Today’s News 17th June 2018

• Tesla Belonging To Mary McCormack Husband Spontaneously Combusts In LA Street

  Who knew that Teslas now come with Elon Musk’s famous “not a flamethrower” flamethrower included?

  The Tesla Model S belonging to the husband of actress Mary McCormack spontaneously combusted in Los Angeles. In a late Friday tweet, the West Wing actress said that flames burst out of the undercarriage – most likely the car’s battery compartment – while her husband was driving the car on Santa Monica boulevard in Los Angeles.

  “No accident,out of the blue, in traffic on Santa Monica Blvd.  Thank you to the kind couple who flagged him down and told him to pull over. And thank god my three little girls weren’t in the car with him”

  @Tesla This is what happened to my husband and his car today. No accident,out of the blue, in traffic on Santa Monica Blvd. Thank you to the kind couple who flagged him down and told him to pull over. And thank god my three little girls weren’t in the car with him pic.twitter.com/O4tPs5ftVo

  — Mary McCormack (@marycmccormack) June 16, 2018

  https://platform.twitter.com/widgets.js

  In the 45-second clip, a police officer can be heard warning onlookers to “stand clear” of the car in case it blows. It was not immediately clear if McCormack recorded the footage, although police dispatch radio can be heard in the background.

  The latest Tesla fiasco comes amid growing criticism of Musk’s production methods and scrutiny for Tesla over the safety of its vehicles following multiple crashes in recent months, several of which deadly.

  A recent NTSB report found a Model X car running on autopilot was accelerating as it hit a barrier on a California highway, killing the driver. Regulators said that the lithium-ion battery in the electric car was breached following the crash, causing a fire to break out as the wreckage sat by the roadside, then proceeded to reignite several days later.

  It increasingly appears that the Tesla car battery is the car’s – and company’s – weakest link, prompting questions into the logic behind Musk’s investment of billions of dollars into battery production facilities.

  In a recent controversial outburst, Musk lashed out at reports scrutinising Tesla car safety, saying the media focuses on its accidents while ignoring more frequent crashes of conventional vehicles.

  Alas, incidents such as McCormack’s will not help the car’s track record, especially if the Hollywood elite, led by anti-Trump resistance leader, Chelsea Handler, make it “uncool” for celebs to be seen in the spontaneous combusting sarcophagus. This is what an outraged Handler said in response to the burning Model S:

  This happened to my bff today. Who drives 3 girls daily in this car. @elonmusk @Tesla I have the same model and make. So, how many of these are on the road?

  This happened to my bff today. Who drives 3 girls daily in this car. @elonmusk @Tesla I have the same model and make. So, how many of these are on the road? https://t.co/ylEntSWYcD

  — Chelsea Handler (@chelseahandler) June 16, 2018

  https://platform.twitter.com/widgets.js

• U.S. Disaster Zones: Are You Living In A Place Where Disasters Are Common?"

  Authored by Sara Tipton via ReadyNutrition.com,

  With constant media bombardment of fears of a nuclear war, many have begun to prepare for a disaster. But government uncertainty isn’t the only thing on the minds of the masses. Volcanic activity appears to be increasing and earthquakes seem to be getting more severe.

  

  That begs the question: do you live in a disaster zone?

  In just the past 16 years, parts of Louisiana have been struck by six hurricanes. Areas near San Diego were devastated by three particularly vicious wildfire seasons. And a town in eastern Kentucky has been pummeled by at least nine storms severe enough to warrant federal assistance. These are obvious red flag areas, but what about the rest of the country?

  

  The New York Times has put together a map showing which areas in the United States were subjected to the most disasters which caused monetary losses by ZIP code between 2002 – 2017.

  

  The statistics for living in the “red zones” in the above map are not comforting either. About 90 percent of the total losses across the United States occurred in ZIP codes that contain less than 20 percent of the national population, according to an analysis of data from the Small Business Administration.

  In the first three months of 2018, billion-dollar storms hit the United States three times. By contrast, in the first three months of an average year, just one disaster that causes more than a billion dollars in damages occurs,according to National Oceanic and Atmospheric Administration records dating back to 1980.

  The National Oceanic and Atmospheric Administration (NOAA) attempts to calculate the full cost of major disasters, namely those that cause more than a billion dollars in damages. It estimates that 2017 was the costliest year on record, with 16 billion-dollar disasters that together cost the United States more than $300 billion. While natural disasters are often unpredictable, the annual losses from billion-dollar disasters, which were adjusted for inflation, have increased over the last 40 years.

