May 11

Today’s News 11th May 2017

  • North Korea Is A Major Opium Producer (Making It A Prime Target For The CIA)

    Authored by Whitney Webb via TheAntiMedia.org,

    When the U.S. overthrew the Taliban in the wake of 9/11 as part of its newly launched “war on terror,” it set the stage for the explosive growth of Afghanistan’s dying opium industry. A few short months before the invasion took place, the Taliban made headlines for having “dramatically ended the country’s massive opium trade” after the leader of the fundamentalist group had declared the substance to be un-Islamic. At the time, Afghanistan’s opium was used to produce 75 percent of the world’s heroin.

    But despite being squashed by the Taliban, the opium market made a dramatic comeback immediately following the U.S. invasion in October 2001. Not only was the opium trade restored, it surged drastically – rising from a production level of 185 tons under the Taliban (before the production ban) to 3,400 tons in 2002.

    Over a decade later, the amount of opium harvested annually continues to rise. Afghanistan’s opium is now used to produce 90 percent of the world’s heroin. This increase has been directly overseen by U.S. forces, who openly guard Afghanistan’s poppy fields. Indeed, during that same time, the U.S. government claims to have spent $8.4 billion on counternarcotic programs within Afghanistan.

    The dramatic increase in opium production in post-invasion Afghanistan has sparked speculation regarding the motives behind the aggressive action that the U.S. has recently taken towards North Korea, which is also a major opium producer.

    While government-sanctioned opium production took a hit after Kim Jong-un assumed power in 2011, things have changed drastically in recent months, largely due to Chinese sanctions that were announced in mid-February. The sanctions, created in response to a North Korean ballistic missile test, led China to refuse imports of North Korean coal. Coal represents 40 percent of North Korea’s exports to China.

    That drastic hit to the North Korean economy has apparently forced Kim Jong-un’s hand, as opium production has once again picked up. Kang Cheol-hwan, a North Korean defector and president of the North Korea Strategy Center, told the Yonhap News Agency that “the North is cultivating poppy fields again for drug smuggling as a way to secure funds to manage its regime.”

    While North Korea’s opium production is small compared to that of post-invasion Afghanistan, it is still significant. North Korea, according to the Chosun Ilbo, produces around 40 tons of opium annually — comparable to Pakistan’s opium industry. Most of its opium is smuggled into and sold in China and cannot be targeted by sanctions, since it is hard to trace on the black market.

    Some have speculated that North Korea’s return to opium production has caught the attention of the CIA, as the intelligence agency has a history of involving itself in opium trade and drug-running in general, as evidenced by its well-documented habit of managing drug supplies from Latin America to Asia.

    In addition, opioid addiction – in the form of both legal opiate painkillers and illegal drugs – is growing out of control in the U.S., with more opium being consumed within America than ever before. The onset of this epidemic coincided with the U.S.’ occupation of Afghanistan as, between 2002 and 2013, U.S. heroin use jumped by 63 percent, reaching a 20-year high. Heroin overdoses quadrupled in the U.S. within that same timeframe.

    The U.S. government’s actions also suggest that it seeks to protect opium production, as has been made clear in its occupation of Afghanistan. For instance, the U.S. vehemently opposes opium legalization efforts and the State Department refuses to acknowledge eradicating opium as a primary goal, despite the billions that have been spent on counternarcotic programs.

    With tension increasing on the Korean Peninsula, the U.S. has put “all options on the table” in order  to prevent further missile tests and “provocations” from the Kim Jong-un regime, including warnings that the U.S. may soon find itself in a “major, major conflict” with North Korea.

    If North Korea finds itself targeted for regime change, history suggests that the U.S. military may end up guarding its poppy fields as well.

  • The Consensus Echo Chamber Take On Trump Firing Comey Is All Wrong

    Authored by Mike Krieger via Liberty Blitzkrieg blog,

    The unanimous very smart person take on Trump’s firing of James Comey is that it’s a political disaster which will lead to total ruin and possibly his impeachment.

