the VIPS experts could produce only “negative evidence,” as they put it: The absence of evidence supporting the hack theory demonstrates that it cannot be so. That is all VIPS had. They could allege and assert, but they could not conclude: They were stuck demanding evidence they did not have—if only to prove there was none.

    Research into the DNC case took a fateful turn in early July, when forensic investigators who had been working independently began to share findings and form loose collaborations wherein each could build on the work of others. In this a small, new website called www.disobedientmedia.com proved an important catalyst. Two independent researchers selected it, Snowden-like, as the medium through which to disclose their findings. One of these is known as Forensicator and the other as Adam Carter. On July 9, Adam Carter sent Elizabeth Vos, a co-founder of Disobedient Media, a paper by the Forensicator that split the DNC case open like a coconut.

    By this time Binney and the other technical-side people at VIPS had begun working with a man named Skip Folden. Folden was an IT executive at IBM for 33 years, serving 25 years as the IT program manager in the United States. He has also consulted for Pentagon officials, the FBI, and the Justice Department. Folden is effectively the VIPS group’s liaison to Forensicator, Adam Carter, and other investigators, but neither Folden nor anyone else knows the identity of either Forensicator or Adam Carter. This bears brief explanation.

    The Forensicator’s July 9 document indicates he lives in the Pacific Time Zone, which puts him on the West Coast. His notes describing his investigative procedures support this. But little else is known of him. Adam Carter, in turn, is located in England, but the name is a coy pseudonym: It derives from a character in a BBC espionage series called Spooks. It is protocol in this community, Elizabeth Vos told me in a telephone conversation this week, to respect this degree of anonymity. Kirk Wiebe, the former SIGINT analyst at the NSA, thinks Forensicator could be “someone very good with the FBI,” but there is no certainty. Unanimously, however, all the analysts and forensics investigators interviewed for this column say Forensicator’s advanced expertise, evident in the work he has done, is unassailable. They hold a similarly high opinion of Adam Carter’s work.

    Forensicator is working with the documents published by Guccifer 2.0, focusing for now on the July 5 intrusion into the DNC server. The contents of Guccifer’s files are known—they were published last September—and are not Forensicator’s concern. His work is with the metadata on those files. These data did not come to him via any clandestine means. Forensicator simply has access to them that others did not have. It is this access that prompts Kirk Wiebe and others to suggest that Forensicator may be someone with exceptional talent and training inside an agency such as the FBI. “Forensicator unlocked and then analyzed what had been the locked files Guccifer supposedly took from the DNC server,” Skip Folden explained in an interview. “To do this he would have to have ‘access privilege,’ meaning a key.”

    What has Forensicator proven since he turned his key? How? What has work done atop Forensicator’s findings proven? How?

    Forensicator’s first decisive findings, made public in the paper dated July 9, concerned the volume of the supposedly hacked material and what is called the transfer rate—the time a remote hack would require. The metadata established several facts in this regard with granular precision: On the evening of July 5, 2016, 1,976 megabytes of data were downloaded from the DNC’s server. The operation took 87 seconds. This yields a transfer rate of 22.7 megabytes per second.

    These statistics are matters of record and essential to disproving the hack theory. No Internet service provider, such as a hacker would have had to use in mid-2016, was capable of downloading data at this speed. Compounding this contradiction, Guccifer claimed to have run his hack from Romania, which, for numerous reasons technically called delivery overheads, would slow down the speed of a hack even further from maximum achievable speeds.

    What is the maximum achievable speed? Forensicator recently ran a test download of a comparable data volume (and using a server speed not available in 2016) 40 miles from his computer via a server 20 miles away and came up with a speed of 11.8 megabytes per second—half what the DNC operation would need were it a hack. Other investigators have built on this finding. Folden and Edward Loomis say a survey published August 3, 2016, by www.speedtest.net/reports is highly reliable and use it as their thumbnail index. It indicated that the highest average ISP speeds of first-half 2016 were achieved by Xfinity and Cox Communications. These speeds averaged 15.6 megabytes per second and 14.7 megabytes per second, respectively. Peak speeds at higher rates were recorded intermittently but still did not reach the required 22.7 megabytes per second.

    “A speed of 22.7 megabytes is simply unobtainable, especially if we are talking about a transoceanic data transfer,” Folden said. “Based on the data we now have, what we’ve been calling a hack is impossible.” Last week Forensicator reported on a speed test he conducted more recently. It tightens the case considerably. “Transfer rates of 23 MB/s (Mega Bytes per second) are not just highly unlikely, but effectively impossible to accomplish when communicating over the Internet at any significant distance,” he wrote. “Further, local copy speeds are measured, demonstrating that 23 MB/s is a typical transfer rate when using a USB–2 flash device (thumb drive).”

    Time stamps in the metadata provide further evidence of what happened on July 5. The stamps recording the download indicate that it occurred in the Eastern Daylight Time Zone at approximately 6:45 pm. This confirms that the person entering the DNC system was working somewhere on the East Coast of the United States. In theory the operation could have been conducted from Bangor or Miami or anywhere in between—but not Russia, Romania, or anywhere else outside the EDT zone. Combined with Forensicator’s findings on the transfer rate, the time stamps constitute more evidence that the download was conducted locally, since delivery overheads—conversion of data into packets, addressing, sequencing times, error checks, and the like—degrade all data transfers conducted via the Internet, more or less according to the distance involved.

    In addition, there is the adulteration of the documents Guccifer 2.0 posted on June 15, when he made his first appearance. This came to light when researchers penetrated what Folden calls Guccifer’s top layer of metadata and analyzed what was in the layers beneath. They found that the first five files Guccifer made public had each been run, via ordinary cut-and-paste, through a single template that effectively immersed them in what could plausibly be cast as Russian fingerprints. They were not: The Russian markings were artificially inserted prior to posting. “It’s clear,” another forensics investigator self-identified as HET, wrote in a report on this question, “that metadata was deliberately altered and documents were deliberately pasted into a Russianified [W]ord document with Russian language settings and style headings.”

    To be noted in this connection: The list of the CIA’s cyber-tools WikiLeaks began to release in March and labeled Vault 7 includes one called Marble that is capable of obfuscating the origin of documents in false-flag operations and leaving markings that point to whatever the CIA wants to point to. (The tool can also “de-obfuscate” what it has obfuscated.) It is not known whether this tool was deployed in the Guccifer case, but it is there for such a use.

    It is not yet clear whether documents now shown to have been leaked locally on July 5 were tainted to suggest Russian hacking in the same way the June 15 Guccifer release was. This is among several outstanding questions awaiting answers, and the forensic scientists active on the DNC case are now investigating it. In a note Adam Carter sent to Folden and McGovern last week and copied to me, he reconfirmed the corruption of the June 15 documents, while indicating that his initial work on the July 5 documents—of which much more is to be done—had not yet turned up evidence of doctoring.

    In the meantime, VIPS has assembled a chronology that imposes a persuasive logic on the complex succession of events just reviewed. It is this:

    On June 12 last year, Julian Assange announced that WikiLeaks had and would publish documents pertinent to Hillary Clinton’s presidential campaign.

     

    On June 14, CrowdStrike, a cyber-security firm hired by the DNC, announced, without providing evidence, that it had found malware on DNC servers and had evidence that Russians were responsible for planting it.

     

    On June 15, Guccifer 2.0 first appeared, took responsibility for the “hack” reported on June 14 and claimed to be a WikiLeaks source. It then posted the adulterated documents just described.

     

    On July 5, Guccifer again claimed he had remotely hacked DNC servers, and the operation was instantly described as another intrusion attributable to Russia. Virtually no media questioned this account.

    Assange

    It does not require too much thought to read into this sequence. With his June 12 announcement, Assange effectively put the DNC on notice that it had a little time, probably not much, to act preemptively against the imminent publication of damaging documents. Did the DNC quickly conjure Guccifer from thin air to create a cyber-saboteur whose fingers point to Russia? There is no evidence of this one way or the other, but emphatically it is legitimate to pose the question in the context of the VIPS chronology. WikiLeaks began publishing on July 22. By that time, the case alleging Russian interference in the 2016 elections process was taking firm root. In short order Assange would be written down as a “Russian agent.”

    By any balanced reckoning, the official case purporting to assign a systematic hacking effort to Russia, the events of mid-June and July 5 last year being the foundation of this case, is shabby to the point taxpayers should ask for their money back. The Intelligence Community Assessment, the supposedly definitive report featuring the “high confidence” dodge, was greeted as farcically flimsy when issued January 6. Ray McGovern calls it a disgrace to the intelligence profession. It is spotlessly free of evidence, front to back, pertaining to any events in which Russia is implicated. James Clapper, the former director of national intelligence, admitted in May that “hand-picked” analysts from three agencies (not the 17 previously reported) drafted the ICA. There is a way to understand “hand-picked” that is less obvious than meets the eye: The report was sequestered from rigorous agency-wide reviews. This is the way these people have spoken to us for the past year.

    Behind the ICA lie other indefensible realities. The FBI has never examined the DNC’s computer servers—an omission that is beyond preposterous. It has instead relied on the reports produced by Crowdstrike, a firm that drips with conflicting interests well beyond the fact that it is in the DNC’s employ. Dmitri Alperovitch, its co-founder and chief technology officer, is on the record as vigorously anti-Russian. He is a senior fellow at the Atlantic Council, which suffers the same prejudice. Problems such as this are many.

    “We continue to stand by our report,” CrowdStrike said, upon seeing the VIPS blueprint of the investigation. CrowdStrike argues that by July 5 all malware had been removed from the DNC’s computers. But the presence or absence of malware by that time is entirely immaterial, because the event of July 5 is proven to have been a leak and not a hack. Given that malware has nothing to do with leaks, CrowdStrike’s logic appears to be circular.

    In effect, the new forensic evidence considered here lands in a vacuum. We now enter a period when an official reply should be forthcoming. What the forensic people are now producing constitutes evidence, however one may view it, and it is the first scientifically derived evidence we have into any of the events in which Russia has been implicated. The investigators deserve a response, the betrayed professionals who formed VIPS as the WMD scandal unfolded in 2003 deserve it, and so do the rest of us. The cost of duplicity has rarely been so high.

    I concluded each of the interviews conducted for this column by asking for a degree of confidence in the new findings. These are careful, exacting people as a matter of professional training and standards, and I got careful, exacting replies.

    All those interviewed came in between 90 percent and 100 percent certain that the forensics prove out. I have already quoted Skip Folden’s answer: impossible based on the data. “The laws of physics don’t lie,” Ray McGovern volunteered at one point. “It’s QED, theorem demonstrated,” William Binney said in response to my question. “There’s no evidence out there to get me to change my mind.” When I asked Edward Loomis, a 90 percent man, about the 10 percent he held out, he replied, “I’ve looked at the work and it shows there was no Russian hack. But I didn’t do the work. That’s the 10 percent. I’m a scientist.”

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Today’s News 10th August 2017

  • How A Renewed Korean Conflict Is Going To Be Felt Around The Globe

    Authored by James Durso via TheHill.com,

    The United States and the Republic of South Korea have, until now, had identical interests in the Korean peninsula: defending against a North Korean attack on the South, and keeping the North’s regime at bay until it collapsed from internal contradictions.

    The inevitable ability of North Korea to hit North America with a nuclear-armed intercontinental ballistic missile (ICBM) means the U.S. has to consider striking North Korea preventively, regardless of the casualties in South Korea because no U.S. President will trade San Francisco for Seoul.

    Sen. Lindsey Graham (R-S.C.) recently said President Trump told him,

    "If there’s going to be a war to stop [Kim Jong Un], it will be over there. If thousands die, they’re going to die over there. They’re not going to die here.”

    And National security adviser H.R. McMaster has stated the U.S. is planning a “preventive war” against North Korea.

    What will the president have to consider before he launches a preventative attack on North Korea?

    Casualties in an attack of the North on the South are estimated at 100,000 in Seoul in the first 24 hours. The U.S. military estimates 200,000-300,000 South Korean and U.S. military casualties within 90 days, and even more civilian deaths, many of which may be caused not by North Korean weapons but the collapse of the electric power grid, and the water, transport and sewer systems in a city with one of the highest population densities in the world. Half of the South’s population of over 50 million lives in the Seoul Capital Area, which produces almost half of the country’s gross domestic product.

    The effects would be felt worldwide and immediately as South Korea is a vital part of the global supply chain for high technology equipment, both as end products and parts used by other manufactures. Nor is it likely companies in other countries can quickly pick up the slack: it is estimated that the replacement cost of the display manufacturing capability of Samsung and rival LG will top $50 billion. In the words of one analyst, “If Korea is hit by a missile, all electronics production will stop.”

    Shipping in the nearby Sea of Japan, East China Sea, and Yellow Sea will halt as there may no longer be a destination for the cargo, and spiking maritime insurance rates, if insurance can be had, will make most voyages unprofitable. Shipping to and from major Chinese ports such as Dalian, Qingdao, Shanghai, and Tianjin will halt and disrupt worldwide supply chains. Ships returning to China will have to anchor until the crisis abates, at a cost to the shipping lines (and customers). Most of Japan’s major ports are on the east coast of the main island, Honshu, and will be open for business, though with the threat of North Korean missiles early in the conflict.  

    South Korea imports 98 percent of its fossil fuels and relies exclusively on tankers for liquefied natural gas (LNG) and crude oil. China will also be affected as it is the world’s largest net importer of crude oil and has LNG regasification terminals at Dalian, Qingdao, Shanghai, and Tianjin. Crude and LNG tankers enroute will have to be rerouted, but the product can probably be sold on the spot market.

    The airspace surrounding the Korea Peninsula and northeast China will be closed and will affect passenger and cargo traffic, including at Beijing, the world’s second busiest airport, and Shanghai, the ninth busiest. Eastward traffic to the region will slow and will hit the hub airport, Dubai, which is also a major tourist destination for Asia. Japan will lose eastbound air traffic, but westward traffic from the U.S. less so.

    South Korea imports most of its food as it has little arable land. The U.S. is its largest supplier, providing mostly corn, meat, hides, soybeans, milling wheat, and cotton, so the U.S. farm sector will sag if the crisis happens when produce is on the way to market.

    Of the local allies, Japan may be more disposed to action as it isn’t – literally – on the front line and it has already deployed the PATRIOT surface-to-air interceptor and the AEGIS ship-based anti-ballistic missile system, and it may install the AEGIS Ashore system or the Terminal High Altitude Area Defense (THAAD) system. South Korea will be more reticent as it will absorb the initial blows and the only air defense missiles on its territory, the THAAD system, were deployed by the U.S. in the spring of 2017.

    President Trump will have to weigh Asia’s regional stability and homeland security when making the toughest call since President Truman OK’d the use of nuclear weapons in Japan in 1945.

  • Police Seize Enough Fentanyl "To Kill Half Of NYC" In Recent Bust

    The opioid crisis is killing tens of thousands of Americans a year as powerful synthetic drugs like fentanyl are increasingly mixed in with the heroin supply, killing unsuspecting addicts in greater numbers. These lab-manufactured opioids and their pharmacological cousins are so powerful, a 20-pound mixture of fentanyl and heroin that was recently seized by law enforcement was said to contain enough of the narcotic to kill half of New York City’s 9 million residents, according to one Drug Enforcement Administration agent who spoke with Consumerist.

    The drugs were taken when DEA agents busted a heroin mill operating out of an apartment across the street from Central Park. Police arrested four men, including one who was posing as an Uber driver, for their alleged involvement in the drug-distributing ring.

    According to NYC’s department of Health and Mental Hygiene, fentanyl – which is 50 times more potent than heroin – is driving a spike in fatal overdoses, which reached an all-time high of 1,374 deaths in 2016, a 46% increase over 2015. Nationwide, the rate of drug-related deaths per 100,000 people peaked at 19.7 during the third quarter, up from 16.7 during the same period a year earlier, according to government data released Tuesday. The increase was driven largely by opioids, specifically fentanyl, carfentanil and other synthetics. Deaths from drug overdoses in the US are believed to have surpassed the 60,000 mark last year.

    “Fentanyl is the deadliest street drug to ever hit this country,” said DEA Special Agent-in-Charge James J. Hunt. “This seizure alone contains enough potency to kill half of the population of New York City, if laboratory analysis proves it is all fentanyl. Fentanyl is manufactured death that drug dealers are mixing with heroin.”

    Here’s an account of the bust, courtesy of Consumerist:

    “DEA agents were conducting surveillance near the building on Central Park West on Aug. 4 when they saw one defendant leaving with two boxes inside a large shopping bag. He got into a vehicle driven by another defendant, an Uber driver, with agents following behind.

     

    Investigators stopped the vehicle, and observed the suspect sitting in the backseat with two boxes: One box was open and they could see a clear plastic bag containing a tan powdery substance inside.

     

    After looking more closely at that box — the larger of the two — investigators say they also saw six large cylindrical packages wrapped in tape and plastic wrap.

     

    And in the smaller box, officials spotted a large cylindrical package wrapped in tape and plastic wrap, and a clear plastic bag containing a tan powdery substance.

     

    Agents seized the packages, and arrested both the Uber driver and the passenger. Meanwhile, investigators kept watching the building, and eventually observed a man previously identified as a member of a drug trafficking organization exiting with another man. When questioned by agents, he said he lived in the building, and admitted to having a gun and drugs in the apartment."

    The bust also generated some laughable headlines. According to the Verge, the dealers had branded the some of the packaged heroin with the Uber logo. The drug crew used other corporate logos, like McDonald’s, as well as generic names like “Black Friday.”

    President Donald Trump’s Commission on Drug Addiction and Combating the Opioid Crisis urged the president to declare a state of emergency to help combat the crisis. On Tuesday, Trump said the US has “no alternative” but to triumph over the crisis.

    The US already has the highest rate of drug-related deaths in the world.

  • Krieger Asks: Is Google A Search Engine Or 'Deep State' Organ?

    Authored by Mike Krieger via Liberty Blitzkrieg blog,

    Today’s post should be read as Part 3 of my ongoing series about the now infamous Google memo, and what it tells us about where our society is headed if a minority of extremely wealthy and powerful technocratic billionaires are permitted to fully socially engineer our culture to fit their ideological vision using coercion, force and manipulation. For some context, read Part 1 and Part 2.

    I struggled with the title of this piece, because ever since the 2016 election, usage of the term “deep state” has become overly associated with Trump cheerleaders. I’m not referring to people who voted for Trump, whom I can both understand and respect, I’m talking about the Trump cultists. Like most people who mindlessly and enthusiastically attach themselves to political figures, they tend to be either morons or opportunists.

    Nevertheless, just because the term has been somewhat tainted doesn’t mean I deny the existence of a “deep state” or “shadow government.” The existence of networks of unelected powerful people who formulate and push policy behind the scenes and then get captured members of Congress to vote on it is pretty much undeniable. I don’t believe that the “deep state” is a monolithic entity by any means, but what seems to unite these various people and institutions is an almost religious belief in U.S. imperial dominance, as well as the idea that this empire should be largely governed by an unaccountable oligarchy of billionaires and assorted technocrats. We see the results of this worldview all around us with endless wars, an unconstitutional domestic surveillance state and the destruction of the middle class. These are the fruits of deep state ideology, and a clear reason why it should be dismantled and replaced by genuine governance by the people before they lead the U.S. to total disaster.

    From my own personal research and observations, Google has become very much a willing part of this deep state, with Eric Schmidt being the primary driving force that has propelled the company into its contemporary role not just as a search engine monopoly, but also as a powerful and undemocratic tech arm of the shadow government.

    One of the best things about all the recent attention on the Google memo, is that it has placed this corporate behemoth and its very clear ideological leanings squarely in the public eye. This gives us the space to shine light on some other aspects of Google, which I believe most people would find quite concerning if made aware of.

    To that end, in 2014, Wikileaks published an extremely powerful excerpt from Julian Assange’s book, When Google Met Wikileaks. The post was titled, Google Is Not What It Seems, and it is an incredible repository of information and insight. If you never read it, I suggest you take the time. Below I share some choice excerpts to get you up to speed with what Google is really up to.

    Let’s start with the intro to the piece, which sets the stage…

    Eric Schmidt is an influential figure, even among the parade of powerful characters with whom I have had to cross paths since I founded WikiLeaks. In mid-May 2011 I was under house arrest in rural Norfolk, about three hours’ drive northeast of London. The crackdown against our work was in full swing and every wasted moment seemed like an eternity. It was hard to get my attention. But when my colleague Joseph Farrell told me the executive chairman of Google wanted to make an appointment with me, I was listening.

     

    In some ways the higher echelons of Google seemed more distant and obscure to me than the halls of Washington. We had been locking horns with senior US officials for years by that point. The mystique had worn off. But the power centers growing up in Silicon Valley were still opaque and I was suddenly conscious of an opportunity to understand and influence what was becoming the most influential company on earth. Schmidt had taken over as CEO of Google in 2001 and built it into an empire.

     

    I was intrigued that the mountain would come to Muhammad. But it was not until well after Schmidt and his companions had been and gone that I came to understand who had really visited me.

     

    The stated reason for the visit was a book. Schmidt was penning a treatise with Jared Cohen, the director of Google Ideas, an outfit that describes itself as Google’s in-house “think/do tank.” I knew little else about Cohen at the time. In fact, Cohen had moved to Google from the US State Department in 2010. He had been a fast-talking “Generation Y” ideas man at State under two US administrations, a courtier from the world of policy think tanks and institutes, poached in his early twenties. He became a senior advisor for Secretaries of State Rice and Clinton. At State, on the Policy Planning Staff, Cohen was soon christened “Condi’s party-starter,” channeling buzzwords from Silicon Valley into US policy circles and producing delightful rhetorical concoctions such as “Public Diplomacy 2.0.”2 On his Council on Foreign Relations adjunct staff page he listed his expertise as “terrorism; radicalization; impact of connection technologies on 21st century statecraft; Iran.”3.

    Now I’m going to skip ahead in the piece to the moment where Assange describes his attempt to make contact with the U.S. State Department in 2011 regarding cables Wikileaks was releasing.

    It was at this point that I realized Eric Schmidt might not have been an emissary of Google alone. Whether officially or not, he had been keeping some company that placed him very close to Washington, DC, including a well-documented relationship with President Obama. Not only had Hillary Clinton’s people known that Eric Schmidt’s partner had visited me, but they had also elected to use her as a back channel. While WikiLeaks had been deeply involved in publishing the inner archive of the US State Department, the US State Department had, in effect, snuck into the WikiLeaks command center and hit me up for a free lunch. Two years later, in the wake of his early 2013 visits to China, North Korea, and Burma, it would come to be appreciated that the chairman of Google might be conducting, in one way or another, “back-channel diplomacy” for Washington. But at the time it was a novel thought.

     

    I put it aside until February 2012, when WikiLeaks—along with over thirty of our international media partners—began publishing the Global Intelligence Files: the internal email spool from the Texas-based private intelligence firm Stratfor. One of our stronger investigative partners—the Beirut-based newspaper Al Akhbar—scoured the emails for intelligence on Jared Cohen.The people at Stratfor, who liked to think of themselves as a sort of corporate CIA, were acutely conscious of other ventures that they perceived as making inroads into their sector. Google had turned up on their radar. In a series of colorful emails they discussed a pattern of activity conducted by Cohen under the Google Ideas aegis, suggesting what the “do” in “think/do tank” actually means.

     

    Cohen’s directorate appeared to cross over from public relations and “corporate responsibility” work into active corporate intervention in foreign affairs at a level that is normally reserved for states. Jared Cohen could be wryly named Google’s “director of regime change.” According to the emails, he was trying to plant his fingerprints on some of the major historical events in the contemporary Middle East. He could be placed in Egypt during the revolution, meeting with Wael Ghonim, the Google employee whose arrest and imprisonment hours later would make him a PR-friendly symbol of the uprising in the Western press. Meetings had been planned in Palestine and Turkey, both of which—claimed Stratfor emails—were killed by the senior Google leadership as too risky. Only a few months before he met with me, Cohen was planning a trip to the edge of Iran in Azerbaijan to “engage the Iranian communities closer to the border,” as part of Google Ideas’ project on “repressive societies.” In internal emails Stratfor’s vice president for intelligence, Fred Burton (himself a former State Department security official), wrote:

     

    Google is getting WH [White House] and State Dept support and air cover. In reality they are doing things the CIA cannot do . . . [Cohen] is going to get himself kidnapped or killed. Might be the best thing to happen to expose Google’s covert role in foaming up-risings, to be blunt. The US Gov’t can then disavow knowledge and Google is left holding the shit-bag.

     

    In further internal communication, Burton said his sources on Cohen’s activities were Marty Lev—Google’s director of security and safety—and Eric Schmidt himself. Looking for something more concrete, I began to search in WikiLeaks’ archive for information on Cohen. State Department cables released as part of Cablegate reveal that Cohen had been in Afghanistan in 2009, trying to convince the four major Afghan mobile phone companies to move their antennas onto US military bases. In Lebanon he quietly worked to establish an intellectual and clerical rival to Hezbollah, the “Higher Shia League.” And in London he offered Bollywood movie executives funds to insert anti-extremist content into their films, and promised to connect them to related networks in Hollywood.

     

    Three days after he visited me at Ellingham Hall, Jared Cohen flew to Ireland to direct the “Save Summit,” an event cosponsored by Google Ideas and the Council on Foreign Relations. Gathering former inner-city gang members, right-wing militants, violent nationalists, and “religious extremists” from all over the world together in one place, the event aimed to workshop technological solutions to the problem of “violent extremism.” What could go wrong?

     

    Cohen’s world seems to be one event like this after another: endless soirees for the cross-fertilization of influence between elites and their vassals, under the pious rubric of “civil society.” The received wisdom in advanced capitalist societies is that there still exists an organic “civil society sector” in which institutions form autonomously and come together to manifest the interests and will of citizens. The fable has it that the boundaries of this sector are respected by actors from government and the “private sector,” leaving a safe space for NGOs and nonprofits to advocate for things like human rights, free speech, and accountable government.

     

    This sounds like a great idea. But if it was ever true, it has not been for decades. Since at least the 1970s, authentic actors like unions and churches have folded under a sustained assault by free-market statism, transforming “civil society” into a buyer’s market for political factions and corporate interests looking to exert influence at arm’s length. The last forty years has seen a huge proliferation of think tanks and political NGOs whose purpose, beneath all the verbiage, is to execute political agendas by proxy.

     

    It is not just obvious neocon front groups like Foreign Policy Initiative. It also includes fatuous Western NGOs like Freedom House, where naïve but well-meaning career nonprofit workers are twisted in knots by political funding streams, denouncing non-Western human rights violations while keeping local abuses firmly in their blind spots. The civil society conference circuit—which flies developing-world activists across the globe hundreds of times a year to bless the unholy union between “government and private stakeholders” at geopoliticized events like the “Stockholm Internet Forum”—simply could not exist if it were not blasted with millions of dollars in political funding annually.

     

    In 2011, the Alliance of Youth Movements rebranded as “Movements.org.” In 2012 Movements.org became a division of “Advancing Human Rights,” a new NGO set up by Robert L. Bernstein after he resigned from Human Rights Watch (which he had originally founded) because he felt it should not cover Israeli and US human rights abuses. Advancing Human Rights aims to right Human Rights Watch’s wrong by focusing exclusively on “dictatorships.” Cohen stated that the merger of his Movements.org outfit with Advancing Human Rights was “irresistible,” pointing to the latter’s “phenomenal network of cyberactivists in the Middle East and North Africa.” He then joined the Advancing Human Rights board, which also includes Richard Kemp, the former commander of British forces in occupied Afghanistan. In its present guise, Movements.org continues to receive funding from Gen Next, as well as from Google, MSNBC, and PR giant Edelman, which represents General Electric, Boeing, and Shell, among others.

     

    Google Ideas is bigger, but it follows the same game plan. Glance down the speaker lists of its annual invite-only get-togethers, such as “Crisis in a Connected World” in October 2013. Social network theorists and activists give the event a veneer of authenticity, but in truth it boasts a toxic piñata of attendees: US officials, telecom magnates, security consultants, finance capitalists, and foreign-policy tech vultures like Alec Ross (Cohen’s twin at the State Department). At the hard core are the arms contractors and career military: active US Cyber Command chieftains, and even the admiral responsible for all US military operations in Latin America from 2006 to 2009. Tying up the package are Jared Cohen and the chairman of Google, Eric Schmidt.

    Now here’s a little background on Schmidt.

    Eric Schmidt was born in Washington, DC, where his father had worked as a professor and economist for the Nixon Treasury. He attended high school in Arlington, Virginia, before graduating with a degree in engineering from Princeton. In 1979 Schmidt headed out West to Berkeley, where he received his PhD before joining Stanford/Berkley spin-off Sun Microsystems in 1983. By the time he left Sun, sixteen years later, he had become part of its executive leadership.

     

    Sun had significant contracts with the US government, but it was not until he was in Utah as CEO of Novell that records show Schmidt strategically engaging Washington’s overt political class. Federal campaign finance records show that on January 6, 1999, Schmidt donated two lots of $1,000 to the Republican senator for Utah, Orrin Hatch. On the same day Schmidt’s wife, Wendy, is also listed giving two lots of $1,000 to Senator Hatch. By the start of 2001 over a dozen other politicians and PACs, including Al Gore, George W. Bush, Dianne Feinstein, and Hillary Clinton, were on the Schmidts’ payroll, in one case for $100,000. By 2013, Eric Schmidt—who had become publicly over-associated with the Obama White House—was more politic. Eight Republicans and eight Democrats were directly funded, as were two PACs. That April, $32,300 went to the National Republican Senatorial Committee. A month later the same amount, $32,300, headed off to the Democratic Senatorial Campaign Committee. Why Schmidt was donating exactly the same amount of money to both parties is a $64,600 question.

     

    It was also in 1999 that Schmidt joined the board of a Washington, DC–based group: the New America Foundation, a merger of well-connected centrist forces (in DC terms). The foundation and its 100 staff serves as an influence mill, using its network of approved national security, foreign policy, and technology pundits to place hundreds of articles and op-eds per year. By 2008 Schmidt had become chairman of its board of directors. As of 2013 the New America Foundation’s principal funders (each contributing over $1 million) are listed as Eric and Wendy Schmidt, the US State Department, and the Bill & Melinda Gates Foundation. Secondary funders include Google, USAID, and Radio Free Asia.

     

    Schmidt’s involvement in the New America Foundation places him firmly in the Washington establishment nexus. The foundation’s other board members, seven of whom also list themselves as members of the Council on Foreign Relations, include Francis Fukuyama, one of the intellectual fathers of the neoconservative movement; Rita Hauser, who served on the President’s Intelligence Advisory Board under both Bush and Obama; Jonathan Soros, the son of George Soros; Walter Russell Mead, a US security strategist and editor of the American Interest; Helene Gayle, who sits on the boards of Coca-Cola, Colgate-Palmolive, the Rockefeller Foundation, the State Department’s Foreign Affairs Policy Unit, the Council on Foreign Relations, the Center for Strategic and International Studies, the White House Fellows program, and Bono’s ONE Campaign; and Daniel Yergin, oil geostrategist, former chair of the US Department of Energy’s Task Force on Strategic Energy Research, and author of The Prize: The Epic Quest for Oil, Money and Power.

     

    The chief executive of the foundation, appointed in 2013, is Jared Cohen’s former boss at the State Department’s Policy Planning Staff, Anne-Marie Slaughter, a Princeton law and international relations wonk with an eye for revolving doors. She is everywhere at the time of writing, issuing calls for Obama to respond to the Ukraine crisis not only by deploying covert US forces into the country but also by dropping bombs on Syria—on the basis that this will send a message to Russia and China.41 Along with Schmidt, she is a 2013 attendee of the Bilderberg conference and sits on the State Department’s Foreign Affairs Policy Board.

     

    There was nothing politically hapless about Eric Schmidt. I had been too eager to see a politically unambitious Silicon Valley engineer, a relic of the good old days of computer science graduate culture on the West Coast. But that is not the sort of person who attends the Bilderberg conference four years running, who pays regular visits to the White House, or who delivers “fireside chats” at the World Economic Forum in Davos. Schmidt’s emergence as Google’s “foreign minister”—making pomp and ceremony state visits across geopolitical fault lines—had not come out of nowhere; it had been presaged by years of assimilation within US establishment networks of reputation and influence.   

    On a personal level, Schmidt and Cohen are perfectly likable people. But Google’s chairman is a classic “head of industry” player, with all of the ideological baggage that comes with that role. Schmidt fits exactly where he is: the point where the centrist, liberal, and imperialist tendencies meet in American political life. By all appearances, Google’s bosses genuinely believe in the civilizing power of enlightened multinational corporations, and they see this mission as continuous with the shaping of the world according to the better judgment of the “benevolent superpower.” They will tell you that open-mindedness is a virtue, but all perspectives that challenge the exceptionalist drive at the heart of American foreign policy will remain invisible to them. This is the impenetrable banality of “don’t be evil.” They believe that they are doing good. And that is a problem.

     

    Even when Google airs its corporate ambivalence publicly, it does little to dislodge these items of faith. The company’s reputation is seemingly unassailable. Google’s colorful, playful logo is imprinted on human retinas just under six billion times each day, 2.1 trillion times a year—an opportunity for respondent conditioning enjoyed by no other company in history. Caught red-handed last year making petabytes of personal data available to the US intelligence community through the PRISM program, Google nevertheless continues to coast on the goodwill generated by its “don’t be evil” doublespeak. A few symbolic open letters to the White House later and it seems all is forgiven. Even anti-surveillance campaigners cannot help themselves, at once condemning government spying but trying to alter Google’s invasive surveillance practices using appeasement strategies.

     

    Nobody wants to acknowledge that Google has grown big and bad. But it has. Schmidt’s tenure as CEO saw Google integrate with the shadiest of US power structures as it expanded into a geographically invasive megacorporation. But Google has always been comfortable with this proximity. Long before company founders Larry Page and Sergey Brin hired Schmidt in 2001, their initial research upon which Google was based had been partly funded by the Defense Advanced Research Projects Agency (DARPA). And even as Schmidt’s Google developed an image as the overly friendly giant of global tech, it was building a close relationship with the intelligence community.

     

    In 2003 the US National Security Agency (NSA) had already started systematically violating the Foreign Intelligence Surveillance Act (FISA) under its director General Michael Hayden. These were the days of the “Total Information Awareness” program. Before PRISM was ever dreamed of, under orders from the Bush White House the NSA was already aiming to “collect it all, sniff it all, know it all, process it all, exploit it all.” During the same period, Google—whose publicly declared corporate mission is to collect and “organize the world’s information and make it universally accessible and useful”was accepting NSA money to the tune of $2 million to provide the agency with search tools for its rapidly accreting hoard of stolen knowledge.

     

    In 2004, after taking over Keyhole, a mapping tech startup cofunded by the National Geospatial-Intelligence Agency (NGA) and the CIA, Google developed the technology into Google Maps, an enterprise version of which it has since shopped to the Pentagon and associated federal and state agencies on multimillion-dollar contracts.54 In 2008, Google helped launch an NGA spy satellite, the GeoEye-1, into space. Google shares the photographs from the satellite with the US military and intelligence communities. In 2010, NGA awarded Google a $27 million contract for “geospatial visualization services.”

     

    Around the same time, Google was becoming involved in a program known as the “Enduring Security Framework” (ESF), which entailed the sharing of information between Silicon Valley tech companies and Pentagon-affiliated agencies “at network speed.” Emails obtained in 2014 under Freedom of Information requests show Schmidt and his fellow Googler Sergey Brin corresponding on first-name terms with NSA chief General Keith Alexander about ESF. Reportage on the emails focused on the familiarity in the correspondence: “General Keith . . . so great to see you . . . !” Schmidt wrote. But most reports overlooked a crucial detail. “Your insights as a key member of the Defense Industrial Base,” Alexander wrote to Brin, “are valuable to ensure ESF’s efforts have measurable impact.”

     

    In 2012, Google arrived on the list of top-spending Washington, DC, lobbyists—a list typically stalked exclusively by the US Chamber of Commerce, military contractors, and the petrocarbon leviathans. Google entered the rankings above military aerospace giant Lockheed Martin, with a total of $18.2 million spent in 2012 to Lockheed’s $15.3 million. Boeing, the military contractor that absorbed McDonnell Douglas in 1997, also came below Google, at $15.6 million spent, as did Northrop Grumman at $17.5 million.

     

    If anything has changed since those words were written, it is that Silicon Valley has grown restless with that passive role, aspiring instead to adorn the “hidden fist” like a velvet glove. Writing in 2013, Schmidt and Cohen stated, 

     

    What Lockheed Martin was to the twentieth century, technology and cyber-security companies will be to the twenty-first.

     

    This was one of many bold assertions made by Schmidt and Cohen in their book, which was eventually published in April 2013. Gone was the working title, “The Empire of the Mind”, replaced with “The New Digital Age: Reshaping the Future of People, Nations and Business”. By the time it came out, I had formally sought and received political asylum from the government of Ecuador, and taken refuge in its embassy in London. At that point I had already spent nearly a year in the embassy under police surveillance, blocked from safe passage out of the UK. Online I noticed the press hum excitedly about Schmidt and Cohen’s book, giddily ignoring the explicit digital imperialism of the title and the conspicuous string of pre-publication endorsements from famous warmongers like Tony Blair, Henry Kissinger, Bill Hayden and Madeleine Albright on the back.

     

    Billed as a visionary forecast of global technological change, the book failed to deliver—failed even to imagine a future, good or bad, substantially different to the present. The book was a simplistic fusion of Fukuyama “end of history” ideology—out of vogue since the 1990s—and faster mobile phones. It was padded out with DC shibboleths, State Department orthodoxies, and fawning grabs from Henry Kissinger. The scholarship was poor—even degenerate. It did not seem to fit the profile of Schmidt, that sharp, quiet man in my living room. But reading on I began to see that the book was not a serious attempt at future history. It was a love song from Google to official Washington. Google, a burgeoning digital superstate, was offering to be Washington’s geopolitical visionary.

     

    One way of looking at it is that it’s just business. For an American internet services monopoly to ensure global market dominance it cannot simply keep doing what it is doing, and let politics take care of itself. American strategic and economic hegemony becomes a vital pillar of its market dominance. What’s a megacorp to do? If it wants to straddle the world, it must become part of the original “don’t be evil” empire.

     

    Whether it is being just a company or “more than just a company,” Google’s geopolitical aspirations are firmly enmeshed within the foreign-policy agenda of the world’s largest superpower. As Google’s search and internet service monopoly grows, and as it enlarges its industrial surveillance cone to cover the majority of the world’s population, rapidly dominating the mobile phone market and racing to extend internet access in the global south, Google is steadily becoming the internet for many people. Its influence on the choices and behavior of the totality of individual human beings translates to real power to influence the course of history. 

    If the future of the internet is to be Google, that should be of serious concern to people all over the world—in Latin America, East and Southeast Asia, the Indian subcontinent, the Middle East, sub-Saharan Africa, the former Soviet Union, and even in Europe—for whom the internet embodies the promise of an alternative to US cultural, economic, and strategic hegemony.

    I first became really interested in this side of Google back in 2013, when I read the entire transcript of the Schmidt interview of Assange. For more on the topic, see the post I published at the time: Highlights from the Incredible 2011 Interview of Wikileaks’ Julian Assange by Google’s Eric Schmidt.

    Finally, I think the perfect way to end this piece is with the following tweet:

    //platform.twitter.com/widgets.js

  • Visualizing Guam's Strategic Importance To The US

    In apparent response to Trump's promise of "fire and fury" in the event of any threat to the United States from North Korea, Pyongyang has said it is "carefully examining" a plan to attack the U.S. Territory of Guam, saying they will engulf the island with an "enveloping fire".

    As well as being home to over 162 thousand people, Statista's Martin Armstrong notes that Guam is of key strategic importance to the U.S. military.

    Infographic: Guam's Strategic Importance to the U.S. | Statista

    You will find more statistics at Statista

    With a large proportion of the 544km² occupied by the Andersen Air Force Base in the north, home to rotating deployments of B-1, B-2 and B-52 strategic bombers, and a naval base in the west, it is understandable why the island is sometimes referred to as America's 'permanent aircraft carrier'.

    In terms of personnel, as of March 31, Guam was home to 4,290 active duty Army, Navy and Air Force personnel, 1,739 National Guard/Reserves, as well as 2,133 APF civilians.

  • Whitehead Rages "Anything Goes When You're A Cop In America"

    Authored by John Whitehead via The Rutherford Institute,

    “There is one criminal justice system for citizens – especially black and brown ones – and another for police in the United States.”

     

    Redditt Hudson, former St. Louis police officer

    President Trump needs to be reminded that no one is above the law, especially the police.

    Unfortunately, Trump and Jeff Sessions, head of the Justice Department (much like their predecessors) appear to have few qualms about giving police the green light to kill, shoot, taser, abuse and steal from American citizens in the so-called name of law and order.

    Between Trump’s pandering to the police unions and Sessions’ pandering to Trump, this constitutionally illiterate duo has opened the door to a new era of police abuses.

    As senior editor Adam Serwer warns in The Atlantic, “When local governments violate the basic constitutional rights of citizens, Americans are supposed to be able to look to the federal government to protect those rights. Sessions has made clear that when it comes to police abuses, they’re now on their own. This is the principle at the heart of ‘law and order’ rhetoric: The authorities themselves are bound by neither.”

    Brace yourselves: things are about to get downright ugly.

    By shielding police from charges of grave misconduct while prosecuting otherwise law-abiding Americans for the most trivial “offenses,” the government has created a world in which there are two sets of laws: one set for the government and its gun-toting agents, and another set for you and me.

    No matter which way you spin it, “we the people” are always on the losing end of the deal.

    If you’re a cop in the American police state, you can now break the law in a myriad of ways without suffering any major, long-term consequences.

    Indeed, not only are cops protected from most charges of wrongdoing—whether it’s shooting unarmed citizens (including children and old people), raping and abusing young women, falsifying police reports, trafficking drugs, or soliciting sex with minors—but even on the rare occasions when they are fired for misconduct, it’s only a matter of time before they get re-hired again.

    For example, Oregon police officer Sean Sullivan was forced to resign after being accused of “grooming” a 10-year-old girl for a sexual relationship. A year later, Sullivan was hired on as a police chief in Kansas.

    St. Louis police officer Eddie Boyd III was forced to resign after a series of incidents in which he “pistol-whipped a 12-year-old girl in the face in 2006, and in 2007 struck a child in the face with his gun or handcuffs before falsifying a police report,” he was quickly re-hired by another Missouri police department.

    As The Washington Post reports: “In the District, police were told to rehire an officer who allegedly forged prosecutors’ signatures on court documents. In Texas, police had to reinstate an officer who was investigated for shooting up the truck driven by his ex-girlfriend’s new man. In Philadelphia, police were compelled to reinstate an officer despite viral video of him striking a woman in the face. In Florida, police were ordered to reinstate an officer fired for fatally shooting an unarmed man.”

    Much of the “credit” for shielding these rogue cops goes to influential police unions and laws providing for qualified immunity, police contracts that “provide a shield of protection to officers accused of misdeeds and erect barriers to residents complaining of abuse,” state and federal laws that allow police to walk away without paying a dime for their wrongdoing, and rampant cronyism among government bureaucrats.

    Whether it’s at the federal level with President Trump, Congress and the Judiciary, or at the state and local level, those deciding whether a police officer should be immune from having to personally pay for misbehavior on the job all belong to the same system, all with a vested interest in protecting the police and their infamous code of silence: city and county attorneys, police commissioners, city councils and judges.

    It’s a pretty sweet deal if you can get it, I suppose: protection from the courts, immunity from wrongdoing, paid leave while you’re under investigation, the assurance that you won’t have to spend a dime of your own money in your defense, the removal of disciplinary charges from your work file, and then the high probability that you will be rehired and returned to the streets.

    It’s a chilling prospect, isn’t it?

    According to the New York Times, “Some experts say thousands of law enforcement officers may have drifted from police department to police department even after having been fired, forced to resign or convicted of a crime.”