  Because the federal government continues to use taxpayer funds to subsidize the disaster zones, critics feel that the money is being wasted by continuing to help people live in places that they know will be hit by a hurricane or deadly storm. Christina DeConcini, the director of government affairs at the World Resources Institute, said that instead of just being responsive, the government should stress building for resilience against the disasters that continue to cost people money.

  About 4 percent of all hurricanes that make landfall globally hit the United States, said Robert Mendelsohn, an economist at Yale University who studies the damage caused by hurricanes. However, 60 percent of worldwide damage from hurricanes happens in the United States. Dr. Mendelsohn attributed this partly to federal government programs that discourage citizens and local governments from building walls to protect housing near the coast. Only in the United States do relief programs and subsidized insurance make it attractive for people to move toward disaster-prone areas, he told The New York Times.

  People continue to live in disaster areas mostly because of their financial situation, whether it be a lot or too little money. Phil Klotzbach, an atmospheric scientist at Colorado State University, said that the rise in population and wealth near the coasts was contributing to most of the increase in the destruction caused by hurricanes. Bigger and more expensive homes require more money to repair in the event of a natural disaster, and many even in the middle class are being squeezed out of coastal areas due to the cost of living. In 2016, there were more than 3.6 times as many homes in states that border the Gulf of Mexico and the Atlantic Ocean as in 1940, according to the Census Bureau.

  

  Others say that their family ties and lack of funds to support a move are keeping them in areas prone to natural disasters. Linda Lowe, the president of a historical society in flood-prone Olive Hill, Kentucky said that rather than move the town, “it’s easier to throw your hands up and say, ‘Forget it.’” Dr. Irwin Redlener, the director of the National Center for Disaster Preparedness at Columbia University said rationality often goes out the window when discussing things like disasters and their destructive potential on a person’s life.

  “Abandoning a location and moving a city makes sense from a scientific, risk point of view, but the fact is that to get to a place culturally and psychologically where that conversation can be tolerated is a difficult thing to imagine,” said Redlener.

  “It’s not all that rational — but I guess a lot of these things are not really rational,” he added according to The New York Times.

  But some residents have decided to stay in disaster zones and use their time between hurricanes to prepare themselves for the next storm. It’s often the best way to protect against monetary and life losses, said one Louisiana resident. Susan McClamroch, who works at a museum in Slidell, Louisiana, said that locals joke that they “start eating everything in the freezer” this time of year because of the likelihood of a power failure after a hurricane.

  If you cannot relocate, or do not wish to relocate, consider storing some food and water in a safe place just in case disaster strikes.

  

• The Sources Of Tax Revenue For Every US State, In One Chart

  In the aftermath of Trump’s tax reform, which many mostly coastal states complained would cripple state income tax receipts and hurt property prices, S&P offered some good news: in a May 30 report, the rating agency said that “[s]tate policymakers have a lot to cheer,” noting the current slowdown in Medicaid signups and dramatically higher revenue collections, to the tune of 9.4%, are significantly boosting state fiscal positions.

  

  Still, the agency’s view is that current conditions are “most likely only a temporary respite” (very much the same as what is going on at the federal level) means that the agency is likely to focus on “a state’s financial management and budgetary performance during these ‘good’ times” to determine its “resilience to stress when the economy eventually softens” according to BofA.

  To that end, S&P warns that:

  “[f]or those [states] that either stumble into political dysfunction or – out of expedience – assume recent trends will persist, this moment of fiscal quiescence could prove to be a mirage.”

  For now, however, let the good times roll, and with real GDP growth tracking at 3.8% for 2Q18, state tax receipts should grow at a rate of over 10% based on historical correlation patterns, with the growth continuing at 9% and 8% in Q3 and Q4.

  

  This is gpod news for states that had expected a sharp decline in receipts, and is especially important for states heavily skewed to the personal income tax since revenue from that source should rise by over 14%, according to BofA calculations.