    I disagree.

    The key factor that will determine how this ultimately turns out hinges largely on whether or not there was actual coordination between the Trump campaign and the Russian government to sway the election through hacking or other nefarious means. Personally, I don’t think there was, which is why I don’t expect Donald Trump to be removed from office. The consensus view right now is that Trump’s firing of Comey offers further circumstantial evidence that he’s trying to cover up coordination with Russia in order to end the ongoing investigation. This is certainly a possibility to consider, but it’s definitely not the only possibility, nor is it the most likely explanation.

    First, the optics. The timing of this move looks unquestionably bad, particularly if a story published in today’s New York Times is correct. It reports:

    WASHINGTON — Days before he was fired, James B. Comey, the former F.B.I. director, asked the Justice Department for a significant increase in money and personnel for the bureau’s investigation into Russia’s interference in the presidential election, according to three congressional officials who were briefed on his request.

     

    Mr. Comey asked for the resources last week from Rod J. Rosenstein, the deputy attorney general who wrote the Justice Department’s memo that was used to justify the firing of Mr. Comey this week, the officials said.

     

    Mr. Comey then briefed members of Congress on the meeting in recent days, telling them about his meeting with Mr. Rosenstein, who is the most senior law enforcement official supervising the Russia investigation. Attorney General Jeff Sessions recused himself from that inquiry because of his close ties to the Trump campaign and his undisclosed meetings with the Russian ambassador.

     

    The timing of Mr. Comey’s request is not clear-cut evidence that his firing was related to the Russia investigation. But it is certain to fuel bipartisan criticism that President Trump appeared to be meddling in an investigation that had the potential to damage his presidency.

    If this is accurate, I think it’d be impossible for any honest person to determine that the above played no role in Trump’s firing of Comey. The next conclusion is that this means Trump is afraid of the ongoing Russia investigation — where there’s smoke there’s fire, right?

    While that could be the case, there are other explanations. First, Trump simply may have been sick and tired of Comey, just as most Americans, including myself, are sick and tired of him. Comey isn’t the most popular guy out there. Indeed, high profile Democrats have been incessantly complaining about him, with Hillary Clinton once again publicly blaming him for her election loss as recently as last week. Trump may genuinely think Comey is incompetent (after all he didn’t even look at the hacked DNC servers but let discredited private company CrowdStrike do the work), and Comey’s recent request to expand the Russia investigation may have further called his judgment into question in the eyes of Trump.

    This doesn’t mean Trump is guilty of coordination with Russia. For example, let’s assume for a moment that there was no coordination with Russia to sway the election. If that’s right, Trump and his team could quite legitimately view Comey’s insistence on more funding for the investigation look like incompetence or a personal vendetta. This would frustrate anyone, and it would especially irritate a person accustomed to firing whoever he wants, whenever he wants (after all, he had a show where he became famous for saying “You’re Fired”). As such, the overwhelming impulse for a guy like Trump is to fire Comey irrespective of whether or not there was any Russia conspiracy. This doesn’t make it the right thing to do, but it also doesn’t mean he’s in cahoots with Russia. It could simply be that an impulsive guy who’s accustomed to firing people at will decided to fire a guy who was increasingly getting on his nerves.

    Given what we know about Trump’s personality, I think his choice to fire Comey is consistent with both the scenario where he is guilty of Russia coordination, and one where he isn’t. The consensus narrative which claims Trump firing Comey is proof of his guilt and merely an attempt to cover up a Russia conspiracy, is an emotionally driven and hastily determined conclusion.

    To summarize, Trump’s dismissal of Comey looks bad, but it doesn’t mean he’s hiding anything. To me, it looks like a typical Trumpian move whether or not there’s any shadiness with Russia going on. Let’s now move on the the next part of the post: How does this play out politically in the near-term, and how will it affect his chances for reelection in 2020?