    It’s happening all across the country.

    This is how perverse justice in America has become.

    Incredibly, while our own protections against government abuses continue to be dismantled, a growing number of states are adopting Law Enforcement Officers’ Bill of Rights (LEOBoR)—written by police unions—which provides police officers accused of a crime with special due process rights and privileges not afforded to the average citizen.

    In other words, the LEOBoR protects police officers from being treated as we are treated during criminal investigations.

    Not only are officers given a 10-day “cooling-off period” during which they cannot be forced to make any statements about the incident, but when they are questioned, it must be “for a reasonable length of time, at a reasonable hour, by only one or two investigators (who must be fellow policemen), and with plenty of breaks for food and water.”

    These LEOBoRs epitomize everything that is wrong with America today.

    Now once in a while, police officers engaged in wrongdoing are actually charged for abusing their authority and using excessive force against American citizens.

    Occasionally, those officers are even sentenced for their crimes against the citizenry.

    Yet in just about every case, it’s still the American taxpayer who foots the bill.

    Human Rights Watch notes that taxpayers actually pay three times for officers who repeatedly commit abuses: “once to cover their salaries while they commit abuses; next to pay settlements or civil jury awards against officers; and a third time through payments into police ‘defense’ funds provided by the cities.”

    This is a recipe for disaster.

    “In a democratic society,” observed Oakland police chief Sean Whent, “people have a say in how they are policed.”

    Yet as I point out in my book Battlefield America: The War on the American People, America is a constitutional republic, not a democracy, which means that “we the people” not only have a say in how we are policed—we are the chiefs of police.

  • From Coke To Coors: Philly Soda Tax Leading To Alcoholism As Beer Now Cheaper Than Soda

    Perhaps The Burning Platform summarized the idiocy of Philadelphia’s soda tax better than anyone to date:

    In a shocking development, the Philadelphia soda tax is a big fucking fail. Who could have predicted that. Democrat government drones and their brain dead minions are so desperate for money to fund their gold plated union pensions and bloated salaries, they lie, cheat and tax the poor into oblivion. Result: lost jobs, further impoverished poor people, no help for children, more closed businesses, and a further hole in the city budget. But at least the city union workers can keep their gold plated pensions – for now. Maff is hard for liberals, but it always wins in the end.

    But, as The Washington Free Beacon points out, the unfortunate side effects of Philly’s disastrous soda tax may not be limited just to the economic consequences enumerated above.  As a study by the Tax Foundation recently found, there are social consequences as well with people now choosing to substitute beer for soda in light of the fact that, well, beer is just cheaper.

    Philadelphia’s tax on sugary drinks has made soda more expensive than beer in the city.

     

    The Tax Foundation released a new study on the excise tax last week, finding that the 1.5-cent per ounce tax has fallen short of revenue projections, cost jobs, and has forced some Philadelphians to drive outside the city to buy groceries.

     

    The study finds that the tax is 24 times higher than the Pennsylvania tax rate on beer.

     

    “Purchases of beer are also now less expensive than nonalcoholic beverages subject to the tax in the city,” according to the study, written by Courtney Shupert and Scott Drenkard. “Empirical evidence from a 2012 journal article suggests that soda taxes can push consumers to alcohol, meaning it is likely the case that consumers are switching to alcoholic beverages as a result of the tax. The paper, aptly titled From Coke to Coors, further shows that switching from soda to beer increases total caloric intake, even as soda taxes are generally aimed at caloric reduction.”

    Soda

     

    While not terribly surprising, the study found that while Philly’s soda tax was sold to taxpayers as a way to raise money for local schools, less than half of the proceeds are actually being used for that purpose. 

    The Tax Foundation points out that unlike most cities, Philadelphia passed the tax specifically to raise revenue, not to fight obesity. The city even includes diet sodas in its tax, as a way to raise money for pre-kindergarten programs.

     

    However, less than half of the $39.4 million collected since the tax went into effect on Jan. 1 has gone to education funding.

     

    “[T]he tax was originally promoted as a vehicle to raise funds for prekindergarten education, but in practice it awards just 49 percent of the soda tax revenues to local pre-K programs,” Shupert and Drenkard write. “Another 20 percent of the soda tax revenues fund government employee benefits or city programs, while the rest of the money will go towards parks, libraries, and community schools.”

    Meanwhile, lower soda sales have already started to claim the jobs of grocery and soda distribution workers.

    Collections from the soda tax are also well below original projections of $92 million per year, due to tax avoidance.

     

    “Soda sales in Philadelphia have also declined since the tax went into effect at the beginning of 2017, threatening the long-run sustainability of the tax,” Shupert and Drenkard write. “According to some local distributors and retailers, sales have declined by nearly 50 percent. This is likely primarily due to higher prices, which discourage purchasing beverages in the city.”

     

    Earlier this year PepsiCo announced it was laying off up to 100 workers because of the tax, which the company blames for costing a 43 percent drop in business.

     

    Philadelphians are also no longer able to buy 12-packs or 2-liters of Pepsi products in grocery stores due to the tax, the Tax Foundation said.

    Way to think it through…

  • This Is The Closest That The U.S. Has Been To Nuclear War Since The Cuban Missile Crisis

    Authored by Michael Snyder via The Economic Collapse blog,

    Are we on the verge of a nuclear war with North Korea?  It has now been confirmed that North Korea has successfully created a miniaturized nuclear warhead, and last month they tested a missile that can reach at least half of the continental United States.  Since 1994 the U.S. has been trying to stop North Korea’s nuclear program, and every effort to do so has completely failed.  Last September, the North Koreans detonated a nuclear device that was estimated to be in the 20 to 30 kiloton range, and back in January President Trump pledged to stop the North Koreans before they would ever have the capability to deliver such a weapon to U.S. cities.  But now the North Koreans have already achieved that goal, and they plan to ultimately create an entire fleet of ICBMs capable of hitting every city in America.

    Right now, North Korea and the Trump administration are locked in a game of nuclear chicken.  Kim Jong Un’s regime is never, ever, ever going to give up their nuclear weapons program, and so that means that either Donald Trump is going to have to back down, find another way to deal with North Korea, or use military force to eliminate their nuclear threat.

    And time is quickly running out for Trump to make a decision, because now that North Korea has the ability to produce miniaturized nuclear warheads, the game has completely changed.  The following comes from the Washington Post

    North Korea has successfully produced a miniaturized nuclear warhead that can fit inside its missiles, crossing a key threshold on the path to becoming a full-fledged nuclear power, U.S. intelligence officials have concluded in a confidential assessment.

     

    The new analysis completed last month by the Defense Intelligence Agency comes on the heels of another intelligence assessment that sharply raises the official estimate for the total number of bombs in the communist country’s atomic arsenal. The U.S. calculated last month that up to 60 nuclear weapons are now controlled by North Korean leader Kim Jong Un. Some independent experts believe the number of bombs is much smaller.

    The truth is that nobody actually knows how many nukes North Korea has at this point, and they are pumping out more all the time.

    Yes, the Trump administration could order an absolutely devastating military strike on North Korea.  But if the North Koreans even get off one nuke in response, it will be the greatest disaster for humanity since at least World War II.

    But at this point Trump doesn’t sound like someone that intends to back down.  In fact, on Tuesday he threatened North Korea with “fire and fury” if they keep threatening us…

    “North Korea best not make any more threats to the United States,” Trump said from the clubhouse at his golf course in Bedminster, N.J.

     

    “He has been very threatening beyond a normal state, and as I said they will be met with the fire and fury and frankly power, the likes of which this world has never seen before.”

    In response to Trump’s comments, the North Koreans threatened to hit Guam with a pre-emptive strike…

    If Trump thought that his bluff would be sufficient to finally shut up North Korea, and put an end to Kim’s provocative behavior, well… bluff called because North Korea’s state-run KCNA news agency reported moments ago that not only did N.Korea escalate the tensions up another notch, but explicitly warned that it could carry out a “pre-emptive operation once the US shows signs of provocation”, and that it is “seriously considering a strategy to strike Guam with mid-to-long range missiles.”

    Most Americans appear to be completely oblivious to the seriousness of this crisis.  Once we hit North Korea, they will respond.  A single nuke could potentially kill millions in Tokyo, Japan or Seoul, South Korea.  And the North Koreans also have some of the largest chemical and biological weapons stockpiles on the entire planet.  If things take a bad turn, we could see death and destruction on a scale that is absolutely unprecedented.

    And if the North Koreans launch an invasion of South Korea, we will instantly be committed to a new Korean War and thousands upon thousands of our young men and women will be sent over there to fight and die.

    There is no possible way that a military conflict with North Korea is going to end well.  If things go badly, millions could die, and if things go really badly tens of millions of people could end up dead.

    But members of the Trump administration continue to insist that “a military option” is on the table…

    In an interview broadcast Saturday on MSNBC’s Hugh Hewitt Show, national security adviser H.R. McMaster said the prospect of a North Korea armed with nuclear-tipped ICBMs would be “intolerable, from the president’s perspective.”

     

    “We have to provide all options . . . and that includes a military option,” he said.

    Of course letting North Korea construct an entire fleet of ICBMs that could endanger the entire planet is not exactly a palatable option either.  The Clinton, Bush and Obama administrations all kicked the can down the road year after year, and now we facing a nightmare problem that does not appear to have a good solution.

    Unfortunately for Trump, time has now run out and a decision has to be made

    “Today is the day that we can definitely say North Korea is a nuclear power,” Harry Kazianis, director of defense studies at the Center for the National Interest, told USA TODAY.

     

    “There is no more time to stick our heads in the sand and think we have months or years to confront this challenge.”

    And then there is today's statement from The Pentagon:

    "The United States and our allies have the demonstrated capabilities and unquestionable commitment to defend ourselves from an attack.

     

    Kim Jong Un should take heed of the United Nations Security Council's unified voice, and statements from governments the world over, who agree the DPRK poses a threat to global security and stability.

     

    The DPRK must choose to stop isolating itself and stand down its pursuit of nuclear weapons. The DPRK should cease any consideration of actions that would lead to the end of its regime and the destruction of its people.

     

    President Trump was informed of the growing threat last December and on taking office his first orders to me emphasized the readiness of our ballistic missile defense and nuclear deterrent forces.

     

    While our State Department is making every effort to resolve this global threat through diplomatic means, it must be noted that the combined allied militaries now possess the most precise, rehearsed and robust defensive and offensive capabilities on Earth.

     

    The DPRK regime's actions will continue to be grossly overmatched by ours and would lose any arms race or conflict it initiates."

    Roughly translated – stop… or you'll lose (bigly).

    Let us pray that a way can be found to derail North Korea’s nuclear program that does not involve us going to war.

    Because the moment that U.S. forces start striking North Korea, the North Koreans could literally unleash hell if they are inclined to do so.

    It appears that we are now closer to nuclear war than we have been at any point since the Cuban missile crisis. 

    A nuclear holocaust was avoided back then, and hopefully a way will be found to avoid one now.

  • Syrian Army Poised To Retake Last Al-Qaeda Held District In Damascus

    This week the Syrian Army has been pounding the last al-Qaeda held district of Damascus, and as Alarabiya TV reports, an all out ground assault by the army is looking "imminent". Jobar lies within the Syrian capital's eastern side and extends close to the center of the city. The district has been held by armed opposition groups since 2013, and quickly became ground zero for al-Qaeda presence in Damascus over the past years. While the neighboring Old City and downtown districts have largely returned to normalcy after years of nation wide fighting – even including a thriving nightlife of bars, nightclubs, and restaurants – mortar shells have routinely been lobbed from Jobar. Christian and Shia neighborhoods of the Old City near "Straight Street" have been especially impacted.

    But now as external supply lines to various armed opposition pockets throughout Syria have been more or less reduced and restricted, especially with Trump's recent closure of the CIA's Syrian arms program and with Saudi-Qatari GCC infighting, and as the Syrian Army has mostly confined al-Qaeda fighters operating in the country's North to Iblib, the army is promising a full and final liberation of Jobar.


    Explosions light up the Damascus sky with Mt. Qasioun in the background.
    Photo provided by a local Damascus photographer, via Leith Fadel.

    Middle East based Al-Masdar News spoke to a military officer of Syria's elite 42nd Brigade of the 4th Mechanized Division, now advancing in Jobar, and summarized the situation as follows:

    His unit captured more than ten building blocks around the Al-Manasher Roundabout, killing and wounding several militants from Hay’at Tahrir Al-Sham and Faylaq Al-Rahman.

     

    The officer added that the Syrian Army will continue to advance on the ground during the day and pound the Islamist rebels with surface-to-surface missiles at night; they will stop their assault once Jobar is cleared or the militants surrender.


    The specific groups operating in Jobar primarily include the Islamist group Faylaq Al-Rahman and al-Qaeda linked Hay’at Tahrir Al-Sham (HTS/al-Nusra). HTS also recently made headlines after emerging victorious against other Islamist factions in consolidating control over Idlib Province, where it currently seeks to establish a caliphate. It forced out main rival, Ahrar al-Sham, which was favored by Turkey and other external powers seeking to topple the Syrian government. Western media outlets and prominent think tank 'experts' had long defended al-Qaeda linked Ahrar al-Sham as 'moderate' – yet in reality HTS dominance over Idlib was strengthened only after, according to multiple reports, "thousands of hardline Ahrar al Sham fighters, who are sympathetic to al-Qaida, defected from the movement to join JFS in forming the HTS alliance." Currently, Russia in conjunction with other international powers are weighing military operations to dislodge the northwestern province from HTS control. 

    Residents throughout Damascus are currently experiencing frequent rattling and shaking of buildings as fighting is now at the most intense it's been in months or perhaps years – mortars, rockets, and tank fire is lighting up the night sky. This week dozens of Syrian soldiers have been reported killed during fighting in and near the capital.

    A number of areas in Damascus that once had heavy barricades and frequent checkpoints are reducing the restricted movement zones as life begins to return to normal. The impending liberation of Jobar district from al-Qaeda would take the pressure off of the millions of Syrians living in urban Damascus who have long been under constant threat of mortar fire and terror attack. But liberation of all of East Ghouta, which stretches far outside the city environs, is likely going to be a long extended campaign against what is already morphing into an endless 'underground' insurgency which will keep the fires burning in Syria.

  • Fired Coder Speaks Out On Google's "Potentially Illegal Practices", "Recorded Meetings" And "Science Denial"

    For those who have managed to avoid this storyline, James Damore, now a former Google employee, caused outrage when he circulated a manifesto on Friday, complaining about Google’s “ideological echo chamber,” alleging women have lower tolerance for stress and that conservatives are more conscientious. By Monday, the chess master, who studied at Harvard, Princeton and MIT and worked at Google’s Mountain View HQ, was fired after the search giant’s chief executive, Sundar Pichai, said portions of Damore’s 10-page memo “violate our code of conduct and cross the line by advancing harmful gender stereotypes” despite saying in the same memo that Google employees shouldn’t be afraid of speaking their minds.

    Now, for the first time, the former Googler sat down for a YouTube interview with University of Toronto professor of psychology, Jordan Peterson, to discuss the circumstances leading up to the release of his controversial memo and the fallout that has resulted since. 

    In this first exchange, Damore explains that he decided to write his now-infamous memo after attending a ‘secretive’ Google “diversity summit” in which he says presenters talked about “potentially illegal practices” intended to “try to increase diversity…basically treating people differently based on what their race or gender are.”

    Peterson:  “Why did you do this?”

     

    Damore:  “About a month and a half ago, I went to one of our diversity summits, all of it unrecorded and super-secret and they told me a lot of things that I thought just were not right.”

     

    Peterson:  “Ok, what do you mean ‘unrecorded and super-secret?'”

     

    Damore:  “Most meetings at Google are recorded.  Anyone at Google can watch it.  We’re trying to be really open about everything…except for this.  They don’t want any paper trail for any of these things.” 

     

    “They were telling us about a lot of these potentially illegal practices that they’ve been doing to try to increase diversity.  Basically treating people differently based on what their race or gender are.” 

     

    Peterson:  “Ok, why?”

     

    Damore:  “Because I think it’s illegal.  As some of the internal polls showed, there were a large percentage of people who agreed with me on the document.  So, if everyone got to see this stuff, then they would really bring up some criticism.” 

    Damore also talks about how he originally published his memo over a month ago but upper-management largely ignored it until it started to garner media attention.  Then, once it went viral, upper management organized a coordinated attack and misrepresented facts in order to silence him.

    Damore: “I actually published this document about a month ago; it’s only after it had gone viral and leaked to the news, that Google started caring.” 

     

    “There was a lot of upper management that started to call it out and started saying how harmful it is.  This sort of viewpoint is not allowed at Google.”

     

    Peterson:  “Yeah, what sort of viewpoint exactly?  The idea that there are differences between men and women that might actually play a role in the corporate world?  That’s an opinion that’s not acceptable?”

     

    Damore:  “Yeah, it seems so.  And there’s a lot of misrepresentation by upper-management just to silence me, I think.” 

    On why he was fired:

    Peterson:  “What was there rationale for firing you exactly?  What was the excuse that was given?”

     

    Damore:  “So, the official excuse was that I was perpetuating gender stereotypes.” 

    And finally, an interesting tidbit in which Damore once again points out that Google’s progressives are all too eager to put on their science hats when discussing climate change but are less eager to entertain scientific facts when they’re deemed ‘inconvenient.’

    Damore:  “I’m not sure how they can expect to silence so many engineers and intelligent people and just deny science like this”

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Today’s News 9th August 2017

  • Russia Launches $100 Million Bitcoin-Mining Operation

    In what some have called a “watershed” moment for bitcoin, Bloomberg reports that a company co-owned by an aide to Russian President Vladimir Putin is seeking to expand Russia’s bitcoin-mining industry, leveraging Russia's cheap energy to rival China as the world’s largest mining market.

    The company, known as Russian Miner Coin, or RMC, is seeking to raise $100 million in an initial coin offering, promising buyers a right to 18% of the company’s mining revenue, according to a presentation cited by Bloomberg.

    “Russian Miner Coin is holding a so-called initial coin offering, where investors will use units of Ethereum or bitcoin to buy new RMC tokens. These new tokens will have rights to 18 percent of the revenue earned with the company’s mining equipment, according to a presentation posted on its website.”

    According to Brian Kelly, a frequent CNBC contributor, the announcement is a “watershed” development in the history of bitcoin because it suggests that Putin recognizes the value of the pioneering digital currency as a reserve asset. The Russian president has already expressed an interest in blockchain technology – particularly Ethereum. In June, he met with Ethereum founder Vitalik Buterin on the sidelines of the St. Petersburg Economic Forum and offered his support for Buterin’s plans to help local partners adopt the technology in Russia.

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    Russia offers several advantages for bitcoin miners: For example, its excess power capacity is substantial.

    “Russia has 20 gigawatts of excess power capacity, with consumer electricity prices as low as 80 kopeks (1.3 cents) per kilowatt hour, which is less than in China, RMC said in the presentation."

    The company plans to build its own mining hardware using computer chips designed in Russia.

    “RMC plans to use semiconductor chips designed in Russia for use in satellites to minimize power consumption in computers for crypto-mining, Putin’s internet ombudsman, Dmitry Marinichev, said at a news conference in Moscow. Russia has the potential to reach up to 30 percent share in global cryptocurrency mining in the future, Marinichev said, adding that $10 million from the proceeds of the ICO may be spent developing the processors.”

    Though, in the beginning, the firm will rely on Bitfury chips. Bitfury, a company that manufactures mining equipment and also operates its own mining operations, was founded by Valery Vavilov, a Russian-speaking native of Latvia.

    The company initially plans to locate mining computers based on Bitfury chips in individual Russian households to challenge Bitmain by using Russia’s lower power prices.”

    Already, at least one Russian government entity is experimenting with blockchain tech. The Central Bank of Russia has already deployed an Ethereum-based blockchain as a pilot project to process online payments and verify customer data with lenders including Sberbank PJSC.

    The vote of confidence from a close Putin associate has helped lift the bitcoin price to all-time highs, according to data from CryptoCompare.

     


     

  • Australian City Council Halts Construction Of Synagogue Over Fears That ISIS Could Target It

    Authored by Daniel Lang via SHTFplan.com,

    People living in the West have given up a lot to satisfy their government’s concerns over terrorism. Here in the US for instance, our right to privacy in our homes, on our persons, and especially in our communications, has essentially died since 9/11. Everything we say on our phones or search on the internet is catalogued by the NSA without a warrant, we can’t fly on an airplane without being groped and prodded by TSA agents, it’s now fairly common to be forced through police checkpoints many miles away from any border.

    The US isn’t alone in this regard. Across the board, every Western nation has sacrificed essential freedoms in the name of combating terrorism. The only difference is that unlike in the US, most Western nations have sacrificed more speech related freedoms rather than privacy (though all Westerners have lost both rights to some degree). This is especially true in Europe and Canada, where expressing right wing opinions or criticizing Islam is now considered a hate crime, and is believed to be an invitation for more terrorist attacks.

    Australians however, seems to be close to losing their right to practice any religion they want. That’s what the Jewish community in Sydney learned recently when they tried to build a synagogue. Residents and city council members decided to not let the structure come to fruition because they feared it would invite terrorist attacks.

    The temple was to be built in Bondi, a short walk from Australia’s famous Bondi Beach. But locals worried that the space would pose a security risk to nearby residents, motorists and pedestrians. As evidence of that threat, the council pointed to the synagogue’s own design, which included setback buildings and blast walls. They also said the design would have an “unacceptable impact” on the street and neighbourhood.

     

    “A number of residents agreed with the contentions … and provided additional evidence against the development of the site,” the council said in a statement.

    And on top of that, the courts complained that the building’s design would only protect the worshipers inside.

    But the court sided with the council. In its decision, the court explained that western countries are under threat from Daesh, also known as ISIS or ISIL, and that the potential of an attack in Australia is considered “probable” by government officials. The court also noted that the designs would serve only to protect those inside the building, not those outside.

    You know the West is slipping into collectivist madness, when you can’t construct a building that is only designed to protect the people inside of it from an external threat. That would be like saying that you’re not allowed to own body armor because it doesn’t protect bystanders from gunfire. (Oh wait, body armor is highly regulated in Australia and most people who aren’t cops, soldiers, or security guards can’t own it? Color me shocked.) But worst of all, the refusal to let this synagogue be built is nothing more than an admission that the terrorists have won.

    “The decision is unprecedented,” Rabbi Yehoram Ulman told news.com.au. “Its implications are enormous. It basically implies that no Jewish organization should be allowed to exist in residential areas. It stands to stifle Jewish existence and activity in Sydney and indeed, by creating a precedent, the whole of Australia, and by extension rewarding terrorism.”

    It’s such a big win for terrorism that I doubt any terrorist organization ever expected to have these results. Here’s a country of 24 million people that has lost less than 10 people to terrorism over the past 20 years. They all died at the hands of Islamic radicals, who are known to despise Judaism. Sydney’s response is to prevent a Synagogue from being built in a vain effort to prevent more terrorist attacks. The city is doing exactly what Islamic terrorists want them to do, and these terrorists barely had to lift a finger.

    If this kind of moral weakness isn’t overcome in the West, then our freedoms will not survive the next generation.

  • The Opioid Crisis Is Even Worse Than We Thought

    America’s opioid epidemic is now killing more than 100 people every day, fueling a public-health crisis that’s straining state and local resources – even forcing at least one Pennsylvania coroner to increase his freezer capacity to make room for all of the bodies.

    And according to one recently published study, the epidemic may be killing more Americans than previously believed. The study, published in the American Journal of Preventative Medicine, suggests that certain states may have underestimated the rate of opioid- and heroin-related deaths, skewing national death totals by more than 20%. In 2014, the most recent year covered by the study, the rate of opioid-related deaths was, in reality, 24% higher than the official count.   

    Meanwhile, data from the CDC released Tuesday show that drug overdose deaths peaked in the third quarter of last year, with 19.7 for every 100,000 people, compared with 16.7 in the same period the year before.

    Trump signed an executive order in March creating a national opioid commission to recommend strategies for combating the crisis. The commission, which is being led by New Jersey Gov. Chris Christie, has already urged Trump to declare a national emergency to deal with the opioid crisis. A final list of recommendations is expected by Oct. 1.

    "We will fight this deadly epidemic and the United States will win," Trump said during a press briefing on Tuesday called to address the opioid epidemic. "We will win. We have no alternative."

    Discrepancies arise when death certificates don’t specify the class of drug, or the specific drug, responsible for a given death. In certain states, the corrected opioid-related death rates were significantly higher than what had previously been reported. In Pennsylvania, which had the highest discrepancy, the real rate was more than double the official rate, with deaths per 100,000 rising to 17.8 from 8.5. Indiana, Alabama, Louisiana and Kentucky were also guilty of “substantially” underreporting death rates.

    According to government data, Pennsylvania had the 32nd highest reported opioid mortality rate and the 20th highest reported heroin mortality rate in the country. But the study found that nearly half of opioid and heroin-related deaths weren’t counted. When the data were corrected, Pennsylvania’s ranking rose to the fourth-highest opioid mortality rate, and seventh-highest heroin mortality rate.

    The corrected data also yielded more “coherent” geographic patterns by eliminated discrepancies caused by quirks in how fatality data are collected in each state.

    “Specifically, the corrected death rates demonstrate that opioid involved mortality was concentrated in the Mountain States, Rust Belt, and Industrial North—extending to New England—and much of the South, whereas heroin deaths were particularly high in the Northeast and Rust Belt, but less so in the South or Mountain States. The results were less apparent when using reported rates, because high mortality in states such as Pennsylvania and Indiana were concealed by a frequent lack of specificity about drug involvement on death certificates.”

    The study, which analyzed data on drug-related deaths collected between 2008 and 2014, found that heroin-related deaths increased more rapidly in most states, except for Montana, North Dakota, South Dakota and Nebraska. Nationwide, the increase in heroin-involved mortality was underestimated by around 18%, while the change in opioid-related fatalities was negligible.

    Drug-overdose deaths in 2015 killed 52,000 Americans, more than gun homicides or car accidents. Preliminary data suggest that number grew to nearly 60,000 in 2016. In one Ohio county, deaths from drug overdoses – the bulk of which were caused by powerful synthetic opioids like fentanyl – surpassed deaths from homicides, suicides and car crashes combined.

    And 2017 is expected to be even worse.

    Read the full study below:

    2017.08.08ajpmopiates by zerohedge on Scribd

     

     

     

  • The Globalist Agenda Is Being Met: "To Collapse The United States Internally And Attack It Externally"

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

    “An elected legislature can trample a man’s rights as easily as a king.”

    Mel Gibson as Benjamin Martin, in “The Patriot”

    The rights of the American people have been, and are being trampled into the dust, as the pseudo-representatives glut themselves from the trough of lobbyists and oligarchs alike.  It could be proven, but won’t be proven: the investigating “authority” is not accountable to the people and there is no oversight.  The FBI, and any investigations under special counsel?  Look at Fast and Furious and how the Attorney General’s office covered that one up.  What is needed to prove it?  Something that doesn’t exist.  Here is what is needed:

    A team of spotless individuals with a leader of unquestionable character and service…with complete authority and impunity: unable to be hindered by any federal, state, or local police and army of “authorities.”  This Special Investigative Team would have the power to investigate fully any and all ties to Congressmen, Senators, and Supreme Court judges…to find evidence of bribery, kickbacks, and influence peddling…and then arrest them and bring them to trial.

    Everyone can jump up and down, desiring to boil in oil anyone making such a suggestion; however, without some kind of accountability, these elected officials are running rampant and trampling the rights of the citizens.  Who is going to stop it?  The courts?  The courts are the biggest pack of crooks of all.  Yes, “Your Honor,” and “The Honorable,” ad infinitum.

    I guarantee that a Special Investigator with impunity would have found plenty of coral snakes under Chief (in)Justice John Roberts’ front porch…if Obama and Holder had been made to step aside and an investigation had been done.  This should have been done after he cast his deciding vote on Obamacare.  Going back a few years, Obamacare would have never made it to the floor of the Senate if Olympia Snow (R, ME) had not allowed it to come up for a vote.  Who paid her off?

    In order to follow the money, you have to be allowed to follow it: or you’ll just end up arrested or dead.

    The special unit of investigators I suggested?  They need to be armed to the teeth, and they need giant, shiny badges that every human in the Western Hemisphere will recognize.  And why not?  It worked for Elliot Ness and his team.  This won’t be done, of course, for one reason:

    The method would work and the crooked politicos would be caught.

    In a system replete with corruption, we can’t have a group of investigators who are not corrupt and “untouchable,” because that would threaten the existing social, political, economic, and religious order.  We have a Supreme Court that selectively interprets legislation, effectively bypassing checks and balances under the Constitution and establishing themselves as lawmakers, or “law-breakers,” whichever you prefer.  But they are “jaw-breakers,” and in essence breaking the people’s jaws to prevent argument as they stick the rings in their noses and then recess for three months to hide.  There is no accountability fostered upon them, no recourse for their “Supreme Decisions” that affect 315 million people.

    The “Tyranny of the Majority” in action once more.

    McCain.  McCain is the epitome of the reason that term limits should be placed upon representatives.  McCain is the prime example of why a Special Investigative Unit is needed.  Really?  Champion McCain, just coming off of the deck from brain surgery in the 13th round, to score a knockout against the American people?  Who lined his pockets?  Who?  Was it the insurance companies, or was it Soros?  Where do we find the individuals who will not be bought to investigate this matter?

    We will never be allowed to have such special personnel to investigate a matter such as McCain’s “vote”: this is because the people are not in charge.  We are ruled, not governed.

    McCain was the one who orchestrated the ousting of the duly elected President of Ukraine, Yanukoyvich, who was elected under Ukrainian Constitutional law.  Is that in itself not a violation of the Logan Act?  Oh, but since McCain and company were acting on behalf of the American people as their elected officials, it’s all well and good, then.

    McCain is part of the bigger picture, and look at the titanic struggle that has already transpired for clarification: the struggle between the establishment to impose an individual mandate, and the public to resist it.  The vote?  It is scripted at this point.

    McConnell and Ryan all “ooh’s” and “aah’s” with the Don Adams/Agent 86 line: “Missed it by that much!”

    Wrong.  They didn’t miss a beat.  All of the Congress (in this latest vote…the word “vote,” what a joke) with a final tally of 49-51…making it appear to be a close one.  They only did it that way to not unseat half of Congress (Republican or not), and the Republicans who voted to repeal could point at it, “They voted to repeal”…when the failed vote was a done deal long before it came to the floor.   McCain did his job for the Establishment, and he’ll be on his way out of the Senate to retire soon enough…. and voila!  The individual mandate remains.

    The individual mandate is the prize they have fought for more than 100 years.  They will not relinquish that stranglehold from the throat of the American people.  The steppingstone to a single-payer system, the individual mandate assures that you will be accountable to the State whether you are a housewife or a homeless beggar.

    Of course, Congress, the Administration, the Courts, and the rest of the Politburo are exempt from the individual mandate, now, aren’t they?

    The President has no effectiveness.  I wrote a piece earlier this year, entitled The President Needs to Purge and Start Fresh: White House Staff Has Been Infiltrated and Infested.  Here is an excerpt from that piece:

    “…the President is beset by forces in Washington and in the White House who are determined to derail his “cleansing” efforts and continue with their own actions.  Those forces are spearheaded by the RINO (Republicans In Name Only) “5th Columnists” either working directly for and with the Democratic Party or independently of them but for the interests of the Globalist Network.”

    I also wrote another article entitled Trump Off and Running But He Can’t Do It Alone: Six Things Americans Must Do To Make Real Change Happen.  Please read this:

    “Around November [2017] the Congressmen and Senators will begin to campaign.  They will be a year out, and in order to keep their seats in the midterm election in November of 2018, there will have to be a good track record for the next year, with visible results within 6 to 8 months.  There is also no excuse, now.  The Republican Party holds the House and the Senate.  There is nothing from a legislative perspective that the President cannot accomplish, at least for the next year and nine months.  Of course, this will take solidarity within the Republican Party, and the Republicans have not had a very good track record in this department…”

    I also wrote about this , after the President was elected, but before his inauguration, with this article entitled Trump Can’t Stop It: The People Who Have Been Orchestrating the Collapse Have Not Halted Their Agendas.  This excerpt explains the entire point of this current piece, as well:

    “The globalists need the illusion of a two-party system to enable a “reprieve” in the minds of the people with the rise of a Bush or a Trump…but the reprieve is merely an illusion.  If these Marxist traitors forced their agenda on the people all at once, there would have been a revolution at its inception.  They alternate: destroy the society and the culture to the max under a Democrat administration, and then “scale back” a bit under a Republican administration while still nipping away at the edges with an “Act” here or a “piece of legislation” there.

     

    It may take them a little longer, but Trump will not be able to undo the current course toward the collapse of the United States and the relinquishing of national sovereignty in favor of global governance.”

    McCain just became the key player in the “it just takes one man” mantra…with the refusal to repeal Obamacare and negate the individual mandate.  In the meantime, the Cloward and Piven, Alinsky, and Van Jones methods employed to collapse American society are paralleled by the threats of war, either orchestrated by the U.S. or otherwise.  Bush Jr. was flagging in popularity and then decided to invade Iraq.  It gave him the election and another 4 years.  History repeats itself.

    War is right around the corner, and the globalist agenda is being met: to collapse the United States internally and attack it externally.  I stand by my prior statements regarding the latter:

    The next world war will be initiated by an EMP (Electromagnetic Pulse) weapon detonated over the continental U.S., followed by a nuclear exchange and an attack by conventional forces.

    In the meanwhile, traitors such as McCain continue to collapse the system within and advance the agendas of their paymasters.  Can anyone honestly take one look at McConnell and say that he did not know of McCain’s vote prior to it being cast?  They are not representatives…they have misrepresented themselves and do not reflect the will of the American people.  Because of this, the U.S. has been on its deathbed for more than 8 years.  We all hoped that with a new President things would turn around, but that doesn’t appear to be very likely at this point in time.

  • South Dakota Airmen Arrive "Ready To Fight Tonight" From Guam

    It appears things are starting to move fast…

    Pacific Air Forces Public Affairs reports from Joint Base Pearl Harbor, Hawaii

    Two U.S. Air Force B-1B bombers, under the command of U.S. Pacific Air Forces, joined their counterparts from the Republic of Korea and Japanese air forces in sequenced bilateral missions, August 7.

    This serves as the first mission for the crews and aircraft recently deployed from Ellsworth Air Force Base, South Dakota in support of U.S. Pacific Command’s Continuous Bomber Presence missions.

    After taking off from Andersen Air Force Base, Guam, the B-1s assigned to the 37th Expeditionary Bomb Squadron, flew to Japanese airspace, where they were joined by Koku Jieitai (Japan Air Self Defense Force) F-2 fighter jets. The B-1s then flew over the Korean Peninsula where they were joined by Republic of Korea Air Force KF-16 fighter jets. The B-1s then performed a pass over the Pilsung Range before leaving South Korean airspace and returning to Guam.

    Throughout the approximately 10-hour mission, the aircrews practiced intercept and formation training, enabling them to enhance their combined capabilities and tactical skills, while also strengthening the long standing military-to-military relationships in the Indo-Asia-Pacific region.

    Ellsworth B-1s were last deployed to Guam in August 2016 when they took over CBP operations from the B-52 Stratofortress bomber squadrons from Minot AFB, North Dakota, and Barksdale AFB, Louisiana.

    “How we train is how we fight and the more we interface with our allies, the better prepared we are to fight tonight,” said a 37th EBS B-1 pilot. “The B-1 is a long-range bomber that is well-suited for the maritime domain and can meet the unique challenges of the Pacific.”

    Aircrews, maintenance and support personnel, will continue generating B-1 bomber sorties to demonstrate the continuing U.S. commitment to stability and security in the Indo-Asia-Pacific region, providing commanders with a strategic power projection platform and fulfilling the need for anytime mission-ready aircraft, an important part of national defense during a time of high regional tension.

    “While at home station my crews are constantly refining their tactics and techniques so that we can better integrate with our counterparts from other nations,” said Lt. Col. Daniel Diehl, 37th EBS, commander. “As demonstrated today, our air forces stand combat-ready to deliver airpower when called upon.”

    The U.S. has maintained a regular bomber presence in the Indo-Asia-Pacific since 2004 and this mission demonstrated our continued ironclad commitment to regional allies. Further, it increased our readiness and exercised our rights under international law to fly legally in the place and time of our choosing.

  • North Korea and the POTUS

    A couple of days, I did a post in which I mused about “One Possible Path“, which included this critical element that would precede a market tumble:

    0808-something

    Well, maybe we’ve already got our “something”

    Now look, I’m not so naive as to think that some sabre-rattling from the chubby monster in North Korea is necessarily meaningful. Threats from North Korea are about as game-changing as peace talks in the Middle East………..I’ve heard of them both for decades, and nothing ever, ever changes. Not even a little.

    And yet this time seems a little different, at least for the moment, and the US dollar is getting a bit freaked out:

    0808-usd

    In particular, North Korea isn’t just tossing around their unusual nonsense about the mongrel bastards of the United States, but is very specifically stating it is getting prepared for a possible attack on Guam, of all places.

    0808-guam

    An interesting little thought occurred to your favorite blogger, however. It’s quite cynical, but let me lay it out……….

    Trump probably realizes deep down how unpopular he is among a big chunk of the public. He’s also shrewd enough to know that the way to popularity is war. Look no farther than the first President Bush. Just after the Gulf War, his approval rating was way above 90%. Can you imagine that? Honestly – – think about it –  that means that almost every person who voted for Hillary in 2016 also APPROVED of George Bush back in 1990! (Assuming they were adults in both cases). That’s really saying something.

    Now, the whole North Korea thing is impossible to solve if you want to avoid death. There simply is no way to create a regime change without a lot of dead bodies.

    But……..what if those dead bodies aren’t ‘Mericuhn? How about, instead, if they were, oh, say……..from this lovely city:

    That is – Seoul, Korea.

    So we a situation something like this:

    (a) Trump launches a small, targeted military attack at North Korea’s regime, fully accepting that someone close by is going to get the shit blown out of them;

    (b) North Korea retaliates with a vicious, deadly assault on Seoul, resulting in tens of thousands of deaths;

    (c) The United States then opens up the gates of hell and blows North Korea into the dark ages, as revenge;

    (d) When all the dust has settled, the world is glad Kim is gone, but is mad at hell at the United States and demands the U.S. basically pay for the mess it just created (what’s another few trillion in debt, eh?)

    Thus, Trump does not one but TWO impossible things: (a) he eliminates the Kim regime, which no one else could do (b) he becomes, for a while at least, much, much more popular than he is now in the United States, while at the same time scaring the holy hell out of the entire world, since he obviously means what he says.

    Of course, the above scenario is pretty damned far-fetched, but………so was Trump winning the election in 2016.

  • "On The Beach" 2017 – The Beckoning Of Nuclear War

    Paul Craig Roberts writes that the admirable and honorable truth-teller John Pilger warns us that nuclear war is closer than we think.

    The 1957 book, On The Beach, introduced awareness that war in the nuclear age is terminable for life on earth. This realization explains President John F. Kennedy’s rejection of the US Joint Chiefs of Staff’s recommendation to launch a nuclear strike on the Soviet Union. Today as evidenced by the behavior of the US government, its European vassal states, and neoconservative pundits, this realization no longer informs US policy.

     

    Pilger speaks of the lobotomy performed on each generation that removes facts from history. Pilger himself is a victim when he chooses to stress that Ronald Reagan defended the Vietnam war instead of emphasizing that Reagan worked with Gorbachev to reduce the threat of nuclear war. The lobotomy that has been performed on the Western world has destroyed knowledge that the US and Russia were on peaceful terms prior to the Soviet collapse.

     

    These peaceful terms lasted a short time, only through the administration of President George H.W. Bush. With the advent of the Clinton regime, all peaceful agreements that were made have been consistently broken by Washington for 24 years throughout the two-term presidencies of three regimes, and now Congress is set on destroying what remains of the work of 20th century US administrations to remove the specter of nuclear armageddon. The defense authorization bill currently before Congress overturns the Intermediate Range Nuclear Forces Treaty signed by Ronald Reagan and Mikhail Gorbachev. This treaty eliminated an entire class of nuclear weapons and signaled the end of the Cold War.

    John Pilger tells us of the certain consequences of the renewed nuclear arms race:

     

    The US submarine captain says, "We've all got to die one day, some sooner and some later. The trouble always has been that you're never ready, because you don't know when it's coming. Well, now we do know and there's nothing to be done about it."

     

    He says he will be dead by September. It will take about a week to die, though no one can be sure. Animals live the longest.

     

    The war was over in a month. The United States, Russia and China were the protagonists. It is not clear if it was started by accident or mistake. There was no victor. The northern hemisphere is contaminated and lifeless now.

     

    A curtain of radioactivity is moving south towards Australia and New Zealand, southern Africa and South America. By September, the last cities, towns and villages will succumb. As in the north, most buildings will remain untouched, some illuminated by the last flickers of electric light.

     

    This is the way the world ends

     

    Not with a bang but a whimper

    These lines from T.S. Eliot's poem The Hollow Men appear at the beginning of Nevil Shute's novel On the Beach, which left me close to tears. The endorsements on the cover said the same.

    Published in 1957 at the height of the Cold War when too many writers were silent or cowed, it is a masterpiece. At first the language suggests a genteel relic; yet nothing I have read on nuclear war is as unyielding in its warning. No book is more urgent.

    Some readers will remember the black and white Hollywood film starring Gregory Peck as the US Navy commander who takes his submarine to Australia to await the silent, formless spectre descending on the last of the living world.

    I read On the Beach for the first time the other day, finishing it as the US Congress passed a law to wage economic war on Russia, the world's second most lethal nuclear power.  There was no justification for this insane vote, except the promise of plunder.

    The "sanctions" are aimed at Europe, too, mainly Germany, which depends on Russian natural gas and on European companies that do legitimate business with Russia. In what passed for debate on Capitol Hill, the more garrulous senators left no doubt that the embargo was designed to force Europe to import expensive American gas.

    Their main aim seems to be war – real war. No provocation as extreme can suggest anything else. They seem to crave it, even though Americans have little idea what war is. The Civil War of 1861-5 was the last on their mainland. War is what the United States does to others.

    The only nation to have used nuclear weapons against human beings, they have since destroyed scores of governments, many of them democracies, and laid to waste whole societies – the million deaths in Iraq were a fraction of the carnage in Indo-China, which President Reagan called "a noble cause" and President Obama revised as the tragedy of an "exceptional people"He was not referring to the Vietnamese.

    Filming last year at the Lincoln Memorial in Washington, I overheard a National Parks Service guide lecturing a school party of young teenagers. "Listen up," he said. "We lost 58,000 young soldiers in Vietnam, and they died defending your freedom."

    At a stroke, the truth was inverted. No freedom was defended. Freedom was destroyed. A peasant country was invaded and millions of its people were killed, maimed, dispossessed, poisoned; 60,000 of the invaders took their own lives. Listen up, indeed.

    A lobotomy is performed on each generation. Facts are removed. History is excised and replaced by what Time magazine calls "an eternal present".

    Harold Pinter described this as "manipulation of power worldwide, while masquerading as a force for universal good, a brilliant, even witty, highly successful act of hypnosis [which meant] that it never happened. Nothing ever happened. Even while it was happening it wasn't happening. It didn't matter. It was of no interest."

    Those who call themselves liberals or tendentiously "the left" are eager participants in this manipulation, and its brainwashing, which today revert to one name: Trump.

    Trump is mad, a fascist, a dupe of Russia. He is also a gift for "liberal brains pickled in the formaldehyde of identity politics", wrote Luciana Bohne memorably. The obsession with Trump the man – not Trump as a symptom and caricature of an enduring system – beckons great danger for all of us.

    While they pursue their fossilised anti-Russia agendas, narcissistic media such as the Washington Post, the BBC and the Guardian suppress the essence of the most important political story of our time as they warmonger on a scale I cannot remember in my lifetime.

