Today’s News 13th April 2017

  • Turkey's Barks And Bites

    Authored by Burak Bekdil via The Gatestone Institute,

    • This is the first time that Erdogan is openly challenging a concerted European stand.

    Turkey's foreign policy and the rhetoric that presumably went to support it, has, during the past several years, aimed less at achieving foreign policy goals and more at consolidating voters' support for the Ankara government.

    Self-aggrandizing behavior has predominantly shaped policy and functioned to please the Turks' passion for a return to their glorious Ottoman past.

    Assertive and confrontational diplomatic language and playing the tough guy of the neighborhood may have helped garner popular support for President Recep Tayyip Erdogan and his Justice and Development Party (AKP), but after years of "loud barking and no biting", Turkey has effectively become the victim of its own narrative.

    In 2010, Turkey froze diplomatic relations with Israel and promised "internationally to isolate the Jewish state", and never to restore ties unless, along with two other conditions, Jerusalem removed its naval blockade of Gaza to prevent weapons from being brought in that would be used to attack Israel. Turkey's prime minister at the time, Ahmet Davutoglu, said Israel would "kneel down to us".

    In 2016, after rounds of diplomatic contacts, Turkey and Israel agreed to normalize their relations. The blockade of Gaza, to prevent shipments of weaponry to be used by Gazans in terror attacks remains in effect.

    In 2012, Davutoglu claimed that Syrian President Bashar al-Assad's days in power were numbered, "not by years but by weeks or months". In 2016, Davutoglu had to step down as prime minister, but Erdogan's and his worst regional nemesis, Assad, is in power to this day, enjoying increased Russian and Iranian backing. In 2012, Erdogan said that "we will soon go to Damascus to pray at the Umayyad mosque" — a political symbol of Assad's downfall and his replacement by pro-Turkey Sunni groups. That prayer remains to be performed.

    In November 2015, shortly after Turkey shot down a Russian Su-24 military jet and cited violation of its airspace, Erdogan warned Russia "not to play with fire." As for the Russian demands for an apology, Erdogan said it was Turkey that deserved an apology because its airspace had been violated, and that Turkey would not apologize to Russia.

    In June 2016, just half a year after Russia imposed a slew of economic sanctions on Turkey, Erdogan apologized to Russian President Vladimir Putin.

    In July 2016, Erdogan apologized for downing a Russian plane, and in August he went to Russia to shake hands for normalization. Pictured: Russian President Vladimir Putin with Turkey's then Prime Minister Erdogan, meeting in Istanbul on December 3, 2012. (Image source: kremlin.ru)

    Erdogan and his government have countless times warned the United States not to side with the Syrian Kurds –whom Turkey views as a terrorist group– in the allied fight against radical jihadists of ISIL's Islamic State. In March 2017, Washington denied that Syrian Kurds were a terrorist group and pledged continued support for them.

    Erdogan's Turkey has done more than enough to show that its bark is worse than its bite. Yet it keeps barking badly. This time, the enemy to bark at, not bite, is Europe. This is the first time that Erdogan is openly challenging a concerted European stand.

    In a recent row between several European capitals and Ankara over Erdogan's ambitions to hold political rallies across Europe to address millions of Turkish expatriates, the Turkish president said he would ignore that he was unwelcome in Germany and would go there to speak to his Turkish fans.

    In response, the Dutch government deported one of Erdogan's ministers who had gone uninvited to the Netherlands to speak to the Turkish community there.

    Germany launched two investigations into alleged Turkish spying on German soil.

    Similarly, Switzerland opened a criminal investigation into allegations that Erdogan's government had spied on expatriate Turks.

    In Copenhagen, the Danish government summoned the Turkish ambassador over claims that Danish-Turkish citizens were being denounced over views critical of Erdogan.

    The barking kept on. In Turkey, Erdogan warned that Europeans would not be able to walk the streets safely if European nations persist in what he called "arrogant conduct." That comment caused the EU to summon the Turkish ambassador in Brussels to explain Erdogan's threatening language.

    Farther east, in the rich European bloc, several hundred Bulgarians blocked the three main checkpoints at the Bulgarian-Turkish border to prevent Turks with Bulgarian passports, but who were living in Turkey, from voting in Bulgarian elections. The protesters claimed that Turkish officials were forcing expatriate voters to support a pro-Ankara party.

    Meanwhile, at the EU's southeast flank, Greece said that its armed forces were ready to respond to any Turkish threat to the country's sovereignty and territorial integrity.

    What happened to Erdogan's promised "bite" that he could go to Germany to speak to the Turkish community despite repeated German warnings that he would not be welcome? "I will not go to Germany," he said on March 23.

    Erdogan may be winning hearts and minds in Turkey with his neo-Ottoman Turkey "barks." But too few foreign capitals find his threats serious, too few politicians think that he is convincing and too many people tend to believe Turkey's bark is worse than its bite.

    The recent wave of European constraints against Erdogan shows that, for the first time in recent years, Europe does not seem to fear Erdogan's bluffing and thuggishness.

    At the moment, Erdogan's priority is to win the referendum on April 16 that he hopes will change the constitution so that he can be Sultan-for-life. Picking fights with "infidel" Europeans might help him garner more support from conservative and nationalist Turks.

    When the voting is done, however, he will have to face the reality that an alliance cannot function forever with one party constantly blackmailing the other.

  • Tucker Carlson Tackles the Dangerous Case of the Democratic War Party, Itching For a Fight With Russia

    During last night’s Tucker Carlson show, he attempted to find out why the democratic party, the same people who prided themselves on being anti-war during the Bush administration, were so god damned eager to wage war with just about anyone they could find willing to participate.
     
    Inside of their party is one sole source of reason, Tulsi Gabbard, Iraqi war veteran, and Congresswoman from Hawaii who sits on the Armed Services and Foreign Affairs committees. In response to Trump’s actions in Syria, Gabbard issued the following statement.
     

    “It angers and saddens me that President Trump has taken the advice of war hawks and escalated our illegal regime change war to overthrow the Syrian government. This escalation is short-sighted and will lead to more dead civilians, more refugees, the strengthening of al-Qaeda and other terrorists, and a direct confrontation between the United States and Russia—which could lead to nuclear war.
     
    “This Administration has acted recklessly without care or consideration of the dire consequences of the United States attack on Syria without waiting for the collection of evidence from the scene of the chemical poisoning. If President Assad is indeed guilty of this horrible chemical attack on innocent civilians, I will be the first to call for his prosecution and execution by the International Criminal Court. However, because of our attack on Syria, this investigation may now not even be possible. And without such evidence, a successful prosecution will be much harder.”

     

    //platform.twitter.com/widgets.js

    The subsequent result of her seemingly rational position was leaders on the left calling for her to step down.

    //platform.twitter.com/widgets.js

    Carlson tackled the subject in an eloquent 1-minute monolog.
     

     
    One of his guests last night was a Democratic strategist, Al Mattour, war hawk — a man interested in overseeing the deaths of thousands.
     
    In a nutshell, Al believes we should wage war with anyone who attempts to ‘disrupt our elections.’ Tucker asked Mattour, plainly, ‘how does having a confrontation with Russia makes our country more safer and prosperous?’
     
    Mattour replied ‘it makes us safer in our democratic processes to make sure their integrity is preserved.’
     
    When Tucker juxtaposed China’s actions towards the United States against Russia, asking ‘why aren’t you pushing for confrontation with China? They’re doing everything Russia is doing, and more,’ Mattour agreed that we should be confronting them in a similar bellicose fashion.
     

     
    Lastly, Stephen Cohen, Professor of Russian studies at Princeton and NYU, an actual expert on China, weighed in, saying ‘Russia thinks we’re crazy, completely crazy.’
     
    He even took some time to express his ‘disgust’ with Al Mattour, saying ‘your previous guest, I don’t mean to be rude to him. First of all, he doesn’t know what he’s talking about. And, secondly, he excludes the reality that Russia has a politics. And the politics in Russia today as we talk is […] the concern that America is preparing war against Russia. If not on Syria, then on the other two cold war fronts […] where NATO is building up in an unprecedented way. This is not good because they have nuclear weapons and because accidents happen.’
     
    He then theorized what the conversation between Putin and Tillerson was like, pointing to the two having a history of trust together from the time Tillerson led Exxon Mobile.

    ‘Rex, says Putin, what in the world is going on in Washington?’

     
    Professor Cohen, ominously, summed it up, ‘I’m not young. I’ve been doing this 40 years, sometimes as a Professor, sometimes inside. I have never been as worried as I am today about the possibility of war with Russia.’
     

    Content originally published at iBankCoin.com

     

  • E PLuRiBuS NeOCoN'eD…
  • Brandon Smith Warns The Next World War "Will Be Economic… Not Nuclear"

    The elite appear to have a great deal in store for President Trump’s first four years… quite a few tricks up their sleeves, if you will. As SHTFplan.com's Mac Slavo notes, the wars are already being manifested; but the larger elements of financial upheaval may take years to play out, even if there are a number of chaotic events, a bit of panic, and more of the great squeeze that is sucking the vitality of the country dry. Depending upon how things play out, people could end up better or than four years ago, or much, much worse. Theoretically, no one knows for sure which way that will go, but it appears that the global agenda is stilling rolling slowly forward, inch by inch, and about to take a big bit out of Syria, North Korea and beyond. Get ready for some big potential downturns.

    The Real Dangers Behind The Syrian Crisis Are Economic

    Authored by Brandon Smith via Alt-Market.com,

    Back in 2010/2011 when I was still writing under the pen-name Giordano Bruno, I warned extensively about the dangers of any destabilization in the nation of Syria, long before the real troubles began. In an article titled Migration Of The Black Swans, I pointed out that due to Syria’s unique set of alliances and economic relationships the country was a “keystone” for disruption in the Middle East and that a “revolution” (or civil war) was imminent. Syria, I warned, represented the first domino in a chain of dominoes that could lead to widespread regional warfare and draw in major powers like the U.S. and Russia.

    That said, my position has always been that the next “world war” would not be a nuclear war, but primarily an economic war. Meaning, I believed and still believe it is far more useful for establishment elites to use the East as a foil to bring down certain parts of the West with economic weapons, such as the dumping of the U.S. dollar. The chaos this would cause in global markets and the panic that would ensue among the general public would provide perfect cover for the introduction of what the globalists call the “great financial reset.” The term “reset” is essentially code for the total centralization of all fiscal and monetary management of the world’s economies under one institution, most likely the IMF. This would culminate in the destruction of the dollar’s world reserve status, its replacement being the IMF’s Special Drawing Rights basket currency system.

    Eventually, the SDR basket system would act as a stepping stone towards a single global currency system, and its final form and function would probably be entirely digital. This would give the globalists TOTAL push-button control over even the smallest aspects of normal trade. The amount of power they would gain from a single centralized digital currency system would be endless.

    Syria in itself is just one layer upon many in the process of deliberate global instability, but it seems to be vitally important to the elites given that they continually make new attempts to draw the American public into support for so called “regime change.”

    Mainstream media publications like The New York Times overtly press the narrative that Syrian president Bashar al-Assad has a long history of war crimes including the use of chemical weapons against civilians. Yet, neither The New York Times nor anyone in government has produced a single piece of compelling concrete evidence that Assad is guilty of such acts, including the latest chemical attack which the Trump administration as used as a rational for cruise missile strikes against Syrian military targets and rhetoric calling for the ousting of Assad.

    Not that I necessarily have much faith in the Assad regime, but we saw this same exact model used under the Obama administration in 2013: A chemical attack against civilians which the White House then immediately, without evidence, uses to implicate Assad and call for regime change. This tactic to seduce the American public into war fever failed, even with many acting serving military, and Obama backed away (in part) from a full blown invasion of Syria. Now, it would appear that the establishment hopes they’ll get a better response using the same con-game under Trump.

    There are far more advantages in the Trump scenario, however.

    It has been my longstanding belief since the middle of last year that Trump would undoubtedly be president of the U.S., because the international banking cabal needs a scapegoat for the ongoing economic crisis they have been engineering for many years. The Syrian strategy is a win/win for the elites under Trump because, with Trump, there is no need for moderation. If they can influence him to rampage without concern for the repercussions in the region, then their scapegoat implicates all conservatives in general with little effort on their part.

    George Soros‘ prediction that Trump “will fail” because he is “unpredictable and unprepared” and that he will “end up bad for the markets” will become a self-fulfilling prophecy.

    I warned the liberty movement over and over again after Trump’s cabinet selection that he was surrounding himself with establishment ghouls that would either run the White House in spite of him, or, that he was gladly cooperating with them. His recent high tension rhetoric against the Syrian government and against North Korea only seems to confirm my suspicions.

    So, where is this all headed? Nowhere good…

    First, consider the fact that every time it appears that the Syrian government seems to be making headway in destroying ISIS, there is suddenly another chemical attack which places Assad under suspicion. Anyone who read my article ISIS Is Being Aimed At The West By Globalists — Here’s What We Can Do About It, published in 2015, has seen the extensive evidence I outlined which shows U.S. government complicity and even direct aid in the creation of ISIS. I compared the rise of ISIS to Operation Gladio, a massive false flag project undertaken by U.S. and European governments in Europe from the 1950s to the 1990s.

    ISIS is useful as a perpetual boogeyman, and sadly, the Muslim religion has one foot stuck in the dark ages and will remain fertile ground for generating extremist groups for decades to come. The elites have every intention of protecting certain factions of ISIS in Syria, which means that ISIS will continue to spread from the area into the EU and the U.S. and terrorist attacks will continue to multiply.

    Second, we have learned that the Trump administration is perfectly willing to fast-track certain longstanding establishment projects that involve kinetic action (i.e. destruction and death). If they were happy to move so quickly to strike Syria without supplying any evidence to support the measure, then it should come as no surprise if they are willing to strike North Korea, a country with ACTUAL means to threaten American targets or our interests in the Pacific. A precedent is being set today for an ongoing program of fast moving preemptive strikes. I believe this will go even beyond Barack Obama’s notorious penchant for trigger pulling to destabilize regions.

    Third, I think many people also forget that Syria continues to maintain a mutual defense pact with Iran. Why does this matter? Syria is NOT Libya; Assad is not going to go down like Gaddafi at the hands of insurgent groups like ISIS. Regime change in Syria is going to require numerous U.S. boots on the ground. This, in turn, will invite hundreds of thousands from the Iranian Guard to intercede. If you study military preparedness around the world you know that a country like Iran or North Korea will offer far greater resistance than what we saw in Afghanistan or Iraq.

    While they are still very poor nations militarily (in terms of defense spending), they are still relatively well-trained, and the technology gap is less expansive. Many American men will die in such a fight. If ground invasion becomes an option in Syria, expect Iran to be next, and expect the option of a new “draft” to return to the U.S.  Also keep in mind that Americans will never accept military conscription today unless we suffer a massive attack on U.S. soil, or on U.S. forces abroad.  So, expect some shock and awe to occur in short order…

    Fourth, there is, of course, the ongoing question as to when U.S. and Russian forces will “stumble” over each other and someone on either side gets killed? The majority of analysts in the liberty movement expect that this is inevitable. I suppose I agree, but I do not believe the elites have been entrenching billions of dollars in control grid technology in every major city in the world just to vaporize them in a chain of mushroom clouds (this control grid includes Russian cities — just look up Putin’s Yaroslavl laws, which might make the NSA envious).

    It seems to me that the natural progression of these tensions will end in economic retaliation from the East against the West, not nuclear retaliation. The thing is, this is actually the worst case scenario.

    With nuclear conflagration comes immediate loss of full spectrum awareness for the elites. They lose their surveillance grid, they lose the means to maintain a healthy standing military, they lose the means to dictate the narrative because the mainstream media will not be functioning at that point, etc. During an economic crisis, they can shift wealth easily to safe havens, they can weaken certain militaries while strengthening others. They retain their control grid apparatus and use it effectively against the citizenry as long as there is not substantial civilian resistance, and the list goes on.

    With nuclear war there would be total chaos. With economic crisis there is controlled chaos. The establishment prefers the latter option.

    Eastern nations and their allies still hold considerable U.S. Treasury bonds in their coffers, and they still use the dollar for the most part as the world reserve currency (though they have been preparing the ground for a dollar dump since at least 2008). On top of this, many of these nations also have the option of dumping the dollar as the petro-currency and crushing our monopoly on how oil is traded globally. If any of these measures are taken by countries like Russia, China and Saudi Arabia, the U.S. economic structure will lose the last pillar holding it above water. We will effectively move into third-world status in the course of a few years.

    These are not hypothetical dangers, these are very real dangers which have already been mentioned publicly by Eastern interests in their own media. They are also dangers which SERVE the globalist agenda in the long run. As I have noted time and time again in the past with ample evidence, Eastern governments including Russia and China openly and avidly support the International Monetary Fund and continue to call for the IMF to take over global management of all monetary policy to form a single world currency system. They may be “anti-U.S." in rhetoric, but they are NOT anti-globalist.

    Syria remains a highly useful catalyst for the globalists to achieve the crisis they need to push their great reset forward. Being that they have tried to thrust Americans into that quagmire so many times over the past few years, I think it is safe to say they plan to use Syria as trigger point whether we cooperate or not.

  • "Probably Nothing"

    Yesterday we highlighted the “scariest chart in the world” – we may have been premature…

    https://ssl.gstatic.com/trends_nrtr/981_RC01/embed_loader.js//

    It seems pretty clear that the neocon warmongery is working – the world is fearful, and needs government to save it…

  • Is This The End Of The Trump Presidency?

    Authored by Federico Pieraccini via The Strategic Culture Foundation,

    On April 4 2017 in the Syrian city of Khan Shaykhun, a city controlled by western-backed terrorists, chemical weapons killed more than eighty civilians. Immediately, local and foreign sources (the White Helmets and Syrian Observatory, respectively, dubiously linked to Al Qaeda groups) blamed the Syrian Arab Army, accusing them of employing chemical agents. In the following forty-eight hours, the mainstream media flooded print media and the airwaves with information that alleged that Assad used chemical weapons. As is known, it is not the first time that the legitimate government of Syria has been accused of attacking its own people with weapons of mass destruction.

    In all similar events in the past, it has been later discovered that the chemical agents in question were used by the Al Nusra Front and Al Qaeda terrorists. In 2013, Obama tacitly rejected the argument that the Syrian Army used chemical weapons in Ghouta, deciding not to succumb to internal pressure to bomb Syria in response. Donald Trump required little confirmation before taking the initiative to cross the red line, openly attacking the Syrian army, even though his same intelligence community strongly doubted that the chemical attack took place according to the narrative advanced by the media.

    There are several hypotheses regarding what may have happened in Khan Shaykhun. The first one points to a false flag by rebels and terrorists supported by Israeli, British, Saudi and Qatari intelligence. Alternatively, it could have simply been an accident. Assad's forces could have hit a terrorist weapons cache without knowing that it was dedicated to the production and storage of chemical weapons. Another theory offers that foreign intelligence agents may have provided accurate information to the terrorists in Khan Shaykhun about what buildings were going to be targeted by Assad’s air force, thereby allowing them to move chemical weapons into the targeted locations in order to bring about a civilian massacre.

    Whatever the case may be, it is unthinkable that Assad and the Syrian army would use chemical agents against their own civilians. There is no rational reason for them to use such weapons which do not guarantee any tactical advantage and which, besides, would incite an obvious, vehement reaction from the international community — a counterproductive move from any way you look at it. This is not to mention that two days before the accident (?), Trump and Tillerson had publicly opened up to Assad, broaching a Syrian future with the president still in office. Once again, the use of chemical weapons proved to be of no tactical gain, spelling full-blown political suicide. From whatever perspective one observes the incident; an intentional chemical attack by Syrian forces is not credible and should be therefore ruled out. Furthermore, Russia saw its request for an independent investigation in the Khan Shaykhun chemical incident blocked by almost all nations belonging to the UN council, with the exception of Syria, Bolivia, China and Russia. What do the US and its allies have to hide? We all know the answer to that.

    An important factor to consider in order to understand the events surrounding the incident with chemical gases concerns the immediate American response. The bombardment with cruise missile, which caused a dozen deaths and some slight damage to Shayrat Air Base, needed at least a couple of months of preparation. This consideration helps clarify the scope of the chemical attack along with the attendant rationale and motivations.

    Notably, over the past two months, Trump has received all kinds of pressure to continue the neocon-inspired aggression against Syria. The main cheerleaders of this attack certainly fall into that category of players that includes the intelligence community, the military-industrial complex, neoconservatives, the Saudis, the Israelis, the Turks and the Qataris. It is not unthinkable that the chemical attack was an act needed in order to allow a US military response. One must not neglect to consider the very positive outcome of the meeting between Trump and the Saudi prince, the latter of whom is a major supporter of aggression against Syria. The summit between the King of Jordan and the American president the day after the events in Khan Shaykhun ought to be viewed in the same light. At the same time, other events look more than suspicious in terms of timing and motives, such as the permanent exclusion of Trump adviser Steve Bannon in favor of General H. R. McMaster (appointed by Trump). McMaster is a protégé of General Petraeus, a leading exponent of the interests of the neoconservatives. This is not to mention the exclusion of Flynn a month ago, another person who for years has advised against aggression against Syria, mainly thinking of the consequences that such a move would entail at the international level.

    Much ambiguity also remains when one considers the absence of members of the American intelligence community in the war room during the bombing of Syria on April 6. Rumors suggest that these American agencies would have recommended that Trump not act on the basis of partial or false information regarding the chemical attack in Khan Shaykhun. Trump, contrary to what he stated during the presidential campaign, has dismissed the advice of his intelligence community, preferring instead to act unilaterally under pressure from McMaster and other neocons in the administration.

    The bombardment, involving the use of 59 cruise missiles (23 hit the base, others went missing, according to the Russian ministry of defense), caused little damage to the Shayrat Air Base, thanks to the prompt evacuation of Syrian personnel, and no injuries were reported amongst the Russian contingent. The Pentagon claims to have warned the Russians of their intentions, but it is more likely that there were no alternatives, and that this act was mostly political and at no cost. Rather than reading this as a hypothetical US courtesy to the Russians (and the Syrians, because Moscow immediately warned Damascus), we must consider that a few seconds after the launch of the first cruise missile by the two destroyers in the Mediterranean, Russian forces in the area were already fully aware of the path and destination of the missiles, thereby alerting Damascus. It is also possible that the generals close to Trump advised him to alert Moscow because of the danger of a Russian reaction if hit by US missiles.

    Some doubts still remain as to the intentions and purpose of the attacks. In recent days, a hypothesis has emerged implying some sort of connivance between Russia and the United States in these attacks, apparently staged to appease the interventionists of the US deep state. There is no evidence to support this hypothesis, and the relatively limited damage to the Shayrat military airport may rest either with the high defense capabilities of the Syrian and Russians, or to the marked inefficiency of Raytheon’s cruise missiles, rather than any purposeful intention to do limited damage. In coming days, with more information available, it will be important to analyze what exactly happened to the cruise missiles that did not hit their target. As many know, it is taboo in the United States to criticize the military-industry complex, given the importance and influence it enjoys. In this sense, it is no surprise that in the United States, the press has been talking about the complete success of the attack, with 58 out of 59 missiles apparently being advertised as hitting their targets.

    For Trump it may well be the beginning of the end. The intention may have been to make a once-off attack to appease the deep state, lowering in the process the heat stemming from Russiagate, in order to allow for the implementation of national policies in line with the proclaimed America-First doctrine that has thus far been sabotaged by opponents and detractors. These same detractors now applaud Trump for what they see as his first presidential act, which involves killing civilians with missiles.

    What Trump does not appear to understand is that he has opened up a Pandora's Box that implicitly encourages foreign intelligence and terrorists in Syria to rely on American help by simply playing the chemical-gas-attack card. Trump seems unaware that he is now under the complete control of the media, the intelligence agencies, Al Qaeda, and the neocons, who are all the time working towards the involvement of the United States in ever more wars, such as with the one in Syria. Trump has intentionally sold out to the deep state in the hope of saving his presidency. However, in so doing, he is doomed to becoming a puppet of the deep state. Now let us speculate for a moment about what may happen in the coming weeks.

    In response to US aggression, Russia, Syria and Iran will increase cooperation against terrorists in Syria without any further cooperation with the United States. In this regard, we have already seen the suspension of channels of communication between Russia and the United States. The most likely reason for this is to avoid revealing to the United States the whereabouts of Russian troops in Syria. This hopefully causes huge concern for Washington, as the next American attack on Syria may impact on Russian troops. Regardless, it now seems clear that in the case of a new attack on Syria, there will be a firm and proportionate response from Moscow that could even lead to the sinking of the ships that launched the cruise missiles. It constitutes a dangerous escalation that could involve nuclear superpowers. Trump is probably betting that Moscow, in the case of another attack on Syria, would not dare attack American ships. Unfortunately for Trump and the rest of the world, his calculations are dead wrong, pushing the world to the brink of disaster in the event of another American bombardment of Syria. If Russia sinks American naval ships, and Trump does not respond, he is done. If he responds, then the world is done. Let us hope that the US does not do stupid shit (an Obama quote).

    In case al Qaeda once again uses chemical weapons, Trump will be requested to answer with force, as he has already done. If he refuses to do so, he will be immediately pilloried as Obama was in 2013, thereby committing political suicide. Trump has already lost his most loyal supporters, who had voted for him to stop US military adventures abroad. By deciding to bomb Syria, he has opened the door to either an early termination of his presidency or for a large-scale conflict. Whatever the case may be, the United States begins a new phase of conflict in the Middle East, in direct contrast to the claims made by Trump throughout the presidential campaign. It represents a 180-degree reversal in policy that reveals the real intentions of the American presidency, namely continuing the preservation of the American unipolar world, in spite of lacking the necessary operational and military capabilities. After all, Obama resisted for six years the pressure to bomb Syria coming from the extremist wing of the deep state. Trump took only eighty days to voluntarily go along with plans to attack Syria. Whatever the hidden truth of these two events, it is clear that from now on that nothing will be as before.

  • Visualizing Korea's North-South Military Divide

    North Korea warned the United States that it would respond to "reckless acts of aggression" after a carrier battle group led by the 97,000-ton USS Carl Vinson was deployed to the Korean peninsula. As Statista's Niall McCarthy reports, the aircraft carrier is being escorted by a guided-missile cruiser and two destroyers equipped with Aegis technology capable of shooting down any future North Korean test missiles.

    Is North Korea's nuclear program going to be next? That's the question many experts are asking themselves after American cruise missiles struck a Syrian airbase last week. If the U.S. does carry out a pre-emptive strike, Pyongyang is likely to launch a substantial military retaliation against the south. If that nightmare does one day come to pass, how well equipped is the South Korean military to repel an offensive from the North?

    Infographic: The Military Balance On The Korean Peninsula  | Statista

    You will find more statistics at Statista

    The North Korean military has substantially more active (and reserve) troops than the South, though large numbers of its soldiers are underpaid and malnourished. The North also has outdated equipment and its airforce is known to still use 1950 Korean War-era MIG-15 fighters for training purposes.

    The South Korean military on the other hand boasts state of the art technology including cutting-edge tanks, warplanes and attack helicopters.

    However, Seoul is only 35 miles from the DMZ and due to North's superority in artillery, it's highly likely that the South Korean capital would suffer massive damage in a war. Even if the South repelled an invasion, success would come with substantial military and civilian casualties.

  • Assange Reminds The World: "The Potential For The Disastrous Rise Of Misplaced Power Persists"

    Authored by Julian Assange, editor of WikiLeaks, published op-ed via The Washington Post,

    On his last night in office, President Dwight D. Eisenhower delivered a powerful farewell speech to the nation — words so important that he’d spent a year and a half preparing them. “Ike” famously warned the nation to “guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.”

    Much of Eisenhower’s speech could form part of the mission statement of WikiLeaks today. We publish truths regarding overreaches and abuses conducted in secret by the powerful.

    Our most recent disclosures describe the CIA’s multibillion-dollar cyberwarfare program, in which the agency created dangerous cyberweapons, targeted private companies’ consumer products and then lost control of its cyber-arsenal. Our source(s) said they hoped to initiate a principled public debate about the “security, creation, use, proliferation and democratic control of cyberweapons.”

    The truths we publish are inconvenient for those who seek to avoid one of the magnificent hallmarks of American life — public debate. Governments assert that WikiLeaks’ reporting harms security. Some claim that publishing facts about military and national security malfeasance is a greater problem than the malfeasance itself. Yet, as Eisenhower emphasized, “Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.”

    Quite simply, our motive is identical to that claimed by the New York Times and The Post — to publish newsworthy content. Consistent with the U.S. Constitution, we publish material that we can confirm to be true irrespective of whether sources came by that truth legally or have the right to release it to the media. And we strive to mitigate legitimate concerns, for example by using redaction to protect the identities of at-risk intelligence agents.

    Dean Baquet, executive editor of the New York Times, defended publication of our “stolen” material last year: “I get the argument that the standards should be different if the stuff is stolen and that should influence the decision. But in the end, I think that we have an obligation to report what we can about important people and important events.” David Lauter, Washington bureau chief of the Los Angeles Times, made a similar argument: “My default position is democracy works best when voters have as much information as possible . . . And that information often comes from rival campaigns, from old enemies, from all sorts of people who have motives that you might look at and say, ‘that’s unsavory.’ ”

    The media has a long history of speaking truth to power with purloined or leaked material — Jack Anderson’s reporting on the CIA’s enlistment of the Mafia to kill Fidel Castro; the Providence Journal-Bulletin’s release of President Richard Nixon’s stolen tax returns; the New York Times’ publication of the stolen “Pentagon Papers”; and The Post’s tenacious reporting of Watergate leaks, to name a few. I hope historians place WikiLeaks’ publications in this pantheon. Yet there are widespread calls to prosecute me.

    President Thomas Jefferson had a modest proposal to improve the press: “Perhaps an editor might begin a reformation in some such way as this. Divide his paper into 4 chapters, heading the 1st, ‘Truths.’ 2nd, ‘Probabilities.’ 3rd, ‘Possibilities.’ 4th, ‘Lies.’ The first chapter would be very short, as it would contain little more than authentic papers, and information.” Jefferson’s concept of publishing “truths” using “authentic papers” presaged WikiLeaks.

    People who don’t like the tune often blame the piano player. Large public segments are agitated by the result of the U.S. presidential election, by public dissemination of the CIA’s dangerous incompetence or by evidence of dirty tricks undertaken by senior officials in a political party. But as Jefferson foresaw, “the agitation [a free press] produces must be submitted to. It is necessary, to keep the waters pure.”

    Vested interests deflect from the facts that WikiLeaks publishes by demonizing its brave staff and me. We are mischaracterized as America-hating servants to hostile foreign powers. But in fact I harbor an overwhelming admiration for both America and the idea of America. WikiLeaks’ sole interest is expressing constitutionally protected truths, which I remain convinced is the cornerstone of the United States’ remarkable liberty, success and greatness.

    I have given up years of my own liberty for the risks we have taken at WikiLeaks to bring truth to the public. I take some solace in this: Joseph Pulitzer, namesake of journalism’s award for excellence, was indicted in 1909 for publishing allegedly libelous information about President Theodore Roosevelt and the financier J.P. Morgan in the Panama Canal corruption scandal. It was the truth that set him free.

  • Former GM Vice Chair Trashes Tesla: "Musk Is A Great Salesman But They're Doomed. It's Going To Fail"

    For those who may have missed it, GM’s former Vice Chairman Bob Lutz dropped a whole lot of reality on some unsuspecting Tesla cheerleaders on CNBC this morning.  A rather blunt Lutz shared his views, as have we on several occasions, that Tesla’s constant cash burn combined with a barrage of competitive models that are about to hit the market likely indicate that the company is “doomed.”  As for Tesla’s gravity-defying stock price, Lutz attributed the company’s soaring market cap solely to Musk being the “greatest salesman in the world” along with his being “aided and abetted by some analysts.”

    “I am a well known Tesla skeptic.  Somehow it’s levitating and I think it’s Elon Musk is the greatest salesman in the world. He paints this vision of an unlimited future, aided and abetted by some analysts.  It’s like Elon Musk has been beamed down from another planet to show us mortals how to run a company.”

     

    “The fact is it’s a constant cash drain. They’re highly dependent on federal government and state incentives for money which constantly flows in.  They have capital raises all the time.”

     

    “Even the high-end cars that they build now cost more to build than they’re able to sell them for.”

     

    “Mercedes, BWM, Volkswagen, GM, Audi and Porsche are all coming out with 300-mile [range] electric luxury sedans…I think they’re doomed.” 

    At that point, an incredulous CNBC host was forced to step in asking “what does doomed mean?”

    “What does doomed mean?  Their stock price comes in?  They go out of business?  They have regular competition like other companies?  What do you mean by doomed?”

    Fortunately, Lutz was happy to entertain the question and explained to the shocked CNBC hosts that when your variable production costs exceed your products sales price…well, that’s a problem.

    “Their upside on pricing is limited because everybody else sells electric vehicles at a loss to get the credits to be able to sell the sport utility vehicles and the pickup trucks.  So that puts a ceiling on your possible pricing.”

     

    “And if he can’t make money on the high-end Model S and Model X’s which sell up to $100,000, how in the world is he going to make money on a $35,000 small car?  Because I have news for you, 42 years of experience, the cost of a car doesn’t come down proportional to it’s price.”

     

    “If you have a situation where the cost of producing a car, labor and materials, is higher than your sell price, your business model is flawed.  And it’s doomed and it’s going to fail.” 

    Finally, the stunned CNBC anchors offered up one more defense by highlighting the massive value of Tesla’s battery and solar operations, but were once again shut down in epic fashion…

    “The battery plant, in my estimation, is a joke.  There are no cost savings from making a lithium ion plant bigger than other people lithium ion plants, because making lithium ion cells is a fully automated process anyway.  So, whether you got full automative in a small building or 10x full automation in a big building, you’re not saving any money.” 

Digest powered by RSS Digest

Today’s News 12th April 2017

  • Life Expectancy Indicates A Nation's Overall Well Being – So Why Is America's Dropping?

    'Exceptional' America is seriously lagging behind in global life expectancy

    American Life Expectancy is Falling—But Why?
    Via: MesoTreatmentCenters.org

    Some additional details…

    Life Expectancy Indicates a Country’s Overall Well Being—So Why Is Ours Dropping?

    • The last time U.S. life expectancy declined at birth
      • 1992-1993: 75.8 to 75.5 years
      • Resulting from high death rates from AIDS, flu epidemic, homicide, and accidental deaths
    • After years of life expectancy gains, there is decline all across the board
      • 2014-2015: 78.9 to 78.8 years
        • Death rates rose for 8 out of 10 leading causes of death
        • Heart disease causes more than 4X as many deaths as the rest of the leading causes
        • Prescription opioid painkillers and heroin abuse are probably fueling increases in unintentional injuries
          • In 2014, the CDC reported 28,000 died due to opioid overdoses

    In 2015, Obesity Related Problems Caused 10% of US Deaths

    • Obesity increases the likelihood of heart disease, stroke, type 2 diabetes, and some cancers
      • 6 million or ? of Americans are obese
      • Being 40 lbs overweight cuts about 3 years off life expectancy
      • Being 100 lbs overweight reduces lifespan by about 10 years
    • The US has higher obesity rates than countries with longer lifespans
      • Japan 3.3%
      • Switzerland4%
      • Germany 20.1%
      • Spain 23.7%
      • United Kingdom 28.1%
      • Australia 28.6%
      • USA 33.7%

    America is Seriously Lagging Behind in Global Life Expectancy

    • 28th globally in average life expectancy – dead last among industrialized countries
      • 1st: Japan, 83.7 years
      • 2nd: Switzerland, 83.3 years
      • 3rd: Spain, 83.3 years
      • 7th: Australia, 82.4 years
      • 19th: United Kingdom, 81.4 years
      • 22nd: Germany, 81.2 years
      • 28th: USA, 78.8 years

    Richer Americans Live Longer Than the Poor and Middle Class

    • Men
      • 1980
        • Poorest—76.2
        • Lower middle—76.3
        • Middle—76.5
        • Upper Middle—79.9
        • Richest—82.6
      • 2010
        • Poorest—76.1
        • Lower middle—78.3
        • Middle—83.4
        • Upper middle—87.8
        • Richest—88.8
    • Women
      • 1980
        • Poorest—82.5
        • Lower middle—81.5
        • Middle—82.5
        • Upper middle—83.2
        • Richest—86.1
      • 2010
        • Poorest—78.3
        • Lower middle—79.7
        • Middle—82.9
        • Upper middle—83.1
        • Richest—91.9
    • While US wage inequality is only getting worse
      • 1979
        • Poorest 20%
          • Received 6.2% of national income
        • Richest 20%
          • Received 44.9% of national income
        • 2010
          • Poorest 20%
            • Received 5.1% of national income
          • Richest 20%
            • Received 51.9% of national

  • Ben Tanosborn Asks: Is Trump's Redemption At Putin's Expense?

    Authored by Ben Tanosborn,

    Donald Trump may have been told by his advisers that launching fifty-nine Tomahawk missiles, at a $15 million cost, against the small Shayrat air base in Syria was “necessary” and morally significant in retaliation for the recent chemical attack on Khan Sheikhun.  A way to show Bashar al-Assad America’s outrage at the dictator’s presumed deeds… even if results from such action prove to be materially insignificant.

    But, was it wise or even prudent to take such unilateral action without international and/or UN pre-arranged support?  Was it really an admonition to Syria’s dictator “not to do it anymore,” as the chief honcho of the Senate, Mitch McConnell, seems to claim; or was it solely a perfect opportunity for a divided Republican Party to close ranks behind an erratic and arrogant president-by-default intent in enlisting blind support from the citizenry via his sophomoric truth-deflecting tweets?

    Could this single action by the POTUS redeem him from two years of incredibly stupid oratory and a mounting litany of Munchausen lies, and bring him back to good graces with at least a slim majority of Americans?  Could this action redeem Trump from any and all prior claims of Putinesque admiration and desire to make nice with Russia, and quickly absolve him of claimed Slavic fraternization, or any possible collusion affecting the recent presidential elections?  Most important of all, could such military deed put Donald Trump in dress-uniform as Commander-in-Chief of the “Free World,” a chosen stalwart title self-awarded by Imperial America?  Answers to these questions, whether from domestic polls or overseas voices, are likely to be heard soon… ad nauseam, as cable TV “breaking news.”

    American public opinion, molded by a less-than-inquisitive mainstream media and two similarly-hawkish political parties, has selected Russia to be America’s enemy number one… with almost the entire population, through ignorance or political apathy, unable or unwilling to acknowledge the historic sub-rosa understanding which took place in 1991 as funereal rites ended the 44-year-old Cold War, thanks in great part to Mikhail Gorbachev’s wisdom through glasnost and perestroika… and not so much to Reagan’s peace efforts or his personal charm. 

    Not content with the humanity of peace, some Americans – unfortunately those holding the reins of power – prefer to hear the sound of victory bells, not those of compromise; and any patriotic (or influential) resurgence in old enemies, no matter how geopolitically restricted, is viewed as endangering US interests, a challenge to US’ global empire.  To state it any other way would be at best deceiving, and at worst a lie.

    Chances are that all investigations aimed at finding collusion between Trump’s rickety presidential campaign gang and a Russian government connection are likely to yield only circumstantial tidbits, but nothing that could be termed conspiratorial by a long shot.  [We are not delving here into any state-sponsored cyber-spying or allied disinformation that both Russia and the US engage in to influence elections, or the success that either nation might have in that arena.]  Unfortunately for hawkish politicians in the US, led by Senators McCain and Graham, former Secretary of State Clinton and a queue of long-standing adherents of global dominance, Russia will not become the scapegoat.

    We would be remiss to question Vladimir Putin’s disdain for Hillary Clinton, or his preference for the election of Trump… it stands to reason that Clinton’s inflammatory rhetoric extending back six years left discordant notes in the Kremlin, while Donald Trump’s friendly attitude towards Putin and Russia augured the prospect of a reset in US-Russia relations with mutual benefits for both nations, including cooperation that could bring a semblance of permanent peace in the Middle East.

    But Putin may have misjudged Trump’s helter-skelter brain, and how it gravitates to a single destination unaffected by constrains of idealism or loyalty, a temple-destination solely dedicated to the veneration of oneself: the Cathedral of Narcissism exhibiting the obligatory T at its main portico.  And the opportunity that magnificently presented itself via the images of babies/toddlers in Khan Sheikun said to be victims of al-Assad’s chemical attack.  Images that Donald Trump appropriated and used in his hypocritical flight from political trouble!

    A new and improved Donald Trump is about to land at the White House: an anti-Russian Trump worthy of McCain and the Pentagon falconry; a Trump leaving behind (probably) embarrassing investigations; a Trump forging ahead as an astute politician… ready to join, and likely lead, America’s political mainstream; the mainstream he said to detest before his capture of the presidency.

    Has Vladimir Putin, unwittingly, provided Donald Trump with a free ride to an unmerited redemption?

     

  • Greece Gives the World Something to Cheer: Turn Up the Decibels! – Michael Carino, Greenwich Endeavors

    Let’s get PrOGRessive SPIRIT! (Finally a positive acronym.)  We are either destined for destruction
    preferring to wallow in negativity or instead can soar with optimism.  The only difference between the two is
    perspective.  Time to focus on the
    positives in the world. I choose optimism.

    Portugal, Greece, Spain, Ireland and Italy had financial
    difficulties spending more than could be supported by tax revenues.  This was blatantly obvious during the global
    recession of 2008 and the painful but necessary fiscal adjustment that
    followed.

    Nine Years later, this period of adjustment that left
    confidence and economic growth levels low concluded last Friday.  Greece agreed to a political solution to
    conclude their third memorandum or bailout. 
    All that is left is for the technical issues to be concluded.  This is a historic moment that closes a dark
    chapter and ushers in a new age of disciplined prosperity.

    Today, German Finance Minister Wolfgang Schaeuble said there
    will be no fourth memorandum and the aim of the current program is to allow
    Greece to once again tap the markets for financing needs.  Now work begins to foster even stronger
    growth levels than expected by reducing the government’s debt burden in the
    medium term.

    The consequences of pessimism and negative news headlines
    over almost a decade has left the PrOGRessive SPIRIT countries’ equity markets
    at deep discounts and presents some seldom seen opportunities.  Companies are trading at fractions of book
    value as if a massive currency devaluation or a new great recession is
    imminent.  Neither are on the
    horizon.  And now that Greece’s heavy
    government debt load is being addressed, capital controls soon lifted and Greek
    bonds inclusion into the ECB’s QE program soon to be concluded, the upswing
    should be long lasting.

    European markets should be flying and celebrating but
    victory horns haven’t been heard. 
    Unemployment is trending down as GDP is going up.  Bank balance sheets are being restored and
    confidence is returning to both public and private sectors.  Interest rates have never been lower fanning
    the flames of a strong recovery.  There
    is so much positive news and reasons for optimism.  But the public, which has been so conditioned
    to tune out the good and focus on the bad, appears to be tone deaf. 

    Greece’s current government is partly culpable for
    conditioning the public to focus on the negatives.  Greece’s Prime Minister Alex Tsipras has
    pursued policies of a hopeless romantic over the last 2 years.  His heart appears to be in the right place trying
    to help those less fortunate and most in need. 
    However, by pursuing policies that had no chances of being accepted, he
    delayed the much needed economic rebound. Instead, Greece was left with additional
    billions lost in financial markets and much lower GDP growth.  Finally accepting the bitter pill that needs
    to be swallowed, he has turned the corner and agreed to policies that will
    foster solid economic growth far into the future.

    Yes, with Tspiras agreeing to bailout conditions last
    Friday, he set the stage for a dramatic shift in sentiment and growth
    trajectory for Greece and the rest of the EU. 
    The long protracted sovereign crisis is over.  These European markets have been overlooked
    and avoided for such a long time, they now represent some of the most
    compelling stories.  Let’s roll up our
    sleeves, accept the progress and do the homework necessary to capitalize on
    these recent events.  It’s time to shed
    the cloak of pessimism we’ve been programmed to wear and put on our capes of
    optimism.

    by Michael Carino, 4/12/17

     

    Michael Carino is the CEO of Greenwich Endeavors, a
    financial service firm, and has been a fund manager and owner for more than 20
    years.  He is optimistically invested in
    Greek equities.

  • Beware The Dogs Of War: Is The American Empire On The Verge Of Collapse?

    Authored by John Whitehead via The Rutherford Institute,

    “No nation could preserve its freedom in the midst of continual warfare.” — James Madison

    Waging endless wars abroad (in Iraq, Afghanistan, Pakistan and now Syria) isn’t making America—or the rest of the world—any safer, it’s certainly not making America great again, and it’s undeniably digging the U.S. deeper into debt.

    In fact, it’s a wonder the economy hasn’t collapsed yet.

    Indeed, even if we were to put an end to all of the government’s military meddling and bring all of the troops home today, it would take decades to pay down the price of these wars and get the government’s creditors off our backs. Even then, government spending would have to be slashed dramatically and taxes raised.

    You do the math.

    • Taxpayers are being forced to pay $1.4 million per hour to provide U.S. weapons to countries that can’t afford them.

    Clearly, war has become a huge money-making venture, and the U.S. government, with its vast military empire, is one of its best buyers and sellers.

    Yet what most Americans—brainwashed into believing that patriotism means supporting the war machine—fail to recognize is that these ongoing wars have little to do with keeping the country safe and everything to do with enriching the military industrial complex at taxpayer expense.

    The rationale may keep changing for why American military forces are in Afghanistan, Iraq, Pakistan and now Syria. However, the one that remains constant is that those who run the government—including the current president—are feeding the appetite of the military industrial complex and fattening the bank accounts of its investors.

    Case in point: President Trump plans to “beef up” military spending while slashing funding for the environment, civil rights protections, the arts, minority-owned businesses, public broadcasting, Amtrak, rural airports and interstates.

    In other words, in order to fund this burgeoning military empire that polices the globe, the U.S. government is prepared to bankrupt the nation, jeopardize our servicemen and women, increase the chances of terrorism and blowback domestically, and push the nation that much closer to eventual collapse.

    Obviously, our national priorities are in desperate need of an overhauling.

    Surely there are much better uses for your taxpayer funds than trillions of dollars being wasted on war? The following are just a few ways those hard-earned dollars could be used:

    • $251 million for safety improvements and construction for Amtrak.
    • $690 million to care for America’s 70,000 aging veterans.
    • $11 billion per year to provide the world—including our own failing cities—with clean drinking water.

    As long as “we the people” continue to allow the government to wage its costly, meaningless, endless wars abroad, the American homeland will continue to suffer: our roads will crumble, our bridges will fail, our schools will fall into disrepair, our drinking water will become undrinkable, our communities will destabilize, and crime will rise.

    Here’s the kicker, though: if the American economy collapses—and with it the last vestiges of our constitutional republic—it will be the government and its trillion-dollar war budgets that are to blame.

    Eventually, as I make clear in my book Battlefield America: The War on the American People, all military empires fail.

    At the height of its power, even the mighty Roman Empire could not stare down a collapsing economy and a burgeoning military. Prolonged periods of war and false economic prosperity largely led to its demise. As historian Chalmers Johnson warns, “Rome attempted to keep its empire and lost its democracy.

    More than 50 years ago, President Dwight Eisenhower warned us not to let the military industrial complex endanger our liberties or democratic processes.

    We failed to heed his warning.

    The consequences, as Eisenhower recognized, of allowing the military-industrial complex to wage endless wars, exhaust our resources and dictate our national priorities are beyond grave:

    Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children… This is not a way of life at all, in any true sense. Under the cloud of threatening war, it is humanity hanging from a cross of iron.