  Finally, the BofA chart below is useful for two reasons, first, it shows the states most reliant on individual income taxes from the Census Bureau’s most recent annual survey of tax statistics. Oregon – at 69.4% of total tax collections – is most reliant on individual income taxes, followed by Virginia (57.7%), New York (57.2%), Massachusetts (52.9%) and California (52.0%). More notably, it shows the full relative breakdown of how states collect revenues, from the Individual income tax-free states such as Florida, Texas, Washington, Tennessee, and Nevada, to the sales tax-free Alaska, Vermont and Oregon, to the severance-tax heavy Wyoming, North Dakota and Alaska, and everyone inbetween: this is how America’s states fund themselves.

  

  

• The Biggest Misconceptions About Working For A Hedge Fund

  Authored by Dan Butcher via eFinancialCareers.com,

  Of all the misconceived stereotypes about working for a hedge fund, the biggest one is around pay. Many people underestimate how long and hard you’ll have to work to achieve the eye-popping salaries and bonuses that make headlines.

  

  For every Chris Rokos, who earned around $900m over a decade working for Brevan Howard, there are plenty making decidedly less. Those who start out earn an average of $90-125k.

  “One of the biggest misconceptions people have is if you work at a hedge fund then you don’t really have to do a lot and you make a lot of money and you have a great life forever, but that’s not reality,” says Afroz Qadeer, the CEO of Kettle Hill Capital Management and a member of the Mid-Atlantic Hedge Fund Association. 

  “People think you’re essentially a master of the universe, but in reality, you put in a lot of hard work, a lot of long hours.”

  1. You will not earn millions working for a hedge fund unless you’re very lucky 

  David Kochanek, the publisher of the HedgeFundCompensationReport.com, agrees that it is common to overestimate how much a typical hedge fund professional makes. The owners of large hedge funds regularly make the rich lists, but it’s only the lucky few that earn over seven figures. “About half of the respondents in our study reported making between $100k and $300k,” Kochanek says.

  Less than 10% reported earning more than $1m in cash compensation. For those making north of a million dollars, more than 70% of their cash compensation was from their bonus, a portion of which they typically have to invest back into the fund.

  The Fund Compensation Report by SumZero suggests that hedge funds with between $5-10bn in assets under management are likely to pay you the most.

  2. You will work incredibly hard, often outside of your job description 

  When you start out at a hedge fund, expect your daily routine to involve long hours and a wide range of tasks. The smaller the firm, the wider the range of responsibilities employees are required to take on. “It is difficult to get a good job working for a hedge fund,” says George Schultze, the CEO of Schultze Asset Management and a member of the Hedge Fund Association’s board of directors. “Most hedge funds are small businesses and therefore their employee needs may include jobs that are not that glamorous.

  “Expect to work hard and wear lots of hats as you break into this industry,” he adds. “Know that there are limited openings so that competition can be extreme. Be prepared to work more for experience than for high levels of pay – that’s the best way to enter this business if you really want in.”

  Qadeer agrees that hedge funds tend to have a challenging working environment, which is exacerbated at smaller and medium-sized firms that don’t have a big support structure. “You’ll be doing more than one thing and you have to be prepared to get your hands dirty,” he says.

  3. All hedge funds are not the same 

  There’s a misconception that hedge funds represent a monolithic industry, says Victoria Hart, a portfolio manager at Pinnacle View Capital Management, a long/short equity hedge fund.

  Depending on the type, focus or investment style of the fund, the AUM, the turnover, the level of interaction with the co-founders or partners and various other characteristics, the experience of working at one hedge fund can be radically different from that of another. “They get lumped together, and then many stereotypes get drawn and associated to all [hedge] funds, without understanding that there are important distinctions between funds,” Hart says.

  4. Making it takes a lot of time 

  Some aspiring and early-career-stage hedge fund professionals underestimate how long it takes to master the skills and acquire the expertise required to succeed over the long term. On the investment side, you need to have real-life experience through many market cycles to appreciate how markets turn, Hart says. Sales/marketing requires time to cultivate relationships and learn the art of persuasion and selling techniques. And operations is riddled with many important details to learn, she noted.

  “[Another] misperception is that you need to be a rock star at just one thing,” Hart says. “All of these roles require multiple skills; you can’t just be good at only one thing.”

  You need analytical skills for an investment role, but you also need good communication skills to get your ideas across, she says. “Sales and marketing requires solid verbal and written communication skills, but also someone who is facile enough with math to understand the product.”