    On 3 August, in contrast to the acreage the Guardian has given to drivel that the Russians conspired with Trump (reminiscent of the far-right smearing of John Kennedy as a "Soviet agent"), the paper buried, on page 16, news that the President of the United States was forced to sign a Congressional bill declaring economic war on Russia. Unlike every other Trump signing, this was conducted in virtual secrecy and attached with a caveat from Trump himself that it was "clearly unconstitutional".

    A coup against the man in the White House is under way. This is not because he is an odious human being, but because he has consistently made clear he does not want war with Russia.

    This glimpse of sanity, or simple pragmatism, is anathema to the "national security" managers who guard a system based on war, surveillance, armaments, threats and extreme capitalism. Martin Luther King called them "the greatest purveyors of violence in the world today".

    They have encircled Russia and China with missiles and a nuclear arsenal. They have used neo-Nazis to instal an unstable, aggressive regime on Russia's "borderland" – the way through which Hitler invaded, causing the deaths of 27 million people.  Their goal is to dismember the modern Russian Federation.

    In response, "partnership" is a word used incessantly by Vladimir Putin – anything, it seems, that might halt an evangelical drive to war in the United States. Incredulity in Russia may have now turned to fear and perhaps a certain resolution. The Russians almost certainly have war-gamed nuclear counter strikes. Air-raid drills are not uncommon. Their history tells them to get ready.

    The threat is simultaneous. Russia is first, China is next. The US has just completed a huge military exercise with Australia known as Talisman Sabre. They rehearsed a blockade of the Malacca Straits and the South China Sea, through which pass China's economic lifelines.

    The admiral commanding the US Pacific fleet said that, "if required", he would nuke China. That he would say such a thing publicly in the current perfidious atmosphere begins to make fact of Nevil Shute's fiction.

    None of this is considered news. No connection is made as the bloodfest of Passchendaele a century ago is remembered. Honest reporting is no longer welcome in much of the media. Windbags, known as pundits, dominate: editors are infotainment or party line managers. Where there was once sub-editing, there is the liberation of axe-grinding clichés. Those journalists who do not comply are defenestrated.

    The urgency has plenty of precedents. In my film, The Coming War on China, John Bordne, a member of a US Air Force missile combat crew based in Okinawa, Japan, describes how in 1962 – during the Cuban missile crisis – he and his colleagues were "told to launch all the missiles" from their silos.

    Nuclear armed, the missiles were aimed at both China and Russia. A junior officer questioned this, and the order was eventually rescinded – but only after they were issued with service revolvers and ordered to shoot at others in a missile crew if they did not "stand down".

    At the height of the Cold War, the anti-communist hysteria in the United States was such that US officials who were on official business in China were accused of treason and sacked. In 1957 – the year Shute wrote On the Beach – no official in the State Department could speak the language of the world's most populous nation. Mandarin speakers were purged under strictures now echoed in the Congressional bill that has just passed, aimed at Russia.

    The bill was bipartisan. There is no fundamental difference between Democrats and Republicans. The terms "left" and "right" are meaningless. Most of America's modern wars were started not by conservatives, but by liberal Democrats.

    When Obama left office, he presided over a record seven wars, including America's longest war and an unprecedented campaign of extrajudicial killings – murder – by drones.

    In his last year, according to a Council on Foreign Relations study, Obama, the "reluctant liberal warrior", dropped 26,171 bombs – three bombs every hour, 24 hours a day.  Having pledged to help "rid the world" of nuclear weapons, the Nobel Peace Laureate built more nuclear warheads than any president since the Cold War.

    Trump is a wimp by comparison. It was Obama – with his secretary of state Hillary Clinton at his side – who destroyed Libya as a modern state and launched the human stampede to Europe. At home, immigration groups knew him as the "deporter-in-chief".

    One of Obama's last acts as president was to sign a bill that handed a record $618billion to the Pentagon, reflecting the soaring ascendancy of fascist militarism in the governance of the United States. Trump has endorsed this.

    Buried in the detail was the establishment of a "Center for Information Analysis and Response". This is a ministry of truth. It is tasked with providing an "official narrative of facts" that will prepare us for the real possibility of nuclear war – if we allow it.

  • High-End Manhattan Real Estate Gets A Reality Check As 40-50% Of Listings See Price Cuts

    After a temporary dip in 2016, prices for expensive Manhattan and Brooklyn real estate seems to be on the rise yet again.  But no matter how quickly the bubble re-inflates, it can’t seem to keep up with the perpetually positive outlook of New York’s home sellers. 

    As Bloomberg points out today, despite a rise in prices YoY, 25% of homes sold in 2Q still experienced a price cut at closing versus their original listing prices.  Moreover, as much as 40-60% of the homes sold in the more trendy neighborhoods are seeing price cuts.

    In most Manhattan neighborhoods, at least 25 percent of homes on the market in the second quarter had their prices cut. The share was smaller only at the borough’s northernmost tip, in Inwood and Marble Hill. In prime areas such as the West Village and Chelsea, about half of listings had their prices trimmed.

     

    Even in high-demand Brooklyn, owners realized they’d gotten too ambitious. Forty-one percent of Williamsburg listings saw a reduction in asking price, while in Bushwick, the share was 48 percent. The waterfront area that includes Red Hook had the biggest share of cuts, at 59 percent.

     

    The whittling shows “that even in these areas that are really hot, it’s possible for sellers to be out of sync with the market, and that there is a limit to how high prices can go,” said Grant Long, senior economist with StreetEasy, which provided the data.

     

    But, it’s not all bad news for Manhattan real estate owners these days as Douglas Elliman notes that 2Q prices and volume were both up fairly substantially, on a sequential and YoY basis.

    NYC

     

    That said, the new development market, which has been flooded by supply additions courtesy of Yellen’s accommodative interest rates, remains a key weak spot for the Manhattan market with prices per foot down 15% sequentially and listing discounts soaring to 7.5% versus units that were flying off the shelf at a 1% premium to listing price last year.

    As we like to say, eventually things like math and supply/demand models actually matter…

  • PANIC: CNN REPORTS FROM BUNKER, AS AMERICA PREPARES FOR NUCLEAR WAR WITH N. KOREA

    Content originally published at iBankCoin.com

     

     

    Ladies and gentlemen, this is Le Fly reporting to you live from his nuclear bomb shelter. I’ve been planning for this day all of my life. Ever since I was a baby, I knew the world would be destroyed by thermal nuclear detonations. It will be an ironic end to this perfidious way of living, with bombs raining down upon us by way of technology given to North Korea from our own government.

    But enough of that. We do not have time to blame one another for misdeeds. After all, this is the end. The world is ending and you’re going to hell.

    At the front of this war is the tiny island of Guam. They’ll be smoked inside 10 minutes flat. North Korea’s MIRV guided missiles will turn that paradise into a literal hell, ssomething you might see while watching your favorite teevee show after a dragon attack.

    Here’s the Congresswoman of Guam, Rep. Bordallo, chimping the fuck out on CNN. She thinks our THAAD interceptors can save her. Silly moron.

    CNN is reporting LIVE from a nuclear bomb bunker in Hawaii, enlightening people to some very key pieces of information. For example, in the event of nuclear war, THERE WILL BE SURVIVORS.

    ‘A lot of people on this island think if they’re hit with a nuclear warhead that everyone is going to die. And the emergency folks here say THAT IS ABSOLUTELY NOT TRUE. NOT TRUE. There will be lots of survivors.’

    Watch.

     

    //platform.twitter.com/widgets.js

    Full clip.

    This all comes in response to the President’s very real threat, saying he’d rain ‘fire, fury, and quite frankly power’ down upon the heads of N. Korea — if they so bothered to look at us sideways.

    N. Korea responded, in kind, suggesting they’d turn Guam into an ashtray.

    It was nice knowing all of you. I expect N. Korea’s missile guidance systems will veer off a bit, generously depositing nuclear missiles all across the US, including the Northeast corridor where I am presently domiciled. It was an honor and privilege to shit-post for you all of these years.

    As for the stock market, I expect it will trade up 0.3% tomorrow on this world ending news.

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Today’s News 8th August 2017

  • Visualizing How Americans Get Healthcare Coverage

    With Obamacare firmly in the crosshairs of Republican lawmakers, the debate around U.S. healthcare is at a fever pitch.

    While there is no shortage of opinions on the best route forward, Visual Capitalist’s Jeff Desjardins points out that the timeliness of the debate also gives us an interesting chance to dive into some of the numbers around healthcare – namely how people even get coverage in the first place.

    HOW AMERICANS GET HEALTHCARE

    The following infographic shows a breakdown of how Americans get healthcare coverage, based on information from Census Bureau’s surveys.

    Put together by Axios, it shows the proportion of Americans getting coverage from employers, Medicaid, Medicare, non-group policies, and other public sources. The graphic also includes the 9% of the population that is uninsured, as well.

    The following definitions for each category above come from the Kaiser Family Foundation, a non-profit that uses the Census Bureau’s data to put together comprehensive estimates on healthcare in the country:

    Employer-Based: Includes those covered by employer-sponsored coverage either through their own job or as a dependent in the same household.

     

    Medicaid: Includes those covered by Medicaid, the Children’s Health Insurance Program (CHIP), and those who have both Medicaid and another type of coverage, such as dual eligibles who are also covered by Medicare.

     

    Medicare: Includes those covered by Medicare, Medicare Advantage, and those who have Medicare and another type of non-Medicaid coverage where Medicare is the primary payer. Excludes those with Medicare Part A coverage only and those covered by Medicare and Medicaid (dual eligibles).

     

    Other Public: Includes those covered under the military or Veterans Administration.

     

    Non-Group: Includes individuals and families that purchased or are covered as a dependent by non-group insurance.

     

    Uninsured: Includes those without health insurance and those who have coverage under the Indian Health Service only.

    HEALTHCARE MIX BY STATE

    Here’s another look at how Americans get healthcare coverage on a state-by-state basis.

    This time the graphic comes from Overflow Data and it simply shows the percent of buyers in each state that receive health coverage from public sources:

     

    What % of the population has public insurance in each state?

    var divElement = document.getElementById(‘viz1502053121022’); var vizElement = divElement.getElementsByTagName(‘object’)[0]; if ( divElement.offsetWidth > 800 ) { vizElement.style.width=’629px’;vizElement.style.height=’769px’;} else if ( divElement.offsetWidth > 500 ) { vizElement.style.width=’629px’;vizElement.style.height=’769px’;} else { vizElement.style.width=’100%’;vizElement.style.height=’629px’;} var scriptElement = document.createElement(‘script’); scriptElement.src = ‘https://public.tableau.com/javascripts/api/viz_v1.js’; vizElement.parentNode.insertBefore(scriptElement, vizElement);

     

    Oddly, the state that gets the highest proportion of public health coverage (New Mexico, 46.6%) is kitty-corner to the state with the lowest proportion of public health coverage (Utah, 21.3%).

    WHY THE DEBATE IS PARAMOUNT

    If you ask some people what is going on with U.S. healthcare, they will tell you that things are going “sideways” – that costs are going up, but care is not improving anywhere near the same pace.

    Here’s a graphic we published last year from Max Roser that puts this sentiment in perspective:

    It’s fair to say that care has been going sideways in the U.S. for some time, and the stakes couldn’t be higher.

    So, what needs to be done to fix the problem?

  • Vladimir The Great Sums Up Pope Francis The Fake!

    Authord by Antonius Aquinas,

    Vladimir Putin has once again demonstrated why he is the most perceptive, farsighted, and for a politician, the most honest world leader to come around in quite a while.  If it had not been for his patient and wise statesmanship, the world may have already been embroiled in an all encompassing global configuration with the possibility of thermonuclear destruction.

    His latest comments on the purported head of the Catholic Church may have been his most perceptive as of yet and should be heeded not only by Western secular leaders, but by the globe’s one billion or so Catholics, most of whom regard Jorge Bergoglio as pope.

    The Russian President’s statement came on a visit to the Naval Cathedral of St. Nicholas in Kronstadt.  Mr. Putin succinctly sums up what Pope Francis is not: “If you look around at what he (the Pope) says it’s clear that he is not a man of God.  At least not the Christian God, not the God of the Bible.”

    No truer words have as yet been said about this cretin by a world leader since his wretched pontifical reign began in 2013!

    While Mr. Putin and those with “eyes to see and ears to hear” recognize that “Pope Francis” is not a Christian, the current occupant of St. Peter’s Chair is disqualified for that position on theological grounds.  To be a legitimate pope, one must be “bishop of Rome,” and prior to becoming a bishop, one must be a priest.  Jorge Bergoglio was not ordained (1969) in the traditional Apostolic ordination rite of the Church, nor was he consecrated (1992) as a true bishop in that rite.  His predecessor, Benedict XVI, was, likewise, not consecrated in the traditional rite although he was ordained as a priest under the “old rite.”

    Simply put: Jorge Bergoglio is just a layman masquerading as a pope as are all of the other priests and bishops which were given Holy Orders under the new rites which came into effect in the aftermath of the Second Vatican Anti-Council (1962-65).

    Not only is Pope Francis a Christian fraud as Vladimir Putin and other perceptive commentators have observed, but in secular matters he is a neo-Marxist in economic thought, a One-World Government advocate, and an enthusiast of open borders and mass migration.  In other words, an enemy of what is left of Western Civilization.

    Mr. Putin accurately describes his “secular sins:”

    • Pope Francis is using his platform to push a dangerous far-left political ideology on vulnerable people around the world, people who trust him because of his position
    • He dreams of a world government and a global communist system of repression
    • As we have seen before in communist states, this system is not compatible with Christianity**

    If these despicable qualities are not bad enough, there is a seedier side of Bergoglio that Mr. Putin did not address.  Pope Francis is now the third Paedophile Pope who has presided over the Church’s Great Sex and Embezzlement Scandal.  Neither Francis, or his two derelict predecessors (Benedict XVI, JPII) have done anything to either punish or root out the child predators under their charge.  On the contrary, Francis has encouraged perversion with his now infamous statement of “who am I to judge.”

    The debauchery continues to take place with the latest coming right under the nose of the Argentine heretic.  An apartment occupied by the secretary of the Pontifical Council for the Interpretation of Legislative Texts, Franecesco Coccopalmerio, was raided in July to break up a “gay” orgy.  The police found drugs and men engaged in orgiastic sex.

    Coccopalmerio, who Bergoglio had considered for promotion to bishop, was hauled away and jailed by authorities.

    This came on the heels of Cardinal George Pell, the Vatican’s Chief Financial Officer, being charged with sex crimes against ten children.  Pell has since left Rome in disgrace for his native Australia to answer the charges.

    While Western Civilization is on the decline due to economic stupidity and open borders promoted by the likes of Pope Francis, there are a few bright spots, the brightest of which is Vladimir Putin.  If the West is ever going to regain its sanity, it should take the sage counsel of the Russian president especially when he speaks of phonies like Pope Francis.

  • Chaffetz Blasts DOJ: No More Press Conferences On Leakers "Until You Have Some People In Handcuffs"

    Since election day, the Trump administration has been hit with an unprecedented number of intelligence leaks as classified information seems to be flowing quite freely from Obama holdovers occupying various government agencies and members of the intelligence community directly to various mainstream media outlets.  At this point, one has to wonder why the Washington Post and the New York Times shouldn’t just have an office setup inside the NSA with server access and the highest security clearance…taxpayers might actually some money if we didn’t have to pay for our spies to sneak around Washington passing info to journalists.

    But, some hope was offered last week by AG Jeff Sessions and Director of National Intelligence Dan Coats who, after months of doing basically nothing, finally announced a plan to crackdown on leakers.  Meanwhile, Deputy AG Rod Rosenstein took to the Sunday talk show circuit this past weekend for some more ‘tough talk’ saying the DOJ will prosecute any “case that warrants prosecution no matter what their position is.”

    “We’re after the leakers. We’re not after
    journalists we’re after people who are committing crimes.  We’re going to devote the resources we need to identify who is responsible for those leaks and who has violated the law and hold them accountable.” 

     

    “If we identify anybody, no matter what their position is, if they violated the law and that case warrants prosecution, we’ll prosecute it.”

     

    But former House Oversight Committee Chair, and now Fox News political analyst, Jason Chaffetz is calling the bluff of the suddenly eager Deputy Attorney General saying that he “comes with absolutely zero credibility on this” issue after repeatedly refusing to investigate, much less prosecute, Hillary Clinton for lying under oath and/or her litany of other federal crimes. 

    “[Rod Rosenstein] comes with absolutely zero credibility on this.”

     

    “Remember last year when we had Director Comey come before the Oversight Committee, I was the Chair, I asked him if he looked at Hillary Clinton, whether or not she told the truth under oath.  He said he needed a request from Congress so myself and Bob Goodlatte, Chairman of the Judiciary Committee, sent that request to the Department of Justice and it’s never been answered.”

     

    “So, if they want to start, lets start with Hillary Clinton and whether or not she lied under oath.  And lets also go back to the State Department who had an open investigation.  They reopened it July 7th of 2016.  They’ve never closed it.  Nearly 300 people who are dealing in classified information in a nonsecure setting, why didn’t they ever close that investigation? They need to answer those questions. Start with that. They come with zero credibility on this issue.”

     

    “There becomes a point where you actually have to answer these things.  Don’t do another press conference until you have some people in handcuffs.  This is classified information.  It’s against the law to just leak it out and give it to whoever you want.”

     

    So what say you on Rosenstein?  Dedicated public servant intent upon tracking down and prosecuting leakers or just another political hack who will say whatever is most politically expedient at any given time to maintain his power base?  Time will tell.

  • Utah Mayor Suffers "Shocking Experience" After Going Undercover As Homeless Man

    Amid President Obama's 'recovery', President Trump's 'awesome economy', and record high stock prices, Salt Lake City mayor Ben McAdams secretly entered the world of the homeless in Utah as he pondered a decision (that he knew would anger many residents) on the selection of a site for a third homeless resource center in his city.

    As Deseret News' Katie McKellar reports, for four months, McAdams has kept a secret (keeping it out of headlines, hoping to avoid the perception, he said, of a "publicity stunt in the face of human suffering").

    Back in March, just days before he was due by state law to select a third site for a new homeless resource center – a decision he knew would anger thousands of his constituents, regardless of his choice – McAdams left work on a Friday with no money or ID and walked to Salt Lake City's most troubled neighborhood.

    Dressed in jeans, sneakers and a hoodie, the county mayor spent three days and two nights walking and sleeping among the homeless and drug-addicted in Salt Lake City's Rio Grande neighborhood.

    One night on the street. One night in the shelter.

    His experience was "shocking" on multiple levels, he said. And while he by no means meant his experience to be an "expose" on the Road Home shelter, an important stakeholder in homeless services reform, his stay did shed light on some troubling realities within the 1,062-bed shelter, including:

    • Blatant use of drugs inside the men's dorms, including his bunkmate injecting drugs into his arm – though he declined to discuss details about that encounter with the Deseret News.
    • He smelled what he assumed was smoke from drugs "all night long."
    • He witnessed violence – a fight between two men in the dorms, during which a man was dragged off of his bunk and hit his head on the concrete floor.
    • He didn't feel safe – and could see why someone would take their chances on the streets in 40-degree rainy weather rather than spend a night in the downtown shelter.

    The county mayor has kept his experience private for months. But after the Deseret News learned of the overnight stays from a source and requested an interview, McAdams eventually — reluctantly — agreed to discuss it this week with the Deseret News and Salt Lake Tribune.

    The purpose of the stay, McAdams said, was not to go undercover and expose the troubles homeless providers face while trying to serve Utah's most vulnerable. Rather, it was meant to help him "deepen" his understanding of the current homeless system before he decided which city would house a third homeless resource center.

    "I needed to see firsthand, to understand the complexity of the recommendation I was being asked to make," he said.

     

    The experience "instilled in me a conviction that we had to move forward," McAdams said, during a time when many of his constituents were pushing back against years of effort to reform the homeless system.

     

    "There were many people saying, 'Back away and do nothing,'" McAdams said. "Seeing what I saw … was shocking, and I came away from this experience knowing we had to go forward, we had to change the system, that we as a community had kicked the can down the road for decades and just looked the other way."

    Not disclosing who he was, McAdams said he and his employee spent the first night on a street outside the Rio Grande area to "understand why some people would choose not to go into shelter."

    "It was cold — below 40s," the mayor said. When he woke up, it was raining. "You wonder why people would choose to do that, knowing that there were beds available in the shelter."

    But the next night, McAdams understood why.

    The Deseret News learned from two other people that after McAdams had checked into the men's dorms, he saw his bunkmate injecting drugs into his arm. When asked about that incident, McAdams declined to discuss it.

    "One person told me to be sure not to use the restroom at night because it wasn't safe," McAdams added. The man didn't elaborate, but McAdams said he assumed it was a reference to sexual violence.

     

    "I didn't feel safe," he said. "It was a fairly chaotic environment."

     

    He added: "I certainly could understand why people would choose not to sleep there."

     

    He said if he were addicted to drugs, he would know "the Rio Grande area is not the place to go" to kick the habit, adding that "drug dealing is at every corner."

    Revamping the system, he said, "can't happen fast enough."

    Of course, Salt Lake City, Utah is not alone…

    Homelessness in San Diego has surged in recent years. A January tally put the number of transients in the city at over 5,600, up more than 10 percent from last year. The total number has risen more than 40 percent since 2014.

    The chairman’s idea is for the city to construct temporary housing on the practice field of Qualcomm Stadium, where the San Diego Chargers played until 2016, and the San Diego State Aztecs play.

    The number of homeless people in Los Angeles is skyrocketing. In just one year, the figures revealed that the homeless population in the city grew 20% while the numbers for the wider Los Angeles County were even higher at 23%.

    As if looking at those numbers isn’t cringeworthy enough, The Los Angeles Homeless Services Authority reported Wednesday that 6,000 homeless young people were tallied across the county in January, a 61% increase over the 2016 total. Most of the young people are ages 18 to 24. All the youth shelters have waiting lists and affordable housing is tough to find, even with a rent voucher, according to Heidi Calmus of Covenant House California, an international youth homeless services agency with a branch in Hollywood. “The system is overwhelmed,” Calmus said Tuesday night as she and a colleague, Nick Semensky, delivered toiletry bags and sandwiches to young people living in the streets.

    Despite efforts to combat the problem, the number of homeless continue to go up.

    And just like during the last economic crisis, homeless encampments are popping up all over the nation as poverty grows at a very alarming rate.

    According to the Department of Housing and Urban Development, more than half a million people are homeless in America right now, but that figure is increasing by the day.  And it isn’t just adults that we are talking about.  It has been reported that that the number of homeless children in this country has risen by 60 percent since the last recession, and Poverty USA says that a total of 1.6 million children slept either in a homeless shelter or in some other form of emergency housing at some point last year.  Yes, the stock market may have been experiencing a temporary boom for the last couple of years, but for those on the low end of the economic scale things have just continued to deteriorate.

    Tonight, countless numbers of homeless people will try to make it through another chilly night in large tent cities that have been established in the heart of major cities such as Seattle, Washington, D.C. and St. Louis.  Homelessness has gotten so bad in California that the L.A. City Council has formally asked Governor Jerry Brown to officially declare a state of emergency.   And in Portland the city has extended their “homeless emergency” for yet another year, and city officials are really struggling with how to deal with the booming tent cities that have sprung up

    There have always been homeless people in Portland, but last summer Michelle Cardinal noticed a change outside her office doors.

     

    Almost overnight, it seemed, tents popped up in the park that runs like a green carpet past the offices of her national advertising business. She saw assaults, drug deals and prostitution. Every morning, she said, she cleaned human feces off the doorstep and picked up used needles.

     

     

    “It started in June and by July it was full-blown. The park was mobbed,” she said. “We’ve got a problem here and the question is how we’re going to deal with it.”

    But of course it isn’t just Portland that is experiencing this.  The following list of major tent cities that have become so well-known and established that they have been given names comes from Wikipedia

    Most of the time, those that establish tent cities do not want to be discovered because local authorities have a nasty habit of shutting them down and forcing homeless people out of the area.

    * * *

    How is all this possible? With 'full employment' and record high stocks?

  • China Threatens "Small Scale Military Operation" To Remove India From Bhutan Border

    In the latest escalation between two nuclear powers, China has turned the war threat amplifier up to '11' by threatening India (in an article published a Chinese state-controlled newspaper) that it could conduct a "small-scale military operation" to expel Indian troops from a contested region in the Himalayas.

    The latest standoff started in June, after Chinese troops started building a road on a remote plateau, which is disputed by China and Bhutan.  Indian troops countered by moving to the flashpoint zone to halt the work, with China accusing them of violating its territorial sovereignty and calling for their immediate withdrawal.

    China then added a large number of troops to the region:

    "The crossing of the mutually recognised national borders on the part of India… is a serious violation of China's territory and runs against the international law," Chinese defence ministry spokesman Wu Qian told a press conference quoted by AFP, adding that "the determination and the willingness and the resolve of China to defend its sovereignty is indomitable, and it will safeguard its sovereignty and security interests at whatever cost."

     

    He also said that "border troops have taken emergency response measures in the area and will further step up deployment and trainings in response to the situation," without giving any details about the deployment.

    Then it escalated with a Chinese Ministry of Defense official now warning explicitly that Indian troops must leave the contested area if they do not want war.

    And now, it has become more specific, with The Independent reporting that Chinese and Indian media have taken a strident approach, with an article in the Chinese state-owned Global Times quoting a research fellow at the Institute of International Relations of the Shanghai Academy of Social Sciences saying China is preparing to initiate a "limited war" to push Indian soldiers out of the area.

    Hu Zhiyong told the paper: "The series of remarks from the Chinese side within a 24-hour period sends a signal to India that there is no way China will tolerate the Indian troops' incursion into Chinese territory for too long.

     

    "If India refuses to withdraw, China may conduct a small-scale military operation within two weeks."

     

    He went on to say the military operation would aim to seize Indian personnel lingering in Chinese territory or expel them.

     

    "India, which has stirred up the incident, should bear all the consequences," he added. "And no matter how the standoff ends, Sino-Indian ties have been severely damaged and strategic distrust will linger."

    An Indian magazine's front cover last month showed a map of China shorn of Tibet and self-ruled Taiwan also ignited public anger on Chinese social media with thousands of angry posts.

    "China has made it clear that there is no room for negotiation and the only solution is the unconditional and immediate withdrawal of Indian troops from the region," said a commentary by the official Xinhua News Agency.

     

    "If China backs down now, India may be emboldened to make more trouble in the future," it added.

    As we noted previously, this isn’t the first time that these two nations have been at each other’s throats over their borders. In 1962 their armies clashed, leading to defeat of the Indian army, and thousands of casualties on both sides. Based on the rhetoric coming out of Beijing’s state sponsored media, it appears that China is willing to replicate that conflict.

     

  • Is Trump Winning?

    Authored by Robert Gore via Straight Line Logic blog,

    Mainstream analysis has been wrong for so long, why start believing it now?

    SLL has run a series of articles (“Plot Holes,” “Trump and Vault 7,” “Calling a Bluff?” “Let’s Connect the Dots,” “Powerball, Part One,” “Powerball, Part Two”) advancing interrelated hypotheses. We’ve asserted that President Trump is far smarter and the powers that be far stupider and weaker than current consensus estimates. Trump’s primary motivation is power. The nonstop vilification campaign against him has little to do with policy differences and instead reflects establishment fears that Trump will investigate, expose, and punish its criminality.

    The upshot of these hypotheses: Trump is winning and has consolidated his power.

    Reader reaction to this non-mainstream and admittedly speculative line of thinking has been mixed and often skeptical.

    However, we’ll press on, because our hypotheses have yielded testable predictions, most of which have been borne out. From “Powerball, Part Two”:

    To answer a question posed in Part One: if Trump has consolidated power both at home and abroad, don’t hold your breath waiting for a swamp draining. The most effective power is often power of which only a few know. Those he has by the short hairs would be most helpful to him—sub rosa—if they’re still in government. If such is the case, don’t be surprised if the Russia probe fades away, Trump’s nominal opposition consigns itself to rote denunciation, the Deep State sits still for his Middle Eastern policy changes, and he gets more of his agenda through than anyone expects.

    Even the Washington Post has admitted the Russia probe is “crumbling.”  Trump and Sessions know Special Prosecutor Robert Mueller won’t find much because there’s nothing there, although there may be a sacrificial offering or two to propitiate the investigatory gods. Trump read Sessions the riot act via Twitter and a Wall Street Journal interview about not investigating Hillary Clinton, intelligence community leaks to the press, and Ukrainian efforts to sabotage his presidential campaign. He’s been roundly condemned for publicly criticizing Sessions, but here’s a speculative leap: perhaps publicly criticizing Sessions was not really what Trump was doing.

    Perhaps Trump was giving his attorney general political cover to pursue investigations against high-profile Democrats who cannot help Trump, sub rosa or otherwise. Investigations of Hillary Clinton, former Attorney General Loretta Lynch, Susan Rice, Samantha Power, Fusion GPS, and Debbie Wasserman Schultz would demoralize the Democrats, preoccupy and harass key players, expose criminality, and electrify Trump’s base. Providing Sessions further cover, twenty Republican representatives have sent a letter to the Attorney General and Deputy Attorney General Rod Rosenstein demanding the appointment of a second Special Counsel to look into potentially illegal acts by Clinton, Lynch, and former FBI director James Comey.

    After recusing himself from the Russiagate investigation, which he knows is pointless, and being “scolded” by Trump, Sessions is now a sympathetic, squeaky-clean figure; even Democrats have expressed support. He has far more latitude to pursue the investigations his boss wants him to pursue. Most of the ensuing criticism will be directed at Trump, which will bother Trump not at all (although there will undoubtedly be answering Twitter blasts).

    Trump has quietly (when Trump does anything quietly, take note) made two sea changes in US policy in Syria. At the G20 summit, he negotiated a cease fire with Vladimir Putin for southwest Syria. Last week he ended a CIA program that armed Syrian jihadists fighting Bashar al-Assad’s regime. Both changes are anathema to the US Deep State, the mainstream media, and US allies Saudi Arabia, the Gulf States, Israel, and Turkey, yet other than “rote denunciation,” they have been surprisingly docile. The latter change could presage abandonment of a pillar of US foreign and military policy since President Carter supplied arms and other aid to the mujahideen in Afghanistan during their successful fight against the Soviet Union. The US may be out of the business of arming Islamic insurgents against regimes it seeks to change.

    Deft – by this analysis – as Trump has been, his biggest challenge lies ahead.

    The government is bankrupt, and demographics will push it ever-deeper in the hole.

     

    The global economy is struggling under monstrous and unsupportable debt.

     

    Fiat money something-for-nothing has a sell-by date, sooner or later the stock market and economy will head south.

     

    Historically, there’s been a tight correlation between stocks, the economy, and presidential popularity.

    Can Trump dodge this bullet? Here’s another speculative leap: he is already laying the groundwork. He’s claiming credit for the stock market’s rally since he was elected. That may not be as foolish as it seems. When the market and economy falter, he will claim they went up on hopes for his program, and will blame Congress and the Federal Reserve for dashing those hopes.

    Most people blame the Republican-controlled Congress, not Trump, for the failure to repeal and replace Obamacare. Trump proposes, but Congress disposes and Trump has made sure everyone knows that Congress is responsible. In the same vein, he signed the veto-proof Russian sanctions bill while at the same time excoriating Congress for passing it. He has an easier job making his case than a President whose party controls Congress normally would. Trump is a Republican in name only and ran just as hard against the Republican establishment as he did against Hillary Clinton.

    Look for him to lambast Congress when it botches tax reform and the debt ceiling. He could be hoping for such miscues. Debt ceiling contretemps may set off financial market conniptions. Trump will sigh and tweet: If only Congress had passed my health care and tax reforms and given me a clean debt ceiling increase, none of this would have happened. If the Federal Reserve continues to raise its federal funds target rate and shrinks its balance sheet, he’ll include Janet Yellen in his tweets.

    These hypotheses yield testable predictions. Mueller’s investigation will come a cropper, but investigations of high-profile and no sub rosa value leakers and Democrats – up to and perhaps including Hillary Clinton – will lead to indictments and either plea bargained settlements or convictions. Trump will take credit for the stock market until it reverses. He will continue to harshly criticize Congressional failures and blame them when financial markets and the economy head south. This may come to a head if Congress fails to pass a clean debt ceiling increase by the end of September. Trump will also point his finger at the Federal Reserve. This is a high risk strategy, given the longstanding psychological linkage between presidential popularity, the strength of the economy, and stock market indices. It’s probably the only strategy available to Trump. Time will tell if it works.

    The war in Syria has crested; ISIS, though still capable of substantial mischief, has lost. The refugee flow has already reversed, an estimated half a million refugees have returned, which, as noted in “Powerball, Part Two,” gives European leaders some breathing room. Assad will stay in power unless Russia, not the US, sees fit to remove him. The embers of conflict will smolder for years, but Trump will not be fanning them by arming anti-Assad groups or escalating US military involvement. He will continue to use shows of force and diplomatic maneuvers to try to resolve other hot spots—North Korea, Iran, the South China Sea, Ukraine, Afghanistan—and will shy away from exclusively military solutions. He is deeply displeased with the war in Afghanistan and is calling for a rethink that may ultimately lead to withdrawal.

    All this is speculative, but it continues a line of analysis whose predictions have been for the most part confirmed. However, borrowing from the ubiquitous financial disclaimer: past performance is no guarantee of future accuracy.

  • Zero-Emission Vehicle Credits: The One 'Product' That Tesla Actually Earns A Profit On

    As we pointed out last week when Tesla reported its Q2 earnings, making products that actually generate a return on capital for shareholders isn’t a strong suit of the Silicon Valley powerhouse.  In fact, Elon Musk managed to burn through a record $1.2 billion of cash in Q2 alone, or roughly $13 million dollars every single day.

     

    But, as Bloomberg points out today, there is at least one product where Tesla manages to earn a staggering margin of roughly 95%.  It’s called a Zero-Emission Vehicle (ZEV) credit and it’s pretty much the only reason that Tesla managed to ‘beat’ earnings in Q2.

    I’m referring to zero-emission vehicle, or ZEV, credits. California and several other states require that a certain proportion of the vehicles sold by an automaker emit no greenhouse gases. These cars earn the automaker credits, and if they don’t have enough to meet their quota, they can buy extra ones from someone who does. As Tesla only makes vehicles that run on batteries and emit nothing, it usually has a surplus for sale.

     

    The profit margin on these is very high, perhaps 95 percent. The implied $95 million of profit equates to about 58 cents a share. Tesla reported a loss of $1.33 per share this week — beating the consensus forecast by 55 cents.

     

    This isn’t the only time ZEV credits have played a big role for Tesla. Looking back to early 2013, selling credits has given Tesla’s earnings extra oomph in many quarters, likely taking them above consensus forecasts in some (on an implied basis, assuming that 95 percent margin):

     

    After selling $0 worth of ZEV credits in 1Q 2017, Tesla managed to sell $100 million worth in 2Q with roughly $95 million, or $0.58 per share, flowing straight to the bottom line.

    Of course, this isn’t the first time that ZEV credits played a huge role in padding Tesla’s earnings.  Who can forget Q3 2016 when a $139 million in sales pushed Tesla’s earnings into positive territory for the first time in years?

    One notable period there is the the third quarter of 2016. This was the one where CEO Elon Musk exhorted his employees to “throw a pie in the face” of Tesla’s critics by delivering thumping results. It worked, although at the cash-flow level it also owed quite a bit to suppliers.

     

    But ZEVs provided a big tailwind: At $139 million, Tesla booked more revenue from selling the credits that quarter than any other. Using my margin assumption, they added 84 cents per share to earnings, turning a loss of 13 cents into a profit of 71 cents.

     

    In short, as taxpayers we’re all doing our part to help the environment by enriching one eccentric billionaire in Silicon Valley…which presumably makes sense to some politicians in Sacramento.

  • China Unveils New Weapons – From Stealth Fighters To ICBMs

    Authored by Jeffrey Lin and P.W.Singer via PopSci.com,

    As part of the People's Liberation Army's 90th anniversary celebration – it was founded on August 1, 1927 –  President Xi Jinping (in military fatigues) hosted a giant parade at the Zhurihe Training Center.

    Zhurihe – Zhurihe certainly has enough room to hold all the people and equipment for a parade with thousands of soldiers, hundreds of tanks and armored vehicles, and dozens of ICBMs. -Xinhua News Agency

    Here, PLA's most elite forces demonstrated how far China has come in modern warfare. CCTV broadcast the session, which means a domestic and global audience of millions saw the army's showcase of tanks, stealth fighters, artillery, and ICBMs.

    A group of ZTZ-99A heavy main battle tanks marched among the first parade units, followed by a variety of tracked ZDB-04A and wheeled ZBL-09 infantry fighting vehicles. The military procession then followed with PLZ-07 and heavy PLZ-04 self-propelled howitzers, PHL-03 heavy rocket launchers, and ZBD-003 airborne IFVs.

    Tanks and Tanks Again – The ZTZ-99A is China's heaviest and most armored tank, with a weight of 60-plus tons. In the background, you can see the transporter erector launcher (TEL) vehicles for the CJ-10 cruise missiles. -Xinhua News Agency

    Combat support vehicles were not forgotten. Combat engineering vehicles, BZK-006 UAV launch vehicles, communications vehicles, and even fuel tankers followed.

    There was plenty of air power, too. A trio of J-20 stealth fighters flew over the parade, followed by Y-20 heavy transport aircraft, KJ-2000 AEW&C aircraft, J-16 strike fighters, J-15 carrier fighters, and J-10B fighters. The latest H-6K bombers, along with H-6U aerial tankers and Y-9 transports, also made an appearance.

    J-20 – Three J-20 stealth fighters led the aerial portion of the PLA's 90th anniversary parade. -Xinhua News Agency

    Z-10 attack and Z-18 transport helicopters showed up, flying in formations shaped like "90," as well as the Chinese characters for 8-1 (a reference to August 1), with the Z-18 transports landing to disgorge airmobile infantry.

    The highlight was likely the public debut of not just one, but 16 DF-31AG intercontinental ballistic missiles (ICBMs). The DF-31AG is an improvement over the 7,146-mile-range DF-31A ICBM. It carries a larger, reinforced missile canister likely carrying a more powerful missile with increased range or payload. The DF-31AG also uses an all-terrain 8X8 launch vehicle, enabling it to go off-road, which will make it much harder to find compared to its truck-launched predecessor. 

    DF-31AG – Sixteen DF-31AG ICBMs marched in the parade. China likely has more DF-31AGs in addition to those, thanks to a recent, rapid build-up of Chinese nuclear forces. -Xinhua News Agency

    The presence of 16 new ICBMs (there are likely other DF-31AGs not present at the parade), along with several dozen other ICBMs, shows that China's nuclear global strike capacity is growing in size and capability. 

    Guns and Rockets – PLZ-05, PLZ-05 howitzers, PHL-03 heavy multiple rocket launchers, along with AFT-10 missile launchers in the background, are becoming the go-to fire support options for Chinese mechanized brigades and divisions. -Xinhua News Agency

    Other missiles present: the DF-31A ICBM, the DF-26 intermediate-range ballistic missile, and the DF-16 short-range ballistic missile. Surface-to-air missiles were well represented by HQ-9B and HQ-16 SAMs, as well as LD-2000 and PGZ-07 anti-air cannons. The surface-attack options were represented by CJ-10 cruise missiles, YJ-62 and YJ-83 anti-ship missiles, and YJ-12 supersonic anti-ship missile.

    The fact that the parade took place not in Beijing, but in Inner Mongolia, was symbolic. Zhurihe hosts the PLA's annual Stride exercises. These wargames pit the resident "Blue Team" (a mechanized infantry brigade that uses NATO tactics) against visiting PLA units. These wargames are played in a variety of urban, hill, and open-area locations, often under intensive conditions, including simulated nuclear battlefields.

  • Yuan Spikes After China Export Growth Tumbles To 5-Month Lows

    Just as we warned, the EM exuberance has faded and China's torrid trade growth has suddenly slowed dramatically. Offshore Yuan is spiking after both China Imports and Exports dramatically missed expectations.

    China customs administration announces data in yuan terms in statement:

    • July exports climbed 11.2% y/y; median est. 14.8% rise y/y (range +12.1% to +16.5%, 10 economists).
    • July imports climbed 14.7% y/y; median est. 22.6% rise (range +16.0% to +26.9%, 10 economists)
    • July trade surplus 321.2b yuan; median est. 293.6b yuan surplus (range 250b-348.3b yuan surplus, 10 economists)

    Export growth is now the slowest since February (lower than the lowest estimate) and Import growth is now the weakest since Dec 2016 (lower than the lowest estimate)…

     

    The most obvious reaction in markets was a jump in Bitcoin and spike in Offshore Yuan…

     

    Of course, as Bloomberg reports, the world’s largest exporter is confronting more uncertainty, as U.S. President Trump continues sporadic tough talk on China. The White House may beconsidering an investigation into alleged intellectual property violations, which could risk igniting broader trade conflict. Citic Securities Co. said in a researchreport that rising U.S. protectionism coupled with anti-globalization sentiment in Europe will take its toll on China’s exports.

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Today’s News 7th August 2017

  • Imperial Folly Brings Russia And Germany Together

    Authored by Pepe Escobar via InformationClearingHouse.info,

    The Empire of Whiners simply can't get enough when it comes to huff, puff and pout as the Empire of Sanctions.

    With an Orwellian 99% majority that would delight the Kim dynasty in North Korea, the "representative democracy" Capitol Hill has bulldozed its latest House/Senate sanctions package, aimed mostly at Russia, but also targeting Iran and North Korea.

    The White House's announcement – late Friday afternoon in the middle of summer – that President Trump has approved and will sign the bill was literally buried in the news cycle amidst the proverbial 24/7 Russia-gate related hysteria.   

    Trump will be required to justify to Congress, in writing, any initiative to ease sanctions on Russia. And Congress is entitled to launch an automatic review of any such initiative.

    Translation; the death knell of any possibility for the White House to reset relations with Russia. Congress in fact is just ratifying the ongoing Russia demonization campaign orchestrated by the neocon and neoliberalcon deep state/War Party establishment.

    Economic war has been declared against Russia for at least three years now. The difference is this latest package also declares economic war against Europe, especially Germany.

    That centers on the energy front, by demonizing the implementation of the Nord Stream 2 gas pipeline and forcing the EU to buy US natural gas.

    Make no mistake; the EU leadership will counterpunch. Jean-Claude Juncker, president of the European Commission (EC), put it mildly when he said, "America first cannot mean that Europe's interests come last."

    On the Russia front, what the Empire of Sanctions faces does not even qualify as a hollow victory. Kommersant has reported that Moscow, among other actions, will retaliate by banning all American IT companies and all US agricultural products from the Russian market, as well as exporting titanium to Boeing (30% of which comes from Russia).

    On the Russia-China strategic partnership front, trying to restrict Russia-EU energy deals will only allow more currency swaps between the ruble and the yuan; a key plank of the post-US dollar multipolar world.  

    And then there's the possible, major game-changer; the German front.

    The Fools on the Hill

    Even without considering the stellar historical record of Washington not only meddling but bombing and regime-changing vast swathes of the planet — from Iraq and Libya to the current threats against Iran, Venezuela and North Korea — the Russia-gate hysteria about meddling in the 2016 US presidential election is a non-story, by now thoroughly debunked.

    The heart of the matter is, once again, energy wars.

    According to a Middle East-based US energy source not hostage to the Beltway consensus, "the message in these sanctions is the EU has no future unless it buys US natural gas to cut out Russia. To deny Russia the natural gas market of the EU was the goal behind the just lost war in Syria to put the Qatar-Saudi Arabia-Syria-Turkey-EU pipeline in and the opening to Iran for an Iran-Iraq-Syria-Turkey-EU pipeline. None of these plans worked."