    Wake up, America. There’s not much time left before we reach the zero hour.

  • Michael Savage Laments Over Trump's Recent Decisions, Calls Yours Truly 'Vermin of the Left' in the Process

    I’ve been called many things in my life, but ‘vermin of the left’ isn’t one of them. On the Alex Jones show today, conservative talk show host Michael Savage exploded with rage after Alex began to read him my article, published on Zerohedge, which was titled “Michael Savage Turns on Trump, Says Syrian Gas Attack Was False Flag Operation.”

    //platform.twitter.com/widgets.js

    Obviously, if Michael read the article, he’d know that I wasn’t ‘vermin sludge’, but instead a disaffected Trump supporter, like him, who was pissed off by the war drums beating out of the White House.

    Humorously, a few month’s ago Savage praised yours truly for an article that I had written, giving it rave reviews: ‘it’s a huge story’…’a major league piece’…’first rate piece of reportage’…’it would be great on any conservative website.’

    Here is Savage praising my previous work (tips hat).

    And here is the full Jones-Savage interview, which is essentially a cry for help — with Savage lamenting over Trump’s hawkish demeanor, blaming his ‘change’ on the people around him, namely Tillerson. Savage would like Tillerson aka ‘the cromagnon’ to go back to pumping gas.

    Interestingly, this isn’t the first time Savage called me out on his show. Many years ago, when I was a younger man in my 20s, I had written an article that was critical of him, which resulted in him spending his entire 10-minute monolog in an uncontained rage, reading my article, challenging me to call his show to debate him, saying things like ‘you moron blogger you.’ I remember the day well, parked outside of a shopping mall, waiting for the Mrs. and then BAM — Savage is on the air calling me an ‘idiot, moron, blogger.’ Good times.

    Having the benefit of hindsight, I can now say Dr. Savage was right and I was wrong and for my ‘moronic article on some unknown website.’

    Thanks for the laughs, Dr. Savage.
    Content originally published at iBankCoin.com

  • Viral Video Shows Chinese Warehouse Where Humans Were Replaced By Robots

    Even as talk about robots taking over low-(and not so low) skilled jobs has been all the rage in recent months, few Americans have been faced with the imminent threat of being displaced by Johnny 5. Not so in China, where a viral clip released by the local TV broadcaster shows an army of little orange robots sorting out packages in a warehouse in eastern China, the latest example of how machines are increasingly taking over menial factory work in the world’s most populous nation.

    The People’s Daily shared the behind-the-scenes footage of the self-charging robot army in a sorting centre of Chinese delivery powerhouse Shentong (STO) Express. The video, also released by the SCMP, shows hundreds of round Hikvision robots,  each roughly the size of a seat cushion,  swivelling across the floor of the large warehouse in Hangzhou. A worker is seen feeding each robot with a package before the machines carry the parcels away to different areas around the sorting centre, then flipping their lids to deposit them into chutes beneath the floor.

    The robots identified the destination of each package by scanning a code on the parcel, thus minimising sorting mistakes, according to the video.

    The army of robots can sort up to 200,000 packages per day and are self-charging, so they can work 24/7, although they are presently used only for about six or seven hours each time from 6pm according to a STO Express spokesman.

    An STO Express spokesman told the South China Morning Post on Monday that the robots had helped the company save half the costs it typically required to use human workers. They also improved efficiency by around 30% and maximised sorting accuracy, he said.

    “We use these robots in two of our centres in Hangzhou right now,” the spokesman said. “We want to start using these across the country, especially in our bigger centres.”

    Manufacturers across China have been increasingly replacing human workers with machines, for one simple reason: Chinese wage growth is soaring with average wages in China’s manufacturing sector rising above those in countries such as Brazil and Mexico.

    Meanwhile, the output of industrial robots in the country grew 30.4% last year. In the country’s latest five-year plan, the central government set a target aiming for annual production of these robots to reach 100,000 by 2020.

    Elsewhere, Apple’s supplier Foxconn last year replaced 60,000 factory workers with robots. The Taiwanese smartphone maker has several factories across China, with the bulk of the hundreds of thousands of employees set to be rep[laced by robots.

  • "The System Itself Is Beyond Repair"

    Authored by Antonius Aquinas,

    The Cost Of A Trump Presidency

    Last Thursday’s wanton attack on a Syrian air field by the US and its bellicose actions toward North Korea have brought to the forefront the real cost of candidate Trump’s landslide victory last November.

    Unlike most laymen, accountants, and financial analysts, economists look at cost differently.  For economists, cost or more specifically, “opportunity cost,” means “a benefit that a person could have received, but gave up, to take another course of action.  Stated differently, opportunity cost represents an alternative given up when a decision is made.”

    Such thinking can be roughly applied to the political realm.  In the case of last fall’s US Presidential election, the cost of Donald Trump’s unexpected victory was not the money spent on the campaign, but the diffusion (hopefully, only temporary) of the growing anti-Establishment groundswell that was percolating not only in America, but across the globe.

    The Trump phenomenon, Brexit, Texas secession talk, anti-immigration gatherings, central bank scrutiny, the exposure and decline of the lying, dominant mass media, and other populist movements and causes were symptoms of the masses dissatisfaction with their exploitation by the ruling elites. Trump’s triumph has squashed and defused many of these populist uprisings since a number of his campaign themes empathized with these trends.

    A similar situation occurred after Ronald Reagan’s victory in the 1980 election as the great anti-government wave, which swept him into power, dried up almost immediately since Ronnie was perceived as “one of us.”  Of course, Reagan was a disaster and fulfilled none of his anti-government campaign rhetoric, but instead went on to become, for a time, the biggest Presidential spender in US history.

    A Clinton victory, although certainly tyrannical in the short run, would have, no doubt, furthered the anti-Establishment fires and inspired more.  For example, Texas may be now on the road to independence from the Federal Leviathan.

    The ills that plague the US and, for that matter, the Western world, will not be solved through a Trump Presidency in “making America great again,” but will only come about through political decentralization and the abolition of central banking with a return to sound money.  Concomitant with political decentralization and secession is military contraction, as smaller political jurisdictions will have lesser pools of wealth to tap from while the absence of an inflationary central bank will make military adventurism extremely difficult to conduct.

    Yet, before such a transformation can take place, an ideological foundation must first be established.  A Hillary Clinton Administration would have provided fertile ground for such change.

    Since the groundwork for a depoliticized world has not been laid, a Trump Presidency made sense as long as he kept as close as possible to his campaign agenda, the most important of which was foreign policy.  His condemnation of the neocons’ policies which have bankrupted the nation, murdered thousands of innocents abroad, and heighten tensions everywhere was crucial in his shocking victory last November.  It is apparent that he did not understand how important this support was or he would have never undertaken such an utterly stupid decision.

    With the strike on Syria and seemingly more military action in the offering, Trump’s Presidency is now the worst of all possible worlds, at least in the short run, for those opposed to the New World Order.  Most serious observers, however, understood, especially after the appointment of so many Goldman Sachs cretins, Israeli Firsters, and nutty warmongers to his administration, that Trump would eventually succumb to the pressure.  More importantly, Trump was never fully grounded in an America First mindset, probably not knowing where that term originated or its gallant founders.

    All, however, is not lost.

    Trump’s capitulation makes it abundantly clear that the system itself is beyond repair.  Getting the right individual to salvage the American welfare/warfare state cannot be done.  Trump had many advantages that no future candidate will likely possess which means that anybody that follows will be an “insider.”  Much of his base, therefore, will no longer support a future Republican candidate or will give him only lukewarm support .  With no independent personality to rally around, the millions of disappointed Trumpians will seek new governing paradigms which hopefully will lead to the growth of secession movements.

    Ultimately, however, a permanent American foreign policy of non intervention, peace, and free trade will only come about when there is a change in the prevailing ideology of society where all contenders for political office espouse such a notion and today’s warmongers are seen for what they are: enemies of humanity and its Creator.

  • Fox's Bill O'Reilly Takes Sudden "Planned" Vacation; James Murdoch Reportedly Wants Him Gone

    Amid a sexual harrassment scandal, Fox's Bill O'Reilly surprised viewers tonight and announced he will be taking a "planned" vacation until April 24th. The timing is interesting as over two dozen companies – including Mercedes-Benz, Hyundai, BMW and Allstate – have pulled advertisements and as NYMag.com reports, two highly-placed Fox News sources say 21st Century Fox CEO James Murdoch would like O’Reilly to be permanently taken off the air.

    As HollywoodReporter notes, O'Reilly assured viewers that his trip was planned long ago, as he takes a vacation “often around this time of year," in order to dispel any notion that it was a forced suspension. He announced that he’d scheduled his trip “last fall” – well before the New York Times reported he paid $13 million to settle harassment claims.

    //video.foxnews.com/v/embed.js?id=5394623830001&w=466&h=263

    A Fox News source told NYMag.com's Gabriel Sherman that O’Reilly plans to return to his show on April 24. But according to four network sources, there’s talk inside Fox News that tonight’s show could be his last. Lawyers for the law firm Paul, Weiss, hired last summer by 21st Century Fox to investigate Roger Ailes, are currently doing a “deep dive” investigation into O’Reilly’s behavior. They’re focused now on sexual harassment claims by O’Reilly guest Wendy Walsh after she reported her claims via the company’s anonymous hotline.

    O'Reilly previously dismissed the charges in a statement posted to his official site soon after the report was published.

    "Just like other prominent and controversial people, I’m vulnerable to lawsuits from individuals who want me to pay them to avoid negative publicity. In my more than 20 years at Fox News Channel, no one has ever filed a complaint about me with the Human Resources Department, even on the anonymous hotline," the statement read.

     

    "But most importantly, I’m a father who cares deeply for my children and who would do anything to avoid hurting them in any way. And so I have put to rest any controversies to spare my children. The worst part of my job is being a target for those who would harm me and my employer, the Fox News Channel. Those of us in the arena are constantly at risk, as are our families and children. My primary efforts will continue to be to put forth an honest TV program and to protect those close to me."

    But as NYMag reports, Fox News co-president Bill Shine has been working hard to keep O’Reilly, sources said. But O’Reilly’s future is in the hands of the Murdochs. “It’s up to the family,” the senior Fox News staffer said. The Murdochs are presently divided over how to handle it.

     Two highly-placed Fox News sources say 21st Century Fox CEO James Murdoch would like O’Reilly to be permanently taken off the air, while his father Rupert and older brother Lachlan are more inclined to keep him.

    (A spokesperson for the Murdochs declined to comment.)

  • Putin: "Idlib Was A "False Flag" Attack And We Have Learned That More Are Coming"

    With Rex Tillerson on his way to Russia, moments ago Russian president Vladimir Putin shocked reporters when he said that Russia has received intelligence from “trusted sources” that more attacks using chemical weapons are being prepared on the Damascus region, meant to pin the blame on the Assad government.

    “We have reports from multiple sources that false flags like this one – and I cannot call it otherwise – are being prepared in other parts of Syria, including the southern suburbs of Damascus. They plan to plant some chemical there and accuse the Syrian government of an attack,” he said at a joint press conference with Italian President Sergio Mattarella in Moscow

    The Russian President announced that Russia will officially turn to the UN in the Hague for an investigation of the chemical weapons’ use in Idlib.  Moscow has dismissed suggestions that the Syrian government that it backs could be behind the attack in Idlib province.

    “All incidents reminiscent of the ‘chemical attacks’ that took place in Idlib must be thoroughly investigated,” Putin said.

    Damascus denied the allegations, noting that the targeted area may have been hosting chemical weapons stockpiles belonging to Islamic State (IS, formerly ISIS/ISIL) or Al-Nusra Front jihadists.

    The incident has not been properly investigated as yet, but the US fired dozens of cruise missiles at a Syrian airbase in a demonstration of force over what it labeled a chemical attack by Damascus.

    Putin also pointed out that the latest US missile strikes in Syria bring to mind the United States’ UN Security Council address in 2003 that led to the invasion of Iraq, an address which has now been thorougly debunked as using flawed information to garner global support for an invasion.

    “President Mattarella and I discussed it, and I told him that this reminds me strongly of the events in 2003, when the US representatives demonstrated at the UN Security Council session the presumed chemical weapons found in Iraq. The military campaign was subsequently launched in Iraq and it ended with the devastation of the country, the growth of the terrorist threat and the appearance of Islamic State [IS, formerly ISIS] on the world stage,” he added.

    The Russian president also slammed the Idlib attack, officially denouncing it as a “false flag” attack.

    Putin also said that there is no meeting with Tillerson currently on his schedule.

    Following Putin’s presser, Russian General Staff released a statement announcing that it has information of militants bringing poisonous substances to areas of Khan Shaykhun, West of Aleppo and Eastern Guta in Syria.

    Chief of the Russian General Staff Main Operational Directorate Col. Gen. Sergei Rudskoy said that the militants are trying to provoke new accusations targeted at Syrian government for alleged use of chemical weapons. The militants aim to incite the US to conduct new strikes, Rudskoy warned, adding that such measures are impermissible. He said that according to the Russian general staff new US airstrikes in Syria are unacceptable and that the Syrian forces posses no chemical weapons.

Digest powered by RSS Digest

Today’s News 11th April 2017

  • "It's Not A War Crime" – EU Finance Chief Attempts To Defend His "Women & Booze" Outburst

    The head of eurozone finance chiefs has hit back following his recent comments on troubled European countries, telling the media “it looks like I committed a war crime.” He insists that all he wanted to express was the idea that “solidarity is not charity.”

    At the end of March, Jeroen Dijsselbloem had said that “I cannot spend all my money on liquor and women and then ask for your support,” referring to certain European nations asking for bailouts.

    And now, as RT reports, in comments published on Monday by De Volkskrant newspaper, the departing Dutch finance minister attempted to clarify his remarks, explaining that “fatigue may have played a role” in the wording of his initial comments as “it was three days after the [Dutch] election.”

    The official also said that the backlash he received was just “anger at eight years of crisis policy” sweeping the EU.

    “I would have rephrased it otherwise, probably. But it was my way of making clear that solidarity is not charity,” the official told the newspaper.

    Dijsselbloem’s initial comments had sparked a wave of outrage from numerous European politicians, as well as the public.

    In the latest interview, Dijsselbloem rejected the calls for his resignation, and urged the EU to pay more attention to real issues that the union is facing.

    "It's sad that we put so much time and energy into an interview while Greece is slipping into a new crisis," Dijsselbloem said to De Volkskrant.

     

    "[It’s] really annoying that so many people were so offended and angry. But the parliamentarians are trying to push me into a corner, as if I claimed that all Southern Europeans are big spenders. Nonsense!" he added.

     

  • Mac Slavo Warns Prepare For War: "It's Going To Obliterate The Global Financial System…"

    Authored by Mac Slavo via SHTFplan.com,

    You know what’s so tragic about America? Despite all of the wars our nation gets involved in, we’re secretly one of the most peaceful cultures on the planet. We voted for George Bush, because he promised us a non-interventionist foreign policy. We voted for Obama, because he promised to bring the troops home from Iraq and Afghanistan. We voted for Trump, because he promised to end the nation building policies of his predecessor.

    And that’s the real tragedy. We’ve been voting for peace for nearly 20 years now, and all we get is war.

    That should really tell you something. It should tell you that our system doesn’t care about what the president stands for, or what the voters want. The system is never held accountable for anything, so there is nothing stopping it. One way or another, the deep state always gets its way. So if our government wants a war, then you can bet that we’re going to war.

    That was made abundantly clear last week when President Trump ordered the bombing of an air base in Syria. The attack was so provocative, that the Kremlin went so far as to say that the US is now “only one step from war” with Russia. The man who was supposed to buck the system and drain the swamp; the man who promised to restore our relationship with Russia and pull back from brinkmanship, seems to have finally submitted to the warmongers in our government. The deep state’s plan to drag us into a horrible conflagration was only temporarily derailed by Trump, and now it appears that their plans are back on track.

    But there’s a silver lining in all of this. Once you know that war is inevitable, and you accept that fact, you can have a pretty good idea of what’s going to happen next. You can finally take steps to prepare for it.

    syria-tomahawk-attack1

    As for what to expect next, you can bet the farm that our economy is not going to survive the next major war, especially if it involves a conflict with Russia or China. Even if this war doesn’t turn into a nuclear slugfest, it’s going to obliterate the global economy and financial system.

    For years Russia and China have been building an alternative to the dollar dominated financial system. They’ve built the BRICS financial bloc, they’ve been stocking up on gold, and they’ve been establishing trade agreements that don’t involve the dollar. When war breaks out, there’s going to be another system waiting in the wings to replace the dollar, which has been the world’s reserve currency for decades. The war will motivate China, Russia, and their allies, to pull the rug out from under the current economic paradigm.

    Obviously that’s going to significantly weaken the value of the dollar, but it will be just the beginning. The cost of fighting this war will be astronomical. To give you an idea of how costly it will be, World War Two pushed our nation into the highest debt to GDP ratio that we’ve ever been in; a level we haven’t come close to again until very recently. Think about that. We have almost the same debt to GDP ratio as we had when we fought the most expensive and destructive war in our history. As the Wealth Research Group has already pointed out, the dollar is practically on life support. Our government is buried in debt and practically broke as it is, and the cost of fighting another world war would put us over the edge. We’d be bankrupt in no time at all.

    When you consider all of this, one thing is absolutely clear. If Trump drags us into another major war, regardless of whether or not it is global in scope, the dollar is going to crash. It may not even survive in its current form. And when that happens, people are going to flee toward safe haven assets. You can rest assured that gold is going to make a comeback, the likes of which none of us have seen in our lifetimes.

    The heavy hitters in the investment community have been predicting a dramatic change in the gold market for some time now. And unlike the general public, they weren’t persuaded into thinking that someone like Trump was going to save our country from collapse. For instance, Doug Casey of Casey Research; perhaps one of the most well-respected economic prognosticators, told Future Money Trends the following:

    The one thing I feel very confident of is we’re going to have financial chaos in years to come and that’s going to drive people into gold and to a lesser degree into silver.

     

     

    There’s absolutely  no reason from  fundamental point of view for bonds and stocks to be as high as they are right now… We’re in for a huge political, financial, demographic and military upset… these people might start World War III or seem like they’re trying to with the Russians… It’s a very dangerous situation.

    He said that back in December, after Trump was elected but before he took office. Though he was optimistic about Trump, he clearly wasn’t convinced that he’d be able to prevent an economic collapse. Neither was Amir Adnani, the CEO of GoldMining Inc. Without even considering the possibility of war, he predicted that Trump’s policies would lead to a gold market rally.

    So this is really an exceptional window and opportunity for us. We built a war chest with over $21 million of cash on hand, the very large resource base that we have, and that serves as a key point of drawing more companies to us who want to be part of the platform that we’re building. So this is a very interesting window for us; I believe this is a temporary window as well, because there’s no doubt in my mind that the policies of President Trump will prove to be very inflationary. And these very inflationary policies will drive real interest rates into the negative territory, and I really do believe that the stage is set for higher gold prices, but of course, these things take time to develop and manifest themselves.

    But when you add war to the mix, it’s obvious that the dollar isn’t going to be able to maintain its current value. Our financial system is both fragile and under enormous pressure. It was already headed toward collapse, and the costs associated with another major war are going to expedite that process. When it happens, only the folks with real assets will be above water. Assets like land, weapons, food, and of course gold, will be the only things separating the haves from the have nots.

  • PIECZENIK EXPLODES: ISSUES WARNING TO TRUMP, MATTIS AND MCMASTER ABOUT GOING TO WAR IN SYRIA

    America’s foremost expert in international affairs, having served under 5 Presidents, instrumental in the Camp David accords, in addition to playing a key role in regime changes around the globe for decades, Dr. Steve Pieczenik exploded with rage on the Alex Jones show yesterday — warning Trump and his team that war crimes would follow if they pursued a neocon agenda of war in Syria, which the American people do not want.
     
    “This is a warning to our generals, Mcmaster, and others, who think they can do a regime change in Syria. Number one, that will not be possible, not with the military, not with all the forces you have and not with the quality of the soldiers you have, the generals. Any notion of a regime change through force is both absurd or criminal. The issue of Syria and Assad have no national security interests to us at all. This will be an incredible dereliction of duty if we go to war in Syria.”
     
    He then warned Mcmaster and Mattis directly, saying that he will “come forth, and be tried for criminal activity, as will Mathis.”

    “There is no reason to put our men and women in harm’s way for oil pipelines, or whatever nonsense that is military industrial complex thinks we need to do to get in the middle east. We have no interest in the middle east.”
     
    “There is no cause for war.”
     
    “Again, we’re going through the nonsense of the neocons.”

    Dr. Pieczenik made his first public appearance in more than 30 years during the Presidential elections, saying in no uncertain terms that he represented a faction of the American intelligence community that would not allow Hillary Clinton to become the next President. Moreover, he claimed to be part of an organization that released the Podesta emails to Wikileaks. Interestingly, the mainstream media continues to ignore the good Doctor — in spite of the fact that is resume is anything but conspiratorial. He is the real deal.
     
    At one point in the interview, he got so heated that Jones had to cut him off when he threatened legal action against the President.
     

    “If this goes any step further, this is a warning to our generals, to our President, and anyone involved. Once again, we will react quite vociferously and strongly. This is grounds for all types of legal action against the President.”

     
    He further elaborated on the situation in Syria as a war that is unwinnable, describing how the Assad family was firmly entrenched and could not be displaced by American forces, who have ‘no idea what they’re doing.’

    “The people I know in the military are increasing their force structures to the degree that there is no strategy whatsoever. If you have no strategy, and regime change isn’t a strategy, do not go to war.”
     
    “The President needs to understand, if he goes to war, that’s his problem and we will have a major blowback, domestically. Our military is not prepared for this type of war. Our generals have no idea what they’re doing.”

     
    A confused Jones, obviously caught off guard by the acrimonious tone of Dr. Pieczenik, asked what had changed from Friday to cause him to issues these warnings.
     
    Pieczenik described, from a psyops point of view, the things he learned over the weekend that caused him to worry.

    But once I hear, and I understand there are more forces placed there over the weekend, there was artillery placed in there. And in fact, they are creating in the White House, what we call a dichotomy or two messages.”
     
    “You have a purposeful confusion.”
     
    “Do not go to war in Syria.”

     
    A must listen.

    Content originally published at iBankCoin.com

  • 1983 CIA Document Reveals Plan To Destroy Syria, Foreshadows Current Crisis

    Prophetically foreshadowing the current crisis (and apparent action plan), leaked CIA documents from the reign of Bashar al-Assad's father in the 1980s show a Washington Deep State plan coalescing to "bring real muscle to bear against Syria," toppling its leader (in favor of one amenable to US demands) , severing ties with Russia (its primary arms dealer), and paving the way for an oil and gas pipeline of Washington's choosing.

    As ActivistPost.com's Brandon Turbeville detailed (just a day before Trump unleashed his Tomahawks), as the Syrian crisis enters its sixth year, the Donald Trump administration is looking more and more like the Obama administration every day. With the Trump regime refusing to open useful dialogue with Russia regarding Syria, its obvious anti-Iran and pro-Israel positioning, and support for a very questionable “safe zone” plan for Syria, the odds of a rational U.S. policy in regards to Syria has lower and lower odds of existence as time progresses.

    Yet, despite the fact that the Trump administration is apparently poised to continue the Obama regime’s proxy war of aggression against the people of Syria, an example of seamless transition, it should also be remembered that the plan to destroy Syria did not begin with Obama but with the Bush administration.

    Even now, as the world awaits the continuation of the Syrian war through a Democratic and Republican administration, the genesis of that war goes back to the Republican Bush administration, demonstrating that there is indeed an overarching agenda and an overarching infrastructure of an oligarchical deep state intent on moving forward regardless of which party is seemingly in power.

    As journalist Seymour Hersh wrote in his article, “The Redirection,”

    To undermine Iran, which is predominantly Shiite, the Bush Administration has decided, in effect, to reconfigure its priorities in the Middle East. In Lebanon, the Administration has cooperated with Saudi Arabia’s government, which is Sunni, in clandestine operations that are intended to weaken Hezbollah, the Shiite organization that is backed by Iran. The U.S. has also taken part in clandestine operations aimed at Iran and its ally Syria. A by-product of these activities has been the bolstering of Sunni extremist groups that espouse a militant vision of Islam and are hostile to America and sympathetic to Al Qaeda.

    “Extremist groups that espouse a militant vision of Islam” who are “hostile to America and sympathetic to al-Qaeda” are the definition of the so-called “rebels” turned loose on Syria in 2011. Likewise, the fact that both Iran and Hezbollah, who are natural enemies of al-Qaeda and such radical Sunni groups, are involved in the battle against ISIS and other related terrorist organizations in Syria proves the accuracy of the article on another level.

    Hersh also wrote,

    The new American policy, in its broad outlines, has been discussed publicly. In testimony before the Senate Foreign Relations Committee in January, Secretary of State Condoleezza Rice said that there is “a new strategic alignment in the Middle East,” separating “reformers” and “extremists”; she pointed to the Sunni states as centers of moderation, and said that Iran, Syria, and Hezbollah were “on the other side of that divide.” (Syria’s Sunni majority is dominated by the Alawi sect.) Iran and Syria, she said, “have made their choice and their choice is to destabilize.”

     

    Some of the core tactics of the redirection are not public, however. The clandestine operations have been kept secret, in some cases, by leaving the execution or the funding to the Saudis, or by finding other ways to work around the normal congressional appropriations process, current and former officials close to the Administration said.

     

    . . . . . .

     

    This time, the U.S. government consultant told me, Bandar and other Saudis have assured the White House that “they will keep a very close eye on the religious fundamentalists. Their message to us was ‘We’ve created this movement, and we can control it.’ It’s not that we don’t want the Salafis to throw bombs; it’s who they throw them at—Hezbollah, Moqtada al-Sadr, Iran, and at the Syrians, if they continue to work with Hezbollah and Iran.”

     

    . . . . . .

     

    Fourth, the Saudi government, with Washington’s approval, would provide funds and logistical aid to weaken the government of President Bashir Assad, of Syria. The Israelis believe that putting such pressure on the Assad government will make it more conciliatory and open to negotiations. Syria is a major conduit of arms to Hezbollah.

     

    . . . . .

     

    In January, after an outburst of street violence in Beirut involving supporters of both the Siniora government and Hezbollah, Prince Bandar flew to Tehran to discuss the political impasse in Lebanon and to meet with Ali Larijani, the Iranians’ negotiator on nuclear issues. According to a Middle Eastern ambassador, Bandar’s mission—which the ambassador said was endorsed by the White House—also aimed “to create problems between the Iranians and Syria.” There had been tensions between the two countries about Syrian talks with Israel, and the Saudis’ goal was to encourage a breach. However, the ambassador said, “It did not work. Syria and Iran are not going to betray each other. Bandar’s approach is very unlikely to succeed.”

     

    . . . . . .

     

    The Syrian Muslim Brotherhood, a branch of a radical Sunni movement founded in Egypt in 1928, engaged in more than a decade of violent opposition to the regime of Hafez Assad, Bashir’s father. In 1982, the Brotherhood took control of the city of Hama; Assad bombarded the city for a week, killing between six thousand and twenty thousand people. Membership in the Brotherhood is punishable by death in Syria. The Brotherhood is also an avowed enemy of the U.S. and of Israel. Nevertheless, Jumblatt said, “We told Cheney that the basic link between Iran and Lebanon is Syria—and to weaken Iran you need to open the door to effective Syrian opposition.”

     

    . . . . .

     

    There is evidence that the Administration’s redirection strategy has already benefitted the Brotherhood. The Syrian National Salvation Front is a coalition of opposition groups whose principal members are a faction led by Abdul Halim Khaddam, a former Syrian Vice-President who defected in 2005, and the Brotherhood. A former high-ranking C.I.A. officer told me, “The Americans have provided both political and financial support. The Saudis are taking the lead with financial support, but there is American involvement.” He said that Khaddam, who now lives in Paris, was getting money from Saudi Arabia, with the knowledge of the White House. (In 2005, a delegation of the Front’s members met with officials from the National Security Council, according to press reports.) A former White House official told me that the Saudis had provided members of the Front with travel documents.

    Hersh also spoke with Sheikh Hassan Nasrallah, leader of the Shi’ite Lebanese militia, Hezbollah. In relation to the Western strategy against Syria, he reported,

    Nasrallah said he believed that America also wanted to bring about the partition of Lebanon and of Syria. In Syria, he said, the result would be to push the country “into chaos and internal battles like in Iraq.” In Lebanon, “There will be a Sunni state, an Alawi state, a Christian state, and a Druze state.” But, he said, “I do not know if there will be a Shiite state.” Nasrallah told me that he suspected that one aim of the Israeli bombing of Lebanon last summer was “the destruction of Shiite areas and the displacement of Shiites from Lebanon. The idea was to have the Shiites of Lebanon and Syria flee to southern Iraq,” which is dominated by Shiites. “I am not sure, but I smell this,” he told me.

     

    Partition would leave Israel surrounded by “small tranquil states,” he said. “I can assure you that the Saudi kingdom will also be divided, and the issue will reach to North African states. There will be small ethnic and confessional states,” he said. “In other words, Israel will be the most important and the strongest state in a region that has been partitioned into ethnic and confessional states that are in agreement with each other. This is the new Middle East.”

    Yet, while even the connections between the plans to destroy Syria and the Bush administration are generally unknown, what is even less well-known is the fact that there existed a plan to destroy Syria as far back as 1983.

    Documents contained in the U.S. National Archives and drawn up by the CIA reveal a plan to destroy the Syrian government going back decades. One such document entitled, “Bringing Real Muscle To Bear In Syria,” written by CIA officer Graham Fuller, is particularly illuminating. In this document, Fuller wrote,

    Syria at present has a hammerlock on US interests both in Lebanon and in the Gulf — through closure of Iraq’s pipeline thereby threatening Iraqi internationalization of the [Iran-Iraq] war. The US should consider sharply escalating the pressures against Assad [Sr.] through covertly orchestrating simultaneous military threats against Syria from three border states hostile to Syria: Iraq, Israel and Turkey.

    Even as far back as 1983, Syrian President Bashar al-Assad’s father, Hafez Assad, was viewed as a gadfly to the plans of Western imperialists seeking to weaken both the Iraqis and the Iranians and extend hegemony over the Middle East and Persia. The document shows that Assad and hence Syria represented a resistance to Western imperialism, a threat to Israel, and that Assad himself was well aware of the game the United States, Israel, and other members of the Western imperialist coalition were trying to play against him. The report reads,

    Syria continues to maintain a hammerlock on two key U.S. interests in the Middle East:

     

    Syrian refusal to withdraw its troops from Lebanon ensures Israeli occupation in the south;

     

    Syrian closure of the Iraqi pipeline has been a key factor in bringing Iraq to its financial knees, impelling it towards dangerous internationalization of the war in the Gulf

     

    Diplomatic initiatives to date have had little effect on Assad who has so far correctly calculated the play of forces in the area and concluded that they are only weakly arrayed against him. If the U.S. is to rein in Syria’s spoiling role, it can only do so through exertion of real muscle which will pose a vital threat to Assad’s position and power.

    The author then presents a plan that sounds eerily similar to those now being discussed publicly by Western and specifically American corporate-financier think tanks and private non-governmental organizations who unofficially craft American policy. Fuller writes,

    The US should consider sharply escalating the pressures against Assad [Sr.] through covertly orchestrating simultaneous military threats against Syria from three border states hostile to Syria: Iraq, Israel and Turkey. Iraq, perceived to be increasingly desperate in the Gulf war, would undertake limited military (air) operations against Syria with the sole goal of opening the pipeline. Although opening war on a second front against Syria poses considerable risk to Iraq, Syria would also face a two-front war since it is already heavily engaged in the Bekaa, on the Golan and in maintaining control over a hostile and restive population inside Syria.

     

    Israel would simultaneously raise tensions along Syria’s Lebanon front without actually going to war. Turkey, angered by Syrian support to Armenian terrorism, to Iraqi Kurds on Turkey’s Kurdish border areas and to Turkish terrorists operating out of northern Syria, has often considered launching unilateral military operations against terrorist camps in northern Syria. Virtually all Arab states would have sympathy for Iraq.

     

    Faced with three belligerent fronts, Assad would probably be forced to abandon his policy of closure of the pipeline. Such a concession would relieve the economic pressure on Iraq, and perhaps force Iran to reconsider bringing the war to an end. It would be a sharpening blow to Syria’s prestige and could effect the equation of forces in Lebanon.

    Thus, Fuller outlines that not only would Syria be forced to reopen the pipeline of interest at the time, but that it would be a regional shockwave effecting the makeup of forces in and around Lebanon, weakening the prestige of the Syrian state and, presumably, the psychological state of the Syrian President and the Syrian people, as well as a message to Iran.

    The document continues,

    Such a threat must be primarily military in nature. At present there are three relatively hostile elements around Syria’s borders: Israel, Iraq and Turkey. Consideration must be given to orchestrating a credible military threat against Syria in order to induce at least some moderate change in its policies.

    This paper proposes serious examination of the use of all three states – acting independently – to exert the necessary threat. Use of any one state in isolation cannot create such a credible threat.

    The strategy proposed here by the CIA is virtually identical to the one being discussed by deep state establishment think tanks like the Brookings Institution today. For instance, in the Brookings document “Middle East Memo #21: Saving Syria: Assessing Options For Regime Change,” it says,

    Turkey’s participation would be vital for success, and Washington would have to encourage the Turks to play a more helpful role than they have so far. While Ankara has lost all patience with Damascus, it has taken few concrete steps that would increase the pressure on Asad (and thereby antagonize Tehran). Turkish policy toward the Syrian opposition has actually worked at cross-purposes with American efforts to foster a broad, unified national organization. With an eye to its own domestic Kurdish dilemmas, Ankara has frustrated efforts to integrate the Syrian Kurds into a broader opposition framework. In addition, it has overtly favored the Syrian Muslim Brotherhood over all other opposition groups. Washington must impress upon Turkey the need to be more accommodating of legitimate Kurdish political and cultural demands in a post-Asad Syria, and to be less insistent on the primacy of the Muslim Brotherhood.

     

    Some voices in Washington and Jerusalem are exploring whether Israel could contribute to coercing Syrian elites to remove Asad. The Israelis have the region’s most formidable military, impressive intelligence services, and keen interests in Syria. In addition, Israel’s intelligence services have a strong knowledge of Syria, as well as assets within the Syrian regime that could be used to subvert the regime’s power base and press for Asad’s removal. Israel could posture forces on or near the Golan Heights and, in so doing, might divert regime forces from suppressing the opposition. This posture may conjure fears in the Asad regime of a multi-front war, particularly if Turkey is willing to do the same on its border and if the Syrian opposition is being fed a steady diet of arms and training. Such a mobilization could perhaps persuade Syria’s military leadership to oust Asad in order to preserve itself. Advocates argue this additional pressure could tip the balance against Asad inside Syria, if other forces were aligned properly.

    While Syria is not in conflict with Iraq today, after being destroyed by the United States in 2003, Western Iraq now houses the mysteriously-funded Islamic State on the border between Iraq and Syria.

    That being said, this plan is not merely being discussed, it is being implemented as one can clearly see by the fact that Israel routinely launches airstrikes against the Syrian military, Turkey continues to funnel ISIS and related terrorists into Syria through its own territory, and ISIS continues to present itself as an Eastern front militarily. As a result, the “multi-front” war envisioned and written about by the CIA in 1983 and discussed by Brookings in 2012 has come to fruition and is in full swing today.

    *  *  *

    Full Document below:

    *  *  *

    Then three years later, another CIA report (found recently in CREST database by Wikileaks) confirms much of the above, raising once again the goal of reducing Russian influence, and toppling any Syrian leadership that was inclined to escalate tensions with Israel…

    Under most circumstances Moscow's position in Syria should remain strong, but should Syria suffer another devastating military defeat at the hands of Israel new leaders might decide to look elsewhere for military equipment.

     

    A shift to a Western arms supplier also could prompt parallel efforts to seek Western financial advice and support.

    Best case scenario for Washington…

    We judge that US interests in Syria probably would be best served by a Sunni regime as it might well include relative moderates interested in securing Western aid and investment.

     

    Such a regime probably would be less inclined to escalate tensions with Israel.

    Russian relations…

    Syria is the centerpiece of Moscow's influence in the Middle East. Moscow thus has a vested interest in major policy shifts or changes in Syrian leadership. The Soviet Union and its East European allies provide virtually all of Syria's arms, and the Soviets deliver more weapons to Syria than to any other Third World client.

     

    We believe Moscow's interests would be seriously jeopardized if Sunnis came to power through a civil war. Many Sunnis resent the Soviets because they are closely identified with Alawi dominance, and Sunnis would be especially hostile toward the Soviets if they had supported Alawis with military equipment and advisors in a civil war.

    SCENARIOS OF DRAMATIC POLITICAL CHANGE

    US biggest fear was series of coups over succession of Bashar al-Assad's father… That did not come to be.

    Civil war (similar to what is very evident now)…

    Sunni dissidence has been minimal since Assad crushed the Muslim Brotherhood in the early 1980s, but deep-seated tensions remain–keeping alive the potential for minor incidents to grow into major flareups of communal violence. For example, disgruntlement over price hikes, altercations between Sunni citizens and security forces, or anger at privileges accorded to Alawis at the expense of Sunnis could foster small-scale protests. Excessive government force in quelling such disturbances might be seen by Sunnis as evidence of a government vendetta against all Sunnis, precipitating even larger protests by other Sunni groups.

    Best case scenario…

    In our view, US interests would be best served by a Sunni regime controlled by business-oriented moderates. Business moderates would see a strong need for Western aid and investment to build Syria's private economy, thus opening the way for stronger ties to Western governments. Although we believe such a government would give some support–or at least pay strong lipservice–to Arab causes, this group's preoccupation with economic development and its desire to limit the role of the military would give Sunnis an incentive to avoid a war with Israel.

    However…

    We believe Washington's gains would be mitigated, however, if Sunni fundamentalists assumed power. Although Syria's secular traditions would make it extremely difficult for religious zealots to establish an Islamic Republic, should they succeed they would likely deepen hostilities with Israel and provide support and sanctuary to terrorist groups.

    It's a little late for that Islamic State genie to go back in the bottle now.

    As Brandon Turbeville concludes, the trail of documentation and the manner in which the overarching agenda of world hegemony on the behalf of corporate-financier interests have continued apace regardless of party and seamlessly through Republican and Democrat administrations serves to prove that changing parties and personalities do nothing to stop the onslaught of imperialism, war, and destruction being waged across the world today and in earnest ever since 2001. Indeed, such changes only make adjustments to the appearance and presentation of a much larger Communo-Fascist system that is entrenching itself by the day.

  • Doctor Dragged From United Plane After Computer "Solves" Overbooking Problem

    A man was violently dragged off of a United Airlines flight Sunday evening after it was apparently overbooked, according to passengers who were on the plane.

    As The Courier Journal reports, a United spokesperson confirmed in an email Sunday night that a passenger had been taken off a flight in Chicago.

    “Flight 3411 from Chicago to Louisville was overbooked,” the spokesperson said. “After our team looked for volunteers, one customer refused to leave the aircraft voluntarily and law enforcement was asked to come to the gate.

     

    “We apologize for the overbook situation. Further details on the removed customer should be directed to authorities.”

    Passengers were told at the gate that the flight was overbooked and United, offering $400 and a hotel stay, was looking for one volunteer to take another flight to Louisville at 3 p.m. Monday. Passengers were allowed to board the flight, Bridges said, and once the flight was filled those on the plane were told that four people needed to give up their seats to stand-by United employees that needed to be in Louisville on Monday for a flight. Passengers were told that the flight would not take off until the United crew had seats, Bridges said, and the offer was increased to $800, but no one volunteered.

    Then, she said, a manager came aboard the plane and said a computer would select four people to be taken off the flight. One couple was selected first and left the airplane, she said, before the man in the video was confronted.

    Bridges said the man became “very upset” and said that he was a doctor who needed to see patients at a hospital in the morning. The manager told him that security would be called if he did not leave willingly, Bridges said, and the man said he was calling his lawyer. One security official came and spoke with him, and then another security officer came when he still refused. Then, she said, a third security official came on the plane and threw the passenger against the armrest before dragging him out of the plane.

    “Everyone was shocked and appalled,” Bridges said. “There were several children on the flight as well that were very upset.”

  • Postal Service Suspended In Swedish "No-Go" Zone Because It's "Not Safe"

    Last night we noted that, rather than help police arresting a suspect in Friday’s horrendous terrorist attack in Stockholm, migrant residents of the suburb of Rinkeby apparently decided instead to pelt the arresting officers with rocks.  Of course, the incident was just one more example of the unintended consequences of Sweden’s ‘open border’ policies and a direct contradiction of arguments from senior Swedish officials that would suggest that the influx of migrants hasn’t made towns like Rinkeby any less safe. 

    That said, less than 24 hours later, the Swedish postal service has been forced to suspend service to Rinkeby after declaring the area “unsafe” for workers.  So if the no-go zones in Sweden are simply ‘fake news’, as the mainstream media would suggest, perhaps they should give the ‘all clear’ to Rinkeby’s postal workers who are refusing to even go outside. 

    //platform.twitter.com/widgets.js

     

    Here is more on the situation from MITTI:

    The reason is that it is not considered safe for postal staff to deliver the mail at some locations in the area.

     

    It’s been messy in the area and therefore a protective stop to ensure the safety of our staff, says Maria Ibsen, press officer at PostNord.

     

    She says that they currently do not know how long the protective stop will continue. But the dialogue with several parties and hope to be able to solve.

     

    Björn Schenholm, property manager at Einar Mattsson, who manage the properties in Hjulsta, estimates that about 120 households affected by the stoppage.

    Of course, we don’t suspect you’ll read about this service interruption from any MSM outlets as they’re too busy fulfilling their obligations to suppress ‘inconvenient’ facts that may hinder their pro-globalist agendas.

    //platform.twitter.com/widgets.js

     

    That said, Swedish Prime Minister Stefan Lofven did tell a Swedish news agency that he was “frustrated” by the news that last week’s terrorist attack was carried out by a migrant who wasn’t even supposed to be in the country.  It’s a small admission but the first step is admitting you have a problem. 

  • Mike Krieger Explains His Strategy For Confronting And Defeating The Status Quo

    Authored by Mike Krieger via Liberty Blitzkrieg blog,

    There’s one main reason the vast majority of Americans continue to lose and suffer, while a very small percentage of people continue to win and prosper, and it can be summed up with one word, unity.

    I know this sounds corny and cliché, but that doesn’t make it untrue. There’s a reason a small group of vested parties are able to run this country in their interests alone while the general public gets scraps, and it’s not simply money. A big part of the problem lies in ourselves and our inability to form mass movements that cross political lines on issues of tremendous importance. The “elite” don’t suffer from such divisiveness, which is how they are able to hold on to power despite repeated failures spanning decades.

    A perfect example of how the status quo comes together when their collective interests are threatened was on full display during the 2016 election. Many of us stood in shock with our mouths open in horror as corporate Democrats, neoconservative Republicans and the corporate media formed a total alliance in opposition to Donald Trump. Those of us who pay attention to the world knew this had nothing to do with Trump’s comments about Mexicans or Muslims. All of that was merely a smokescreen for what really concerned them. What really got them terrified was the prospect that Trump would reverse course on the reckless late-stage imperial foreign policy that has been relentlessly pursued since the attacks of September 11, 2001.

    To see what I mean, watch the following video of General Wesley Clark describing the days after 9/11:

    I’m sure you noticed Syria mentioned in that clip. The plan to overthrow Syria was already laid out over 15 years ago. As you can see, they’re a bit behind schedule, which is why we witnessed complete panic when Trump won the Presidency. While I was always convinced Trump would be a ruthless corporatist at home and all his commentary against Wall Street was a lie, I held out a small degree of hope he might chart a more reasonable course on foreign policy. This is clearly not the case, and Trump has now been trapped and played by the foreign policy establishment. He is now their puppet.

    With his bombing of Syria, Trump has been successfully manipulated into a distinct foreign policy from what he promised during the campaign and adamantly warned against in 2013 when Obama was threatening military intervention in Syria. Trump was played by neocons in the Republican Party (principally John McCain and Lindsey Graham), Russia conspiracy theorists in the Democratic Party (led by Adam Schiff), and the always war-mongering corporate media. It was this unified stance by powerful interest groups ostensibly residing on conflicting sides of the political spectrum that won this fight and flipped Trump. The status quo stood together on an issue they care deeply about (provocation with Russia and war in Syria) and they are getting what they wanted.

    To see just how united the corporate press is on this issue, take a look at these tweets from Adam Johnson.

    //platform.twitter.com/widgets.js

    //platform.twitter.com/widgets.js

    //platform.twitter.com/widgets.js

    Meanwhile, let’s see how Trump’s new neocon best friends are thanking him for his reckless bombing.

    //platform.twitter.com/widgets.js

    //platform.twitter.com/widgets.js

    Well yeah, Wesley Clark already told us all about that.

    //platform.twitter.com/widgets.js

    Meanwhile, Graham is calling for 5,000-6,000 U.S. ground forces in Syria, so there’s that. The neocons smell blood and weakness and are now going for the jugular. Well done, Donald Trump.

    The bottom line here is we need to learn lessons from our adversaries in order to defeat them. The “elite,” or status quo, isn’t a uniform blob which maintains conformity with one another on every political issue. That said, there are some issues so important to establishment players that they will put aside all other concerns in order to defend them. Imperial wars of domination is one of these issues, which is why rather than accept defeat after the election, the truly powerful in America united like never before to paint Trump as a Putin puppet so that he’d be backed into a corner and then manipulated into doing their bidding at the appropriate moment. This is exactly what happened.

    The “elite” are very good at unifying when their key interests are threatened, while average American citizens are terrible at it. We’ve been completely divided and conquered. We’ve self-separated into ideological tribes where we support and celebrate only those thinkers who agree with us on a vast majority of issues. As such, when something like a crazy neocon war abroad becomes a reality we are totally incapable of crossing tribal lines to unite on an issue of tremendous importance. The elite have no such qualms, which is why they win and we lose.

    Going forward, we must totally dismiss the notion that movements should be centered around individual politicians, and center them around principles.  It wasn’t “getting the right person elected” that changed anything in the civil rights movement, rather it was mass popular movements by average citizens who pressured politicians. It’s never the politicians, it’s always the people. This is how it’s always been and how it must be today. I think activism has completely lost its way and until it finds strategic understanding, will continue to fail. There’s power in numbers, and we have the numbers on all sorts of issues if we can only get out of our little tribal comfort zones and accept people as allies in struggles of particular importance even if you disagree with them on a host of other issues.

    While there are a large number of issues I care deeply about, I’ve come to the conclusion that we need to pick one big issue and then build a huge tent around it. I think Trump’s recent escalation of hostilities in Syria means interventionist wars in the Middle East should be the first issue we unify to challenge. It’s high profile, extremely dangerous and the sort of thing that can generate unity amongst a huge percentage of the population.

    If war in Syria will be our first order of business, where do things stand as we speak? For one thing, I got a lot out of a recent poll highlighted by The Hill. Here’s what we learned:

    About half of Americans support the Trump administration’s decision last week to launch a missile strike on a Syrian air base, according to a new poll.

     

    A HuffPost/YouGov survey finds 51 percent of Americans support the president’s decision to order the airstrikes in retaliation for a chemical attack last week that killed civilians in northern Syrian.

     

    Thirty-two percent of Americans are opposed to the strikes and 17 percent are uncertain.

    Your immediate reaction to this may be that it’s disturbing and discouraging that 51% of Americans support the strike, and I understand that sentiment. However, given the total unified propaganda front from the tripartisan elite (corporate media and the Republican and Democratic establishment), the number is actually pretty low. Moreover, the following is encouraging.