  5. It doesn’t pay off to be known as a jerk who loses his temper

  People who have the ability to perform well under pressure and possess the full range of skills, including emotional intelligence or “people skills,” are more successful over the long haul, says one hedge fund portfolio manager. In contrast, someone who flies off the handle and has a temperament that’s more volatile most of the time it means that individual’s emotional IQ is lower. That can limit some people’s career progression if they don’t compensate for those shortcomings with other factors.

  Short tempers won’t be tolerated in someone who can’t deliver, whereas for someone who delivers consistently strong performance, there’s tolerance for such behavior, even though it is not welcomed. Softer skills come into play more once a hedge fund manager becomes a bit more senior – dealing with conflicts and stress well is an important leadership skill.

  

• The End Of Merkel? CDU Lawmaker Admits Germany Could Have A New Chancellor "By The End Of Next Week"

  It’s looking increasingly likely that German Chancellor Angela Merkel may have attended her last G-7 conference.

  A day after the euro whipsawed on conflicting reports touting the collapse of Merkel’s governing coalition, a lawmaker from Merkel’s own party said the Chancellor could be out by the end of next week during an appearance on BBC World at One (via Express). On Friday, German media reported that Merkel’s junior coalition partner, the CSU, had announced the end of its alliance with Merkel’s CDU – though that report was quickly denied.

  While the German public’s anger over Merkel’s “open door” policy has been simmering for years, the instability within the ruling coalition – which features a decades-old political alliance between the CDU and CSU – intensified when Merkel decided over the weekend to veto a plan by Interior Minister Horst Seehofer aimed at controlling and reducing illegal migration. The minister’s refusal to back down has already shattered an uneasy truce between conservative backers and opponents of her liberal asylum policy.

  

  Kai Whittaker

  German MP Kai Whittaker, a CDU member, said Merkel’s clashes with Seehofer – who is demanding that German border police be given the right to turn back migrants without identity papers or who are already registered elsewhere in the European Union – are threatening to bring about “a new political situation. And probably a new chancellor.“

  As Whittaker astutely points out, the political crisis stems from the fact that the issue of immigration has become “a power question”.  The AfD, which outperformed expectations during Germany’s fall elections, owes its rise largely to its anti-asylum stance. And as the chaos builds, Whittaker explained that German lawmakers are largely in the dark about what is happening with the leadership.

  “We are in a serious situation because the question of the migration crisis evolved into a power question…the question is who is leading the Government? Is it Angela Merkel or is it Horst Seehofer? Everybody seems to be standing firm and that’s the problem.”

  […]

  There is a master plan to solve the migration crisis, which consists of 63 ideas of Horst Seehofer.

  Wittaker also pointed out that Seehofer’s clashes with Merkel could be linked to upcoming local elections in Bavaria, where the conservative party is concerned about retaining a majority.

  “This must have to do with the coming election in Bavaria because it is vital for the Conservatives to win an overall majority because that’s why they have a national importance.”

  “This kind of has the potential to diminish the authority of her and Horst Seehofer and it could well be that at the end of next week we have a new situation. Probably a new Chancellor.“

  Merkel has opposed what she sees as Seehofer’s heavy handed approach toward immigration, and has held meetings with members of her party seeking support for her failing asylum policies, which brought more than 1 million migrants to Germany in 2015, leading to a spike in violent assaults. However, many of Merkel’s allies are even demanding changes to her “open door” policy regarding migrants. Seehofer’s plan would replace an existing EU rule, which would allow Germany to send the asylum-seekers back to the first EU state they entered. For now, the coalition agreement is still in place. But if the German government collapses, or looks to be headed that way, expect even more volatility in the euro – and by extension, more strength for the US dollar (and pain for emerging markets).

  

• Affordability Crisis: Low-Income Workers Can't Afford A 2-Bedroom Rental Anywhere In America

  The National Low Income Housing Coalition’s (NLIHC) annual report, Out of Reach, reveals the striking gap between wages and the price of housing across the United States. The report’s ‘Housing Wage’ is an estimate of what a full-time worker on a state by state basis must make to afford a one or two-bedroom rental home at the Housing and Urban Development’s (HUD) fair market rent without exceeding 30 percent of income on housing expenses.

  With decades of declining wages and widening wealth inequality via the financialization of corporate America, and thanks to the Federal Reserve’s disastrous policies (whose direct outcome is the ascent of Trump), the recent insignificant countertrend in wage growth for low-income workers has not been enough to boost their standard of living.