    The source adds as evidence the 2014 oil price war against Russia, orchestrated by "the dumping of Gulf States' surplus oil or reserve capacity on the world market. Since this has failed to bring Russia to its knees, the destruction of the Russian natural gas market in the EU has become a national priority for the United States."

    As it stands, 30% of all EU oil and natural gas imports come from Russia. In parallel, the Russia-China energy partnership is being progressively enhanced. Russia is already geared to increase oil and gas exports to China and Asia as a whole.

    The leadership in Berlin is now convinced that Washington is jeopardizing Germany's energy diversification/energy security via the  sanctions war. Russian natural gas and oil is secured by overland routes and is not dependent on the oceans, which, as the energy source stresses, "are no longer under United States control. If Russia in response to United States belligerency drops an Iron Curtain over Europe, and redirects all its natural gas and oil exports to China and Asia, Europe will be utterly dependent on largely insecure sources of natural gas and oil such as the Middle East and Africa."

    And that bring us to the "nuclear" possibility in the horizon; a Germany-Russia alignment in a Reinsurance Treaty, as first established by Bismarck. CIA-related US Think Tankland is now actively discussing the possibility.    

    Another US business/political source, also a practitioner of thinking outside the (Beltway) box, stresses, "this is what it's all about. That is the true goal of Russia, and the United States has fallen into the trap. The United States has had enough of Germany and what it considers dumping of German products on the United States through rigged currency. They are now threatening Germany with sanctions, and there is nothing Germany can do with the EU on their back facing vetoes from Poland, who is giving them trouble once again. The fools in Congress are really going after Germany, and throwing Germany in the arms of Russia."

    The US as the New Carthage

    A possible Germany-Russia alliance, as I've written before, rounds up the China/Russia/Germany entente capable of reorganizing the entire Eurasian land mass.

    The Russia-China strategic partnership is extremely attractive to German business, as it smoothes access via the Belt and Road Initiative (BRI). According to the business/political source,

    "the US is at war with China and Russia (but not Trump, our President) and Germany is having second thoughts about being nuclear cannon fodder for the US.

     

    I have discussed this in Germany, and they are thinking of renewing the Reinsurance Treaty with Russia.

     

    No one trusts this US Congress; it is considered a lunatic asylum. Merkel may be asked to leave for the leadership of the UN, and then the treaty would be signed. It will shake the world and end any thought of the United States being a global power, which it isn't anymore."

    The source adds, half in zest, "we think that Brzezinski died under the pressure of the realization that this was coming and that all his hatred of Russia and his life work to destroy them was becoming utterly undone."

    So, in a sense, it's "welcome to the 1930s all over again and the rise of nationalism in Europe. This time Germany will not make the mistakes of 1914 and 1941 but will stand against their traditional Anglo-Saxon enemies. The United States has truly become today's Carthage and the disorder in Congress reflects the same stupidity of Carthage facing Rome. Legislators undermined their genius Hannibal as they are undermining the greatest president of the United States since Andrew Jackson. As Sophocles wrote in 'Antigone', 'God first makes mad those he wishes to destroy.' This Congress is mad."

     

  • Where Snowden Failed, THIS Won't

    By Chris at www.CapitalistExploits.at

    When in 2013 Ed Snowden revealed to Joe Sixpack that his data was indeed being hacked and intercepted, not by crazy vodka swilling Ivan in Novgorod but by team America, there was the sort of surprise and outrage that comes with finding your 5-year old just wiped snot across your brand new leather sofa. A lot of yelling and screaming, limbs flailing, and a decent level of embarrassment for Johnny Snotnose, who in this instance was the NSA.

    Less than 12 months later, all was forgotten. In the end nobody gave an isht.

    In the ghettos of social media the Kardashians were calling and “Hey look, did you know there are pornos on the Internet with woman and farm animals?”

    Joe Sixpack doesn’t care about the fact that his photos are accessible, even the naughty ones. Indeed almost every app downloaded today requests permission to breach that gap. Joe doesn’t care about his contacts list being breached. He clicks the “Sure, rape me” “Accept Permissions” button with glee, eager to get the download finished so that he can start sharing photos of what’s on his dinner plate with the whole world because… well, actually I have no idea.

    It’s insane to me. Sadly the hoi-polloi spend more time looking at Joe’s dinner choice than reading the fine print on the permissions they’ve just granted to the apps downloaded.

    You’d be forgiven for thinking that a goldfish-like memory could be to blame. I certainly thought people would care but obviously I was wrong because ever since then we’ve had more reasons to be outraged over real problems of this nature than you could shake a stick at.

    Since Snowden, Wikileaks have provided an absolute deluge of additional fodder in this space. What’s happened?

    Nothing! Nobody cares.

    Just yesterday we were alerted to “Dumbo” a CIA project.

    Try finding anything on the MSM about it and it’s like searching for a Texan cattle farmer at a vegan food festival.

    Sure, we know the MSM are a complete joke but the masses still gather around the MSM drinking fountain for their daily dose of intellectual junk food. What did they have to say on the topic?

    Instead of outrage and public humiliation showered on the perpetrators, we’re treated to snowflakes, daffodils, and bubble bath enthusiasts fighting the injustices perpetrated on Joey, who goes by the name Sheila due to his desire to don a frock and spend all his money rearranging his bits at the cosmetic surgeon.

    There is, however, one thing that’s going to change it all…

    Money.

    Data security is like a seatbelt. It only matters when you park the beemer into a gum tree at speed.

    People only protect data when that data is attached to economic value.

    Ask anyone who’s bought, sold, and transacted in bitcoin what computer they use and not one will say a Windows machine.

    The reasons for this are quite simple. That’d be like driving blindfolded at speed without a seatbelt, after chugging back a half a bottle of Glenfiddich.

    This is just a first step in data security, and I use bitcoin as an example because typically the folks who have spent any time figuring it out know a thing or two about data security and cryptography.

    Back to the masses, though.

    Clearly when the wet-lipped psychopaths at some three letter agency are looking at Joe’s Facebook content or the naughty video he made last night with his girlfriend, Joe doesn’t much care. But when Joe begins storing real value and assets on his computer or smartphone and they get stolen, then, and only then, will Joe very quickly attach value to his data security. The learning curve promises to be steep.

    That world is coming super fast as I mentioned previously.

    Adoption of safety measures will come faster than Brangelina were picking up new ethnic babies from Nambabwia or wherever a few years back. When people realise that their livelihood is directly attached to their data security, then, and only then, will the begin to care.

    I posted this chart previously in an article on the rise of cyber security:

    Mark Andreessen famously stated that software is eating the world and by George, he was right. With all that software though comes a different set of problems. One of those problems, one even larger than John Prescott, is cyber security.

    Now once again, I suspect Joe Sixpack won’t give an isht if someone can see that he’s turning on his heating system from his smartphone while on the way home. But when it gets disrupted and hacked and his phone automatically pays for a weekend at the Marriott in Bali without his knowledge, Joe will search for solutions in a blind panic.

    When Joe begins getting paid via smart contracts and in value tokens attached to his workplace and it’s all done on a network, Joe will care a lot.

    Economic incentives, both fear and greed, never change. What’s changing is our financial architecture and how we’re going to have to deal with that.

    Fortunes will be made on the back of what promises to be an explosion in data security. Watch!

    – Chris

    “The great fear that I have is that nothing will change.” — Edward Snowden

    ————————————–

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

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

    ————————————–

  • From Jihad To Jobs, Paul Craig Roberts Says "Fakes News Is A US Media Specialty"

    Authored by Paul Craig Roberts,

    The American media specializes in fake news.

    Indeed, since the Clinton regime the American media has produced nothing but fake news.

    Do you remember the illegal US bombing and destruction of Yugoslavia? Do you remember “war criminal” Slobodan Milosevic, the Serbian president branded “the butcher of the Balkans,” who was compared to Hitler until Hillary passed the title on to the President of Russia? Milosevic, not Bill Clinton, was arrested and placed on trial at the International Criminal Tribunal. He died in prison, some say murdered, before he was cleared of charges by the International Criminal Tribunal. http://www.globalresearch.ca/milosevic-and-the-destruction-of-yugoslavia-unpleasant-truths-no-one-wants-to-know/5540873

    Do you remember the destruction of Iraq justified by the orchestrated propaganda, known by the criminal George W. Bush regime to be an outright lie, about Saddam Hussein’s “weapons of mass destruction,” weapons that the UN arms inspectors verified did not exist? Iraq was destroyed. Millions of Iraqis were killed, orphaned, widowed, and displaced. Saddam Hussein was subjected to a show trial more transparent than Stalin’s trial of Bukharin and then murdered under the pretext of judicial execution.

    Do you remember the destruction of Libya based entirely on Washington’s lies and the criminal misuse of the UN no-fly resolution by turning it into a NATO bombing of Libya’s military so that the CIA-armed jihadists could overthrow and murder Muammar Gaddafi? Do you remember the killer bitch Hillary gloating, “we came, we saw, he died!”

    Do you remember the lies that the criminal Obama regime told about Assad of Syria and the planned US invasion of Syria that was blocked by the UK Parliament and the Russian government? Do you remember that Obama and the killer bitch sent ISIS to do the job that US troops were prevented from doing? Do you remember General Flynn revealing on TV that it was a “willful decision” of the criminal Obama regime to send ISIS to Syria over his objection as Director of the Defense Intelligence Agency? This bit of told truth is why Gen. Flynn is hated by the Washington criminals who forced him out as Trump’s National Security Adviser.

    Do you remember the US coup in Ukraine against the democratically elected government and its replacement with a neo-nazi regime? Do you remember that Washington’s crime against Ukrainian democracy was quickly hidden behind false charges of “Russian invasion”?

    Can you think of any truthful report in the American news in the past two decades?

    All of the lies leading to the death of millions told by the criminal Clinton, George W. Bush, and Obama regimes were transparent. The US media could easily have exposed them and saved the lives of millions of peoples and saved seven countries from destruction in whole or part. But the presstitutes cheered on the gratuitous and criminal destruction of countries and peoples. Every one of the presstitutes is a war criminal under the standards set by US Supreme Court Justice Robert Jackson at the Nuremberg trials.

    We cannot even get a truthful jobs report. Friday (Aug. 4) the Bureau of Labor Statistics (BLS) reported 205,000 new private sector jobs in July and a drop in the unemployment rate to 4.3%. This is fake news.

    The Associated Press’s Christopher Rugaber rah-rahs the fake news, adding that many economists think “robust hiring could continue for many more months, or even years.” Let’s think about that for a moment. Generally speaking economists regard full employment to be a 5% rate of unemployment. There can never be a zero rate of unemployment because of frictions in the job market. For example, there are people between jobs who have lost or quit a job and are looking for a new one, and there are people who have dropped out of the work force, perhaps to spend more time parenting or to care for an aged and ill parent, and have reentered the work force. Economists also believe that employment cannot go too low without pushing up inflation.

    Assuming economists have not suddenly changed their minds about what rate of unemployment is full employment, if the unemployment rate is currently 4.3%, it is already below the full employment rate. How can the rate continue to fall for years when the economy is already at full employment? Apparently, this question did not occur to the AP reporter or to the “many economists.”

    Of course, the 4.3% unemployment rate is fake news. It does not include millions of discouraged workers. When these workers who have not looked for jobs within the last four weeks are included, the unemployment rate jumps to 22-23%.

    Now consider the alleged 205,000 July new jobs. Probably about half of these jobs are due to the add-ons from the birth-death model, and the other half from manipulations of seasonal adjustments. John Williams at shadowstats.com will tell us. However, let’s assume the jobs are really there. Where does the BLS tell us the jobs are?

    Eighty-nine percent of the jobs are in services, essentially domestic non-tradable services.

    Professional and business services account for 49,000 of the jobs, of which 30,000 are in administrative and waste services (garbage collection) and 14,700 are in temporary help services.

    54,000 of the jobs are in education and health services, of which ambulatory health care services, home health care services and social assistance account for 46,900 of the jobs.

    62,000 of the jobs are in leisure and hospitality, of which waitresses and bartenders account for 53,100 of the jobs and amusements, gambling, and recreation account for 5,900 jobs.

    This picture of American employment has been holding for about two decades. It is a portrait of a third world labor force. The jobs are not in export industries. The jobs are not in high productivity, high value-added occupations that produce a middle class income. The jobs are in lowly paid, often part-time domestic services.

    The jobs do not produce incomes that provide discretionary spending to drive up business profits. So why did the stock market hit new highs? The answer is that corporate executives are taking advantage of the Federal Reserve’s zero interest rates to borrow money with which to buy back their companies’ shares in order to drive up their bonuses, the main component of their pay.

    But these undeniable facts about employment did not prevent Christopher Rugaber and the other financial presstitutes or newspaper headline writers or “many economists” from asking “How much better can it get?” (Atlanta Journal-Constitution front page, Aug. 5, 2017).

    It is not only seven Muslim countries that Washington and its presstitutes have destroyed in whole or part with lies. Washington’s lies have also destroyed the American economy and the American work force.

  • Mysterious Trader With "Nearly Unlimited Bankroll" Said To Manipulate, Dominate Price Of Bitcoin

    It was over three years ago, back in May 2014, when we wrote “How Bots Manipulated The Price Of Bitcoin Through “Massive Fraudulent Trading Activity” At MtGox” in which we first demonstrated one of the more striking observed “bot-driven” bitcoin manipulation schemes, in this case related to the infamous collapse of the now defunct Mt.Gox bitcoin exchnage.

    As we wrote at the time, a number of traders began noticing suspicious behavior on Mt. Gox. Basically, a random number between 10 and 20 bitcoin would be bought every 5-10 minutes, non-stop, for at least a month on end until the end of January, by what appeared to be two algos, named later as “Willy” and “Markis.” Each time, (1) an account was created, (2) the account spent some very exact amount of USD to market-buy coins ($2.5mm was most common), (3) a new account was created very shortly after. Repeat. In total, a staggering ~$112 million was spent to buy close to 270,000 BTC – the bulk of which was bought in November.

    “So if you were wondering how Bitcoin suddenly appreciated in value by a factor of 10 within the span of one month, well, this is why. Not Chinese investors, not the Silkroad bust – these events may have contributed, but they certainly were not the main reason. But who did it? and why?”

    Of course, in the end this alleged manipulation did not help Mt.Gox which eventually collapsed in what has been the biggest case of cryptocoin fraud in history.

    We bring up this particular blast from the past, because in the latest case of bitcoin market abuse – with Bitcoin trading at all time highs above $3,000 – Cointelegraph reports of rumors swirling about a trader “with nearly unlimited funds who is manipulating the Bitcoin markets.” This trader, nicknamed “Spoofy,” received his “nom de guerre” because of his efforts to “spoof” the market, primarily on Bitfinex.

    Of course, spoofing is what Navinder Sarao pled guilty of last year, when regulators inexplicably changed their story, and instead of blaming a Waddell and Reed sell order for the May 2010 flash crash, decided to scapegoat the young trader who allegedly crashed the market due to his relentless spoofing of E-mini futures (and also making $40 million in the process of spoofing stock futures for over five years).

    It now appears that a spoofer has once again emerged, only this time in Bitcoin.

    For those unfamiliar, spoofing is simple: it is the illegal practice of placing a large buy order just below other buy orders, or a large sell order just above other sell orders, then cancelling if it appears that the order is about to be hit or lifted. The idea is to make traders think that somebody with deep pockets is getting ready to buy or sell, in hopes of moving the market. If traders see a sell order of 2000 Bitcoin they may rush to panic sell before the whale crashes the price. And vice versa on the bid-side.

    As an example of Spoofy’s trading pattern, here is a breakdown of a typical “trade” by the mysterious entity as noted by BitCrypto’ed who first spotted the irregular activity: Spoofy is a regular trader (or a group of traders) who engages in the following practices:

    • Places large bids ($2 million and up) for Bitcoin, usually just under a smaller bid order, only to remove them once someone starts to sell. These orders usually have a lifetime of minutes, or sometimes as short as 5–10 seconds to manipulate the price up (more common)
    • Places large asks ($2 million and up), for Bitcoin when he wants the price to go down, or stop going up (less common)
    • Occasionally ‘Spoofy’ will allow orders deep in the orderbooks to remain for a few hours, usually $50–$100 below the current price. For example, during the recovery above $2,000, he had roughly 4,000 BTC of false orders in the $1,900 range that were unlikely to execute, and ultimately were never executed.

    As noted above, spoofing is actually illegal – as ultimately the trader has no intention of ever executing the publicized trade – but as Bitcoin markets are largely unregulated, it’s a very common practice.

    What is unusual in this case is the nearly unlimited bankroll that Spoofy has at his disposal: He regularly places orders approaching $60 million.

    Even more unusual is that, as cointelegraph reports, most of Spoofy’s activity occurs on a single exchange: Bitfinex. This exchange came under fire earlier this spring when Wells Fargo cut off their banking ties. As a result, it’s virtually impossible to deposit fiat on Bitfinex without going through intermediaries.

    Yet unlike most Bitfinex traders, Spoofy appears to have special privileges, and has massive sums of both fiat and Bitcoin at his disposal on that exchange, likely one of the only traders who does.

    * * *

    In addition to spoofing, “Spoofy” also engages in wash trading, or effectively trading with himself. As BitCrypto’ed points out in a recent blog post:

    “Spoofy makes the price go up when he wants it to go up, and Spoofy makes the price go down when he wants it to go down, and he’s got the coin… both USD, and Bitcoin, of course, to pull it off, and with impunity on Bitfinex.”

    The BitCrypto’ed blog also describes Spoofy’s wash trades, when he trades with himself by either selling into his own buy orders or vice versa. Wash trading at high volumes can induce a frenzy of buying or selling, as other traders respond to the high trading volume. Spoofy can execute wash trades at very low cost, about $1,000 per million dollars of volume.

    A single entity (entity could be a trader, or a group of traders), single handedly wash traded 24,000 Bitcoins in shorts. In order to do this, you would need to have at least 24,000 BTC on Bitfinex and the USD to buy them with.

    When Bitfinex announced its plan to distribute Bitcoin Cash, it initially planned to distribute Bitcoin Cash to holders of short positions. Immediately following that announcement, a single trader short sold tens of thousands of Bitcoin all at once. It’s likely this trader was Spoofy himself, hoping to acquire as much Bitcoin Cash as possible.

    The large number of shorts on Bitfinex also led many to believe that an epic short squeeze was coming, and many Bitcoin traders purchase coins in expectation of this. Suddenly, he “claimed” all of his own shorts, closing them using his own Bitcoin. The number of shorts dropped drastically, yet without affecting the price at all.

    Bifinex itself admitted the manipulation on August 2, one day after the fork:

    “After the methodology announcement on July 27th, several accounts began large-scale manipulation tactics in an attempt to obtain BCH tokens at the expense of exchange longs and lenders on the platform, causing the distribution coefficient to artificially plummet.

     

    We have determined that this kind of manipulation?—?including wash trading and self-funding shorts?—?is in violation of Bitfinex’s terms of service. Those who intended to take unfair advantage of the circumstances surrounding the BCH distribution at the expense of other users have been sanctioned accordingly.”

    Interestingly, BitCrypto’ed claims that Spoofy isn’t limited to just Bitcoin, and that shortly after this ‘trader’ was ‘sanctioned’ by Bitfinex, another interesting thing happened: ETCBTC shorts immediately disappeared on August 1.

     

    Here we can see how the ETCBTC shorts simply vanished, from 60,000 ETC short, to a low of 93 ETC. But let’s not just look at ETCBTC, what about ETCUSD?

     

     

     

    A giant middle finger. Notice the dramatic increase and decrease in longs with no effect on price.

     

    I’m not sure what to make of these, but it calls into question the legitimacy of this data. The point I’m trying to make by showing the ETCBTC/ETCUSD margin pairs also engaging in very funny business at the same exact time, how are we supposed to know that the BTCUSD longs on Bitfinex are not also subject to this manipulation?

     

    ETCBTC Shorts = Clear evidence of manipulation
    ETCUSD Longs =Clear evidence of manipulation
    BTCUSD Shorts = Clear evidence of manipulation (and admitted by Bitfinex)
    BTCUSD Longs = BTCUSD Longs in terms of USD, has never been higher in Bitfinex’s history. See the green line.

     

    It’s not just Bitfinex: Spoofy’s activity also drives crypto prices on other exchanges, as arbitrage takes place. Because BItcoin is so thinly traded, a single large “whale” can potentially move the entire market.

    Just like in US stock markets where HFTs find instant price arbitrage opportunities, with the help of extensive spoofing, the same takes place in bitcoin exchange.

    People underestimate how much exchanges follow each other. Manipulation on one exchange will affect prices on other exchanges. You have traders that watch all of the exchanges and if one exchange starts to pull ahead, they too buy on cheaper exchanges.

     

    You don’t just have people, but you also have bots that will do the same thing, so price reactions can be immediate.

    Just like equities. And while Spoofy is certainly exercising outsized control over the Bitcoin price, it is uncertain how much of an affect this is having across all the markets. The price is currently rising, having finally surmounted the $3,000 barrier. The only problem? Nobody knows how much of this increase is organic and sustainable, and how much is due to the market manipulation of Spoofy and others.

    Finally, nobody knows who he is:  The identity of Spoofy remains a mystery. He may be i) a single trader, ii) a large OTC trading firm or group of colluding traders, iii) or even the Bitfinex management themselves. He sometimes seeks to drop Bitcoin price, and sometimes acts to increase it. One thing is certain: one single trader seems to have a “central bank”-like impact on the entire crypto market.

  • Stephen Miller Is Reportedly In The Running For Scaramucci's Old Job At The White House

    President Donald Trump has barely been in office for six months and already he's seen three communications directors come and go – Mike Dubke, Sean Spicer (who handled its duties when the post was vacant) and Anthony Scaramucci.

    And now sources inside the White House are telling Axios that Senior Policy Adviser Stephen Miller is in the running for the communications director job after his on-camera thrashings of CNN’s Jim Acosta and the NYT’s Glenn Thrush elicited widespread praise from conservatives last week and reportedly made an impression on the president.

    To be sure, the Trump administration is still “in the name-gathering process” and Miller isn’t even the top contender for the job. Miller faces some opposition, including from members of the Republican establishment, who believe he’s “unpersuasive.” But the fact that he made Acosta look like a “jacka**” in front of the whole country has helped him in Trump’s estimation. 

    Miller’s experience working with the media began during his stint as an aide to then-Senator Jeff Sessions. At the time, he “was effectively an adjunct of the Breitbart team,” according to Axios. During his tenure in the White House, he’s already helped shape the administration’s communications strategy by working on some of Trump’s biggest speeches, including the “American Carnage” inaugural address, which he co-wrote with Steve Bannon.

    Miller also has a reputation for “bugging reporters at all hours with his story pitches, and seemingly had a direct line to Matt Drudge. The running joke was that the Sessions' office had a permanent lease on at least one of the prized top-left Drudge links.”

    As Axios notes, the quality that Trump values most is an aide's ability to make him look good on television – particularly if they can do it at the expense of a CNN or NYT reporter, like Miller did.

    Even Thrush admits that Miller is obviously qualified.

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    But the most important question, which Axios doesn’t address, is what’s the relationship like between Miller and Trump’s new Chief of Staff John Kelly, who was widely credited with ousting Scaramucci from the communications director post last month after he had held the job for only 10 days. Miller’s knack for currying favor with the Jared and Ivanka faction in the West Wing has helped him establish a reputation as someone who’s widely liked and respected in the administration, particularly for his “rainman” like ability to recall immigration statistics.

    Still, does he have the "General's" respect? His chances of lasting in the job more than just a few weeks depend on it.
     

  • Did An Author From The 1800s Predict Trump And America's Downfall?

    Authored by Josie Wales via TheAntiMedia.org,

    Did a 19th-century author really predict Trump’s election, Russiagate, and the potential collapse of the country?

    It’s impossible to say for sure, but the ever-resourceful and endlessly curious users of Reddit and 4chan have unearthed some fascinating evidence to give some substance to the fantasy.

    In the late 1800s, an American lawyer, political writer, and novelist named Ingersoll Lockwood penned two fantasy novels about a highly-imaginative little boy named “Wilhelm Heinrich Sebastin von Troomp, commonly called, ‘Little Baron Trump,’ and his wonderful dog Bulger.” Little Baron Trump is the main character in both The Travels and Adventures of Little Baron Trump and His Wonderful Dog Bulgar and Baron Trump’s Marvelous Underground Journey, which follow the wealthy boy and his dog as they leave “Castle Trump” to embark on a journey underground to explore the theory that the earth is not solid, but inhabited by people who were chased underground by “terrible disturbances.”

    The boy learned of this theory through a manuscript given to him by his father called World within a World, which was written by a celebrated thinker and philosopher named Don Fum. Before leaving Castle Trump in the Marvelous Underground Journey, Baron’s father refers to Don as a “safe and trusty counselor” and reminds him of the Trump motto – “the pathway to glory is strewn with pitfalls and dangers.” As Baron goes on a search for the portal to the “World within a World” with Don as his guide, his travels take him to the Ural mountains in Russia. So Little Baron Trump and his dog are guided by Don to Russia.

      While all of this is fascinating – and one heck of a coincidence – it’s Lockwood’s third book that really throws everyone for a loop.

    “The Chicago Platform assumes, in fact, the form of a legendary propaganda. It embodies a menace of national disintegration and destruction.” 

     

    That quote, taken from Garret A. Hobart’s public speech of acceptance of the Republican nomination on September 10th, 1896, also serves as the epigraph of a book also published in 1896 by Ingersoll Lockwood, titled 1900 or The Last President. It was stamped by the Library of Congress on September 28th, just two weeks after Hobart gave that speech.

    The Last President opens in New York City on November 3rd, 1896, with the announcement of the newly-elected president of the United States, who happens to be an outsider candidate – the candidate who represented the “common man,” who would liberate the people from the grip of the bankers, and “undo the bad business of years of unholy union between barters and sellers of human toil and the law makers of the land.”

    Aka, an anti-establishment candidate.

    The very first page describes New York in turmoil over the announcement, with mounted policemen yelling through the streets:

    “Keep within your houses; close your doors and barricade them. The entire East Side is in an uproar.

     

    Mobs of vast size are organizing under the lead of Anarchists and Socialists, and threaten to plunder and despoil the houses of the rich who have wronged them for so many years.”

    As the riots advance upon Madison Square, the book reads, 

    “The Fifth Avenue Hotel will be the first to feel the fury of the mob.

     

    Would the troops be in time to save it?” 

    According to Newsweek, Trump Tower now sits where The Fifth Avenue Hotel used to stand.

    There are many theories floating around the internet; some say Barron Trump is actually Lockwood, who traveled through time to write about his adventures; others believe Steve Bannon is a 50-year old Barron Trump and they’re time-traveling together; another believes “we are all Barron and Barron is all of us,” and some of us are simply chalking it up to 2017 having a competition with itself to see just how weird it can get.

  • Baltimore Weekend Ceasefire Ends With 2 Killings

    Submitted by Stock Board Asset

    Heading into this weekend, we reported on a ceasefire agreement between Baltimore “gang leaders, drug dealers and others linked to the violence”.  The ceasefire was called “Nobody kill anybody for 72-hours”, but it seems that was too much to ask for the violence-plagued city on pace for its highest number of killings ever.

    In the 42nd hour of the ceasefire, gunshots were heard at the 1300 block of Sargeant Street around 5:03pm (walking distance to Ravens Stadium). Officers arrived to find a 24-year old man suffering from gunshot wounds, where he died at Maryland Shock Trauma Center.

    Around 10 p.m., officers responded to the 1600 block of Gertrude Ct, where a 37-year-old man was shot. He later died at Maryland Shock Trauma Center. Baltimore’s war-torn streets are located 40-miles north of Washington, D.C., where President Trump is too busy tweeting about Chicago’s violence. What’s rarely discussed on a national level is how Baltimore’s homicide rate is now doubled Chicago’s. Also, Baltimore’s population is 14-times smaller than New York City, but manages to sustain a higher homicide count this year.

    Baltimore police spokesman T.J. Smith said that the killings should not take away from the goals of organizers. The killings appear to be the first homicides of the weekend according to NBC.

    “Yes, there was a homicide. But,the work doesn’t stop,” Smith said in a tweet Saturday evening. “Organizers called and are in the area to continue to spread love.” Smith’s 24-year-old brother, Dionay Smith, was fatally shot in July.

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    Before the weekend, the city recorded 208 homicides in 2017, NBC affiliate WBAL-TV reported. Far larger New York City has recorded 160 murders through July 30, according to police data. Before the cease-fire began, one of the movement’s organizers, Erricka Bridgeford, said the effort might not stop all violence — but it could be a step in the right direction.

    “We don’t think this is a cure,” she said. “We don’t think this will even necessarily stop violence that weekend, but we know that some people have made promises that they won’t, and that just might save somebody’s life.”

    At the moment, crime and despair is certainly plaguing Baltimore’s inner city. The Economist lends a hand and signals their homicide model is indicating 2017 will be the deadliest year ever in Baltimore.

    In July, we wrote an article titled: Visualizing America’s Wealth Inequality (From The Sky Above Baltimore). The article highlights the massive wealth inequality gap in Baltimore… Citizens are starting to wake up to the fact that 50-years of Democrat controlled leadership, along with deindustrialization has turned Baltimore into an utter war zone.

    What I’m about to show you is a unique experience of Baltimore’s ceasefire. In the video, we start with an aerial tour of West Baltimore where the homicide rate is doubled Chicago’s. Then, we transition onto the streets with the activist and organizers of Baltimore’s ceasefire. This is a unique experience that the mainstream media will not show you because it destroys the narrative that everything is awesome.

    You’ll hear for yourself from the citizens who live in these war-torn areas that everything is not awesome and they’re tired of being ignored. The longer mainstream ignores America’s inner city problem, the longer we waste time in finding a solution. As of today, there are no viable solutions to fix America’s inner cities, otherwise we wouldn’t be having this informative conversation.

    America’s inner cities are becoming a public health issue that will soon affect us all. We’re all in this together….

  • Ending the Golden Age of Nothingness

    Sir Isaac Newton once famously said, “If I have seen further, it is by standing on the shoulders of giants.”

    Well, Ike knew a thing or two; for it is indubitable that he would never have had the necessary foundation of knowledge to whip up the law of universal gravitation without the works of Euclid or Copernicus before him. If not for Bach – and his father’s strict hand – perhaps Beethoven would have been a bricklayer. Without Langton and Magna Carta, the Founding Fathers never write the Constitution.

    Those giants of Western Civilization were once of a sort that served mankind with wisdom, guiding their antecedents to look towards a future of beauty, freedom, and existential meaning. One Golden Age developed after another as great men were inspired to outdo the other or even to reach for the heavens in art, architecture, music, and literature.

    Lately, though, it seems we’ve decided to perch instead on postmodern beings who, while great in technological stature, are cultural ogres. 

    When we peer through the looking glass today, all we see, both immediately surrounding and far afield, is a desolation of ugliness and mediocrity:

    • Soulless architecture that betokens our standing as utilitarian drones.
    • Popular music sung (or mumbled, rather) in the gutter-mouthed patois of degenerate gang members.
    • Pointless films – often written by committee and informed by focus groups – that wallow for two banal hours in quick-cut action scenes without dramatic tension; one-dimensional characters as performed by two-dimensional celebrities in third-rate productions.
    • An educational system that replaces the canon of Dante, Donne, and Mallory with The Red Wheelbarrow.

    Modern art affirms nothing except for mindless consumerism and appealing to our basest instincts. For all our advanced tools and broad access to them, mankind should be practically minting new artistic genius. Yet nothing today can top the achievements of those of ages gone by.

    So why then does Nature no longer, to paraphrase Forster, “throw out a god” to stand out as divine amongst the “thin-hammed mediocrities”, than when there were billions fewer in the world?

    Because when it comes to art, profit motive suborns beauty and invites the average.

    This wasteland came about when the best and most talented minds – those who could have been the next Shakespeare or Michelangelo – departed the land of the arts in favor of a life serving as cogs in a corrupted, increasingly statist machine that separates individuality and spits out utility.

    When potentially great creators go where the money is, the fields of cultural endeavor are left to be tended by fools.

    Soon after the best and brightest left for semi-lucrative STEM careers, the lands became fallow and our current Cultural Dark Age is the result; this abandonment has left the arts securely in the hands of green-haired Gender Studies majors and Nietzsche’s Last Man in skinny jeans.

    Each passing generation then subsists off this degraded fare which nourishes neither the intellect nor the soul. Eventually, there will be no one left who can remember tasting anything better and thus the negative feedback loop is in full motion.

    It will only worsen until conservatives realize that those who pump the imagery of art into the minds of the young wield infinitely more power than any engineer or writer of computer code could ever dream. That is why the left won the propaganda wars of the past few generations so completely. The cycle only breaks when the political right starts grooming their children to Make Culture Great Again.

    One is constantly reading well-meaning advice in the columns and comments sections of alternative media stressing that parents should continue to nudge their children towards the hard sciences, because that’s the sector where they can procure the best livelihoods.

    This is sound on the surface, especially for young adults whose gifts are geared for such work. But if you do push them towards those disciplines, make sure they are on the path to self-employment or starting their own companies. Because even in the STEM fields, conservatives hold little power.

    Those kids will eventually be forced to toil for the leftists of Silicon Valley who grew up immersed in, and proudly adhere to, subversive culture.  Or the budding scientist must supplicate to those in Washington who dispense the science grants. Kiss advancement goodbye if you hold the wrong opinions.

    They’ll be employed by a corsortium of elitists whose ultimate goals are not only antithetical to tradition and morality, but will hasten its extinction.

    These are the oligarchs whose philosophical ends are to bring about the Singularity, to silence dissent, or level humanity under one-world governance where cultural greatness, or even humble simplicity, will be made impossible. Better that your kid become a blue-collar laborer or even a NEET with a free mind than to be servants to a wicked system.

    But for those of you with children of a creative bent, consider home-schooling them (or enrolling them in carefully-selected private schools) so you can bypass an educational system that is actively airbrushing Western Man’s achievements out of the history books; a system that has perverted the traditional liberal arts beyond recognition and almost out of remembrance.

    Once a sufficient number are again steeped in what is the best of mankind, they will be back on the shoulders of proper giants.

    They will then write the great novels, paint the sublime portraits, and direct the spiritually fortifying films that can make the fields of culture fertile once more. In so doing, the mediocrities will be banished to their romper rooms where they can frame each other’s finger paintings in deserved obscurity.

    By reclaiming education and the arts from the left, we can end our current Golden Age of Nothingness and maybe even repair capitalism in the process.

    A new Renaissance – moored to beauty, truth, and ethics – will ennoble the Man of the West, restoring him back to a balanced, fuller humanity. It will be as a torch to burn off the fraud and moral hazard that has attached itself like a leech to our increasingly globalist going concerns. Where virtue exists in abundance, such shady and mercenary practices are reviled.

    Economic patriotism and handshake deals will be back in vogue. Instead of capitalism making utility of man, man will make utility of capitalism as originally conceived.

     

    Lord Feverstone of Dystopia USA


  • Illinois Makes "Barack Obama Day" State Holiday

    Former President Barack Obama got a special present for his birthday this year: his very own holiday. According to NBC Chicago, on Friday Illinois Governor Bruce Rauner signed into law a measure to designate Aug. 4 as “Barack Obama Day” across the state. The holiday will be celebrated each year on Obama’s birthday beginning in 2018.

    The holiday will be “observed throughout the State as a day set apart to honor the 44th President of the United States of America who began his career serving the People of Illinois in both the Illinois State Senate and the United States Senate, and dedicated his life to protecting the rights of Americans and building bridges across communities,” Senate Bill 55 reads. 

    Gov. Rauner praised the idea behind the bill earlier this year after a previous version, which would have made the day a legal state holiday, failed. The new holiday is commemorative.

    “It’s incredibly proud for Illinois that the president came from Illinois. I think it’s awesome, and I think we should celebrate it,” Rauner told reporters in February. “I don’t think it should be a formal holiday with paid, forced time off, but I think it should be a day of acknowledgment and celebration.”

    SB 55 was introduced by Sen. Emil Jones III, the son of former Senate President Emil Jones, Jr., who played a major role in launching then-state Senator Obama to the U.S. Senate in 2004 and considers himself to be the former president’s political “godfather.” While several lawmakers abstained from voting on the measure, it passed both houses without a single vote against.

    “Barack Obama Day” joins other commemorative holidays like Adlai Stevenson Day, Ronald Reagan Day and Jane Addams Day, for which workplaces do not close.

    Local legislators also voted in July to rename part of a Chicago-area highway after their former colleague, designating the stretch of Interstate 55 from the Tri-State Tollway south to mile marker 202 near Pontiac as the “Barack Obama Presidential Expressway.”

    On Friday, Obama celebrated his 56th birthday, his first since leaving the White House, with Michelle Obama at Rasika West End in Washington, D.C.

    Also on Friday morning, Joe Biden wished Obama happy birthday on Twitter Friday morning. “Your service has been a great gift to the country, and your friendship and brotherhood are a great gift to me. Happy birthday, Barack.”

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Today’s News 6th August 2017

  • Doug Casey On The End Of The Nation-State

    Authored by Doug Casey via InternationalMan.com,

    There have been a fair number of references to the subject of “phyles” in Casey Research publications over the years. This essay will discuss the topic in detail. Especially how phyles are likely to replace the nation-state, one of mankind’s worst inventions.

    Now might be a good time to discuss the subject. We’ll have an almost unremitting stream of bad news, on multiple fronts, for years to come. So it might be good to keep a hopeful prospect in mind.

    Let’s start by looking at where we’ve been. I trust you’ll excuse my skating over all of human political history in a few paragraphs, but my object is to provide a framework for where we’re going, rather than an anthropological monograph.

    Mankind has, so far, gone through three main stages of political organization since Day One, say 200,000 years ago, when anatomically modern men started appearing. We can call them Tribes, Kingdoms, and Nation-States.

    Karl Marx had a lot of things wrong, especially his moral philosophy. But one of the acute observations he made was that the means of production are perhaps the most important determinant of how a society is structured. Based on that, so far in history, only two really important things have happened: the Agricultural Revolution and the Industrial Revolution. Everything else is just a footnote.

    Let’s see how these things relate.

    The Agricultural Revolution and the End of Tribes

    In prehistoric times, the largest political/economic group was the tribe. In that man is a social creature, it was natural enough to be loyal to the tribe. It made sense. Almost everyone in the tribe was genetically related, and the group was essential for mutual survival in the wilderness. That made them the totality of people that counted in a person’s life—except for “others” from alien tribes, who were in competition for scarce resources and might want to kill you for good measure.

    Tribes tend to be natural meritocracies, with the smartest and the strongest assuming leadership. But they’re also natural democracies, small enough that everyone can have a say on important issues. Tribes are small enough that everybody knows everyone else, and knows what their weak and strong points are. Everyone falls into a niche of marginal advantage, doing what they do best, simply because that’s necessary to survive. Bad actors are ostracized or fail to wake up, in a pool of their own blood, some morning. Tribes are socially constraining but, considering the many faults of human nature, a natural and useful form of organization in a society with primitive technology.

    As people built their pool of capital and technology over many generations, however, populations grew. At the end of the last Ice Age, around 12,000 years ago, all over the world, there was a population explosion. People started living in towns and relying on agriculture as opposed to hunting and gathering. Large groups of people living together formed hierarchies, with a king of some description on top of the heap.

    Those who adapted to the new agricultural technology and the new political structure accumulated the excess resources necessary for waging extended warfare against tribes still living at a subsistence level. The more evolved societies had the numbers and the weapons to completely triumph over the laggards. If you wanted to stay tribal, you’d better live in the middle of nowhere, someplace devoid of the resources others might want. Otherwise it was a sure thing that a nearby kingdom would enslave you and steal your property.

    The Industrial Revolution and the End of Kingdoms

    From around 12,000 B.C. to roughly the mid-1600s, the world’s cultures were organized under strong men, ranging from petty lords to kings, pharaohs, or emperors.

    It’s odd, to me at least, how much the human animal seems to like the idea of monarchy. It’s mythologized, especially in a medieval context, as a system with noble kings, fair princesses, and brave knights riding out of castles on a hill to right injustices. As my friend Rick Maybury likes to point out, quite accurately, the reality differs quite a bit from the myth. The king is rarely more than a successful thug, a Tony Soprano at best, or perhaps a little Stalin. The princess was an unbathed hag in a chastity belt, the knight a hired killer, and the shining castle on the hill the headquarters of a concentration camp, with plenty of dungeons for the politically incorrect.

    With kingdoms, loyalties weren’t so much to the “country”—a nebulous and arbitrary concept—but to the ruler. You were the subject of a king, first and foremost. Your linguistic, ethnic, religious, and other affiliations were secondary. It’s strange how, when people think of the kingdom period of history, they think only in terms of what the ruling classes did and had. Even though, if you were born then, the chances were 98% you’d be a simple peasant who owned nothing, knew nothing beyond what his betters told him, and sent most of his surplus production to his rulers. But, again, the gradual accumulation of capital and knowledge made the next step possible: the Industrial Revolution.

    The Industrial Revolution and the End of the Nation-State

    As the means of production changed, with the substitution of machines for muscle, the amount of wealth took a huge leap forward. The average man still might not have had much, but the possibility to do something other than beat the earth with a stick for his whole life opened up, largely as a result of the Renaissance.

    Then the game changed totally with the American and French Revolutions. People no longer felt they were owned by some ruler; instead they now gave their loyalty to a new institution, the nation-state. Some innate atavism, probably dating back to before humans branched from the chimpanzees about 3 million years ago, seems to dictate the Naked Ape to give his loyalty to something bigger than himself. Which has delivered us to today’s prevailing norm, the nation-state, a group of people who tend to share language, religion, and ethnicity. The idea of the nation-state is especially effective when it’s organized as a “democracy,” where the average person is given the illusion he has some measure of control over where the leviathan is headed.

    On the plus side, by the end of the 18th century, the Industrial Revolution had provided the common man with the personal freedom, as well as the capital and technology, to improve things at a rapidly accelerating pace.

    What caused the sea change?

    I’ll speculate it was largely due to an intellectual factor, the invention of the printing press; and a physical factor, the widespread use of gunpowder. The printing press destroyed the monopoly the elites had on knowledge; the average man could now see that they were no smarter or “better” than he was. If he was going to fight them (conflict is, after all, what politics is all about), it didn’t have to be just because he was told to, but because he was motivated by an idea. And now, with gunpowder, he was on an equal footing with the ruler’s knights and professional soldiers.

    Right now I believe we’re at the cusp of another change, at least as important as the ones that took place around 12,000 years ago and several hundred years ago. Even though things are starting to look truly grim for the individual, with collapsing economic structures and increasingly virulent governments, I suspect help is on the way from historical evolution. Just as the agricultural revolution put an end to tribalism and the industrial revolution killed the kingdom, I think we’re heading for another multipronged revolution that’s going to make the nation-state an anachronism. It won’t happen next month, or next year. But I’ll bet the pattern will start becoming clear within the lifetime of many now reading this.

    What pattern am I talking about? Once again, a reference to the evil genius Karl Marx, with his concept of the “withering away of the State.” By the end of this century, I suspect the US and most other nation-states will have, for all practical purposes, ceased to exist.

    The Problem with the State—And Your Nation-State

    Of course, while I suspect that many of you are sympathetic to that sentiment, you also think the concept is too far out, and that I’m guilty of wishful thinking. People believe the state is necessary and—generally—good. They never even question whether the institution is permanent.

    My view is that the institution of the state itself is a bad thing. It’s not a question of getting the right people into the government; the institution itself is hopelessly flawed and necessarily corrupts the people that compose it, as well as the people it rules. This statement invariably shocks people, who believe that government is both a necessary and permanent part of the cosmic firmament.

    The problem is that government is based on coercion, and it is, at a minimum, suboptimal to base a social structure on institutionalized coercion. Let me urge you to read the Tannehills’ superb The Market for Liberty, which is available for free, download here.