    While Trump often doesn’t seem to understand this, his true power comes from his base. By base, I don’t mean the tens of millions of people who voted for him, rather, I’m referring his hardcore fans who voted for him largely to disrupt the status quo. I’m referring to the dedicated MAGA people who had never really participated in politics before, but became energized by Trump. These people are the key to winning reelection in 2020.

    Despite all the noise made by D.C. “Never Trump” think tankers and pundits, they proved themselves to be irrelevant in 2016, as Trump won despite their vitriol. Trump’s base got him elected and Trump’s base will determine his prospects in 2020. Your average Republican doesn’t really matter. The average GOP voter would vote for a fire hydrant before Hillary Clinton, and these people aren’t going to vote Democratic or stay home in 2020 because Trump fired James Comey. In contrast, if Trump sufficiently pisses off the base, he’s finished.

    Trump’s base is absolutely giddy about the firing of James Comey, and that’s a win for Trump in my opinion. Trump’s base accurately sees the entire Department of Justice (which includes the FBI) as a total joke. An institution that primarily exists to protect elitist criminals. Considering the inability of the DOJ/FBI to jail a single bank executive for the financial crimes committed last decade, this view is entirely appropriate.

    James Comey has been a big part of this racket, so there’s no love lost for him. Comey’s termination is being cheered by Trump’s base, unlike his very unpopulist and oligarch-coddling moves up until this point, such as surrounding himself with Goldman Sachs bankers. If anything, this energizes a base that had become increasingly concerned about the neocon war mongers and financial crooks running rampant throughout his administration. This move plays perfectly into Trump’s base and will be seen as Trump taking it to the deep state.

    Unfortunately, Trump’s not really taking on any deep state, as was fully demonstrated earlier today when he was seen in the Oval Office with one of the deep state’s most notorious war criminals.

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    While I find the above far more offensive than the dismissal of James Comey, the hyperventilation emanating from the corporate media, Democrats and Never Trumpers actually gives Trump more cover to be an even more egregious pawn of the deep state and Wall Street. That’s because the firing of Comey gives him unwarranted street cred amongst the base, and the more the corporate media parrots squawk, the more the base will love it.

    Which brings me to the final and most important part of this piece. The entire Comey firing saga could go in several directions, but an increasingly likely outcome is the one I don’t see being discussed anywhere. First we need to ask ourselves, what’s likely to happen next? Calls for a special prosecutor and independent investigation into Trump-Russia collusion are likely to get louder and louder. Given the timing of the firing, I support this and I think there’s a good chance it’ll happen. I hope it does happen, as we really do need to put an end to all the speculation and hysteria one way or the other, once and for all. But here’s where it gets really interesting…

    If Trump really did coordinate with the Russian government to affect the U.S. election and indisputable evidence emerges, it will be an enormous scandal and he will likely be removed from office. Personally, I don’t think such evidence exists because I don’t think such collusion happened, but I support an independent investigation. On the other hand, what might happen if Trump didn’t collude with Russia?

    Here’s where Trump legitimately has a chance to destroy the Democratic Party once and for all. The Democrats have already been putting all their eggs in the Russia conspiracy theory basket, and this focus on Russia as opposed to jobs, healthcare, student loans, debt slavery etc., has made the American public think the Democratic Party is more out of touch than both Trump and the GOP. Given that’s where things stand today, imagine what’ll happen to the party and its leaders if they start spending 100% of their time pursuing this lead and then nothing comes up? What then?

    I’ll tell you what happens. The Democratic Party, as useless as it is today, will completely evaporate as a serious political opposition force in America. This is because it appears all of its handful of 2020 hopefuls seem to be completely hyperventilating and losing their minds about Comey’s dismissal and asserting that it represents proof Trump colluded with Russia.

    Imagine if Trump is cleared by an independent investigation? These Dems will look like complete imbeciles with horrible judgement who wasted the nation’s time while tens of millions of Americans struggled to make ends meet. This will destroy the party and lead to an easy Trump win in 2020. This is a potentially lethal trap for Democrats and they seem to be falling for it in unison.