    Slightly more than one-third of respondents think the president should not take additional military action, compared to 20 percent who believe Trump should. Another 45 percent were unsure of what the president should do regarding future military action.

    Only 20% of Americans want more strikes, but we know what McCain, Graham and Kristol want. Which makes you wonder, how will the neocons shape public opinion and get their expanded war? The corporate media, of course. This is the media’s true role in the American oligarchy. It must mold the opinions of the 45% who “aren’t sure what to do next” and convince them that more war is necessary. Be on the look out for that, because it’s coming.

    Moreover, we learned some additional information in a different poll, also highlighted by The Hill:

    Pollsters also found that 70 percent believe Trump requires authorization from Congress before pursuing additional action in Syria.

     

    Few Americans desire U.S. military involvement in Syria beyond airstrikes, however, with 18 percent supporting the use of ground troops.

    It’s very clear Americans don’t want a ground presence in Syria, but as we learned, Lindsey Graham is calling for exactly that to the tune of 5,000-6,000 troops. Again, the only way for the neocons to boost this number from 18% to something more acceptable is the corporate press. The above tells us that something to the tune of 200 million American adults may be against a ground war in Syria. If that’s right, where are the anti-war protests? Where’s the mass movement against more interventionism? Where did all the vagina hats go?

    The movement is nowhere to be seen largely because the 80% of Americans against an escalation of this war are divided and bickering on a laundry list of other issues. The public has been totally divided and conquered and remains entirely unable to come together to stop something as important as war despite agreeing with one another on the subject. This absence of unity leaves the public vulnerable to manipulation by the corporate media and politicians who want more war, which is exactly what’s going to happen if we don’t wise up.

    So how do we achieve this unity I’m calling for? It’s not going to be easy, but I think the first step is for all of us to get out of our tribes start listening to people outside our comfort zones. I try to do this here at Liberty Bltizkrieg with my posts. For example, one day you may see a video of Ron Paul and the next an interview with Chris Hedges. I don’t agree with either one on all issues, but they both have integrity and are against unethical destructive wars abroad. If people who like Ron Paul can cross over and shake hands with people who prefer Chris Hedges and agree to fight imperial war together, we can build the popular movements that will be necessary to turn this country around. If not, we will continue to lose.

    The choice is ours.

  • Tomahawks Have Been The US Weapon Of Choice For Years

    Late last week, two U.S. warships fired 59 Tomahawk cruise missiles at a Syrian airbase in response to a suspected chemical weapon attack in the town of Khan Sheikhoun. As Statista's Nial McCarthy details, the Tomahawk cruise missile has been at the very tip of America's spear in every major military intervention since 1991.

    Infographic: Tomahawks have been the US weapon of choice for years  | Statista

    You will find more statistics at Statista

    In the Gulf War, 288 of the missiles were fired at targets in Iraq and this increased to 415 when Operation Desert Fox took place in the country seven years later. During Operation Odyssey Dawn in Libya in 2011, at least 112 Tomahawks were fired over the course of the conflict.

    Read more about the history of the weapons system in the Independent where the above infographic was featured.

  • Millennials: A Menacing Metamorphosis To The Status Quo

    Submitted by Stock Board Asset Management

    Last week, Gordon T. Long and Charles Hugh Smith discussed in an interview of the current generational shift occurring in the United States. The interview is called Called Millennials: A Menacing Metamporsis. To note, both Gordon T. Long and Charles Hugh Smith understand their baby boomer generation is the status quo, and is currently being uprooted by the millennials, who are slated to take the reins in the next 8 years. In my opinion, this should be coined the ‘clash of generations’, where ultimately the millennials will be stitching their beliefs and ideas on the American fabric. As expressed in the interview, the status quo is underestimating the serious ramifications of this generational shift.

    General shifts in America are completely normal and have produced serious economic and or social consequences through time.  One of the best blueprints and guides of generational shifts is the Strauss–Howe generational theory explaining the four cycles of with-in a full-generation (80-100 years). In fact, starting in the 2007/2008 period,  Strauss–Howe generational theory explains how the United States started the generation shift called the Fourth Turning where the old older is destroyed giving light to the new order i.e. Millennials: A Menacing Metamporsis. 

    The interview touches on 10 important points of how the millennial beliefs and ideas will change the American landscape in the next 8 years. Changes that we see today include household formation, retail trends, transportation trends, and the shift to urbanization.

    During the US Presidential Election, the most noticeable idea that the millennial generation was underestimated by the status quo was the unanimous support for Bernie Sanders rather than the status quo Hillary Clinton.

    When peaking into Bernie Sanders’s platform, it understood as far-left leaning, which could highlight the core belief system of the millennials. This may serve as a guide in the direction America is headed.

    Millennials are virtually split when it comes to Socialism or Capitalism. This is a much different view than the status quo, which alludes to serious economic adjustments are on the horizon.

    As of 2017, millennials are 36% of the workforce and in 8 years are projected to be 75% of the workforce.

    The millennial generation has a much different composition of demographics verse the prior generation. Leads to social adjustments…

    Here is 1-4 changes of how the millennial generation is different from the past. Economic stagnation has shaped the millennial generation in to who they’re today.

    Student debt levels are a defining point of the millennials generation. No other generation has ever taken on this much student debt despite being the most educated.

    Millennials are currently making economic decisions based on the burdensome of student loan debt.

    A major shift in real estate as millennials demand urban centers, which is a complete flip from prior generations pushing out to suburbia.

    Millennials will have a profound change in the transportation industry. Technology and crowd sharing has pushed millennials to Uber and Lyft. This will be challenging for the auto industry to maintain auto sales, along with energy producers of crude products.

    Millennials are already having a drastic change in the retail space. The technology millennials are adapting is contributing to the retail apocalypse.

    The millennial generation has been subjected to fear and war in their entire lifespan. This generation has witnessed the negative effects of globalism hallowing out the middle class around them. Millennials search for security, which may explain why Bernie Sanders was the best platform of choice, because he offered ‘light at the end of the tunnel’.

    More social ramifications for the US economy are the millennials thought of various forms of debt should be forgiven. The old order has produced a debt ball and chain.

    Last but not least, Gordon T. Long and Charles Hugh Smith forgive the millennials and blame the educational system for why the millennials think the way they do.

    For the next 8 years one should sit down, strap in, and hold-on. The generational rollercoaster will involve chills and thrills, but it’s completely normal. All we say is just be on the right side of history.

    * * *

    Full video below

     

Digest powered by RSS Digest

Today’s News 10th April 2017

  • New York Set To Be First State With 'Free' Tuition At Public Colleges

    A last minute budget negotiation late Friday pretty much ensures that New York will be the first state to offer ‘tuition-free’ public higher education to its entitled snowflakes.  The $163 billion state budget agreement includes the Excelsior Scholarship, which covers tuition for any New Yorker accepted to one of the state’s community colleges or four-year universities, provided their family earns less than $125,000 a year.

    Of course, for politicians, ‘free’ is just a nice way of saying they’re about to jam more taxes down the throats of working Americans to cover the cost of services they may or may not use personally.

    Free College

     

    The scholarship program will be phased in over three years, beginning for New Yorkers making up to $100,000 annually in the fall of 2017, increasing to $110,000 in 2018, and reaching $125,000 in 2019. Nearly 1
    million families will qualify for the scholarship.

    It is a last-dollar program, meaning the state would cover any tuition left over after factoring in federal Pell Grants and New York’s Tuition Assistance Program. Students must be enrolled in college full time and take at least 30 course credits a year, though those facing hardships can pause and restart the program or take fewer credits.

    As the Washington Post points out, the program is expected to cost New York taxpayers $163 million in its first year and, like all other entitlements, will only grow over time. 

    Proposed by Gov. Andrew M. Cuomo in January, the scholarship taps into one of the Democratic Party’s most popular ideas and advances a bipartisan movement to lower the cost of college that is taking shape across the country.

     

    “Today, college is what high school was — it should always be an option even if you can’t afford it,” Cuomo said in a statement Saturday. “With this program, every child will have the opportunity that education provides.”

     

    Not much changed from the initial proposal, including the $163 million estimated cost for the first year of the program, though there were concessions to win over lawmakers. Award recipients attending community college now have to remain in New York for two years after graduation, while those at state universities must stay for four years. Private universities, whose leaders said the plan would undermine their schools, will see an increase in state tuition assistance funding.

    Of course, the irony of the situation is that, like many misinformed liberal entitlement programs, throwing more money at U.S. universities only serves to exacerbate the underlying problem of bloated, out-of-control college budgets.  But, on the bright side, America’s snowflakes will have yet another pool of money on which they can rely to fund their hedonistic, binge-drinking filled spring break trips to Cancun

  • An Unhinged McCain Calls for More War in Syria, Says Russia is Guilty of War Crimes

    John McCain was on Face the Nation today, getting his neocon on, discussing the next steps that needed to be taken in Syria — dealing with Assad.

    He approved of the President’s strikes — calling it a good ‘first step.’ But, he wants MOAR — accusing both Syria and Russia of war crimes, in addition to blaming Assad for the rise of ISIS. You cannot make this stuff up.
     

    “And I think it was important. But it is now vitally important we develop a strategy, we put that strategy in motion, and we bring about peace in the region. And that obviously means that there has to be a cessation of these war crimes.
     
    John, dropping, using chemical weapons is a war crime, but starving thousands of people in prisons is also. Barrel bombs which indiscriminately kill innocent civilians, precision strikes done by Russians on hospitals in Aleppo are war crimes as well.
     
    So there’s a lot of war crimes that are taking place. And another area — aspect of this that I do not agree with the secretary is that you have to just concentrate on ISIS.
     
    We will take Mosul. We will take Raqqa. And we better have strategies as to how to handle those places once we have won it. But they are not disconnected from Bashar al-Assad and the al Qaeda and the war crimes that have been taking place.
     
    You can’t — to a large degree, Bashar al-Assad, by polarizing the Syrian people, have also given rise to ISIS and al Qaeda. So they are both connected. And I believe that the United States of America can address both at the same time. We can walk and chew gum.
     
    We have the capability to do both. And, yes, we want a negotiated settlement, but the only way that that will happen is if it is not in their interests to continue what they have been successful at for over eight years. And that is why I thought, symbolically and psychologically, the president’s action was very important, but now we better follow it up. And, by the way, we should have cratered the runways.”

     
    Seemingly ignoring the fact that ISIS and US backed ‘rebels’ in the region are responsible for the majority of civilian deaths in Syria, McCain carried on as if Assad was merely bombing civilians and not actually in the midst of a long, drawn out, civil war — which was started by ISIS. McCain wants the U.S. military to set up a ‘safe zone’ in Northern Syria.
     

    “And also, when you see these crimes that are being committed, they are horrifying. John, I also believe that a grieving mother whose child has been killed isn’t too concerned whether it is a chemical weapon or a barrel bomb. He is still slaughtering people. And we may stop the chemical weapons.
     
    But we have also got to stop the other indiscriminate, inhumane war crimes that are being committed as well. And that means, obviously, trying to set up some kind of safe zone, so that these refugees can have a place where they can be. And, also, that would help with the refugee flow issue.”

     
    In response to President Trump’s strike on the Syrian airbase, McCain thinks we should’ve done more.
     

    “Well, I think the fact that we acted was very important, and I support the president’s action.
     
    And I have been told that there was some recommendations to take out all six places that the Syrian air force operates out of. But now that they are flying again, basically, within 36 hours is not a good signal.
     
    But I would point out, taking out their — all their support facilities doesn’t let them fly with any consistency. But it — the signal that they are able to fly almost right away out of the same facility indicates that I don’t think we did as thorough enough job, which would have been cratering the runways.
     

    //platform.twitter.com/widgets.js

     
    And somebody will say, well, then they can fill in the runways. Yes. And we can crater them again too.”

    Has it ever dawned on McCain and the other neocons in America that maybe, just maybe, Russia would respond to our attacks on their ally, in an effort to protect Russian soliders on the ground? Has the concept of ‘mutually assured destruction’ gone by wayside somehow — the ultimate quagmire which has kept America out of a war with Russia for the past 70 years?

    Content originally published at iBankCoin.com

  • Bizarro World: Some Republicans Now Defending "Failing" ObamaCare

    For months now we’ve warned, as have many prominent Republican legislators, that Obamacare is on the verge of collapse (see “Obamacare On “Verge Of Collapse” As Premiums Set To Soar Again In 2017“). 

    It’s not that shocking really as the fundamental concept behind the legislation made it doomed from the start.  The idea was that, out of an abundance of compassion for their elders, young, healthy millennial families would fork up $10s of thousands of dollars each year to purchase health insurance they didn’t really need.  Those premiums would then be used to subsidize care for the elderly who consume more than their “fair share,” to quote Obama.

    Unfortunately, the basic math skills of our young millennials turned out to be better than the Obama administration had planned for and they figured out they were better off just paying the Obamacare tax to the IRS than paying the larger Obamacare ‘tax’ associated with buying a service they never use.  This “adverse selection bias” left risk pools way worse than insurers planned, which drove premiums even higher, which forced even more young people to ditch their insurance and the cycle will continue until the system ultimately fails.

    In fact, as we pointed out last week, Knoxville, TN could be ground zero for the Obamacare explosion as it’s 40,000 residents live in a county that has been left with no healthcare options for the 2018 plan year after Humana pulled out of exchanges there.

    And, with the fate of Obamacare all but sealed, you can imagine our shock to learn that several House Republicans are now apparently warming up to the legislation.

    One such person is Patrick McHenry of North Carolina who says that any efforts of the Trump administration to lure votes from the Freedom Caucus by relaxing rules to allow insurance providers to charge people with pre-existing conditions higher premiums would be a “bridge too far” for some more moderate Republicans.  Per The Hill:

    Rep. Patrick McHenry (R-N.C.), the GOP’s chief deputy whip, said Wednesday that the Freedom Caucus’s calls for states to be able to apply for waivers to repeal pre-existing condition protections are “a bridge too far for our members.”

     

    Those ObamaCare protections include what is known as community rating, which prevents insurers from charging higher premiums to people with pre-existing conditions, and guaranteed issue, which prevents insurers from outright denying coverage to them.

     

    McHenry spoke in personal terms about the importance of keeping in place those Affordable Care Act (ACA) provisions, contained in Title I of the law.

     

    “If you look at the key provisions of Title I, it affects a cross section of our conference based off of their experience and the stories they know from their constituents and their understanding of policy,” McHenry said.

     

    “My family history is really bad, and so my understanding of the impact of insurance regs are real, and I believe I’m a conservative, so I look at this, understand the impact of regulation, but also the impact of really bad practices in the insurance marketplace prior to the ACA passing,” he continued. “There are a lot of provisions that I’ve campaigned on for four election cycles that are part of the law now that I want to preserve.”

    Trump Ryan

    Meanwhile, other Republicans are also supporting ObamaCare’s expanion of Medicaid and the so-called “minimum coverage” mandate that, among other things, requires men to pay for maternity benefitsand while it may now be customary for our snowflakes to “choose” their own gender, we’re pretty sure that biology doesn’t actually work that way. 

    Many Republicans from states that accepted ObamaCare’s expansion of Medicaid are supporting keeping it.

     

    A group of Republican senators, including Sen. Cory Gardner (R-Colo.), the chairman of Senate Republicans’ campaign arm, last month objected to a draft of the House GOP repeal bill because it did not “provide stability and certainty for individuals and families in Medicaid expansion programs or the necessary flexibility for states.”

     

    The House bill would effectively end the Medicaid expansion starting in 2020. Rep. Chris Smith (R-N.J.) warned that change “affects so many of our disabled individuals and families, and the working poor.”

     

    Republicans had long derided ObamaCare’s “essential health benefits,” which mandate 10 health services that insurance plans must cover. They have said, for example, that men should not be forced to pay for plans that cover maternity care.

     

    But now some Republicans are speaking up in favor of those requirements, including the chairman of the powerful Appropriations Committee, Rep. Rodney Frelinghuysen (R-N.J.).

     

    “In addition to the loss of Medicaid coverage for so many people in my Medicaid-dependent state, the denial of essential health benefits in the individual market raise serious coverage and cost issues,” Frelinghuysen wrote in a statement last month announcing he would oppose the House GOP repeal bill.

     

    House Republicans even touted an amendment on Thursday that they said would bring down premiums by the government helping to pay for the costs of high-cost enrollees. That program is very similar to one that already existed in ObamaCare, called “reinsurance.”

    Of course, it’s looking increasingly likely that former House Speaker John Boehnor was right about Republicans and healthcare all long when said that the idea of a quick repeal and replace was just “happy talk….Republicans never ever agree on health care.”

  • Eric Peters Calls it: "The Change Of Change Is Now Negative"

    Ahead of what we hope will be a relatively quiet week following the juggernaut from the past 7 days, we present readers with another excerpt from the latest weekly note from Eric Peters, CIO of One River, which is not only appropriate in the context of recent observation by UBS, involving the sudden collapse of the global credit impulse, but far more importantly, may be critical for those who are in the business of timing key market inflection points.

    From Weekend Notes by Eric Peters

    “The change of change is now negative,” said the CIO.

     

    “Global growth is still rising, but the rate of improvement is slowing,” he explained. “Same holds true for global inflation, oil prices, copper, iron ore. Credit growth is slowing in the US, Europe, Japan, China.”  If these things were all contracting, we’d plunge into recession, but we’re not there. We’re simply at the point in the cycle where the rate of acceleration is slowing – which is both evidence of a pause, and a precondition for every major turn.

     

    “The last time we had a major shift in the change of change was a year ago.” In Jan/Feb 2016, China was imploding. Commodity prices were tanking with equity markets, the dollar soared alongside volatility. Then China unleashed explosive credit stimulus, while the Fed blinked, guiding forward interest rates dramatically lower.

     

    Within a short time, the change of change turned positive. Which is not to say things immediately accelerated, it’s just that they started contracting more slowly. And that marked the time to buy.

     

    “Pretty much everything that happened in 2016 can be explained by two things; China and oil prices,” he said. “Literally, that’s it.”

     

    China’s stimulus-induced rebound and the oil price recovery is all that mattered.

     

    “Brexit was a joke. Trump was a joke. In fact, the only real significance of those events was that they provided investors with opportunities to jump on board the reflation trade at back near Q1 prices.” The reflation trade quietly began in the Q1 collapse, and accelerated off the extreme post-Brexit summer lows in global interest rates.

     

    “That’s what made last year remarkable. Even investors who missed the first opportunity, had two chances to make a lot of money.” You see, that reward is usually reserved for those who act on the first signs of a change in the change of change.

    Summary: as Peters helpfully points out, the change of change – that “green light” to buy risk one year ago when it flipped positive – is now negative. Or, as UBS summarized it simply in just one chart several weeks ago

  • Second-Order Consequences of Self-Driving Vehicles

    Authored by Mish Shedlock via Mish Talk,

    Benedict Evans, a blogger who works for a venture capital firm that invests in technology, has an interesting article on the shift to electric and self-driving vehicles.

    Please consider snips from Cars and Second Order Consequences by Benedict Evans.

    There are two foundational technology changes rolling through the car industry at the moment; electric and autonomy. Electric is happening right now, largely as a consequence of falling battery prices, while autonomy, or at least full autonomy, is a bit further off – perhaps 5-10 years, depending on how fast some pretty hard computer science problems get solved.

     

    Both electric and autonomy have profound consequences beyond the car industry itself. Half of global oil production today goes to gasoline, and removing that demand will have geopolitical as well as industrial consequences. Over a million people are killed in car accidents every year around the world, mostly due to human error, and in a fully autonomous world all of those (and many more injuries) will also go away.

     

    However, it’s also useful, and perhaps more challenging, to think about second and third order consequences. Moving to electric means much more than replacing the gas tank with a battery, and moving to autonomy means much more than ending accidents.

     

    Electric Discussion

    In regards to electric, Evans points out 150,000 gas stations while noting cigarette purchases and snacks are the way most of those stores make their money.

    What happens to those stations?

    On September 29,2015, Elon Musk said Tesla Cars Will Reach 620 Miles On A Single Charge “Within A Year Or Two,” Be Fully Autonomous In “Three Years”.

    How’s that prediction working out?

    On March 30, 2016, Bloomberg noted Tesla Model 3 Electric Car Seen Getting 225 Miles Per Charge and we are not there yet. Business insider a month later suggested a range of 215 miles.

    Quartz reports Tesla’s cheaper, more powerful battery cell is the perfect embodiment of its factory model.

     

    Supercharging

    A Tesla presskit says their “Supercharger network covers major routes in North America, Europe, and Asia Pacific. There are more than 3,000 Superchargers worldwide.”

    Their click here link for Supercharger locations turn up “404 page not found”.

    Tesla says their Supercharger can “replenish a half charge in about 30 minutes.” Why not state a quarter charge in 15 minutes or a 16th of a charge in 3.75 minutes?

    If a gas fill-up takes up to 4 minutes, then via Supercharger you will only need to stop 16 times as often for a long trip.

    Am I missing something here?

    It would be one hell of a lot easier if there was a quick and easy way to slide one battery pack out and another into its place.

     

    Home Batteries

    Evans notes …

    “More speculatively (and this is part of Elon Musk’s vision), it is possible that we might all have large batteries in the home, storing off-peak power both to charge our cars and power our homes. Part of the aim here would be to push up battery volume and so lower their cost for both home storage and cars. If we all have such batteries then this could affect the current model of building power generation capacity for peak demand, since you could complement power stations with meaningful amounts of stored power for the first time.”

     

    Long Distance Woes

    Large home batteries do not solve long distance travel.

    There either needs to be much greater battery capacity, much faster charging, or a way to quickly swap batteries.

    I suppose one could simply swap vehicles every 200 miles but that seems like quite a nuisance.

    For those who drive back and forth to work, or only drive within a city, electric works.

    But why have a car at all if that’s all you do? Fleets of self-driving cars will work quite nicely vs the cost of one of these babies.

     

    Autonomy Discussion

    Per Evans …

    The really obvious consequence of autonomy is a near-elimination in accidents, which kill over 1m people globally every year. In the USA in 2015, there were 13m collisions of which 1.7m caused injuries; 2.4m people were injured and 35k people were killed. Something over 90% of all accidents are now caused by driver error, and a third of fatal accidents in the USA involved alcohol. Looking beyond deaths and injuries themselves, there is also a huge economic effect to these accidents: the US government estimates a cost of $240bn a year across property damage itself, medical and emergency services, legal, lost work and congestion (for comparison, US car sales in 2016 were around $600bn). A similar UK analysis found a cost of £30bn, which is roughly equivalent adjusted for the population. This then comes from government (and so taxes), insurance and individual pockets. It also means jobs, of course.

     

    Even simple ‘Level 3’ systems would cut many kinds of accident, and as more vehicles with more sophisticated systems, moving up to Level 5, cycle into the installed base over time, the collision rate will drop continuously. There should be an analogue of the ‘herd immunity‘ effect – even if your car is still hand-driven, my automatic car is still much less likely to collide with you. This also means that cycling would become much safer (though you’d still need to live close enough to where you wanted to go), and that in turn has implications for public health. You might never get to zero accidents – the deer running in front of a car might still get hit sometimes –  but you might get pretty close.

    I am in complete agreement with the above. And with that is where it gets very interesting.  Evans has given this a lot of thought.

    if you have no collisions then eventually you can remove many of the safety features in today’s vehicles, all of which add cost and weight and constrain the overall design – no more airbags or crumple zones, perhaps.

     

    As more and more cars are driven by computer, they can drive in different ways. They don’t suffer from traffic waves, they don’t need to stop for traffic signals and they can platoon –  they can safely drive 2 feet apart at 80 mph.

     

    Parking is another way that autonomy will add both capacity and demand. If a car does not have to wait for you in walking distance, where else might it wait, and is that more efficient?

     

    So, the current parking model is clearly a source of congestion: some studies suggest that a double-digit percentage of traffic in dense urban areas comes from people circling around looking for a parking space, and on-street parking ipso facto reduces road capacity. An autonomous vehicle can wait somewhere else.

     

    If you remove the cost of the human driver from an on-demand trip, the cost goes down by perhaps three quarters. If you can also remove or reduce the cost of the insurance, once the accident rate has fallen, it goes down even further. So, autonomy is rocket-fuel for on-demand. This makes it much easier for many more people to dispense with a car, or only have one, or leave their car at home and take an on-demand ride for any given trip.

     

    Do you end up with reduced bus schedules? Do marginal bus-routes close, pushing people onto on-demand who might not otherwise have used it – if they can use it? Does a city provide, or subsidise, its own-demand service to replace or to supplement buses in lower-density areas? Does your robotaxi automatically drop you off at a bus stop on the edge of high-traffic areas, unless you pay a congestion charge?

     

    Then, of course, there are the drivers. There are something over 230,000 taxi and private car drivers in the USA and around 1.5m long-haul truck-drivers.

     

    Does an hour-long commute with no traffic and no need to watch the road feel better or worse than a half-hour commute stuck in near-stationary traffic staring at the car in front? How willing are people to go from their home in a suburb to dinner in a city centre on a dark cold wet night if they don’t have to park and an on-demand ride is cheap?

     

    In 2030 or so, police investigating a crime won’t just get copies of the CCTV from surrounding properties, but get copies of the sensor data from every car that happened to be passing.

     

    More Questions than Answers

    There is much more in the article. It’s worth a closer look.

    Evans raises far more questions than he answers. Yet, I think the question list is just beginning.

    My timeframe for long-haul driving jobs vanishing has not changed. I still say it starts 2021-2022 at the latest.

     

    How Many Jobs?

    All Trucking says “There are approximately 3.5 million professional truck drivers in the United States, according to estimates by the American Trucking Association. The total number of people employed in the industry, including those in positions that do not entail driving, exceeds 8.7 million.”

    I may have over-estimated the number of long-haul jobs that vanish. However, I may have under-estimated the add-on effects.

    //platform.twitter.com/widgets.js

     

    If a truck can be on the road 24 hours instead of 11, how many trucks so we need? How many people servicing trucks do we need?

    Opportunity for short-haul drivers with smaller trucks will vanish as well. How quickly?

    Package delivery by drone is going to happen, especially smaller packages in rural areas. How Quickly?

    For now, the savings on long-haul trucking are the greatest, and the obstacles the least, so I see no need to change my belief this will begin in a major way within a 2021-2022 timeframe.

    The competition is so massive, all of the above things will happen much faster than most realize.

  • Bank Of America: "Previously This Has Only Happened In 2000 And 2008"

    Although it will not come as a surprise to regular readers that, for various reasons, loan growth in the US has not only ground to a halt but, for the all important Commercial and Industrial Segment, has dropped at the fastest rate since the financial crisis, some (until recently) economic optimists, such as Bank of America’s Ethan Harris, are only now start to realize that the post-election “recovery” was a mirage.

    A quick recap of where loan creation stood in the last week: according to the Fed’s H.8 statement, things continued to deteriorate, and C&I loans rose just 2.8% Y/Y, the worst reading since the start of the decade and on pace to print a negative number – traditionally associated with recessions – within the next four weeks, while total loans and leases rose by just 3.8% in the last week of March, less than half the stable 8% growth rate observed for much of 2014 and 2015.

    Yet while zerohedge readers have been familiar with this chart for months, it appears to have been a surprise to BofA’s chief economist. However, in a report titled “Is soft the new hard data?”, Ethan Harris confirms that he has finally observed the sharp swoon lower and is not at all happy by it.

    As he writes in his Friday weekly recap note, “this week saw some softness in hard data as auto sales and jobs growth declined sharply. While two observations do not make a trend, this occurrence nevertheless is noteworthy as on the one hand very positive sentiment indicators suggest activity should pick up… 

    … while on the other hand loan data suggests everybody is in wait-and-see mode pending details of fiscal stimulus (=tax reform) – which highlights the risk of softer hard economic data.”

    A frustrated Harris then admits that such a sharp and protracted decline in loan creation has only happened twice before: the 2000 and 2008 recessions.

    Weekly bank asset data shows that  C&I lending has not increased since September 7 last year (Figure 2)… 

     

    … the first period of no growth for at least six months since the 2008-2011 aftermath of the financial crisis, and prior to that after the early 2000s recession (Figure 3). 

     

     

    At the same time, consumer loan growth has slowed substantially – up just 1.4% since the US elections compared with 3.1% the same period the prior year (Figure 4).

     

    Then again, with tax reform seemingly dead, not even a formerly uberbullish Harris find much room for optimism…

    As tax reform by House Speaker Ryan’s own account is not going to happen anytime soon, and likely will be watered down as the Border Adjustment Tax (BAT) is replaced by a Value Added Tax (VAT) and the elimination of net interest deductibility for corporations, the biggest near term risk to our bullish outlook for credit spreads we maintain is a correction in equities – most likely prompted by weak hard data.

    … and concludes by echoing Hans Lorenzen’s recent warning, that “the biggest near term risk to our bullish outlook for credit spreads we maintain is a correction in equities – most likely prompted by weak hard data.”

  • An "Investment" Even More Ludicrous Than Government Bonds

    By Chris at www.CapitalistExploits.at

    “What about investing in hard assets like diamonds?”

    I get asked this sometimes so figured I’d cover it here.

    I wrote the below piece some years ago and it answers the question about whether diamonds should be treated as a store of value in an investor’s portfolio.

    The word monopoly has its roots in the Greek words monos (single) and polein (to sell). It first appeared in Aristotle’s Politics where Aristotle describes how in Greece in the 6th century BC the philosopher Thales of Miletus cornered the local olive press market:

    “Thales, so the story goes, because of his poverty was taunted with the uselessness of philosophy; but from his knowledge of astronomy he had observed while it was still winter that there was going to be a large crop of olives, so he raised a small sum of money and paid round deposits for the whole of the olive-presses in Miletus and Chios, which he hired at a low rent as nobody was running him up; and when the season arrived, there was a sudden demand for a number of presses at the same time, and by letting them out on what terms he liked he realized a large sum of money, so proving that it is easy for philosophers to be rich if they choose.”

    Historically one of the most interesting and controversial monopolies is arguably that of the diamond market in recent times.

    Throughout history the supply of diamonds has been very scarce. So much so that it was very difficult even for the creme de la creme of society to get hold of these little stones.

    Things, however, started to change in the late 19th century when diamonds were found in South Africa and a lot of supply suddenly flooded the market. The price of what had been valuable only due to its scarcity was bound to tumble. To prevent this taking place, in 1888, a cartel with all the movers and shakers of the diamond mining world was formed under the name De Beers. And oh, what a cartel it has proved to be.

    Once the supply of the diamonds was under their control, they had to take care of the other side of the equation – the demand.

    To do this they joined forces with an advertising agency N. W. Ayer & Son to impact “social attitudes of the public at large” and thereby channel American spending toward larger and more expensive diamonds instead of “competitive luxuries”, as they put it.

    To prevent any price fluctuations caused by selling the diamonds they had to convince the masses to hold onto them and not to “trade”. This is where the motto “diamonds are forever” was born. With a sophisticated advertising and PR campaign they turned diamonds into epitomes of eternal romance and love. In the next few decades, sales of diamonds in the US increased a hundredfold. Not bad, right?

    However, it didn’t end there.

    They then proceeded to expand to other global markets. In Japan they literally turned a 1,500 year old Japanese marriage tradition upside down as the number of men giving diamond engagement rings to their women rapidly increased in a mere 14 years. Let me tell you, changing Japanese cultural norms is no small task, and yet today Japanese men purchase diamonds for their brides as readily as Americans or Europeans.

    Whenever a new diamond deposit was discovered in the world De Beers rushed in and bought it to minimize fluctuations in diamond prices. They had been relatively successful at that until the very end of the 20th century. At the turn of the century some of the diamond producer countries decided to bypass De Beers’ distribution channels and alternatives began to hit the market.

    Determining the validity of a diamond takes an expert, and these days even the experts struggle to tell an artificial diamond from a natural one. The average man on the street hasn’t a hope in Hell of knowing the difference.

    There are two alternatives to diamonds I’m aware of: moissanite and cubic zirconia, and neither of them have defects, which incidentally is one means of identifying fake from real diamonds. Synthetic diamonds have also been created in labs for decades now and these diamonds are indistinguishable from real diamonds because they are, in fact, diamonds. They are also produced at an absolute fraction of the price of real diamonds.

    For anyone who does a little research they’ll find that diamonds are clearly as rare as macaroni cheese and if they’re not rare, they’re not valuable. Certain diamonds, such as graded diamonds, are somewhat rare, but diamonds themselves are certainly not rare. Even if we pretended for a minute that yes, diamonds are rare, we’re faced with the problem that artificial diamonds can be created by the boatload for next to nothing.

    Diamonds aren’t liquid, either. Try selling a diamond back to Joey the jeweler and you’ll find that typically Joey will pay between 75% and 80% of the purchase price if the diamond wasn’t bought from his store and isn’t verifiable. In fact, many jewelers won’t buy a diamond back unless you’ve previously purchased that same diamond from them and have the documentation to prove it. Even then, they’ll typically only do a trade in, whereby you buy another higher priced diamond and trade your old diamond in.

    In my book, diamonds are a terrible investment. Not rare, not liquid, and not valuable.

    That’s my opinion, which is clearly not shared by the world at large. It’s the perception of rarity that matters. Not unlike the perception of safety afforded JGBs, US Treasury bonds, and EU bonds, people value these assets because they are perceived to be valuable. They’re not, but that’s beside the point… until, well… until it isn’t.

    How come people buy Rolex watches when many of the fake versions today are indistinguishable from the real ones and, according to a number of jewellers, function just as well? Why do people buy Coca Cola, paying more than any number of the cola versions out there which cost less and have the same amount of disgusting ingredients? How is it that diamonds, which are not rare, and which can be produced for a fraction of the cost, sell for such ridiculous prices?

    The answer seems to be that the con job pulled off by arguably THE most successful marketing campaign in corporate history lives on. 15 years ago, De Beers controlled about 80% of the market but that figure has now fallen below 40%. I’m simply surprised that their hold on the market has lasted as long as it has. An exceptional feat. Well done, chaps.

    A good friend of mine who is a successful real estate agent likes to say that the key to a sale is ensuring that the woman is pulled over the line. A man will rarely buy a home his wife doesn’t like. I think the same is probably true of diamonds. Try telling your fiance that you bought her a synthetic diamond engagement ring and, “Oh, honey, aren’t you glad I saved a couple of grand?” See how well that goes down.

    – Chris

    PS: Don’t forget to share this article if you liked it, and if you hated it, don’t forget to send it to everyone you know telling them how bad it is. Have a great weekend!

    “A diamond is forever.” — N.W. Ayer & Son Agency

    ————————————–

    Liked this article? Don’t miss our future missives and podcasts, and

    get access to free subscriber-only content here.

    ————————————–

  • China Offers "Concessions" To Avoid Trade War As Trump Readies Anti-Dumping Probe

    While there was much fanfare over last week’s summit at Mar-A-Lago between the presidents of the US and China, the tangible results to emerge from what was the year’s most important political meeting, aside for a few photo ops, were few and far between. That may change, at least for purely optical purposes, after a report in the Financial Times that China will “offer concessions” to the US to avoid a trade war, including better market access for US financial sector investments and beef, after the nation’s leaders decided last week in Florida they needed results on trade talks within 100 days.

    That said, as the FT itself concedes, “the two concessions on finance and beef are relatively easy for Beijing to make“, especially since one wonders which US firms are in a rush to enter the “bubble-bust” Chinese financial markets which as we described two weeks ago, are persistently on the edge of collapse- not to mention a banking system which has at least $6 trillion in bad debts – and only ever greater government intervention in the form of various Beijing backstops have kept afloat.

    In any case, for those brave enough to rush after Chinese financial “bargains”, they will now be allowed to hold majority stakes in securities and insurance companies which at present they can not do. The country’s largest companies in these sectors, such as Citic Securities and China Life Insurance, have achieved enormous scale which as the FT notes “makes them formidable competitors for new entrants to the market.” Which once again begs the question: which private investor would want to compete with the Chinese government which is the de facto owner of all financial enterprises in China?

    It is also the case that while US companies are invited to invest domestically, this would result in the creation of more Chinese jobs and perhaps boost China’s current account, without actually benefiting US-Sino trade relations.

    Additionally, the FT reports that China is also willing to end a ban on US beef imports that has been in place since 2003, “and buy more grains and other agricultural products as it seeks to reduce tensions stemming from the $347bn annual trade surplus in goods that it enjoys with its biggest trading partner.”

    Putting the relatively modest market in context, the US currently exports roughly $6 billion in beef around the world, with Japan, the biggest import market, accounting for about a quarter. It is unclear how big the potential Chinese market would be, and whether it could compete with other foreign importers. That said, the FT notes that “beef exporters have complained about the lingering Chinese ban on US imports, which was introduced after a BSE scare in the US herd.”

    The bottom line: “while a comprehensive Sino-US investment treaty remains a distant prospect, both sides are hoping to achieve a number of smaller trade deals in the coming three months.” The real take home message, however, is that if China’s concessions are only aimed at finance and agriculture, is that China will – at least for the time being – not touch its 25% auto tariffs, arguably the most controversial issue in Chinese-US trade relations.

    US officials are pressing their Chinese counterparts to lower their current 25 per cent tariff on automotive imports. Beijing in return would like greater protection for Chinese investment in the US, which tripled last year to more than $45bn, and also for Washington to relax restrictions on the sale of certain high-tech products to China. The Chinese government may simply commit to buy more US imports in the same way that Japan did in the 1980s.

    Then there is the issue of steel exports, a long-running topic of contention between the two countries: here, too, China is not budging.

    “We’re not going to export a whole lot of steel to China,” said Chad Bown of the Peterson Institute.  Thanks to a state-directed investment stimulus unleashed in the wake of the global financial crisis, Chinese steelmakers now produce more steel than the rest of the world combined. With the Chinese economy now growing at its slowest pace in a quarter century, reduced demand at home has led to a surge in steel exports, causing global prices to collapse.

    Still, with Trump’s economic successes few and far between, the president will gladly take any “concessions” the Chinese offer, even if it means little in the grand scheme of trade relations between the two nations.

    * * *

    Meanwhile, in a separate report, Axios reported that the Trump administration is preparing an executive order that would probe “unfair” product dumping from foreign companies and could result in tariffs on a wide range of products.  Here is what Axios’ Jonathan Swan said he has learned so far:

    • Steel and aluminum will be targeted.
    • Other products, including household appliances, could be targeted as well.
    • If the investigations result in new import duties it could make some consumer goods more expensive and could hurt the stock prices of American companies that rely on cheap steel imports. A good number of American manufacturing companies, however, could benefit from this hit to their low-cost competitors.

    A White House official was cited as saying this investigation is part of Trump’s effort to protect American jobs and end unfair trade practices like dumping and foreign government subsidization.

    “The administration will use the results of that investigation to determine the best path forward, which could potentially include everything from no action at all to the levying of supplemental duties,” the White House official said. “But whichever action we take will be informed by the results of the investigation and not by predetermined conclusions.”

    Axios further adds that Wilbur Ross is the point man on this executive order, which could arrive as early as late April. “But there’s no point getting too wedded to that timeline, because Trump has slowed the pace of executive actions and this is an especially sensitive one: If it’s clumsy, foreign trading partners could see this as the first shot in a trade war.

    Keep in mind this EO would only lead to a probe, no definitive action yet. So putting it in context, if the investigation does lead to penalties on foreign trading partners, “it will be seen a big win for Steve Bannon, Stephen Miller, Peter Navarro, and other economic nationalists in Trump’s orbit. Given the Syria strikes and Bannon’s demotion from the NSC, their clout has appeared to diminish. The Goldman wing, meanwhile, will likely oppose aggressive trade moves.

    Which, disappointingly, is what the Trump narrative in recent days has boiled down to – which camp is winning, the “nationalist” or the “Goldman” one. For now the score is firmly for the latter.

  • How U.S. LNG Transformed The Market

    Authored by Nick Cunningham of OilPrice.com,

    The global market for LNG is changing quickly, spurred on by new sources of supply from U.S. shale.

    U.S. natural gas production surged over the past decade, as fracking opened up a wave of new gas supply. That wave led to a glut and a crash in prices long before shale drillers did the same for oil. The U.S. was sitting on massive volumes of gas that routinely traded as low as $2 or $3 per million BTU (MMMBtu).

    At the same time, Asian consumers – mainly Japan, South Korea and increasingly China – paid a hefty premium to import gas, with prices spiking close to $20/MMBtu following the Fukushima meltdown in 2011 that left Japan painfully short of functioning electricity capacity.

    That presented U.S. gas companies with a straightforward arbitrage opportunity – export cheap American gas to Asia, selling it for a much higher price. The race to build LNG export terminals was on.

    But by the time the first LNG export terminal in the U.S. came online in 2016, the gas market was radically changed. On the demand side, Japan – the largest LNG importer in the world – was no longer desperate for gas imports in the same way that it was back in 2011 and 2012. New renewable energy, a monumental efficiency campaign, and a greater reliance on coal cut into gas demand. China’s gas demand has also grown slower than expected.

     

    The effects on the supply side of the equation are arguably much more significant. LNG export capacity around the world has surged in recent years, hitting 340 million tonnes per annum (mtpa) in 2016, up from 278.7 mtpa at the end of 2011, an increase of 20 percent. New megaprojects have come online, including Chevron’s Gorgon LNG project in Australia. A whopping 879 mtpa of new export capacity has been proposed for the future, although much of that probably won’t be constructed now that the market is oversupplied.

    Surging supply and disappointing demand caused prices to come down from their peaks. Spot prices in East Asia – the Platts JKM marker – hit $19.42/MMBtu in March 2014. By 2016, Japan only paid an average of $7/MMBtu for imported LNG, or around one-third of the prices from three years ago. Spot prices for May 2017 delivery are now trading below $6/MMBtu.

    The glut of LNG today is upending long-standing trade practices. LNG has historically been traded on long-term contracts at prices linked to the price of crude oil. The volume of LNG traded had once been limited, so there wasn’t much of a true market price for the product. Fixing cargoes to the price of crude oil became a common practice. The crash of crude oil in 2014, not coincidentally, also helped push down the prices of LNG.

    Now, with so much supply on hand, the market is no longer favorable to sellers. But the U.S. is just beginning to ramp up. Cheniere Energy brought the first LNG export terminal online last year on the Gulf Coast. Other projects are under construction and by the end of the decade, the U.S. could be the third largest LNG exporter in the world behind only Australia and Qatar. By 2035, the U.S. is expected to pass them to become the largest LNG exporter in the world.

    “As U.S. exports ramp up, we’re going to see even more flexibility with more people trying to buy and trade volumes. The old models of stable long-term contracts will really have to change,” Zhi Xin Chong, a gas analyst for Wood Mackenzie Ltd., told Bloomberg. “We’ve already seen the impact of U.S. LNG on contract trends, with more destination flexibility coming into play.”

    Contracts used to not only have long time horizons, but would also prohibit buyers from reselling cargoes, limiting the development of a true market for LNG. That is changing, and the more reselling and spot purchases, the more liquid (no pun intended) the market will become.

    But just because new U.S. suppliers are adding competition does not mean that American LNG is the most competitive. At one point it was – cheap Henry Hub prices competed favorably to high-priced LNG in Asia, particularly when oil traded at $100 per barrel. But spot LNG prices in Asia are now lower than some of the American LNG contracts.

    For example, Indonesia’s Pertamina is contracted to buy LNG from Cheniere Energy at Henry Hub prices, plus 15 percent, plus a fixed $3.50/MMBtu fee, according to Bloomberg. When the deal was negotiated in 2013, that equated to something like $8/MMBtu – much better than the $18/MMBtu that LNG traded at the time. However, with spot prices down below $6/MMBtu, Pertamina is now trying to get out of its contract.

    Buyers are demanding that these age-old contract practices be scrapped. JERA Co., a partnership between Japanese utilities Chubu Electric Power and Tokyo Electric Power, is the world’s largest buyer of LNG. JERA formed a common front with Korea Gas Corp. and China National Offshore Oil Corp to establish a buyer’s club in March to force changes in the LNG market. It is sort of the opposite of OPEC – a buyer’s cartel meant to influence prices and dictate contract terms. JERA is expected to sign a deal with France’s Total, which would see flexible volumes delivered based on spot prices.

    But fixed prices and multi-year contracts are not going away entirely – they may just be shifting to lower prices and shorter terms. The former head of Cheniere Energy, Charif Souki, recently offered Japanese customers five-year contracts fixed at $8/MMBtu from an LNG export terminal on the U.S. Gulf Coast beginning in 2023, a contract much shorter than in yester-year when they spanned decades. Now head Inc., Souki is confident his capacity will sell out.

Digest powered by RSS Digest

Today’s News 9th April 2017

  • Former CIA Officer: "The Intelligence Confirms The Russian Account On Syria"

    Authored by Robert Parry via ConsortiumNews.com,

    President Trump earned neocon applause for his hasty decision to attack Syria and kill about a dozen Syrians, but his rash act has all the earmarks of a “wag the dog” moment.

    Just two days after news broke of an alleged poison-gas attack in northern Syria, President Trump brushed aside advice from some U.S. intelligence analysts doubting the Syrian regime’s guilt and launched a lethal retaliatory missile strike against a Syrian airfield.

    The guided-missile destroyer USS Porter conducts strike operations while in the Mediterranean Sea, April 7, 2017. (Navy photo by Petty Officer 3rd Class Ford Williams)

    Trump immediately won plaudits from Official Washington, especially from neoconservatives who have been trying to wrestle control of his foreign policy away from his nationalist and personal advisers since the days after his surprise victory on Nov. 8.

    There is also an internal dispute over the intelligence. On Thursday night, Secretary of State Rex Tillerson said the U.S. intelligence community assessed with a “high degree of confidence” that the Syrian government had dropped a poison gas bomb on civilians in Idlib province.

    But a number of intelligence sources have made contradictory assessments, saying the preponderance of evidence suggests that Al Qaeda-affiliated rebels were at fault, either by orchestrating an intentional release of a chemical agent as a provocation or by possessing containers of poison gas that ruptured during a conventional bombing raid.

    One intelligence source told me that the most likely scenario was a staged event by the rebels intended to force Trump to reverse a policy, announced only days earlier, that the U.S. government would no longer seek “regime change” in Syria and would focus on attacking the common enemy, Islamic terror groups that represent the core of the rebel forces.

    The source said the Trump national security team split between the President’s close personal advisers, such as nationalist firebrand Steve Bannon and son-in-law Jared Kushner, on one side and old-line neocons who have regrouped under National Security Adviser H.R. McMaster, an Army general who was a protégé of neocon favorite Gen. David Petraeus.

    White House Infighting

    In this telling, the earlier ouster of retired Gen. Michael Flynn as national security adviser and this week’s removal of Bannon from the National Security Council were key steps in the reassertion of neocon influence inside the Trump presidency. The strange personalities and ideological extremism of Flynn and Bannon made their ousters easier, but they were obstacles that the neocons wanted removed.

    Though Bannon and Kushner are often presented as rivals, the source said, they shared the belief that Trump should tell the truth about Syria, revealing the Obama administration’s CIA analysis that a fatal sarin gas attack in 2013 was a “false-flag” operation intended to sucker President Obama into fully joining the Syrian war on the side of the rebels — and the intelligence analysts’ similar beliefs about Tuesday’s incident.

    Instead, Trump went along with the idea of embracing the initial rush to judgment blaming Assad for the Idlib poison-gas event. The source added that Trump saw Thursday night’s missile assault as a way to change the conversation in Washington, where his administration has been under fierce attack from Democrats claiming that his election resulted from a Russian covert operation.