    One of the huge changes brought by the printing press and advanced exponentially by the Internet is that people are able to readily pursue different interests and points of view. As a result, they have less and less in common: living within the same political borders is no longer enough to make them countrymen. That’s a big change from pre-agricultural times when members of the same tribe had quite a bit—almost everything—in common. But this has been increasingly diluted in the times of the kingdom and the nation-state. If you’re honest, you may find you have very little in common with most of your countrymen besides superficialities and trivialities.

    Ponder that point for a minute. What do you have in common with your fellow countrymen? A mode of living, (perhaps) a common language, possibly some shared experiences and myths, and a common ruler. But very little of any real meaning or importance. To start with, they’re more likely to be an active danger to you than the citizens of a presumed “enemy” country, say, like Iran. If you earn a good living, certainly if you own a business and have assets, your fellow Americans are the ones who actually present the clear and present danger. The average American (about 50% of them now) pays no income tax. Even if he’s not actually a direct or indirect employee of the government, he’s a net recipient of its largesse, which is to say your wealth, through Social Security and other welfare programs.

    Over the years, I’ve found I have much more in common with people of my own social or economic station or occupation in France, Argentina, or Hong Kong, than with an American union worker in Detroit or a resident of the LA barrios. I suspect many of you would agree with that observation. What’s actually important in relationships is shared values, principles, interests, and philosophy. Geographical proximity, and a common nationality, is meaningless—no more than an accident of birth. I have much more loyalty to a friend in the Congo—although we’re different colors, have different cultures, different native languages, and different life experiences—than I do to the Americans who live down the highway in the trailer park. I see the world the same way my Congolese friend does; he’s an asset to my life. I’m necessarily at odds with many of “my fellow Americans”; they’re an active and growing liability.

    Some might read this and find a disturbing lack of loyalty to the state. It sounds seditious. Professional jingoists like Rush Limbaugh, Sean Hannity, Bill O’Reilly, or almost anyone around the Washington Beltway go white with rage when they hear talk like this. The fact is that loyalty to a state, just because you happen to have been born in its bailiwick, is simply stupid.

    As far as I can tell, there are only two federal crimes specified in the US Constitution: counterfeiting and treason. That’s a far cry from today’s world, where almost every real and imagined crime has been federalized, underscoring that the whole document is a meaningless dead letter, little more than a historical artifact. Even so, that also confirms that the Constitution was quite imperfect, even in its original form. Counterfeiting is simple fraud. Why should it be singled out especially as a crime? (Okay, that opens up a whole new can of worms… but not one I’ll go into here.) Treason is usually defined as an attempt to overthrow a government or withdraw loyalty from a sovereign. A rather odd proviso to have when the framers of the Constitution had done just that only a few years before, one would think.

    The way I see it, Thomas Paine had it right when he said: “My country is wherever liberty lives.”

    But where does liberty live today? Actually, it no longer has a home. It’s become a true refugee since America, which was an excellent idea that grew roots in a country of that name, degenerated into the United States. Which is just another unfortunate nation-state. And it’s on the slippery slope.

  • Is U.S. Or China The World's Economic Superpower?

    Since the collapse of the Berlin Wall in 1989, the world has had one undisputed economic superpower: the United States.

    But while the U.S. has enjoyed its moment in the sun, the balance of power has been slowly shifting towards the inevitable rise of China. It’s been a long time coming, but, as Visual Capitalist's Jeff Desjardins notes, China now has the manpower, influence, and economic might to compete at a similar level – and if you ask people around the world, they’ve certainly taken notice.

    Courtesy of: Visual Capitalist

     

    ECONOMIC SUPERPOWERS

    The United States and China combine for 39% of global GDP, 53% of estimated economic growth in the coming years, and 23% of the world’s population.

    But which one is perceived as the more dominant economic power?

    According to a recent survey by Pew Research Center, the vary wildly depending on the people and country surveyed. However, on an aggregate level that uses the results from the people in 38 countries surveyed, Pew determined that a median of 42% of people list the United States as the world’s leading economic power, while 32% name China as top dog.

    While the U.S. maintains a narrow lead in aggregate, things get much more interesting when we look at individual countries.

    DIFFERENT PERSPECTIVES

    Do America’s closest allies view it as the clear global superpower? What about the countries that neighbor China – surely, they must witness China’s economic might firsthand.

    Weirdly, the dominant perspectives in these places are not as obvious as one would think.

    More people living in Canada, Australia, and major European countries like France, Germany, Sweden, Spain, and the United Kingdom tend to view China as the global economic superpower.

    Meanwhile, the majority of people in South American and African countries see the United States as the world’s major economic power – and people in countries near China (such as South Korea, Japan, Philippines, Indonesia, and Vietnam) all tend to agree with that sentiment as well.

  • California Has 11 Counties With More Registered Voters Than Voting-Age Citizens

    Authored by Mike Shedlock via MishTalk.com,

    The Election Integrity Project California provides a list of 11 California counties that have more registered voters than voting-age citizens.

    In addition, Los Angeles County officials informed the project that “the number of registered voters now stands at a number that is a whopping 144% of the total number of resident citizens of voting age.”

    The Election Integrity Project California, Inc. has joined Judicial Watch, Inc., a non-partisan organization in Washington, D.C., in sending a National Voter Registration Act (“NVRA”) Section 8 notice of violation letter to California Secretary of State, Alex Padilla.

    NVRA Complaint Excerpts

    Dear Secretary Padilla:

     

    From public records obtained on the Election Assistance Commission (“EAC”) 2016 Election Administration Voting Survey (“EAVS”), and through verbal accounts from various county agencies, eleven (11) counties in California have more total registered voters than citizen voting age population (CVAP) calculated by the U.S. Census Bureau’s 2011-2015 American Community Survey. This is strong circumstantial evidence that California municipalities are not conducting reasonable voter registration list maintenance as mandated under the NVRA.

     

    This letter serves as statutory notice that Election Integrity Project California, Inc., a registered non-profit corporation in California, and Judicial Watch, Inc., will bring a lawsuit against you and, if appropriate, against the counties named in this letter, if you do not take specific actions to correct these violations of Section 8 within 90 days.

     

    The following information explains how we determined that your state and the counties named are in violation of NVRA Section 8 and the remedial steps that must be taken to comply with the law.

     

    1. Eleven California Counties Have More Total Registered Voters Than Citizen Voting Age Population

    Based on our review of 2016 EAC EAVS report, the 2011-2015 U.S. Census Bureau’s American Community Survey, and the most recent California total active and total inactive voter registration records, California is failing to comply with the voter registration list maintenance requirements of Section 8 of the NVRA. For example, a comparison of the 2011-2015 U.S. Census Bureau’s American Community Survey, and the most recent California active and inactive voter registration records shows there were more total registered voters than there were adults over the age of 18 living in each of the following eleven (11) counties: Imperial (102%), Lassen (102%), Los Angeles (112%), Monterey (104%), San Diego (138%), San Francisco (114%), San Mateo (111%), Santa Cruz (109%), Solano (111%), Stanislaus (102%), and Yolo (110%). Our own research shows that the situation in these counties is, if anything, worse than the foregoing data suggest. For example, we contacted Los Angeles County directly this past June. At that time, county officials informed us that the total number of registered voters now stands at a number that is a whopping 144% of the total number of resident citizens of voting age.

     

    2. The NVRA Requires You to Undertake Reasonable Efforts to Maintain Accurate Lists of Eligible Registered Voters

     

    3. Failure to Comply with NVRA Subjects You to Lawsuits and Financial Costs

    In passing the NVRA, Congress authorized a private right of action to enforce the provisions of the NVRA, including Section 8. Accordingly, private persons may bring a lawsuit under the NVRA if the violations identified herein are not corrected within 90 days of receipt of this letter.

     

    4. Avoiding Litigation

    We hope you will promptly initiate efforts to comply with Section 8 so that no lawsuit will be necessary. We ask you and, to the extent that they wish to respond separately, each county identified in this letter, to please respond to this letter in writing no later than 30 days from today informing us of the compliance steps you are taking. Specifically, we ask you to: (1) conduct or implement a systematic, uniform, nondiscriminatory program to remove from the list of eligible voters the names of persons who have become ineligible to vote by reason of a change in residence; and (2) conduct or implement additional routine measures to remove from the list of eligible voters the names of persons who have become ineligible to vote by reason of death, change in residence, or a disqualifying criminal conviction, and to remove noncitizens who have registered to vote unlawfully.

     

    5. Production of Records

    Finally, pursuant to your obligations under the NVRA,15 your office and, to the extent that they keep records separately from your office, each county named in this letter, should make available to us all pertinent records concerning “the implementation of programs and activities conducted for the purpose of ensuring the accuracy and currency” of California’s official eligible voter lists during the past 2 years. Please include these records with your response to this letter.

     

    I hope that the concerns identified in this letter can be resolved amicably. However, if we believe you do not intend to correct the above-identified problems, a federal lawsuit seeking declaratory and injunctive relief against you may be necessary. We look forward to receiving your prompt response.

     

    Sincerely,
    JUDICIAL WATCH, INC.
    s/ Robert D. Popper
    Robert D. Popper
    Attorney, Judicial Watch, Inc.

    Here is the full six-page NVRA Letter to California Secretary of State, Alex Padilla.

    Key Questions

    1. How bad is actual fraud vs. possible fraud?
    2. How much is purposeful fraud (letting noncitizens) on the voter rolls?
    3. How often do the dead and nonresidents vote?

  • "How Do We Get To The Next Crisis": An Interview With Raoul Pal And Julian Brigden

    With the dollar index now 10 points below its recent cycle highs from early January, nervous dollar bulls are starting to reevaluate their initial assumption that this would be a short-term pullback, and many are worried that this could be the start of a new secular bear market. In this week’s MacroVoices podcast, host Erik Townsend invited two of the show’s most popular guests, Raoul Pal and Julian Brigden, two well-respected analysts whose research commands high fees from institutional investors, to discuss complacent equity markets, the timing of the next correction and whether US interest rates will “back up” another 50 basis points.

    Townsend started by asking his guests to emphasize areas where they disagree to try and help listeners develop a better understanding of how the two analysts formulate their ideas about markets. But their discussion soon turned to the US dollar, which has been exasperating for the three longtime dollar bulls.

    Pal admitted that the dollar’s persistent weakness was beginning to make him nervous as he's been losing money on his dollar trades for a dangerous stretch. However, he believes the “underlying basis for why the dollar bull market should still be in play” is still there.

    Raoul: My view, like yours, is bullish dollars. Now, the problem is we’ve only had two dollar bull markets in history, one in the early 80s and one in the late 90s. So we have a very small data sample to look at the behavior of dollar bull markets. But what I did notice is no dollar bull market has had a weekly close down more than 10%. Once it goes more than 10% it’s generally a reversal. So that’s a kind of—not so much a line in the sand but a guideline for me.

     

     

    Now, we’re very much there now. We’re at 9.5% negative on a weekly basis. So it’s starting to make me concerned. There’s plenty of support levels around here as well. I use DeMark Indicators and they are counting towards a reversal. We know that the market positioning is very high. So for me it’s really crucial that the dollar does hold.

     

    I think the underlying case for why the dollar bull market should still be in play is still there. But what we need is some sort of change of sentiment within the market, whether it’s either a renewed belief in much faster rate rises in the US or it’s weaker economic growth. The dollar has a kind of smile where it rallies in either/or but falls when we’re in the Goldilocks phase, which we’ve been having recently. So I’m looking at that.

     

    I’m obviously nervous on my view because it has been going against me. And I’ve been in the trade for a long, long time now so, in Euro terms it’s about 148 and a half. So I’m now really finessing the idea does it move further than here?

     

    If we look at the previous dollar bull markets they tend to go much further, so it would tend to suggest there’s maybe another 15 or 20% upside in the dollar over time. I also look at—and something we’ll probably talk about later—the comparison between this dollar bull market and the dollar bull market leading into the 90s is remarkably similar. The pattern almost fits exactly. And that was the period going into 1999 where we had a correction in the dollar. At that time it went about 8.5% and then it turned around and started rallying as economic growth started falling and rates started easing off a bit. The Europeans at the time were raising rates still. And that whole scenario, we saw actually the dollar go much, much higher. And so that’s what I’m looking for. If I’m wrong, the world’s a different place, and there’s a number of trade opportunities from that. But I still remain a dollar bull but a nervous one.”

    Brigden says he remains a committed dollar bull, and sees the greenback rising in either one of two scenarios: the greenback will climb as equities and bond price fall in a "risk off rally" where the dollar becomes the haven asset. His other "risk on" case involves the dollar and stocks climbing alongside yieds. Hoping to avoid confusion with his fund's long-Europe trades, Brigden also said it's important to specify what exactly one means when they're talking about going long, or shorting the dollar.

    Julian: So I think one of the things—and I would concur pretty much with everything that Raoul said—I think one of the observations that I would make is that we’ve got to be a little bit careful of what we call a dollar. Because I think there’s a great temptation to look at some of the dollar indexes, in particular the Euro, and say, well, that’s indicative of what the dollar is doing. And I don’t really believe that is the case.

     

    I think we have been as a shop very bullish, and I think it was on your show, Erik, talking about how we saw the growth pickup coming in Europe. We were singularly bullish, the dollar backing end of April beginning of May, for our clients—sorry, singularly bullish, Euro end of April beginning of May, for our clients. And that was on the break of—we started to see break above 108 in the Euro. In actual fact, we just advocated 24 hours ago to start taking profits in those long Euro positions.

     

    But the point is that things like the DXY are essentially Euros. I mean, they’ve got some Swiss Francs in there, some Swedish Krona, and those are both pegged effectively to the Euro. So you really, I think you have to be a bit careful.

     

    I think what we’ve seen a lot this year is a repricing of the growth-inflation story in Europe. And I think that’s one of the reasons why the dollar has been underperforming. So I’m not quite as concerned about this 10% line in the sand. I think Raoul makes some good observations on that, but I would say that I think to get the next kicker we need to see some developments in story here in the US.

     

    We’re either going to have to see a—and this is my fear—we’re going to see a risk-off dollar rally. So you could have a situation where you can get a correction in bond markets and a correction in equities, and you can actually get the dollar rising because it’s a safe haven vehicle. Or we move into the latter half of the year, we get the Fed to start to shrink the balance sheet—I talked to your listeners about this before—I think that’s potentially a very bullish event. And particularly as well in early 2018 if we get the Trump tax cut.

     

    And my sources in D.C. tell me that still the odds—even though Trump doesn’t seem to be able to put his trousers on straight any day of the week—that the odds are somewhere around 65-70% that we get a tax deal. And it will definitively include repatriation. So I think, to me, I’m still in that structural bull environment for the dollar. But it—we may have quite a few months to wait still. And in that interim, I think what we’re doing is just repricing the Euro.”

    Turning the conversation to equities, Brigden said the US market is showing signs of a "classic bubble," meanwhile, rising interest rates and a hoped-for reversal in the dollar would remove two of the fundamental cases for being long equities.

    “Just because we’d had this incredibly good run, we think that a lot of the outperformance of the European stock market had been predicated on Euro weakness and also low bond yields. And both of those we think are in the process of changing. So we scaled back our belief in this European outperformance trade at this stage.

     

    I think the US equity market, we seem to be going through this game of rotation. And once again, to differentiate between markets, you know, in the same way that you can’t look at the dollar as just a single thing. What we’ve got is we’ve had up until the last week or so really very aggressive outperformance by a relatively narrow group of stocks. And those stocks—and you know we’ve talked about it in a number of publications—are increasingly looking like what I would call a classic bubble, and I think I’ve talked on your show about a classic bubble. It’s just chart pattern we look for, Erik.”

    Meanwhile, Pal said “there are opportunities” in equities among the ongoing changes in underlying market conditions:

    Raoul: Well, for me, I would like go back to the business cycle. You know, we looked at it last year and the business cycle weakened significantly, gained traction again, and bounced again. I mean, it’s done this a couple of times now. It’s tiresome, but it is what it is. Because I much prefer it when we get to the bottom of a cycle—we know when to invest etc. But waiting for this is slightly painful.

     

    But until economic growth weakens in any meaningful way, the equity market will continue to grind higher, volatility will remain low, until something changes. Now there is—and that’s structural volatility. There are opportunities—and I think Julien will talk a bit about this—for spikey volatility where there is an opportunity for a risk-off, which may not be pervasive and may not last very long. We won’t get anything that lasts long and we won’t get a structural shift in volatility until the business cycle weakens.”

    Pal also believes that interest rates could head back toward 3% in the medium term if President Donald Trump manages to pass tax reform.

    Raoul: Yeah, again, we need to talk about path and we need to talk about time horizons. So, for me, the path is—I’m less interested in—I think it’s a pretty benign environment for US rates. Yes, if Trump does manage to pass something in terms of economic stimulus in terms of some sort of fiscal policy or taxation, whatever it may be, then can rates back up a bit? Yeah.

     

    But, for me, I’m indifferent from a backup in rates from, you know, 225 where they are today at ten years, to, 275. Fifty basis points I don’t really care, because I think the risk reward is that, at the bottom of the business cycle—which we’ve identified has to come and will come within the next call it 18 months—the bottom of the business cycle should see bond yields at 50 basis points or even less. So that makes, even with a backup in yields to let’s say 275, it still makes it kind of a five for one risk reward.

     

    So, for me, I look through the speed bumps and look at the horizon. The horizon for me is 50 basis points at the bottom of the next business cycle, which has to come. Well, it doesn’t have to come, but the probability is extremely high that it comes in the next 18 months or two years.”

    Brigden said that while Pal may be correct, he wasn't comfortable with the time frame, saying it could take longer for bond yields to start moving higher again. But the more important question is when will we see the next market crisis commence, and how will we get there. That's the key topic of discussion in the next section:

    Julian: Yeah, it is Erik. I mean, it’s certainly in the next, shall we say, six months. And I think it’s—Raoul and I talk about this a lot and it’s one of the things that I think we believe is one of the strengths of the product: we tend to sort of chew through our stories. And our views are structurally very, very similar, but often our timelines are slightly different in how we get there.

     

    And my concern is I can ultimately see Raoul’s right, I mean, I think we could get another very nasty downturn. I think we could get a—you know, it’s hard to argue against the sort of structural deflationary trends or disinflationary trends that you see globally. The question is how do you get to that next crisis? Do you sort of go quietly into the night, and we walk in one day and ISM stands at 45, and everybody says, wow, QE doesn’t work. Or do you get there a different way?

     

    And my inclination is I believe we’ll actually get there a slightly different way. And at the moment the biggest risk that I see in markets is this chasm between, as I said, equity market pricing and bond pricing. And with that you can throw in Vol. And my biggest fear is that we’re going to get to the next crisis, not via immediate economic weakness, but actually via strength.

     

    And it isn’t so much in the US. As I said, I think there’s a chance that we get a burst of very aggressive activity. That’s sometime in 2018 if we get this Trump stimulus through.

     

    But when I look at the world, actually, my biggest fear—and I think this is interesting for US listeners of yours, because generally Americans don’t look too broadly at the rest of the world, they tend to be very focused certainly in financial networks, they tend to be very focused on what’s going on in the US—I actually think the biggest risk is Europe. I look at European growth models—and we’ve talked about this—but these things continue to strengthen. And the inflation picture, actually, I think is just really going to rip.

     

    And I was reading today how one of my peers was talking about how, for the fourth time, ECB’s going to have to upgrade their growth forecasts. Well, I just think they’re going to have to keep upgrading and upgrading their growth forecasts. And what I fear is that we’re on the cusp of a repeat of events that we saw in the spring of 2015. So, if you remember, at that point ECB had launched QE in the end of 2014, the DAX had ripped higher, and bund yields were locked at zero. And then, one day we walked in and the bund market finally said, screw this, I am repricing because what’s the point of holding bunds at zero, if the DAX is going through the stratosphere.”

    Both men are also worried about how shifting demographics, notably how the aging baby boomer generation will impact markets. With the largest-ever wave of retirees set to leave the workforce in the next few years, equity markets are facing a terrifying transition: When millions of buyers are, for the first time, forced to sell.

    You can listen to the podcast in full below:

     

     

  • 1400-Quake Swarm Prompts Question "If Yellowstone Erupted, What Would Be Left?"

    Yellowstone volcano has been struck by 1,400 earthquakes in recent weeks, leading to fears that the supervolcano is ready to blow and wipe out life on Earth.

    Seismic activity around the Yellowstone National Park in Wyoming, US, is not uncommon, but the heaviest swarm in half a decade has people very concerned.

    Since June 12, The Express reports there has been over 1,400 tremors in the region, and experts state that the swarm could go on for another month.

    However, seismologists state that there is nothing to be concerned about yet. Jamie Farrell at the University of Utah in Salt Lake City told New Scientist:

    “This is a large swarm but it is not the largest swarm we’ve recorded in Yellowstone.

     

    “Earthquake swarms are fairly common in Yellowstone.

     

    “There is no indication that this swarm is related to magma moving through the shallow crust.”

    Neverthelesss, following Montana’s biggest earthquake in 34 years, a 5.4 tremor in early June, which is on the same fault line as Yellowstone, and coupled with the swarm of quakes in the National Park, many are convinced that the supervolcano is now ready to blow.

    One local wrote on Twitter: “Earthquake in Bozeman = truly terrified Yellowstone volcano gonna go off.”

    So what would happen?

  • Is There A Relationship Between Coffee Shops And High Rent?

    Submitted by Priceonomics

    The American city runs on coffee. It’s served nearly everywhere, in cafes, restaurants, and corner stores, and it’s an ingrained part of most people’s morning routines. From the distinct taste, to the plethora of ways it can be prepared, to the benefits of caffeine, most people can find an aspect of the drink that they love.

    Though while it is common, getting coffee from a coffee shop rather than making it at home can be expensive. It is somewhat of a luxury item, especially if you consider the cost of fancy cafes serving espresso and pour over drinks (generally referred to as third wave coffee). For this reason, some measure of coffee shops could be useful as a barometer of city and neighborhood cost. Our hypothesis is that an area with a greater number of coffee shops would have a population with a larger disposable income, who can also afford more expensive housing.

    So, in US cities, are the number of coffee shops and rent prices connected in any way?

    We analyzed data from Priceonomics customer RentHop, an apartment listing site,  to explore that question. We have thousands of recent rental listings, which we used to find median rental prices. Then, by connecting that with business data from Datafiniti (also a Priceonomics customer) detailing coffee shops in each city, we were able to highlight the relationship between the two factors. We conducted analysis at the city level, but also completed a deep dive into neighborhoods in Manhattan, NYC. 

    At the Manhattan neighborhood level, high rent is positively correlated with coffee shops, but the results nuanced. Generally neighborhoods that were more expensive had a greater number of coffee shops per capita, especially around Midtown. Areas with large concentrations of office buildings have large numbers of coffee shops to cater to office workers (e.g. Midtown Manhattan, Financial District). Other neighborhoods are appealing specifically because they are more residential (and have fewer businesses) and can command higher rents (e.g. Stuyvesant Town-Cooper Village). 

    We also examined the number of coffee shops per capita in various cities across America. We found that generally, the number of coffee shops in a city did not correlate strongly with the median rental price, though there were some standout cities like San Francisco with a lot of coffee shops and high rent.

    ***

    For our first look at the data, we want to determine median rental prices for our cities of interest. In our analysis, we will examine cities where there is sufficient data about both rentals and businesses.

    Data source: RentHop

    New York City has the highest median rent while Atlanta has the lowest. This follows what we would expect, with coastal cities with higher population densities being the most expensive.

    Within these cities, we also need to count the number of coffee shops and cafes. Restaurants or corner stores that also serve coffee were not included.

    Data source: RentHop

    Already we can see that our rankings are very similar to what we had for median rent. New York City is first with over 1,600 coffee shops. The next in our list is San Francisco with 650.

    Cities that are larger in general will tend to have more of any kind of business. By adjusting for population, calculating number of coffee shops per 100K residents, we can control for this fact. 

    Data source: RentHop

    Washington D.C. and San Francisco have the greatest number of coffee shops per capita. Los Angeles has the fewest. New York, which had the greatest absolute number of coffee shops, now sits at the middle of the pack.

    Now we will take the two measures, coffee shops per capita and median rent, and plot them together to visualize the relationship.

    Data source: RentHop

    Overall, we do not see a clear trend supporting the relationship between coffee shops and rent.  We are only looking at seven rental markets so additional research would be necessary to definitely prove the relationship between coffee and rent.

    We do, however, have a rich set of data specifically for Manhattan in New York City. Manhattan is divided into 28 Neighborhood Tabulation Areas (NTAs) by the city government. We will group the business and rental data into these geographic areas and complete a similar analysis. 

    Now at a more granular level, will we see a clearer correlation between coffee shops and rent prices? Again, our first step is to list median rental prices.

    Data source: RentHop

    The area of SoHoTriBeCaCivic CenterLittle Italy has the most expensive median rent. This area is one of the trendiest, with many expensive bars, restaurants, galleries, and boutique stores. Additionally due to history of development in Manhattan, the residential buildings are much smaller, increasing the pressure on price. Marble HillInwood, at the very northern tip of Manhattan and across from the Bronx, is the least expensive. Inwood once had the highest crime rate in Manhattan, but recently has seen a large decrease in crime consistent with New York City overall. It also has a lower median income than most neighborhoods in

    We have a map to help visualize the differences in rent. Neighborhoods were split into rent quintiles (five equal sized groups) based on prices.

    Data source: RentHopGrey areas do not have sufficient data for analysis

    We can see that the areas of high rent are concentrated around the middle of the island especially near Central Park as well as the West Village area.

    Next we will look at coffee shops in each NTA. How many coffee spots does each neighborhood have:

    Data source: RentHop

    Midtown-Midtown South has the greatest number of coffee shops. It has close to double the number of shops as SoHo-TriBeCa-Civic Center-Little Italy and Hudson YardsChelseaFlatironUnion Square. These areas with many coffee shops either the primary centers of business in the city or areas with lots of shopping and dining (for tourists). Several neighborhoods have 10 or fewer shops. There are a few possible reasons for their low ranking including being a smaller size or having a lower proportion of business in the area. Additionally many of these are neighborhoods with lower incomes generally, which seems like a plausible explanation but cannot be proven from this analysis.

    Again we will map this data to help visualize the differences. Similar to the last map, neighborhoods have been placed into quintiles based on the number of coffee shops.

    Data source: RentHopGrey areas do not have sufficient data for analysis

    Again we see similar concentrations of the neighborhood groups. More coffee shops tend to be around Midtown and the lower-west end Manhattan.

    It is clear from the maps of Manhattan though that each neighborhood is a different size. We can also confirm that they have different sized populations. To accurately compare each, we must account for the population in our calculation. We will do this by finding coffee shops per 100K residents, just as we did earlier.

    Data source: RentHop

    Several of the same neighborhoods are at the top and bottom of our list. The top neighborhood again is Midtown-Midtown South. It has so many more coffee shops per capita than any other neighborhood due to it’s large commuter population and tourist population. Two of the other top four neighborhoods, Battery Park City-Lower Manhattan and Turtle Bay-East Midtown, are similar in nature and comprise areas around Grand Central Terminal and the Financial District.

    With our map of Manhattan, we can see if a similar pattern appears in our neighborhood locations

    Data source: RentHopGrey areas do not have sufficient data for analysis

    In this map, there is more of a clear gradient from the northern tip of Manhattan (neighborhoods with the fewest coffee shops per capita) towards the bottom (neighborhoods with the most coffee shops per capita). This makes sense as we have explained earlier many of the neighborhoods below central park are full of offices and destinations for tourists. The other neighborhoods are more residential in nature, with relatively fewer businesses.

    Finally, we will plot the relationship between coffee shops per capita and median rent to understand the relationship. We’ve labeled several neighborhoods to illustrate how different areas of Manhattan fall on the spectrum of coffee vs. rent.

    Data source: RentHop

    This time the relationship, while still not linear, has a generally positive direction. A few notable outliers include Midtown-Midtown South and Stuyvesant Town-Cooper Village. 

    Midtown-Midtown South has more coffee shops per capita than any other neighborhood. As stated earlier, it is largely made up of office towers and tourist destinations. Most of the daytime population is made of up commuters coming into the city from outlying areas (especially NY state, NJ, and CT). This is also where Times Square and other areas where visitors to the city flock. It is most likely that these coffee shops are catering toward these crowds in addition to regular residents and therefore need more locations to keep up with demand.

    A neighborhood with very few neighborhoods despite being one of the most expensive is Stuyvesant Town-Cooper Village, a private housing development built after World War II originally for veterans and their families. The area is almost entirely residential, featuring 110 buildings surrounded by public parks. It has become a very desirable neighborhood due to the amenities and location, therefore quite expensive. As it was planned to be entirely residential, the neighborhood does not have the same mix of commercial and residential space as the rest of NYC. This artificially creates a shortage of coffee shops that we do not account for in our hypothesis.

    ***

    It appears that the relationship is somewhat clearer for neighborhoods than cities overall. At the neighborhood level in Manhattan, there is a positive correlation between coffee shops and rental prices.

  • Dead.Market.Walking

    While all eyes have been focused on the incessant rise in the price-weighted farce known as The Dow Jones Industrial Average, a funny thing happened in the 'real' market…

    The S&P 500 went nowhere… 2474, 2473, 2473, 2470, 2477, 2478, 2475, 2472, 2470, 2476, 2478, 2472, 2477…

     

    How unusual is this? Simple – it's never, ever (in 90 years of S&P history) happened before…

     

    Since The Fed (et al.) began tinkering (red shaded box), markets have slowly (and now quickly) died.

    Perhaps even more worrisome, Investors are positioning for more of the same…

    There has never been a bigger speculative position tilted towards still-lower volatility…ever!

  • Only Ten Years After The Last Financial Crisis the Banks Are At It Again

    Via Jesse's Cafe Americain blog,

    Apparently the Banks have been lobbying heavily, and expending significant amounts of money again, leaning on their Congressmen and pressuring regulators, saying that their capital standards need to be relaxed so that they can make more loans to stimulate economic growth.

    But that, according to the FDIC Vice-Chairman, is utter nonsense.

    Hoenig, who was a high-ranking Federal Reserve official during the crisis, cautioned Senate Banking Committee Chairman Mike Crapo and the committee's senior Democrat, Sherrod Brown, "against relaxing current capital requirements and allowing the largest banks to increase their already highly leveraged positions."

     

    Using public data to analyze the 10 largest bank holding companies, Hoenig found they will distribute more than 100 percent of the current year's earnings to investors, which could have supported to $537 billion in new loans.

     

    On an annualized basis they will distribute 99 percent of net income, he added.

     

    He added that if banks kept their share buybacks, totaling $83 billion, then under current capital rules they could boost commercial and consumer loans by $741.5 billion.

     

    'While distributing all of today’s income to shareholders may be received well in the short run, it can undermine their future returns and weaken the growth outlook for the larger economy,' he wrote."

     

    – Reuters, Payouts, not capital requirements, to blame for fewer bank loans: FDIC vice chairman

    The Banks are spending a substantial amount of their current income on dividends to shareholders and large stock buyback programs designed to increase their share prices.

    The chart above shows in the first column the almost shocking Payout Ratios being maintained by some of the Banks.

    In the second column there is an estimate of how many more loans the Banks could have made at current capital requirements if they had not spent their cash buying back their own shares.

    Since Bank managers are personally heavily rewarded on the share price of the Banks through bonuses and share options, the cause of this is clear.

    There has been insufficient reform in the Banks.  Lending and basic banking would better function like a utility, with much more efficient and effective levels of risk management.

    Basic banking including loans and deposits ought not to be an adjunct or cover for the kinds of speculation and gambling with other people's money that led to the last financial crisis that brought the global economy to its knees.

    This problem was addressed by Glass-Steagall and functioned very well, keeping the banking system essentially sound for almost seventy years, until it was repealed under the Clinton Administration in conjunction with a Congress all too willing to sacrifice the interests of their voters to Big Money.

    *  *  *

    "If at times his [Andrew Jackson's] passionate devotion to this cause of the average citizen lent an amazing zeal to his thoughts, to his speech and to his actions, the people loved him for it the more. They realized the intensity of the attacks made by his enemies, by those who, thrust from power and position, pursued him with relentless hatred. The beneficiaries of the abuses to which he put an end pursued him with all the violence that political passions can generate. But the people of his day were not deceived. They loved him for the enemies he had made.

     

    Backed not only by his party but by thousands who had belonged to other parties or belonged to no party at all, Andrew Jackson was compelled to fight every inch of the way for the ideals and the policies of the Democratic Republic which was his ideal.

     

    An overwhelming proportion of the material power of the Nation was arrayed against him. The great media for the dissemination of information and the molding of public opinion fought him. Haughty and sterile intellectualism opposed him. Musty reaction disapproved him. Hollow and outworn traditionalism shook a trembling finger at him. It seemed sometimes that all were against him—all but the people of the United States.

     

    Because history so often repeats itself, let me analyze further. Andrew Jackson stands out in the century and a half of our independent history not merely because he was two-fisted, not merely because he fought for the people's rights, but because, through his career, he did as much as any man in our history to increase, on the part of the voters, knowledge of public problems and an interest in their solution. Following the fundamentals of Jefferson, he adhered to the broad philosophy that decisions made by the average of the voters would be more greatly enduring for, and helpful to, the Nation than decisions made by small segments of the electorate representing small or special classes endowed with great advantages of social or economic power.

     

    He, like Jefferson, faced with the grave difficulty of disseminating facts to the electorate, to the voters as a whole, was compelled to combat epithets, generalities, misrepresentation and the suppression of facts by the process of asking his supporters, and indeed all citizens, to constitute themselves informal committees for the purpose of obtaining the facts and of spreading them abroad among their friends, their associates and their fellow workers."

     

    Franklin D. Roosevelt, Jackson Day Dinner Address, Washington, D.C.
    January 8, 1936

    As an aside, I find it telling that the current crop of Democratic Party plutocrats want nothing to do with the policies of Jackson or Roosevelt.

    I think the reasons are obvious. I would like to think that they are merely mistaken.  But it is clear that they are serving the masters that they love the most.  As for the Republicans, they have long ago betrayed their roots and become the servants of Big Business, and seem to be beyond all hope of reform.

  • The Real Dumb Money: Retail Investors Have Outperformed Hedge Funds By 300%

    There seems to be an inverse relationship between an investor’s purported level of sophistication and their returns in recent years. At least, that’s what one might assume when comparing the historical aggregate return of US households with that of the hedge funds community.

    Using data from the Federal Reserve, Gaurav Chakravorty and Amit Sinha explained in a column for MarketWatch how since 2003, the average American household has earned a greater return on investment than the average hedge fund.  What accounts for this achievement gap? The two authors explain that households typically don’t invest their wealth like “day traders” or “return chasers.”

    They operate more like “skilled portfolio managers” who “appear to be rational actors.” In other words, they rarely adjust their portfolios.

    Households also outperformed hedge funds while taking on a similar level of risk.

    “We estimate that since 2003, the average household has earned more than 4.5% a year from their investments. While 4.5% annual return may sound low at first glance, especially given that the S&P 500 SPX, +0.19% returned about 9.5% over the same period, U.S. households achieved these returns by taking half the risk of S&P 500.

     

    Furthermore, these returns exceed the returns from a diversified hedge fund index, which earned just 1.6% a year.”

    The outperformance in household returns is due, in part, to their savings rate, which allows to build on their investments, and higher rates of diversification.

    “Households continued to steadily add to their savings over the study period, and their investments were evenly spread across many different assets — such as stocks, bonds, real estate and pensions — as opposed to being concentrated in a single asset, such as real estate.”

    While real-estate has historically comprised nearly a third of household wealth, that dynamic has changed since the beginning of the bull market in 2009. Since the crisis, stock-market gains have been primarily responsible for repairing household balance sheets, instead of real estate.

    “Real estate hasn’t driven the repairing of household balance sheets. In the run-up to the 2008 financial crisis, real estate was one of the largest contributors to household wealth and represented about 32% of total wealth. After the financial crisis, real estate has been hovering close to the lowest historical levels at around 24% of total assets.”

    While this might sound surprising to some, the reason is because stricter lending standards adopted since the crisis have made it more difficult for people to become homeowners. Meanwhile, an increasing number of homes are being purchased by foreigners, or by real-estate partnerships.

    “Initially, this may appear surprising, given the run-up in real-estate prices in most parts of the country. However, a further analysis shows most households haven’t participated in the latest boom. Bank lending standards are stricter than before, with over 60% of new mortgages going to borrowers with excellent credit scores, as compared with only 25% before the 2008 financial crisis. In addition, an increasing portion of homes are being purchased by foreign buyers and real estate partnerships.

     

    When we combine these factors with one of the strongest bull markets since 2009, it’s why the stock market has become a bigger driver of household wealth creation than real estate.”

    Going forward, mom and pop investors should be careful about managing their risk exposure, as a growing share of their wealth is being bound up with equity prices. At 35% of total assets, household allocation to stocks are near historic highs. Before the dot-com bubble, stocks represented less than 30% of total assets, but peaked at 38% during the height of the dot-com bubble.

    One reason for this is the change in how we save for retirement, with 401(k)s and private plans taking the place of defined-benefit contribution programs.

    “…household wealth is exposed to stock markets through pensions and entitlements, as 401(k)s, IRAs, and other defined-contribution retirement programs tend to have equity allocations. A household may even be indirectly exposed to the stock market in defined-benefit pension plans tied to final salaries, as the provider of pensions (the employer) might be invested in stocks.”

    Many households are also falling far short of the savings rates needed to fund their retirement. The Center for American Progress estimates that almost 70% of near-retirement households are at risk of not having enough money saved for retirement. Unfortunately for those somewhat further away from retirement, being saddled with $1.4 trillion in aggregate student debt isn’t a great start, especially when one factors in stagnant wage growth and rising rents.

    Maybe it's time the 2 and 20 "smart money" crowd gave mom and pop some AUM to manage: that way the former can finally "outperform" a benchmark, while the latter could actually have money for retirement.

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Today’s News 5th August 2017

  • Paul Craig Roberts Warns "Trump Will Now Become The War President"

    Authored by Paul Craig Roberts,

    President Trump has been defeated by the military/security complex and forced into continuing the orchestrated and dangerous tensions with Russia. Trump’s defeat has taught the Russians the lesson I have been trying to teach them for years, and that is that Russia is much more valuable to Washington as an enemy than as a friend.

    Do we now conclude with Russia’s Prime Minister Dmitry Medvedev that Trump is washed up and “utterly powerless?”

    I think not.

    Trump is by nature a leader. He wants to be out front, and that is where his personality will compel him to be. Having been prevented by the military/security complex, both US political parties, the presstitute media, the liberal-progressive-left, and Washington’s European vassals from being out front as a leader for peace, Trump will now be the leader for war.

    This is the only permissible role that the CIA and armaments industry will permit him to have.

    Losing the chance for peace might cost all of us our lives. Now that Russia and China see that Washington is unwilling to share the world stage with them, Russia and China will have to become more confrontational with Washington in order to prevent Washington from marginalizing them. Preparations for war will become central in order to protect the interests of the two countries. The situation is far more dangerous than at any time of the Cold War.

    The foolish American liberal-progressive-left, wrapped up as they are in Identity Politics and hatred of “the Trump deplorables,” joined the military/security complex’s attack on Trump. So did the whores, who pretend to be a Western media, and Washington’s European vassals, not one of whom had enough intelligence to see that the outcome of the attack on Trump would be an escalation of conflict with Russia, conflict that is not in Europe’s business and security interests.

    Washington is already raising the violence threshold. The same lies that Washington told about Saddam Hussein, Gadaffi, Assad, Iran, Serbia and Russia are now being told about Venezuela. The American presstitutes duly report the lies handed to them by the CIA just as Udo Ulfkotte and Seymour Hersh report. These lies comprise the propaganda that conditions Western peoples to accept the coming US coup against the democratic government in Venezuela and its replacement with a Washington-compliant government that will permit the renewal of US corporate exploitation of Venezuela.

    As the productive elements of American capitalism fall away, the exploitative elements become its essence. After Venezuela, there will be more South American victims. As reduced tensions with Russia are no longer in prospect, there is no reason for the US to abandon its and Israel’s determination to overthrow the Syrian government and then the Iranian government.

    The easy wars against Iraq, Libya, and Somalia are to be followed by far more perilous conflicts with Iran, Russia, and China

    This is the outcome of John Brennan’s defeat of President Trump.

    *  *  *

    UPDATE: The escalation of the conflict with Russia has begun. US vice president Mike Pence made false allegations against Russia yesterday (Aug. 2) in Montenegro designed to panic Montenegrins into joining NATO. The two-decade march of NATO eastward despite Washington’s promise to the contrary, surely has taught Russia that no agreement with Washington can ever be trusted. So why does Russia continue to seek agreements with Washington?

  • Gamblers Laundered $50M In Stolen Bangladesh Reserves For "Elite North Korean Hackers" By Playing Baccarat

    More than a year after a mysterious group of hackers infiltrated the SWIFT system for interbank payments and stole $100 million from the Central Bank of Bangladesh’s custody account at the New York Fed, Filipino authorities have been unable to recover $81 million that seemingly disappeared into the Manila air.

    After being transferred to four accounts set up with fake credentials at the Jupiter Street Makati City, branch of Rizal Commercial Banking Corp (RCBC) in the Philippines, the money eventually found its way to an FX broker called Philrem, which split $50 million between two casinos and the remaining $31 million was delivered to a “Weikang Xu” in cash.

    Not much is known about what happened to the $31 million after it was moved to Manila. But after receiving unreleased documents from the Philippines Senate investigation, Bloomberg has published the most comprehensive account to date explaining how two casino junket operators helped launder $50 million in the VIP rooms of Manila’s casinos by betting on games of Baccarat.

    According to Bloomberg’s anonymous sources, North Korea and its “elite” hacking squad “the Lazarus Group” are believed to be behind what was the largest cyberheist in history.

    The two men were Chinese nationals Ding Shizue and Gao Shuhua, who ran a business bringing high-roller clients to casino VIP rooms in Manila and Macau. Once the money was transferred into accounts at the two casinos, the two men led a group of “gamblers” whose only job was to make bets, declare their winnings, and take the newly laundered money away in a briefcase. According to the Filipino Senate report cited by Bloomberg, the men were allowed to play on for weeks even after Bangladeshi authorities had asked their counterparts in Manila for help. All the money was withdrawn before authorities could make a single arrest.

    “Just a few days after the theft, Bangladesh Bank officials asked their Philippine counterparts for help. Yet the gamblers were allowed to play on for weeks, according to reports by the casino’s parent company, Bloomberry Resorts Corp., and the Philippine Senate Committee on Accountability of Public Officers and Investigations.

     

    Even after the remaining funds were frozen, no charges were filed against Ding, Gao, or the players with them, so Philippine police didn’t make any arrests, says Sergio Osmeña III, a former senator who last year was a member of the inquiry panel. “They waited until it was too late,” he says.”

    What happened next is a mystery. The Senate investigators were unable to trace the cash; and Ding and Gao reportedly left the Philippines without a trace, though Gao was later arrested by Chinese authorities.

    “What Ding and Gao did with the loot remains unknown. That’s the point, of course: You want to conceal the money’s criminal origins and then stir it into the rivers of legitimate cash that course around the world every day: $60-odd million here, a few million there. It adds up. PricewaterhouseCoopers LLP says money laundering may total $2 trillion a year worldwide—an amount roughly equivalent to the market for online shopping.

     

    Like the money, Ding and Gao left the Philippines without a trace. (Osmeña says customs authorities have no record of the duo’s departure.) Gone too, it seemed, was any chance that ­Bangladesh, the Philippines, or the U.S. would find the funds.”

    Authorities believe the money is probably sitting in the North Korean central bank. Because the North conducts 90% of its trade with China, it frequently suffers from shortages of hard currency. US intelligence agencies believe it occasionally dabbles in cybercrime to help pad its reserves.

    “Some or all of it may have found its way to North Korea. The FBI is examining the totalitarian state’s link to the hack, ­according to two officials with direct knowledge of the investigation.”