    And give me a break on all of this sudden placing of the FBI up on a pedestal. As I remarked to Eric Holder last night on Twitter:

     

    To conclude, I think the “expert” pundit take on the Comey affair is completely wrong and missing the bigger picture. Most commentators are merely following their own biases and coming to conclusions based largely on emotions. I’m no fan of Trump and I think he’ll merely prove to be a useful tool of the deep state and Wall Street dressed in populist language. I don’t come to the conclusion in today’s post based on my desire for it to happen. In fact, what I’d really like to see is real and thoughtful opposition to his authoritarian nature and Wall Street ass-kissing, but we know we won’t be getting that from the Dems. Indeed, it’s becoming increasingly likely the entire party may end up falling on the sword that is the Russia conspiracy theory.

    As always, time will tell.

  • Connecticut State Capital Prepares For Bankruptcy Amid Collapse In Hedge Fund Revenue

    The state of Connecticut has been hit hard by the double whammy of a deteriorating local economy, coupled with a plunge in hedge fund profits – as well as hedge fund managers permanently relocating to Florida – leading to a collapse in tax revenues. According to the the latest Connecticut budget released last week, the state is reeling from the consequences of sliding tax revenue from the super-rich, i.e. the state’s hedge fund managers. The latest figures showed that tax revenue from the state’s top 100 highest-paying taxpayers declined 45% from 2015 to 2016. The drop adds up to a $200 million revenue loss for Connecticut.

    In a dramatic, if of questionable credibility, soundbite Department of Revenue Services Commissioner Kevin Sullivan says these wealthy people are “dramatically less wealthy than they were before.” He was referring to annual income, not actual asset holdings, because judging by the all time high in the S&P, the local financial elite have never had a higher net worth.

    “When you look at the top 75, top 50 … this is a group of wealthy people who are dramatically less wealthy than they were before,” said Kevin Sullivan, commissioner of the Connecticut Department of Revenue Services. “These folks, for a number of reasons, are either not realizing as much income or don’t have as much income.”

    Just don’t expect tears from the general public. Sullivan also noted how several international hedge funds have recently failed, resulting in “significant retrenchment” from investors. That drop in tolerance for risk brings smaller margins and ultimately less personal income for the state to tax, he added. It’s fascinating how the Fed’s central planning, superficially meant to restore “confidence” in a rigged, manipulated market is having such proound and adverse 2nd and 3rd order effects on state budgets.

    Sullivan also acknowledged part of revenue decline can also be attributed to “a handful” of wealthy individuals who moved to more tax-friendly states — an issue frequently raised by legislative Republicans, who argue Connecticut’s tax policies encourage the state’s super-rich to move out.

    Of course, for tax purposes it’s the actual income that matters, and as a result the steep decline has exacerbated Connecticut’s budget woes. The projected deficit for the new fiscal year beginning July 1 has now jumped from about $1.7 billion to $2.3 billion, while the deficit predicted for the second year of the state’s two-year budget is now about $2.7 billion.

    According to AP, lawmakers and the governor have already discussed the possibility of making deep cuts throughout state government, including to state colleges and universities and social services. Meanwhile, there’s a threat of about 4,000 layoffs if a $700 million labor concession deal isn’t reached with state employees. Lawmakers say these latest revenue figures make that agreement even more crucial.

    * * *

    Meanwhile, in a stark confirmation just how dire the state’s economic and fiscal situation has rapidly become, the Hartford Courant reports that city leaders in the state’s capital have taken a step toward bankruptcy, soliciting proposals from law firms that specialize in Chapter 9. It adds that the city is reviewing several firms and could hire an attorney as early as this week, sources with knowledge of the plans said.

    Facing a $65 million deficit next year and a $14 million shortfall this year, Mayor Luke Bronin has hinted for months that Hartford could file for bankruptcy, and said during his budget release in April that he was “not in a position to rule anything out.”  Bronin proposed cuts and concessions from the unions, but is still seeking $40 million in additional state aid to close next year’s budget gap. The city resorted to short-term borrowing to cover costs such as payroll payments this year.