  The report finds that a full-time minimum wage worker, or the average American stuck in the gig economy, cannot afford to rent a two-bedroom apartment anywhere in the U.S.

  

  According to the report, the 2018 national Housing Wage is $22.10 for a two-bedroom rental home and $17.90 for a one-bedroom rental. Across the country, the two-bedroom Housing Wage ranges from $13.84 in Arkansas to $36.13 in Hawaii.

  The five cities with the highest two-bedroom Housing Wages are Stamford-Norwalk, CT ($38.19), Honolulu, HI ($39.06), Oakland-Fremont, CA ($44.79), San Jose-Sunnyvale-Santa Clara, CA ($48.50), and San Francisco, CA ($60.02).

  For people earning minimum wage, which could be most millennials stuck in the gig economy, the situation is beyond dire. At $7.25 per hour, these hopeless souls would need to work 122 hours per week, or approximately three full-time jobs, to afford a two-bedroom rental at HUD’s fair market rent; for a one-bedroom, these individuals would need to work 99 hours per week, or hold at least two full-time jobs.

  The disturbing reality is that many will work until they die to only rent a roof over their head.

  The report warns: “in no state, metropolitan area, or county can a worker earning the federal minimum wage or prevailing state minimum wage afford a two-bedroom rental home at fair market rent by working a standard 40-hour week.”

  The quest to afford rental homes is not limited to minimum-wage workers. NLIHC calculates that the average renter’s hourly wage is $16.88. The average renter in each county across the U.S. makes enough to afford a two-bedroom in only 11 percent of counties, and a one-bedroom, in just 43% .

  FIGURE 1: States With The Largest Shortfall Between Average Renter Wage And Two-Bedroom Housing Wage

  

  Low wages and widespread wage inequality contribute to the widening gap between what people earn and mandatory outlays, in the price of their housing. The national Housing Wage in 2018 is $22.10 for a two-bedroom rental home and $17.90 for a one-bedroom, the report found.

  FIGURE 3: Hourly Wages By Percentile VS. One And Two-Bedroom Housing Wages 

  

  Here is how much it costs to rent a two-bedroom in your state:

  

  

  Case Shiller House Prices have continued to surge to bubble levels with growing demand for rental housing in the decade post the Great Recession.

  

  The report indicates that new rental construction has shifted toward the luxury market because it is more profitable for homebuilders. The number of rentals for $2000 or more per month has more than doubled between 2005 and 2015.

  Here are the Most Expensive Jurisdictions for Housing Wage for Two-Bedroom Rentals

  

  Here is how your state’s ranks regarding Housing Wage: 

  

  “While the housing market may have recovered for many, we are nonetheless experiencing an affordable housing crisis, especially for very low-income families,” said Bernie Sanders quoted in the report.

  The fact is, the low-wage workforce is projected to soar over the next decade, particularly in unproductive service-sector jobs and odd jobs in the gig economy, as increasingly more menial jobs are replaced by automation/robots. This is not sustainable for a fragile economy where many are heavily indebted with limited savings; this should be a warning, as many Americans do not understand their living standards are in decline. American exceptionalism is dying.

  Housing Wage And Median Wages For Occupations With Highest Projected Growth 

  

  The bad news is that for the government to combat the unaffordability crisis, deficits would have to explode because even more Americans would demand housing subsidies, setting the US debt on an even more unsustainable trajectory. Even though Congress marginally increased the 2018 HUD budget, the change in funding levels for some housing programs have declined.

  Changes In Funding Levels For Key HUD Programs (FY10 Enacted To F18 Enacted) 

  

  But wait a minute, something does not quite add up: consider President Trump’s cheerleading on Twitter calling today’s economy the “greatest economy in History of America and the best time EVER to look for a job.”

  In many ways this is the greatest economy in the HISTORY of America and the best time EVER to look for a job!

  — Donald J. Trump (@realDonaldTrump) June 4, 2018

  https://platform.twitter.com/widgets.js

  He may be right, of course, if you are looking for a low skill/wage job in the gig economy as there are plenty (from which you will be promptly fired), but even if you keep it, you will not be able to cover even the cost of rent.