    One plausible scenario is that Ding and Gao somehow traveled undetected to Macau and deposited the cash in accounts secretly controlled by the North Korean government.

    “Ding and Gao’s familiarity with Macau would have been useful to North Korean hackers, says Steve Vickers, a former head of the Hong Kong Police Force’s Criminal Intelligence Bureau who now runs an eponymous risk consulting company. That, he says, is because Macau was traditionally one of the few locations where the Pyongyang government has managed to maintain covert bank accounts and interact with the global financial system. (­Priscilla Fong, a spokeswoman for Macau’s Financial Intelligence Office, declined to comment on this case or to respond to questions about the region’s links to North Korea.)

    The documents reviewed by Bloomberg revealed that the perpetrators began planning for the cyberheist months in advance.

    “Months before Ding, Gao, and their baccarat players showed up in Manila, several bank accounts that would later receive the Bangladeshi funds appeared on the books at the Jupiter Street branch of Rizal Commercial Banking Corp. in MetroManila, according to testimony at the Senate hearings. At the hearings, Kim Wong, president of Eastern Hawaii Leisure, which operates a number of VIP rooms in Manila-area casinos, including the Solaire, testified that he’d set up the RCBC accounts along with Ding’s business partner, Gao, and the Jupiter branch manager at the time, Maia Deguito.”

    "According to the Senate committee report, Ding, Gao, and Deguito ginned up the accounts using fake names, fake addresses, and fake declarations that Deguito had met the account ­holders in person and confirmed their identities. Assuming the Senate report got the facts right – there was contradictory testimony – the stage was set for laundering what the hackers hoped would be almost $1 billion. “If you have a bank employee who is in connivance with creating these nonexistent people in the first place, it’s easy to launder,” says Vencent Salido, head of investigations at the Philippine government’s Anti-Money Laundering Council, which is leading the local investigation into the theft.”

    Maia Deguito, the branch manager responsible for opening the accounts, says she was instructed to do so by her superiors. Her superiors, in turn, have sued her for defamation and accused her of willfully opening fraudulent accounts.

    Maia Deguito

    “For her part, Deguito said she’d been acting on instructions from RCBC bosses. That assertion netted her a libel claim by Lorenzo Tan, the former chief executive officer of RCBC, who also sued Deguito’s lawyer. “Based on our investigation, Ms. Deguito acted alone with the help of some of her co-workers and subordinates at the Jupiter Branch which she headed,” RCBC said in an emailed statement. “Her actions were inimical to her job and against RCBC’s policies, which resulted in her termination and the filing of cases against her.” The bank said it’s confident the Philippine Department of Justice investigation will find that senior executives had no knowledge of Deguito’s actions.”

    The Philippines investigation into Ding and Gao is ongoing, and authorities in the US and elsewhere are investigating a “China connection” as well. Meanwhile, the Philippines justice department has indicted Deguito and the owners of FX broker Philrem for their involvement, but dropped the case against another individual who says he was tricked into helping Ding and Gao move some of the stolen funds.

    But now that more than a year has passed, and the evidence trail has probably gone cold, finding definitive proof to substantiate the claims about North Korea’s involvement is unlikely – even if the operation was supervised by Kim Jong Un himself.
     

  • Retired Green Beret Warns: "North Korea Can Deliver An EMP Weapon Dead Center Over America"

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

    Most are aware by now that North Korea has tested (successfully) another ICBM missile, and its nuclear ambitions are more concrete by the day.  The mainstream media and the Obama administration are the creators of the public’s skepticism and denial regarding North Korea’s capabilities.  The Obama administration consistently and deliberately downplayed the true strengths and capabilities of North Korea over an eight-year period.  Such a downplay was further enabled by key press conferences in which members of the U.S. military’s command structure (specifically those serving in the Pentagon) were made to parrot the administration’s denial.

    By “pulling Pentagon officials out” and having them categorically deny North Korea’s capabilities, it set the tempo to create a false narrative that Obama and his minions would champion throughout the eight years.  Pentagon officials (Admirals and Four-star Generals) were periodically “rotated” into these press pools to downplay the abilities of North Korea to launch a nuclear missile against the United States.

    This obfuscation, orchestrated by Obama and parroted by those general officers who were about to retire in a couple of years was a precise and deliberate weakening of the United States’ defensive stance against a nation that declared its intentions to strike her.

    All the experts on the subject were marginalized and labeled either as “crackpots,” or just scoffed at with their opinions relegated to page A-14, just above a coupon for “Captain Crunch” and at the bottom of the page of the newspaper.  The public bought it.  They swallowed the pill offered by the government-media complex, and in their own narcissistic hubris, discounted the efforts of a “backwards” country such as North Korea to send a nuke to the U.S.

    Not anymore.

    Now the media is grudgingly, painfully admitting what cannot be hidden: North Korea has more than enough capability to hit the United States.  All of it.  The North Korean ICBM test on Friday, July 29 proves they can strike the U.S. anywhere.  Here you go:

    “Looks like it pretty much can get to New York, Boston, and probably falls just short of Washington [DC].  If those numbers are correct, the missile flown on a standard trajectory, the missile would have a range of 10,400 km (6,500 miles), not taking into account the Earth’s rotation.  However, the rotation of the Earth increases the range of missiles fired eastward, depending on their direction.  It is important to keep in mind that we do not know the mass of the payload the missile carried on this test.”

     

    -David Wright, Senior Scientist, Global Security Program, Union of Concerned Scientists to CNBC

    Keep this sentence in mind from the excerpt: “However, the rotation of the Earth increases the range of missiles fired eastward, depending on their direction.” 

    Such proves they have at least enough “juice” to deliver a warhead containing an EMP weapon dead center over the continental United States, and can strike the U.S. anywhere.

    Dr. Peter V. Pry, formerly an analyst with the CIA, and now the head of the Committee to Assess EMP (Electromagnetic Pulse) Threats against the U.S., is the foremost expert on such threats and briefs Congress on them annually.  Dr. Pry has assured Congress countless times that North Korea not only has miniaturization capabilities regarding nuclear warheads, but also has that capability regarding the deployment of an EMP weapon.  I strongly urge you to read his writings and articles.

    Now-retired Congressman Roscoe Bartlett (R, MD) practically hopped up and down during both the Bush Jr. and Obama administrations to try and initiate action by the government to protect the grid and infrastructure from an EMP attack.  To no avail, all his pleadings… substantiated by piles of research documents and assessments – pure evidence – fell on deaf ears, and he has since retired and withdrawn from mainstream society.  Several general officers over the past years (such as General Curtis Scapparotti, for example) went “against the grain” during the Obama years and declared that North Korea did indeed possess EMP weapons, miniaturization capabilities, and ICBM’s.  Their declarations also went unheeded.

    Now, just as Obama planned it, we are “behind the power curve,” and vulnerable: North Korea has had years to prepare, in the face of mere “sanctions” or other “paper-tiger” rumblings.  Through our complacency, they have been enabled to strike the U.S.  Along with the mothballing of TARS (Tethered Aerostat Radar System), the string of radar-equipped balloons along the Gulf Coast to add about ten minutes early warning time to our missile tracking capabilities. As SHTF Plan reportedTARS was taken out in 2013, at Obama’s direction.  North Korea has two satellites in orbit that each cross over the U.S. several times daily at 300 km, the optimal height for an EMP strike.

    Just as Obama planned it.

    The United States, South Korea, and Japan all equally assessed the North Korean launch on July 29th with the same capabilities.  President Trump said that he would take all necessary steps to ensure the security of the U.S. and its allies.  The nations (the U.S. included) have all declared the intention of more sanctions against North Korea.  More nonsense.  These two excerpts came from a Dailymail.com article by Cheyenne Roundtree and Gareth Davis for Mailonline that are interesting, if not “amusing” (from a cynical perspective).  Here’s the first, with the main point underlined:

    “[President] Donald Trump released a statement yesterday after the missile launch, saying: ‘North Korea’s test launch yesterday of another intercontinental ballistic missile – the second such test in less than a month – is only the latest reckless and dangerous action by the North Korean regime.”

    Yes, there you have it from the mouth of the President of the United States, confirming it was indeed and intercontinental ballistic missile (ICBM), and was indeed the second one that is confirmed.  Here is the second excerpt:

    “Washington and its allies have watched with growing concern as Pyongyang has made significant progress toward its goal of having all of the US within range of its missiles to counter what it labels as US aggression.  While there are hurdles, including building nuclear warheads to fit on those missiles and ensuring reliability, many analysts have been surprised by how quickly Kim Jong-Un has developed North Korea’s nuclear and missile programs.

    Well, along with interesting and amusing, let’s add infuriating to the list to describe these words from the excerpt:

    “Many analysts have been surprised.”

     

    “Significant progress toward its goal”

    Do you think those analysts will be surprised when, suddenly, all the lights and air conditioning in their offices go out and they’re in the dark on the 30th floor?  Or if not that, perhaps they’ll be surprised when they look out of their windows and see a nice blinding flash of light and a mushroom cloud?  Do you think either an EMP and/or a mushroom cloud over what was once an American city will prove that North Korea has made significant progress toward its goal?

    Sometimes valuable information comes from sources that might normally never see the light of day.  I found this comment on Steve Quayle’s website that may place things into perspective from a “grass roots” level.  Obviously, it is written by a mother of someone in the service, probably the U.S. Army.  Here it is, along with its citation:

    “Angel says:  Comment ID: 3722746    August 1, 2017 at 1:22 am

     

    “Wanted to give a heads up that the upcoming fight with North Korea is very real.  My child is a Combat Engineer stationed at the DMZ currently and they are readying for a fight.  They are doing things in that area that haven’t been done in 50 years.  Such as clearing mine fields.  They are awaiting orders to attack.  Get prepared now if you’re not already.  I have someone on the front line and I can tell you it’s getting bad.”

    Sometimes information from the average person will give you insights on things you will not hear in the mainstream media.  This woman’s comment is both simplistic and unsolicited, and anyone with more information who is in the area?  Your comments would be greatly appreciated.  Such comments can reveal (at least in part) what is taking place over there and is valuable, because there is no such thing as “grass roots” journalism anymore.  There are no more reporters to interview the “man on the street” or to cover things happening in foreign countries.  We must rely on what information we bring to one another and our wits to be able to recognize the valuable parts…pieces to the overall puzzle that present the big picture.

    Let’s once more examine the “flip” side of things.  We have a President who has not been able to accomplish much, and thus far has been railroaded by Congress and members of his own political party every day since being sworn in.  His popularity ratings are falling, and the midterm election campaigning is right around the corner.  What is the solution?  Why, the same as it was for Bush Jr. back in 2003.  War.  War is the solution, either false flagged/orchestrated by the U.S., or allowed to be initiated by North Korea.  War is the vehicle to create a cohesive bond and gain the support of the populace: nothing new here with this method.

    The cost, however, will be sustained by the population and not by those who initiated the conflict, whether North Koreans, Americans, or others.  The ones who initiate the hostilities will be safe in underground bunkers with food, water, medical supplies, and armed guards…funded by their “host” populations, who will be busily engaged in being vaporized and incinerated on the surface.  I close with the point that I have stood by all along, and exhort you to make the best possible choices and take actions for you and your family, while there’s still time to do so, in whatever way you can.  Now is the time to act, and not “one second after,” so to speak:

    The next world war will be initiated by an EMP weapon detonated over the United States, followed by a nuclear exchange and a war between conventional forces.

  • Vending Machines Are The Latest Threat To US Retailers

    US retailers just can’t catch a break.

    In a bid to undercut US-based brands, “fast fashion” purveyor Uniqlo announced this week that it will begin selling its clothes in vending machines, a common practice in Japan, where Uniqlo’s owner, Fast Retailing Co., is based. All told, the company plans to open 10 machines in and around New York City, Oakland and Houston, according to MarketWatch’s Ali Malito, who reported that brands are increasingly selling consumer goods like clothing out of vending machines as part of a “growing trend” as they “look for new ways to sell their goods" amid a flood of brick-and-mortar bankruptcies.

    “There’s no hassle,” consumer shopping expert Andrea Woroch told Malito. “You get what you want.”

    However, this latest wave of innovation in the retail space threatens to leave US firms flat-footed if the fail to quickly adapt, just like many now-dead companies who failed to anticipate the rise of Amazon.com and e-commerce more broadly.

    In the US, vending machines are a $7 billion-a-year business, although sales have been flat in recent years, according to industry-research group IBISWorld, as consumers increasingly prefer healthier snacks and beverages than the potato chips and soda that consumers typically associate with vending-machine sales. According to Euromonitor data cited by MarketWatch, the US vending-machine market is closer to $5 billion a year in sales, the third-largest behind No. 2 Spain ($8 billion) and No. 1 Japan ($26 billion).

    In recent years, vending machines have been popping up in the US that sell a range of nontraditional items, including guitar accessories, bike parts, Lego toys, caviar, pet food, umbrellas, socks, shoes, envelopes, cosmetics, gold and even – in the states where it has been legalized – marijuana, according to MarketWatch.

    “Food and beverages still make up most vending machine sales — each accounting for roughly one-third of sales — while movies and games made up 29% of the industry, followed by 6% for other products including electronics, magazines, toys, condoms, first-aid products and cosmetics, IBISWorld found. Still, food vending machines no longer just offer Pringles and pretzels. Sprinkles, a bakery in New York, has a “Cupcake ATM” for passersby in the mood for a treat, and another bakery, in Cedar Creek, Texas, has a vending machine for its full-sized pecan pies.”

    A “vending machine” for luxury cars opened earlier this year in Singapore. The “machine” is a revamped office building that allows wealthy collectors to pay in cash and drive off in their new car with minimal hassle. Luxury goods brands appear to be seizing on the vending-machine model more quickly than their downmarket peers, as MarketWatch explains…

    “Champagne company Moët and Chandon also has vending machines, which hold 320 mini-bottles of its champagne. The first such machine launched in London last year and they are now available in Las Vegas and New Orleans. Companies even sell cars through vending machines – there’s already one in Singapore automotive division of Alibaba Group-owned shopping site Tmall hopes to bring one to China — not to be confused with vending machines in cars, which Uber has introduced in partnership with tech startup Cargo.”

    As a gathering wave of brick-and-mortar closures and bankruptcies force brands to innovate, low-cost vending machines are looking increasingly attractive. However, Uniqlo must still find a way to surmount customer-service obstacles like allowing customers to try on clothes before buying, and enabling them to easily return their purchases.

    “Because it’s cheaper for companies to sell from a machine instead of paying for rent and employees, Woroch said the variety of machines will keep growing. But they aren’t always the best option for shopping. Using them takes away most of the customer service element, since there’s no one to ask for help in sizing and product information, and no easy way to try or return the item back to the vending machine, Woroch said. And even with online shopping becoming more of a go-to option for consumers, shoppers still want that extra help, which is why so many more companies have chat boxes, she added.”

    As we recently reported, retail bankruptcies surged 110% during the first half of 2017, accounting for some $6 billion in debt, even as the overall high-yield default rate tumbled to 1.9% in the same period from 2.2% at the end of June as $4.7 billion of defaulted debt, mostly in the energy sector, rolled out of the default universe. Overall high-yield default rate tumbled to 1.9% in the same period from 2.2% at the end of June as $4.7 billion of defaulted debt – mostly in the energy sector – rolled out of the default universe.

  • How The CIA Came To Doubt The Official Story Of JFK’s Murder

    By Philip Shenon and Larry Sabato via Politico Magazine,

    After the assassination of President John F. Kennedy in November 1963, the CIA appeared eager, even desperate, to embrace the version of events being offered by the FBI, the Secret Service and other parts of the government. The official story: that a delusional misfit and self-proclaimed Marxist named Lee Harvey Oswald killed the president in Dallas with his $21 mail-order rifle and there was no evidence of a conspiracy, foreign or domestic. Certainly, the CIA’s leaders told the Warren Commission, the independent panel that investigated the murder, there was no evidence of a conspiracy that the spy agency could have foiled.

    But thousands of pages of long-secret, assassination-related documents released by the National Archives last week show that, within a few years of Kennedy’s murder, some in the CIA began to worry internally that the official story was wrong—an alarm the agency never sounded publicly.

    Specifically, key CIA officials were concerned by the mid-1970s that the agency, the FBI, the Secret Service and the White House commission led by Chief Justice Earl Warren had never followed up on important clues about Oswald’s contact with foreign agents, including diplomats and spies for the Communist governments of Cuba and the Soviet Union, who might have been aware of his plans to kill Kennedy and even encouraged the plot. (There is no credible evidence cited in the documents released so far that Cuban leader Fidel Castro or other foreign leaders had any personal role in ordering Kennedy’s murder.)

    The CIA documents also offer tantalizing speculation about the chain of events in late 1963 that explained Oswald’s motives for killing Kennedy, which have previously never been established with certainty—how he may have become enraged after reading a detailed article in his hometown newspaper in New Orleans in September suggesting that his hero Castro had been targeted for assassination by the Kennedy administration. According to that theory, Oswald, who had rifle training in the Marine Corps, then set out to seek vengeance on Castro’s behalf—to kill Kennedy before the American president managed to kill the Cuban leader.

    If that proved true, it would have raised a terrible question for the CIA: Was it possible that JFK’s assassination was, directly or indirectly, blowback for the spy agency’s plots to kill Castro? It would eventually be acknowledged the CIA had, in fact, repeatedly tried to assassinate Castro, sometimes in collusion with the Mafia, throughout Kennedy’s presidency. The CIA’s arsenal of weapons against Castro included a fungus-infected scuba suit, a poison-filled hypodermic needle hidden in a pen—and even an exploding cigar. The Warren Commission, never told about the CIA’s Castro plots, mostly ducked the question of Oswald’s motives, other than saying in its final report that he had expressed a “hatred for American society.”

    JFK historians and the nation’s large army of private assassination researchers are still scrambling to make sense of the latest batch of tens of thousands of pages of previously secret CIA and FBI documents that were unsealed last week by the National Archives. The documents—441 files that had previously been withheld entirely, along with 3,369 other documents that had been previously released only in part—were made public under terms of a 1992 law that requires the unsealing of all JFK assassination-related documents by October, the law’s 25-year deadline.

    Since the release last week, researchers do not appear to have identified any single document that could be labeled a bombshell or that rewrites the history of the assassination in any significant way. Many of the documents, which were made public only online, are duplicates of files that had been released years earlier. Other documents are totally illegible or refer to CIA and FBI code names and pseudonyms that even experienced researchers will take months to decipher. Several documents are written in foreign languages.

    JFK

    Still, the newly released documents may offer an intriguing glimpse of what comes next. The National Archives is required to unseal a final batch of about 3,100 never-before-seen JFK-assassination files by the October deadline, assuming the move is not blocked by President Donald Trump. Under the 1992 Kennedy Assassination Records Collection Act, the president is the only person empowered to stop the release. (Congressional and other government officials have told us in confidence that at least two federal agencies—likely the CIA and FBI—are expected to appeal to Trump to block the unsealing of at least some of the documents. Even after 54 years, some government officials apparently still want to keep secrets about this seminal event in U.S. history. The CIA and FBI acknowledged earlier this year they are conducting a final review of the documents, but have been unwilling to say if they will ask the president to block some from being released.)

    None of the files released last week undermines the Warren Commission’s finding that Oswald killed Kennedy with shots fired from his perch on the sixth floor of the Texas School Book Depository in Dallas’ Dealey Plaza—a conclusion supported by 21st century forensic analysis—and that there was no credible evidence of a second gunman.

    But the new documents do revive the question of why the CIA, so skeptical internally of many of the commission’s other findings by the 1970s, never acknowledged those suspicions to later government investigators—or to the public. Documents released decades ago show that CIA and FBI officials repeatedly misled—and often lied outright—to Chief Justice Warren and his commission, probably to hide evidence of the agencies’ bungling in their surveillance of Oswald before the president’s murder. The CIA appears also to have been determined to block the commission from stumbling on to evidence that might reveal the agency’s assassination plots against Castro and other foreign leaders.

    In 2013, the CIA’s in-house historian concluded that the spy agency had conducted a “benign cover-up” during the Warren Commission’s investigation in 1963 and 1964 in hopes of keeping the commission focused on “what the Agency believed was the ‘best truth’ — that Lee Harvey Oswald, for as yet undetermined motives, had acted alone in killing John Kennedy.”

    But what if the “best truth” was wrong? According to documents made public last week, the CIA was alarmed by the mid-1970s to realize that no one had properly followed up on clues about an especially mysterious chapter in Oswald’s life—a six-day, apparently self-financed trip to Mexico City beginning in late September 1963, two months before the assassination. The reason for the trip has never been determined with certainty, although he told his wife, Marina, that he went there to obtain a visa that would allow him to defect to Cuba, much as he had once attempted to defect to the Soviet Union.

    The CIA acknowledged long ago that the agency’s Mexico City station had Oswald under surveillance during the trip, and that he met there with Cuban and Soviet diplomats and spies. The CIA station chief said later he was convinced that Oswald had a brief sexual relationship with a Mexican woman who worked in the Cuban consulate. Although there is no credible evidence of Soviet involvement in the assassination, Oswald’s other contacts in Mexico included—shockingly enough—a KGB assassinations expert who doubled as an accredited Soviet diplomat. A top-secret June 1964 FBI report, made public in the 1990s but apparently never seen by key investigators for the Warren Commission, suggests that Oswald was overheard threatening to kill Kennedy during his visits to the Cuban diplomatic compound in Mexico.

    The files released last week also show that the CIA and other agencies failed to pursue clues that Oswald, who publicly championed Castro’s revolution even while serving in the Marine Corps, had been in contact with Cuban diplomats years before the Mexico trip—possibly as early as 1959, when he was deployed to a military base in Southern California. The information initially came to the FBI and the Warren Commission from a fellow Marine who recalled how Oswald boasted about his contacts with Cuban diplomats in Los Angeles, where Castro’s government then had an office.

    The account from the fellow Marine was of “a lot more possible operational significance” than was realized in the months after the assassination but was never “run down or developed by investigation,” according to a 1975 CIA internal memo released last week. “The record of the beginning of OSWALD’s relationship with the Cubans starts with a question mark.”

    That 27-page memo, which does not identify its author, is among the most intriguing of the documents in last week’s batch unsealed by the National Archives. Copies of the document were found inside larger CIA files released last week, including thick agency files labeled HELMS HEARING DUPLICATE. That seems to suggest the memo was given to former Director of Central Intelligence Richard Helms, who led the agency from 1966 to 1973, when he was later summoned to testify secretly to Congress about his involvement in the CIA assassination plots against Castro and other foreign leaders. Similar documents about the Kennedy assassination and Oswald were written in the 1970s by a senior CIA counterintelligence official, Raymond Rocca, who had served as the agency’s chief liaison to the Warren Commission.

    Labeled “SECRET” and stamped “REPRODUCTION PROHIBITED” on each page, the 1975 memo lists several important clues about Oswald that went unexplored in the months and years after Kennedy’s death. (Versions of the same CIA memo were part of the flood of millions of pages of documents released after the 1992 law, although it has never attracted detailed attention outside a small circle of assassination researchers. Brian Latell, a respected former CIA analyst on Cuban intelligence, cited a version of the document in his 2012 book Castro’s Secrets, which suggested much closer links between Oswald and Cuba than had previously been known.)

    The 1975 document noted the failure of the CIA, FBI and the Warren Commission to interview a key witness in Mexico City—Silvia Duran, the Mexican woman who worked in the Cuban consulate and was reported to have had the affair with Oswald. She is the “sole live witness on the record regarding Oswald’s activities,” yet her testimony “was taken and presented, solely, by the Mexican governmental authorities,” the CIA memo said. Duran, who is still alive, has repeatedly insisted she had no sexual relationship with Oswald, although she readily acknowledges that she helped him with his unsuccessful visa application for Cuba.

    It was that same CIA memo that offered a detailed theory of the chain of events that led Oswald to kill Kennedy—how Oswald, who lived in his hometown of New Orleans for much of 1963, may have been inspired to assassinate the president if, as seemed probable, he read an article on Monday, September 9, in the local newspaper, that suggested Castro was targeted for murder by the United States.

    The article, written by a reporter for The Associated Press in Havana and then published prominently in the Times-Picayune, was an account of an AP interview with Castro two days earlier, in which the Cuban strongman angrily warned the Kennedy administration that he was aware of U.S. assassination plots aimed at Cuban leaders, presumably including him, and was prepared to retaliate. The article quoted Castro as saying: “U.S. leaders would be in danger if they helped in any attempt to do away with leaders of Cuba.”

    The CIA memo suggested that if Oswald, who was known to be an “avid reader” of the Times-Picayune, saw the article, it might have put the idea in his head to kill Kennedy as retaliation for the threat the United States posed to Castro—an idea that would have been in his mind as he left for his trip to Mexico that month. The possibility that Oswald read the article “must be considered of great significance in light of the pathological evolution of Oswald’s passive/aggressive makeup” and “his identification with Fidel Castro and the Cuban revolution,” the CIA memo said.

    Immediately after the assassination, the CIA’s Mexico City station warned CIA headquarters that the AP article might contain a vital clue about Oswald’s motives for killing Kennedy—and even about possible Cuban involvement. But according to the 1975 analysis, “There is no evidence in the files on the Kennedy assassination that the Castro interview was considered in following up leads or in dealing with the Warren Commission, although Mexico Station specifically directed headquarters to the AP story very shortly after the Dallas killing.”

    Previously released internal documents from the Warren Commission show that one of the commission’s most aggressive staff lawyers believed that Castro’s remarks to the AP—and the possibility that Oswald read the article—might be of great significance in explaining Oswald’s motives. But the internal files show that more senior staff members decided against any reference to the AP article in the commission’s final report for fear of feeding conspiracy theories about a possible Cuban link to Kennedy’s death. It does not reflect well on the legacy of either the CIA or the commission that, half a century after those gunshots rang out in Dealey Plaza, the newly released documents suggest that at least some of those conspiracy theories might be true.

    Castro

  • BTC-E Says It Will Return Customers' Bitcoins After Being Shut Down By DOJ

    In what would be a surprising achievement, after the US government seized the site's domain, BTC-e announced that it has somehow retained access to customer wallets and deposits nearly two weeks after the site was taken down by a collaboration between US and European authorities.

    The announcement was published on a bitcoin forum account long associated with the shadowy exchange, so there’s no guarantee that it represents an official statement from the company, or whatever’s left of it.

    Authorities arrested the BTC-e’s alleged founder, Russian-born Alexander Vinnik, in Greece late last month after unveiling a 21-count indictment against Vinnik and BTC-e, which included a $110 million fine for the mysterious digital-currency exchange, as we reported.

    The full statement is below, translated from the original Russian by Google.

    Vinnik was accused of using the exchange to operate a $4 billion money laundering scheme using cryptocurrency. According to the indictment, Vinnik helped the hackers who stole tens of thousands of customer bitcoins from Mt. Gox in the largest, and probably most infamous, cybertheft in digital-currency history. The Fed’s described BTC-e as the “exchange of choice to convert digital currencies like bitcoin to fiat money for the criminal world, especially by those who committed their crimes online.”

    This isn’t the first statement purportedly released by BTC-e since Vinnik’s arrest. A day after the site was seized, the same account published a note assuring customers that they would get their money back.

    Of course, that didn’t stop some on twitter from making uncomfortable Mt. Gox comparisons.

     

    //platform.twitter.com/widgets.js

     

  • Jatras: "Isolated Trump Flails Helplessly, Bows To Irrational Policies On Russia & Europe Imposed By Congress"

    Authored by James George Jatras via The Strategic Culture Foundation,

    President Donald Trump has signed the sanctions bill against Russia, North Korea, and Iran. With the near-unanimous, veto-proof margin by which the so-called «Countering America’s Adversaries Through Sanctions Act» was passed by both the House and the Senate, Trump was in a lose-lose position.

    In the signing statement issued by the White House, Trump and his advisers tried to put a brave face on what can only be seen as a humiliating defeat. Despite some cosmetic changes –

    «– the bill remains seriously flawed – particularly because it encroaches on the executive branch’s authority to negotiate. Congress could not even negotiate a healthcare bill after seven years of talking. By limiting the Executive’s flexibility, this bill makes it harder for the United States to strike good deals for the American people, and will drive China, Russia, and North Korea much closer together. The Framers of our Constitution put foreign affairs in the hands of the President. This bill will prove the wisdom of that choice.

     

    «Yet despite its problems, I am signing this bill for the sake of national unity. It represents the will of the American people to see Russia take steps to improve relations with the United States. We hope there will be cooperation between our two countries on major global issues so that these sanctions will no longer be necessary». [Emphasis added]

    To suggest this absurd, dangerous, and unconstitutional law can be characterized as representing a desire «to see Russia take steps to improve relations» with the US is the opposite of the truth.

    The conscious purpose of this law is to make sure that no steps to improve ties can be taken for decades to come. In that, it will be a success. The US Deep State has boxed Trump in, there’s nothing he or anyone else can do about it. Cold War 2 will almost certainly be a fact of life – for many, many years.

    Unless we stumble into a Hot War between the US and Russia, which could be of considerably shorter duration…

    Trump’s ubiquitous critics slammed his disparagement of the bill even as he signed it. «I built a truly great company worth many billions of dollars», Trump jabbed. «That is a big part of the reason I was elected. As President, I can make far better deals with foreign countries than Congress». True of course. But this is less defiance than helpless flailing at the air. Trump is alone. He knows it, and so does everyone else.

    Not only is Congress almost totally united against his foreign policy campaign positions, almost everyone in his own administration is too. Personnel selections in foreign and national security policy are overwhelmingly from the neoconservative and Republican «Never Trump» camp informally led by former losing GOP presidential candidate Mitt Romney. Trump loyalists and people who might actually agree with his campaign positions are systematically blackballed. Those getting jobs in the administration are sometimes, to the extent humanly possible, even worse than the Obama appointees they are slowly supplanting. On Russia, anyway, it seems about the only Trumper in his administration is the president himself. Even his cutoff of CIA weapons to al-Qaeda linked jihadists cannot be secure as the «al-Assad has no role in the future governing of Syria» meme returns.

    In the end, Moscow has accepted the reality that «US politics have been captured by the Russophobic forces that have been pushing Washington toward the path of confrontation». While pro forma Russia continues to hold out the principle that it still «stands ready to normalize bilateral relations with the United States and cooperate on major international issues… on the basis of equality, mutual respect and a balance of interests», they know the real score. The new law signed by Trump is tantamount to a «full-scale trade war», conceded Russian Prime Minister Dmitry Medvedev. «The hope that our relations with the new American administration would improve is finished». Finished.

    No one can take seriously the spin from Vice President Mike Pence that the US continues «to believe that if Russia will change its behavior, our relationship can change for the good and improve for the interests in both of our countries and the interest of peace and stability in this region and around the world». Putting aside the air of lecturing an unruly child, «behavior» has nothing to do with it. Moscow could hand Crimea back to Ukraine, escort Kiev’s troops into the Donbass on a red carpet, and hang Bashar al-Assad from a Damascus lamp post, but the sanctions would remain and be progressively tightened. Look how long it took to get rid of Jackson-Vanik far after its ostensible purpose was long since moot.

    Note that the Vice President’s comments took place on a tour of Estonia, Montenegro, and Georgia, three countries (one really can’t call Montenegro a «nation») that are totally useless for defending America against Russia or anyone else but constitute part of a «C»-shaped loop around Russia’s western perimeter. Also note that Macedonia may soon also get pulled in, stepping up the pressure for Serbia’s and Bosnia-and-Herzegovina’s absorption. Even the mafia-ruled, terror-rife pseudo-state of Kosovo it getting come-hither looks.

    The more the merrier! Tighten that noose! When all’s said and done, the Russophobic impulse controlling US policy is not about what the Russians have done but who they are: Russia delenda est. Hostility toward Russia is not a means to an end – it is the end.

    Meanwhile, American prestige media post literally irrational headlines like «Russia's Military Drills Near NATO Border Raise Fears of Aggression». This refers to circumstances where (1) we pull in «allies» that are useless in defending us but are ideal forward offensive platforms, (2) we string our military bases around Russia, and (3) make a big show of provocative troop, air, and naval movements right on the Russians’ borders and on the edge of their territorial waters, but (4) they’re the provocative and «aggressive» ones for moving troops around on their own territory.

    With this bill now signed into law, we presumably will see some Russian response, without the delay of the ill-founded delusion that restraint will be rewarded. But the fact is, when it comes to sanctions ping-pong, Russia is in an inherently weaker position. While western observers often overestimate the damage sanctions do to the Russian economy, there’s very little Russia can do to the US economy. The volume of bilateral trade is too low, the disparity in economic and financial power is just too great, the US role in the world financial system is too pervasive, as is our hold over our subservient satellites, who will likely suffer more damage than Russia.

    Perhaps the Europeans will begin to see that the people making policy in Washington are not really their friends, though that would require both courage and wisdom from the likes of Merkel, Macron, and May – not a good bet. So far, it’s just noise:

    «European Commission President Jean-Claude Juncker warned of potential collateral damage to Europe’s energy market, as the sanctions could inadvertently hit European companies involved with Russia’s energy-export pipelines. One such pipeline, the Nord Stream 2 [JGJ: The EU Commission didn’t worry about their policies’ «collateral damage» to South Stream, when the beneficiaries would have been southern Europe and the Balkans], which aims to carry natural gas from Russia to Germany through the Baltic Sea, involves several European companies. ‘«America First» cannot mean that Europe’s interests come last,’ Juncker said, adding that the Commission would be ready to act ‘within a matter of days’ if their concerns were not addressed». 

    The irony of course is that it’s not Trump’s «America First» that is responsible but exactly the opposite: the efforts of the US establishment – which the EU loves, and vice versa – to torpedo Trump! But if Trump’s unpopularity in Europe can be used as a means to rally opposition to the US sanctions, it may have some value. Hypocrisy has its uses.

    As we move forward into an increasingly dangerous world perhaps Moscow will focus less on striking back against the US than on self-protection: breaking off reliance on the US dollar, refocusing their energy and other vital sectors toward Asia and Eurasian economic integration. If the Europeans are smart (big «if») they will think in that direction themselves.

    If so, that would lead to another, supreme irony. An article of faith of western Russophobes is that Moscow’s top goal is to «decouple» the US from Europe. If that ends up happening, to whatever extent, Trump’s enemies may end up accomplishing it for them. Perhaps Trump isn’t the Russian plant – perhaps his domestic opponents are.

  • Vicente Fox Drops F-Bomb Live On CNN; Says Trump Just "Trying To Save Face" With Voters On Border Wall

    Last night the Washington Post dumped it’s latest ‘bombshell’ White House leaks in the form of full transcripts of Trump’s calls with Mexican President Enrique Pena Nieto and Australian Prime Minister Malcolm Turnbull from back in January…which, in Trump years, feels like it was about 20 years ago (we covered it here: Trump Phone Call Transcripts Leaked: “New Hampshire Is A Drug Infested Den”).

    Among other things, the full transcripts revealed Trump describing the border wall as a politically important issue but otherwise the “least important thing that we are talking about,” an admission that will come as a surprise to a lot of folks who voted for him.  Meanwhile, he also attempted to hedge his insistence that Mexico pay for border wall by proposing a “formula” that would allow the two countries to split the costs, a compromise, and likely the goal of his grandstanding all along, that would seemingly allow both candidates to declare victory politically.

    Here are some of the relevant exchanges from the January call:

    Trump:

    “Believe it or not, this is the least important thing that we are talking about, but politically this might be the most important.  But in terms of dollars — or pesos — it is the least important thing.”

     

    “On the wall, you and I both have a political problem.  My people stand up and say, ‘Mexico will pay for the wall,’ and your people probably say something in a similar but slightly different language. But the fact is we are both in a little bit of a political bind because I have to have Mexico pay for the wall. I have to. I have been talking about it for a two-year period.”

     

    “We should both say, ‘We will work it out.’ It will work out in a formula somehow.  As opposed to you saying, ‘We will not pay,’ and me saying, ‘We will not pay.'”

     

    “We cannot say that anymore because if you are going to say that Mexico is not going to pay for the wall, then I do not want to meet with you guys anymore because I cannot live with that.”

     

    Pena Nieto:

    “This is what I suggest, Mr. President — let us stop talking about the wall.  I have recognized the right of any government to protect its borders as it deems necessary and convenient. But my position has been and will continue to be very firm saying that Mexico cannot pay for that wall.”

    Meanwhile, and not surprisingly, former Mexican President Vicente Fox appeared yet again on CNN this morning to blast Trump for the transcripts which he used as evidence that Trump’s continued interest in the border wall is nothing more than an attempt to “save face” with voters.

    //platform.twitter.com/widgets.js

     

    And what border wall discussion with Vicente Fox would be complete without another twitter effort to get “#FuckingWall” trending again?

    //platform.twitter.com/widgets.js

     

    Are you not entertained?

  • A Cannabis Company Just Bought A Whole California Town

    Authored by Carey Wedler via TheAntiMedia.org,

    As cannabis grows increasingly acceptable in society and more states legalize it, everything from cannabis churches and resorts to yoga and restaurants are cropping up. And now, there will be an entire cannabis-inspired town.

    American Green is a cannabis company based in Arizona, but they just bought the small California town of Nipton, located in San Bernardino County, and plan to convert into a municipality with a cannabis theme.

    The company has a “state of the art” cultivation facility in Arizona and also sells hemp-based CBD (cannabidiol) products online and works to develop cannabis apps. They just spent five million dollars to obtain Nipton and plan to spend another $2.5 million creating their cannabis tourist attraction over the next 18 months.

    We thought that showing that there was a viable means of having a cannabis-friendly municipality and further making it energy independent could be a way of really inspiring folks to say, ‘Why can’t we do that here?’” says the company’s consultant and project manager for Nipton, Stephen Shearin.

    Bloomberg reports:

    American Green plans to include a new facility to manufacture water infused with CBD, the cannabis component that is typically associated with reducing pain and inflammation. The new Nipton will also have a production site for edible marijuana products, retail stores, and artist-in-residence programs.”

    In doing so, the company hopes to develop Nipton into a tourist attraction and make cannabis approachable and acceptable to a wider audience.They plan to manufacture products with smaller doses and provide a vending machine that ensures customers are of age using a biometric scanner.

    American Green wants to make Nipton, which features natural mineral springs, a tourist destination. Shearin told Marijuana Business Daily that they plan to “open cannabis-themed bed and breakfasts, host culinary events, start artists-in-residence programs and more.”

    They are in negotiations with edible and extract companies to set up shop in Nipton, as well as ship and distribute their products to other parts of the state.

    Though they plan to be up and running by mid-October of this year, they still have to wait for the necessary state and local licenses to be able to cultivate and sell cannabis on the property.

    If we have to wait until January and prepare for that and get that in place, and then build out the infrastructure to support it, we can still have a cannabis-friendly destination,” Shearin said.

     

    It’s a master-planned community,” he told Marijuana Business Daily. “It’s designed to be very specific in terms of being legal, being a town and running it correctly. It’s designed to be open-ended in terms of what it can evolve into by partnering with the right company.”

    They also want to build out the town’s mineral springs and create several CBD-infused water pools, expand an existing solar farm, and ensure there is enough lodging for future tourists.

    And it’s not just Nipton they want to transform. They hope to change the entire region and make cannabis-based towns more acceptable and popular.We want to revitalize the region, not the town,” Shearin said, “and we want to do it in a way that other towns can say, ‘Look at that, they have this regulatory system that allows them to embrace cannabis while not offending people who may not be of that mindset.’”

    For now, they are moving forward within California’s legal framework. Though President Trump’s Attorney General Jeff Sessions has threatened to crack down on legal cannabis, his future in the administration is uncertain, and it’s difficult to imagine a state like California giving up its recent voter decision to legalize the plant.

    Fittingly, Nipton used to be a gold rush town. As Shearin said, The Gold Rush built this city. The Green Rush can keep it moving the way people envisioned it years ago.And he hopes to do it elsewhere:

    “The plan is absolutely to duplicate this model in new cities.”

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Today’s News 4th August 2017

  • Even Some Allies Fear America

    While Machiavellian disciples argue that for a leader it's better to be feared than loved, the United States often sees itself as a benign hegemon, holding its shielding hand over the world, ever since she won the Second World War.

    In fact, as Statista's Dyfed Loesche notes, many people around the world today fear that the United States isn't always a force for good in international politics.

    According to Pew Research Center, the United States' standing in the world has gone down overall.

    Infographic: Even Some Allies Fear America | Statista

    You will find more statistics at Statista

    Surprisingly, people in allied countries, such as NATO-member Turkey, or partner countries in East Asia, such as South Korea and Japan, feel threatened by American might.

    On the other end of the scale, people in India, Israel and Poland have a more positive outlook on America's role in the world.

  • Vladimir Putin, At Wit's End With Washington, Opts For Poker Over Chess

    Authored by Robert Birdge via The Strategic Culture Foundation,

    Russian President Vladimir Putin has made a calculated bet that the embattled Trump administration will interpret his expulsion of hundreds of US diplomats from Russia as more of a friendly warning than an overtly hostile act.

    As US lawmakers on the weekend sent to President Trump's desk a bill that would make it virtually impossible for the US leader to revoke a new round of anti-Russia sanctions without congressional approval, Putin announced that 755 American diplomats «will have to leave Russia as a result of Washington's own policies».

    Speaking on Sunday, the Russian leader – clearly exasperated by the clinical bout of Russophobia that took possession of the American psyche long before a rich real estate developer named Donald Trump emerged on the scene – delivered a message loaded with both strength and regret when he said: «We've been waiting for quite a long time that maybe something would change for the better, we had hopes that the situation would change. But it looks like, it's not going to change in the near future … I decided that it is time for us to show that we will not leave anything unanswered».

    All things considered, Putin's response was exceptional for its balance and restraint. Although 755 diplomats may sound like a small army, slashing the US side by that number gives Moscow and Washington exactly 455 civil servants each. That sounds not only fair, but logical. 

    At the same time, Putin announced the seizure of two US properties in Moscow – a warehouse and a riverside retreat nestled in a wooded area along the shores of the Moscow River. Once again, this maneuver is merely tit-for-tat on the part of the Russians, and lacks enough punch to inflict any mortal wound on US-Russia relations. That is, unless the Americans – who have until Sept. 1 to comply with the expulsion order – wish for it to. 

    Importantly, Putin's expulsion order is not against the Trump administration. It is a well-timed response to a malicious move by ex-President Barack Obama, who, in the waning hours of his disastrous presidency, declared 35 Russian diplomats «persona non grata», while performing a land grab on Russian properties. He gave these officials and their families just 72 hours to leave the country – and right before New Year's, the most popular Russian holiday.

    At the time, Putin, confident that bilateral relations would improve under Trump, shrugged off Obama's desperate last act on the political stage. 

    «We will not create problems for American diplomats. We will not expel anyone,» he said. «Furthermore, I invite all children of US diplomats accredited in Russia to the Christmas and New Year tree in the Kremlin».

    Ironically, then-President-Elect Donald Trump called Putin «very smart» for not allowing Obama to cause him to react harshly to the expulsion, thereby delivering a long-term setback to US-Russia relations. What could not have been anticipated at the time, however, was to what extent the 'Deep State' – that disruptive and destructive shadow force that comprises the real power behind the Oval Office – would go to destroy the Trump presidency (It is worth mentioning that the very existence of the Deep State precludes the ludicrous notion that Russia somehow «hacked American democracy» since Moscow understands better than anyone that regardless of the US political party in power – Democrat or Republican, take your choice – the real decisions are made by a monolithic, supra-political structure that does not tolerate political freedom in any form, and least of all democratic. Any attempt to rig such a fixed system would be pure folly).

    The fact that Trump almost immediately declared his intent to sign the Russian sanctions bill indicates that he either caved in to the relentless pressure by the establishment, or he was never very sincere about restoring relations with Russia in the first place. The truth is probably somewhere in the middle. However, judging by the unhinged anti-Russia comments by members of his staff (UN Ambassador Nikki Haley, for example, in March told NBC: «We cannot trust Russia … We should never trust Russia»), it seems Trump was the only one in Washington in favor of fixing the US-Russia relationship

    Indeed, after US lawmakers voted in favor of the anti-Russia bill, US Secretary of State Rex Tillerson delivered a comment that was so stupid it had to be calculated. The House and Senate votes in favor of more Russian sanctions, Tillerson said, «represent the strong will of the American people to see Russia take steps to improve relations with the United States». 