    The mayor confirmed Tuesday that the city was looking at firms. “We have not engaged bankruptcy counsel, but we have had initial conversations with firms that have experience in Chapter 9 and municipal restructuring,” Bronin said. “Given the uncertainty of the state budget process and the depth of the state budget crisis, it shouldn’t surprise anyone that we might engage counsel in the near future.”

    Some, such as Council President Thomas Clarke II, who was briefed by Bronin on the prospect of hiring a bankruptcy lawyer, called the move premature. “I was told it was possible that a decision would be made before the end of this week,” Clarke said Tuesday. “It’s premature. We haven’t exhausted every option and every avenue for us to go down this road.”

    Maybe not yet, but time is fast running out.  Meanwhile, reminding the state that “we’re all in it together”, Bronin stressed that the state must be a partner in pulling Hartford “from the brink of financial ruin”, noting that more than half of the city’s properties are tax-exempt and that Hartford has limited options for revenue.

    “We’ve made clear for more than a year that Hartford’s fiscal challenge cannot be responsibly solved at the local level alone with the tools that we have,” Bronin said, “and we continue to push hard to build a new partnership with the state of Connecticut to put our capital city on a path to solvency, stability and growth.”

    However, as noted above, the itself has its own problems, with a more than $2 billion budget gap estimated for next year. It is unclear whether there is support in the General Assembly for bailing out Hartford.

    * * *

    Clarke said that if the city proceeds with legal representation, the council will look to hire its own lawyer. A key question members want answered is whether the mayor must get the council’s approval to file for bankruptcy, the Courant notes. The state statute covering municipal bankruptcy says that a city or town must receive consent from the governor, and that the governor “shall submit a report to the treasurer and the joint standing committee of the general assembly.” It doesn’t specify whether a mayor needs the council’s approval.

    In other words, if Bronin intends to go through with it, Hartfort may be in bankruptcy within weeks, if not days.

    Hartford wouldn’t be the first city in Connecticut to seek Chapter 9 protection. Bridgeport filed for bankruptcy in 1991, but a federal judge dismissed the petition, saying the city was capable of paying its bills. Other cities that have filed include Detroit, Stockton and San Bernardino, Calif., and nearby Central Falls, R.I.

  • Canada, Let's Not Minsky Words

    After tonight's significant downgrade and warning from Moody's about Canadian Banks, the following seems extremely prescient now.

    Authored by George Stockus via BeatlesOnBanking.com,

    Stability breeds instability – this was economist Hyman Minsky‘s lasting contribution to the craft.  The Minsky Moment , popularized during the 07-09 US housing crisis, basically suggests breeding animal spirits too long creates systemic problems.

    Essentially, the ongoing rises in asset prices back then created the sense of a new paradigm, that the elevated activity was safe, and home prices couldn’t fall – they’d never done so.  As the cycle progressed and prices rose, normal course mortgage lending turned to borrowing for speculation and then, ultimately, for ponzi-like leveraged derivative structures that proved unable to withstand volatility.  Turns out, Federal Reserve policy and over-sight engendered it all, and even Bernanke whistled into the then soon-to-be graveyard top of the market.

    There’s no reason Minsky thinking couldn’t apply today.  Central banks have forced years of emergency level interest rates and QE upon the markets with the very intent of manipulating asset prices higher and preached this in the name of stability.  Normal course lending has lead to borrowing for speculation, seen in real estate and margin stock trading accounts everywhere.

    As for Canadian real estate, the truth is Minsky instability could’ve been argued, say a year ago for example, and yet despite no real change in fundamental backdrop Toronto real estate prices have still risen by an additional 1/3 since.  The Canadian economy now relies on real estate for stability and growth and is in no position to cool the frenzy with higher interest rates.  Pretty safe to say that policy goals of stability are leading to instability.  So this is Minsky redux,  with a twist.  Central banks have created unstable market monsters that they neither can afford to feed nor fight.

    Pretty scary.