    If changing the narrative was Trump’s goal, it achieved some initial success with several of Trump’s fiercest neocon critics, such as neocon Senators John McCain and Lindsey Graham, praising the missile strike, as did Israeli Prime Minister Benjamin Netanyahu. The neocons and Israel have long sought “regime change” in Damascus even if the ouster of Assad might lead to a victory by Islamic extremists associated with Al Qaeda and/or the Islamic State.

    Wagging the Dog

    Trump employing a “wag the dog” strategy, in which he highlights his leadership on an international crisis to divert attention from domestic political problems, is reminiscent of President Bill Clinton’s decision to attack Serbia in 1999 as impeachment clouds were building around his sexual relationship with intern Monica Lewinsky.

    President Donald Trump and Israeli Prime Minister Benjamin Netanyahu at joint press conference on Feb. 15. 2017. (Screen shot from Whitehouse.gov)

    Trump’s advisers, in briefing the press on Thursday night, went to great lengths to highlight Trump’s compassion toward the victims of the poison gas and his decisiveness in bombing Assad’s military in contrast to Obama’s willingness to allow the intelligence community to conduct a serious review of the evidence surrounding the 2013 sarin-gas case.

    Ultimately, Obama listened to his intelligence advisers who told him there was no “slam-dunk” evidence implicating Assad’s regime and he pulled back from a military strike at the last minute – while publicly maintaining the fiction that the U.S. government was certain of Assad’s guilt.

    In both cases – 2013 and 2017 – there were strong reasons to doubt Assad’s responsibility. In 2013, he had just invited United Nations inspectors into Syria to investigate cases of alleged rebel use of chemical weapons and thus it made no sense that he would launch a sarin attack in the Damascus suburbs, guaranteeing that the U.N. inspectors would be diverted to that case.

    Similarly, now, Assad’s military has gained a decisive advantage over the rebels and he had just scored a major diplomatic victory with the Trump administration’s announcement that the U.S. was no longer seeking “regime change” in Syria. The savvy Assad would know that a chemical weapon attack now would likely result in U.S. retaliation and jeopardize the gains that his military has achieved with Russian and Iranian help.

    The counter-argument to this logic – made by The New York Times and other neocon-oriented news outlets – essentially maintains that Assad is a crazed barbarian who was testing out his newfound position of strength by baiting President Trump. Of course, if that were the case, it would have made sense that Assad would have boasted of his act, rather than deny it.

    But logic and respect for facts no longer prevail inside Official Washington, nor inside the mainstream U.S. news media.

    Intelligence Uprising

    Alarm within the U.S. intelligence community about Trump’s hasty decision to attack Syria reverberated from the Middle East back to Washington, where former CIA officer Philip Giraldi reported hearing from his intelligence contacts in the field that they were shocked at how the new poison-gas story was being distorted by Trump and the mainstream U.S. news media.

    Former CIA officer Philip Giradi. (Photo credit: Gage Skidmore)

    Giraldi told Scott Horton’s Webcast: “I’m hearing from sources on the ground in the Middle East, people who are intimately familiar with the intelligence that is available who are saying that the essential narrative that we’re all hearing about the Syrian government or the Russians using chemical weapons on innocent civilians is a sham.”

    Giraldi said his sources were more in line with an analysis postulating an accidental release of the poison gas after an Al Qaeda arms depot was hit by a Russian airstrike.

    “The intelligence confirms pretty much the account that the Russians have been giving … which is that they hit a warehouse where the rebels – now these are rebels that are, of course, connected with Al Qaeda – where the rebels were storing chemicals of their own and it basically caused an explosion that resulted in the casualties. Apparently the intelligence on this is very clear.”

    Giraldi said the anger within the intelligence community over the distortion of intelligence to justify Trump’s military retaliation was so great that some covert officers were considering going public.

    “People in both the agency [the CIA] and in the military who are aware of the intelligence are freaking out about this because essentially Trump completely misrepresented what he already should have known – but maybe he didn’t – and they’re afraid that this is moving toward a situation that could easily turn into an armed conflict,” Giraldi said before Thursday night’s missile strike. “They are astonished by how this is being played by the administration and by the U.S. media.”

    One-Sided Coverage

    The mainstream U.S. media has presented the current crisis with the same profound neocon bias that has infected the coverage of Syria and the larger Middle East for decades. For instance, The New York Times on Friday published a lead story by Michael R. Gordon and Michael D. Shear that treated the Syrian government’s responsibility for the poison-gas incident as flat-fact. The lengthy story did not even deign to include the denials from Syria and Russia that they were responsible for any intentional deployment of poison gas.

    The Arleigh Burke-class guided-missile destroyer USS Ross fires a tomahawk land attack missile from the Mediterranean Sea, April 7, 2017. (Navy photo by Petty Officer 3rd Class Robert S. Price)

    The article also fit with Trump’s desire that he be portrayed as a decisive and forceful leader. He is depicted as presiding over intense deliberations of war or peace and displaying a deep humanitarianism regarding the poison-gas victims, one of the rare moments when the Times, which has become a reliable neocon propaganda sheet, has written anything favorable about Trump at all.

    According to Syrian reports on Friday, the U.S. attack killed 13 people, including five soldiers at the airbase.

    Gordon, whose service to the neocon cause is notorious, was the lead author with Judith Miller of the Times’ bogus “aluminum tube” story in 2002 which falsely claimed that Iraqi leader Saddam Hussein was reconstituting a nuclear-weapons program, an article that was then cited by President George W. Bush’s aides as a key argument for invading Iraq in 2003.

    Regarding this week’s events, Trump’s desperation to reverse his negative media coverage and the dubious evidence blaming Assad for the Idlib incident could fit with the “Wag the Dog” movie from 1997 in which an embattled president creates a phony foreign crisis in Albania.

    A fake war scene in the dark 1997 comedy “Wag the Dog,” which showed a girl and her cat fleeing a bombardment in Albania.

    In the movie, the White House operation is a cynical psychological operation to convince the American people that innocent Albanian children, including an attractive girl carrying a cat, are in danger when, In reality, the girl was an actor posing before a green screen that allowed scenes of fiery ruins to be inserted as background.

    Today, because Trump and his administration are now committed to convincing Americans that Assad really was responsible for Tuesday’s poison-gas tragedy, the prospects for a full and open investigation are effectively ended. We may never know if there is truth to those allegations or whether we are being manipulated by another “wag the dog” psyop.

  • Confused Leftists Slam 'Trumpmageddon' Despite Hillary's Call For Direct Strikes On Syrian Airfields Hours Earlier

    Authored by Mac Slavo via SHTFplan.com,

    With Russian warships now moving towards U.S. Navy Destroyers off the Syrian coast, liberal supporters of Hillary Clinton are freaking out about the possibility of a Trumpmaggedon nuclear war.

     

    Before pointing fingers at President Trump, however, it is important to note that just hours before Trump launched missile strikes against Syrian airfield targets it was none other than Hillary Clinton herself who said she would have done the same thing:

    Speaking to the New York Times columnist Nicholas Kristof, Mrs Clinton said she believed the US had been wrong not to have previously launched such an offensive.

     

    She said: “Assad had an air force, and that air force is the cause of most of the civilian deaths, as we have seen over the years and as we saw again in the last few days.”

     

    “And I really believe that we should have and still should take out his airfields and prevent him from being able to use them to bomb innocent people and drop Sarin gas on them.

    Source: Independent

    Let’s not pretend that Donald Trump did anything Hillary Clinton wouldn’t have done.

    If Trump’s Syrian strikes lead to further tension between the United States and Russia, or even widespread military conflict, it has nothing to do with a Republican or Democrat being in office, but rather, a pre-planned agenda.

    As Ron Paul highlighted this week, it’s the neo-cons who benefit most, and that includes Hillary Clinton.

    War is very good business for the military industrial complex, bank financiers, energy magnates and politicians.

  • ALERT: JFK Murder Conspiracy SOLVED, but who cares

    (GLOBALINTELHUB) – 4/09/2017    Support  solid  intelligence visit our  sponsor www.splittingpennies.com 

    While the world wonders about President Trump, 54 years ago, a US President was murdered in broad daylight in Dallas, Texas; John Fitzgerald Kennedy – the only Irish Catholic President, and possibly one of the only US Presidents that was not a Freemason.  To this day, the facts surrounding this event remain clouded.  The ‘official’ Warren Commission report presents fanciful theories about a “Magic Bullet” that was able to go in and out of JFK’s body multiple times, and other wild fantasies.  But this official report is ‘official’ and any other explanation of the events of that day are ‘conspiracy theories.’  As time has passed, and secondary information surfaces, there are indications of the true power of the information that was kept secret for so long.

    The murder of JFK is perhaps one of the most significant events of the 20th century.  In the past 10 years, new information has surfaced that portends to a major re-investigation into the issue.  As well, a generation has passed since the event which took place 1963.  This article presents two unique viewpoints, previously unpublished, as well as looking at some recently released evidence:

    1. Dr. Arthur Charloff “Art”, Special Agent FBI Oklahoma City, Oklahoma
    2. The book titled Kennedy’s Last Stand: Eisenhower, UFOs, MJ-12 & JFK’s Assassination
    3. Finally, we’ll examine new evidence that has surfaced since the making of Oliver Stone’s “JFK” in 1991

    We will begin with 1. – Art’s involvement in JFK was relatively en-passant.  The FBI was called in because the Dallas police couldn’t be trusted to run a clean investigation.  Art was running the OK office (and has admitted, his station in OK was the reason he left the FBI).  Dr. Charloff is an impeccably fact-based intellectual who was a university professor and Dean of Northwood University; as well as serving as a major financial executive for corporations like Burger King Corporation and others.  For those who don’t know, most FBI recruits are from financial services, especially because the FBI investigates financial crimes.

    When I asked Dr. Charloff point blank who killed JFK he said “We’ll never know, because they killed all the witnesses!” Art was a guy doing his job, a young man at that time, who was not part of any ‘conspiracy’ and certainly wasn’t part of a committee to whitewash something the government or a group inside the government had done.  He did however, reveal things about the FBI, that may have greater meaning and implications, than his investigation of JFK.  First let’s look at where he pops up in the Warren Commission, see the full file here:  105-29WarrenCommissionFileArthurCharloff and  WH26_CE_2809

    One page highlighted:

    This is, for the record, a copy of Art’s CV: arthur-charloff-ph-d-1979-s-w-palm-city-road-d-772

    Art’s FBI stories range from the mundane, such as the agent partner that used to iron the crease in his boxer shorts, to the Hollywood-esque tales of how the Russian embassy brought him tea and cookies one night on a stakeout (while they were performing surveillance on them); “We see you guys sitting there watching us for many hours and thought you might be hungry or thirsty” and even came back to collect the silver tray when they were finished.

    Dr. Arthur Charloff was born in Maine, but grew up in Miami, Florida.  He obtained his PhD from University of Organizational Sciences in Belgrade, Serbia.  His genetic origins can be traced back to a town in Rovno, present day Ukraine (former USSR) – a pogrom town where all his relatives were slaughtered (those who didn’t migrate to USA.)  So, Art’s father Morris and Art were both flag waving jingoists.  Morris was a meat inspector who worked for the USDA.  When he applied for the FBI his Russian origins were an issue and he had to go through special clearances other agents avoided, to prove that he wasn’t a Russian sleeper spy.  Although not practicing, Dr. Arthur Charloff is Jewish (hence the family escaping the pogroms for the safety of America).

    What Art said about the FBI is that the FBI never ‘solves’ crimes, in a traditional sense.  It was more of a business negotiation, relying mostly on Confidential Informants (CIs) and for example in a drug bust, getting street dealers to rat out higher ups and so on up the chain.  He said that the FBI very rarely, if ever – solves crimes like you see in the films.  CIs can work with the FBI for years, even on cases not involving them (for example, a drug related CI may sit in on an organized crime case).

    Global Intel Hub interviewed Dr. Charloff telephonic-ally on March 29th, 2017 for the purposes of research for this article, and to confirm what we had previously thought about Dr. Charloff’s accounts while working for the FBI and after.

    Before getting into any detail about UFOs, Dr. Charloff stated point blank that there was a “rumor” in ‘the bureau’ as they refer to FBI, at the time, that the CIA assassinated JFK.  JFK had a lot of enemies, and wanted to dump the CIA “shit can the whole operation” as well, his brother Robert wanted to usurp the power of the CIA placing them under the DOJ (Department of Justice) of which he was in charge.  Dr. Charloff said his brother (referring to Robert Kennedy) was a ‘tough dude’ and both the Kennedy brothers were very unhappy with the CIA, and especially after the Bay of Pigs debacle.  Also, the CIA had kept JFK out of the information circle, as we shall see later, about a number of topics (at this point, we had not revealed the discoveries presented in the book about UFOs to Dr. Charloff – that was knowledge at the time).  He said that JFK really didn’t even want to be President, all of these issues seemed to bother his brother more than Jack.

    Finally he also stated this was the common opinion of FBI agents at the time, they all looked at each other and said “Something else is going on here” – but continued to do their jobs.

    I asked Dr. Charloff if he noticed anything interesting during the investigation of the murder, he said ‘no’ but later admitted that his bosses (Hoover) had forced them to wrap up the investigation early and without doing their normal due diligence as they would on a high profile murder, which the FBI had experience investigating many.  Dr. Charloff said the ‘higher ups’ simply wanted the investigation shut down and everyone was re-assigned to other cases quickly, out of the area.  They wanted to ‘get this thing closed up as soon as possible, and have no more trouble, no more discussion, about this topic.”

    Bear in mind that Dr. Charloff is a straight arrow kind of guy especially being an agent for the FBI investigating the murder of a sitting President.  Later asked about his opinion of what happened, he said the whole thing ‘stinks’ and the story about Oswald was ridiculous, how did Oswold get out of the military, why did he go to Russia, why did he do it all from the book depository – it just didn’t add up.  Finally Oswald basically threw himself into the arms of police by allowing himself to be arrested.

    The Warren Commission came up with nonsensical conclusions he said, such as the “Magic Bullet” and the lone assassin theory, that Oswald did it by himself.  No one took it seriously, at the time, but what could anyone do?  It was obviously much bigger than one agency, even bigger than the office of the President, so whatever power lurking in the shadows – was not one to mess with!

    But who did it?  In an ironic twist to this testimony, Dr. Charloff’s brother worked at the famous Area 51 military base in the Nevada desert – that’s the base that the military claims doesn’t exist.

    He said that before working there his brother had to surrender ALL of his documents, IDs, social security card, and all else.  He wasn’t allowed to talk about what he did or saw there.  After 6 months a new ‘shift’ comes in and they rotate people there like that.  At least that was how they did it back in the day.

    Why this anecdotal account from someone who is not a critical witness?  Because Dr. Arthur Charloff is a real person – who can attest to the events as they transpired, from another perspective, just an FBI special agent doing his job.

    Part 2: The Book

    Kennedy’s Last Stand: Eisenhower, UFOs, MJ-12 & JFK’s Assassination – This is a must read, for those interested in the topic of ‘information’ and ‘informatics’ even if you’re not interested in the subject of UFOs.  The point here is that documentary evidence regarding the UFO conspiracy is real and comes from the top.  A group so powerful (MJ-12) they shut out the President (Eisenhower) who overcame them only by threatening to invade Area 51 with the Army.  In the past 20 years, new evidence has surfaced, some of which is presented in the book.  Most significantly, the book points a paper trail right to the top of the CIA and beyond.

    Small background on UFO phenomenon as it pertains to this story; UFOs were first discovered by the military over Los Angeles during World War 2.  It was alarming because the Army believed that it was the enemy Japanese attacking, all they saw were ‘airships’ shooting down from the sky; the idea of Aliens or UFOs wasn’t common knowledge at the time.  See a brief summary of the “Battle of Los Angeles”:

    The Battle of Los Angeles, also known as The Great Los Angeles Air Raid, is the name given by contemporary sources to the rumored enemy attack and subsequent anti-aircraft artillery barrage which took place from late 24 February to early 25 February 1942 over Los Angeles, California.  The incident occurred less than three months after the United States entered World War II as a result of the Japanese Imperial Navy‘s attack on Pearl Harbor, and one day after the bombardment of Ellwood on 23 February. Initially, the target of the aerial barrage was thought to be an attacking force from Japan, but speaking at a press conference shortly afterward, Secretary of the Navy Frank Knox called the incident a “false alarm.” Newspapers of the time published a number of reports and speculations of a cover-up.

    Some contemporary ufologists and conspiracy theorists have suggested the targets were extraterrestrial spacecraft.  When documenting the incident in 1949, The United States Coast Artillery Association identified a meteorological balloon sent up at 1:00 am that “started all the shooting” and concluded that “once the firing started, imagination created all kinds of targets in the sky and everyone joined in”.  In 1983, the U.S. Office of Air Force History attributed the event to a case of “war nerves” triggered by a lost weather balloon and exacerbated by stray flares and shell bursts from adjoining batteries.

    After this ‘battle’ UFOs were on the radar of the military – literally.  Military planners, practically, incorporate every kind of potential attack into their strategy planning.  UFOs were not looked at scientifically by the military – simply as a potential threat, whether from Hitler or another planet they didn’t care.

    The second event that marked this age was the Roswell crash, still a big mystery to this day.  Apparently, there were 2 crashes, one with actual biological bodies, and the press release was designed to take the focus away from the more sensitive site.  According to the book, everything was taken to Area 51 for review, where the facility was placed under the security of the CIA and managed by a group formed by Truman known as MJ-12.  A lot of this is not science fiction when considering Nazi scientists developed rockets that NASA still uses to this day via Project Paperclip.  Remember that all of this happened around a time when USA was becoming a superpower, the CIA was just formed, along with the military industrial complex – including its corporate technology arm, still in use today (Silicon Valley).

    Where did the explosion of scientific developments come from such as Kevlar, the Microprocessor, fiber optics, stealth, weather modification, and other technologies come from?  Many of these developments came out by the hundreds month after month by research labs like PARC:

    PARC (Palo Alto Research Center Incorporated), formerly Xerox PARC, is a research and development company in Palo Alto, California,[1][2][3] with a distinguished reputation for its contributions to information technology and hardware systems.[citation needed]

    Founded in 1970 as a division of Xerox Corporation, PARC has been in large part responsible for such developments as laser printingEthernet, the modern personal computergraphical user interface (GUI) and desktop paradigmobject-oriented programmingubiquitous computingamorphous silicon (a-Si) applications, and advancing very-large-scale integration (VLSI) for semiconductors.

    This all shortly after the Roswell incident.  Looking at all this from a technology standpoint is not so sensational.  The fact that the Roswell crash was in fact a UFO possibly operated by a ‘robot’ or ‘drone’ from another planet or another timeline is not so far fetched.  If the reader could be transported back to the middle ages of Europe equipped with a laser pointer, iPhone 7, automatic handgun, and other wizard’s tools, certainly the people would think that the user is a “God” who practices “Magic”.

    The interesting twist in this book is how JFK wanted to unmask all this, use it for the good of the world (in partnership with Russia) and how the group who operates above the US Government, in this case MJ-12, ordered the hit via a secretive assassination directive:

    An Mj-12 directive to kill JFK

    The most dramatic directive, likely drafted by Dulles (MJ-1), Director of CIA under JFK and apparently approved by six other MJ-12 members was a cryptic assassination directive. In full, this states: see last memo in series in link below.

    http://www.majesticdocuments.com/pdf/burnedmemo-s1-pgs3-9.pdf  

    Draft – Directive Regarding Project Environment – When conditions become non-conducive for growth in our environment and Washington cannot be influenced any further, the weather is lacking any precipitation … it should be wet.

    The term “it should be wet” is a coded command to kill someone.  

    Detractors of this book will say that the author is reaching to connect the dots, and this cryptic message is not ‘clearly’ the smoking gun evidence that everyone is looking for.  But is it?  Have a deeper look through these documents here: 

    6404101-JFK-MJ12

    To the less educated researcher, documents such as the letter from respected scientists Oppenheimer and Einstein regarding the UFO issue, and the letter from the anonymous CIA leaker re: James Angleton; may be of more significance, as the authenticity of these documents is more verifiable, and anecdotally more believable.  Einstein for example published thousands of public essays and letters on various important topics of the day; this was a time when the power Elite relied on high IQ scientists.

    There is no alternative paper trail, with a more powerful suggestion – solving the JFK murder.  Most of the files have been released in a searchable archive, which you can find here:  https://www.archives.gov/research/jfk

    It is not likely that in the next 20 years another ‘smoking gun’ document will be discovered, although it’s possible (it could be in some relatives attic, next to baseball cards and grandpas pipe saved from last century).  So it’s reasonable to conclude that 95% of relevant information regarding the JFK scenario is out there, somewhere – in the ether.  With the speed and velocity of the internet sleuth community, if there was such a relevant document such as photo (right) – it would have been distributed and redistributed, analyzed and discussed, ad nauseum.

    What is the significance of this event, you ask?  It’s a singularity, as they describe in physics (a point at which a function takes an infinite value, especially in space-time when matter is infinitely dense, as at the center of a black hole).  From one perspective, it was simply a power grab by ‘faction 2’ from ‘faction 1’ as some describe big power politics.  The Kennedy clan were outsiders, they were social climbers, they went against the power structure of the haves – case closed.  But Kennedy or someone else – something more meaningful happened here.  A group called the “Shadow Government” stopped Kennedy from exercising the powers granted to him by the Constitution and by the voters.  It puts the entire system into question, proving basically that the United States operates by Mob Rule not so much different than a banana republic.  A group of rich families and companies with deep pockets control the country through their trained surrogates.  The continuation of this can be seen with political families such as Bush and Clinton who have a statistically unusual amount of deaths of associates, friends, and workers surrounding them.  Some were even afraid to work for the Clinton camp due to the high number of workers who ‘suicided’, disappeared, had heart failure, or stabbed themselves in the back 10 times.

    Let’s thread through the irony of the power structure for the last 30 years with this interesting photo, and comparison, of a figure outside the Texas School Book Depository:

    The photo on right, comparing the posture of a figure standing in a suit and tie is striking.  George H.W. Bush Sr. later went on to be the director of the CIA, only for 2 years, under Gerald Ford.  But Bush’s impact on the establishment would be large, as he would later be Reagan’s Vice President (and rumored that was more of a ‘President’ during this time than Reagan ever was) and eventually President of the United States, and father of a future president, George W. Bush (his son).

    What kind of ‘organization’ is out of the public view, has the means to organize such an assassination, and the motive?  All points to one organization, really the only capable organization of organizing such a project.  Look at some evidence, such as this list compiled by Wikispooks, of attempted or successful assassination attempts on foreign leaders organized by the CIA since World War 2: https://wikispooks.com/wiki/US/Foreign_Assassinations_since_1945 And here’s “Alleged Assassination Plots Involving Foreign Leaders” as compiled by the US Senate in 1975: CIA_Alleged Assassination Plots Involving Foreign Leaders

    With such overwhelming evidence of the CIA’s involvement in foreign assassinations, if only one of these ‘plots’ is true it’s reasonable to assume they all are true because after all, the CIA is a spy agency, not an overt military operation, so most of this is done with the clandestine service.  And, if the CIA really does have a ‘hit squad’ trained to topple and kill foreign dictators, then it is reasonable to assume this same operative group inside the CIA could potentially use this same group domestically.  In fact, it is the only group in the world capable of assassinating a US President so successfully, including the use of insiders to change the course of the motorcade, for example.

    Or to use another analogy as a means of deductive logic, 95% of hackers are inside jobs – in other words, hackers very rarely breach security from the ‘outside’ – they rely on a rogue employee, security expert, or insider to provide key information such as passwords or other details needed to complete the job.  This must have been the case with the murder of JFK because without those on the inside, such an epic target would not have been possible to hit.  It was for this reason the ‘higher ups’ at the FBI wanted this case closed and not discussed, because there clearly were insiders working against JFK who provided key info and modifying security protocols leading to the assassination.

    As referenced by NY Times, the peak of outrage against the CIA for such plots was in the mid 1970s:

    The peak of outrage against government-sponsored assassination was the mid-1970s, when the Senate Select Committee to Study Governmental Operations — better known as the Church committee — spent more than 60 days questioning 75 witnesses about C.I.A. plots of the late 1950s and early 1960s. Back in the darkest days of the cold war, the agency had devoted significant resources and creativity to devising unhappy ends for unsavory or inconvenient foreign leaders. Among those listed for assassination were Patrice Lumumba of the Congo, Ngo Dinh Diem of South Vietnam, Rafael Trujillo of the Dominican Republic and, most famously, Fidel Castro of Cuba, who survived no fewer than eight C.I.A. assassination plots. The senators on the committee were intent on divining the full extent of the government’s role in these plots. How much direct authority, for example, did Presidents Dwight Eisenhower and John Kennedy exert over them? The committee’s conclusions were vague at best. The truth was that neither president would have allowed his hand to show in such affairs.  Times have changed. Our president now interrupts regularly scheduled broadcasting to announce the news of an assassination himself.

    Perhaps the details of the JFK murder, public coverage, and FBI investigation would have been different had it happened in 2010.  Certainly it was a different time, before the internet, and at a time of much happiness and prosperity.  Since “JFK” we’ve had “911” which is another game changer event that put the US on a different path as it was during the 90s.  Perhaps every generation needs such an event to ‘remind’ them of who is in charge?  (Dr. Tony Blanton from Pine Crest Prep School is ringing in my ears ‘history is a struggle between the haves and the have nots and you are the movers and the shakers who are going to change society’)

    What secrets are the ‘shadow government’ protecting or are they simply exercising their power to show the have nots that their ownership of the planet is above any government, any nation state, religion, or other entity?  The UFO issue is concerning, particularly due to security concerns; because the information we do know is only bits and pieces from whistle-blowers and a few encounters that are not well documented.  There are rumors that Eisenhower himself made a deal with the Aliens to keep them a secret in exchange for technology transfer through the military and corporate America.  Maybe it was a good deal, maybe it never happened – who knows?  The point is that, until real discovery and disclosure is achieved, we will be in the dark regarding important issues that can impact daily life on planet earth.  Some important questions we need to ask beyond the shock value of understanding we are not alone in the universe:

    • Who are these aliens, what do they want?  What has been ‘agreed’ with them, if anything, and what current involvement do they have with US Military operations?
    • What of the stories that some of these creatures are multi-dimensional, or from another ‘timeline’ (that they aren’t aliens from other planets but beings that live in many dimensions)?
    • How can we address issues of exo-politics if the CIA was dethroned as the sole security to Area 51 and ultimately, controlling the diplomacy between such aliens, if any?
    • Is there any truth to the stories they are abducting humans for purposes of experimentation, whether it be biological or genetic?  What about the ‘hybrid’ projects?  If there is truth to it, how to stop it?
    • Do aliens have any current business arrangements with US corporations, US politicians, or are involved in major conflicts in any way?  If so, this urgently needs to be addressed, and contracts re-evaluated.  For example there are many accounts that UFOs were seen when nuclear warheads went dead (if even for a test).
    • Are there any secret government ‘libraries’ or ‘archives’ where files about aliens are kept, if so – where are they and in what format?

    What’s interesting about this issue that it seems to be a wealth of information right here under our own desert.  It’s like the metaphor about exploring space when we know less about our deep oceans.  There again, rumors of alien bases under the deep seas.  The amount of information regarding the veracity of such stories is immense, and it has gone parabolic in the last years as many who were alive and working during these times before modern security protocols and training were in place, are retired, dying, or have passed information onto children.

    Part 3: The New Evidence

    1963 was a long time ago.  New facts and evidence have surfaced, most interestingly – we are on the precipice of a major data dump by the US Government still to be determined, scheduled for ‘sometime’ in 2o17.  See explanation from http://2017jfk.org :

    In 1992, the President John F. Kennedy Assassination Records Collection Act mandated that in 2017 all remaining JFK records and redactions be released. However, the National Archives has recently informed federal agencies that if they intend on maintaining secrecy over these records they should begin preparing appeals to the next president of the United States. We are working to ensure that the law is upheld.  We are calling on you, fellow Americans, to come together and ensure that our government upholds the law.

    The parallel of the information secrecy both for the JFK murder and the UFO issue, and their purported interconnection, is interesting.  If state secrets or a modern political organization were not at stake, why the hold up to release information about JFK?  Everyone mostly already believes it was the CIA, a group we have shown capable of organizing assassinations of many foreign leaders, and recently (2016) was caught meddling in a US domestic election.  The UFO issue can be the motive to cover up the JFK murder for so long, so deeply.  And the less obvious, more subtle ‘can of worms’ argument, that if the US Government lied and hid the facts about JFK, of course – everything else including the 9/11 investigation would be open for re-investigation.  This is another reason for waiting for so long because there’d be no one to ‘blame’ as those who orchestrated the conspiracy / cover-up would all be dead by now (or so the thinking of this strategy goes).

    One interesting tape was in fact found in ‘Grandpa’s Attic’ – claimed to be the most significant piece of evidence since 1963:

    A recording of radio communications to and from Air Force One on November 22,1963, discovered in 2011, is among the most important new pieces of JFK evidence to emerge in recent years,

    The tape, an edited excerpt from a longer recording, captures some of the communications of the leaders of U.S. national security agencies as they learned about the assassination of a sitting president.

    I wrote about the importance of the Air Force One tape in the fall of 2013:

    “Audio engineer on the trail of a long-lost JFK tape” (JFK Facts, Nov. 6, 2013)

    “Enhanced Air Force One tape captures top general’s response to JFK’s murder”  (JFK Facts, Oct. 19, 2013)

    You can listen to it here.

    Where was the Air Force One tape found?

    This old-fashioned reel of analog tape surfaced at Philadelphia auction house in 2011. The recording was found in the estate of the family of Gen. Chester Clifton, a military aide to JFK. Clifton died in 1991. His children put the estate up for auction.

    Bill Kelly, a JFK researcher, enlisted Primeau Forensics, a Michigan audio engineering firm, to produce a cleaned-up version of the tape.

    What is significant in this piece of information, as far as data analysis is concerned, is the source.  It was an unclassified transcript of a non-essential to the JFK operation (Project Environment).  It only ‘suggests’ through information via what was said and not said, and as such, is not a ‘smoking gun’.  But much like the UFO phenomenon, in a similar thread – it seems that it’s simply IMPOSSIBLE to keep such a high profile operation secret for so long.  The analogy to the UFO issue is Dr. Steven Greer’s “Disclosure Project” available at www.disclosureproject.org; in summary:

    Beginning in 1993, I started an effort that was designed to identify firsthand military and government witnesses to UFO events and projects, as well as other evidence to be used in a public disclosure. From 1993, we spent considerable time and resources briefing the Clinton Administration, including CIA Director James Woolsey, senior military officials at the Pentagon, and select members of Congress, among others. In April of 1997, more than a dozen such government and military witnesses were assembled in Washington DC for briefings with Congressmen, Pentagon officials and others. There, we specifically requested open Congressional Hearings on the subject. None were forthcoming.

    These materials are, as you can now discern, only the tip of the iceberg of what we have recorded on digital videotape. That is, from over 120 hours of testimony by over 100 witnesses we transcribed only 33 hours and then further edited materials down to a fraction of that amount. Moreover, the full archive represents the testimony of only 100 witnesses of the more than 400 identified to date. The edited testimony will be appearing in book form. A portion of it appears in The Disclosure Project Briefing Document and only small excerpts and summary bios of testimony appear in this Executive summary. We hope in the future to secure funding for a 5-6 part broadcast quality video documentary series to be made from the videotaped testimony we have as the impact of hearing and seeing these witnesses speak is very moving.

    This then brings me to my last point: The witnesses who have given testimony to date are extraordinarily brave men and women – heroes in my eyes – who have taken great personal risks in coming forward. Some have been threatened and intimidated. All are risking the ever-present ridicule that attends this subject. Not a single one of them has been paid for his or her testimony: It has been given freely and without reservation for the good of humanity. I wish to personally thank them here and extend to them my personal, highest respect and gratitude.

    This summary is focusing on the testimony of important first-hand witnesses. We have thousands of government documents, hundreds of photographs, trace landing cases and more, but it is impossible to include them in a summary of this length. These materials will be made available for any serious scientific or Congressional inquiry.

    These 2 issues are interrelated on so many levels, it’s only fitting that both have strong nonclassified, civilian groups dedicated to identifying, collecting, archiving, sorting, and classification of all relevant information on the topics.  They are after all, significant issues, with implications on all sciences.  These 2 topics may even be more important than recent scientific discoveries.  For example, as hundreds of high level government witnesses have testified in the disclosure project, one of the technologies kept under lock and key by the CIA (as reverse engineered from ET) are several energy technologies including but not limited to ‘zero point’ energy which would literally, instantly end our dependence on oil, coal, and nuclear.  This is just the tip of the iceberg, as hundreds of ground breaking tech has been leaked from ET such as thorium ‘clean’ nuclear technology, Kevlar, nanotechnology, advanced long distance energy communication, the ability to manipulate space time (or at least, to pass through a ‘wrinkle’ in time), and hundreds of others.  The business element of this provides a solid motive alone, without religious, social, or political implications.  There would be no need for 90% of the Fortune 500, the stock market would crash and the entire economic system as we know it would be immediately restructured (who would pay for gas when free energy is available?).

    The public stated reason, for locking away the JFK files for 75 years, which plausibly is also the reason of keeping UFO information secret; is that the public ‘cannot handle the truth’ – that it would be ‘too much to handle’ – the first implication being some embarrasing political facts, such as the fact that the CIA with the help of insiders like LBJ were critical to the murder or completely organized it themselves.  But that’s not hard to swallow, generations of hardened Americans watching real-time cameras on missiles bombing and maiming brown people (mostly) have become desensitized to such emotional dribble.  But the elephant was in the room all along – this ‘shocking’ fact really is shocking, because it would change every aspect of life on our planet – quite literally (not figuratively).  For example, having free energy would change manufacturing, transportation, computing – just about everything.  It would change war, it would have implications into governance, we can skip religious implications and take the lead from the Catholic Church who is ahead of the information curve on this issue (for obvious reasons).

    So there we have it, the JFK murder has been solved.  

    WHO – It was a sub-set of the Intelligence aparatus, MJ12/CIA under the direction of Allen Dulles operated by Jesus James Angleton, involving multiple CIA agents including but not limited to George H.W. Bush Sr.

    WHAT – The murder of John Fitzgerald Kennedy (JFK) US President, Elite leader, representative of the powerful Kennedy clan, Irish Catholic, father, patriot, and civil servant

    WHERE & WHEN – Dallas, Texas November 22, 1963

    HOW – A fine tuned machine prepared the ultimate kill scene, which involved extensive research and planning, significant funding, resources, highly skilled and trained soldiers, and a ‘cover-up’ scenario which had to involve LBJ and others around JFK.

    WHY – To maintain the big Illuminati secret – that the US Government has obtained technology from other worlds, given to us directly and reverse engineered, and this transfer of tech continues to this day – and that the revelation of what happened to JFK regarding the UFO issue would start a chain of events that would finally lead to the complete disclosure of this technology, and thus – change the entire global political and economic system forever.

    Research Links

    BOOKS – Kennedy’s Last Stand: Eisenhower, UFOs, MJ-12 & JFK’s Assassination

    An interesting leaked email from Edgar Mitchell to John Podesta

    The New Starting Point – Another look at JFK with new research

    Mark the Date – List of classified documents to be released regarding JFK

    7 Key Facts we’ll learn with release of JFK files

    Was JFK shot for his interest in UFOs?

    Short list of investigative groups, information sources, and other JFK related material sources:

    http://jfkfacts.org

    http://aarclibrary.org

    http://maryferrell.org

    http://jfklancer.com 

  • Doug Casey On The Coming Holy War

    Via CaseyResearch.com,

    Today, we have another brand-new Conversations with Casey to share with you. In the interview below, Doug Casey and I discuss holy wars in Europe.

     

    I’m not talking about the Crusades, either. I’m talking about a modern-day holy war.

     

    Some folks will think I’m crazy for even entertaining this idea. But a few weeks ago, Turkey’s foreign minister said that “wars of religion” are coming to Europe.

     

    That’s a major warning. You have to take it seriously.

     

    So, I recently sat down with Doug to discuss this matter. I hope you enjoy this conversation as much as I did.

    Justin:  Doug, Turkey’s foreign minister recently said that “wars of religion” are coming to Europe. Do you think this could actually happen?

    Doug: Well, human nature hasn’t changed in many thousands of years. And religion is important to the human animal. Perhaps it’s always been something that people were prone to fight about, but the historical record shows that religious wars only started with the invention of Judaism, Christianity and Islam. Of course, these religions—which have always been at war with each other, and all other religions—are similar in that they believe in one god. Pagan religions were and are accepting of other people’s gods and beliefs.

    The question is, which god is the right one? Should you believe in Yahweh, or Jesus, or Allah? Because it appears to me that they’re all very different, based upon what they say and what they have their followers believe. Islam and Christianity have been duking it out since the 7th century, and that’s unlikely to change. They both claim to have the one and only true god, but they’re very different gods—not at all the same one. So it’s an irreconcilable difference.

    Justin: So, the ingredients for a holy war have always been there?

    Doug: Yes. Up to about 100 years ago, Christians felt a moral obligation to convert everyone, including other misguided Christians. Now it’s mostly just the Muslims who feel that way. It’s entirely possible, even likely, we’re going to have an outright war of religion. Although, in the highly Politically Correct West, it will have to be called something else.

    The ongoing invasion of Europe by Muslims is one aspect of it—although that’s not so much a religious thing per se. That’s partly because the Muslims are migrating mostly for economic reasons. And because religion is a dead duck in Europe today. Europe is a post-Christian society. Very few people go to church or take Christianity seriously in Europe, it’s a very secular society. Which is a bit of a problem, because they’ve taken the State for their new god.

    But the State doesn’t promise anybody an afterlife. So, in my opinion, Europeans are actually ripe for conversion to Islam. It’s a serious problem, because Islam is incompatible with, and antithetical to Western Civilization.

    Justin: Why should the average American care about this? 

    Doug: It’s part of the gradual destruction of Western culture. Lots of termites—including socialism, cultural Marxism, gender warfare—have been eating away at the foundations of Western Civilization for decades. Islam, in itself, isn’t a real threat. The Koran, which PC types love to treat with respect, is just poorly written medieval sci-fi. It’s living proof that humans are capable of believing absolutely anything.

    That said, Islam is a threat to the West because tens of millions of migrants are being invited to come and live at the expense of the current residents. Europe will collapse from within, as did Rome. The average European believes in nothing—except that his civilization not only isn’t worthy, but is actually evil. No wonder the migrants treat them with contempt.

    The Mohammedans—although I’ll note it’s now very un-PC to call them that—are technologically and economically backward. As long as they put the Koran at the center of their lives—and they have to, because it is the direct, incontrovertible word of Allah—they’ll remain backward. If, through an accident of geology, there wasn’t a lot of low cost oil in places they live, the West would have no reason to care what they think, say, or do. They’d be no more than an interesting tourist attraction.

    The good news is that, over the next 100 years, most Muslims will fall away from their primitive beliefs. But that’s another story… And a lot is going to happen in the meantime.

  • US Sends Aircraft Carrier Toward North Korea "In Response to Recent Provocations"

    One day after NBC reported that the National Security Council had presented Trump with three options vis-a-vis North Korea, namely i) put American nukes in South Korea , ii) kill Kim Jong-un or iii) use the CIA to infiltrate North Korea to sabotage or take out key infrastructure, a US carrier group has departed Singapore and is headed for North Korea.

    According to Reuters, a U.S. Navy strike group will be moving toward the western Pacific Ocean near the Korean peninsula, a U.S. official told Reuters on Saturday, as concerns grow about North Korea’s advancing weapons program.  The strike group, called Carl Vinson, includes an aircraft carrier and will make its way from Singapore toward the Korean peninsula.

    The move of the USS Carl Vinson “is in response to recent North Korean provocations”, an official told CNN. “We feel the increased presence is necessary,” the official said, citing North Korea’s worrisome behavior.”

    Harry Harris, the commander of U.S. Pacific Command, directed the USS Carl Vinson strike group to sail north to the Western Pacific after departing Singapore on Saturday, Pacific Command announced.

    The Vinson strike group will operate in the Western Pacific rather than executing previously planned port visits to Australia, Pacific Command said. The group will remain under the operational control of the Third Fleet.

    This year North Korean officials, including leader Kim Jong Un, have repeatedly indicated an intercontinental ballistic missile test or something similar could be coming, possibly as soon as April 15, the 105th birthday of North Korea’s founding president and celebrated annually as “the Day of the Sun.”

    At the end of March, satellite images collected by 38 North suggested that North Korea was actively preparing for a nuclear test.

    Late last week, President Trump and Chinese President Xi Jinping met in Florida, where Trump pressed his counterpart to do more to curb North Korea’s nuclear program. Trump’s national security aides have completed a review of U.S. options to try to curb North Korea’s nuclear and missile programs. These include economic and military measures but lean more toward sanctions and increased pressure on Beijing to rein in its reclusive neighbor

    Last weekend, Trump told the FT in an interview, that “if China is not going to solve North Korea, we will.”

    Although the option of pre-emptive military strikes on North Korea is not off the table, the review prioritizes less-risky steps and de-emphasizes direct military action. Then again, nobody thought that Trump would launch a cruise missile strike against Syria less than a week after Rex Tillerson said Assad’s fate lies with his people and not some foreign aggressor.

    In other words, as we predicted yesterday, “with Syria down, it’s now North Korea’s turn.” Considering recent developments, Kim Jong-Un would be well advised to keep a lower profile for the next few weeks.

    Finally, for a real-time breakdown of where US Carrier and amphibious ready groups can be found at this moment, here is a handy map courtesy of Stratfor.

  • 'Out Of This World' – NASA's Budget Is Without Parallel

    The budget afforded NASA is far and away the largest on earth…

    Infographic: NASA's Budget is Without Parallel | Statista

    You will find more statistics at Statista

    With 19 billion dollars to play with each year, Statista’s Martin Armstrong notes the U.S. space agency can outspend the ESA, Rocosmos, CNSA, ISRO, and JAXA combined. It is important to note however, that the figure for CNSA is an estimate due to the lack of comprehensive information from the Chinese government.

  • Is This The Beginning Of The End For U.S. Empire?

    Authored by Mike Krieger via Liberty Blitzkrieg blog,

    Those whom the gods wish to destroy they first make mad.

    Before I get into the meat of this post, I want to revisit something I wrote back in January.

    From the post, Very Powerful People in the U.S. Government Want War – This is Their Sales Pitch:

    We need to understand that those who want this war will be absolutely relentless. The sales pitch will not end until they get exactly what they want. This is where all of us critical thinkers need to play a key role. We must be prepared to diligently analyze all unsubstantiated official claims, and push back against the war-mongers, because we know for certain the oligarch-owned corporate media won’t. We must be prepared to inform our fellow citizens about what’s happening so that we don’t fall victim to a cheap sales pitch with devastating consequences. Unfortunately, we must also be prepared for a possible deep state false flag if the current sales tactic falls on deaf ears.

     

    America cannot win a global war of such a scale if it is based on false pretenses and in the absence of exceedingly strong public support. This support does not exist. Will this serve as a necessary restraint against the masters of war and their devious plans? It’s too early to tell, but I do know that if we are unnecessarily pushed into a global conflagration, it will not end well for us. If this is the road our twisted status quo insists on taking us down, let us never forget who they are and the self-serving motivations behind their actions.

    Four months later, the deep state got exactly what it wanted. Trump’s weaknesses have been identified and exploited, and he’s successfully been manipulated into neocon foreign policy like George W. Bush and Barack Obama before him. I’ve spent much of the past several months warning about exactly what happened last night, but the die is now cast. There’s no turning back from the path we’re on.

    And don’t give me this garbage about Trump playing “4D chess.” Trump’s a brilliant salesman, and that’s about it. There’s nothing special or superior about Donald Trump intellectually, and he’s one of the most unwise people to ever become President. There was a hope he meant what he said about non-interventionism during the campaign, but that hope should be entirely extinguished at this point. Trump is a very weak man desperately looking for praise from those he claims to hate.

    The purpose of today’s post is not to discuss what happened last night. All of you have read the news by now. My intent today is to explain what I think this means for the years ahead. I believe last night’s strike represents the beginning of the end for U.S. empire. Although the U.S. has been declining domestically for this entire century, America has still been calling all the shots on the international front. This makes sense in late-stage empire, as the focus of the fat and happy “elite” becomes singularly obsessed with domination and power, while the situation back home festers and rots.

    Trump won on an “America first” platform that promised to emphasize the well-being of American citizens over geopolitical adventurism. We now know for certain he’s been manipulated into the imperial mindset, and his recklessness will merely accelerate U.S. decline on the world stage, and in turn, back home.

    If anyone’s playing 4D chess it’s Russia. Russia is anti-fragile at this point, as has been proved by Putin’s survival in the face of economic sanctions, a collapsing ruble and a plunge in oil prices. Putin is still standing and arguably as powerful as ever. Not to mention the fact that the USSR completely disintegrated and collapsed within the past 30 years. They’ve been through a lot as a people. Meanwhile, the U.S. is extraordinarily fragile and weak by comparison, a distinction that will become quite obvious to us all in the years ahead. I don’t say this with any hint of glee or schadenfreude, I’m just stating the facts as I see them.

    None of this implies that Russia’s leadership are a bunch of good people by any means. What I am saying is that they are a thousand times more strategic and intelligent compared to U.S. leadership.

    To prove the point, this would be a good time to review a post I published back in 2014, Tensions Between the U.S. and Russia Are Worse Than You Realize – Remarks by Foreign Minister Sergey Lavrov. Here’s some of what I noted:

    There are two reasons I think the following remarks by Russian Foreign Minister Sergey Lavrov are so important.

     

    First, as someone who spends much of his time analyzing and critiquing the many destructive policy decisions made by American “leaders,” I was shocked to find how accurate his description of the U.S. power structure’s mindset seems to be. He gets it, and he is more or less trying to warn the world that America’s leaders are basically power-drunk children. I concur.

     

    Second, Lavrov also describes the negative impact that this behavior has had on the Russian psyche generally. He expresses dismay that the U.S. status quo sees the world as unipolar, and attempts to tackle every problem from the perspective that might is right. In no uncertain terms, Lavrov makes it clear that Russia will not stand for this. I don’t think the Russians are bluffing, so this is a very dangerous situation.

     

    If there was actually someone in the U.S. State Department capable of such introspective and clear thinking, we might actually defuse this situation. Don’t hold your breath.

    You should really read the entire post to see Lavrov’s comments for yourself in order to truly understand why I came to the above conclusions.

    U.S. leadership is an absolute joke and will drive this entire country into a brick wall in the years ahead. John McCain, Lindsey Graham, Chucky Schumer and Nancy Pelosi, are you kidding me? They remind me of George Armstrong Custer, and we all know how that turned out.

    The media is even worse. In what Glenn Greenwald accurately called “one of the sickest things ever to appear on US television,” MSNBC’s Brian Williams gushed about the “beauty” of U.S. cruise missiles.

    //platform.twitter.com/widgets.js

    Here’s another sign of imperial collapse, Trump’s son-in-law, Jared Kushner, in a war zone calling the shots.

    //platform.twitter.com/widgets.js

    This is not the sort of thing you see in a confident, brave, and civilized nation, it’s the sort of stuff you’d expect to see toward the end. It’s the stuff of craven war-mongers, of dishonest cowards, of a totally deranged and very dangerous media. The signs are everywhere; imperial decline is set to accelerate rapidly in the coming years.