    Huh?

    And then Tillerson signed off with the following statement that actually carried a thinly veiled threat: «We will work closely with our friends and allies to ensure our messages to Russia, Iran, and North Korea are clearly understood». 

    Tillerson, however, will now have to work extra hard to get the message across to America's European allies, especially the Germans, who are fuming mad about the latest anti-Russia sanctions. That's because the sanctions target any company that is involved in Russia’s energy export pipelines, like Nord Stream 2, a joint Russia-German project to carry Russian natural gas under the Baltic Sea, bypassing American client states, like Ukraine, Poland and the Baltic States. 

    In other words, what we have here is the American superpower attempting to deny the right of economic cooperation between two consenting states. In the event the US fails to get what it wants, which seems to be everything under the moon, its infantile will is enforced by the small yet lethal firearm known as 'sanctions.' Fortunately, such bumbling 'diplomacy' is transparent even to the most knee-jerk Russophobes for the very simple reason it places their own financial security at great risk.

    So what is the source of this latest anti-Russia mood coming out of Washington? Briefly, it began in earnest in September 2015 when Russia made the decision to enter the Syrian fray – legally, it should be added, with an expressed invitation by President Bashar Assad – to fight against the terrorists of Islamic State. Strangely, the more damage Russian forces inflicted upon this malevolent group, the more it was criticized by US politicians. 

    However, the anti-Russia witch hunt really hit its stride when it became clear that Hillary Clinton would lose the 2016 presidential election to the populist Donald Trump. The Deep State that backed her needed a scapegoat for the devastating loss, and Russia, as usual, provided a convenient suspect. To this day, seven months after Trump entered the White House, the world has not seen a single scrap of hard evidence to suggest Russian interference in the election. But that has not stopped the media from continuing its non-stop attacks on both Trump and Putin (We may eventually see Vice President Mike Pence, who espouses the world view of the US elite, take over the reins of the US presidency. This week, after meeting the trembling leaders of the Baltic states of Estonia, Latvia and Lithuania, Pence delivered this line of rubbish: «Russia seeks to redraw international borders by force, undermine democracies of sovereign nations and divide the free nations of Europe»). 

    Although we may hope that Donald Trump will see the writing on the wall as far as US-Russia relations go, and find ways to restore bilateral relations between the world's two nuclear powers, things are not so simple as that. Trump has been assailed by a mainstream media that can only be described as out of control and half-insane. Worse than the military industrial complex, it is truly hell-bent on war, which became clear after Trump bombed a Syrian airfield in April and became an overnight darling of the Neo-Liberal goon squad. When Trump eventually curbed his appetite for violence and bloodshed, he once again became a target for media-sponsored destruction.

    Clearly, either the media and its many powerful proponents will get their way and bring down Trump, or Trump – and in direct contradiction to history's tragic lessons (read Kennedy and Lincoln) – will somehow emerge victorious against the Deep State. The options for Russia, not to mention the American people themselves in such a dire and dangerous situation, are rather slim. A bit like leaving Las Vegas with more in your pocket than when you first arrived.

    In conclusion, Putin's move was a long time coming, yet this may have been exactly what the Deep State – anxious for any excuse to permanently wreck US-Russia relations – had been eagerly anticipating.

  • PCR: "The Witch Hunt For Donald Trump Surpasses Salem"

    Authored by Paul Craig Roberts,

    We should be scared to death that Sally Q. Yates served as a prosecutor in the Justice (sic) Department for 27 years. In the New York Times, Sally takes high umbrage to Trump’s criticism of his attorney general, Sessions, and blows Trump’s disappointment with Sessions into an attack by Trump on the rule of law.

    Sally has it backwards. The rule of law is being attacked by the appointment of a special prosecutor to find something on Trump in the absence of any evidence of a crime.

    In 1940 US attorney general Robert Jackson warned federal prosecutors against “picking the man and then putting investigators to work, to pin some offense on him.

     

    It is in this realm – in which the prosecutor picks some person whom he dislikes or desires to embarrass, or selects some group of unpopular persons and then looks for an offense – that the greatest danger of abuse of prosecuting power lies.

     

    It is here that law enforcement becomes personal, and the real crime becomes that of being unpopular with the predominant or governing group, being attached to the wrong political views or being personally obnoxious to, or in the way of, the prosecutor himself.”

    Robert Jackson has given a perfect description of what is happening to President Trump at the hands of special prosecutor Robert Mueller. Trump is vastly unpopular with the ruling establishment, with the Democrats, with the military/security complex and their bought and paid for Senators, and with the media for proving wrong all the smart people’s prediction that Hillary would win the election in a landslide.

    From day one this cabal has been out to get Trump, and they have given the task of framing up Trump to Mueller. An honest man would not have accepted the job of chief witch-hunter, which is what Mueller’s job is.

    The breathless hype of a nonexistent “Russian collusion” has been the lead news story for months despite the fact that no one, not the CIA, not the NSA, not the FBI, not the Director of National Intelligence, can find a scrap of evidence. In desperation, three of the seventeen US intelligence agencies picked a small handful of employees thought to lack integrity and produced an unverified report, absent of any evidence, that the hand-picked handful thought that there might have been a collusion. On the basis of what evidence they do not say.

    That nothing more substantial than this led to a special prosecutor shows how totally corrupt justice in America is.

    Furthermore the baseless charge itself is an absurdity. There is no law against an incoming administration conversing with other governments. Indeed, Trump, Flynn, and whomever should be given medals for quickly moving to smooth Russian feathers ruffled by the reckless Bush and Obama regimes. What good for anyone can come from ceaselessly provoking a nuclear Russian bear?

    The new Russian sanctions bill passed by Congress is an act of reckless idiocy. It was done without consulting Europe which will bear the cost of the bill and might reject it, thus sending shock waves through the fragile American empire.

    Congress’ thoughtless bill is a violation of the separation of powers. Foreign policy is the executive branch’s arena. The feckless Obama put the sanctions on. Obviously, if a president can put sanctions on, a president can take sanctions off.

    Trump should take his case to the American people, not via Twitter, but with a major speech. Fox News and Alex Jones, either of which has a larger audience than CNN and the New York Times, would broadcast Trump’s speech. Trump should make the case that Congress is over-reaching its constitutional authority and also preventing a reduction in dangerous tensions between nuclear powers. Trump should ask the American people forthright if they want to be driven into war with Russia by gratuitous provocation after provocation.

    Because of the powers that Bush and Obama thoughtlessly gave the presidency, Trump can declare a national emergency, cancel Congress, and arrest whomever he wishes. Of course, the presstitute media would do everything possible to sway the people and the US military against the state of emergency, but if there were a real “Russian collusion,” Trump would have Putin initiate a major crisis that would bring the people and the military to Trump’s side. That no such thing will happen is total proof that there is no “Russian collusion.”

    Even the Washington Post, an initiator and leader of the breathless “Russian collusion” lie has now published an article, “The quest to Prove Collusion is Crumbling,” that concludes that the entire orchestration is a hoax. 

    As the Washington Post article says, “the story that never was is not happening.”

    So the great “superpower America,” the “exceptional, indispensable country,” has wasted 7 months of a new presidency in a hoax when it could have been repairing the relations with Russia and China that were seriously damaged by the criminal Bush and Obama regimes. What are the utter fools that comprise the American Establishment thinking? Why do the morons want high tensions with the two powers that can remove the United States and its impotent European and British vassals from the face of the earth in a few minutes? Who gains from this? What is wrong with the American people that they cannot understand that they are being driven to their destruction? Insouciant America is clearly not a sufficiently strong term.

    To come back to the ridiculous Sally Q. Yates, clearly Sally is the embodiment of the Insouciant American. She says she spent 27 years as a Justice (sic) Department prosecutor. Yet, she is able to write this utter nonsense: “I know from first hand experience how seriously the career prosecutors and agents take their responsibility to make fair and impartial decisions based solely on the facts and the law and nothing else”

    Where was Sally Q. Yates when US attorney Rudy Giuliani used the presstitute media to frame up Michael Milken and Leona Helmsley? Giuliani never had any valid indictment against Milken but used the media and FBI harassment of Milken’s relatives to force Milken into a plea bargain and then had Milken double-crossed by the bimbo judge, who was denied her reward to the Supreme Court because it came to light that she illegally employed illegal aliens.

    Today, thanks to the corrupt American media, 99.9% of people who remember the Milken case think that Milken was convicted of insider trading, a charge for which no evidence was ever presented and which was totally absent from the coerced plea bargain that the media helped Giuliani secure.

    As best I remember my investigation of the Helmsley case, Rudy dropped charges against a corrupt accountant in exchange for false testimony against Helmsley. As I remember, both Judge Robert Bork and Alan Dershowitz, attorneys in the case, told me that the charge of tax evasion against Helmsley was preposterous. The Helmsley hotels were fully depreciated and were surviving by guest rentals alone. If the Helmsleys had wanted to reduce their income tax, all they needed to do was to sell their existing depreciated holdings and purchase other hotels in order to crank up the depreciation that reduces income tax.

    Whatever Justice (sic) Department case you look at, it stinks to high heaven. It is extremely difficult to find any justice in America.

    But Sally is certain that President Trump’s criticism of his weak AG means the end of the rule of law in the US.

    As many on the left would say, the US has never had a rule of law. It has a rule of power. How else do we explain the enormous war crimes of the Clinton, Bush, and Obama regimes, and the war crimes to come from the Trump or successor Pence regime, that never will be tried at Nuremberg?

  • China Unveils Emergency Drill To "Shut Down Harmful Websites"

    China's 19th National Congress of the Communist Party – the quinquennial confab where the party selects new members of the Politburo, its ruling council – is expected to begin this fall (official dates have not yet been publicly announced). And in an effort to guarantee that the leadership reshuffle goes off without a hitch, President Xi Jinping is tightening the government’s grip on the internet to help protect the official narrative that Xi's "Chinese Dream" remains intact.

    According to Reuters, China held a drill on Thursday with internet service providers to practice taking down websites deemed harmful.

    “Internet data centers (IDC) and cloud companies – which host website servers – were ordered to participate in a three-hour drill to hone their "emergency response" skills, according to at least four participants that included the operator of Microsoft's cloud service in China.

     

    China's Ministry of Public Security called for the drill "in order to step up online security for the 19th Party Congress and tackle the problem of smaller websites illegally disseminating harmful information", according to a document circulating online attributed to a cyber police unit in Guangzhou.”

    The Communist Party “protects” China’s 1.4 billion citizens from the influence of subversive foreign using nationwide system of internet censorship known as the “Great Firewall.” But as the country’s financial regulators grow increasingly concerned about the country’s dangerously overleveraged economy, which is threatening to sink the country’s fragile stock market, it’s likely that the government sees local business media as a threat. Two years ago, following the spectacular runup and collapse of the Shanghai Composite, authorities arrested one of China’s most respected financial journalist and forced him to make an on air “apology” after the government blamed his reporting for triggering the crash.

    Earlier this year, authorities began a crackdown on VPNs like the Tor network which can allow mainland residents to circumvent the “great firewall.”

    China has been tightening its grip on the internet, including a recent drive to crack down on the usage of VPNs to bypass internet censorship, enlisting the help of state-owned telecommunication service providers to upgrade the so-called Great Firewall.

    Apple last week removed VPN apps from its app store, while Amazon's China partner warned users not to use VPNs.”

    During the drill, the country’s internet data centers were asked to practice shutting down target web pages and report relevant details to the police, including the affected websites' contact details, IP address and server location, according to Reuters. With five of the seven Politburo members retiring, this year’s National Congress presents President Xi with his best opportunity yet to consolidate power. And as tensions escalate between China and several of its geopolitical rivals (notably the US, which is theatening a trade war, and India, which could instigate a real war), expect the crackdown to continue.

  • Russia Sanctions And The Coming Crackdown On Americans

    Authored by Daniel McAdams via The Ron Paul Institute for Peace & Prosperity,

    Last week I wrote an article and did an interview explaining that in my reading of the new Russia sanctions bill just signed by President Trump, there is a measure opening the door to a US government crackdown on some of the non-mainstream media. In particular, Section 221 of the "Countering America’s Adversaries Through Sanctions Act" would punish "persons" who are "engaging in transactions with the intelligence or defense sectors of the Government of the Russian Federation."

    At first one might think this is reading too much into the text, however as a twelve year Capitol Hill veteran bill-reader I can assure you that these bills are never written in a simple, expository manner. There is always a subtext, and in this case we must consider the numerous instances where the Director of Central Intelligence and other senior leadership in the US intelligence community have attempted to establish the idea that foreign news channels such as RT or Sputnik News are not First Amendment protected press, but rather tools of a foreign intelligence organization.

    You can see in the current atmosphere, where anti-Russia hysteria has spread like typhoid, how readily-accepted such a notion would be by many. The reds are under our beds and the Russkies have taken over our airwaves.

    I don't think the crackdown will stop at Russian government funded news organizations like RT and Sputnik, however. Once the initial strike is made at the lowest hanging fruit, the second wave will target Russia-focused organizations not funded by governments but that challenge the official US government line that Russia is our number one enemy and its government must be overthrown. Popular private alternative websites like The Duran and Russia Insider will likely be next on the list for prosecution.

    Sound farfetched? Think of it this way (I can assure you the neocons do): if the Russian government and RT are opposed to sanctions and you operate a website that also takes a line in opposition to Russia sanctions are you not doing the work of Russian intelligence? Are you not seeking to influence your readers in a manner that Russian intelligence would want? Are you not "engaging in transactions" even over the airwaves?

    And after this second wave you can be sure there will be a push to move on other alternative media that has nothing to do with Russia but that opposes US interventionist foreign policy: ZeroHedge, Lew Rockwell, Ron Paul Institute, ConsortiumNews, etc.

    Crazy, you say? Don't forget: this war against us already started last year when the Washington Post ran a front page article accusing all of the above of being Russian agents!

    What would be next? Do you read any of these alternative news sites? Do you pass along articles that oppose US sanctions policy toward Russia? You are engaging in transactions. You will be subject to "sanctions" as described in the "Countering America’s Adversaries Through Sanctions Act," which is now the law of the land.

    This would never happen, you might say. The government would never compile, analyze, and target private news outlets just because they deviate from the official neocon Washington line.

    Perhaps not yet. But some US government funded "non-governmental" organizations are already doing just that.

    The German Marshall Fund has less to do with Germany these days than it did when founded after WWII as a show of appreciation for the US Marshall Fund. These days it's mostly funded by the US government, allied governments (especially in the Russia-hating Baltics), neocon grant-making foundations, and the military-industrial complex. Through its strangely Soviet-sounding "Alliance for Securing Democracy" project it has launched something called "Hamilton 68: A New Tool to Track Russian Disinformation on Twitter."

    This project monitors 600 Twitter accounts that the German Marshall Fund claims are "accounts that are involved in promoting Russian influence and disinformation goals." Which accounts does this monitor? It won't tell us. How does it choose which ones to monitor? It won't tell us. To what end? Frighteningly, it won't tell us.

    How ironic that something called the German Marshall Fund is bringing Stasi-like tactics to silence alternative media and opinions in the United States!

    So what does the "Hamilton 68" project do? In its own words it firstly "shows tweets from official Russian propaganda outlets in English, and a short post discussing the themes of the day. This is Russia’s overt messaging."

    But it goes further than that. It tracks and stores information about others who have no connection to Russia but who "on their own initiative reliably repeat and amplify Russian themes." This is what the German Marshall Fund calls a "network" of second tier disinformation distributors.

    What does this "network" of people with no connection to Russia but who amplify Russian "themes" do?

    It "reflects Russian messaging priorities, but that does not mean every name or link you see on the dashboard is pro-Russian. The network sometimes amplifies stories that Russia likes, or people with like-minded views but no formal connection to Russia."

    So, according to the self-proclaimed alliance for securing democracy you might not even know it when you are pushing Russian state propaganda!

    Do you see what they are doing here? They are using US and other government money in an effort to eliminate any news organization or individual who deviates from the official neocon foreign policy line on Russia, Syria, Ukraine, etc. They are trying to eliminate any information that challenges the neocon line. To criminalize it.

    In fact they admit that they are seeking to silence alternative viewpoints:

    Our objective in providing this dashboard is to help ordinary people, journalists, and other analysts identify Russian messaging themes and detect active disinformation or attack campaigns as soon as they begin. Exposing these messages will make information consumers more resilient and reduce the effectiveness of Russia’s attempts to influence Americans’ thinking, and deter this activity in the future by making it less effective.

    The very Soviet-sounding "Alliance for Securing Democracy" project description ends with a suitably authoritarian warning, ripped from the pages of 1984, Darkness at Noon, or Erich Honecker's "how-to" guide:

    We are not telling you what to think, but we believe you should know when someone is trying to manipulate you. What you do with that information is up to you.

    Chilling, no? And much of it is being done with your money by your government and in your name.

    That is why the neocons and their myriad think tanks (government-funded in many cases) would like nothing more than to shut down our upcoming Peace and Prosperity 2017 Conference, to be held right at their front door! They cannot stand an open debate about Washington's hyper-interventionist foreign policy. They don't want to talk about all their failed wars — and they really don't want to talk about the wars they have planned and are pushing.

    We are not the anti-Americans. They are. They hate the First Amendment. They hate debate. They hate us.

  • These Are The Cities Where Rent Hikes Leave The Most People Homeless

    The idea that rising rents beget increases in a city’s homeless population is nothing new. But in a recent study, Zillow, the online real-estate database company, used a mix of government and proprietary data to examine how much influence an increase in the first variable has on the second.

    The result was surprising.

    Using a mix of government data and its own proprietary databases, the company found that the magnitude of rising rents’ impact on local homeless population varies widely between cities, even when two of those cities both have worsening homelessness problems.

    For example, when the rent rises 5 percent in Atlanta, another 83 people become homeless. In New York, about 3,000 do, according to a Bloomberg analysis of the data.

    “That 5 percent rent hike in Atlanta can be expected to boost the homeless population by 1.5 percent—in New York, by 3.9 percent. Cities such as Pittsburgh, Minneapolis, and Detroit may have smaller homeless populations, but theirs are also sensitive to rising rents."

    The key variable here, as Skylar Olsen, a senior economist at Zillow, explains is the amount of slack, or rental vacancy rate, in a given market.

    “Rent hikes are likelier to force more people into homelessness in housing markets with less slack, said Skylar Olsen, a senior economist at Zillow. Cities such as Houston and Tampa, she added, have been more successful in preventing rising rents from forcing people out of their homes. The study used the geographic definitions that HUD uses to count homeless populations, she said.

     

    The U.S. is short more than 7 million housing units that extremely low-income households can afford, according to the National Low Income Housing Coalition, which defines such households as earning less than 30 percent of area median income. Such low-income renters may not be living in homes with the area’s median rent, but a median rent hike can boost prices for even the cheapest market-rate units.

     

    ‘There’s an overarching supply of units that’s becoming a real problem,’ Olsen said. ‘People move down the ladder, and it pushes everyone else down, and eventually the bottom rung falls off.’”

    Of course, rent isn’t the only factor affecting rates of homelessness; government-assistance programs funded by Housing and Urban Development keep hundreds of thousands of borderline Americans in their own homes.

    Now, the White House is proposing legislation that would strip $7.4 billion from HUD’s 2018 budget. Those cuts would eliminate 250,000 rental-assistance vouchers from the Section 8 housing program, according to Bloomberg. The cuts mean that the local housing officials who distribute the vouchers will need to reduce, or in some cases remove, their assistance.

    Some of those cuts will be cushioned by regular turnover, since some voucher recipients move out of the program every year, for one reason or another. But the level of proposed cuts means many local housing authorities will have to reduce how much assistance they supply to voucher holders—or, in some cases, take it away entirely. According to data from the National Low-Income Housing Coalition, the US economy is already short 7 million affordable homes. A policy change like this one would likely cause that number to rise.
     

  • Geopolitical Tensions Are Designed To Distract The Public From Economic Decline

    Authored by Brandon Smith via Alt-Market.com,

    Tracking geopolitical and fiscal developments over the past several years is a bit like watching a slow motion train wreck; you know exactly what the consequences of the events will be, you try to warn people as much as possible, but, ultimately, you cannot reverse the disaster. The disaster has for all intents and purposes already happened. What we are witnessing is the aftermath as a forgone conclusion.

    This is why whenever someone asks me as an economic and political analyst "when the collapse is going to happen," I have to shake my head in bewilderment. The "collapse" is here now. It is done. It is a historical fact. It's just that not many people have the eyes to see it yet, primarily because they are hyper-focused on all the wrong things.

    For many centuries now, elitists in power have understood the value of geopolitical distraction as a tool for controlling the masses. If you examine the underlying motivations behind the majority of wars between nations regardless of the era, you will in most cases discover that the power brokers on both sides tend to be rather friendly with each other. In fact, monarchies and oligarchies are historically notorious for fabricating diplomatic tensions and conflicts in order to force populations back under their control.  That is to say, wars and other man-made conflicts give the citizenry something to react to, instead of hunting down the establishment cabal like they should.

    One of the greatest illusions of human progress is the notion that most conflicts happen at random; that there are two sides and that those sides are fighting over ideological differences. In truth, most conflicts have nothing to do with ideological differences between governments and financial oligarchs. The REAL target of these conflicts is the people — or, to be more precise, the psychology of the people. Conflicts are often engineered in order to affect a particular change within the minds of the masses or to distract them from other dangers or solutions.

    These scenarios are taken at face value by many because, unfortunately, most people have short attention spans. If an observer in 2007 was to be transported 10 years into the future, in 2017 they would find a world in dramatic and horrifying decline. The shock would be overwhelming. Ask an observer today what they think of the state of the world and they might not see much to be concerned about. The human mind becomes easily acclimated to crisis over time. We are resilient in this way, but also weak, because we forget the way things should be in order to deal with the way things are.

    We only seem to take drastic actions to improve our situation after we have already hit rock bottom. The year of 2017 has so far been host to some extreme accelerations in crisis and collapse, and rock bottom is not looking too far away anymore.

    Four trigger points around the globe concern me greatly, not because I think they will necessarily lead to a disaster any greater than the one we are already living in, but because they have the potential to effectively distract the public from more serious concerns. I am of course talking about the powder keg issues of Syria, North Korea, China vs. India, as well as Russia.

    First, let's be clear, the ongoing destabilization of our economy should be the primary concern of every person on the planet, most particularly those in the West. We are living within the husk of a dead fiscal system, reanimated with the voodoo of central bank stimulus, but only for a limited time. Economic decline is the greatest threat to cultural longevity as well as to human freedom. Even nuclear war could not hold a candle to the terror of financial disaster, because at least in a nuclear war the slate is wiped clean for establishment elites as well as the normal population. At least, in the event of nuclear war, the elites face anarchy just like we do.

    In an economic crisis, the establishment maintains a certain level of control and thus its arsenal of toys – Including biometric surveillance grids, standing military support in the form of martial law, as well as the delusion among the populace that things "might go back to the way they were before" given enough time and patience.

    There will be no nuclear war.  Perhaps a limited nuclear event, but not a global exchange. There will be no moment of apocalypse as it is commonly displayed in Hollywood films. However, we WILL witness lesser conflicts as a means to turn our gaze away from the economy itself.

    To give a quick summary of the economy so far from an American perspective, I must first remind readers of the constant misinformation that is often used by government institutions and central banks in order to hide negative data.

    For example, recovery proponents will sometimes cite the supposed "decline" in the number of people registered for food stamp (SNAP) benefits from the 47 million peak in 2013 to 42 million recipients today. Yet, they rarely mention the fact that much of this decline is directly attributed to states now enforcing work requirements instead of simply handing out SNAP cards like Mardi Gras beads.

    They also still, for some reason, like to cite the decline in the unemployment rate to 4.4 percent while continuing to ignore the fact that 95 million working age Americans are no longer counted as unemployed by the Bureau of Labor Statistics. They argue that this is an entirely acceptable condition, even though it is unprecedented, because "home surveys" from the BLS claim that most of these people "do not really want to work." These utterly ambiguous surveys leave open ended data to be interpreted essentially however the BLS wants to interpret it. Meaning, if they want to label millions of people as "disinterested" in employment, they can and will regardless of whether this is true or not.

    Retail store closures have tripled so far this year, with 8,600 stores projected to close in total in 2017. This far surpasses the previous record of 6,163 stores in 2008 at the onset of the credit crisis.

    This incredible implosion in brick and mortar business is often blamed on the rise of internet retail, or the "Amazon effect." This is yet another lie. Total e-commerce sales only accounted for 8.5 percent of total U.S. retail sales in the first quarter of 2017 according to the commerce department. This means that internet retail is nowhere near large enough to account for the considerable loss in standard retail business. Thus, we must look to the stagnation in consumer spending to explain the situation.

    Auto sales continue their steady decline in 2017 as the short lived boom now faces death as ARM-style loans turn over and new buyers become scarce.

    U.S. home ownership rates have collapsed since 2007. More households are renting than at any time in the past 50 years.

    U.S. household debt has now hit levels not seen since 2008, just before the credit crisis.

    Those looking for government spending to save the day should probably look elsewhere. Nearly 75 percent of every tax dollar goes towards non-productive spending on the part of government.

    I could go on and on — it is simply undeniable that nearly every sector of the U.S. economy is in steady decline compared to pre-2008 levels. This instability in the fundamentals will eventually weigh down and crash stock markets, bond markets, currency markets, etc. Such markets are the last vestige of the U.S. economy still giving the appearance of health.

    So, there will come a time, probably sooner rather than later, when the piper will have to be paid and someone will have to take the blame for our fiscal non-recovery. The international banks and central banks are certainly not going to volunteer for this even though they are the real perpetrators behind our incessant financial rot. But how do they avoid accepting responsibility?

    First, by setting the stage for another scapegoat. As I warned for months before the 2016 election, Donald Trump is the perfect target for a redirection of blame for a market crash. He has even been avidly attempting to take credit for the current market bubble, making it easier for the banks to lay blame in his lap when the entire edifice crumbles.

    Second, by warping public focus away from the economic collapse altogether and presenting them with a seemingly more dire threat.

    In Syria, this has developed into potential conflict with the Syrian government, Iran and Russia. The establishment could at any moment initiate an attempt at regime change. Not necessarily with the intent to actually unseat Bashar al-Assad, but with the intent to create as much chaos as is necessary to terrify the unwitting citizenry.  While Donald Trump has been recently credited with "ending the regime change program" in Syria by ending the CIA training and funding pipeline to "moderate rebels", this by no means equals an end to the plan to unseat Assad.  ISIS has moved west into Europe, and now direct action against Assad by western governments is more probable.  The Turkish government recently leaked the locations of multiple US bases within Syria, indicating that troops will remain on the ground and that the fractured country will continue on the same path of instability.

    The next and most likely scenario for distraction is North Korea. With North Korea's latest ICBM missile test, the perceived threat to the U.S. is now complete. The idea of North Korea striking the heart of America with a nuclear weapon is enough for many people to rationalize U.S. strike operations. That said, an invasion on the part of the U.S. makes little sense. Any strike by North Korea would be met with immediate nuclear annihilation; meaning a ground invasion to "prevent" an attack is unnecessary and might actually provoke a nuclear response rather than defuse one. Of course, it is likely that the goal in North Korea is not to prevent a nuclear event, but to once again catalyze chaos and confusion while the global economy and more importantly the U.S. economy sinks further into oblivion.

    The US government has just issued a travel ban to North Korea starting September 1st.  They have asked all Americans already visiting the country to leave immediately.

    Next, Russian tensions are reaching a new level, as the U.S. Senate has passed new sanctions based on nothing but fabricated hearsay, and Donald Trump proves me right once again with his signature on the same sanctions, calling the legislation "flawed" while at the same time displaying overt cooperation with the establishment agenda. The Russian response has so far been to expel hundreds of U.S. diplomats from their country, and warn that the sanctions constitute the beginning of a "trade war".

    My readers know well that according to the evidence I view the East/West conflict to be farcical and theatrical, but this does not mean there will not be real-world consequences to the "little people" caught in the engineered crossfire. I believe this will culminate not in a shooting war, but in an economic war. While the international financiers constructed our bubble economy and will benefit from its failure, it will be eastern nations (and Trump) that receive much of the blame for the destruction of these bubbles.

    Finally, an uncomfortable level of discord has been sparked the past month between India and China, both nuclear powers, over a border dispute in a remote valley connecting India to its ally, Bhutan.  My feeling is that this is leading to diplomatic breakdown, but not necessarily an open war.  Unfortunately, the trigger point stands ready to be exploited by globalists any time they need greater distraction.  And, to be sure, a war between two of the world's largest economies would wreak absolute havoc and provide an excellent diversion for a fiscal crash already set in motion by international banks.

    I do not see the timing of heightened geopolitical tensions in 2017 as coincidental. It appears to me that these events are perfectly organized with maximum distraction in mind as we hit the top of perhaps the most massive stock and bond bubbles in modern history. The effectiveness of the smoke and mirrors will depend on the ability of liberty proponents to keep our analytical teeth sunk into the jugular of the establishment elite, as well as our ability to remind the public that these conspirators are the true criminals behind our national and international pain. The more extreme the geopolitical disaster, the more frightened people will become and the harder it will be for us to do our job. Knowing the level of difficulty involved in preventing the terror and madness of the mob, it is not a struggle I look forward to in the slightest.

  • July Payrolls Preview: Smooth Sailing But Watch Out For Cars

    At 8:30am on Friday, the BLS is expected to announce that in July the US created 180K jobs, down from 222K in June though still in line with the 6-month average of 180K, with the biggest downside risk a slowdown in durable manufacturing payrolls as auto production slumped.

    Sellside expectations:

    • UBS: 175K
    • Barclays: 175K
    • HSBC: 175K
    • SocGen: 180K
    • TD Securities: 190K
    • Goldman Sachs: 190K
    • Oxford Economics: 195K
    • Fathom Consulting: 210K
    • RBC: 220K

    The unemployment rate is expected to decline to cycle lows of 4.3% from 4.4%, although the main focus will be on average hourly earnings which are forecast to slow to 2.4% Y/Y from 2.5% last month, up 0.3% sequentially, for an indication whether wage growth is finally picking up (which judging by yesterday’s Amazon job fair which showed tens of thousands of people lining up desperate for minium wage jobs, is not happening).

    As RanSquawk notes, overall job growth has remained solid, despite a number of Fed officials forecasting a bigger slowdown as the US is very close to full employment. Most Fed officials have stated that the Fed is pretty much there in regards to their employment mandate, but Kashkari and Brainard have both been more cautious with Brainard saying that she is not confident that the Phillips curve can be counted on to return inflation to target and that there remains a question about whether an unemployment rate of 4.4% still meant there was slack left in the labour market.

    As mentioned above, average hourly earnings will be one of the key data points to watch as wage growth has been subdued and shown no signs of surging above 3% recently, a level consistently seen pre-crisis. However, even if earnings come in softer than expected, it’s not expected to alter the course of the Fed anytime soon: the US central bank has signalled that an announcement on the beginning of balance sheet reduction will likely come in September, with one more rate hike pencilled in for December. With at least one more payrolls report before that meeting, plus more data on inflation, this report could be one that doesn’t alter the outlook a great deal. In other words, any traders waiting for tomorrow to start their vacations, can do so one day early.

    Sectoral employment and wages:

    Labor Supply:

    The participation rate has been inching up. Slow wage growth also hints at less labor market tightness than the low unemployment rate would seem to suggest. The past year’s slower outflows from the labor force are consistent with that increasing supply. Through the end of last year, re-employment rates for the longterm unemployed were rising fairly rapidly—a renewed source of supply—but that improvement appears to have stalled.

    Possible Reporting Quirks:

    The July pay period ended on the 15th and the month also had two fewer workdays relative to June, both of which should boost seasonally-adjusted wage growth at the margin. On the negative side, Goldman notes the possibility of mean-reversion in the construction and information industries following above-trend wage growth in recent months. While wage growth has disappointed this year across multiple measures, it is likely that much of this weakness has been concentrated at the high-end, whereas wage growth in the bottom-half of the income distribution appears relatively high due to minimum wage increases and appears to be accelerating. To the extent that wage growth is more persistent in the lower and middle tiers of the income distribution, this would suggest scope for resilience in aggregate wage growth going forward.

    Recent Labor Market Indicators:

    Jobless claims continue to remain near a 44-year low with the four-week average at just 241,750. The headline figure has remained below 300K – a traditional indicator of an improving labour market – for over 2 years, the longest streak since the early 1970s. The most recent employment components of the dual ISM reports have shown employment growth continuing in July, albeit at a slower pace than June. The manufacturing survey showed employment dropping to 55.2 from 57.2 with the non-manufacturing survey dropping to 53.6 from 55.8. Nevertheless, both were still over the 50.0 threshold, indicating expansion.
    The July ADP employment report was slightly weaker than expected but still strong at 178K. The figure bodes well from Friday’s official release but the correlation between the two reports is not one to usually write home about, RBC notes that it does a better job of predicting the official figure in July, “especially since the methodology shift back in 2012”.

    Factors for a stronger report:

    • Service sector surveys. Service-sector employment surveys were mixed in July but remained at generally high levels. While the ISM non-manufacturing employment component fell 2.2pt to 53.6, our overall non-manufacturing employment tracker edged up 0.1pt to 54.8, a two-year high. This reflected gains in the Markit, New York Fed, and Richmond Fed employment subindices that were partially offset by a drop in the Dallas Fed and ISM Non-Manufacturing measures. Encouragingly, the Conference Board labor market differential – the difference between the percent of respondents saying jobs are plentiful and those saying jobs are hard to get –strengthened 2.5pt to 16.1, a 16-year high.
    • Evolving July seasonality. July nonfarm payrolls have risen by over 200k in each of the last three years (in both the first and final vintages), and growth has exceeded the 6-month average in both of the last two years. While one cannot rule out coincidence, there is a possibility that payrolls seasonality is evolving towards increased net hiring in July. On a non-seasonally adjusted basis, nonfarm employment typically declines by one million jobs or more in July, reflecting the departure of public and private education employees at the end of the school-year. Continued sharp seasonal declines in these categories each July have masked what appears to be a pickup in net hiring in private payrolls ex-education services (see left panel of Exhibit 1). So far, the nonfarm payrolls seasonal adjustment factors have appeared to lag this evolution, suggesting scope for solid seasonally adjusted job growth in tomorrow’s report.

    Factors for a weaker report:

    • In its modestly negative preview, UBS – which expects a payroll number of 165K – notes that in June local government and healthcare payrolls rose unusually quickly, and retail jobs swung from falling to rising. The Swiss bank doubts those gains were repeated, and allows for some slowing in durable manufacturing payrolls as auto production declined. It also expects that with softer factory employment, average hourly earnings probably rose only 0.1%m/m, slowing 0.2pt to 2.3%. Furthermore, UBS notes that among the indicators of labor supply: —participation, labor market flows, and slow wage growth—hint that the jobs market is not as tight as the unemployment rate suggests. In turn, the pace of payrolls, faster or slower, is more likely an indication of changes in labor demand than supply.
    • initial claims for unemployment insurance benefits edged modestly higher, averaging 244k during the four weeks between the June and July payroll survey periods, up from 243k during the June payroll month and the cycle low of 241k in the May period. Additionally, continuing claims rose by 20k from survey week to survey week, similar to the 21k increase in the weeks leading up to the June payroll period.
    • Job availability. The Conference Board’s Help Wanted Online (HWOL) report showed a 3.3% pullback in July online job postings – its largest drop in five months. We place limited weight on this indicator at the moment, in light of research by Fed economists that suggests the HWOL ad count has been depressed by higher prices for online job ads. However, we note the possibility that the drop reflects a legitimate pull-back in labor demand.
    • Sharp slowdown in the auto sector: The manufacturing softness probably extended into July, and auto production cuts are an ongoing risk. Production cutbacks in auto manufacturing in July probably resulted in temporary layoffs as well as some drag on average hourly earnings.

    Neutral factors:

    • Manufacturing sector surveys. While headline manufacturing sector surveys softened on net in July, the employment components generally held up well. The ISM manufacturing employment component pulled back 2pt from elevated levels (-2.0pt to 55.2), and other survey data were mixed, with sequential increases in Markit, Richmond Fed, and Dallas Fed employment subindices, but declines in the Chicago PMI, Philly Fed, and Empire Fed employment measures. Our overall manufacturing employment tracker edged down 0.3pt to 55.7, the lowest since February but still well above the 2016 average of 49.4. Manufacturing payroll employment edged up 1k in July and has increased 9k on average over the last six months.
    • ADP. The payroll processing firm ADP reported a 178k increase in private payroll employment in July. While this was 12k below consensus expectations, the pace of June growth was revised up by 33k, providing mixed signals for tomorrow’s employment report. While large surprises in the ADP report have tended to predict the subsequent nonfarm payroll surprise, a 12k miss is probably not large enough to qualify. Moreover, this relationship may have deteriorated since ADP’s methodological revamp last October as shown in Exhibit 2, which plots each ADP surprise (vs. consensus based on first-reported ADP) against the subsequent nonfarm payrolls surprise.

    Market Reaction

    As is often the case with the employment report, a knee-jerk reaction is often observed following the headline figure. If a miss is seen then initial USD weakness could be observed with treasuries picking up and vice-versa on a stronger-than-expected headline. However, as the market digests the report, you often see a retracement depending on the other components of the report

    What the Banks Are Saying

    • BARCLAYS (EXP. 175K): We expect nonfarm payrolls to rise 175k, with a 170k increase in private payrolls. July will be the first “clean” reading on labor markets since April, as the timing of the May survey week and the return of college-aged workers to the labor force, in our view, distorted May and June payrolls. The average gain in payrolls in 2017 has been 179k, and our forecast assumes this trend rate of hiring continued in July. Elsewhere in the report, we expect the unemployment rate to decline one-tenth, to 4.3%, and average hourly earnings to rise 0.3% m/m and 2.4% y/y. Finally, we expect no change in average weekly hours at 34.5.
    • CAPITAL ECONOMICS (EXP. 222K): We estimate that overall non-farm payrolls followed the 222,000 gain in June with another healthy 200,000 increase in July. The downward trend in initial jobless claims shows little signs of abating, while the recent strength of temporary help employment is also a positive sign. In addition, the employment index of the Markit Composite PMI rose to a seven-month high in July. Another strong month of employment growth should have been enough to push the unemployment rate back down to 4.3% in July, and the surveys suggest it will fall even lower. Meanwhile, although we have pencilled in a stronger 0.3% m/m gain in average hourly earnings, base effects probably dragged the annual growth rate back down to 2.4%. But if the unemployment rate does continue to fall, wage growth should come under some renewed upward pressure before long.
    • FATHOM CONSULTING (EXP. 210K): We expect next Friday’s employment report to show that 210,000 net new nonfarm payrolls were added in July. This is slightly higher than the consensus estimate of a gain of 180,000. We forecast a 0.3% increase in average hourly earnings in July, but given the 0.4% gain in average hourly earnings in July last year, this would be consistent with the annual rate of earnings growth slipping from 2.5% to 2.4%. Such meagre earnings growth is linked to low productivity growth: with employees’ output per hour growing very slowly, workers are finding it hard to negotiate higher wages, despite the low unemployment rate.
    • GOLDMAN SACHS (EXP. 190K): We have argued that the US economy will soon move past full employment, and that the funds rate needs to rise in order to prevent an overheating that would be difficult to reverse without a recession. But the recent weakness in the inflation and wage data poses a challenge to our view. After all, full employment is typically defined as the level of resource utilization that generates wage and price pressures consistent with the Fed’s target. So the shortfall could mean that current estimates of a near-zero output and employment gap will prove wrong. Nevertheless, our conviction that we are at full employment is relatively high. First, other labor market indicators—including job openings, quits, reported skill shortages, and household assessments of job availability—are if anything indicative of an even stronger labor market than the official unemployment rate. Several of these indicators also cast doubt on the notion that labor force participation remains cyclically depressed, as does the fact that the participation rate is now slightly higher than the projection from a remarkably prescient 2006 Fed staff study. Second, we do not view the recent price and wage data as a “red flag” indicating additional slack. Core price inflation is only loosely related to labor market slack as the “price Phillips curve” is quite flat. The “wage Phillips curve” is steeper, making it in principle more suitable for backing out slack. But the recent slowdown has come mostly in areas where wage growth is statistically somewhat less sensitive to labor market slack. Moreover, surveys of wage growth have continued to accelerate and now imply a 3% pace, close to the maximum rate that we think is sustainable in the longer term. Based on this, we expect wage growth to rebound before long. In the near term, Fed officials will not need to take a strong view on these issues. Balance sheet runoff in September/October seems very likely barring a major market shock, while a September rate hike is very unlikely. So the next big date is the December meeting, when the committee needs to decide whether to resume the hikes. At least based on our analysis of the labor market, the answer is likely to be yes.
    • HSBC (EXP. 175K): The average monthly increase in nonfarm payrolls in the first half of 2017 was 180,000. Retail employment growth has slowed this year, but many other key industries continue to create jobs at a steady pace. We forecast nonfarm payrolls increased by 175,000 in July. Wage growth has picked up only modestly in recent years, even as the unemployment rate has continued to fall. We forecast a 0.3% m-o-m rise in average hourly earnings in July. The year-on-year rate could slip to 2.4%, down from 2.5% in June. We forecast the unemployment rate fell to 4.3% in July from 4.4% in June.
    • OXFORD ECONOMICS (EXP. 195K): We have July Payroll rising 195,000 on the heels of a 222,000 gain in June. Our July forecast is just above average monthly payroll growth in the 6-months ending June (+180,000). We have the July unemployment rate dipping back down to 4.3% after rising to 4.4% in June. We also see average hourly earnings in July rising 0.3% after rising by 0.2% in June.
    • RBC (EXP. 220K): Following a relatively weak start to the year (which, again, was inconsistent with nearly every other labor market metric), we expect payroll growth to remain on the firm side near-term. Accordingly, we look for headline and private NFP prints of 220K and 205K for July, respectively. This pace of payroll growth would be more than enough to elicit a sharp decline in the unemployment rate (assuming we got commensurate gains in the Household survey), but we are cognizant that with sentiment on the labor backdrop at 16-year highs (look at the Conference Board’s labor differential sitting at +16.1%), we could see some firming in the labor force beyond normal population growth (i.e., from folks coming back in from the sidelines). So we are penciling in just a modest downturn in unemployment, to 4.3% from 4.4% prior.
    • TD SECURITIES (EXP. 190K): We expect a solid 190k print, taking into account risk for a sharp pullback in government jobs as labor market indicators on balance point to a 200k+ gain. A lower unemployment rate (4.3% vs 4.4%) and solid 0.3% gain on avg hourly earnings should garner a hawkish market reaction, though due to base effects in the latter, the y/y pace on wage growth should be little changed to lower.
    • UBS (EXP. 175K): We continue to forecast headline payrolls up 175k in Friday’s employment report (consensus 180k) and private payrolls up 165k (consensus 180k). We project slightly softer average hourly earnings growth (+0.1%m/m vs consensus 0.3%), and the unemployment rate falling 0.1pt to 4.3% (consensus 4.3%). ADP reported private payrolls up 178k in July, little different from the consensus forecast for private payrolls in Friday’s employment report (180k) or our own forecast (165k). Services payrolls continued to rise on trend, but payrolls for goods-producing industries decelerated sharply, with some slowing in construction and natural resources and a decline in factory payrolls. In our forecast for BLS payrolls, we have incorporated a drag from the auto sector, where summer shutdowns appear more extensive than usual. At the margin, the ADP report supports that drag. ADP manufacturing payrolls fell 4k in July versus +17k per month on average in H1. That said, it’s hard to take too much from the ADP report. On average, ADP’s initial estimate of private payrolls has overstated the BLS estimate by 50k per month this year, but in June it instead understated by 29k. The large errors, and the low probability of guessing when they switch from positive to negative, make ADP fairly unreliable as an indicator for the BLS measure.