  

• Jatras: It's Time For America To Cut Loose Our Useless So-Called "Allies"

  Authored by James George Jatras via The Strategic Culture Foundation,

  US President Donald J. Trump spent the last week or so churning out initiatives that seemed deliberately calculated to set his critics’ hair on fire:

  • He met as an equal with North Korea’s Kim Jong-un – who is a very bad man!

  • He stated again his willingness to meet with Russian President Vladimir Putin – an even worse man!

  • He mocked and threatened our trading partners – and slapped tariffs on them!

  • He suggested that an impenitent Russia (a very bad country!) should be let back into the genteel company of the Group of Seven!

  • He topped everything off by suggesting that Russian-speaking Crimea should be part of – Russia!

  As summed up by vulgar Republican, Never-Trump apparatchik Rick Wilson:

  ‘After the last week, Trump is clearly a man who puts the dick in dictator. He’s a fanboy of Putin, Kim, Duterte, and a dog’s breakfast of the worst examples of oppression, thuggery, and anti-Western values the globe has to offer. [ . . . ]

  ‘[T]his week, Trump’s love of authoritarians, dictatorships and his actions and words came together.  Donald Trump first went to the G-7 to wreck the proceedings with a combination of insult-comic schtick, diplomatic demolition derby, Putin cheerleading, and giant-toddler petulance.

  ‘He followed that with the Singapore Shitshow. It was a monstrous reality TV event, as was intended. But it left our putative allies wondering at the new Axis of Assholes Trump has joined—the CRANK: China, Russia, America and North Korea. By the end, it didn’t feel like he was after denuclearization but management tips from the portly little thug Kim.

  ‘For the American president to normalize, excuse, and ally himself with the worst of the world’s bad actors while insulting, degrading, and destroying our allies and alliances would be appalling in any circumstance. The fact that Trump acts like a bumbling, eager fraternity pledge, desperate to join Phi Sigma Dictator makes it all the worse.’

  For the moment, let’s put aside Trump’s alleged sympathy for authoritarianism and focus on the accusation that Trump is “insulting, degrading, and destroying our allies and alliances,” a view held across the Establishment spectrum, from neoconservatives like Max Boot to far-Left Democratic California Congresswoman Maxine Waters (famed for her concern about Russian aggression in nonexistent Limpopo). How dare Trump threaten such valuable relationships!

  

  Except these so-called ‘allies and alliances’ aren’t valuable to the United States. They’re a positive danger and a detriment.

  Let’s get one thing straight: the United States has no real allies. There are countries we dominate and control, more properly termed client states or even satellites. (True, given Israel’s and Saudi Arabia’s lock-stock-and-barrel ownership of the American political class, it seems rather that we are their clients, not the other way around…) Conversely, on an almost one-to-one correspondence, countries that are not satellites are our enemies, either currently (Russia, North Korea, Iran, Syria) or prospectively (China).

  But do we have any actual allies – that is, countries that provide mutual security for the United States, and whose contributions actually make us Americans safer and more secure in our own country?

  Try to name one.

  Let’s start with the granddaddy of our alliances, NATO. How does having a mutual defense pact with, say, virulently anti-Russian Poland and the Baltic States make America more secure? How does, say, tiny corrupt Montenegro, contribute to US security? Are these countries going to defend America in any conceivable way? Even if they wanted to, how could they possibly?

  For that matter, against what ‘threat’ would they defend us? Is Latvia going to help build Trump’s Wall on the Mexican border?

  ‘Our NATO allies help out in Afghanistan,’ we are told.  NATO-Schmato – it’s Americans who do almost all the fighting and dying. It’s our treasure being wasted there. Maybe without the fig leaf of an alliance mission, we might long since have reevaluated what we still are doing there after 17 years.

  But comes the answer, ‘Russia!’ Except that Russia isn’t a threat to the United States. Despite their hype even the most antagonistic Russophobic countries in NATO themselves don’t really believe they’re about to be invaded. And even if they were, that still doesn’t make Russia a threat to us – or wouldn’t except for the very existence of NATO and a forward American presence on Russia’s borders and in the Black and Baltic seas littorals. How does gratuitously risking conflict with the one country on the planet whose strategic arsenal can annihilate us make Americans safer?

  As Professor Richard Sakwa has observed, ‘NATO exists to manage the risks created by its existence.’

  Let’s look at other supposedly valuable alliances.