    Fine, but how is all this going to play out? Obviously nobody really knows, but I do think we’ve entered a new period in American history. I think it’s basically a crossing of the Rubicon moment for the American empire. Personally, I don’t expect a strong and visible military response from Russia in the near-term. I don’t think Putin wants to give the U.S. media and newly minted neocon Donald Trump an excuse to do anything truly crazy, which they can blame on Russia in the court of public opinion. I think Putin is too smart for that. Rather, what I think he’ll do is make all sorts of moves behind the scenes to weaken America’s economic power, while at the same time engaging in minor provocations to tempt the imbeciles in charge of U.S. foreign policy to make further mistakes abroad, to which they’ll emphatically oblige.

    In other words, Russia will attempt to make the U.S. extend itself further in a region where no real success is possible, at the same time that the American economy deteriorates further. Recall that the current very weak economic “recovery” has been going on for nearly a decade. This cycle is very long in the tooth, and all Russia really needs to do is sit back, make some moves behind the scenes and allow the U.S. to collapse upon itself in its hubris and stupidity. This is precisely what I think is going to happen.

    Finally, let’s not forget the following.

    //platform.twitter.com/widgets.js

    Expect more of all the above as the U.S. empire enters its most devastating phase of collapse. Think about what it might mean for you and your family and prepare accordingly.

     

  • Has Middle Class America Been Fleeced?

    Authored by Hunter Lewis via The Mises Institute,

    Noah Smith, writing in Bloomberg, says that middle class America has indeed been fleeced by our national economic policies. We agree. But which policies have been responsible?

    Smith mentions and immediately dismisses trade, immigration, economic regulation, and welfare policies.

    The real villain in his view is an alleged turn toward managing the economy on free market lines: “Your prosperity was taken by the very people who promised to ensure and enhance it. The decades from 1980 through 2008 were the age of neoliberalism — the ideology of the free market.”

    This is a story that we hear more and more. Neoliberals, the favorite new epithet on the left for free market exponents, have ruled the roost for decades ( note how the Obama administration is simply ignored in the preceding quote), and have left the poor and middle class far worse off than they were.

    The truth is that the Bush-Clinton-Bush-Obama era had much in common, and it was not free market principles. It was an era of unrestrained crony capitalism, in which special interests formed stronger and stronger alliances with government in order to secure economic monopolies and other privileges.

    It was also, not coincidentally, an era of repeated boom and bust, as the Federal Reserve and other central banks created immense amounts of new money to keep the crony capitalist game going. The Fed did not create all the new money to help the poor and the middle class. They did it primarily to support the government debt machine, which they worried was on the verge of collapse in 2008. The result is that government debt has now doubled in the few years since then.

    Can Noah Smith, an intelligent writer and economics professor, really believe that free market principles prevailed in recent decades? The only possible excuse for this is that crony capitalists tend to hide their actions behind free market slogans. This is genuinely confusing.

    Today, for example, we are told by most commentators that we have a choice between “free trade” and “protectionism,” and the free trade position is represented by people like Hillary Clinton and Hank Paulson, the Bush Treasury Secretary during the last Crash who rescued his old firm, Goldman Sachs, and coincidentally the value of his shares in that firm, and who more recently supported Hillary for president. To describe these people as supporters of “ free trade” is a joke. They are supporters of “ crony trade” in which so-called free trade agreements are actually written by special interests in order to escape the pressures of a genuinely free market.

    And does Smith really believe that giving government even more control over the economy will achieve anything other than making crony capitalism worse?

    Oh well, at least Smith did not equate what he called “neoliberalism” with fascism, as many on the left are now doing in books and articles. That makes a lot of sense, does it not? Proponents of more liberty in economics and other areas of our lives are somehow like Hitler or Mussolini?

    Lewis nails the dismal science but we leave it to econfinjunkie's comments to sum up the farce…

    If anyone needed one more reason to hold Noah Smith and mainstream economics in contempt, read that article.

     

    It is so much easier for those in the mainstream to be ignorant and publish crap like that than for, say, an Austrian economist to do the same. How can anyone with an advanced degree in economics say that our society is based on free market principles? It makes you wonder what they teach after high school.

     

    Starting in intro classes all the way to PhD coursework, didn't anyone ever think to point out to the future Dr. Smith and his classmates that "oh, by the way, all these principles of free markets we're talking about, they're the ideal; they don't apply to our own economy since we don't have a free market/society, because we have a central bank, minimum wages, millions of pages of regulations, bank bailouts, and on and on"?

     

    There can be a conversation about whether all these things are justified, but to say that our economy reflects a free market is to put your ignorance on full display for all to see.

  • Visualizing The Netflix Generation

    Since launching in the United States in 1948, cable television quickly emerged as the media consumption method of choice for families around the world.

    Cable brought to us some of the most memorable and noteworthy events in history. People saw the fall of the Berlin Wall from their living rooms in 1989 – and many even remember being inspired by Neil Armstrong taking his first steps on the moon twenty years earlier.

    And although television is still a vital medium today, Visual Capitalist's Jeff Desjardins warns that it is also stuck in an inevitable quagmire. Digital already generates more ad revenue than television, while more people switch to streaming platforms every day.

    Make no mistake – even though there is still plenty of money to be made in television, cable is experiencing a slow death, just like other traditional media channels. It might not yet be reduced to the more niche territory of radio or print, but cable is treading the same path.

    THE DIGITAL NATIVES

    Why this is the case is very simple math.

    Even just six years ago in 2011, the average 18-24 year old millennial consumed about 25 hours of traditional television per week – today, they consume closer to 14 hours.

    That said, it’s no surprise that the first generation of digital natives skews heavily towards digital content, but what will be even more interesting is the behavior of the next generation on deck: Gen Z (born in 2000 and onwards). This cohort was born into a world of screens and iPhones, and will not be aware of a prior era. To them, flipping through channels on cable television seems even more antiquated and arbitrary than it does to older generations.

    Gen Z watches between two and four hours of YouTube and less than an hour of traditional television per day. They’re also twice more likely to use YouTube than Millennials, and a lot less likely to use Facebook.

     

    – Shireen Jiwan, chief brand experience officer at Lucky Brand

    Less than an hour per day is not very conducive to the cable business, especially when there are hundreds of channels in existence today. And while insights on Gen Z are still fluid and evolving, it’s highly doubtful that the generation will do a 360 on video anytime soon.

    In the meantime, cable’s survival as a dominant medium rests squarely on the shoulders of older generations. While it works as a business for now, cable can’t fight the demographics forever.

    Courtesy of: Visual Capitalist

Digest powered by RSS Digest

Today’s News 8th April 2017

  • "Terrorism Is Really Not That Big A Deal" Harvard Students See Trump Worse Than ISIS

    What is more dangerous: President Donald Trump’s rhetoric or ISIS?

    Campus Reform’s Cabot Phillips received some curious answers to that question from the hallowed halls of Harvard University, clarifying perspective on student’s mass dissonance in America…  

    “I think he’s an asshole-in-chief… Terrorism is really not that big of a deal… ISIS is not a threat to everyday life; Trump’s rhetoric and “empowering” people with hateful views is more of a threat.

  • 'Killfie' Nation – India Dominates World's Selfie-Related Deaths

    The trend of taking death-defying 'killfies' is taking its toll in a Darwinian sense… on India!

    The rise of smartphones and social media has paved the way for selfies to become a popular pastime for young people around the world, but as Statista's Felix Richter notes, sometimes people hunting for the perfect self-portrait get carried away though and put themselves and sometimes others in harm’s way. Tragic as it is, researchers from the United States and India have found that taking selfies in dangerous situations cost at least 127 lives since March 2014.

    The researchers scoured the web for news articles reporting selfie-related deaths in an effort to raise awareness and help prevent further injuries or deaths as a consequence of reckless selfie-taking. Ridiculous as it may sound, there are many ways to harm yourself while taking a selfie. The cases found by the researchers include several people falling from great heights, drowning or accidently shooting themselves while taking a selfie with a gun.

    Photographers appear to be particularly careless in India where the researchers found the most reports of selfie-related accidents by far.

    Infographic: Don't Take That Selfie Too Close to the Edge | Statista

    You will find more statistics at Statista

  • Doug Casey Explains Why College Is A Waste of Money

    Via Casey Research,

    I recently sat down again with Casey Research founder Doug Casey to discuss a troubling trend: the fast-rising cost of a college education. Read our conversation below to see why Doug says relying on – and paying for – today's educational paradigm "makes as much sense as entering a Model T Ford in the 24 Hours of Le Mans"…

    Justin: Doug, I recently had an interesting conversation with my sister.

    She told me that her financial advisor suggested she start setting aside $500 to $1,000 a month to pay for her son’s college education. That’s because a four-year college education is apparently going to cost between $400,000 and $500,000 18 years from now.

    Her advisor clearly arrived at this figure based on how fast college tuition costs have been rising, which is about 6% per year based on my research.

    But you have to wonder if the cost can keep rising at this rate. It seems to me that no one will go to college if it’s going to cost a half-million bucks.

    What do you make of this trend?

    Doug: Well, the first thing—my advice to your sister is to get a new financial advisor. I fear that she’s relying on a complete imbecile. She should fire him immediately, and for a number of reasons.

    Number one is his assumption that the trend of higher college costs is going to continue to a totally unaffordable level. In fact, the cost/benefit ratio of going to college is already so out of whack that the whole system has to change radically. A college degree, even now, is of only marginal value; most everybody has one. And things that everybody has are devalued. You’re quite correct that colleges and universities today are dead ducks as businesses. Unless you’re going to learn a trade, like doctoring or lawyering, or you’re going for science, engineering, or math, where you need the formal discipline and where you need lab courses, it’s a total misallocation, even a waste of money to go to college today.

    So I applaud the fact that all these colleges and universities are dead men walking, that they’re all going to go bankrupt. They are totally overrun and infested with cultural Marxists and progressives, militant leftists that are propagandizing kids with absolutely the wrong kind of values. It’s astonishing that parents are willing to pay even today’s prices to subject their kids to four years of indoctrination. So I’m glad that they’re all going bankrupt.

    Justin: But don’t you need a college education to get ahead in life?

    Doug: It’s not necessary to go to college. You’re likely to be corrupted, and indebt yourself like an indentured servant for many years to come. The question is: Do you want an education, or do you just want a piece of paper that says you logged the time in a classroom? These are two different things. Getting an education is strictly a matter of motivation and self-discipline, not paying money to sit in a classroom. If you’ve got half a brain, you realize that you want the knowledge, not the diploma, and there’s no necessary correlation between them. Nobody can “give” you an education; it’s something you must gain for yourself.

    Most top universities now have their courses online. You can get an education by listening to these courses. And even when you’re driving your car, you should be playing CDs by The Teaching Company. They have the best professors in the world giving command performance lectures. And you can hear them an unlimited number of times. This is much better than listening to some also-ran drone on, while you may have cut the class, or be half asleep, or not taking good notes.

    Technology has changed the whole landscape of education. Its cost is approaching zero, not the stratosphere, as your sister’s advisor seems to think. If the kids insist on going to college and indenturing themselves, as well as cluttering their minds with irrelevancies and false data, then they should only consider, say, Harvard, or very few schools like it. At least there the prestige, and qualifications for admission, are so high that the connections they make may compensate for the many downsides.

    And anyway, Ray Kurzweil’s right about the Singularity, in my opinion. And he’s upped the date to when it’s going to occur to 2029, which is only 12 years from now, at which point the whole world will have changed in ways that will change the nature of life itself. So forget about saving to send your kids to college; and that goes double for your grandkids.

    Justin: I thought the same thing, Doug.

    You see, my sister’s advisor suggested that she and her husband set up a 529 plan, which is basically a tax-friendly way to save money for college. I asked her what would happen to the money if her son didn’t go to college. She said she could use the money to pay her for grandchildren’s college education.

    But, like you said, the world is going to be very different 12 years from now. Who knows what it’s going to look like 40 or 50 years from now?

    Doug: Over the next generation the world is going to change totally and unrecognizably from the way it is right now. Technological change is compounding at an exponential rate. It’s always been exponential, quite frankly. Ever since the invention of fire. But we’re now in its later stages; it’s like a Saturn rocket taking off, very slowly at first, but constantly accelerating.

    It’s going to be fascinating and fantastic to watch what happens over the next 20 years. And relying on, and paying for, today’s educational paradigm makes as much sense as entering a Model T Ford in the 24 Hours of Le Mans.

    Justin: I agree 100%. We’re living in very exciting times.

    Anyway, thank you for taking the time to speak with me, Doug. It was a pleasure, as always.

    Doug: You’re welcome.

    *  *  *

    Every month, Doug shares his unique insights in The Casey Report, our flagship publication. If you sign up today, you’ll get complete access to all of our archived content, including recent essays by Doug on the Greater Depression, the migrant crisis, and technology. You’ll also receive specific, actionable advice to help you protect and grow your personal financial empire. You can sign up for a risk-free trial of The Casey Report right here.

     

  • Here Are The States With The Highest Property Taxes

    ATTOM Data Solutions has scoured county-level property tax records from across the country to figure out exactly who is getting punished the most on their real estate taxes.  To our complete ‘shock’, the resulting map looks eerily similar to the 2016 presidential electoral college map with the liberal bastions of the Northeast and Midwest suffering the highest property tax burdens.  Per RealtyTrac:

    Average Annual Property Tax was $3,296, an Effective Tax Rate of 1.15 Percent; Highest Effective Tax Rates in New Jersey, Illinois, Texas, New Hampshire, Vermont; Owner-Occupied Properties Register Higher Effective Tax Rates Than Investment Properties

     

    ATTOM Data Solutions, curator of the nation’s largest fused property database, today released a 2016 property tax analysis for more than 84 million U.S. single family homes, which shows that property taxes levied on single family homes in 2016 totaled $277.7 billion, an average of $3,296 per home and an effective tax rate of 1.15 percent.

     

    The report analyzed property tax data collected from county tax assessor offices nationwide at the state, metro and county level along with estimated market values of single family homes calculated using an automated valuation model (AVM). The effective tax rate was the average annual property tax expressed as a percentage of the average estimated market value of homes in each geographic area.

    PT

     

    Not surprisingly, residents of New Jersey won the award for highest property taxes of any overall state in the union while Westerchester County, the posh suburb of New York City, won for most expensive local municipality with taxes averaging over $16,000.

    PT

     

    Per the chart below, states with the highest effective property tax rates were New Jersey (2.31 percent), Illinois (2.13 percent); Texas (2.06 percent); New Hampshire (2.03 percent); and Vermont (2.02 percent).  Other states in the top 10 for highest effective property tax rates were Connecticut (2.00 percent), Pennsylvania (1.89 percent), New York (1.88 percent), Ohio (1.68 percent), and Rhode Island (1.64 percent).

     

    Meanwhile, among the 586 counties with a population of at least 100,000 and at least 10,000 single family homes, nine posted average annual property taxes of more than $10,000…and again, to our complete shock, each one of them is in a deep-blue state: Westchester, Rockland, and Nassau counties in New York; Essex, Bergen, Union and Morris counties in New Jersey; Marin County, California; and Fairfield County, Connecticut.

    Perhaps this is why our young snowflakes don’t own homes anymore…their desires to put their Ivy League anthropology degrees to good use in New York City don’t mesh well with the financial realities of implementing their socialist utopias.

  • For Sale On The Dark Web: Your Tax Refund And Social Security Number

    After death, and taxes, we can now add a third 'certainty' to life – identity theft.

    Amid the business of tax season, it's not just accountants that are toiling hard to collect their fees. As Bloomberg reports, tax season is hog heaven for cybercriminals. The thought of all that personal data just sitting around, unmolested in tax documents, inspires a torrent of creepy scammer creativity.

    The Krebs on Security blog provided a glimpse earlier this year of how our tax data is bought and sold, and what scammers charge other scammers for our data.

    Founder Brian Krebs came across something he hadn’t seen before on the Dark Web: Bulk sales of W-2 forms.

    A scammer had phished a tax preparation firm, Krebs discovered, and was offering for sale 3,600 Florida W-2s in this cyber netherworld which, while connected to the everyday web, requires special software or authorization to access.

    Bloomberg notes that the fruits of all the successful phishing attempts wind up on the Dark Web.

    These offers can look run of the mill, complete with star ratings for sellers. Here is a screenshot showing sellers and their illegal wares, such as W-2s, taken from IBM’s report:

    The Dark Web has its own selling language. “Fullz” means complete information on an individual, including, according to the IBM report, “payment card information, address and contact details, and other additional pieces of personally identifiable information, such as Social Security number, a driver’s license number, and any other information sold along with the set.”

     

    An individual’s tax data is far more valuable than their credit card data. Stolen credit card data might sell for $1 or be given away to establish credibility on the Dark Web, said Limor Kessem, executive security adviser of IBM Security. Credit card accounts can be closed or frozen, and thus have a short criminal-shelf life.

    “Tax filing information is probably the most premium type of record criminals can buy on the underground,” said Kessem, who has been tracking this world for eight years.

     

    “It goes for $40 or $50, and unlike credit cards, never expires. People can try and get loans in someone’s name, make fake IDs in people’s names, get credit.” And of course, the top target is filing a tax return in someone's name and getting the refund.

    With phishing attacks on the rise, Bloomberg suggests a consumer’s best defense is a good offense. One of the simplest, when it comes to tax refund fraud: File your taxes early to beat would-be scammers to the punch.

  • What Makes Millennials Disturbingly Different?

    Authored by Gordon Long via MATASII,

    In stealth fashion millennials are rapidly transforming society.

    Something had mysteriously changed during the 2016 US Presidential primaries when an unlikely democratic candidate burst on the national scene with an unquestionable allure for the Millennial generation. How was it that a ‘left wing’ Bernie Sanders, who was of an age that he would be considered as a very old grandfather by this young generation, could draw such rousing support? What was it about this grey haired unknown senator from Vermont who so clearly represented the expectations, aspirations and frustrations of this new ‘coming of age’ generation?

    Millennials have silently emerged as a powerful and influential force because of their size and because of how contrasting their beliefs are from versus previous generations including only slightly older Gen-X.

    Millennials have surpassed Baby Boomers as the nation’s largest living generation, according to population estimates recently released by the U.S. Census Bureau.  Millennials, defined as those ages 18-34 in 2015, now number 75.4 million, surpassing the 74.9 million Baby Boomers (ages 51-69) and Generation X (ages 35-50 in 2015) is projected to pass the Boomers in population by 2028.

    Very importantly, the Millennial generation continues to grow as young immigrants expand its ranks which presently account for over 15% of the total.

     

    What Makes Millennials Different?

    The Millennial  generation grew up during an era of unprecedented changes and shocks which have profoundly influenced their views and choices:

    1. Millennials are older in household formations  when they marry and have children compared to previous generations,
    2. Millennials have student debt loads that define and significantly frame this generations financial choices,
    3. Millennials are more educated than any previous generation as defined by percentage with undergraduate and post graduate educational attainments,
    4. There is a much more foreign born component of the millennial generation at 15%, than any generation going back to the early 1900’s European immigration wave to the US,

    1. Family is much more important as a result of changes in parenting since roles such as fatherhood have taken on more involvement, youth event participation and inward family cocooning. A 1997 Gallup survey found that 9 in 10 children (a population comprised entirely of Millennials that year) reported high levels of closeness with their parents and were personally happy with that relationship. Their tight relationship with their parents extends to work, where some companies report establishing relationships with parents of their Millennial employees. The Millennials’ close relationships with their parents might be related to the greater time they spent with their parents growing up. According to Pew (2014), hours spent parenting have increased for both fathers and mothers, tripling for fathers since 1985 and increasing by 60 percent for mothers. These increases have been particularly pronounced among college-educated parents, with college-educated mothers increasing their childcare time since the mid-1990s by over 9 hours per week, while less educated mothers increased their childcare time by only over 4 hours per week.

    1. Millennials are much more pronounced to move to Urban centers versus being interested in Suburban living,
    2. Millennial are the most technology-centric generation yet, as they came of age in  the era of the internet / smart phones and fully embraced social media to change how they communicate and socialize,
    3. Millennials also came of age during developments that deeply shaped their sense and need for security.
      • 911 and  the emerging reality of terrorism in the US,
      • Iraq and Afghanistan Wars where fellow students fought,
      • School shootings across the nation and the security changes required,
      • Corporate Downsizing, Right-Sizing and Out-Sourcing which effected their financial security of the family,
    4. The Millennial generation has a much larger sense of “entitlement” since they were often raised and educated with a sense of “you deserve” versus “you earned”,
      • Millennials believe student loans should be forgiven and is one of the reasons Bernie Sanders was so popular,
      • Millennials are much more tolerant of others and cultural differences and react strongly to hate speech, threats and racism
    5. Millennials earn 20% less than Baby Boomers did at their age.

    All of these differences are now being felt as the Millennial generation becomes an increasingly larger component of the US economy.

    Three Major Economic Ramifications:  My Macro Analytics Co-Host Charles Hugh-Smith believes these differences are being witnessed by the following three Economic ramifications:

    1.  Urban vs. Suburban Living

    The Shift:

    • Millennials favor foot-traffic urban shopping/entertainment/dining districts,
    • Millennials favor streets with high densities of venues, cafes, brew-pubs, etc. which are safe and close to mass transit,
    • These urban districts are expanding in small cities, college towns, etc.
    • The experience is as important as pricing: Millennials value convenience and a variety of experiences, not just convenience and price.
    • Long commutes and suburban shopping malls are not convenient to Millennials
    • Home ownership rates are falling due to the very high cost of urban-core housing,
    • By choice or necessity Millennials rent rather than buy,

    The Economic Ramification:

    • Future Single Residential Housing Requirements may be less and housing prices exposed as Baby Boomers leave their homes for Assisted Living or Nursing Homes.
    • Boomer wealth is largely tied up in costly homes–who will buy these houses as Boomers sell to downsize/retire?

    2.  Auto and Light Truck Sales

    The Shift:

    • Millennials favor Uber and Car-sharing over auto ownership.
    • Urban living and avoiding longer commutes reduces the need for auto ownership.

    The Economic Ramification:

    3.  Retail Shopping and Retail Commercial Real Estate

    The Shift:

    • Millennials favor the convenience of online shopping,
    • Millennials do not find value in big suburban malls
    • Millennials often work a lot of hours and don’t want to waste time commuting/driving to suburban shopping.
    • Hard to beat the easy return policy of Zappos and Amazon or the value of free delivery via Amazon prime,

    The Economic Ramification:

    • The future of the Mall is likely limited as well as many “brick & mortar” retailers.
    • America is the most highly over-stored nation in the world. Excess retailing space is a massive future problem
    • Amazon has reached critical mass and as Millennials continue to dominate, online procurement and delivery will continue to accelerate.

     

    Three Major Social Ramifications:  Though it is too certain to know for certain, indications are that there are a number of social ramifications that can be expected as a result of the advent of the Millennial Generation.

    1.  Physical and Financial Security

    The Shift:

    • Millennials place a higher value on physical and financial security as a result of the era they grew up in,

    The Social Ramification:

    • Millennials will be willing political to sacrifice personal freedoms if it is perceived that it will allow government agencies to better ensure this.
    • Security-Surveillance methodologies and technologies will become an increasing larger way of American life.
    • Millennials are likely to be “savers” in a much larger way than the last two generations.

    2.  Government Entitlements

    The Shift:

    • Millennials  overwhelmingly believe student loans are unjust and should be a government entitlement program.
    • Existing student loans should be forgiven and paid by the government.

    The Social Ramification:

    • Candidates that run on a platform of student loan forgiveness will be elected.
    • Candidates that run on platforms of Social Security and Medicare means testing will have wide Millennial support.
    • Generally, Millennials will be more ‘left leaning’ as demonstrated by Bernie Sanders.

    3.  Less Materialistic

    The Shift:

    • Millennials having grown up with most of their needs being met are less inclined to seek satisfaction from materialism and pursue wealth accumulation.
    • Millennials are more inclined to be motivated by notoriety & seek political influence. This stems from their roots in social media,
    • This is a trend that has been seen in other countries when opportunities for wealth  creation become more restrictive.

    The Social Ramification:

    • Millennials will place in jeopardy the US economy being a 70% Consumption economy

    The biggest long term ramification may be the last. The era of the US economy sustaining itself via consumption may die as the Millennials become the economy! Their motivations and expectations are completely different than any prior generation and the changes will be profound.

    Charles Hugh Smith concludes that there may be a consequence which is a even bigger question.

    He asks: “Can our financial system and debt-burdened economy enable the sort of life the Millennials seek, or have we run out of room to transition to a lower consumption lifestyle and still service the growing mountain of debt?”

    His conclusion: “It seems to me that the Millennials will have to navigate a system re-set that few of them seem to anticipate!”

    WHAT IS OFTEN DUBBED “THE SNOWFLAKE” GENERATION

  • Trump's North Korea Options: Place Nukes In South Korea Or Kill Kim Jong-Un

    With Syria down, it’s now North Korea’s turn. 

    According to NBC News, the National Security Council has presented the suddenly ragingly bellicose President Trump with several options to respond to North Korea’s nuclear program: put American nukes in South Korea or kill dictator Kim Jong-un.

    The scenarios were prepared in advance of Trump’s meeting with Chinese President Xi Jinping this week. The White House has expressed hopes the Chinese will do more to influence Pyongyang through diplomacy and enhanced sanctions, but if that fails, and North Korea continues its development of nuclear weapons, there are other options on the table that would significantly alter U.S. policy.

    While Gen. John Hyten, the commander of U.S. Strategic Command, maintained on Wednesday that “any solution to the North Korea problem has to involve China” a senior intel official told NBC he doubted U.S. and China could find a diplomatic solution to the crisis. “We have 20 years of diplomacy and sanctions under our belt that has failed to stop the North Korean program,” said the official involved in the review. “I’m not advocating pre-emptive war, nor do I think that the deployment of nuclear weapons buys more for us than it costs,” but he stressed that the U.S. was dealing with a “war today” situation.

    The “nuclear” option would mark the first overseas nuclear deployment since the end of the Cold War, a move that would promptly provoke global condemnation, not least of all by China. It was not immediately clear if South Korea’s regime – in turmoil recently following the recent impeachment and arrest of ex-president Park – had been consulted with the proposed strategy. The U.S. withdrew all
    nuclear weapons from South Korea 25 years ago.

    This “option” is also facing domestic pushback: “I don’t think that [deploying nuclear weapons] is a good idea. I think that it will only inflame the view from Pyongyang,” retired Adm. James Stavridis and former NATO commander told NBC News. “I don’t see any upside to it because the idea that we would use a nuclear weapon even against North Korea is highly unlikely.” 

    South Korea’s sentiment aside, NBC notes that the US Air Force leadership doesn’t “necessarily” support putting nuclear weapons in South Korea. As an alternative, it’s been practicing sorties right out of the depths of the cold war: long-range strikes with strategic bombers — sending them to the region for exercises and deploying them in Guam and on the peninsula as a show of force.

    * * *

    The second, and just as controversial option, is to kill North Korean leader Kim Jong-un and other senior leaders in charge of the country’s nuclear

    prgoram. The overt regime overthrow option has huge downsides, said Mark Lippert, the former U.S, ambassador to South Korea, who also served as an assistant defense secretary under President Barack Obama. “Discussions of regime change and decapitation…tend to cause the Chinese great pause of concern and tends to have them move in the opposite direction we would like them to move in terms of pressure,” he said.

    Quoted by NBC, Stavridis, said that “decapitation is always a tempting strategy when you’re faced with a highly unpredictable and highly dangerous leader”, especially for a nation like the US he did not add.  “The question you have to ask yourself,” he said, “is what happens the day after you decapitate? I think that in North Korea, it’s an enormous unknown.”

    In any case, the groundwork has already been laid: as reproted one month ago, elite US forces, including  Delta Force and SEAL Team 6 have been conducting drills on taking out Kim Jong-Un, as well as practicing tactical North Korea “infiltration.” All they need is the green light.

    * * *

    A third, bonus option, is covert action, infiltrating U.S. and South Korean special forces into North Korea to sabotage or take out key infrastructure — for instance, blowing up bridges to block the movement of mobile missiles. The CIA, which would oversee such operations, told NBC News it could offer “no guidance” on this option. But Stavridis said that he felt it was the “best strategy” should the U.S. be forced to take military action. He described such action as: “some combination of special forces with South Korea and cyber.”

    One wonders if the CIA creating a “false flag” attack on South Korea (or China) using chemical weapons was one of the options under consideration.

    * * *

    Trump has already indicated he’s open to unilateral action if China fails to rein in its ally, telling the Financial Times last weekend, “If China is not going to solve North Korea, we will.”

    Until last night, his words were largely dismissed as more bluster; however having just demonstrated how quickly Trump is willing to launch offensive operations – having U-turned on his Syrian position in less than a week – suddenly the possibility of nuclear war with an irrational adversary does not look all that distant.

  • David Rosenberg: "This Is A Bubble Of Historic Proportions"

    Shortly after we remarked most recently on the unprecedented Canadian housing bubble that has migrated from Vancouver to Toronto, Gluskin Sheff's Chief Economist David Rosenberg joined the growing chorus of calls for government intervention into the Toronto housing market. In an interview on BNN, Rosenberg, who correctly called the U.S. housing bubble in 2005 when still at Merrill Lynch, said the massive deviation from historical norms has him drawing comparisons between the two situations.

    This bubble is on par with what we had in the States back in ’05, ’06, ’07,” he said. “We have to actually take a look at the situation. The housing market here is in a classic price bubble. If you don’t acknowledge that, you have your head in the sand.”

    Rosenberg warned unchecked increases in home prices are becoming a social issue. “It’s not an equity, it’s not a bond — it’s where people live,” he said. “Where home prices are in Toronto, they absorb 13 years of average family income. That is completely abnormal. We’ve never seen this before.”

    “We’re out of equilibrium, and when we’re out of equilibrium, or there’s some sort of market failure, are there grounds there for government intervention? I think even the most ardent libertarian would say ‘yes'." Rosenberg said there are a trio of levers the government can pull to cool down the market. Authorities can address supply, which he said has already been “kiboshed.” Interest rates can be raised, but Rosenberg doesn’t believe the Bank of Canada will do that.  Or new policy can be drafted to address the prevalence of speculation.

    “These are not prices driven by the local fundamentals — this is the foreign buyer coming in,” Rosenberg said. “Toronto has really emerged as a first-class city, not just politically, not just culturally and economically, but also in terms of being a major financial centre. But if you’re going to ask me at this stage, ‘do we need to approach taxation of this capital coming in differently to curb the demand?’ [That’s] absolutely right.”

    And just to make his position clear, Rosenberg also an op-ed in Canada's Financial Post on the topic, titled simply enough:

    "Make no mistake, the Toronto real estate market is in a bubble of historic proportions"

    by David Rosenberg

    The concerns about froth in Toronto’s housing market are not likely to subside given the sticker-shock from the latest report from the Toronto Real Estate Board.

    As per the March report, the average single-detached house in the Greater Toronto Area (GTA) sold for $1,214,422 last month up from $910,375 in March of last year — that is a 33 per cent YoY surge, and follows a 16 per cent run-up over the prior 12 months.

    Whatever the term is for an acceleration in an already parabolic curve, well, that is what we have on our hands today.

    And it isn’t just detached homes seeing this degree of rapid price appreciation — the benchmark single-family home selling price was up 29 per cent YoY, the benchmark townhouse price was up 28 per cent and the condo/apartment composite was up 24 per cent.

    This is a bubble of historic proportions.

    Not only to have home prices in the GTA now absorb an unprecedented 13 years of median family income, but to have 30 per-cent-ish run-ups against a backdrop of a 2 per cent inflation rate, wages that are barely going up 2 per cent as well, and nominal GDP growth of around 4 per cent. This should put 30 per cent into some sort of perspective when we conclude that what we have on our hands is a near three standard deviation event.

    That alone qualifies as a bubble — if you don’t like that term, then call it a giant sud. In the past, Toronto home prices went up at an annual rate of 4 per cent in real terms, in the past year they have surged by nearly 30 per cent.

    Some context, however, is needed here.

    First, this aggressive increase in home prices in Canada’s most populous city has come (at least in part) due to strong competition among potential buyers for comparatively scant homes for sale.

    Active listings of homes available for sale in Toronto plunged 35.2 per cent YoY in March, which means that the months’ supply of houses on the market is a miniscule 0.65, down from 1.18 last March — for reference, a “balanced market” sees a months’ supply figure around 6.0. The average home that was put up for sale remained on the market for just 10 days, down from 16 days a year ago.

    These measures of “tightness” in the market are without precedent — not even the red-hot late-1980s bubble experience could ever compete with today’s backdrop.

    As well, the sales-to-new listings ratio sits well into “sellers’ market” territory at 70.8 per cent, which compares to 69.4 per cent a year ago — a ratio between 40 per cent and 60 per cent is considered indicative of a “balanced market.”

    No wonder nobody wants to list their home! It’s become such a valuable asset.

    But you see, this is where the danger comes in: when people start to view their house as some investment as opposed to a home — a place to raise the kids and play with them in the backyard.

    A house is an asset indeed, but should never be compared to a stock or a bond or even other investable properties. It is a place to live.

    Unlike a stock, which you can sell anytime and tuck away the winnings, if you sell your house, well, you still need a roof over your head. A stock with a dividend gives you an income stream, as does a fixed-income instrument. Unless you are a landlord, your house is burning cash (utilities, property taxes, maintenance), not bringing in cash.   

    So there are indeed some supply and demand fundamentals that are underpinning prices. Insofar as the demand is rising because people think they are investing in something hot just because of the accelerating momentum, well, these people are going to end up being pretty big losers. For if the government catches a whiff that it is now speculative fever that is dominating the uber-hot housing market, well that could very well elicit a response (as in capital gains taxes for those who sell within a year or two).

    At some point, a correction would be very healthy because on the other side, owners of homes will then realize that no, they did not win some lottery, and will finally be willing to start listing their property, especially those who deep down want to sell (it could well be that the move-up buyers would like to sell but can’t afford that mansion of their dreams).

    Not to mention first-time buyers who do not have the income for a down payment that any lender would consider appropriate. After all, we have hit the bizarre stage where a typical home now (and we are talking about a bungalow in Pape Village, not exactly an estate on Warren Road) would absorb 13 years of median household income.

    Not even in the late 1980s, did housing get this expensive on this basis, and we know all too well how the Bank of Canada ultimately reacted and what happened next. Stephen Poloz is definitely no John Crow — though things can always change.     

    One caveat should be noted because what is different this time around (oh, how I hate using that phrase) is that Toronto has emerged as a world-class city and the foreign buyer is clearly having an impact.

    So while Toronto residential real estate is indeed expensive for the locals, it is far less so for foreign investors, especially for Americans who can buy Canadian assets at a 25 per cent discount from a currency perspective.

    In the mid to late 1980s, Toronto did not have the Rogers Center. It did not have the Raptors. It had no decent hotel outside of the Four Seasons and the Windsor Arms. Truly great restaurants were not to be found (unless you want to count Winston’s!). There was no Drake. And Toronto FC was not in existence. Not to mention there was very little in the way of a theater district.

    While the separatist threat in Quebec gave Toronto the mantle of being Canada’s financial center back in 1976, the city was never seriously viewed as a global player in this respect until very recently. With more than 250,000 employed in the financial services sector, Toronto has very quietly emerged as the second largest financial hub in North America (after New York). Of the 84 cities surveyed in the 2015 Global Financial Centres Index, Toronto ranked 8th!

    So while prices may seem a little nutty, it is important to note that Toronto is a major financial, economic and cultural centre, and when compared to its peers globally, prices appear far less crazy, too.

    This doesn’t make the current price action justified based on local income fundamentals, but based on the foreign incomes of those wanting to establish a toehold in a stable Toronto amidst a sea of global instability, the prices are not that much out of whack.

    As per data compiled by Global Property Guide, Toronto home prices on a U.S. dollar per square metre basis rank just 14th in the world, well behind the likes of London, New York, Paris and Tokyo.

    And at the same time, if you are a family in say, Brooklyn Heights looking to buy property in Toronto it would only absorb six years of income; and if you reside in Santa Monica and feel like dipping your toes in the Toronto real estate market, it would only take up four years of your annual median take-home pay. The same (four years) holds true for those wealthy enough to be living in Knightsbridge.

    You see, when Toronto home prices are measured against incomes in other places of the world, it is not nearly as onerous (especially in Canadian dollar terms).

    In other words, many well-heeled foreigners can far better afford what the locals can’t afford here, and housing in recent years has truly become in internationally-traded asset class (though I wouldn’t recommend ripping out the foundation and exporting the structure anywhere).

    So it goes without saying that if the name of the game is to tame the flame then have the foreign investor share the blame. A tax on foreign transactions, as was already done in Vancouver, seems like a pretty good idea. And the government can at the very least use the revenues to either provide greater tax incentives to build and/or provide tax relief for the low/mid income entry-level buyer who is struggling to cobble together the funds for a down payment.

    So yes, in this sense, I would be advocating a Robin Hood style of economic policy.

    Indeed, what may be needed is a very progressive tax on foreign buying of local residential real estate in the bid to cool demand and reverse the exponential surge in home prices — a surge that is creating tremendous social problems by crowding out young families (or individuals) from chasing the homeownership dream (a typical response is for these folks is to go out and buy a condo instead, but the reality is that average prices here have also skyrocketed 24 per cent in the past year and are in a bubble of their own).

    Everyone says that the Bank of Canada cannot raise interest rates to curb the excess demand because of the deleterious effect this would have on the economy writ large (for example, taking the Canadian dollar back up to or above 80 cents which would thwart our export competitiveness which has become a longstanding role of the central bank).

    Be that as it may, the home price surge in the GTA over the past year has impaired homeowner affordability to such an extent that it is basically the equivalent of the Bank of Canada having raised rates 150 basis points — actually a 200 basis point increase if you were to look at what home prices have done to affordability ratios over the past two years (so you can’t have it both ways; the price action is basically equivalent to having five-year mortgage rates closer to 5.75 per cent than the actual posted rate of 3.75 per cent).

    Barring a bold move by the government to bring home prices to levels consistent with domestic economic fundamentals as opposed to income levels from well-heeled buyers from the U.S., China, and Europe, maybe it is time for the Bank of Canada to start playing a role and follow the Fed on a gradual rising interest rate path.

  • The End Game

    Authored by Kevin Muir via The Macro Tourist blog,

    We all know the terrifying debt statistics. We are bombarded every day with bearish reports about the gargantuan Federal debt, and when combined with the growing private sector indebtedness, the monolithic entitlements problem, and the looming pension fund shortage, it is easy to wonder how we will ever get out of this colossal mess.

    I do not dispute the numbers one bit. We have too much debt. It’s simple math. We are screwed. Full stop. All of this debt will never be paid back in real terms. Truth be told, I am probably one of the most bearish people out there when it comes to our debt problem.

    But I differ greatly from the vast majority of my peers about what that means for the economy and financial markets.

    There are three solutions to the problem of over-indebtedness.

    The first is to grow your way out. Maybe you cut some spending, hunker down, trim up the sails, and right the ship through good old fashioned economic growth. This solution is a pipe dream left for little children and romantics. In a balance sheet challenged economy, the moment you cut spending, the paradox of thrift kicks in, and the economy rolls over. This is a lesson Japan has learned all too well over the past couple of decades. Not believing Japan’s example, the U.S. repeated the error after the credit crisis of 2008. Thinking overspending was the cause of the problem, the U.S. government (led by the Tea Party) cut discretionary spending to the bone. Remember the 2013 budget sequestration? All of that hullabaloo caused the government to shrink from 2011 to 2015.

    http://themacrotourist.com/images/2017/04/FREDApr0617.png

    Whoa! That doesn’t follow the typical narrative of Obama as a spendthrift fiscally irresponsible President. Didn’t Federal debt balloon under his watch? How does that work? Well, the reality is much of the spending that caused the increase in overall debt was the result of automatic stabilizers – unemployment insurance, etc… Although Obama probably wanted to spend much more, he didn’t. And this is one of the reasons the U.S. economy experienced its weakest post recession recovery. Just look at that chart above. Over the past three decades there has never been a government spending decline of that magnitude.

    Now I realize many of you will probably be saying “good – that’s what’s needed. The idea of increasing spending to solve a problem of too much debt is ridiculous. The reason for the anemic recovery is that we didn’t cut enough.” Which brings me to solution number two.

    In an environment of over-indebtedness, the economy will naturally try to correct through the private sector paying down debt. But over the past half dozen decades, we have been muting regular business cycle declines through overly easy monetary policies. This has encouraged too much borrowing. We have piled more and more debt on the problem. The trouble is that we have done this for so long, the consequences of allowing the cycle to play out has become catastrophic.

    Have a look at the total U.S. credit outstanding (minus financial firms) over the past few decades.

    http://themacrotourist.com/images/2017/04/CreditApr0617.png

    See the slight leveling off in 2007? That is the horrific debt de-leveraging that caused the greatest financial crisis since the Great Depression.

    So far all those economists of the Austrian ilk, I acknowledge that if the government and the Federal Reserve would allow the natural business cycle to operate, we would have debt destruction that would cause the financial system to reset. After this event, the economy would be all set to grow again. Yet this reset would make the 2008 credit crisis look like a warm up. We would have 1930’s style breadlines.

    I don’t buy for one second that the public has the stomach to sit through this type of event. Maybe when the problem of over-indebtedness was smaller, we might have done it. Perhaps in the 1980’s, or maybe even the 1990’s when Greenspan first brought the irrational exuberance problem to the fore, but not today. The pain that would accompany a true debt destruction reset would be too immense. The amount of social upheaval and instability would probably mean the end of the Western world as we know it.

    We can’t grow our way out the debt problem, and we certainly can’t allow it to reset through a cleansing business cycle flush, so what’s the solution?

    That leaves the one tried and true solution. For thousands of years when societies have gotten in trouble with too much debt, they have solved their problem by printing their way out of it. To think the modern day situation will be any different is naive.

    Yeah, sure there will be moments when governments flirt with the idea of prudent monetary and fiscal policy. But those periods will be fleeting. Faced with moribund growth and a steadily increasing debt burden, at the first sign of trouble they will quickly turn on the presses and resort to the time old tradition of inflating away their debts.

    Which brings me to the end game. There are many forecasts for a 2008 style collapse. The consensus is that eventually the debt burden becomes too big to bear, and the next Great Depression rolls in.

    I don’t think that is how it plays out. Most traders hedge for the previous crisis. Visions of 2008 still fill the nightmares of investors. This explains why “gurus” like Carl Icahn have long presentations where they advocate hedges that worked so well in the last crash.

    http://themacrotourist.com/images/2017/04/CarlApr0617.png

    But what’s going to happen the moment things look dicey again? The governments and Central Banks will inflate. We saw it with BREXIT. We saw it with Eurocrisis of 2011. In fact, governments are becoming more and more quick to step on the gas pedal. They realize the costs of over inflating are far less than the costs of delaying.

    Now you might have philosophical problems with these responses. For the longest time I railed on about the dangers of irresponsible monetary policies. It got so bad that on my ski trips, my pals banned me from talking about Greenspan’s reckless behaviour.

    Yet today, I have come around to the idea that the debt problem is so pervasive, there is only way one forward – inflate. We are going to end up there anyway, so let’s just inflate away the burden and restart with a system that prevents this from ever happening again.

    All of this talk is just that though – talk. As traders we need to concern ourselves about what is, instead of, what should be.

    I don’t really care to argue about the morality of these decisions. The internet is filled with idiots shouting their opinions at the top of their lungs. The last thing you need is one more.

    But I want to leave you with this idea. Given the enormous debt problem, the notion we will pay it back in real terms through growth, or even more improbably, the idea of allowing a massive debt destruction event to reset the system, is unrealistic. Any economic weakness will be met with more printing, and more stimulus. Maybe governments allow one or two quarters of weakness. It might even drag on for a year. But then as sure as day follows night, they will inflate again. They simply cannot afford not to.

    They will do anything (and everything) to ensure the financial system doesn’t implode on itself. They will engage in massive Quantitative Easing programs. They will venture out to buy risky assets. They will even take interest rates to negative levels. It is only a matter of time before they are simply dropping cash right into individuals bank accounts.

    I wish I could take credit for this, but it was Bill Fleckenstein who said it first. They will keep printing until the bond market takes the keys away.

    Many market participants are worried about the economy rolling over. Although I understand it would cause some declines in financial markets, what would be the end result? Central Banks would ease, governments would spend, and they would find a way to prop everything back up again.

    I am not smart enough to know if we are going to get another cyclical dip that is met with more easing over the next few quarters. If I had to guess, I would say this is probable – especially in the US. I am not predicting the medium term squiggles. But if this sort of decline were to occur, it would not be the big one.

    The true end game won’t come from weakness, it will come from strength. What happens when economic growth picks up and causes inflation? Given the massive indebtedness, Central Banks will be loathe to raise rates enough to cool inflation. This will only cause more inflation.

    Eventually we will hit a point where governments will be unable to raise rates because it would crush their balance sheet, yet inflation will dictate rates be higher. This will be checkmate. Governments will have no moves. Inflation will soar, the yield curve will steepen (to record wides), and the inflationary reset will be upon us.

    The end game won’t come from a recession, it will come from a boom that gets out of control. I know that it a non-consensus minority opinion, but it’s always the story that no one is expecting that ends up being the problem.

Digest powered by RSS Digest

Today’s News 7th April 2017

  • Clipping Iran's Wings – Winners & Losers From Congress' New Sanctions

    Authored by James Durso via RealClearDefense.com,

     

    Iran’s aviation sector will spend much more time taxiing before takeoff if the Countering Iran’s Destabilizing Activities Act Of 2017 becomes law. The bill enjoys bipartisan support in the U.S. Senate, and the House of Representatives is considering a companion bill, the Iran Ballistic Missiles and International Sanctions Enforcement Act, which also enjoys bipartisan support. 

    The Senate bill has three primary provisions: (1) Imposing mandatory sanctions on persons involved with Iran’s ballistic missile program; (2) Applies terrorism sanctions to the Islamic Revolutionary Guard Corps (IRGC); Requires the President to block the property of any person or entity involved in specific activities related to the supply, sale, or transfer of prohibited arms and related material to or from Iran.  The House bill primarily focuses on throttling the supply chain that supports Iran’s ballistic missile program. 

    The Senate and House bills have the support of Iran-wary groups, such as The American Israel Public Affairs Committee  and the Foundation for Defense of Democracies who feel the bills do not violate the letter or spirit of the “nuclear deal,” the Joint Comprehensive Plan of Action (JCPOA), as they do not target Iran’s nuclear program.  In his Senate testimony in support of the JCPOA, then-Secretary of State John Kerry stated: “We’re not going to come back and just slap [sanctions] on again, but that absolutely does not mean that we are precluded from sanctioning Iranian actors, sectors, as any actions or circumstances warrant.”  The bills face opposition by JCPOA supporters, such as the National Iranian American Council, and the Public Affairs Alliance of Iranian Americans who feel additional sanctions for any reason will derail the JCPOA. (Sanctions levied by the U.S., the European Union, and the United Nations are usually for the proliferation of nuclear weapons or ballistic missile technology, support of terrorism, or egregious human rights violations.)

    In March 2016, the U.S. Treasury Department sanctioned Iranian airline Mahan Air for supporting Iran’s ballistic missile program.  Making Mahan Air a two-time loser, as it was sanctioned in 2011 “for providing financial, material, and technological support” to the Quds Force of the Islamic Revolutionary Guards Corps (IRGC).  Iran Air was also sanctioned in 2011, primarily for transporting goods prohibited under United Nations Security Council Resolution 1803, which required Iran to “cease and desist from any and all uranium enrichment,” and any research and development associated with centrifuges and uranium enrichment. The Iran Air sanctions were lifted to secure Iran’s assent to the JCPOA, but Iran Air and Mahan Air have been active in supporting the Assad regime in Syria, leaving Iran Air vulnerable to non-nuclear-related sanctions in the future.