  • 'Inconvenient' – Al Gore's Home Devours 34 Times More Electricity Than Average U.S. Household

    Authored by Drew Johnson via The Daily Caller,

    On Friday, Al Gore’s sequel to “An Inconvenient Truth” – “An Inconvenient Sequel: Truth to Power” – arrives in movie theaters across the country. But there’s another inconvenient sequel worth noting and, like most sequels, this one is even worse than the original.

    Gore’s hypocritical home energy use and “do as I say not as I do” lifestyle has plunged to embarrassing new depths.

    In just this past year, Gore burned through enough energy to power the typical American household for more than 21 years, according to a new report by the National Center for Public Policy Research.

    The former vice president consumed 230,889 kilowatt hours (kWh) at his Nashville residence, which includes his home, pool and driveway entry gate electricity meters.

     

    A typical family uses an average of 10,812 kWh of electricity per year, according to the U.S. Energy Information Administration.

    It gets worse.

    Last September alone, Gore devoured 30,993 kWh of electricity. That’s enough to power 34 average American homes for a month. Over the last 12 months, Gore used more electricity just heating his outdoor swimming pool than six typical homes use in a year.

    The National Center for Public Policy Research obtained the environmentalist’s energy-usage information from individuals at the Nashville Electric Service, the utility that provides electricity to Gore’s home and much of Middle Tennessee.

    In 2007, the day after Gore won an Academy Award for “An Inconvenient Truth,” I revealed Gore’s hypocritically high electric bills. In some months, I discovered, his residence gobbled up to 20 times more electricity than the average American household.

    When Gore’s inconvenient truth became public knowledge, he promised to change his ways and gave his property a green makeover. Gore added 33 solar panels at a princely price tag of approximately $60,000. He also upgraded the home’s windows and ductwork, replaced the insulation, put in a driveway rainwater collection system, and installed a geothermal heating system.

    The Nobel laureate also heroically went to the trouble of replacing his incandescent light bulbs with compact fluorescent ones.

    In total, the renovations are estimated to cost well over $250,000.

    But the home’s green facelift wasn’t enough to offset Gore’s colossal energy consumption.

    Despite spending more than a quarter-million dollars on making his home more environmentally friendly, his energy consumption is higher than ever.

    Those 33 solar panels generate about 12,000 kWh of electricity a year – way more than enough energy to power a typical American household. Gore is such an enormous energy hog, however, that his gigantic rooftop solar array produces just 5.7 percent of the electricity he uses in his home, or enough to power his home for a measly 21 days a year.

    Gore also claims that his environmental sins are washed clean because he contributes to Green Power Switch, a scheme in which customers can donate extra money beyond the cost of their power bill to support green energy efforts. The money goes to the Tennessee Velley Authority (TVA), the source of NES’ electricity, to fund renewable energy projects.

    Gore even told the “TODAY Show” that his home uses 100 percent renewable energy, but that is an outright lie.

    Just because Gore donates to the Green Power Switch program doesn’t mean he receives green energy at his home. Gore gets the same electricity every other Nashville resident receives – 87 percent of which comes from nuclear, coal and natural gas power plants. About 10 percent of Gore’s electricity comes from the TVA’s environmentally devastating dams. Only a puny 3 percent comes from renewable sources such as solar and wind.

    Not counting the $432 a month Gore spends on his Green Power Switch indulgences, the green extremist shells out about $22,000 a year to pay his electric bills.

    Spending more than $1,800 a month on an energy bill would sink most Americans, but it’s pocket change to Gore. He has manipulated environmental concerns into a big business. When his term as vice president ended in 2001, Gore’s net worth was less than $2 million. Today, Gore is worth an estimated $300 million.

    Gore apologists argue that his large home is the reason for his massive energy consumption. That’s not true, either.

    According to Energy Vanguard, a company devoted to making homes more energy efficient, a residence that uses less than 10 kWh of electricity per square foot each year is considered “efficient.”  Homes that gulp down more than 20 kWh of electricity per square foot each year are labeled “energy hogs.” Gore’s house consumed 22.9 kWh per square foot in the past 12 months making him a huge energy hog by any measure.

    Astonishingly, Gore also owns at least two other homes – a penthouse in San Francisco and a farmhouse in Carthage, Tennessee – so his carbon footprint is even larger than it appears.

    The former veep has become a prophet of environmentalism, a religion he helped create. But he is a false prophet. He appears to exploit his followers for recognition and money, and it’s unclear whether he actually believes a word he says.

    Al Gore is happy to talk the talk, but has proven completely unwilling to walk the walk when it comes to living a green lifestyle – and that should make every person question the messenger as well as the message.

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Today’s News 3rd August 2017

  • Americans Spend The Most For Health Care, Still Die Young

    The Organization for Economic Cooperation and Development just released its latest batch of data seeking to measure the quality of health care in each of its member states.

    The rankings show that although the US spends more per capita on health care than any of the 34 other OECD member states, its average life expectancy of 78.8 years ranks is among the lowest found in the group, according to a Bloomberg analysis. 

    According to the data, the US ranks near the bottom compared with its developed-country peers in prevalence of infant mortality and maternal mortality, as well as deaths from cancer and cardiovascular disease.

    “It has the fourth highest infant mortality rate in the OECD, the sixth highest maternal mortality rate and the ninth highest likelihood of dying at a younger age from a host of ailments, including cardiovascular disease and cancer.

    There’s also a surprising disconnect between how healthy Americans believe they are, and how healthy they really are.  

    “The U.S. is the most obese country in the OECD, leads in drug-related deaths and ranks 33rd in prevalence of diabetes. Yet 88 percent of Americans say they are in good or very good health, according to OECD statistics. Only 35 percent of Japanese, who have the highest life expectancy in the OECD, regard themselves as healthy or very healthy.

    Bloomberg attributes the gap to the America’s reliance on “voluntary” health insurance, saying that OECD countries that rely on public health-care plans have much higher life expectancy, presumably because patients in these countries are incentivized to seek preventative care.

    “Unlike other countries in the OECD, the U.S. mostly relies on voluntary health insurance to fund health-care costs. Public health insurance, such as Medicare and Medicaid, accounts for 27 percent of coverage. By contrast, the 10 countries with the highest life expectancy depend on voluntary insurance for an average of less than 6 percent of their costs, and government spending for nearly half.”

    Pharmaceuticals are of the biggest drivers of the US's high health-care costs: The US spends more per capita on prescription medicines and over-the-counter products than any other country in the OECD.

    The data arrive as President Donald Trump and Senate GOP leaders consider their next move in a battle to repeal and replace Obamacare. Their latest effort, a so-called “skinny repeal” bill that would’ve rolled back some of the more controversial aspects of Obama’s landmark health initiative was rejected by a one-vote margin when Sen. John McCain, who’s suffering from brain cancer, surprised his peers by voting “no” in an early-morning vote last week.

    Health insurance costs are on track to rise much more quickly than inflation as Trump considers using executive actions to ditch key payments to Obamacare insurance companies if a repeal and replace bill is not passed. Insurers in five states requesting premium increases of more than 30%, using this “policy uncertainty” as an excuse the blame the president.

    With so much “uncertainty” surrounding the future of health-care in the US, maybe Bernie Sanders will succeed in passing a single-payer initiative that he’s vowed to introduce. Of course, the tax increases that would be required to implement the legislation might trigger a few unintended health crises of their own once taxpayers see the bill.

    The complete rankings can be found below:

  • Forbes Says Self-Reliant Homesteaders Are "Delusional" And "Mooching" Off "Civil Society"

    Authored by Daisy Luther via The Organic Prepper blog,

    It’s always interesting reading when someone smug and sanctimonious writes a clueless diatribe about another group of people being smug and sanctimonious. So when I saw that an economist for Moody’s and Forbes had written an op-ed calling self-reliant homesteaders “delusional,” I knew I’d be in for some misinformed hilarity.

    The article, entitled, “Dear Homesteaders, Self-Reliance Is a Delusion” was published a couple of days ago on the Forbes website. You’ll be forewarned that the article won’t be deep in the first paragraph, when the author presents his claim to knowledge about self-reliant living comes from the fact that he is “a big fan of shows about doomsday preppers, homesteaders, survivalists, generally people who live off the grid.”

    And the well-informed opinion of this arbiter of self-reliance?

    …there’s a central delusion in these shows that is never far from my mind when I’m watching these shows: off the grid people are not self-reliant, but instead are mooching off of the civil society, government, and safety net the rest of us contribute to…

     

    The people in these shows often describe a very romantic vision of the lives they have chosen the ethos underlying it. They describe themselves as fully self-reliant, and criticize the rest of society as being dependent and lacking in this self-reliance. It is morally superior, the story goes, to provide for yourself, take care of your own needs, and often, be prepared to survive if society collapses.

    First, let me segue a little bit and tell you about the author. According to his bio on Economy.com:

    Adam Ozimek is an associate director and senior economist in the West Chester office of Moody’s Analytics. Adam covers state and regional economies, as well U.S. labor markets and demographics. Prior to joining Moody’s Analytics, Adam was Senior Economist and Director of Research for Econsult Solutions, an economics consulting company. He received his Ph.D. in economics from Temple University and his bachelor’s degree in economics from West Chester University.

    So based on this, I’m going to guess that homesteading and off-grid living aren’t his jam. I mean, he might head down to the Westtown Amish Market there in Pennsylvania, but I’d be willing to place money on that being his closest brush with any real, live, self-reliant homesteaders.

    His ill-conceived argument seems to be mostly focused on health care. He is baffled about what will happen if a homesteader becomes ill or gets injured.

    ” On Live Free Or Die, a man in his mid sixties named Colbert lives in the Georgia swamps alone….I always wonder what will happen if he slips and falls, and can no longer provide for himself. He’ll likely end up receiving hospital treatment paid for with Medicare, and perhaps end up in an assisted living center paid for by Medicare as well.”

    Or…

    “Another example from Live Free or Die is Tony and Amelia,  a couple who live on a simple, off-the-grid homestead in North Carolina. When I watch them I wonder what would happen if one became extremely sick, and simple, off-the-grid home medicine couldn’t treat them. Would they say “we’ve chosen our fate, and now we die by it”, or would they seek treatment in a hospital they couldn’t afford which would be covered by the hospital’s charity care or perhaps Medicaid?”

    One thing that Dr. Ozimek is missing is the fact that most homesteaders are tax-paying citizens. Does he think that living on a homestead exempts one from property taxes? Does he suppose that their vehicles don’t have license plates or that their fuel is purchased without the requisite state gasoline tax? Or that maybe they have some special card that lets them buy things like feed without paying sales tax? Perhaps homesteading equipment like tractors and tools and off-grid appliances are likewise purchased without any gain to “society.”

    As well, he’s under the assumption, based on his vast body of knowledge gleaned from watching TV, that self-reliant homesteaders don’t make any money or have any insurance. I know homesteaders who are retirees from other jobs who have a fine pension and excellent health insurance. I know others who make a good living with their homesteading endeavors. And there are still others who live simply after working for years to pay cash for their homestead, or families in which one spouse works a full-time job to support the homestead.

    But, Ozimek, whose informed point of view comes from only the most extreme of the group featured on for-profit-and-ratings television shows, doesn’t understand that. He continues to espouse the superiority of the non-agrarian lifestyle:

    If we all lived “self-reliant” lives like Tony often implores us, spending most of our time on basic agricultural subsistence, then modern hospitals couldn’t exist. It’s only because most of us choose to not live agrarian “self-reliant” lifestyles that this care would be available to Tony, Amelia, and perhaps someday, their children. And what if both of them become too injured to work the land anymore? Would they starve to death, or would they survive off of the social safety net our government provides, like food stamps?

     

    In fairness to Tony, Amelia, and Colbert, perhaps they would refuse the modern medical care and modest safety net in the case of an accident or illness, and would simply choose to die. I don’t think most homesteaders would, but we don’t know.

    Yeah, because homesteaders can’t do anything but homestead.

    Some people are producers and other people are consumers.

    Ozimek thinks that someone with the extensive skills required to live off the grid would be completely unable to find employment and would have no option but to become a welfare recipient should their homesteading endeavor fall apart.

    What he’s missing is that his cushy “civilized” lifestyle is completely reliant on the type of people he scorns. He forgets that someone, somewhere is growing his food. Someone, somewhere, is assuring that his energy reaches his home. Someone is ensuring that his plumbing works, someone is repairing his furnace if it breaks, and someone is transporting the goods he purchases to the store, where someone will sell him those goods.

    But, that’s what happens when someone is only a consumer and not a producer. They think that producers are somehow less worthy, and that if they couldn’t produce what the consumers consume, they’d be totally out of options.

    The cool thing about self-reliant homesteaders is that we aren’t one-trick ponies. We can produce all sorts of things and provide all kinds of services. It’s called “having skills.”

    Most self-reliant homesteaders aren’t reality TV stars.

    Since his entire argument is based on the tv programs he watches, the author doesn’t understand what self-reliance means to those of us who aren’t reality television stars.

    It means:

    • We provide a lot of our own food because we prefer to know where it comes from.
    • We raise our own meat because we object to the way factory-farmed animals are treated.
    • We use our own sources of power because maybe we’re green at heart or maybe we just prefer not to be tied into the “smart” grid.
    • We learn to make our own products for cleaning, bathing, and making life pleasant because we don’t want to bring chemical toxins into our homes.
    • We’d rather skip the middle man and spend our time actually making the things that most people work for hours to purchase from someone else who made them.
    • We are far less likely to spend time at the doctor’s office because a) we aren’t huge fans of pharmaceuticals, b) we can take care of small things ourselves, and c) our healthier lifestyle means we tend to be less likely to be ill. (Although this isn’t always the case – even self-reliant homesteaders can get sick. And when we do, we use our insurance or we pay for it with savings. Just like everyone else.)
    • We don’t need as much money because we just don’t need as much stuff.

    But to someone who buys all of their food and other goods from the store and gets all of their medicine from the pharmacy, it can be difficult to understand the satisfaction that comes from evading those places.

    But, safety…

    Of course, if self-reliant homesteaders pass all of the Forbes columnist’s other tests, he can still dismiss their achievements by going full-blown statist.

    Yet even if one refuses help and care, however, they still benefit from the modern civil society thanks to the private property protections, rule of law, and military that provide them with safety and security.

     

    Many off-the-grid folks like to fantasize that their personal fire arms collection and self-defense skills are actually why they are safe. But how far would this take them in a society without the rule of law, an effective government, and law enforcement? The homesteader who is confident their security is in their own hands should go live off-the-grid in Syria and find out how far self-protection takes them.

     

    And it’s not just police and a military that keep homesteaders safe. It’s also widespread prosperity. In the developed world, a basic education is available to all, and most people who want a job can find one. Living in a prosperous, modern economy means that homesteaders can take a good bit of their own safety from violence for granted and roving bandits are not likely to take their homes from them.

    So, by the mere fact of our existence in this country, according to Ozimek, none of us are self-reliant. It boggles the mind that this fellow successfully wrote and defended a doctoral thesis.

    This is how reliant people justify their reliance.

    I guess what it boils down to is that this is what helps Ozimek and people like him justify living their lives without any practical skills. If things did go sideways in a long-term kind of way, who is going to be better off: a person who can claim a Ph.D. in economics or someone who can actually produce food?

    The fact is, the less we require from society, the less power that society has over us. Our lifestyles give us some distance from the hustle and the bustle. We don’t have to make as much money because we don’t live in the consumer matrix that engulfs so much of society. We are content to live simply instead of hustling from one non-productive activity to another.

    Most of us don’t eschew all the benefits of living in a modern society. It doesn’t have to be all or nothing. Having a corporate job doesn’t preclude growing your own tomatoes any more than having a herd of goats precludes having health insurance.

    There is a joy in making a meal that came entirely from your own backyard that these people will never get to experience, and having spent many years in the corporate world, I can tell you which provides the most satisfaction for me.

    In this society where nearly everyone is digitally connected 24 hours a day, it’s nice to step away from all that and break the addiction to constant stimulation. It’s nice to not always be trading the hours in your day for the things that someone else made while you were working on something that, if we’re being honest, is kind of pointless in the grand scheme of survival.

    If Dr. Ozimek wants to talk about delusions and superiority, he could find all the inspiration he needs by taking a look in the mirror.

  • Russia TV Reporter Sucker Punched During Live Broadcast

    A video of a drunk man punching a Russian TV journalist in the face during a segment on Paratroopers’ Day celebrations is going viral.

    Nikita Razvozzhayev, a correspondent with Russian news channel NTV, was confronted Wednesday by the intoxicated man in Gorky Park, Moscow's most popular recreational area, according to a report in the Telegraph.

    In the video, the attacker can be seen interrupting Razvozzhayev's live report by walking into the camera frame and shouting (in Russian) "This is our country! We will conquer Ukraine!"

    Razvozzhayev can be heard politely asking the man to be quiet; instead, the man decked him in the face.

    The broadcast then switched back to the studio, where the anchor told viewers that there were “problems” on the ground, before saying she hoped her colleague was ok.  

    On Wednesday, US President Donald Trump signed a bill expanding US sanctions on Russia. The bill prevents him from acting unilaterally to remove certain sanctions on Russia and adds sanctions against Russia, Iran and North Korea. The bill passed both chambers of Congress with overwhelming bipartisan support, increasing the probability that Congress would vote to override should Trump veto the bill.

    However, in a signing statement attached to the bill, Trump criticized the legislation as “flawed,” saying he would sign it "with reservations" about its impact and the constitutionality of some provisions.

    Back in February, during her first appearance as UN Ambassador, former South Carolina Gov. Nikki Haley, slammed Russia’s backing of rebels in Eastern Ukraine, saying that while the US would like to improve relations with Russia, “the dire situation in eastern Ukraine is one that demands clear and strong condemnation of Russian actions." Russia has blamed the escalation on the Ukrainians.

    The controversial sanctions bill is already straining the relationship between the US and one of its staunchest allies, the European Union.

    Germany and Austria, two of Russia's biggest energy clients in Europe, criticized the bill shortly after it passed the Senate in a 98-2 vote, saying they could affect European businesses involved in piping in Russian natural gas. European Commission President Jean-Claude Juncker said Wednesday that the EU is ready to retaliate should the sanctions against Russia affect European companies, according to Bloomberg.

    Circling back to the assault, the Telegraph reported that it wasn't immediately clear whether the reporter’s injury was serious. The attacker, whose name wasn’t released, has been arrested. Police are investigating the incident. Paratroopers Day is meant to celebrate veterans and active duty airborne servicemen.

    Judging by the footage, the reporter maintained his poise while absorbing the blow, which was remarkable.

    We wonder: Do Russian journalism schools teach students how to take a sucker punch?

    Or maybe this drunk buffoon just doesn’t know how to throw one.
     

  • It's Been Exactly 80 Years Since The US Declared War On Weed – And Weed Is Still Winning

    Authored by Carey Wedler via TheAntiMedia.org,

    The government fought cannabis – and cannabis won.

    This Wednesday is the eightieth anniversary of the first major action the federal government took against cannabis in the United States, and eight decades later, that same federal government has still failed to reduce Americans’ consumption of the plant. In fact, it’s on the rise.

    Long before the era of prohibition, druggists used cannabis as a medicine. According to Origins, a joint publication by the Ohio State University and Miami University history departments:

    Cannabis, like opiates and cocaine, was freely available at drug stores in liquid form and as a refined product, hashish. Cannabis was also a common ingredient in turn-of-the-century patent medicines, over-the-counter concoctions brewed to proprietary formulas.

    Then, like today, it helped people relax:

    “The hashish candy advertised in an 1862 issue of Vanity Fair as a treatment for nervousness and melancholy, for example, was also ‘a pleasurable and harmless stimulant.’ ‘Under its influence all classes seem to gather new inspiration and energy,’ the advertisement explained.”

    Though in 1906 the passage of the Pure Food and Drug Act required patent medicine companies to list cannabis as an ingredient in products where it was present – and between 1914 and 1925 26 states passed laws prohibiting it — it wasn’t until 1937 federal authorities took substantial action.

    On August 2, 1937, Congress passed the “Marihuana Tax Act,” which was largely the result of anti-narcotic crusader Henry Anslinger’s mission to ban the plant. As Time has explained, creating a “tax” on the substance effectively outlawed it:

    As with the Harrison Narcotic Act in 1914, Congress deemed an act taxing and regulating drugs, rather than prohibiting them, less susceptible to legal challenge. As a result, the 1937 legislation was ostensibly a revenue measure. Just as the Harrison Act used taxation and regulation to, in effect, prohibit morphine, heroin and other drugs, the Marijuana Tax Act essentially outlawed the possession or sale of marijuana.”

    There are a variety of documented reasons for this ban. For one, Henry Anslinger was hysterically opposed to drugs. According to Origins, Anslinger,  a “former assistant commissioner of the Prohibition Bureau who headed the U.S. Treasury Department’s Narcotics Bureau from 1930 to 1962,” had previously advocated against a ban on cannabis because he believed it would be difficult to enforce (you don’t say!).

    Origins explained:

    However, Anslinger began to capitalize on fears about marijuana while pressing a public relations campaign to encourage the passage of uniform anti-narcotics legislation in all 48 states. He later lobbied in favor of the Marijuana Tax Act of 1937.

    Many of these fears were the result of calculated campaigns in the 1920s by prohibition activists, who were inspired by their “success” in banning alcohol. Further, William Randolph Hearst, the infamous publishing magnate, launched a campaign to associate cannabis with violence and the degradation of society.

    The association of murder, torture, and mindless violence with marijuana was not borne out by evidence or actual events but blossomed thanks to the vivid imaginations of the journalists charged with sensationalizing the tired story of drug use and addiction,” Origins noted.

    Similarly, Anslinger sounded the alarm on the alleged murders and rapes people committed while under the influence of the devil’s lettuce. In 1936, the film Reefer Madness, which now plays like a comedy, warned of the psychosis, violence, and dangers cannabis could bring about. The film warned of “marijuana, the burning weed with its roots in hell.” Much of the testimony advocating the 1937 tax act focused on these unfounded fears, and Anslinger led the way.

    How many murders, suicides, robberies, criminal assaults, holdups, burglaries and deeds of maniacal insanity it causes each year can only be conjectured,” he wrote in a 1937 article titled “Marijuana, Assassin of Youth.” (Today, some research suggests cannabis is not linked to increases in violent crime).

    The only witness who testified against the proposed ban was a representative from the American Medical Association, who congressmen dismissed (Anslinger also made an effort throughout his career to discredit research suggesting cannabis was not dangerous). The bill easily passed, undermining legal cannabis and also outlawed the production of hemp. President Franklin D. Roosevelt signed it into law.

    Another related driver behind the ban stemmed from racism within American society. Though cannabis had been used in medicines and hemp was used in industry to produce materials like rope (in the 1600s, colonists were actually required to grow it), Mexican immigrants introduced the practice of smoking the plant, which, “in turn, generated a reaction in the U.S., tinged perhaps with anti-Mexican xenophobia.” This fear spurred the 1906 regulation in the Pure Food and Drug Act and persisted into the 1930s.

    As Rolling Stone noted, there had been conversations in the United States not just about cannabis use, but other drugs, since the late 19th century.

    “But in the next 50 years, concerns about inebriation only translated into law if the substance wasn’t already controlled by a powerful industry, and if there was a perception, accurate or not, that a given drug was being used by poor people, immigrants, and people of color.

    As fears surrounding substance use grew, Rolling Stone observed, they dovetailed with racist stereotypes about the poor and minorities that assumed these groups were more likely to commit crimes, be lazy, and lack self-control when it came to “sex, violence, and intoxication.

    By 1952, Congress had passed the Boggs Act, which imposed strict mandatory sentences for various drugs, including cannabis. In the 1970s, the Controlled Substances Act was passed, placing drugs into “schedules” as we know them today.

    Though Nixon touted the war on drugs as an effort to save society, one of his advisers, John Ehrlichman, reportedly claimed in the 1990s that they pursued cannabis as an effort to criminalize black and anti-war activist. Other former advisers then claimed Ehrlichman was either joking or mistaken, but a cursory examination of arrests for cannabis shows the war on weed has disproportionately affected African-Americans though they use the substance at roughly the same rate as white Americans.

    Overall, according to the ACLU, cannabis arrests accounted for over half of all drug arrests between 2000 and 2010, and 88% of those were for possession.

    Though states across the country have begun to legalize cannabis both for medicinal and recreational use, the federal government continues to dig its heels in. The DEA recently insisted that even cannabidiol, a non-psychoactive cannabinoid, falls into the ominous Schedule I category, which also includes MDMA, LSD, and mushrooms but fails to cover highly dangerous and toxic legal drugs like alcohol and opioids.

    Many industries also continue to oppose cannabis legalization. The alcohol industry, the private prison industry, and prison guard and police unions all lobby against legalization.  Most notably, pharmaceutical companies fight to keep cannabis illegal, all while at least one opioid producer concocts its own synthetic cannabis with the approval of the same FDA and DEA that opted to keep cannabis a Schedule I drug.

    But against all these odds, cannabis continues to beat the government and establishment’s decades-long fight against it.

    Many Americans have outgrown the fears instilled in them through films like Reefer Madness and are beginning to accept a live-and-let-live mentality. Though more research on the plant is undoubtedly needed (and limited due to federal restrictions), preliminary scientific studies and anecdotal evidence suggest the plant has the potential to treat a variety of ailments, from epilepsy to nausea to Parkinson’s disease. Veterans are increasingly using it to treat PTSD.

    The United States’ relationship with cannabis is coming full circle, returning to times when it was a common ingredient in everyday medications. Many Americans are opting to substitute opioids with cannabis for pain, and opioid overdose deaths are lower in states with legal medical cannabis. Cannabis also poses a threat to profits from other pharmaceuticals.

    Beer company profits have fallen in states where cannabis is legal, and some states are even moving to legalize hemp.

    Meanwhile, cannabis industry is expected to generate $20 billion annually by 2020, and police are frequently trolled for attempting to enforce cannabis laws that Americans increasingly perceive as petty and unproductive.

    All the while, federal bureaucracies continue to lag behind, clinging to outdated myths and prohibitions that — over the course of the better half of a century — have been debunked and proven ineffective, which is unsurprising considering humans have been consuming the plant for well over 2,000 years.

  • YouTube Takes Steps To Censor "Controversial" (a.k.a. "Conservative") Content

    Last night YouTube took to its ‘Official Blog’ to more or less announce that they would be taking steps to censor content they found to be “controversial” even if it didn’t break any laws or violate the site’s user agreement.  And while the message vowed to be part of an effort to “fight terror content online,” the move was met wth widespread skepticism among YouTuber’s as nothing more than a thinly-veiled attempt to censor conservative speech.

    Tougher standards: We’ll soon be applying tougher treatment to videos that aren’t illegal but have been flagged by users as potential violations of our policies on hate speech and violent extremism. If we find that these videos don’t violate our policies but contain controversial religious or supremacist content, they will be placed in a limited state. The videos will remain on YouTube behind an interstitial, won’t be recommended, won’t be monetized, and won’t have key features including comments, suggested videos, and likes. We’ll begin to roll this new treatment out to videos on desktop versions of YouTube in the coming weeks, and will bring it to mobile experiences soon thereafter. These new approaches entail significant new internal tools and processes, and will take time to fully implement.

    But it’s not just content creators that will be impacted as anyone who merely searches for keywords that YouTube deems ‘questionable’, for whatever reason, will be promptly redirected to propaganda videos intended to “directly confront and debunk” whatever ‘questionable’ content that user was looking for.

    Early intervention and expanding counter-extremism work: We’ve started rolling out features from Jigsaw’s Redirect Method to YouTube. When people search for sensitive keywords on YouTube, they will be redirected towards a playlist of curated YouTube videos that directly confront and debunk violent extremist messages. We also continue to amplify YouTube voices speaking out against hate and radicalization through our YouTube Creators for Change program. Just last week, the U.K. chapter of Creators for Change, Internet Citizens, hosted a two-day workshop for 13-18 year-olds to help them find a positive sense of belonging online and learn skills on how to participate safely and responsibly on the internet. We also pledged to expand the program’s reach to 20,000 more teens across the U.K.

    YouTube

     

    So who will be responsible for choosing which content qualifies as “controversial” and/or “questionable?”  Well, as the Daily Caller points out, that responsibility will fall upon ‘impartial’ groups like the Anti-Defamation League that recently published a list of “alt-right” and “alt-lite” YouTubers yet failed to highlight extreme leftist organizations like Antifa…must have just been an oversight.

    According to YouTube, the system, while largely automated, will mix in human reviews in the form of its already established “Trusted Flagger” volunteer program that works with over 15 institutions to deal with extremist content, including the Anti-Defamation League.

     

    The ADL recently released a list naming members of the “alt-right” and the “alt-lite,” the latter of which included controversial YouTube personalities like Gavin McInnes, Mike Cernovich, and Brittany Pettibone. Curiously, the ADL is selective in what it chooses to label as “extremism.” It does not have violent far-left ideologies like Antifa and militant leftist organizations like Redneck Revolt on its radar.

     

    It’s worth noting that the “Trusted Flagger” system was later transformed into the much maligned “YouTube Heroes” program, which invited the public to help moderate content. It was heavily criticized for giving social justice activists the power to manipulate the platform.

     

    Despite the apparent focus on targeting extremism, YouTube’s announcement includes the company’s efforts to artificially promote videos through its “Creators for Change” program, which in YouTube’s own words pushes creators who are “using their voices to speak out against hate speech, xenophobia, and extremism.”

    Not surprisingly, these moves to censor content creators while shoving propaganda videos down the throats of users, has been blasted by conservatives online who feel like they’ve been targeted.

    “If a video doesn’t break YouTube’s terms of services then they absolutely SHOULD NOT be attempting to dampen the reach of the video any further,” said YouTuber Annand “Bunty King” Virk, who raised his concerns with The Daily Caller. “Who determines what’s passable and what isn’t? At what point do we finally realize that saying the right thing isn’t always about saying what people want to hear?”

     

    “By these standards, if YouTube existed previous to the Emancipation Act, they’d be censoring videos criticizing slave owners, since being anti-slavery wasn’t popular… at all,” he added. “The popular opinion isn’t always the right opinion.”

     

    “No one can really say who’s going to be impacted by this new road map, and that’s the point isn’t it? If their policies and terms of service aren’t there to help guide creators anymore, then why even have them? So really, anyone could be at risk without even knowing it,” he said.

     

    “I have no problem with YouTube cracking down on terrorist recruitment videos and the likes,” clarified Undoomed. “What I don’t understand is how such videos could’ve possibly been considered acceptable under the extant TOS and policies.”

     

    “I think there is a high probably for collateral damage with this new attitude,” he said. “Some people could conceivably consider skeptics and anti-SJWs ‘extremists,’ while all we are doing is arguing for a little common sense, and of course for freedom of speech as demanded by the Constitution.”

     

    “My suspicion is that ‘trusted flaggers’ is just a code word for the ‘usual suspects’. i.e. the same type of radical left-wing reactionaries that have reshaped Twitter into an Orwellian nightmare,” he concluded.

    The ‘Russians’ won’t stand a chance in 2020….

  • This New Piece Of Legislation Could Demolish State Gun Control Laws Across The Country

    Authored by Mac Slavo via SHTFplan.com,

    Over the past century there has been one undeniable trend working against gun rights. Put simply, as time goes on, it’s harder for a law abiding citizen to own and use a firearm, largely due to the proliferation of state and federal gun laws. A hundred years ago, one could own pretty much any firearm without restriction, and buy a firearm without even a background check (though of course one argue could that a few of these laws are a good idea). Now it’s a heavily regulated industry.

    And sure, there have been some victories for the Second Amendment. A few decades ago there were only a handful of states where it was fairly easy to attain a concealed carry permit, and even many deeply conservative states didn’t issue these permits at all. Now that situation has completely reversed, and continues to improve. However, when you look at gun rights on a long enough timeline, it’s obvious that the Second Amendment has lost more than it has won, as state and federal laws have chipped away at our rights little by little.

    Fortunately there is a new piece of legislation that could significantly roll back the worst of these laws on the state level, in particular the laws that were put in place under the Obama administration. The Second Amendment Guarantee Act, which was recently proposed by New York Congressman Chris Collins, could prove to be the most significant attack on gun control laws that we’ve seen in generations. According to a press release issued by Collins’ office:

    “This legislation would protect the Second Amendment rights of New Yorkers that were unjustly taken away by Andrew Cuomo,” said Collins.

     

     “I am a staunch supporter of the Second Amendment and have fought against all efforts to condemn these rights. I stand with the law-abiding citizens of this state that have been outraged by the SAFE Act and voice my commitment to roll back these regulations.

    SAGA would provide an intimidating bulwark against gun control advocates in blue states. In a nutshell, it would prevent these states from passing restrictive laws that exceed the scope of federal gun laws.

    In the Collins’ bill, States or local governments would not be able to regulate, prohibit, or require registration and licensing (that are any more restrictive under Federal law) for the sale, manufacturing, importation, transfer, possession, or marketing of a rifle or shotgun. Additionally, “rifle or shotgun” includes any part of the weapon including any detachable magazine or ammunition feeding devise and any type of pistol grip or stock design.

     

    Under this legislation, any current or future laws enacted by a state or political subdivision that exceeds federal law for rifles and shotguns would be void. Should a state violate this law, and a plaintiff goes to court, the court will award the prevailing plaintiff a reasonable attorney’s fee in addition to any other damages.

    For decades, gun owners living in certain states have had their rights slowly stripped away by legislative bodies that repeatedly passed laws which are in violation of the Second Amendment, and they’ve done so almost completely unopposed. It’s the perfect example of what the Founders hoped to prevent in our society. They feared that the rights of the minority could be taken away by the majority, which is exactly what gun owners in leftists states have had to contend with.

    But if SAGA passes, state governments will no longer be able to bully gun owners with their onerous and unconstitutional laws. Gun owners will finally have the same right to bear arms in every state of the union.

  • China Threatens India Over Border: "Leave Chinese Land Or Face War"

    While the world's eyes are focused on Syria, Russia, Ukraine, and North Korea; there is another – much more tense – fight between two nuclear powers that is getting far too little attention. The world's two most populous nations, China and India, have been engaged in a border dispute for decades but in recent months it has flared once again with a Chinese Ministry of Defense official now warning explicitly that Indian troops must leave the contested Doklam area if they do not want war.

    The latest standoff started more than a month ago after Chinese troops started building a road on a remote plateau, which is disputed by China and Bhutan.  Indian troops countered by moving to the flashpoint zone to halt the work, with China accusing them of violating its territorial sovereignty and calling for their immediate withdrawal.

    China then added a large number of troops to the region:

    "The crossing of the mutually recognised national borders on the part of India… is a serious violation of China's territory and runs against the international law," Chinese defence ministry spokesman Wu Qian told a press conference quoted by AFP, adding that "the determination and the willingness and the resolve of China to defend its sovereignty is indomitable, and it will safeguard its sovereignty and security interests at whatever cost."

     

    He also said that "border troops have taken emergency response measures in the area and will further step up deployment and trainings in response to the situation," without giving any details about the deployment.

    And now, as RT reports, during a heated TV debate between a retired Indian Army major general and now defense commentator, Ashok Mehta, and the director of the Chinese Defense Ministry’s Center for International Security Cooperation, Senior Colonel Zhou Bo; tempers frayed.

    Speaking first, Mehta fired off a lengthy yet passionate tirade, accusing the Chinese of fanning anti-Indian sentiments in an overly aggressive way.

    “Chinese media, think tanks, Xinhua, Global Times, PLA Daily have written the most aggressive and most belligerent stories about threatening India, taking India to war, opening a two-front conflict, teaching India a lesson,” the former general complained.

     

    “I mean, that kind of language is not being used in India!” Mehta added.

    Asked by the news anchor if he could provide any proof and name specific Chinese articles featuring warmongering rhetoric, the Indian expert failed to cite any, but instead recalled his professional background.

    Zhao interrupted…

    General, you have been talking too much! This is not the right way of having this conversation,”

     

    “Let me just use a few seconds – you [Indian troops] are on Chinese territory, so if you do not want a war, you’ve got to go away from Chinese territory,” the senior colonel remarked.

    In a statement on Wednesday, Beijing said Indian troops were still present on Chinese territory, and that China had acted cautiously, demanding that Delhi pull out its forces.

    "But the Indian side not only has not taken any actual steps to correct its mistake, it has concocted all sorts of reasons that don't have a leg to stand on, to make up excuses for the Indian military's illegal crossing of the border,” the Chinese Foreign Ministry said, as cited by Reuters.

    As we noted previously, this isn’t the first time that these two nations have been at each other’s throats over their borders. In 1962 their armies clashed, leading to defeat of the Indian army, and thousands of casualties on both sides. Based on the rhetoric coming out of Beijing’s state sponsored media, it appears that China is willing to replicate that conflict.

  • Aussie 'War On Cash' Tsar: "Consumers Are Part Of The Problem"

    Authored by Mike Shedlock via MishTalk.com,

    Australia’s Black Economy Taskforce has come up with a list of 35 “consumer-focused” proposals to crack down on cash. The taskforce blames consumers for holding cash and for not getting receipts.

    Michael Andrew, the head of the taskforce, proposes nanochips in $50 and $100 notes so the government knows where the cash is, and suggests that cash should expire after a designated period of time.
     

    Andrew believes “consumers are part of the problem”. He wants to punish people who pay in cash and don’t get a receipt.

    A plan to strip consumers of their legal protections if they pay in cash and fail to get a receipt has been slammed as “completely unfair” by leading advocacy groups.

     

    The proposal was one of 35 recommendations contained in the interim report from the federal government’s Black Economy Taskforce, which argued the need for “consumer-focused action” to crack down on cash payments.

     

    According to Taskforce chair Michael Andrew, former global head of accounting firm KPMG and current chair of the Board of Taxation, while current anti-black economy laws focused on businesses, consumers are “part of the problem”.

     

    “We intend to examine the merits of consumer focused sanctions, including the loss of consumer protections, warranties and legal rights for people who make cash payments without obtaining a valid receipt,” Mr. Andrew wrote. “This is not simply of matter of imposing new penalties, but part of a wider cultural change agenda.”

     

    But he argued any new penalty regime “should be carefully calibrated”, with the strongest sanctions “applying to egregious behavior or repeat offenses”. “Lighter touch approaches (including ‘nudge’ techniques) will be more appropriate in many cases,” he wrote.

    Cash Crackdown Boss Proposes Nanochips Notes

    Also consider Cash Crackdown Boss Proposes Nanochips Notes.

    The man charged with cracking down on the “black economy” has revealed how he would like to keep track of your $100 and $50 notes.

     

    Hi-tech nano-chips would be implanted in Australia’s “disappearing” cash under a plan floated by Michael Andrew, the head of the federal government’s Black Economy Taskforce.

     

    Speaking to The Courier-Mail, Mr. Andrew said too much cash was being hoarded under pensioners’ beds and stockpiled as a trusted currency in China.

     

    Estimates for the size of Australia’s so-called black economy vary from $23 billion to $50 billion. The government claims tax avoidance through cash payments costs the budget up to $10 billion in revenue, money that could go towards funding welfare and other services.

     

    In the May budget, the federal government announced an extra $32 million funding for the Australian Taxation Office to fund its cash crackdown, which it expects to bring in an extra $589 million in revenue over the next four years.

     

    According to Mr. Andrew, who will hand down his final report in October, there should be 14 $100 notes for every adult in Australia but there are fewer than that in circulation. While criminals prefer the $50 note, as the Reserve Bank pointed out in its defense of cash last year, foreign migrants and pensioners prefer $100s.

     

    “You could put a trace on some of these notes to see where they would go. You can use nano technology to put little chips in so you could then trace it.”

     

    Last year, a report by UBS recommended Australia scrap the $100 note. According to UBS, benefits may include “reduced crime (difficult to monetize), increased tax revenue (fewer cash transactions) and reduced welfare fraud (claiming welfare while earning or hoarding cash)”.

    Reaction to Taxes

    Liberal Democrats Senator David Leyonhjelm has the right idea.

    “The only people who are distressed by the cash economy are the government and the public servants who want to spend taxes. It’s a reaction to the level of taxes we pay,” said Leyonhjel.

    ECB Phases Out €500 Note

    Last year, the New York Times reported Europe to Remove 500-Euro Bill, the ‘Bin Laden’ Bank Note Criminals Love.

    India Cash Ban Experiment

    On November 8, 2016, India’s Prime Minister Narendra Modi stunned the country with an announcement that 500-rupee ($7.30) and 1,000-rupee notes, which account for more than 85 percent of the money supply, would cease to be legal tender immediately.

    I commented Cash Chaos in India, 86% of Money in Circulation Withdrawn; Cash Still King in Japan

    On August 1, 2017, I offered this update: Letters from India: How Bad Can the Crackdown on Cash and Tax Evasion Get? What’s Next?

    The war on cash is moving at breakneck speed.

  • Who Are The Winners And Losers When Trade War Breaks Out Between The US And China

    The small of trade war between China and the US is becoming ever more rancid.

    In the latest development, this morning we reported that the Trump administration is planning a probe of what the U.S. sees as violations of intellectual property by China. Against a backdrop of Trump’s frustrations with domestic policy, sliding approval ratings and disagreement with China over North Korea, the chances of protectionist action are rising according to Bloomberg while CNBC adds that the official start date of the trade war will be this Friday.

    But who stands to lose – and win – if the U.S. takes aim at the unbalanced trade relationship? Bloomberg has done the math and found that with total trade of more than half a trillion dollars a year, the list of potential losers is very long. The most notable examples include:

    • U.S. companies such as Apple Inc., which assemble their products in China for sale in the U.S., and those tapping demand in China’s expanding consumer market.
    • U.S. agricultural and transport-equipment firms, which meet China’s demand for soy beans and aircraft.
    • Manufacturing firms from the U.S. that import intermediate products from China as an input into their production process.
    • Retailers including Wal-Mart Stores Inc. and the U.S. consumers that benefit from low-price imported consumer electronics, clothes and furniture.
    • Other trade partners caught in the crossfire of poorly-targeted tariffs. On steel, for example, U.S. direct imports from China account for less than 3% of the total — below Vietnam.

    And while conventional wisdom is that the US has a chronic trade deficit with China – it does – the U.S. also runs a nearly $17 billion trade surplus with China for agricultural products. China consumes about half of U.S. soybean exports, America’s second largest planted field crop. Soybean farms are mostly located in the the upper Midwest (Illinois, Iowa, Indiana, Minnesota and Nebraska). The volumes are so significant that a spike in soybean exports was a noticeable contributor to GDP growth in the second half of last year as readers may recall. China is also a major buyer of U.S. aircraft, perhaps the only areas of manufacturing where the U.S. retains a competitive edge (though not for much longer). The U.S. also has an $8 billion dollar trade surplus with China in the transportation equipment category.

    U.S. Trade Balance With China by Product

    How about geographially?

    It may come as a surprise that on a state-by-state basis, eight U.S. states are running surpluses with China, six of which supported Trump in last year’s presidential election, including West Virginia. In 2016, Louisiana registered the largest surplus, at 2.9% of the state’s GDP. Louisiana’s exports to China are likely inflated given that 60% of U.S. soybean exports are shipped through the Gulf coast. Washington state was second at 1.6% of GDP, largely due to aerospace exports.

    Tennessee maintains the largest trade deficit with China at 6.5% of GDP, meaning tariff-induced increases in the price of imports could have the biggest impact on this state.

    The biggest losers? Mississippi, Georgia, Illinois and  California, all of which maintain deficits at more than 3% of GDP.

    For the sake of brevity, we will not discuss another, more troubling, aspect of conventional wisdom, namely that trade wars almost inevitably lead to real wars. Aside for the US military industrial complex, there are no winners there.

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