    Another truth is that it’s happened everywhere.  Increasingly, increasing the world’s cost of living to fight a world of too much debt places today’s central bankers in the history books as those who would double down on fighting Minsky’s warnings.

    It’s hard to universally claim Canada is driven by ponzi-like lending, but it’s easy to point out that record consumer debt levels include a record stretch in borrowing to chase these rising home prices.  So Home Capital’s breakdown should be viewed as a warning sign.  In fact, Canada’s big 5 banks came out to support the Equitable Group – maybe this should be viewed as the industry trying to contain cracks in their system?

    The stock price action in the big 5 banks seems to convey growing concern too, breaking down on higher volumes.  Is it just the HCG and mortgage market noise or are big picture markets sensing other issues in Canada too?

    Other issues?

    Oil.  Loonie.  NAFTA and Trump.  Metals markets.  Softwood lumber.  Seems Trump’s reflation trade could also be fading.  Between new questions over US trade policy and re-emerging China credit concerns buzzing again, the list of things that could unnerve Canadian markets over and above the real estate and consumer debt picture are popping up too.

    Maybe the most troubling signs regarding our real estate markets come from the powers that be.  After years of being so sanguine, only now is CMHC issuing concerns over select regional markets.  Finance Minister Morneau suggests there is no link between risk in housing markets in Toronto/Vancouver and HCG.  We’ve had ultra-low rates for several years and Bank of Canada head Poloz actually claimed low interest rates have nothing to do with fuelling speculation!   Is this the height of detachment?  Arrogant deflection?  Has he not studied Minsky? After this last decade, this statement may go down as the most fantastical  I can remember.

    Minsky laid out a salient concept and it was only several years ago that the world was brought to its economic knees experiencing it.  I know those in the position of policy influence are mandated to speak with tone and instil confidence.  Unfortunately recent history shows us that these powers that be, who steered us into the rocks, also end up being the ones who try to manage us out.  That makes me nervous.  That, and of course, the whistling.

    A few select Ben Bernanke quotes from back in the day.

    “House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.” Oct 05

     

    “Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.” Feb 06

     

    “At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”  Mar 07

     

    “All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.  The vast majority of mortgages, including even subprime mortgages, continue to perform well.  Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable.”  May 07

     

    “It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions.” Oct 07

     

    “The Federal Reserve is not currently forecasting a recession.”  Jan 08

     

    “The financial crisis appears to be mostly behind us, and the economy seems to have stabilized and is expanding again.” Aug 10

     

    “One myth that’s out there is that what we’re doing is printing money. We’re not printing money.” Dec 10

     

    “I wish I’d been omniscient and seen the crisis coming.” Dec 10

    Pretty sure Minsky didn’t suggest omniscience was required to avoid repeating our mistakes.

  • China Iron Ore Prices Crash Through Key Support To 6-Month Lows

    After a few short days of respite – suggested by some as indicative that the worst is over – China commodities are crashing again tonight with Dalian Iron ore snapping below 460 to its lowest since before Trump's election…

     

    This has erased the entire post-Trump reflation trade hope…

    The commodity has sunk on concern mine supplies will go on rising just as China’s mills enter a weaker period for demand and policy makers in Asia’s top economy rein in leverage. Stockpiles at mainland ports are near a record after robust shipments from Australia and Brazil, with miner BHP Billiton Ltd. citing the inventories as among risk factors that may tug prices lower. Citigroup Inc. has said there may have been forced sales by some traders in China.

    With all the industrials now red post-Trump…

    As Citi warned over the weekend, "We suspect that a good number of physical traders that are financially leveraged up to five times have been forced to destock due to rising short-term borrowing costs and the recent sharp price corrections."

    Citigroup isn’t alone in saying that some traders may be compelled to sell holdings into a falling market as China tightens. Shanghai Cifco Futures Co. said this week signs are emerging that traders are dumping their holdings.