    Iran has no strategic airlift capability, so it has pressed into service its private and state-owned air carriers, Iran Air, Mahan Air, and Yas Air (formerly Pars Air; sanctioned by the UN, the EU, and the U.S.). These carriers make up Iran’s airbridge to Syria and its allies, the Bashar Assad regime, and Lebanese Hezbollah, a creature of the IRGC.  The Mahan Air fleet and the Iran Air fleet are mostly Airbus airframes; Yas Air’s fleet is mostly Russian aircraft

    In February 2016, Iran Air agreed to purchase 118 Airbus commercial aircraft worth an estimated $27 billion.  In July 2016, Iran Air and Boeing agreed to the sale of 80, and leasing of 29, passenger aircraft worth an estimated $16 billion, with the first deliveries scheduled for 2018.

    Congressional opponents of Iran want to cancel Boeing’s agreement with Iran, but it will be more practical to allow the executive branch sanction the buyer, Iran Air, which will be possible under the Iran Terror-Free Skies Act of 2017.  Thus, Boeing can declare force majeure to avoid contract penalties, and Members of Congress can avoid the bad optics of voting against a large export contract and all those jobs.

    How can the U.S. ensure Iran Air is eliminated as a tool of Iran’s apparat of subversion in Syria?

    • When Iran Air flights make their next appearance in the Syrian theatre of operations in support of the Assad regime or Hezbollah, the U.S. sanctions the airline under the authority of Executive Order 13572, Blocking Property of Certain Persons With Respect to Human Rights Abuses in Syria Or, if the IRGC is designated a terrorist organization, apply sanctions to Iran Air as a confederate of the IRGC. The U.S. may prefer to wait until it has achieved its goals vis-à-vis the Islamic State before acting.
    • Boeing regretfully suspends its dealings with Iran Air.
    • Because the U.S. is concerned about the safety of civil aviation, it reminds interested parties that it did issue a license for the inspection and repair of Iran’s civilian aircraft “so long as those services were performed outside Iran so the parts and services could not be misdirected to Iran’s military aircraft.” Iran refused to take advantage of the license, but it will be useful to remind Iran and its surrogates of this when they wave the bloody shirt when tragedy strikes, which is likely given Iran’s poor aviation safety record.
    • The U.S. refuses export licenses for U.S-made components bound for Airbus aircraft to be sold to Iran Air.
    • If Airbus decides to install substitute components, the U.S. places the type certificates for those models, the narrow-body A320, the long-haul A321, and the long-range A350, under review. (The “type certificate” is issued by a regulating body, such as the American Federal Aviation Administration or the European Aviation Safety Agency, to signify the airworthiness of an aircraft manufacturing design or "type." Once the certificate is issued the design cannot be changed, at least not without significant time and expense.)
    • Once the type certificates are under review, the U.S. approaches the countries that are Iran Air destinations and requests that, due to the now-nonconforming aircraft configurations, the countries withdraw landing privileges for those aircraft. A similar approach will be made to countries along those routes with the request that they deny flight permits to those Iran Air aircraft until the type certificate review is completed  (A “flight permit” is the “permission required by an aircraft to overfly, land, or make a technical stop [a stop for refueling or essential repairs] in any country's airspace.”
    • If the Airbus and Boeing options are off the table, Iran Air may have to turn to Russia and China for aircraft. The U.S. does not have much leverage here, but China and Russia will be dealing with a desperate buyer and will act accordingly.  Russia and China are wise enough to know dealing with a terrorist-designated IRGC is what’s commonly known as a “bad idea” and will pile on restrictions regarding the use of the aircraft to give them an excuse when the aircraft turn up in Syria. However, by then they will have been paid.
    • The clandestine sellers of parts for Iran’s remaining U.S.-origin aircraft will price their wares accordingly.

    Other considerations

    • Boeing will have to be made whole, as the sale has been factored into its stock price, but President Trump’s suggested “big order” of stealthy F/A-18 Super Hornets may do nicely, thank you. Utilization of the Export- Import Bank of the United States (EXIM) would greatly aid in the facilitation of the sale, and perhaps resuscitating the Overseas Private Investment Corporation (OPIC). 
    • The U.S. should re-issue the license for inspection and repair of Iran’s Boeing aircraft at a location outside Iran. America will do this for its own satisfaction as Iran will ignore the offer as it did before.  
    • Iran Air will be unable to compete with the rival carriers from Gulf countries, which the U.S. can trade for something, maybe in the dispute between U.S. and Gulf airlines over government subsidies.

    The winners and losers

    • Winners: Syrian citizens on the receiving end of Iranian guns; Israel, which will get a breather if Hezbollah is hobbled; Lebanese citizens, who will get a breather if Hezbollah is hobbled; Boeing
    • Losers: Airbus; any IRGC smuggling scheme that is using the flights to and from Syria; Iranian citizens, who will lose the chance to travel safely from their prison republic.

  • ISIS, Al-Qaeda Praise Trump's Attack

    Having perhaps lost the support of much of his anti-war base, President Trump appears to have won praise from two new groups…

    //platform.twitter.com/widgets.js

    Even even more ironic, today is the 100th anniversary of the United States entering World War One.

  • "Nuclear War Much More Likely" Paul Craig Roberts: In Dangerous World, Putin Will Not Trust America

    Authored by Mac Slavo via SHTFplan.com,

    Don’t be fooled by appearances.

    President Trump is only at war with the Deep State on one level.

    On another, the Deep State already run everything – when it comes to foreign policy, economics, politics and the mainstream narrative that is meant to set & sync headlines, clocks and consumer habits around the world.

    War is brewing, as Trump hinted strongly in his upstart presidential campaign, but it will come, ultimately, at the terms of the long-running organ that actually steers U.S. policy.

    After a very dubious “chemical attack” in Syria to stir the pot (the White Helmets did not even use gloves when picking up, touching and treating supposedly contaminated children), it is clear that war could erupt overnight with any number of middle eastern ‘enemies,’ or with North Korea, Russia or just about anyone else.

    And one narrative that has been almost constant from the establishment power base and their media lapdogs during the last cycle has been dogging Russia in anyway it can – from baseless hacking accusations, to controversial sanctions talks, to attributing ultimate responsibility for chemical warfare attacks.

    One can clearly see that a fight is being picked. If the story doesn’t fit, they’ll force it, or just find another excuse.

    This, in short, is why the well respected Paul Craig Roberts says we are one step closer to “going poof” – it is three steps back to the thermonuclear cold war, only this time the leaders aren’t even attempting to work it out diplomatically.

    According to Dr. Roberts, foreign policy figures in the days of Kennedy and Krushchev were actually attempting to trust and deescalate, fearful of setting things off.

    Today, foreign policy men and woman seem dogged and emboldened by the chance for destruction.

    As USA Watchdog reported:

    Dr. Roberts, formerly a top editor at the Wall Street Journal, says nuclear war is the most dire problem Americans face. This comes at a time when trust between Russia and America is at all-time lows.  Dr. Roberts says, “The danger is both warning systems, ours and the Soviets (Russians).  During the period of the cold war, there were many false alarms of incoming missiles.  Both sides would see incoming missiles, and yet no one believed it, and the reason they didn’t believe it was that the governments were working together to defuse tensions.”

     

    “You had Kennedy with Khrushchev.  You had Nixon who gave us SALT-1, an anti-ballistic missile treaty.  You had Carter who gave us SALT-2.  You had Reagan and Gorbachev who ended the cold war.  So, all during these periods when false information of incoming missiles came in, no one believed it, but if you have distrust between the two powers as we now have, and Putin has said on a number of occasions we can no longer trust the Americans, if you can’t trust and you get incoming missile alerts, you are much more inclined to believe it.  So, the prospect of nuclear war is more likely.  Washington and the media . . . are creating distrust among their populations with Russia with this constant anti-Russian propaganda.  With all this bogus and false allegations about Russia. . . . the chances of all this going poof are very high.”

    via Greg Hunter’s YouTube channel

     

    Combine all the mistrust, aggression and attempts to conflate conflicts into a larger disaster.

    The debt situation, the economics and the social indicators are all abysmal and depressing. The morale of the country has devolved, and mutated strangely with the pockets of information and counter-information that reside online.

    And there are those who’d prefer to torch things off, collect on military industrial contracts during prolonged war, and start things over when people have sobered up to the grim new realities.

    These will be trying times.

  • Pentagon Releases Video Of Tomahawk Cruise Missile Launches

    Having unleashed 59 Tomahawk missiles into Syria, The Pentagon has released video of the attacks against Assad’s assets…

    //platform.twitter.com/widgets.js

    And here is video of the impact on the Al Shaerat military airfield being bombed showing the large ammo depot blasts – Syrian opposition says airbase struck by US military was used by Assad regime to ‘kill thousands’

    //platform.twitter.com/widgets.js

    How long until President Trump retweets these images with a ‘punchy’ hashtag?

    //platform.twitter.com/widgets.js

    It seems this action should quieten down the Democrats’ Russian narrative for a while?

  • Wall Street Analysts Respond To Syrian Air Strikes

    With stocks tumbling and bonds and bullion bid, Wall Street's best and brightest weigh in on what traders should expect next after news of the cruise missile attack.

    Investors are looking for response from Russia and other countries to gauge market impact of the U.S. strike on Syria (via Bloomberg)

    Westpac Banking Corp (Sean Callow, senior strategist)

    “Markets should have been prepared for U.S. military action given Trump’s comments but the strike was on the early side of expectations, especially since it occurred halfway through the Trump-Xi meeting.”

     

    “While we have probably already seen the sharpest market response, there is likely to be a lingering sense of unease over how quickly Trump switched from rhetorical support for the Syria/Russia storyline about fighting terrorists.”

    Sumitomo Mitsui Trust Bank (Ayako Sera, market strategist)

    “This was a huge surprise, especially at this timing, when Trump is meeting with Xi. People expected North Korea to be on the table as things weren’t going smoothly internally in the U.S. and wanted to focus on external policies — but instead, it was Syria where he took action.”

     

    “Whether the market reaction is temporary or will continue will depend on the reactions from the international community.”

     

    “Hopefully Russia will also be critical of Syria’s gas attack, but without international unity it’s a negative for the U.S.”

    Scotiabank (Gao Qi, currency strategist)

    “Markets will be paying more attention to political and event risks, so it’d be risk-aversion trade going forward. Under such circumstances, emerging-market currencies, including the yuan, tend to be weaker, while the safe-havens like yen would be stronger. Whether it’d turn out to be knee-jerk reaction or medium-term trend, it’d depend on how things evolve in Syria and North Korea.”

    AMP Capital Investors (Shane Oliver, head of investment strategy)

    “It’s a surprise that the strike occurred so quickly. That’s why you’ve seen this risk off right now in markets. Unless this signals some sort of escalation in the war in Syria with heavy increase in U.S. involvement, it’s unlikely to have a lasting impact in markets. We have seen these things in the past and invariably you see the short-term negative reaction, and it proves very short-lived.”

    Principal Global Investors (Jim McCaughan, CEO)

    “The attack on an airfield in Syria is really not surprising in the circumstances. The move to safe havens is more just in case anything goes wrong. If this turns out to be a pretty surgical strike against the Syrian military, I think the market will get over it and recover again.”

     

    “I think the market is really only worried about something going wrong in the execution here. That’s not the most likely outcome. So I think this might be quite temporary in terms of market impact.”

    Capital Investment Management (Alan Tseng, vice president)

    “With the uncertainty in international geo-politics, investors are taking a wait-and-see attitude, reducing their holdings of stocks.”

    For now markets have stabilized after the initial risk off knee jerk lower…

  • "Russian Forces Were Notified In Advance": Pentagon Statement On Air Strikes In Syria

    Pentagon Spokesman Capt. Jeff Davis has issued the following statement on the U.S. strike in Syria in which US ships launched 59 Tomahawk cruide missiles at Syria.

    Statement from Pentagon Spokesman Capt. Jeff Davis on U.S. strike in Syria

     

    At the direction of the president, U.S. forces conducted a cruise missile strike against a Syrian Air Force airfield today at about 8:40 p.m. EDT (4:40 a.m., April 7, in Syria). The strike targeted Shayrat Airfield in Homs governorate, and were in response to the Syrian government’s chemical weapons attack April 4 in Khan Sheikhoun, which killed and injured hundreds of innocent Syrian people, including women and children.

     

    The strike was conducted using Tomahawk Land Attack Missiles (TLAMs) launched from the destroyers USS Porter and USS Ross in the Eastern Mediterranean Sea. A total of 59 TLAMs targeted aircraft, hardened aircraft shelters, petroleum and logistical storage, ammunition supply bunkers, air defense systems, and radars. As always, the U.S. took extraordinary measures to avoid civilian casualties and to comply with the Law of Armed Conflict. Every precaution was taken to execute this strike with minimal risk to personnel at the airfield.

     

    The strike was a proportional response to Assad’s heinous act. Shayrat Airfield was used to store chemical weapons and Syrian air forces. The U.S. intelligence community assesses that aircraft from Shayrat conducted the chemical weapons attack on April 4. The strike was intended to deter the regime from using chemical weapons again.

     

    Russian forces were notified in advance of the strike using the established deconfliction line. U.S. military planners took precautions to minimize risk to Russian or Syrian personnel located at the airfield.

     

    We are assessing the results of the strike. Initial indications are that this strike has severely damaged or destroyed Syrian aircraft and support infrastructure and equipment at Shayrat Airfield, reducing the Syrian Government’s ability to deliver chemical weapons. The use of chemical weapons against innocent people will not be tolerated.

    And moments after the Pentagon statement, House speaker Paul Ryan said that the US action was “appropriate and just.”

    //platform.twitter.com/widgets.js

  • Gold Spikes To 5 Month Highs; Stocks, Bond Yields Sink As US Begins Syria Operation

    While the initial reaction to Rex Tillerson's statements was relatively understated, the actions of tonight have sparked a much more considerable move in stocks (lower), bonds (lower in yield), and gold (higher)…

    Gold spiked to the highest since November 10th – erasing 90 % of the post-Trump election losses…

     

    S&P is fading fast…

     

    And 10Y Yields crashed through support to the lowest since Nov 17th…

  • Trump Statement On Syria Air Strikes

    Shortly after he concluded his dinner with Xi Jinping at Mar-A-Lago, Trump authorized the airstrike against Syria in which at least 60 cruise missiles were launched, and delivered the following brief statement:

    My fellow Americans, on Tuesday Syrian dictator Bashar al Assad launched a horrible chemical weapons attack on innocent civilians. using a deadly nerve agent, Assad choked out the lives of helpless men, women and children.

     

    It was a slow and brutal death for so many, even beautiful babies were cruelly murdered in this very barbaric attack. No child of God should ever suffer such horror.

     

    Tonight I ordered a targeted military strike on the airfield in Syria from where the chemical attack was launched. It is in this vital national security interest of the United States to prevent and deter the spread and use of deadly chemical weapons.

     

    There can be no dispute that Syria used banned chemical weapons violated its obligations under the chemical weapons convention and ignored the urging of the UN Security Council.

     

    Years of previous attempts at changing Assad’s behavior have all failed and failed very dramatically. As a result the refugee crisis continues to deepen and the region continues to destabilize threatening the United States and its allies.

     

    Tonight I call on all civilized nations to join us in seeking to end the slaughter and bloodshed in Syria. And also to end terrorism of all kinds and all types.

     

    We ask for God’s wisdom as we face the challenge of our very troubled world. We pray for the lives of the wounded and for the souls of those who have passed and we hope that as long as american stands for justice then peace and harmony will in the end prevail. Goodnight and God bless America and the entire world. Thank you.

    //platform.twitter.com/widgets.js

  • Is Your "Democracy" Actually a Totalitarian State? Take This Quick Quiz

    Authored by Charles Hugh-Smith via OfTwoMinds blog,

    The USA is already a Totalitarian State with a Ministry of Propaganda that works overtime to generate a flimsy illusion of "democracy."

    Is your "democracy" (or republic) actually a Totalitarian State? That is, is it a "democracy" or "republic" in name only? To find out, take this quick quiz.

    1. Does your government (federal, state and local) seize citizens' assets without due process? In other words, the rule of law is dead; the state is the law. If the answer is yes, Your "democracy" is already a Totalitarian State. The answer in the USA is a definitive "yes."

     

    2. Does your government impose tyranny by complexity? If so, the average citizen lacks the wealth and connections needed to fight the seizure of private property without due process or recourse. In the USA, the answer is "yes," the government is a tyranny by complexity.

     

    3. Is your government essentially "for sale" to wealthy elites? If the answer is yes, Your "democracy" is already a Totalitarian State–or more accurately, a fascist Totalitarian State.

     

    4. Does your government spy on its entire citizenry? If the answer is yes, Your "Democracy" is already a Totalitarian State. The answer in the USA is a definitive "yes."

    Well, you have your answer: the USA is already a Totalitarian State with a Ministry of Propaganda that works overtime to generate a flimsy illusion of "democracy." Please read the following links if you seek documentation of these systemic abuses of centralized power.

    Orwell and Kafka Do America: How the Government Steals Your Money–"Legally," Of Course (March 24, 2015)

    Government in the USA is expropriating the private property of its citizenry without due process on a vast scale. I have provided documentation of this extraordinary reality many times over the years.

    The various levels of government have a variety of "legal" (haha) means to steal your property without due process or recourse: civil forfeiture, absurdly expensive traffic fines that lead to jail sentences in the local debtors prison-gulag, forfeiture of assets, including land, should government agents find the marijuana plants they planted on your property (surprise!), the state steals your money in a bank account and notifies you after the fact that the state suspects you owe it taxes, though they have zero evidence of that claim–and on and on.

    The courts place no limits on the central state's power, for they are simply one side of the same statist coin, and so we have a totalitarian kleptocracy that in true Orwellian fashion claims it is a functioning "democracy":

    Criminalizing Poverty For Profit: Local Government's New Debtors Prisons (October 20, 2009)

    "Upholding the Law" or Simply Theft by Other Means? (October 26, 2009)

    Theft By Other Means II: When the State Steals Property, Is It Not Theft? (November 10, 2009

    State Over-Reach: Stripmining the Citizenry for Fun and Profit (November 13, 2009)

    Death of Donald P. Scott (Wikipedia); (source):

    "In October of 1992, millionaire recluse Donald Scott and his bride of two months, Frances Plante Scott, lived in a storybook wooded valley in the mountains high above Malibu, Calif. Trails End Ranch is almost completely surrounded by state and Federal park land, and the neighboring government entities had made numerous attempts to buy out Scott and annex his property.

     

    Stymied in their attempt to buy the Scott ranch, government officials hit on an alternative plan. Contending an officer had seen "marijuana plants growing under the trees" during a drug-seeking overflight, agents from various jurisdictions gathered quietly outside the locked gate to the ranch in the morning mists of Oct. 2, 1992.

     

    After greedily studying the maps of the 200 acres of prime land they were told they'd be able to grab under federal asset seizure laws should they find as few as 14 marijuana plants, they cut the chain on the gate with bolt-cutters and raced a mile up the dirt drive to the ranch, complete with police dogs.

     

    Frances Scott was in the kitchen, brewing her morning coffee, when dozens of men in plainclothes and brandishing guns — no badges or warrants in evidence — came swarming in. Understandably, she screamed for her husband, still asleep upstairs.

     

    Donald Scott, 63, came hurrying down the stairs, a handgun held over his head. The officers shouted for him to lower his weapon. He did. They shot him dead."

    Your government in action–completely legally, of course. I hope you approve. The irony of tragedies like this is that when young Americans faced similar "law enforcement" tactics in the late 1960s and early 1970s via COINTELPRO and other blatant violations of constitutional rights, we were written off as radical hippies who were a threat to something (certainly not democracy, but "something." Like perhaps an illegal war and an out-of-control secret government?)

    Now that average citizens are facing similar tactics, they might find it interesting to study the COINTELPRO campaign of the FBI and other "law enforcement" officials against the anti-Vietnam War movement three decades ago.

    According to attorney Brian Glick in his book War at Home, the FBI used four main methods during COINTELPRO:

    1. Infiltration: Agents and informers did not merely spy on political activists. Their main purpose was to discredit and disrupt. Their very presence served to undermine trust and scare off potential supporters. The FBI and police exploited this fear to smear genuine activists as agents.

     

    2. Psychological Warfare From the Outside: The FBI and police used a myriad of other "dirty tricks" to undermine progressive movements. They planted false media stories and published bogus leaflets and other publications in the name of targeted groups. They forged correspondence, sent anonymous letters, and made anonymous telephone calls. They spread misinformation about meetings and events, set up pseudo movement groups run by government agents, and manipulated or strong-armed parents, employers, landlords, school officials and others to cause trouble for activists.

     

    3. Harassment Through the Legal System: The FBI and police abused the legal system to harass dissidents and make them appear to be criminals. Officers of the law gave perjured testimony and presented fabricated evidence as a pretext for false arrests and wrongful imprisonment. They discriminatorily enforced tax laws and other government regulations and used conspicuous surveillance, "investigative" interviews, and grand jury subpoenas in an effort to intimidate activists and silence their supporters.

     

    4. Extralegal Force and Violence: The FBI conspired with local police departments to threaten dissidents; to conduct illegal break-ins in order to search dissident homes; and to commit vandalism, assaults, beatings and assassinations. The object was to frighten, or eliminate, dissidents and disrupt their movements.

    I've published many first-hand accounts of the kleptocratic predation of the state of California. I invite you to read this carefully:

    Welcome to the Predatory State of California–Even If You Don't Live There (March 20, 2012)

    First the state steals the $1,343 and authorizes its parasitic predatory bag-"person" Wells Fargo Bank to steal another $100 for handling the state's theft.

    A week or two later the citizen is notified of the theft as a fait accompli. Now the onus is on the law-abiding citizen to attempt to reclaim his own money from a distant, all-powerful Kafkaesque state agency. How can this be legal in a nation supposedly operating under rule of law?

    Let's be very clear about what happens here in America on a daily basis:

    1. The state (or other agency of government) steals citizen's money without due process.

     

    2. Then, in a move akin to the executioner making the condemned buy his own death bullet, the state authorizes the "too big to fail" corporate bank which received billions in taxpayer bailouts to steal $100 from the citizen for the digital theft of his money by the state.

     

    3. If the citizen needed that money to pay rent, buy medication to stay alive, etc., tough luck, Buckwheat, the state of California has your money before they notify you of the purported tax liability and now you enter the Kafkaesque insanity of pleading for a "refund" of your own money from an agency designed to thwart transparency and the reclamation of your own money.

    So if you get evicted and are living in a cardboard box and pass away due to inability to buy your meds, hey, the State of California's political class and special interests could care less: they want your money and the rule of law doesn't apply to them.

    If you understand that a purported tax liability is one issue and due process is another far more important issue, then you understand that we now live in an totalitarian nation where "rule of law" is only invoked at the convenience of the political and financial Elites for propaganda purposes.

    The state of California has three basic methods of looting law-abiding citizens:

    1. The old "you didn't pay a $25 filing fee, the fine is now $499 which we took from your bank account." Never mind you have the cancelled check endorsed by the state, proving they received it and cashed it; the Board of Kafkaesque Authority claims "we didn't get the check" and loots your account for the $499 (true story.)

    2. "Fishing expeditions" where companies and citizens are dunned for taxes and fees they might owe, though there is no evidence they do in fact owe fees and taxes. I received many emails describing these fishing expeditions, for example, merely having a license is "evidence" that you must have unreported income.

    3. Enforce all sorts of dubious claims, most importantly:

    A. That anyone collecting a pension from work performed while residing in California is liable for California taxes on that pension, regardless of where they live;

    B. Any income resulting from something invented in California must be reported as income in California, regardless of where the income is derived from or where the inventor now lives.

    In other words, residency has no meaning. Any income remotely connected to California–for example, you had the idea while residing in the state–obligates you to pay California income tax on that idea in perpetuity.

    You know the dominant emotion that the government at every level generates in law-abiding, taxpaying citizens? Fear. And for good reason.

    Welcome to the United States of Orwell, Part 1: Our One Last Chance to Preserve the Bill of Rights (March 26, 2012)

    Welcome to the United States of Orwell, Part 2: Law-Abiding Taxpayers Are Treated as Criminals While the Real Criminals Go Free (March 27, 2012)

    "I received a letter last year that we owed the state of California's Franchise Tax Board $90,000 for taxes in the year 2008. We replied to the Franchise Tax board in a similar manner as RT stating that:

     

    — Did not reside in California in 2008

    — Did not file a State income tax return in California in 2008

    — Did not have any outstanding tax issues with California in 2008

    — Did no business in California in 2008

    — Owned no property in California in 2008

     

    The CA Franchise Tax board responded by putting a lien on us in the state – fortunately, our banks and assets have no business in CA or I am certain our accounts would have been robbed as well.

     

    After a great deal of uncertainty and angst, I found an accountant in CA who advised us that we needed to file a complete CA tax return for 2008 even though we did not owe any tax. We filed the return and received a response that we owed the state $625 to cover the State's collection fees. We paid the fee and within two weeks received a "refund" check for the $625.

     

    On reflection, we felt as if we had been "held up" by some powerful gangsters and if it had not been for an honest tax accountant we would have suffered much financial damage."

    Welcome to the United States of Orwell, Part 3: We had to Destroy Democracy in Order to Save It (March 28, 2012)

    Welcome to the United States of Orwell, Part 4: "Consumer Protection" Just Another Federal Reserve Power Grab (March 29, 2012)

    The Dodd-Frank bill, like Obamacare, is tyranny by complexity. Consider the Glass-Steagall Act, at 37 pages in length, and the 2,319-page monstrosity of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

    If you still doubt the government is the tool of elites, please read this:

    The Purchase of Our Republic (by Y. Falkson) (June 5, 2014)

    Centralization and sociopathology are two sides of one coin: the central state:

    Centralization and Sociopathology (May 21, 2013)

    At the lower levels of the kleptocracy, employees of the government enrich themselves by legalizing their own looting.

    Pay Our Pensions Or We'll Throw You in Jail: the Legalization of Looting (March 19, 2014)

    "Improving Public Safety" and Theft By Other Means (January 15, 2010)

    What happens to once-legitimate governments that devolve into totalitarian kleptocracies? They lose their legitimacy ("the Mandate of Heaven") and fall.

    Smith's Neofeudalism Principle #1: If the citizenry cannot replace a kleptocratic authoritarian government and/or limit the power of the financial Aristocracy at the ballot box, the nation is a democracy in name only.

Digest powered by RSS Digest

Today’s News 6th April 2017

  • Necons Demand Action in Syria, While Serious Questions Regarding the Chemical Attack Remain Unanswered

    Today, President Trump ‘changed his mind’ about Syria and Assad, due to the horrific pictures showing victims of a chemical weapons attack that killed dozens in the ISIS controlled city of Idlib. The media has been plastering one dead child after the next — evoking emotional responses from people looking for a villain to bomb. On a much smaller scale, these are the same tactics that were used to draw us into the 9/11 wars, which still persist in all of their horrible, indecorous, calamity, 16 years hence.

    Trump has changed his mind.

    Before we start send sorties into Syria, trying to take out both Russian and Syrian forces, how about we first see evidence proving this was a government sponsored attack?

    Thus far, according to the NY Times, this is all we have — this one flimsy attestation by ‘witnesses.’

    Witnesses said the gas was delivered by a government airstrike. The attacks raised the possibility that the Syrian government used a banned nerve agent, like sarin, after it agreed in 2013 to eliminate its chemical weapons program.

    Fox’s Geraldo ‘Al Capone Punk’d Me from the Grave’ Rivera offered his take, stating the obvious. It made no sense for Assad to use chemical weapons, especially after the US made overtures accepting his rule in the country.

    The US Ambassador to the UN, Nikki Haley, gave an overly dramatic speech regarding the attacks — standing up and showing pictures of dead children, asking Russia ‘how many children have to die before Russia cares?’

    Russian officials have a different account of the events in Idlib. They said Assad attacked an ISIS weapons depot, which had chemical weapons in it.

    Can we be sure who is telling the truth? No.

    But, thanks to social media, some serious facts have been presented, such as people receiving gas masks two days prior to the attacks and an anti-Assad reporter, writing about a chemical gas attack 24 hours in advance. How can we explain this? Personally, I think we’d be fools to believe anything ISIS or the ‘moderate rebels’ have to say on the matter.

    //platform.twitter.com/widgets.js

    //platform.twitter.com/widgets.js

    //platform.twitter.com/widgets.js

    //platform.twitter.com/widgets.js

    //platform.twitter.com/widgets.js

    Let’s examine the timeline and what has just transpired. The war that the neocons have wanted for the past half decade in Syria, displacing Assad for a ‘pro-western’ leader, was just greenlit by Trump. Bannon was booted from the NSC, amidst rumors that Trump’s son in law, Jared Kushner, was leaking info to the Morning Shill, Joe Scarborough. Nikkie Haley sabre rattled Russia, Syria and Iran at the UN. Trump ‘changed his mind.’ Rex Tillerson told Russia to ‘rethink Assad.’

    And, lastly, Trump called Merkel to discuss the Ukraine.

    This is either the best game of 10d waterpolo ever played or we’ve been had.

    One last thing before I go. Motive.

    Content originally published at iBankCoin.com

     

  • With Trump As President Prepping Is More Important Than Ever

    Authored by Brandon Smith via Alt-Market.com,

    I don’t believe it is as pervasive as certain people may think, but there is a notion among some in the liberty movement that with Donald Trump in the White House the need for crisis preparedness has subsided. Because preppers and survivalists tend to lean towards the conservative side of things, the urgency for prepping almost always explodes when the Democratic party is “in power.” As they say, for example, Barack Obama was perhaps the greatest gun salesman in history with the gun industry growing over 158% during his two terms.

    Now with Republican dominance in Congress, Senate and White House, there is a possible temptation for conservatives to become complacent and comfortable once again. In 2017 so far, ATF background checks have dropped by at least half a million since this time last year, and gun company stocks are turning negative. There are also rumors floating around that survival food companies are suffering from a severe crunch in sales. Though I have not yet found this to be substantiated, I can verify that many preppers I deal with on a daily basis seem to have relaxed their guard.

    I would point out that this is not necessarily all due to Trump. The gun market is likely saturated after eight years of Obama, and one must also consider that as the U.S. economy continues to decline, surplus cash used for prep gear is going to dry up. That said, I do think it is important to examine any assumptions liberty activists might have in terms of a Trump driven “recovery.”

    When I began publishing my post-election analysis on what I felt was a predictable Trump win, I did find anger among some activists who decided I was being “too pessimistic,” and that I should join the movement in celebration. Being that I called a Trump presidency half a year in advance based on the premise that the globalists needed a conservative scapegoat for the next phase of the ongoing financial crisis, it was hardly a moment of celebration for me.

    There is a common delusion among those that invest themselves in politics that all that is needed to reverse the course of any nation or situation is a “strong leader” with ample cheerleading from the populace. In reality, social and geopolitical disasters are usually far beyond the means of any one politician to change. Economic disasters are even more irreversible. I wish I could pretend to be optimistic, but I am rather well studied in the history of these kinds of events.

    Conservatives are especially vulnerable to the idea of a “protector on a white horse” coming to their rescue; a God-fearing hero and statesman, a general and leader of men. But, such people do not exist. There are no supermen. There are no worldly saviors. There are only common men, with common failings, destined to face extraordinary obstacles. The great men of history are not born before hand — they are forged in the crucible of crisis. Great men are not great men until proven otherwise. To assume any political leader is a great man beforehand is foolish, to say the least.

    This is why blind faith in a post-Trump renaissance is misplaced. It is something that has yet to be proven, and in the meantime, there are numerous and highly visible dangers on the horizon that demand continued vigilance and preparedness. I will examine one of these primary dangers now…

    The Growing Threat Of Civil Unrest

    As I noted in my post-election analysis, the political Left has been shell shocked by the rise of Trump and their emotional response would undoubtedly be to double down and become progressively more volatile and more violent. I predicted that this would be evident as winter broke and the cold weather subsided.

    The first signs of this are surfacing as May Day is becoming a rally date for social justice mobs bent on disrupting any agenda the Trump administration might have for enforcing immigration laws. The largest of these protests is to be held in Los Angeles, but similar protests are planned nationwide as well.

    From what we have seen from previous rallies, it would not be unfair to expect rioting in May. I say this because a tone shift in the left is taking place and extreme reactions are more frequent. The following video illustrates this clearly, I think…

    Warning – Explicit

    In case you missed it, this guy just pulled an AR-15 on someone simply because they had a MAGA flag on their truck. Not only that, but he FILMED HIMSELF doing it and and apparently posted it on social media. That is how brazen and insane these people are becoming.

    Think of it this way — could you have even imagined something like this happening during the 2012 election? It is important not to become conditioned to such behavior as being “normal.”

    To be sure, this sort of thing will not be happening in certain parts of the country. In my state of Montana, the assailant would have been shot two dozen times over by our highly armed population regardless of his politics just on the self defense principle. And frankly, I am fine with that. Citizens providing security for citizens is the American way.

    What I do have a problem with, though, is the increasing potential for an extreme response from conservatives in the face of leftist lunacy. Meaning, I worry about martial law with conservative support, which in my view is more and more likely over the next two years.

    Contrary to popular belief among tough-government champions, martial law often instigates more violence than it solves. The harsher the crackdown, the more vicious the push-back; the more vicious the push-back the more totalitarianism is rationalized by authorities. It’s a terrible cycle.

    Preparedness in terms of self defense should be self-explanatory here. During widespread mob action the rule of law is usually the first casualty, even when martial law is instituted. You also never know when some nutcase might declare you a “Trump supporter” (whether you are one or not) as he reaches for a weapon.

    It is fascinating to me the level of cognitive dissonance with some liberty activists who seem to think Trump’s first term will be anything other than pure chaos. George Soros, an elitist who often funds the very groups organizing mobs to protest Trump, said it plainly:

    “I think Trump will fail.”

     

    “What’s more Soros predicted that the market’s Trump high will soon turn into a hangover. He called Trump unpredictable and unprepared, and said that combination will end up bad for the market.”

    Soros and his globalist colleagues do not need to field guesses; they ENGINEER the outcomes that they “predict.” Social unrest at this fragile time would result in the exact market instability Soros mentioned, among other problems.

    Look, you may believe Trump is being threatened on all sides by the so-called “deep state,” or you may believe that he has willingly surrounded himself with global elitists because he is a Trojan horse. Either way, the diagnosis for the future is not rosy. It would be naive to think that the globalists would not do everything in their power to foment calamity in the near term. It would be equally naive to believe that such an agenda could be repelled through political means.

    The answer, as always, is a prepared citizenry. This can act as a deterrent as much as a measure of comfort. The more prepared the public is for any eventuality, the less affected we will be by disaster. The less affected we are by disaster, the less fearful we will be when it strikes and the less likely we will be to make stupid decisions such as throwing our support behind martial law and the wholesale erasure of the constitution. The more prepared we are, the fewer options available to the establishment when attempting to lure us into poor collective decisions.

    Prepping means freedom in the face of uncertainty, and times have never been more uncertain. To summarize: A Trump White House calls for more caution, not less.

  • Lee Stranahan: 'Ideological Coup' By Kushner-Linked Goldman Globalists Destroying Trump White House

    After Wikileaks revelations that Citigroup picked Obama’s cabinet, it appears the Trump administration is succumbing to ‘same globalism, different bank.’

    Weeks after the Daily Mail exposed an internal struggle between Kushner-linked Goldman Sachs operatives and Trump advisor Steve Bannon, it has become clear that an “ideological coup” led by globalist bankers is well underway – claiming populist Steve Bannon as their latest victim. This ties in with Roger Stone’s warning that Trump’s son-in-law Jared Kushner has been leaking anti-Bannon information to MSNBC’s Joe Scarborough.

    Well, it appears the Goldman globalists have won… for now. Wednesday evening, former Breitbart lead investigative reporter Lee Stranahan dropped an insightful Periscope video in which he laid out exactly what’s going on in the White House – pointing out who’s running the show, and imploring people to simply research the players for themselves.

    In a nutshell: Weeks after meeting with Goldman Sachs CEO Lloyd Blankfein at the Four Seasons bar in DC, Jared Kushner-friendly Goldman alums have successfully maneuvered Trump’s top advisor Steve Bannon off the Natl. Security Council – further strengthening the globalist cabal’s influence over President Trump. Jared Kushner, it should be pointed out, has a well documented history of donating to Democrats; including Hillary Clinton, Chuck Schumer (D-NY), and Robert Mendez (D-NJ).

    //platform.twitter.com/widgets.js

    Let’s look at the ex-Goldman operators within the Trump White House:

    Gary Cohn – recently Goldman’s #2, is Trump’s chief economic advisor – who was granted an unprecedented accelerated payout of $285 Million in order to go work at the White House.

    • Staunch Democrat
    • Huge globalist, led Goldman delegation to restructure Greek debt during financial crisis, helping them hide debt from EU overseers in Brussels.
    • Head of the National Economic Council as of January 20th, 2017
    • Brought in Drew Quinn – lead negotiator of TPP

     

     


    Dina Habib Powell, another top Goldman alum and former president of the Goldman Sachs foundation:

     

    Instead of draining the swamp, Goldman alums Cohn, Powell, and Treasury Secretary Mnuchin are the swamp…

    The populist, nationalist agenda that Donald Trump was elected on is getting pushed out of the White house.

     

    The fact that Powell is in (who was in the Bush administration), as a Security advisor, is deeply troubling. She’s got Ben Rhodes’ old job.

    Goldman Sachs has taken over…

    We voted for the working people who have been taken advantage of by companies like Goldman Sachs. You’ve been screwed by Goldman Sachs. Look up TARP. You didn’t vote for Goldman Sachs.

     

    We did not vote for Globalism.

    And before you say “Wait, Steve Bannon is from Goldman!” – full stop… Bannon addressed how the megabank has changed and no longer shares his values.

    What can Trump voters do?

    Stranahan has one request for any and all who oppose this ideological coup by Goldman Sachs: CALL THE WHITE HOUSE!

    See entire Periscope here:

      

    Content originally generated at iBankCoin.com * Follow on Twitter @ZeroPointNow

  • Euro Saves Germany, Slaughters the PIGS, & Feeds the BLICS

    Authored by Chris Hamilton via Econimica,

    The change in nations Core populations (25-54yr/olds) have driven economic activity for the later half of the 20th century, first upward and now downward.  The Core is the working population, the family forming population, the child bearing population, the first home buying, and the credit happy primary consumer.  Even a small increase (or contraction) in their quantity drives economic activity magnitudes beyond what the numbers would indicate.

    To highlight the linkage of Core populations to economic activity, the chart below shows the European 25-54yr/old population vs. the best indicator of economic activity, total energy consumption (data available starting from 1980).  The implications are pretty straightforward.  European economic activity (& resultant energy consumption) will contract for decades, at a minimum, with the declining Core population.  The pie is shrinking and now it’s simply a fight for who gets bigger slices.

     

    Given this, consider Germany was well aware of it’s post WWII collapsing birth rate and the impact of this on economic growth as this shrinking population of young made it’s way into the Core.  Consider Germany’s Core population peaked in 1995 and it’s domestic consumer base has been shrinking since, now down over 3.3 million potential consumers (about a 9% Core decline…remember a depression is a 10% decline in economic activity, which a 9% and growing decline in German consumers would have almost surely induced).

    GERMANY

    The chart below shows Germany’s Core population from 1950–>2040…but understand this is no guestimate through 2040.  This is simply taking the existing 0-24yr/old population (plus anticipated immigration) and sliding them into the Core through 2040.  Germany’s Core population is set to fall by over 30% or 10+ million by 2040 (far more than the 7 million Germans of all ages who died in WWII).

     

    But Germany had a plan.  With the advent of the EU and Euro just as Germany’s Core began shrinking, Germany was able to avoid the pitfalls of a shrinking domestic consumer base, circumvent the strong German currency, and effectively quadruple it’s effective export market across Europe.  German exports, as a % of GDP, have essentially doubled since the advent of the Euro (22% in ’95 to almost 50% in ’16).  The chart below highlights Germany’s shrinking Core vs. rising GDP (primarily via exports) since 1995.

     

    And this had the desired effect of turning what was a rising German debt to GDP ratio during re-integration of E. Germany into a falling ratio (chart below).

     

    So the German motivation for the EU and Euro are fairly plain as are the resultant economic transfusion from South to North.  But for Germany to be a winner, there had to be a loser in this shrinking pie game.  Hello PIGS (Portugal, Italy, Greece, Spain), you lost.  As the old poker adage goes, when you don’t know who the sucker at the table is…it’s you.  Particularly when you “win big” at first and it all seems so easy…but then it all turns.

    PIGS

    The chart below shows the PIGS Core population peaking about 15 years later than in Germany but likewise clearly rolling over.  By 2040, the PIGS Core population will be back at it’s 1960 levels…down from the 2010 peak by 17 million or about a 30% decline.

    But if we look at the PIGS combined GDP and Core population…we see a very different picture than in Germany.  The chart below shows the PIGS GDP turned down ahead of the Core population peak.  The rise in GDP in these nations was a credit bubble premised on cheap EU wide interest rates more appropriate for Germany.  Exports as a % of GDP (which were higher than Germany’s in ’95) have risen less than half of Germany’s increase (rising as a % primarily due to declining PIGS GDP).  Low German wage increases and high quality German goods helped displace PIGS domestic manufacturing base.

     

    To extend the game a bit longer (and multiply the harm), un-repayable government debt has been substituted to keep the PIGS consuming since 2007 (chart below).

     

    How it played out…

    The chart below shows the impact of the implementation of the EU and Euro on the different parties.  Clearly the PIGS were fattened up on cheap credit.  These nations became used to unsustainably fast growth and the good life, buying really nice German exports and undermining their own national brands.

     

    But then the phony PIGS growth turned to real and deep contraction (chart below).  However, the slowdown was quick and shallow for Germany and the BLICS.  French GDP likewise turned upward after a shallow contraction but did so on a large increase in debt and continuing high levels of unemployment.  Quite the opposite of the trends in Germany.

     

    The raw trade data confirms Germany’s gain against an ageing domestic population came at the expense of the PIGS.

     

    BLICS

    And just to square the circle, I need to talk a little about the BLICS (Belgium, Luxembourg, Ireland, Cayman Island, and Switzerland…yes, I understand Cayman Island is not in Europe, but bear with me as it is a British Overseas Territory).  These nations with a total population of about 24 million have been disproportionate beneficiaries of the new EU system.  These financier nations have been the biggest winners of all with huge amounts of money flowing through them (BLICS GDP below).

     

    But why would small to tiny financier nations be the greatest beneficiary of the new EU?  Untold quantities of nearly free ECB money & distortions does wonders for those who can get their hands on it.  In this respect, a peek at these nations US Treasury holdings is quite telling.  These tiny nations are now five of the top 13 foreign holders of US Treasury’s (Ireland is #3, and Cayman Island #5, Switzerland #6, Luxembourg #7, and Belgium has slipped to #13).  That these are America’s creditors is laughable really!

    I’m just guessing but the timing and size of BLICS Treasury purchases sure looks like it was front running in conjunction with the ECB’s 2011 LTRO and subsequent 2014 TLTRO?!?  The chart below shows the BLICS Treasury holdings back to 2001.  “Financialization” writ large for nations that don’t produce much of anything.

     

    In fact, since the July 2011 debt ceiling debate (debacle?!?) when Congress determined the US would never live within it’s means, it has been the BLICS that have done the heavy lifting to maintain the foreign Treasury bid while China (and cumulative BRICS) have been selling despite record dollar surplus’ (chart below).  As an aside, from ’00 through July ’11, China recycled about 50% of it’s dollar trade surplus into Treasury’s…from July ‘ll China only continues to sell Treasury’s despite record trade surplus…but luckily the BLICS stepped up just as China and the BRICS bowed out.

     

    The chart below highlights that the BLICS are now, as of January 2017, the largest holder of US Treasury debt overtaking the declining holdings of both Japan and China.

     

    Conclusion:

    As Europe’s Core population collapses (and economic activity with it), the Euro and ECB seem to be serving a select few at the expense of the majority.  The imbalances and distortions will only grow as the attempts to mask who the Euro and ECB truly serve continue.  What little vitality exists is being transfused to prop up the few.  Hope this has been thought provoking and make of this what you will.

  • Snowflakes Demand University President's Resignation After Refusal To Support "Safe Spaces"

    Snowflakes at the ultra-liberal Northern Arizona University are demanding that their President, Rita Cheng, step down today after a student asked for her opinion on ‘safe spaces’ and got a rather shocking dose of reality as a reply. 

    During a forum hosted by Cheng, NAU sophomore Breanna Kramer asked the following (per KPNX):

    “How can you promote safe spaces, if you don’t take action in situations of injustice, such as, last week, when we had the preacher on campus and he was promoting hate speech against marginalized students?  As well as, not speaking out against racist incidents like blackface two months ago by student workers followed by no reform and no repercussions?”

    And while Kramer expected a softball response from her school’s president, what she actually got was a heaping dose of ‘real life’…which, of course, immediately ‘triggered’ every snowflake within an earshot of the president’s ‘microaggression‘.

    “As a university professor, I’m not sure I have any support at all for safe space.  I think that you as a student have to develop the skills to be successful in this world and that we need to provide you with the opportunity for discourse and debate and dialogue and academic inquiry, and I’m not sure that that is correlated with the notion of safe space as I’ve seen that.”

    In the aftermath of the atrocity, NAU students took to Facebook to do what all snowflakes do when their bastions of liberalism refuse to bend to their every demand…namely, organize a protest…

    NAU

     

    Meanwhile, the mass-triggering event caused local news agencies to spring into action with a series of accusatory questions…

    Q: What does President Cheng think about the NAU SAC asking for her resignation if she doesn’t provide a safe space for all students?

     

    A: NAU is safe. Creating segregated spaces for different groups on our campus only [leads] to misunderstanding, distrust and [reduces] the opportunity for discussion and engagement and education around diversity. Our classrooms and our campus is a place for engagement and respect – a place to learn from each other.  NAU is committed to an atmosphere that is conducive to teaching and learning.

     

    Q: Does she only bring up diversity and equality on campus when it opens up the school for grant and fund eligibility?

     

    A: President Cheng has been addressing diversity and equality in her words and her actions since the day she arrived at NAU. Her leadership in advocating for our students and their success is reflected in the fact that our enrollment mirrors the diversity of our State.

     

    Q: Is she willing to sit down with NAU SAC representatives (if she hasn’t already) to hear their concerns and see what she can do to address them?

     

    A: Yes. The President is and has always been willing to meet with representatives of student groups. There were hundreds of people at Wednesday’s forum – faculty staff and students.  The few dozen who left, missed the opportunity to hear the questions of others, including several similar to theirs, and the answers that followed.

    We’ll set the over/under at 1 week for Cheng’s remaining tenure at NAU….

     

  • How To Trade The Trump-Xi Summit

    While today’s market was certainly more exciting than many had expected, first surging on the blockbuster ADP report, then plunging in the biggest intraday drop in 14 months after “some” Fed members warned stock prices are “quite high“, there is a chance that it will get even more exciting tomorrow, should either Trump or Xi utter a word “out of place” during the first summit between the two world leaders at Mar-A-Lago.

    How should traders approach tomorrow’s key risk event? Courtesy of Bloomberg’s ex-FX trader Mark Cudmore, here are some thoughts.

    With fundamental trading semi-paralyzed ahead of Thursday’s Trump-Xi meeting, it’s only prices that matter for the moment.