  Why do we need South Korea and Japan? ‘China!’ But except for a nuclear stockpile much smaller than our intercontinental deterrent China doesn’t present a military threat to us. ‘Yes, but Beijing poses a danger to South Korea and Japan.’ Maybe, maybe not. But even if that is so why is it our problem?

  Why do we need Israel, Saudi Arabia, UAE, and bunch of other Middle Eastern countries? We aren’t dependent on energy from the region as we arguably were when Jimmy Carter proclaimed a vital national interest there four decades ago. ‘Well then, Iran!’ But the Iranians can’t do anything to us. ‘Yes, but they hate Israel, Saudi Arabia, etc., etc.’ Again, what’s that got to do with us?

  In each case the argument of a US interest is a tautology.

  The US ‘needs’ allies for the sole purpose of defense against purported threats not to us but to those very same allies. It’s a self-licking ice cream cone.

  It would be bad enough if these faux alliance relationships were only detrimental in terms of getting embroiled in quarrels in which we have no interest, wasting money and manpower in areas of the world where our security is not at stake. But there’s also a direct economic cost right here at home.

  Based on the claimed need for “allies” US trade policy since World War II could almost have been designed to undermine the economic interests of American workers and American producers. Starting with Germany and Japan, our defeated enemies, we offered them virtually tariff-free, nonreciprocal access to our huge domestic market to assist with their economies’ recovery from wartime destruction; in return, we would take their sovereignty: control of their foreign and security policies, as well as their military and intelligence establishments, plus permanent bases on their territory.

  This arrangement became the standard with other countries in non-communist Europe, as well as some in the Far East, notably South Korea. As much or more than puffed-up claims of military threats (and companies that benefit from inflated military spending) lopsided trade is the glue that keeps the satellites in place. In effect, our “allies” cede geostrategic control of their own countries and are rewarded at the expense of domestic American economic interests. Already of questionable value in its heyday, this pattern not only survived the end of Cold War 1 but continued to grow, contributing to the rise of Cold War 2.

  Put into that context, this is where Trump’s tariffs dovetail with his other blasphemies, like expecting the deadbeats to pony up for their own defense. He challenges them to reduce tariffs and barriers to zero on a reciprocal bilateral basis – knowing full well they won’t do so because it would spoil their cozy arrangement at the expense of American workers. He threatens the sanctity of the North Atlantic Treaty’s vaunted Article 5 obligation of mutual defense on whether countries meet a two percent of GDP level of military spending – knowing that few of them will since they don’t in fact face any external military threat and would rather keep the money.

  In his own unvarnished, zigzaggy way, Trump is doing what he said he would: putting America and Americans first. As he has said, that does not mean hostility towards other countries, whose leaders have aduty to put their countries and peoples first as well. It means both stopping our allies’ sandbagging us, while restoring to them their unsought-for – and for many of them, undesirable – sovereignty and independence.

  In the final analysis, what the likes of Rick Wilson are really afraid of is disruption of a decades-old, crooked racket that has been so lucrative for countless hangers-on and profiteers. As James P. Pinkerton, former aide to Ronald Reagan and George H.W. Bush, describes it:

  ‘[T]he basic geopolitical foundations of the last seven decades are being challenged and shifted – or, as critics would prefer to say, being subverted and betrayed. Yet in the meantime, even as his myriad foes prepare their next political, legal, and punditical attacks, Trump is the man astride the world stage, smiling, shaking hands, signing deals – and unmistakably remaking the old order.’

  Let’s get on with it.

  

• Epidemic Of New York Cab Driver Suicides Continues With 6th Death Since November

  It looks as though Uber’s skirting of taxi medallion regulations has once again unfortunately claimed the life of a New York taxi cab driver. In what can only be described as the latest in an epidemic of suicides by cab drivers in New York, the Post reported over the weekend that Abdul Saleh, a 59 year old cabbie, hanged himself in his Brooklyn apartment.

  

  Like many other New York taxi cab drivers, Saleh was having trouble paying for the cost of his medallion – the value of which has likely collapsed in recent years. His business partner, who had reportedly ditched him to drive for Uber, stated that though he had been short in his weekly medallion payments in the past, one of his latest payments fell much shorter than the others. The New York Post reported:

  Saleh drove a yellow cab for 30 years, Chaudhary, 36, said.

  Chaudhary said that they leased a taxi and medallion together, splitting the night and day shifts, but that within the past several months, Saleh couldn’t make the weekly lease payment.