  • Baltimore Has Become A Rotting, Decaying War Zone Amid Raging Opioid Epidemic

    Authored by Michael Snyder via The Economic Collapse blog,

     

    It is hard to believe that Baltimore was once one of the greatest cities in the entire world.  Unlike nearby Washington D.C., Baltimore is a blue collar city that is home to some of the hardest working people in America.  When I was in high school, my brother and I were huge fans of the Baltimore Orioles, and once in a while our parents would drive us from our home in Virginia all the way up to Baltimore to see them play.  As an adult, I spent a number of years living near D.C., and I would take frequent trips up to Baltimore. 

    To say that the city is in a state of decline would be a major understatement.  Everywhere you look there are abandoned buildings and homes, and as you drive through some of the worst areas you can actually see drug addicts just lying in the streets.  Just like so many other communities all over this country, decades of liberal policies have taken a brutal toll, and now the city is just a rotting, decaying shell of the glorious metropolis that it once was.

    There are some sections of Baltimore that you simply do not go into once the sun goes down.  And actually it isn’t a very good idea to go into those areas during the day either.  The crime in the city has gotten so bad that authorities have actually formally requested help from the federal government…

    According to The Baltimore Sun Newspaper, the city has logged in 118 homicides today with the projection of >400 murders for year’s end. It’s so bad here that Baltimore’s Mayor has asked the Federal Government for help in attempt to regain control. Even the police union sounds the alarm of an officer shortage leading to decrease in patrols. All of this is occurring as the Baltimore population declines, nearing a 100-year low, U.S. Census says.

    Through the end of April, Baltimore was on pace for the highest murder rate in the history of the city.

    Yes, you read that correctly.

    The primary factor fueling all of this violence is an opioid epidemic that is completely and totally out of control…

    The opioid epidemic is the quiet killer that has been leaving a trail of bodies on the streets of Baltimore.

     

    “The individuals that are putting these drugs on our street, they’re killing people on our street,” said deputy commissioner Dean Palmere of the Baltimore Police Department.

     

    Drug overdoses is expected to have killed 2,000 people statewide in 2016 and more than 800 in Baltimore alone.

     

    “There are more people dying from overdose here in Baltimore City, than there are dying of homicide,” said Baltimore City health commissioner Dr. Leana Wen in February.

    That last paragraph amazed me when I first read it.

    Even though Baltimore is on pace for the highest murder rate in the city’s history, more people are actually dying from drug overdoses.

    And now police in the city are warning of a new opioid that is reportedly “100 times more potent than heroin”.  It is called Carfentanyl, and it can kill people almost instantly.

    I would like to share with you a short YouTube film put out by Alastair Williamson just a few days ago entitled “The Baltimore Experience”.  No matter how much I write, I could never communicate the devastation in the city quite like this little video does…

    Did you see the part near the end where Williamson stops to offer a bottle of water to a man that is just lying in the street?

    Hopefully that particular man is not on anything, but it is quite common to see people lying around like zombies in cities where an opioid epidemic is raging.  These are very cruel drugs, and they will utterly consume you if you allow them to.

    The more drugs that come in, the worse the violence gets, and within the past 24 hours we have seen four more senseless murders in Baltimore…

    Two men were shot and killed Tuesday morning in west Baltimore, police said. Officers responded at 5:52 a.m. to the shooting on the 2800 block of Lanvale Street.

     

    Police said officers found the victims in and around a vehicle. Both had been shot in the head and were declared dead at the scene, police said.

     

    A 35-year-old man was fatally shot Monday evening in southeast Baltimore, police said.

     

    The victim, identified as Charles Gatuthu, 35, was shot in the head and body at about 7:45 p.m. in the 6100 block of Boston Street. He was taken to Johns Hopkins Bayview Hospital, where he died.

     

    A 25-year-old was shot and killed Monday afternoon in west Baltimore, police said.

    Of course Baltimore is far from alone.  On Monday, I wrote about how Chicago is becoming a gang-infested wasteland, and on Tuesday we got news of Chicago’s 200th homicide so far in 2017.