    • The summit between the Chinese and U.S. leaders could have profound implications, but it’s nearly impossible to have any bias going in to the meeting. There’s genuine potential for both positive and negative surprises.
    • As a result, markets are in a holding pattern as we wait to see whether risk-aversion is really ready to step it up a notch. Key levels across assets have not yet broken, with the 2.3% line in 10-year Treasury yields being the most critical.
    • The context is a global economy that’s strengthening. Excess liquidity remains in the system meaning that yield and returns will continue to be chased overall. The flip side is that there are flickers of risk-aversion in markets that are not used to volatility.
    • That environment leads to an adamantly divided market. On one side are those who cite growth and liquidity as a reason to always buy the dip. On the other, those who fear calamity, citing the idea that low volatility has induced excess leverage to chase returns and a misallocation of capital.
    • I have sympathy with both views and while trading each individual asset requires conviction, sensible risk management of a portfolio requires a more balanced perspective. I believe markets are vulnerable to a larger correction this month, but the structural macro story leads me to be bullish longer-term, so I don’t expect a sustained bear market.
    • Thursday’s high-profile meeting may not provide any concrete outcomes, but it’s likely to at least provide sufficient excuses for markets to act, even if it is on a pre-ordained path.

    Unsatisfied by Cudmore’s take? Here are some more analyst opinions on what to expect tomorrow.

    Citigroup Global Markets Asia (Ken Peng, investment strategist)

    • “It’s more a bargaining game rather than one where punishments are doled out”
    • Markets feel “comfortable” as there isn’t universal support in the Republican Party for a protectionist trade policy. Failure of the president’s health-care bill is also a factor
    • Still, hard to predict how talks will pan out

    Oanda Asia Pacific (Jeffrey Halley, senior market analyst)

    • China will strive for market stability during the talks
    • “The chances of the onshore- and offshore-traded yuan being allowed to trade materially weaker while Mr Xi is visiting the U.S. will be almost zero”

    Guotai Junan Fund Management (Guo Rui, vice president)

    • Don’t anticipate any news that will move markets
    • “The meeting will be more likely about two leaders tentatively figuring out each others’ card hands. Trump tends to be hawkish on words, but the meeting itself signals there is common ground for cooperation”

    ING (Jingyi Pan, markets strategist)

    • “The market’s imagination appears to be running wild with the possibilities of the outcome from this meeting”
    • That will likely make many stay on sidelines ahead of the meeting. “A pickup in volatility post event could nevertheless lure traders out”
    • Trump’s past colorfulness when it comes to China’s perceived transgressions means talks could go a number of ways

    ANZ (Khoon Goh, head of Asia research)

    • Still a risk U.S. could take a strong line on China in the Treasury’s semi-annual currency report
    • “Hopefully the Xi-Trump meeting will ease some of the tension”
    • Lack of concern in markets shows traders don’t expect rhetoric over China being a currency manipulator to be followed through

    Mizuho Bank (Ken Cheung, Asia currency strategist)

    • Don’t expect any kind of deal out of the talks
    • Don’t think China will be slapped with manipulator tag
    • “We’re not looking for breaking news that would change the yuan’s outlook at the summit. The meeting will be smooth as Trump has softened his stance against China”

  • Border Wall Bids Emerge; Include Everything From Tourist Attractions To Nuclear Waste Storage

    Yesterday was the deadline for companies to submit bids for Trump’s “physically imposing” yet “aesthetically pleasing” border wall between the U.S. and Mexico.  And while the U.S. government has said they won’t disclose bids, rather just the names of companies actually awarded contracts on June 1st, some of the companies decided to disclose their plans themselves.  Below are a couple of our faves…

    Gleason Partners of Las Vegas, for example, revealed its proposal to line the border wall with solar panels so that it could, among other things, sell electricity to Mexico to help pay for the wall.  Per the AP:

    The panels would provide electricity for lighting, sensors and patrol stations along the wall. Sales of electricity to utilities could cover the cost of construction in 20 years or less, according to the company. Power could also be sold to Mexico.

     

    “I like the wall to be able to pay for itself,” said managing partner Thomas Gleason.

    Border Wall

     

    Another company, Crisis Resolution Security Services, wants to turn the border wall into a massive tourist attraction with beautiful panoramic views of the desert landscapes.

    Crisis Resolution Security Services Inc. of Clarence, Illinois, proposes a wall that is 56 feet (17 meters) high and 22 feet (7 meters) wide at the top — with plenty of room to allow tourists to enjoy desert views.

     

    The height — nearly twice what the government envisions — would deter climbers, and its width would give the structure longevity, said chief executive officer Michael Hari.

    Clayton Industries had the slightly different idea of storing nuclear waste under the wall.

    Clayton Industries Inc. of Pittsburgh proposes storing nuclear waste along the wall in trenches that are at least 100 feet (30 meters) deep.

     

    Money already collected by the U.S. Department of Energy from people who benefit from nuclear power would help pay for the wall.

     

    The bid includes an option for hardware to convert the nuclear waste to energy.

    Meanwhile, a San Diego company decided to focus on the “aesthetically pleasing” component of the RFP

    Concrete Contractors Interstate of San Diego proposed a polished concrete wall augmented with stones and artifacts specific to areas on the 2,000-mile (3,218-kilometer) border.

     

    Russ Baumgartner, CEO of the company, says the wall should be “a piece of art.”

     

    Customs and Border Protection’s solicitation says the wall should be “aesthetically pleasing” from the U.S. side. Baumgartner wants to decorate both sides.

    Border Wall

     

    …while DarkPulse Technologies chose to focus on the “physically imposing” part.

    DarkPulse Technologies of Scottsdale, Arizona, proposes a concrete wall that can withstand tampering or attacks of any kind.

     

    “You could fire a tank round at it and it will take the impact,” said company founder Dennis O’Leary.

     

    Fiber sensors would be embedded in the concrete to immediately alert officials to any attempts to climb over or tunnel under the wall. It would be coated with a slick coating that would prevent climbing.

    Border Wall

     

    Finally, one snowflake organization, Otra Nation, proposed no border wall at all but rather the “world’s first shared co-nation.”

    Otra Nation, a group of U.S. and Mexican citizens, proposed the world’s first shared co-nation along the border “open to citizens of both countries and co-maintained by Mexico and the United States of America.”

     

    It would also create “nodes of cultural production” such as libraries, museums, galleries and workshops between San Diego and Tijuana, Mexico, and other spots with cities on both sides of the border.

     

    It would prohibit oil drilling and mining and create a “hyperloop transportation system” for people and cargo.

    We’re almost certain Trump will choose the Otra Nation option and just be done with this whole border wall thing.

  • Silicon Valley Survivalist Builds DIY “TsunamiBall” To Ride Out Disaster

    Authored by Mac Slavo via SHTFplan.com,

    Whenever seismic activity kicks up on the planet, earthquakes, volcanoes and tsunamis are triggered.

    Just how big, and how devastating, depends upon chance, and the build-up of pressures within the earth.

    But anyway you slice it, places like Southern California, and globally, the Ring of Fire, are in the danger zone. Many say that it’s just a matter of time.

    With that in mind, survival-minded individuals and disaster preppers have been trying to get ready, and help others get ready, too.

    That’s sort of what happened when Chris Robinson and his Silicon Valley friends and associates got into ‘sketching ideas for tsunami-proof shelters.’

    He says his boss drove home the idea, and brought it up over and over, until he came up with any idea…

    … And started building his own tsunami-proof shelter that he hoped could survive a storm of any size, and keep he and his family safe even if the vessel tumbled, or got knocked.

    As a one-man crew, Robinson went to town with simple plywood, and a lot of patience, until he came up with this fantastic DIY survival vessel, dubbed the ‘Tsunamiball’, featured on one of the best off-grid sites on the web.

    via Kirsten Dirksen:

    A couple years ago Chris Robinson was a former Facebook and PayPal art director with no boat-building (nor sailing) experience. Then the Tsunami hit Japan (a place where he’d lived and met his wife). He happened to be working in a startup incubator at the time with some “very smart people”, including an astronaut, and everyone was sketching ideas for tsunami-proof shelters.

     

    To be sure, Robinson’s house boat isn’t done, and frankly, wouldn’t survive a disaster of any magnitude in its current condition. It hasn’t even been tested on the water.

    But he hopes to use his pet project to inspire others into thinking of better designs, and improving his along the way.

    As Wired Magazine reported:

    The former Facebook and PayPal art director used Adobe Illustrator to sketch his tsunamiball plan (he asked some engineers for help calculating whether it would float). “Very early in the project it became about building this interesting object,” Robinson says. “I’m not a survivalist. I don’t even have life jackets.” He does, however, have an emotional connection to Fukushima—he met his wife there in 1991, when he lived in Japan. “Half the places we went on dates are gone,” he says. Robinson plans to finish the outer shell by May, then ocean-test the vessel if he can find a crane and truck big enough to haul it over to the Pacific. And if the sphere doesn’t sink, he’ll use Airbnb to rent the tsunamiball for tidal wave-safe overnights in Palo Alto.

    Whether it helps out in a disaster or not, the project is fascinating and breathtaking.

    In principle, it is very similar to the ‘Survival Capsule’ that SHTF reported on a little while back:

    In the wake of an extreme threat – such as a tsunami or earthquake – this capsule could be the best place to withstand the impact, no matter what.

     

    It is water-tight. It is extremely durable. It floats, and it can withstand against the impact of super-strong winds, crashes, heat and many other factors.

     

    As the London Guardian reports:

     

    This capsule, which features two small porthole windows so the occupants can see what is going on around them, was created to give individual groups and families more control of their survival in emergency situation than traditional ‘safe houses.’

     

    It is designed to float so it will never be inundated by water levels rising too high, as they do in tsunami situations.

     

    The sphere is designed to withstand the initial impact of a natural disaster, as well as sharp object penetration, heat exposure, blunt object impact, and rapid deceleration.

    How’s your plan for survival? It’s time to think one through if you don’t have one.

  • Bannon Threatened To Quit; Pence Says "Not Demotion"

    In the aftermath of today’s main political event, the removal of Steve Bannon from Trump’s National Security Council, the punditry and the public have been eager to find out if this was a voluntary transition – in Bannon’s own words “I was put on to ensure that [Susan Rice’s NSC] was de-operationalized. General McMaster has returned the NSC to its proper function” – or whether there was a behind the scenes conflict between Bannon and Trump or others in the administration – Reuters reported that Bannon’s removal from the NSC was seen as a boost to H.R. McMaster, who officials said has struggled to work together with Bannon.

    And while it will hardly provide a definitive answer, especially to skeptics, moments ago Fox News’ Martha MacCallum sat down with Vice President Mike Pence for a wide-ranging interview. Pence also addressed the major news stories of the day, where of particular interest was the discussion on the removal of Steve Bannon.

    Asked if the NSC move was a demotion for Bannon, Pence said “not for Steve, not for Ton. These are very highly valued members of our administration. They’re going to continue to play important policy roles. But I think with H.R. McMaster’s addition as our National Security Advisor – a man of extraordinary background in the military – this is just a natural evolution to ensure the National Security Council is organized in a way that best serves the president in resolving and making those difficult decisions,” Pence said.

    That, however, conflicts with what the NYT reported this evening, when the newspaper (as usual relying on “a White House official who, like others, insisted on anonymity to discuss internal deliberations”) said that “Bannon resisted the move, even threatening at one point to quit if it went forward… Bannon’s camp denied that he had threatened to resign and spent the day spreading the word that the shift was a natural evolution, not a signal of any diminution of his outsize influence.”

    His allies said privately that Mr. Bannon had been put on the principals committee to keep an eye on Mr. Trump’s first national security adviser, Michael T. Flynn, a retired three-star general who lasted just 24 days before being forced out for misleading Vice President Mike Pence and other White House officials about what he had discussed with Russia’s ambassador. With Mr. Flynn gone, these allies said, there was no need for Mr. Bannon to remain, but they noted that he had kept his security clearance.

    Of course, the whether the NYT report is trustworthy is just as pertinent.

    //platform.twitter.com/widgets.js

    Pence also said that Americans “have a right to know” details about allegations that President Obama’s National Security Adviser Susan Rice asked for the identity of Trump transition team members to be unmasked in intelligence reports.

    “Well I think the American people have a right to know what was going on. And we have every confidence that intelligence committees in the House and the Senate will get to the bottom of all of these allegations,” Pence told Fox News. Rice became the subject of ire from Trump allies earlier this week after media reports said the former Obama official requested the identities of transition team members be unmasked in reports about surveillance of foreign targets. Rice on Tuesday did not deny that she requested the unmasking of identities, but said she would not have done so for political reasons.

    Pence, when asked if Rice should testify in front of Congress, said such a decision is up to lawmakers. “But I would say the American people have a right to know if there was surveillance of any private citizen in this country,” he added in the Fox News interview.

    “And the identity of those citizens was revealed, people ought to have the right to know why. And the fact that it involved out campaign and our transition should be deeply troubling to anyone cherishes civil liberties in this country.”

    Trump, in an interview with the New York Times  earlier on Wednesday, said he thought Rice committed a crime.  “Do I think? Yes, I think.” Trump told the newspaper when asked.

    //platform.twitter.com/widgets.js

    Another pertinent topic touched upon by Pence was the alleged chemical weapons attack in Syria, which he said appears to be the work of Syrian President Bashar al-Assad’s regime, and which prompted Trump this afternoon to suggest that his Syria policy may change as a result.

    “No American can look at those images and not be heartsick,” Pence said. “It is a reflection of the failure of the past administration to both confront the mindless violence of the Assad regime and also hold Russia and Syria to account for the promises that they made to destroy chemical weapons.”

    Finally, when discussing Trump’s upcoming meeting with Chinese President Xi Jinping, Pence said he’s expecting a “productive discussion” about the U.S.-China economic relationship. He added that he expects North Korea and its burgeoning hopes of developing nuclear weapons will also be discussed.

    “As the president said this weekend, if China won’t deal with North Korea, we will,” Pence said.

Digest powered by RSS Digest

Today’s News 5th April 2017

  • Dear Statists: I Don't Care About You

    Authored by Joe Jarvis via TheDailyBell.com,

    Dear Statists,

    I don’t care about you, and would really appreciate it if you would stop “caring” about me.

    Now, you might be thinking, “Of course you don’t care about me, you’re a libertarian!” But that is not what I mean. Actually, I do tend to care about other people; I am empathetic of others and therefore advocate free markets, because the closer the globe comes to a free market, the more people are lifted out of poverty.

    But when I say I don’t care about you, what I mean is, I don’t care to force my views on you. I don’t care about you in the sense that the way you live your life doesn’t bother me as long as it doesn’t affect me. I don’t care to try to save you from yourself, and I don’t care to try to force conformity to my ideas of how a life should be lived.

    If it seems like I do care, it is only because we currently live in a society where 51% of the population decides which views will be forced on everyone.

    So I want you to stop forcing me to do things I don’t want to do, but I don’t need to convince you to join me; I don’t care what you do. You don’t have to change your ways, except by letting me change mine.

    I just want you to stop forcing me to live the way you prescribe. My views allow individuals to decide their own solutions to their own problems, so if your solution is to sell yourself into slavery, so be it. But don’t put me on the auction block as well!

    If you allowed me to live the way I want, it would not affect you negatively in the least! In fact, you probably wouldn’t even notice. I don’t need all of society to change, I just need to be freed from your societal chains.

    And no, I am not talking about America in particular, so I can’t just move to another country and live how I want to live. That would be like if you were forcing me to eat at Applebee’s, and I described in detail the unique and healthy dinner I would rather have, and you said, “if you don’t want to eat at Applebee’s, go to another restaurant!”

    The point is I don’t want to eat at any restaurant! I just want to make my own dinner, with my own ingredients that I choose to grow or buy from whomever I wish. But I won’t force you to eat my dinner; you can stay at Applebee’s for all I care! And none of this hurts you, (unless of course, your goal is to force me to fund restaurants.)

    Society will be civilized when you let me do my thing. And I won’t force you to do my thing either. I will be perfectly happy doing my own thing, and if you all still want a government for whatever reason, you can go ahead and do that. Just don’t force me into your club. Don’t initiate violence towards me for not wishing to be involved.

    And if you think this is already an option for me, you are naive and misguided; I would be arrested for committing (victimless) crimes, breaking regulations (that protect me from myself), and not paying taxes.

    You may think I should still be forced to pay taxes, because of the “benefits” I will still be getting from the government. But America doesn’t tax foreigners on vacation to pay for the roads, America is content with the money tourists will pour into the economy while here, in addition to the sales and other taxes they will pay during the visit. The same would happen if I went into your government’s territory.

    But to force me to continue paying taxes, while not using government services, would not be allowing me to go my separate way; I would still be forced to fund your government, which would place an extra burden on my own self governance, as well as force me to convert labor into fiat dollars, which I would not otherwise do. To force a man to fund something which he does not want or use is to admit that you view him as a slave.

    Any of those things would impose extra burdens on me, even if the government goods and services I pay for were forced on me. On the other hand, my opting-out of the system does not impose any extra burdens on the society I am leaving.

    So please, do not join me if you do not wish, and think me crazy and my ideas ludicrous if you must. But in doing so, please do not force me to consort with you or fund your government, and please do not initiate violence against me for doing things which do not harm anyone.

    I will be the first to admit that this agreement is null and void as soon as my activities cause harm, as would be the case with dumping chemicals in rivers, or burning toxic waste. But I think you will find my own desire for healthy living severely restricts the likelihood of that ever happening.

    I promise not to care what you do, if you promise not to care what I do.

    Sincerely,

    Joe Jarvis

    P.S. If you are a Californian statist, I fully support your state going it’s separate way! You shouldn’t be forced into the American club against your will, and should be left alone when you choose to exit. Live and let live.

  • WSJ reports that Susan Rice Was Not Alone In "Unmasking" Team Trump

    As part of its daily wrap of the Susan Rice newsflow, which focused on her first media appearance since she was “outed” as the persona responsible for “unmasking” members of team Trump, the WSJ provides two new pieces of incremental information: i) in addition to Michael Flynn, at least one more member of the Trump transition team was “unmasked” in intelligence reports due to multiple foreign conversations that weren’t related to Russia; and ii) Rice wasn’t the administration official who instigated Mr. Flynn’s unmasking, confirming there is at least one more high-level official giving “unmasking” orders.

    But first, a brief detour.

    “Unmasking” is a term used when the identity of a U.S. citizen or lawful resident is revealed in classified intelligence reports. Normally, when government officials receive intelligence reports, the names of American citizens are redacted to protect their privacy. But officials can request that names, listed as “U.S. Person 1,” for example, be unmasked internally in order to give context about the potential value of the intelligence. Unmasking is justified for national security reasons but is governed by strict rules across the U.S. intelligence apparatus that make it illegal to pursue for political reasons or to leak classified information generated by the process.

    It is the accusation that Rice unmasked members for purely political reasons – ostensibly in coordination with president Obama – that has gotten Republican smelling blood in the water.  Republicans have for weeks signaled that they saw unmasking as the key to investigating the source of media leaks damaging to the Trump administration — such as the exposure of former Trump national security adviser Michael Flynn, who was forced to resign in February after media reports revealed that he misled Vice President Pence about the contents of his discussions with the Russian ambassador.

    To that end, earlier this month, Rep. Trey Gowdy (R-S.C.) pressed FBI Director James Comey in a public Intelligence Committee hearing: “It would be nice to know the universe of people who have the power to unmask a U.S. citizen’s name… because that might provide something of a roadmap to investigate who might’ve actually disseminated a masked U.S. citizen’s name.”

    He went on to press Comey on whether specific Obama officials, including Rice, would have had the authority to request that a name be unmasked. “Yes, in general, and any other national security adviser would, I think, as a matter of their ordinary course of their business,” Comey answered.

    Shortly thereafter, The Hill notes Nunes made his shocking announcement that he — and he alone — had viewed documents that showed inappropriate unmasking by Obama-era officials.

    Today, Susan Rice came out to defend herself and told MSNBC that “the allegation is that somehow, Obama administration officials utilized intelligence for political purposes,” Rice told Mitchell. “That’s absolutely false.”

    She added that “The notion, which some people are trying to suggest, that by asking for the identity of the American person is the same is leaking it — that’s completely false. There is no equivalence between so-called unmasking and leaking.”

    And yet, that is precisely what many republicans are suggesting because otherwise there is no explanation for how the WaPo and NYT received, on a virtual silver platter, stories about Mike Flynn’s communications with intel-level detail.

    Perhaps Rice is simply lying as she lied on March 22 when in a PBS interview she said “I know nothing” about unmasking Trump officials. Less than two weeks later, we learn that she did.

    But perhaps there is more to the story than what we know so far.

    * * *

    And this is where the WSJ comes in, with the new info that according to a Republican official familiar with deliberations by GOP lawmakers on the House Intelligence Committee said that the names of two U.S. citizens who were part of Mr. Trump’s transition team have been unmasked in intelligence reports. One is Mr. Flynn and the other hasn’t been identified. The report involving Mr. Flynn documented phone conversations he had in late December with the Russian ambassador to the U.S.

    The WSJ then reports that Rice had requested the unmasking of at least one
    transition official — not Mr. Flynn —
    who was part of multiple foreign
    conversations that weren’t related to Russia.

    And the punchline: “The Republican official and others said Ms. Rice wasn’t the administration official who instigated Mr. Flynn’s unmasking.

    In other words, the story that Susan Rice is the unmasker is incomplete as there is at least one more person exposing the identities of people in Trump’s circle, and that the NSA and other intel agencies have been surveiling, accidentally or otherwise,  at least one, so far unnamed individual, from Trump’s circle. It may well be someone that the WaPo and NYT have already published about, or it may be someone who has yet to hit the newswire, delivering the latest twist of the ongoing intelligence-fed news cycle.

    For now the answer is unknown, although when Rice testifies under oath before the House Intel Committee, we hope that all outstanding questions will finally get answers.

  • "We Have A Serious Problem": For Jamie Dimon, This Is The Most Troubling Chart About The US Economy

    As discussed earlier, Jamie Dimon’s annual letter this year was a departure from his usual optimistic sermons about the state of nation, dedicating an entire section in the 45 page letter to  describe that “something is wrong” with the US. And of all the items mentions, the following aspect of the US economy is what was most troubling to the JPM CEO. Not surprisingly, it deals with two of the biggest threats facing the US currently: demographics and labor, and shows the at least in one key economic metric, the US is now the worst among the entire universe of developed countries.

    This is what Dimon said:

    Labor force participation in the United States has gone from 66% to 63% between 2008 and today. Some of the reasons for this decline are understandable and aren’t too worrisome – for example, an aging  population. But if you examine the data more closely and focus just on labor force participation for one key segment; i.e., men ages 25-54, you’ll see that we have a serious problem. The chart below shows that in America, the participation rate for that cohort has gone from 96% in 1968 to a little over 88% today. This is way below labor force participation in almost every other developed nation.

     

     

    If the work participation rate for this group went back to just 93% – the current average for the other developed nations – approximately 10 million more people would be working in the United States. Some other highly disturbing facts include: Fifty-seven percent of these non-working males are on disability, and fully 71% of today’s youth (ages 17–24) are ineligible for the military due to a lack of proper education (basic reading or writing skills) or health issues (often obesity or diabetes).

    Incidentally, Dimon’s key concern was initially flagged here back in 2013 and most recently, last summer. For the remainder of the US economic problems listed by Dimon, please refer to the original article.

  • The Next Subprime Crisis Is Here: 12 Signs That The US Auto Industry's Day Of Reckoning Has Arrived

    Authored by Michael Snyder via The Economic Collapse blog,

    In 2008, subprime mortgages almost single-handedly took down the entire financial system, and now a new subprime crisis is here. 

    In recent years, the auto industry has been able to boost sales by aggressively pushing people into auto loans that they cannot afford.  In particular, auto loans made to consumers with subprime credit have been accounting for an increasingly larger percentage of the market.  Unfortunately, when you make loans to people that should not be getting them, eventually a lot of those loans are going to start to go bad, and that is precisely what is happening now.  Meanwhile, automakers and dealers are starting to panic as sales have begun to fall and used car prices have started to crash.  If you work in the auto industry, you might remember how horrible the last recession was, and this new downturn could eventually turn out to be even worse.  The following are 12 signs that a day of reckoning has arrived for the U.S. auto industry…

    #1 Seven out of the eight largest automakers in the United States fell short of their sales projections in March.

    #2 Overall, U.S. auto sales so far in 2017 have been described as a “disaster” despite record spending on consumer incentives by automakers.

    #3 Dealer inventories are now at the highest level that we have seen since the last financial crisis.  Why this is so troubling is because there are a whole lot of unsold vehicles just sitting there doing nothing, and this is becoming a major financial problem for many dealers.

    #4 It now takes an average of 74 days before a dealer is able to sell a new vehicle.  This number is also the highest that it has been since the last financial crisis.

    #5 Not only is Ford projecting that sales will fall this year, they are also projecting that sales will fall in 2018 as well.

    #6 Used vehicle prices are already starting to decline dramatically

    The used-vehicle price index from the National Automobile Dealers Association posted a 3.8% decline in February compared to the prior month. NADA also said wholesale prices fell 1.6%.

    #7 As I discussed yesterday, Morgan Stanley is projecting that used car prices “could crash by up to 50%” over the next four or five years.

    #8 Right now, more than a million Americans are behind on their payments on their auto loans.  This is something that has not happened since the last financial crisis.

    #9 In 2017, U.S. consumers are more “underwater” on their auto loans than they have ever been before.

    #10 Subprime auto loan losses have soared to their highest level since the last financial crisis, and the delinquency rate on those loans has risen to the highest level that we have seen since the last financial crisis.  By now, I am sure that you are starting to notice a pattern in these data points.

    #11 At this moment, approximately $200,000,000,000 has been loaned out by auto lenders to consumers with subprime credit.

    #12 Just like with subprime mortgages in the run up to the last financial crisis, subprime auto loans have been bundled together and sold as “securities” to investors.  And just like last time around, this has turned out to be a recipe for disaster

    Many auto loans, including those considered subprime, are securitized and sold to investors. But Morgan Stanley recently reported that the share of auto securities tied to “deep subprime” loans – those given to borrowers with a FICO credit score below 550 — has risen from 5.1 percent in 2010 to 32.5 percent today. It said defaults on those bonds have risen significantly in the past five years.

     

    Almost a quarter of the more than $1.1 trillion in U.S. auto loan debt is owed by subprime borrowers, and delinquency rates have hit their highest point in seven years.

    In the old days, you could always count on the U.S. auto industry to bounce back eventually because of the economic strength of average U.S. consumers.

    Unfortunately, the middle class in America is being systematically hollowed out by long-term economic trends that our leaders in Washington D.C. have consistently ignored.

    We have become a nation of economic extremes.  There are more millionaires in this country than ever before, but meanwhile poverty is exploding in communities all over the country.

    If you live in a prosperous area, things may be going great where you live for the moment.  But as Gallup has discovered, an all-time record high percentage of Americans are worrying “a great deal” about hunger and homelessness these days…

    Over the past two years, an average of 67% of lower-income U.S. adults, up from 51% from 2010-2011, have worried “a great deal” about the problem of hunger and homelessness in the country. Concern has also increased among middle- and upper-income Americans, but they still worry far less than do lower-income Americans.

    You may have plenty of money in your bank account, and so for you hunger and homelessness are not very big issues.  But for those that are just scraping by from month to month, having enough food and a place to sleep at night are top priorities.  Here is more from Gallup

    Americans at all income levels are expressing greater concern about hunger and homelessness, and it is the top worry among lower-income Americans, who are most likely to struggle to pay for adequate food and housing.

    In addition to the woes of the auto industry, the retail industry is going through the worst wave of store closings in modern American history, pension funds are melting down all over the nation, and stocks are primed for a crash of epic proportionsThings are lining up just right for the kind of scenario that I laid out in The Beginning Of The End, but unfortunately most people are not listening to the warnings.

    The same thing happened just before the great financial crisis of 2008.  All of the warning signs were there well in advance, and many of the experts were warning about what was coming as early as 2005.  But because it did not happen immediately, a lot of people greatly mocked the warnings.

    But then the fall of 2008 arrived and all of the mockers suddenly went silent.

    As you can see from the numbers that I shared above, a new crisis has already arrived.

    The only question now is how bad it will ultimately turn out to be.

    As always, let us hope for the best, but let us also get prepared for the worst.

  • When Government Evil Triumphs, Freedom Falls

    Authored by John Whitehead via The Rutherford Institute,

    “Government is said to be a necessary evil. The saying appears to be without merit. For can anything be at once necessary and evil? True, all governments have had a history of evil-doing, more or less. However, it does not follow from this experience that their good is indistinguishable from their evil. Governments—assuming a proper limitation of their activities—are necessary and not evil. Their evil begins when they step out of bounds.—Economist Leonard Read

    It is often said that if America ever ceases to be good, she will cease to be great.

    Unfortunately, the American government has been the opposite of good for too long now.

    In fact, the American government has been very, very, very bad: so bad, in fact, as to be almost indistinguishable at times from the evil it claims to be fighting, whether that evil takes the form of terrorism, torture, drug trafficking, sex trafficking, murder, violence, theft, pornography, scientific experimentations or some other diabolical means of inflicting pain, suffering and servitude on humanity.

    Philosopher Susan Neiman suggests that referring to something as “evil is a way of marking the fact that it shatters our trust in the world.”

    It’s an apt description for a government that keeps violating the sacred trust of its citizenry.

    “We the people” should have learned early on that a government that repeatedly lies, cheats, steals, spies, kills, maims, enslaves, breaks the laws, overreaches its authority, and abuses its power at almost every turn can’t be trusted.

    We haven’t learned.

    We didn’t learn this lesson under George W. Bush. We didn’t learn it under Barack Obama. Although it has become fashionable among the media elite to blame the Trump Administration for all that is wrong with the country, where Americans go wrong is in becoming so fixated on a particular politician that they fail to understand that the fault rests with the Government: the permanent, entrenched Deep State that continues to call the shots in the halls of power.

    Indeed, the evils perpetrated by the U.S. government have been going on for some time now.

    Consider just a few of the ways in which the government—in a misguided, ill-conceived, flawed, bureaucratic and downright Orwellian attempt to fight evil with evil—continues to inflict evil on the citizenry.

    Peddling child pornography to catch child porn consumers: As part of an effort to crack down on child porn consumers and traffickers, for two weeks in 2015, the FBI secretly hijacked a child porn website, improved the technical functionality of the site, and uploaded tens of thousands of images of child pornography to the site. In doing so, the government not only became the largest distributor of child pornography, but it also became the largest exploiter of children. All told, the FBI was accused of hosting an estimated 22,000 images, videos and links of child pornography that more than 100,000 people accessed.

    This is what Douglas Anderson, chair of the University of North Texas' philosophy and religion department, refers to as a cost-benefit analysis. In this instance, the government weighed the cost of inflicting damage on innocent children who were being victimized and preyed upon against the benefits of catching people who download child porn. “It’s a moral conundrum for anyone who takes the view that we are committed to protecting them in all ways,” Anderson said in an interview with the Dallas Morning News. “They're weighing it against these kids’ lives. World opinion says we have a basic duty to protect children. You’d have to have something pretty overwhelming to offset damaging more people. It would have to be awfully extreme to allow even one child to be harmed.”

    Incredibly, after going to such morally questionable depths to catch child porn consumers, the government chose to drop its case rather than be forced to reveal the surveillance and hacking tools it used to set its trap.

    Trafficking weapons to catch drug traffickers. They referred to it as Operation Fast and Furious: a 15-month sting operation carried out by the Bureau of Alcohol, Tobacco, Firearms and Explosives aimed at dismantling Mexican drug cartels and disrupting drug trafficking routes within the United States. Only it didn’t quite work out that way. As the National Review reports, “Under ‘Operation Fast & Furious,’ the U.S. government became a de facto arms dealer to Mexican drug cartels and Islamist criminals.”

    The concept was straight-forward enough: the U.S. government allowed gun sellers and informants to sell approximately 2,000 weapons to gun traffickers in the hopes that the weapons would be tracked to the drug cartels, which would then be targeted and disrupted. Although it appears that the weapons did make it into the hands of the drug cartels, government agents lost track of an estimated 1,400 weapons, many of which were linked to crimes, including the fatal shooting of a Border Patrol agent in 2010.

    Dealing drugs to catch drug dealers. Taking advantage of federal and state asset forfeiture laws that allow police to seize and keep money if they suspect it may be related to criminal activities, law enforcement agencies have been raking in millions of dollars in entrapment schemes in which they sell cocaine to drug users and then bust them for buying it, or lure big-city drug dealers to suburban towns with promises of big sales and then bust them in the act.

    As the Sun Sentinel reports:

    Police in this suburban town best known for its sprawling outlet mall have hit upon a surefire way to make millions. They sell cocaine. Undercover detectives and their army of informants lure big-money drug buyers into the city from across the United States, and from as far north as Canada and as far south as Peru. They negotiate the sale of kilos of cocaine in popular family restaurants, then bust the buyers and seize their cash and cars. Police confiscate millions from these deals, money that fuels huge overtime payments for the undercover officers who conduct the drug stings and cash rewards for the confidential informants who help detectives entice faraway buyers… Undercover officers tempt these distant buyers with special discounts, even offering cocaine on consignment and the keys to cars with hidden compartments for easy transport. In some deals, they’ve provided rides and directions to these strangers… Many of the drug negotiations and busts have taken place at restaurants around the city’s main attraction, Sawgrass Mills mall, including such everyday dining spots as TGI Fridays, Panera Bread and the Don Pan International Bakery.

    Fighting wars abroad by fueling wars abroad. The United States, the world’s largest exporter of arms, has been selling violence to the world for too long now. Controlling more than 50 percent of the global weaponry market, the U.S. has sold or donated weapons to at least 96 countries in the past five years, including the Middle East.

    Some of these weapons inevitably end up in our enemies’ hands, as well as those of terrorists. For instance, the Pentagon’s efforts to train Syrian fighters ended with most of the infantrymen voluntarily surrendering their U.S.-provided equipment to extremist groups. These weapons—precision guided weapons or smart bombs, cluster bombs, and depleted uranium shells, among others—are also responsible for the deaths of innocent civilians in Yemen, Syria and elsewhere.

    As Mother Jones reports:

    Arms deals are a way of life in Washington. From the president on down, significant parts of the government are intent on ensuring that American arms will flood the global market and companies like Lockheed and Boeing will live the good life. From the president on his trips abroad to visit allied world leaders to the secretaries of state and defense to the staffs of US embassies, American officials regularly act as salespeople for the arms firms. And the Pentagon is their enabler. From brokering, facilitating, and literally banking the money from arms deals to transferring weapons to favored allies on the taxpayers' dime, it is in essence the world's largest arms dealer.

    Creating terrorists in order to snare terrorists. The FBI has a long, sordid history of inventing crimes, breeding criminals and helping to hatch and then foil terrorist plots in order to advance its own sordid agenda: namely, amassing greater powers under the guise of fighting the war on terrorism.

    Investigative journalist Trevor Aaronson argues convincingly that “the FBI is much better at creating terrorists than it is at catching terrorists.” According to Aaronson’s calculations, the FBI is responsible for more terrorism plots in the United States than al Qaeda, al Shabaab and the Islamic State combined.

    One of the government’s tactics involves radicalizing impressionable young men in order to create and then “catch” terrorists. Under the guise of rooting out terrorists before they strike, the FBI targets mentally ill or impressionable individuals (many of whom are young and have no prior connection to terrorism), indoctrinates them with anti-American propaganda, pays criminals $100,000 per case to act as informants and help these would-be terrorists formulate terror plots against American targets, provides them with weapons and training, and then arrests them for being would-be terrorists. This is entrapment, plain and simple, or what former FBI director Robert Mueller referred to as a policy of “forward leaning – preventative – prosecutions.”

    Spreading disease in order to cure disease. For years, the American government conducted secret experiments on an unsuspecting populace—citizens and noncitizens alike—making healthy people sick by spraying them with chemicals, injecting them with infectious diseases and exposing them to airborne toxins. The government reasoned that it was legitimate to experiment on people who did not have full rights in society such as prisoners, mental patients, and poor blacks.

    The mindset driving these programs has, appropriately, been likened to the unethical experiments carried out by Nazi doctors. In Alabama, for example, 600 black men with syphilis were allowed to suffer without proper medical treatment in order to study the natural progression of untreated syphilis. In Connecticut, mental patients were injected with hepatitis. In Maryland, sleeping prisoners had a pandemic flu virus sprayed up their noses. In Georgia, two dozen “volunteering” prison inmates had gonorrhea bacteria pumped directly into their urinary tracts through the penis. In Michigan, male patients at an insane asylum were exposed to the flu after first being injected with an experimental flu vaccine. In Minnesota, 11 public service employee “volunteers” were injected with malaria, then starved for five days. In New York, dying patients had cancer cells introduced into their systems. And in Staten Island, children with mental retardation were given hepatitis orally and by injection to see if they could then be cured.

    These incidents are just the tip of the iceberg when it comes to the atrocities the government has inflicted on an unsuspecting populace in the name of secret experimentation. For instance, there was the U.S. military’s secret race-based testing of mustard gas on more than 60,000 enlisted men. And then there was the CIA’s MKULTRA program in which hundreds of unsuspecting American civilians and military personnel were dosed with LSD, some having the hallucinogenic drug slipped into their drinks at the beach, in city bars, at restaurants.

    Are you starting to notice a pattern here?

    For too long now, the American people have been persuaded to barter their freedoms for phantom promises of security and, in the process, have rationalized turning a blind eye to all manner of government wrongdoing—asset forfeiture schemes, corruption, surveillance, endless wars, SWAT team raids, militarized police, profit-driven private prisons, and so on—because they were the so-called lesser of two evils.

    No matter how you rationalize it, the lesser of two evils is still evil.

    There’s a scene in The Third Man, Carol Reed’s influential 1949 film starring Joseph Cotten and Orson Welles in which a rogue war profiteer (Harry Lime) views human carnage with a callous indifference, unconcerned that the diluted penicillin he’s been trafficking underground has resulted in the tortured deaths of young children.

    Challenged by his old friend Holly Martins to consider the consequences of his actions, Lime responds, “In these days, old man, nobody thinks in terms of human beings. Governments don’t, so why should we?”

    “Have you ever seen any of your victims?” asks Martins.

    “Victims?” responds Lime, as he looks down from the top of a Ferris wheel onto a populace reduced to mere dots on the ground. “Look down there. Tell me. Would you really feel any pity if one of those dots stopped moving forever? If I offered you twenty thousand pounds for every dot that stopped, would you really, old man, tell me to keep my money, or would you calculate how many dots you could afford to spare?”

    Lime’s callous indifference is no different from the U.S. government’s calculating cost-benefit analyses. After all, to the government, “we the people” are little more than faceless numbers, statistics and economic units to be bought, sold, bartered, traded, tracked, tortured, spied upon, caged like animals, treated like slaves, experimented upon, and then discarded and left to suffer from the after-effects.

    As John Lennon summed it up, “We’re being run by maniacs for maniacal ends.”

    Is the government evil? You tell me.

    The same government that laced the fog over San Francisco with bioweapons, sprayed bacteria from Navy ships off the coast of Norfolk and San Francisco, exposing all of the city’s 800,000 residents, and staged “mock” anthrax attacks covering territory as wide-ranging as Ohio to Texas and Michigan to Kansas has also taken every bit of technology sold to us as being in our best interests—GPS devices, surveillance, nonlethal weapons, behavioral methods, etc.—and used it against us, to track, control and trap us.

    The same government that propelled us into endless oil-fueled wars and military occupations in the Middle East that wreaked havoc on our economy, stretched thin our military resources and subjected us to horrific blowback has also turned America into a battlefield, transforming law enforcement agencies into extensions of the military, conducting military drills on domestic soil, distributing “free” military equipment and weaponry to local police, and desensitizing Americans to the menace of the police state with active shooter drills, color-coded terror alerts, and randomly conducted security checkpoints at “soft” targets such as shopping malls and sports arenas.

    Likewise, the same government that—as part of its so-called “war on terror”—passed laws subjecting us to all manner of invasive searches and surveillance, censoring our speech and stifling our expression, rendering us anti-government extremists for daring to disagree with its dictates, locking us up for criticizing government policies on social media, encouraging Americans to spy and snitch on their fellow citizens, and allowing government agents to grope, strip, search, taser, shoot and kill us has also—in a so-called effort to keep the schools safe— locked down the schools by installing metal detectors and surveillance cameras, adopting zero tolerance policies that punish childish behavior as harshly as criminal actions, and teaching our young people that they have no rights, that being force-fed facts is education rather than indoctrination, that they are not to question governmental authority, that they must meekly accept a life of censorship, round-the-clock surveillance, roadside blood draws, SWAT team raids and other indignities.

    How can you ever trust the government again?

    As I make clear in my book Battlefield America: The War on the American People, you shouldn’t have trusted the government in the first place. It was Thomas Jefferson who warned, “In questions of power then, let no more be heard of confidence in man, but bind him down from mischief by the chains of the Constitution.”

    Unfortunately, as Carl Sagan recognized, “If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It’s simply too painful to acknowledge, even to ourselves, that we’ve been taken. Once you give a charlatan power over you, you almost never get it back.”

    How do you fight evil? Start by recognizing it. Talk about it. Refuse to play politics with your principles. Don’t settle for the lesser of two evils. Stop being apathetic.

    As British statesman Edmund Burke warned, “The only thing necessary for the triumph of evil is for good men [and women] to do nothing.”

  • Visualizing How Much State Debt Rests On Your Shoulders?

    How much state debt is there per person, and, as Visual Capitalist's Jeff Desjardins asks, why is there such a wide discrepancy between states like Massachusetts ($11,000 per person) and Nebraska ($1,000 per person)?

    THE SNOWBALL OF STATE DEBT

    Today’s infographic from HowMuch.net, a cost information site, organizes states by debt per capita using a snowball-like effect.

    Courtesy of: Visual Capitalist

     

    The five states at the center of the snowball with the highest debt per capita are Massachusetts ($11,000), Connecticut ($9,200), Rhode Island ($8,900), Alaska ($8,200), and New Jersey ($7,400).

    On the other end of the spectrum are the five states with the lowest state debt per capita: Tennessee ($900), Nebraska ($1,000), Nevada ($1,200), Georgia ($1,300), and Arkansas ($1,500).

    While it is reasonable to expect big differences in debt per capita between countries, seeing an interstate difference of up to 10x per person seems a bit perplexing at face value. Let’s see if we can dig a little deeper on what accounts for these differences.

    THE CURIOUS CASE OF MASSACHUSETTS

    Currently, Massachusetts holds the title of the highest state debt per capita, as well as ranking #2 in terms of state debt as a percentage of GDP (14.0%). It’s also worth noting that debt analysts at S&P have recently lowered the outlook on state bonds from stable to negative.

    Meanwhile, The Mercatus Center ranked Massachusetts in 49th place in their 2016 State Fiscal Rankings. (The only state to fare worse was Connecticut.)

    Mercatus snapshot for Massachusetts

    Like other old and urban states, Massachusetts requires significant investments to repair aging roads, schools, and other infrastructure. For many fiscal analysts, however, it is the gap in unfunded liabilities that is the long-term concern.

    Forbes notes that unfunded liabilities from public pensions are probably the biggest fiscal problem facing state governments today, and Massachusetts is no exception. Unfunded liabilities in the state are pegged at $94.45 billion with other postemployment benefits (OPEB) at $15.38 billion, and eventually these are issues that will have to be dealt with.

    HEALTHIER BUDGETS

    What does a healthier state budget look like? The best examples can be found in the Midwest.

    Here’s Nebraska, which has about $1,000 of debt per person:

    Mercatus snapshot for Nebraska

    Nebraska exhibits strong fiscal health across all categories. On a cash basis, Nebraska has between 3.81 and 5.02 times the cash needed to cover short-term liabilities. Revenues exceed expenses by 7 percent, producing a surplus of $294 per capita.

     

    – Mercatus Center at George Mason University

     

  • House Intel Panel Wants Susan Rice To Testify

    If former National Security Advisor Susan Rice though she could get away from the current furore over the Trump “unmasking” scandal with just one MSNBC interview in which Andrea Mitchell did not even ask her why she lied two weeks ago to PBS, she will be disappointed because the House Intelligence Committee has officially asked Susan Rice to testify, supposedly under oath.

    As the WSJ reports, citing two officials familiar with the matter, Rice who served as national security adviser under former President Barack Obama, is on a list of witnesses drawn up by the committee as part of its probe. House Republicans and Democrats have agreed upon a preliminary list of about 30 witnesses that officials say will be expanded as needed. Formal requests to testify haven’t been sent yet by the committee to the witnesses.

    As everyone knows by now, the White House and Rep. Devin Nunes (R., Calif.), the House panel’s chairman, have charged the Obama administration improperly used surveillance information that included “unmasking” the names of Trump transition team members for political gain ahead of handing over the White House.

    Earlier on Tuesday, speaking to MSNBC, Rice said she didn’t use intelligence about Mr. Trump’s associates for political purposes and said she didn’t leak anything regarding her successor, Mike Flynn. In the television interview, she also described requests to unmask the identities of Americans mentioned in intelligence reports as necessary to do her job and entirely different than leaking classified information.

    “The notion, which some people are trying to suggest, that by asking for the identity of an American person, that is the same as leaking it, is completely false,” Ms. Rice said on MSNBC. “There’s no equivalence between so-called unmasking and leaking. The effort to ask for the identity of the American citizen is necessary to understand the importance of an intelligence report in some instances.”

    However, she declined to comment on whether she had made such requests with respect to people associated with Trump who may have been mentioned in intelligence reports. She was also not asked why she lied in an interview two weeks ago on PBS in which she said she had no information about any “unmasking.”

    A Republican official familiar with deliberations by GOP lawmakers on the House Intelligence Committee said the names of two U.S. citizens who were part of the Trump transition team have been unmasked in intelligence reports. One is Mr. Flynn and the other hasn’t been identified, said the official, adding that this person appeared in a report that had nothing to do with Russia, unlike the report featuring Mr. Flynn, which documented phone conversations he had in late December with the Russian ambassador to the U.S.

     

    Flynn was forced to resign after misleading White House officials and Vice President Mike Pence about the nature of those conversations, which current and former officials said concerned the possible easing of Obama-era sanctions on Russia. The existence of those conversations was leaked to the media in January, almost exclusively to the WaPo and NYT.

    The question is who did the leaking.

    The Republican official and others said Rice wasn’t the administration official who instigated Flynn’s unmasking. Rice acknowledged in her televised interview Tuesday that she requested names of Americans be unmasked in intelligence files. But she refused to comment about whether she sought the unmasking of any Trump transition members.

    “The additional unmasking of an American is a disaster,” the Republican official said. “There was no reason to unmask that name.”

    Rice said in the MSNBC interview that she couldn’t get into which names were unmasked in specific reports. “I don’t know what Devin Nunes reviewed at the White House,” she said. “What I can say is that  there is an established process for senior national security officials to ask for the identity of U.S. persons in these reports.” Rice also said she didn’t know what reports were being referred to “by those who are putting out this story.” 

    “I don’t know what time frame they were from, I don’t know the subject matter, and I don’t know who they think was collected upon,” she said.

    Rice also said she didn’t leak the name of Mr. Flynn.  “I leaked nothing to nobody and never have and never would,” Rice said.

    //platform.twitter.com/widgets.js

    The process of unmasking, like many actions within the U.S. intelligence apparatus, is highly secretive and contentious because they themselves are classified and revealing them publicly could be a crime.

    And while Susan Rice may not have “known” much in her MSNBC interview, she will have to come up with answers during her sworn testimony.