    And an official bulletin went out to all members of the Chicago police on Monday warning them about the “high-powered weapons” that gangs are now using to kill people…

    Chicago police issued a bulletin Monday warning its officers about gangs armed with high-powered weapons, after three people were shot to death over the weekend – including two attending a memorial for the earlier victim.

     

    Department spokesman Anthony Guglielmi said the three people who were killed in the shootings Sunday were all members of the same street gang.

    Sometimes it is hard to believe that this is still America.

    The precious people that are getting hooked on these drugs and that are committing these murders were once innocent little boys and girls.  Somewhere along the way they were led down the wrong path, and this is happening on a massive scale all over the nation.

    So what should we do?

    What we need are some real solutions.  We need to restore the principles and the values that this nation was founded upon, and we need people that are willing to step forward and take this nation in a different direction. In times of great darkness, light is needed the most, and at this moment in our history we are in desperate need of some lights.

  • Caught On Video: Hockey-Playing Putin Reacts To Comey Termination

    In a rare appearance of the Russian president in his natural sporting habitat, CBS’ caught up with Russian President Putin rink side and asked him about the firing of former Director Comey.  Here is a transcript of the conversation:

    Palmer: How will the firing of James Comey affect US-Russia relations?

    Putin: There will no effect. Your question, please don’t get mad, is silly. We have nothing to do with that. President Trump is acting in according with his competence, and in acordance with his law and constitution. And what about us? Why us? You see I am going to play hockey with the hockey fans. And I invite you to do the same.”

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  • Trump Tantrum: "Democrats Should Be Ashamed"

    At the end of a long 24-hour news cycle, it’s clear that one thing is still bugging President Trump – the hypocrisy of The Democrats.

    In a terse tweet tonight, Trump exclaimed “The Democrats should be ashamed. This is a disgrace!”  with the attached clip.

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    Where is the mainstream media on this? At last check, looking for what the evidence that Comey found that caused Trump to fire him.

  • Trump Named As "Risk Factor" In Company Filings 3x More Than Obama

    According to the research firm Sentieo, which spent hours and hours of time scouring the “Risk Factor” sections of 10-Ks and 10-Qs, Trump has been about 3x more likely to be cited by a publicly traded company in the U.S. as a “Risk Factor” in his first 100 days in office than was Obama.  Courtesy of the Wall Street Journal, here are a couple of histograms that highlight the comparison:

     

    Of course, there are multiple factors, some of which are unrelated to worries about a specific candidate’s policies, that go into the crafting of such risk factors.  For example, Trump was way more likely to be cited as a risk factor by healthcare companies in his first 100 days…though we suspect that is only because he’s entering office during a time in which it’s becoming increasingly obvious that Obamacare is an epic failure and needs to be saved from the brink of collapse. 

    Although the mainstream media is certainly trying, it’s pretty difficult for any serious person to blame Obamacare’s failure on the Trump administration.

     

    And, in other instances, we suspect Trump actually welcomed the notion of being a “risk factor”…here are just a few examples:

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    Meanwhile, both candidates were deemed of relatively equal risk by financial companies…Trump for, among other things, going after special tax treatment of carried interests at private equity firms and Obama for regulatory risk coming out of the great recession.

    President Trump expressed support for legislation ending treatment of carried interest as capital gain … we and possibly our unitholders would be required to pay a materially higher amount of taxes, thereby adversely affecting our ability to recruit, retain and motivate our current and future professionals. — Blackstone Group LP filings

     

    Due to the current economic environment and issues facing the financial services industry, as well as the effect of the change from the Bush to the Obama administration, we anticipate new legislative and regulatory initiatives over the next several years, including many focused specifically on banking and other financial services in which we are engaged. These initiatives will be in addition to the actions already taken by Congress and the regulators… — PNC Financial Services Group Inc. filings

     

    And while it’s probably not a fair comparison, given that Obama took office right in the midst of the great recession which was more attributable to Bush/Clinton, we would be remiss if we failed to point out that manipulated equity prices of today are far more enamored with Trump than similarly manipulated equity markets of 2008 were with Obama.

    Trump Obama

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