    At which point the only question on everyone’s lips will be: will she plead the Fifth?

  • Paul Craig Roberts On The Real Russiagate: "Obama's Stasi State"

    Authored by Michael Hudson and Paul Craig Roberts,

    Mike Whitney has written an excellent expose of the “Russiagate” cover story for Obama’s political use of national security to help his party oppose Republicans. 

    Covert surveillance of politicians on Obama’s Nixon-like “Enemies List” has been going on for many years, but is only now being unmasked as a result of the failure of Obama’s cover story–“We weren’t spying on political opponents; only on Russians to protect America.”

    The presstitute media has passed on the cover story authored by former Obama-administration officials led by CIA director John Brennan, FBI director James Comey, the DNC, and Democratic Rep. Adam Schiff. The loose ends in this cover-up have now been so widely exposed as hearsay and political that only 13% of Republicans believe the fact-free story – but 67% of Democrats cling to it.

    Whitney reports that Comey began the investigation in July 2016. As of last Friday (March 31, 2017) not a scrap of evidence has turned up. This did not deter Comey from telling Congress that Putin “hated Secretary Clinton so much that the flip side of that coin was that he had a clear preference for the person running against the person he hated so much.” So the Russians allegedly “engaged in a multifaceted campaign to undermine our democracy.”

    Comey based this conclusion on what has become a hilarious bit of gullibililty.

    The Russians, he said “were unusually loud in their intervention. It’s almost as if they didn’t care that we knew, that they wanted us to see what they were doing.

    Alternatively, someone wanted investigators to infer that the Russians were doing the hacking. As Wikeleaks Vault 7 releases prove, the CIA can hack computers and leave anyone else’s signature. Due to poor security, the CIA’s cybertechnology ended up in the Internet domain.

    “They’ll be back. They’ll be back, in 2020. They may be back in 2018,” warned Mr. Comey. But who is the “they”? “They” seem to be “us,” or at least what numerous former national security officials have suggested: either the NSC, CIA or its “Five Eyes” partner, British MI6.

    Wall Street Journal editorialist Kimberley A. Strassel poses the real question: Why hasn’t the Trump administration had the Secret Service to arrest Comey, Brennan, Schiff, the DNC and Hillary for trying to overthrow the President of the United States?

    “Mr. Nunes has said he has seen proof that the Obama White House surveilled the incoming administration—on subjects that had nothing to do with Russia—and that it further unmasked (identified by name) transition officials. This goes far beyond a mere scandal. It’s a potential crime.

    What we are watching is turning out to be traces of a plot against a government elected by the American people. Attempts to get at the truth by House national security committee Chairman Devin Nunes have been countered with demands by Democrats to recuse himself so as to stop his exposé of how “Team Obama was spying broadly on the incoming administration.”

    It seems that this has been going on for many years now. Former Rep. Dennis Kucinich has dropped a bombshell about what appears to be his own illegal surveillance under Obama’s NSC.

    “When the president raised the question of wiretapping on his phones in Trump Tower, he was challenged to prove that such a thing could happen. It happened to me.

    Here’s what happened, which was revealed two years after he left office in 2013 when the Democrats were overjoyed to see Ohio Republicans redraw the election district lines to get rid of his candidacy. The Washington Times asked him to authenticate a secret recording of a cell phone call “from Saif el-Islam Qaddafi, a high-ranking official in Libya’s government and a son of the country’s ruler, Moammar Qaddafi.”

    Before taking the call, Rep. Kucinich “checked with the House’s general counsel to ensure that such a discussion by a member of Congress with a foreign power was permitted by law.”

    “I was assured that under the Constitution a lawmaker had a fundamental duty to ask questions and gather information—activity expressly protected by the Article I clauses covering separation of powers and congressional speech and debate.”

    Given the quality of the recordings was excellent on both ends of the call, Kucinich concluded that “the tape was made by an American intelligence agency and then leaked to the Times for political reasons. If so, this episode represented a gross violation of the separation of powers.”

    His repeated Freedom of Information Act requests made in 2012 before leaving office have been stonewalled by the intelligence agencies for five years.

    We are now in a position to see the real story behind “Russiagate.”

    It’s not about Russia. The real news is the Obama regime’s abuse of the government’s surveillance powers to spy on Donald Trump and other Republicans in order to build a dossier for the DNC to leak to the press in an attempt to slander or compromise Trump and throw the election to Hillary.

    They’ve been caught, but we can now see that they took steps to protect themselves against this. They prepared a cover story. They pretend they were not spying on Trump, but on Russians – which only by fortuitous happenchance turned up alleged incriminating smoke against Trump.

    This cover story was buttressed by the fake news story prepared by former MI6 freelancer Christopher Steele. As Whitney reports, Steele “was hired as an opposition researcher last June to dig up derogatory information on Donald Trump.” Unvetted and unverified information by so-called informants somehow found its way into U.S. intelligence agency reports. These reports were then leaked to Democrat-friendly media. This is where the crime lies. Obama regime and DNC were using these agencies for domestic political use, KGB style.

    The Obama/Clinton cover story is now falling to pieces. That explains the desperation in the attack by Adam Schiff, the ranking Democrat on the House Intelligence Committee, on Committee Chairman Devin Nunes to stop the exposure. Russiagate is not a Trump/Putin collusion but a domestic spy job carried out by Democrats.

    Law requires Trump to arrest those responsible and to put them on trial for treason and conspiracy to overthrow the government of the United States. If Trump fears to prosecute the Obama operatives within the Deep State, they will try all the harder to attack him to the point of forcing his removal or at least discrediting him and his fellow Republicans to pave the way for the 2018 elections.

  • Susan Rice Responds To Trump Unmasking Allegations: "I Leaked Nothing To Nobody"

    If anyone expected former National Security Advisor Susan Rice, the same Susan Rice who “stretched the truth” about Benghazi, to admit in her first public appearance after news that she unmasked members of the Trump team to admit she did something wrong, will be disappointed. Instead, moments ago she told MSNBC’s Andrea Mitchell that she categorically denied that the Obama administration inappropriately spied on members of the Trump transition team.

    “The allegation is that somehow, Obama administration officials utilized intelligence for political purposes,” Rice told Mitchell. “That’s absolutely false…. My job is to protect the American people and the security of our country. ”

    “There was no such collection or surveillance on Trump Tower or Trump individuals, it is important to understand, directed by the White House or targeted at Trump individuals,” Rice said.

    //platform.twitter.com/widgets.js

    “I don’t solicit reports,” Rice said Tuesday. “They’re giving it to me, if I read it, and I think that in order for me to understand, is it significant or not so significant, I need to know who the ‘U.S. Person’ is, I can make that request.” She did concede that it is “possible” the Trump team was picked up in “incidental surveillance.”

    “The notion, which some people are trying to suggest, that by asking for the identity of the American person is the same is leaking it — that’s completely false,” Rice said. “There is no equivalence between so-called unmasking and leaking.”

    //platform.twitter.com/widgets.js

    That said, Rice did not discuss what motive she may have had behind what Bloomberg, Fox and others have confirmed, was her unmasking of members of the Trump team.

    Rice also flatly denied exposing President Trump’s former national security advisor Michael Flynn, who was forced to resign in February after media reports revealed that he misled Vice President Pence about the contents of a phone call with the Russian ambassador. Asked by Mitchell if she seeked to unmask the names of people involved in the Trump campaign in order to spy on them, Rice says: “absolutely not, for any political purpose, to spy, expose, anything.” And yet, that is what happened. She was then asked if she leaked if she leaked the name of Mike Flynn: “I leaked nothing to nobody.”

    //platform.twitter.com/widgets.js

    In a follow up question, Rice said that when it comes to Mike Flynn with whom she had “civil and cordial relations”, that she learned “in the press” that he was an unregistered agent for the Turkish government.

    //platform.twitter.com/widgets.js

    We doubt that anyone’s opinion will change after hearing the above especially considering that, in addition to Benghazi,  Rice is the official who praised Bowe Bergdahl for his “honorable service” and claimed he was captured “on the battlefield”, and then just two weeks ago, she told PBS that she didn’t know anything about the unmasking.

    Unfortunately, Mitchell’s list of questions did not go so far as to ask about her false claim in the PBS interview, in which she said “I know nothing about unmasking Trump officials.”

    It is thus hardly surprising that now that her memory has been “refreshed” about her role in the unmasking, that Rice clearly remembers doing nothing at all wrong.

    On Monday night, Rand Paul and other Republicans called for Rice to testify under oath, a request she sidestepped on Tuesday. “Let’s see what comes,” she told Mitchell, when asked if she would testify on the matter. “I’m not going to sit here and prejudge.”

Digest powered by RSS Digest

Today’s News 4th April 2017

  • Mass Exodus: 1 Million People Have Ditched New York Since 2010

    The folks of New York City seem to be slowly waking up to the fact that there are a whole lot of places to live in between America’s two shores that cost a lot less money, enjoy much better weather and don’t tax their citizens to death.  According to the latest data from the United States Census Bureau, the New York area has lost a total of nearly 1 million residents to domestic migration in just the past 6 years alone.

    Of course, if you listen to the Empire Center for Public Policy research, the mass exodus isn’t related to the Big Apple’s excessive cost of living or ridiculous tax structure but rather is just a symptom of the improving economy.  Per the New York Post:

    The number of people leaving the region — which includes parts of New Jersey, Connecticut, the lower Hudson Valley and Long Island — in one year swelled from 187,034 in 2015 to 223,423 in 2016, while the number of international immigrants settling in the tristate area dwindled from 181,551 to 160,324 over the same period, records show.

     

    The nation’s economy is improving, there are more jobs in cheaper places to live, and retirees are choosing to move to warmer climates, experts say.

     

    “The historical trend is that out-migration grows when the economy is getting better,” said Empire Center for Public Policy research director E.J. McMahon.

     

    “As the economy gets better, there are more jobs outside the region and by the same token . . . more people to buy your house if you’re a baby boomer looking to move to Boca Raton or Myrtle Beach.”

    Not surprisingly, Chicago saw the 2nd highest outflow of people followed closely by Los Angeles. 

    Moreover, in another ‘complete shock’, the people ditching NYC, Chicago and LA in record numbers are flocking to Texas and Arizona where they can enjoy sunshine 350 days a year, cheap housing and substantially lower tax rates. 

    Manhattan

     

    And while San Francisco hasn’t shown up on the ‘biggest loser’ list just yet, as we reported last week, a growing number of snowflake millennials are saying they can no longer stand to live in the preeminent American ‘safe space’ because the “rent is too damn high”, the traffic is too damn congested and, well, President Trump.  According to a new poll conducted by the Bay Area Council, 40% of all people living in San Francisco say they’re ready to ditch the city for greener pastures while the number is even higher among millennials at 46%.

    A growing number of Bay Area residents, led by millennials (18-39), are looking to greener (or less expensive) pastures as the region’s housing and traffic crises combined with an astronomical cost of living take their toll, according to results of the 2017 Bay Area Council Poll released today. The poll found that 40 percent of respondents are considering leaving the Bay Area in the next few years, with millennials leading the way at 46 percent, along with those who spend the biggest share of their income on housing.

     

    “Losing our youth is a very bad economic and social strategy,” said Jim Wunderman, President and CEO of the Bay Area Council. “But until we get serious about building the housing we need we’re going to continue seeing our region drained of the young and diverse talent that has helped make the Bay Area an economic powerhouse. We know what the solutions are – streamline local approval and reduce fees and regulatory costs – we just need the political will here and in Sacramento to make them happen. It can be done, it must be done and we’re working now to get it done.”

    Meanwhile, the number of people saying they’re looking to ditch the city jumped 6 points versus 2016.

    San Fran

     

    Of course, housing and traffic were the most cited reasons that people were looking leave San Fran.  But, in a rather surprising new addition to the list of complaints, President Trump also showed up as a key threat to life in the Bay Area.  Perhaps, the snowflakes of California’s northern shores aren’t aware that even if they move elsewhere in the country that President Trump would still be their president?

    San Fran

    Guess spending $1.2 million on those 600 square foot studio apartments gets old after a while…

  • China Starts 2017 With Highest Number Of Corporate Defaults In History

    Back in October 2015, roughly around the bottom of the recent commodity cycle, we reported a stunning statistic: more than half of Chinese companies did not generate enough cash flow to even cover the interest on their cash flow, and as we concluded “it is safe to assume that up to two-third of Chinese commodity companies are now at imminent danger of default, as they can’t even generate the cash to pay down the interest on their debt, let alone fund repayments.

    While commodity prices have staged a powerful bounce over the past 18 months, and despite the government’s powerful drive to avoid major defaults over concerns about resulting mass unemployment, the inevitable default wave has finally arrived, and as Bloomberg reports overnight, “China’s deleveraging push has racked up the most defaults on corporate bonds ever for a first quarter, and the identity of the debtors is pretty revealing.”

    Seven companies have defaulted on a total of nine bonds onshore so far in 2017, versus 29 for all of last year, according to data compiled by Bloomberg. In a sign of the struggles facing China’s old economic model, most of them depend on heavy industry and construction. While it’s still far from a crisis point, the defaults shows how policy makers’ efforts to reduce the liquidity that had propelled the bond market until late last year is exacting casualties.

    Cited by Bloomberg, Liu Dongliang, a senior analyst at China Merchants Bank Co. in Shenzhen said that “weak companies can’t sell bonds, which adds to the pressure on their cash flow.” As a result, “the pace of defaults will continue. It will be even more difficult for weak companies to sell bonds because corporate bond yields may rise further — the current yield premium doesn’t provide enough protection against credit risks.”

    As discussed in recent months, the Chinese central bank has been curbing leverage in money markets leading to a spike in borrowing costs…

    … which has also hit issuance: making rolling over of existing debt prohibitive for many. Firms rated AA, generally considered junk in China, sold 33 billion yuan ($4.8 billion) of bonds in the first quarter, the least since 2011, Bloomberg data show. Chinese companies have scrapped 129 billion yuan of bond sales since Dec. 31, a jump of more than 50 percent from the same period a year before.

    Continuing the deleveraging push, and further tightening financial conditions, over the weekend, the PBOC boosted rates on loans aimed at small- and medium-sized financial institutions while as reported last weekend, smaller and mid-size banks have been caught in the cross hairs of shadow banking deleveraging, with some said to have missed debt payments in March.

    Not surprisingly, Bloomberg reports that four of this year’s nine defaulted bonds were issued by companies based in the northeast rust-belt province of Liaoning, which has been among the areas hit hardest by China’s focus on reducing capacity in industries such as steel and coal. Another key Chinese commodity producing province, Hebei, which is the nexus of China’s steel-production has so far been spared as a result of lying about its production cuts, however recent revelations have prompted Beijing to crack down on local factories, resulting in the recent decline in iron-ore prices, which will likely have adverse impacts on Chinese upstream steel suppliers, and result in even more defaults in the coming months.

    Courtesy of Bloomberg, here is a summary of the companies that have defaulted so far in 2017:

    1. Dalian Machine Tool Group Corp.

    The top perpetrator, this Liaoning manufacturer defaulted on three bonds this year, after issuing new securities as recently as October. The tool making industry has a large number of players, and is ripe for consolidation, according to Bloomberg Intelligence. Dalian Machine is also based in a province that tumbled into an outright recession last year. The securities involved include a note due in May 2017, one due in July and another due in January 2019.

    2. Dongbei Special Steel Group Co.

    This steelmaker based in Dalian, a port city on the Yellow Sea, is a good example of Liaoning’s troubles. The company, partially state owned, was already bailed out in the early 2000s before it had to grapple with the challenges of China’s economy decelerating from around 10 percent growth to sub-7 percent. It’s now defaulted on its sixth bond since its latest financial difficulties began a year ago. The company is in bankruptcy proceedings. The note defaulted on was originally issued in 2013 and is due in January 2018.

    3. Inner Mongolia Berun Group Co.

    This investment company is based in the heart of the northern province of Inner Mongolia, which saw a surge in construction during the record credit boom unleashed during the global financial crisis. Berun Group’s home city, Ordos, was dubbed China’s biggest “ghost town,” for all the vacant buildings that went up during the stimulus period. This was the second default within two months for the company, which invests in chemicals and logistics. The defaulted security was a note issued last year that was due in January.

    4. China Shanshui Cement Group Ltd.

    While this company is based in Shandong, a province southeast of Beijing that’s better off than its neighbor across the Yellow Sea, Liaoning, cement has become a tougher industry since regulators took steps to rein in China’s property sector. China Shanshui Cement Group has defaulted on several bonds since November 2015 after a boardroom fracas stymied financing. Its Hong Kong-traded shares are suspended. The bond in question was three-year note issued in February 2014.

    5. China City Construction Holding Group Co.

    This builder is based in the national capital, but Beijing’s ongoing property boom wasn’t enough to prevent it from missing interest payments. A change in the contractor’s ownership last April triggered early redemption of a Dim Sum bond, and then China City faced difficulties transferring funds offshore to repay the debt. The shifting shareholder structure has had a “serious” negative impact on the company’s ongoing ability to secure funding, according to China Lianhe Credit Rating Co. The company defaulted again early last month. The security was a bond due in March 2021.

    6. Huasheng Jiangquan Group Co.

    Another Shandong-based company, this steelmaker suffered “huge losses” after its subsidiary cut manufacturing of the alloy, according to Dongxing Securities Co., the lead underwriter on the defaulted bond. Premier Li Keqiang said in his address to the National People’s Congress last month that China wants to reduce steel capacity by about 50 million tons. Huasheng Jiangquan repaid the overdue amount on the debt March 22. The 800 million-yuan bond that was defaulted on was due in March 2019.

    7. Zhuhai Zhongfu Enterprise Co.

    A bottle maker for Coca-Cola Co., this company sticks out because it hails from Guangdong, China’s powerhouse exporter province. Zhuhai Zhongfu said in a statement last week that it’s running at a loss amid competition in the industry and weak demand. The company’s controlling shareholder says Zhuhai Zhongfu is planning to make an overdue payment by April 26 on the bond that it defaulted on March 28. The firm defaulted on a separate bond in 2015 and repaid the debt five months later.

  • Are 401K Holders About To Feel A Savers Pain?

    Authored by Mark St.Cyr,

    There’s an old truism people forget all too often. It has many variations and is attributed to even more, its core meaning goes something like this:

    “If the government can give it to you, than it can also take it away.”

    Some of you might be wondering if I’m talking about the current “tax” advantages that have made these vehicles so popular over the years. To that I’ll say no, not at this current time. But I feel that will be the least of worries coming down the pike in the not so distant future.

    No, what I’m directly addressing is what is now emanating from the one and only non-government, privately held institution, directed by a consortium of non-elected, Ivory Towered, policy wonks: The Federal Reserve.

    And those emanations are anything but 401K holder friendly. Let me explain…

    I know many are wondering how a government inspired quote, a private institution, their retirement account, or savings account fits under one banner, or are some how all connected. Well, that’s easy:

    The Federal Reserve has been the sole entity that dictates what any of them are currently worth. And if you don’t like their choices or decisions? Tough. There’s nothing you can do about it. Period.

    Maybe that’s not quite correct: It’s not that there’s “nothing you can do.” The problem is – there’s nothing you’ll want to do. Hence where the real issues lie.

    The following is for those who know of no other “investing” world (or 401K holder) other than after the financial crisis of 2007/08. Or put differently – if you’ve been working and saving only for the last decade or so. i.e., in the 35ish – 40-year-old bracket and younger.

    Back in ancient history before algorithmic HFT parasites roamed the trading world (circa 2008 A.D.) One could retire comfortably with a modest sum of money and find relatively safe places to hold their assets receiving some form of interest payment for its usage. CD’s (certificates of deposit) bonds (such as U.S. Treasuries) and others were some of the most popular.

    That was until the Fed. decided interest rates and everything that was connected to them was secondary (and even expendable) as to subjugate the financial markets and bring them into such a reflexive corollary that even if a Fed. official whispered- the effect on Wall Street was a realtime example of that other adage “When a butterfly flaps its wings…”

    That’s what pumping (and printing) $4+TRILLION dollars via differing iterations of QE, Twist and a relentless death grip for years at the Zero-bound will buy you.

    For those who don’t remember, it used to be when understanding investing prowess people used to say (or was advertised) things like, “When E.F. Hutton speaks – people listen.” Now it’s: “When The Federal Reserve whispers – Wall Street jumps!”

    That’s what the greatest expression for capital formation the world has ever known has now become. i.e., Nothing more than a trained jumping flea circus. And again – all in less than 10 years.

    Does a “Mission Accomplished” banner come with that? But I digress.

    One of the reasons I can attest to much of what has been thrust upon (or taken from) retirees and others is that I actually am one, became one right at the beginning of the financial crisis. I was fortunate enough (via hard work and forethought) as to retire at the age of 45. A “dream” or ‘brass ring” many find elusive if not near impossible back in 2005.

    It was a dream come true. However – it was also smack-dab right before, and squarely into the teeth of the “out of the blue” financial shock and market melt down for the ages that would transform everything. And I do mean: everything!

    Suddenly the idea of diversifying one’s financial assets into relative safety was gone – and I do mean just that – gone. Which is, by-the-way, why I detest and so adamantly stand against all this over-simplified drivel once again appearing from so-called financial “expert” landscape. It’s going to hurt far more people than it’ll ever help.

    The Federal Reserve decided in its infinite “wisdom” that interest rates were now to be considered a “poison” to the economy and not only cut – but slashed them, and held them at the Zero-bound for years. What this meant was one could no longer expect to receive any interest bearing accounts to live. i.e., Eat, pay bills, et cetera. And I won’t even get into what it has done to pensions and insurance companies.

    But no one has cared – especially the Fed. Let me use the following for demonstration purposes…

    Let’s say you were an entrepreneur and sold your business, or were able to some how via thrift or shrewd business acumen, and were able to amass a nest egg of let’s say $3Million dollars for the entrepreneur, and $1Million for the shrewd. Both scenarios are quite feasible for the prudent minded.

    Just 10 years ago it was also not only feasible, but rather probable, one could safely allocate their resources finding returns of 5% (and higher, depending) in such mundane vehicles as CD’s, Treasuries, and more.

    So, using nothing more than napkin math, one could easily calculate using the $1MM example that money would generate approximately $50,000.00 per year without touching the principal for one to live on. This was also a relatively accurate proposition because there was precedent going back decades. Sure, $50K ain’t what it used to be, but it’s sure a hell of a lot more than Zero – which is precisely what interest rates have been now going on years. And on $3MM? It’s the same. i.e. Zero, as in zip, zero, nada.

    “But wait! There’s more!!!” as they say, but it’s not a bonus anyone wants to hear about. What is that you say? Glad you asked…

    Not only does having a $Million dollars get you nothing at a bank (correct, not even a lousy toaster) if you are one of the fortunate (or unfortunate depending on perspective) who wants to put that hard-earned money safely under “lock and key” via the auspices of some bank – it’s going to cost you! And in some instances – they might not even want your deposit at all. Why?

    Why else – it’ll cost them, and that’s a no-no in banking. Costs are something you pay – not them. And if enough profits can’t be made on legitimate transactions? See Wells Fargo™ for clues.

    So what was the flip side? Here’s my opinion…

    Welcome to the “markets” (or should I say casino) of today. Where 401K holders, and corporate buy-backs supported via the Fed’s balance sheet accrual, and zero interest rate financing meet the front running, algorithmic, headline reading HFT parasites which enabled the BTFD phenom to appear time, after time, after time, after time. Which, by its very nature and existence has allowed “investing” to be the equivalent of nothing more than following the strategy of a chimp hurling darts at ETF symbols backed by a central banks “bulls-eye.”

    Ah, but what a difference an election does make, no? For that was then – and this is now. And “now” seems to be that the Federal Reserve is hell-bent as to raise interest rates regardless of what the “markets” desire.

    Can you say, “Oh-oh?”

    For years the cries of savers, pension plans, insurance companies and more have fallen on deaf ears. Actuary tables that prove these bedrocks of society can not sustain or endure under a Fed. policy such as what has been thrust upon them was relegated to the, “Who cares the “markets” up – deal with it!” status.

    Now – That all seems to have changed.

    Suddenly (as in the last few months) interest rates not only need to go up. They need to go up stat!

    The Fed. via its differing speakers in public comments are signaling that not only is the raising of rates further, and quicker on the table, but so too is the balance sheet as to begin down sizing it.

    If the above is to be taken at face value (and why shouldn’t it, after all, isn’t this why the Fed. makes public comments to begin with?) with signaling (via the Dot Plot and more) now stating 3 rate hikes for 2017 and some Fed. speakers signaling the possibility of even 4. Along with the abrupt metamorphosis of doves turning into hawks (using Ms. Yellen, and Ms. Brainard as examples) the “markets” are going to find fuel to propel them higher using what precisely?

    The only fuel that has enabled the “markets” to propel this high has been all Fed. funded. And now this same Fed. is in no uncertain terms professing they’re out of the “hopium” business. Or at least – want to appear that way.

    If this is true, taking them not just at their words, but rather via their actions – we now have 2 rate increases in 90 days with near shouting (as compared to prior discussions) that the Fed. is far more interested in raising further, and faster, than previously discussed. All while remembering it was only a few short weeks prior the Fed. Chair herself was touting the need for running a “high pressure economy” and has now flipped to jettison anything of the such – and is now the undisputed leader of “hawks are us.”

    The issue here is – the “markets” have been levitated via the “wings of doves.” Suddenly – those “doves” have all but vanished. And if that’s true? What’s vanished with it may just be the BTFD genius along with it. And that will turn into a very big problem indeed if correct.

    When savers were (and still are) getting crushed, no one cared, not even the Fed. The problem?

    It seems just as the Fed. turned its back on savers pain all these years – they might be signaling how they’re going to feel about any 401K holders losses that may appear via their new-found policy stance. To Wit:

    ZeroHedge: “What is the biggest S&P drop the Fed will accept before intervening?”

    Minneapolis Fed. president Neel Kashkari: “Don’t care about stock market fall itself. Care abt potential financial instability. Stock market drop unlikely to trigger crisis.”

    And with that, only one last saying comes to my mind:

    Dear 401K holders – welcome to a savers world. Oh yeah, and buckle up. For things might get a little “bumpy” as that other saying goes.

  • "Hot Money": Hong Kong Businessman Pays $2.5 Million For 18-Year-Old Romanian Model's Virginity

    There is so much excess liquidity in China that an 18-year-old Romanian model has agreed to sell her virginity to a “very friendly” – and generous – Hong Kong businessman for the “life-changing” sum of $2.45 million (€ 2.3 million).

    In late 2016, Romanian Alexandra Kefren ignited a firestorm of outrage after it was reported that she had put her first sexual experience up for auction for a minimum of $1 million on Cinderella Escorts, a Germany-based agency which specializes in teens looking to sell their virginity online. According to the Shanghaiist, Kefren says she got the idea from watching Indecent Proposal when she was 15 years old.

    After the news made headlines around the world, Kefren’s parents nearly disowned her. She later went on a British daytime television show to explain her decision. The teen said that she was selling her virginity so that she could pay for a good life for her parents, as well as a home and education for herself.

    With the YouTube clip alone getting nearly 2 million views (unclear if it ran Coke ads), the surge in media attention caused the bids to skyrocket. Finally, an anonymous Hong Kong businessman offered $2.45 million for the privilege of lifting her, well, offer. It was an amount she could not say no to.

    On Cinderella Escorts, Kefren explained her decision last month, asking “How many would possibly forgo their first time in retrospect if they could have 2.3 million euros instead?”

    I am glad to have decided to sell my virginity throught Cinderella Escorts, I would never have dreamed that the bid would go so high and we would reach € 2.3 million. This is really a dream come true.

     

    We had commandments from all over the world and there was a long process. I was criticized in the press.

     

    It was felt as a taboo that I can do with my body what I want.

     

    But I have kept to it that I wanted to sell my virginity with Cinderella Escorts rather than giving it to a future friend who might have left me anyway. And I think many other girls have the same attitude.

     

    How many would possibly forgo their first time in retrospect if they could have 2.3 million euros instead? Everyone has to ask himself this question. Of course, there will be different opinions, but everyone should be able to represent and live their own.

     

    Now everything has to be organized. The hotel is booked. Cinderella Escorts accompanies me to the meeting and stays nearby as security if problems arise. I have the possibility to terminate the meeting at any time, but I am quite confident. I could talk with the buyer before and we are very friendly.

    But while Kefren may have hit the jackpot, if only once, the biggest recurring winner in the arrangement appears to be the agency, Cinderella Escorts, which will profit on this deal, taking a 20% commission from the transaction. Additionally, Kefren’s story appears to have inspired more girls to follow in her footsteps. The agency claims that they have received requests from 300 girls from around the country wanting to sell their virginity on the site as well.

    As for Hong Kong and Chinese bidders, we are confident that they will soon figure out a novel way of converting this scheme into the latest and greatest way to funnel hot money out of China’s closed financial system and into more mature market. Curious where to “park” several million in “hot money”?  Then head on over to the money laundering, pardon, virginity auction website.

  • Tucker Carlson: 'Our Laws Provide No Serious Protection From Being Spied Upon for Political Reasons'

    Tucker Carlson tackled the subject of Susan Rice and privacy this evening — drawing a red line in the sand — proclaiming that ‘our laws provided no serious protections from being spied on for political reasons.’

    Can anyone make an argument proving this to be a false statement?

    All too often, lazy thinkers conclude that it is the right of government to spy on its citizens. Perhaps that is the case in Saudi Arabia or Canada, but it’s not supposed to be that way here. Either the promotional propaganda that lauds America’s democracy as being the ideal for representative forms of government are true or they aren’t. Providing the latter prevails, as it is now, no one will ever believe in the dream that was democracy — thanks to a cadre of corrupt mountebanks who’ve abused the goodwill of the American people and its systems for purposes of self-aggrandizement and a prevailing bias that wantonly eschews the liberty of its citizens — superseded only by a craven and insatiable appetite for power.

     

    Content originally published at iBankCoin.com

  • Trump & The Candlemakers' Petition

    Authored by Jeff Thomas via InterernationalMan.com,

    French economist Frédéric Bastiat was a man far ahead of his time. He was a “classical liberal,” which today would identify him as a libertarian. He expanded upon the free-market argument set forth by Adam Smith in 1776.

    In 1845, the French government levied protective tariffs on scores of items, from sewing needles to locomotives. The intent was to protect French industries from companies outside France that could produce the goods more cheaply.

    The reaction from Mister Bastiat was to publish “The Candlemakers’ Petition,” a satirical proposal to the government that was intended to help them see the nonsense of protective tariffs.

    The petition was presented as having been sent by “the Manufacturers of Candles, Tapers, Lanterns, Sticks, Street Lamps, Snuffers, and Extinguishers, and from Producers of Tallow, Oil, Resin, Alcohol, and Generally of Everything Connected with Lighting.”  

    Their plea to the Chamber of Deputies was that the government pass a law “requiring the closing of all windows, dormers, skylights, inside and outside shutters, curtains, casements, bull’s-eyes, deadlights, and blinds—in short, all openings, holes, chinks, and fissures through which the light of the sun is wont to enter houses.”

    Mister Bastiat’s satirical petition did an exemplary job of exposing the tendency of governments to pander to special interest groups to the detriment of everyone else.

    Throughout the ages, protective tariffs have been created for this purpose and, historically, they work only briefly, if at all.

    In 1930, the US introduced the Smoot-Hawley Tariff Act, which raised tariffs on over 20,000 imported goods. Not surprisingly, the source countries for those goods retaliated by passing their own tariffs against the importation of American goods.

    The net effect, in addition to the new laws cancelling each other out, was that free trade took a major hit. Consumers in all countries affected had less access to a variety of goods, and the GDP of each nation suffered as overseas orders dried up.

    Of course, the justification for Smoot-Hawley was that the US had suffered a stock market crash and the demand to protect surviving businesses was considerable. It’s not surprising, then, that whenever a given country finds itself in an economic squeeze, industry leaders shout “foul!” and governments appease them with tariffs.

    Again, not surprisingly, we observe the tariff question rearing its ugly head today, most visibly in the US, where new President Donald Trump has vowed to place tariffs on a number of countries, most notably on Mexico (20%) and China (a whopping 45%).

    As is always the case when a government declares it will create a dramatic tariff, those who impose it look no further than the immediate effect—that of limiting importing goods to protect domestic industry. The immediate secondary effect is that goods from those countries suddenly become far more expensive, and domestic industry is either unable to produce the goods at all, or at best, it must do so at a much higher price.

    At present, Chinese goods amount to 19% of American imports and Mexican goods amount to 12%. With nearly a third of all goods purchased by Americans during a difficult economic period increasing dramatically in price, the impact to the cost of living can be expected to be substantial. If the tariffs are extended to other jurisdictions, as in 1930, a few domestic industries would enjoy a brief period of benefit, but the population (and eventually all industry, through knock-on effects) would be heavily impacted.

    So, why on earth are political leaders so quick to impose tariffs? Well, don’t forget: Tariffs are paid to the government. Any government that’s facing revenue problems will be tempted to go for a quick injection of revenue, even if it will ultimately be destructive. Regardless of how much damage tariffs do to the people of a country, tariff revenue is like manna from heaven for governments.

    Of course, the revenue source tends to dry up before long as, ultimately, tariffs are destructive to free trade. Most tariffs are either abolished or at least lowered at some point. In the meantime, they’re like plaque in a body’s arteries, creating a sclerotic effect on the economy. Invariably, they’re a heavy price for a country to pay for a brief period of additional revenue that political leaders may squander.

    But, understandably, the temptation is great for any government and, since memories tend to be short, governments can serially con the public into another round of protectionism every generation or so.

    Returning once again to Mister Bastiat’s satirical petition, his final paragraph stated,

    Make your choice, but be logical; for as long as you ban, as you do, foreign coal, iron, wheat, and textiles, in proportion as their price approaches zero, how inconsistent it would be to admit the light of the sun, whose price is zero all day long!

    On the surface, tariffs sound like a good idea, but in reality, they’re veritable icebergs of economic destruction. Two principles should always be considered when musing on a tariff:

    1. Tariffs (protectionism) never benefit a nation. They do, however, often increase the revenue received by the imposing government.

    2. The more a people pay for products, the lower their standard of living.

    It’s hard to overstate how much US consumers rely on cheap goods from countries like China and Mexico. But even without the Trump tariffs, many can already feel their once nice standard of living slipping away.

    That’s because the US is on the cusp of an unprecedented economic storm—and we’re already feeling the raindrops.

    *  *  *

    New York Times best-selling author Doug Casey and his team put together this groundbreaking video showing you how to build a financial shelter to protect yourself and your family. Click here to watch it now.

  • Dallas Mayor Pulls Support For "Massive Taxpayer Bailout" Of Police Pension

    Dallas Mayor Mike Rawlings has finally reached his maximum willingness to throw taxpayer dollars at the Dallas Police and Fire Pension (DPFP) system and has pulled is support for a bill that, if it passes, will undoubtedly prove to be yet another futile effort to save the system from insolvency.  Despite support for the original legislation introduced by Dan Flynn, chair of the pensions committee in the Texas House of Representatives, Rawlings apparently took issue with a last minute addition to the bill that would have taxpayers fund the pensions of “phantom employees” based on a target Dallas police force of 3 officers per 1,000 residents.  Per ABC:

    The clause sets a baseline number of officers and firefighters. In the case of police, that’s three officers per thousand. The clause would also automatically assume that a certain level of raises given.

     

    “Basically you’re paying on phantom employees, not real employees,” Rawlings said. “We just can’t enter into an agreement with that degree of commitment for the city. No business would do it this way. We cannot find another pension fund in American where someone pays into a fund based on future employees. It’s just not done and it should not start here in the State of Texas.”

     

    “This is the most taxpayer unfriendly poison pill that I’ve seen in this bill,” he said. “I’m not going to swallow this pill.”

    Frankly, not wanting to spend taxpayer dollars to fund the pensions of officers that don’t even exist just seems selfish, Mike!

    As we reported previously (see “Dallas Police Pension Board Approves Benefit Cuts; Asks For More Taxpayer Money To Avoid Collapse“), legislation to save the DPFP was introduced a couple of months ago by Dan Flynn.  Flynn’s bill called for Dallas taxpayers to contribute 34.5% of police and firefighter salaries each year into the failing pension system, up from 27% in 2015, plus an incremental $11 million per year.  In total, the adopted plan was expected to cost Dallas taxpayers an extra $22 million per year.

    That said, the plan also called for pensioners to grant concessions, including the following:

    • Increase in retirement age to 58 from 55
    • Increase in employee contributions to 13.5% of payroll from 8.5%
    • Elimination of COLAs in the near term
    • Elimination of exorbitant interest payments made on employees DROP accounts

    Of course, Flynn was appalled by Rawling’s opposition to funding the pensions of fake employees and took to twitter to blast his decision.

     “I am deeply disappointed that the Mayor is not in support of the Legislation that will save the Dallas Police and Fire Pension.  Dallas’s own website says how much they are committed to provide and now they back out over a provision that has always been in the bill since the day it was filed and want to hurt families more. I simply won’t allow it. 10,000 Police and Fire retirees and active members and their extended families will be damaged by this stance and we hope the Mayor thinks better of it.”

    //platform.twitter.com/widgets.js

     

    Meanwhile, Rawlings also expressed opposition to the current governance set out in the bill as it gives 50% control to the city and 50% to public safety workers.

    “The thing that’s really concerning to me is that retirees say Dallas promised us this money, ‘give it to us,’” he said. “Dallas didn’t promise the money and if you want us to own the problem,… Dallas needs to have the right governance to do that.”

     

    He noted that when he first became mayor in 2011, he sought to have the pension fund audited in the face of questions about the financial stability of the fund.

     

    “They said you have no legal authority to do that,” he said.

     

    The mayor and the city’s position is that police and firefighters voted themselves excessively generous benefits, and that the fund’s leadership hid the extent of the fund’s troubles from the membership for years.

    But don’t worry dear pensioners, we’re sure you’ll end up getting your taxpayer funded bailout…after all, there is no problem too large for taxpayers to solve.

    * * *

    For those who aren’t familiar with the DPFP fiasco, here is some background on how it ended up in its current predicament.

    Just over a month ago we wrote that the Dallas Police and Fire Pension Fund was on the verge of collapse after a series of shady real estate investments resulted in massive markdowns of pension assets, the ouster of the fund’s CIO and an FBI raid of the fund’s largest real estate investment manager (see “Dallas Cops’ Pension Fund Nears Insolvency In Wake Of Shady Real Estate Deals, FBI Raid“).  We summed up the fund’s dilemma as follows:  

    The Dallas Police & Fire Pension (DPFP), which covers nearly 10,000 police and firefighters, is on the verge of collapse as its board and the City of Dallas struggle to pitch benefit cuts to save the plan from complete failure.  According the the National Real Estate Investor, DPFP was once applauded for it’s “diverse investment portfolio” but turns out it may have all been a fraud as the pension’s former real estate investment manager, CDK Realy Advisors, was raided by the FBI in April 2016 and the fund was subsequently forced to mark down their entire real estate book by 32%Guess it’s pretty easy to generate good returns if you manage a book of illiquid assets that can be marked at your “discretion”. 

    The rampant fraud at the DPFP left the fund over $3BN underfunded and its board of directors with no other option but to seek a $600mm infusion from taxpayers to keep the fund afloat.  Even worse, a review of the pension’s financials revealed $2.11 of annual benefit payments to members for every $1.00 contributed to the plan by members and taxpayers (mostly taxpayers)…the typical pension ponzi whereby plan administrators borrow from assets reserved to cover future liabilities (which are likely impaired) to cover current claims in full.

    DPFP

     

    Well, it seems as though Dallas police officers are catching on to the ponzi and rushing to withdraw retirement funds as quickly as possible before the whole system goes bust.  As reported by a local ABC affiliate, Dallas police officers are retiring at a record rate and opting for full cash withdrawals of their pension benefits as opposed to equal monthly distributions for life (apparently they don’t think the fund will be around long enough to pay them for very long).

    But the pension fund is in trouble and in danger of going bankrupt. That’s causing some officers and retirees to begin withdrawing their retirement funds and rolling it into their 401Ks.

     

    News 8 has learned a that one assistant chief recently withdrew more than $1 million, and sources say nearly $300 million has been withdrawn throughout the department.

     

    “We are in a serious situation and I think everyone needs to be concerned right now about where we are and where we need to go to get out of this.”

    DPFP board chairman, Sam Friar, was apparently worried enough about the “run on the bank” exposing the pension for the ponzi scheme that it is, that he decided to send a letter to members urging them to “not act rashly and without full information.”  The pension board also voted to stop allowing current police officers to withdraw the cash value of their pensions and are considering further measures that would also restrict withdrawals by retirees. 

    The panic that has set in forced the chairman of the pension board Sam Friar to issue a letter to members.

     

    “I would strongly urge all members not to act rashly and without full information,” he wrote. “You may make decisions that, after all the changes are made, are not in your best interest.”

     

    The board was so concerned it voted to stop current officers from withdrawing any money from their pensions, and sources say the board will soon vote to no longer allow retirees to take their money out.

     

    “This may be the only way the pension can limit the cash outflow because we are in a bad situation that right now the existence of system is at stake.”

    Alas, the threats to restrict withdrawals of retirees probably didn’t work out the way Friar expected as it has set off a wave of early retirements.  According to NBC, for the first two weeks of September, 21 Dallas police officers retired when only 14 retirements were expected for all of August and September. 

    Through the first two weeks of September, there have been 21 Dallas police officers who retired.

     

    Multiple sources told NBC 5 that commanders are bracing for many more retirements over the next two weeks as well.

     

    The Dallas Police Department did not foresee the volume of retirements this month.

     

    In early August, Deputy Chiefs told city council members in a presentation that they projected 14 retirements between Aug. 9 and Oct. 1.

    Alas, while Dallas police and fire fighters may endure some short-term pain, as their pension ponzi is revealed for all to see, we suspect that the real losers, as per the usual, will be taxpayers who will ultimately be forced to pony up whatever amount of money is required to keep the whole farce going just a little longer.

    http://www.nbcdfw.com/portableplayer/?cmsID=393783421&videoID=4eEECeS42VOa&origin=nbcdfw.com&sec=news&subsec=local&width=600&height=360

  • Rand Paul: Rice Should Testify Under Oath If Obama Ordered Her To "Unmask" Trump Team

    After it emerged courtesy of Mike Cernovich that former National Security Advisor Susan Rice had made numerous requests to “unmask” the identities of Americans associated with President Trump in intelligence reports, senator Rand Paul who in recent days has been on increasingly better terms with the president and even went golfing with him this weekend, said Rice should testify under oath about her involvment in a potentially illegal scandal that she herself denied she had any knowledge of as recently as 2 weeks ago.

    The Kentucky senator called the unmasking an “enormous deal” and indicated that it should be illegal.

    “If it is allowed, we shouldn’t be allowing it, but I don’t think should just discount how big a deal it is that Susan Rice was looking at these and she needs to be asked, ‘Did President Obama ask her to do this? Was this a directive from President Obama?  I think she should testify under oath on this.” Paul told reporters.

    “I think she should be asked under oath, did she reveal it to The Washington Post. I think they were illegally basically using an espionage tool to eavesdrop or wiretap — if you want to use the word generally — on the Trump campaign,” Paul said.

    The report about Rice is linked to Devin Nunes’s claim that the Trump transition team was “accidentally surveilled” and associated information was widely disseminated in intelligence community reports.

    Nunes made the claim nearly two weeks ago, infuriating his Democratic colleagues by briefing the media and Trump on the information before revealing it to his committee. Nunes said he was particularly concerned with the possibility that Trump associates were “unmasked” in the intelligence reports.  Nunes revealed the information weeks after Trump accused Obama of having his “wires tapped” at Trump Tower ahead of the presidential election.

    Paul used Monday’s development to renew his push for reform of a controversial provision of the Foreign Intelligence Surveillance Act (FISA) that allows the U.S. intelligence community to target non-Americans outside the United States without a warrant. The provision, Section 702, is up for renewal later this year. Paul also signaled that he sees Nunes — who has long been an advocate for the foreign intelligence law — as a potential ally for reform.

    Nunes previously took issue with the fact that Michael Flynn, Trump’s former national security adviser, had his communications monitored by the intelligence community, which were later the subject of media reports. 

    “I have been very impressed with Devin Nunes,” Paul said. “All of the intelligence hawks don’t like him because he appears to have found something and he’s willing to talk about it with the president.”

    “I think it is inappropriate and it should be illegal,” Paul said of “incidental collection” on Americans without a warrant, i.e. spying by the NSA first revealed by Edward Snowden.

    “I don’t think you should be allowed to listen to Americans’ conversations without a warrant. They are doing it without a warrant. They are targeting a foreigner, and because they are targeting a foreigner they are gathering all of this information on Americans.” 

    “Is there a possibility that Susan Rice was politically motivated? Let’s ask her why she was opening up all of the conversations with Trump transition figures.”

    Last Friday, in a rare public compliment of a political figure, Matt Drudge said that “Rand Paul is America’s best senator.”

  • Cernovich Explains How He Learned About Susan Rice

    Ever since Mike Cernovich dropped the bombshell report over the weekend outing Obama’s National Security Advisor, Susan Rice, as the person behind the unmasking of the identity of various members of Trump’s team who were ‘incidentally’ surveilled during the 2016 campaign (see “Confirmed: Susan Rice “Unmasked” Trump Team“), a report which was subsequently confirmed by Eli Lake of Bloomberg earlier this morning, everyone has been wondering who within the Trump White House or the intelligence community supplied him with such a massive scoop. 

    But, as it turns out, Cernovich didn’t need a ‘deep throat’ within the NSA or CIA for his blockbuster scoop, all he needed was some well-placed sources inside of a couple of America’s corrupt mainstream media outlets.  As Cernovich explains below, his sources for the Susan Rice story were actually folks working at Bloomberg and the New York Times who revealed that both Eli Lake (Bloomberg) and Maggie Haberman (NYT) were sitting on the Susan Rice story in order to protect the Obama administration.

    “Maggie Haberman had it.  She will not run any articles that are critical of the Obama administration.”

     

    “Eli Lake had it.  He didn’t want to run it and Bloomberg didn’t want to run it because it vindicates Trump’s claim that he had been spied upon.  And Eli Lake is a ‘never Trumper.’  Bloomberg was a ‘never Trump’ publication.”

     

    “I’m showing you the politics of ‘real journalism’.  ‘Real journalism’ is that Bloomberg had it and the New York Times had it but they wouldn’t run it because  they don’t want to run any stories that would make Obama look bad or that will vindicate Trump.  They only want to run stories that make Trump look bad so that’s why they sat on it.”

     

    “So where did I get the story?  I didn’t get it from the intelligence community.  Everybody’s trying to figure out where I got it from.  I got it from somebody who works in one of those media companies.  I have spies in every media organization.  I got people in news rooms.  I got it from a source within the news room who said ‘Cernovich, they’re sitting on this story, they’re not going to run it, so you can run it’.”

     

    “If you’re at Bloomberg, I have people in there.  If you’re at the New York Times, I have people in there.  LA Times, Washington Post, you name it, I have my people in there.  I got IT people in every major news room in this country.  The IT people see every email so that’s how I knew it.”

     

    And while this could certainly be interpreted as a clever ploy to protect his real sources, Cernovich’s video comments seem to be validated by both his tweet from yesterday afternoon…

    //platform.twitter.com/widgets.js

    …and the fact that Eli Lake of Bloomberg was able to conveniently confirm Cernovich’s story with his own article this morning. 

    All of which just begs the question of what other stories the mainstream media is sitting on in an effort to protect their chosen candidates.

Digest powered by RSS Digest