  Saleh — whom Chaudhary described as single but with family in his native Yemen — sometimes would be short by as little as $60, but for the last payment, he was $300 short.

  The article continued, stating that Saleh was recently depressed and noting that many cab drivers have seen their retirement plans go up in smoke as a result of Uber:

  Making finances even tighter, Chaudhary began driving for Uber, leaving Saleh without a partner.

  Chaudhary said he last spoke to Saleh three or four days ago.

  “He sounded upset and depressed,” Chaudhary recalled. “He said he didn’t feel good.”

  “I know he wasn’t making enough money to pay his lease,” he said. “He was short here and there, and I used to have to help him out. He said he didn’t know how to survive.”

  New York Taxi Workers Alliance director Bhairavi Desai lamented the plight of Saleh and others facing rising competition from ride-hailing services.

  “These drivers can no longer see retirement in sight and can’t imagine continuing to work such a grueling job until their last day on earth,” she said.

  As the Post stated, this is only the most recent of such incidents. Alarmingly, it is the sixth such suicide by a New York taxi driver since November. It is becoming an epidemic.

  In the past eight months, five other cab and livery drivers have killed themselves in the face of financial strain.

  In May, cabby Yu Mein “Kenny” Chow flung himself in the East River off the Upper East Side.

  In March, cabby Nicanor Ochisor, 65, hanged himself in his garage in Maspeth, Queens.

  In the most dramatic case, livery driver Douglas Schifter killed himself with a shotgun outside City Hall on Feb. 5.

  He left a Facebook post reading, “I don’t know how else to make a difference other than a public display of a most private affair.”

  It was only 2 weeks ago when we reported about the last NY cab driver suicide.

  May saw the fifth NYC taxi driver commit suicide in five months, an alarming trend which is gaining momentum. Yu Mein Chow, a 56-year-old immigrant, living in Queens, was found dead in late May, floating down the East River near the Brooklyn Bridge.

  Seven years ago, Chow financed a $700,000 taxi medallion that allowed him to operate a cab throughout the city. Shortly after, he realized with the introduction of ridesharing apps that his ability to service the debt was unsustainable; only instead of declaring bankruptcy, he chose to end his life.

  

• The 4 Stages Of The Collapse Of Venezuela

  Authored by J.G. Martinez D. via The Organic Prepper blog,

  When looking back at the collapse of Venezuela, I see that nothing there happened which was new.

  

  As many other countries that have experienced similar circumstances can attest, we went through 4 stages of collapse.

  Stage 1 – The Exile

  The first stage was the exile, voluntary for those outstanding opposition members of the political world, and that could foresee and feel the first impacts of the delinquent mafia.

  These are politicians that understood exactly what the taking over the Supreme Court in 2015 was about: a seizing and power consolidation upon the occupation of the Justice system, subordinated to the President figure. This would block any further attempt of judging the politicians of the Socialist Party, and anyone who collaborate with them, no matter the crimes committed.

  It is very likely that they had first-hand information, and they knew what was about to come. They tried to warn what was coming up to the entire population. Some still do it, like Pablo Aure, or the journalist Braulio Jatar (prisoner at home and can´t make public statements) and the journalist Tamara Suju, and they received the first threats, the first incarcerations, and even political participation prohibitions were given. Possible opposition candidates like Leopoldo Lopez and Capriles are no longer an option: they were totally sold and corrupted. (Capriles received money from Odebrecht bribes, according to the CEOs statements)

  Stage 2 – The Upper Middle-Class Migration

  The second stage was the upper-middle-class migration.

  Those professionals who could slowly see their life quality diminishing, and albeit having their properties and extended families, decided to flee away. Given the good level of education (many of them with 4thlevel studies) they could go through the process without too much of a struggle.

  After all, this has happened in a lot of countries, and we were not the exception. Fortunately, the free college education (something that differentiated Venezuela from other countries in South America) allowed access to third level studies to those who really appreciated them, and with the needed financial capability and endurance to finish them and become professionals (usually with help of the entire family).

  A lot of medicine, healthcare, engineering, and law professionals come from the lower middle class, just like myself and almost my entire extended family. There are a lot of stories about the grandma having to sell “arepas” in the streets, or cleaning houses and offices, just so their sons and daughters could become factory laborers or medium level technicians, and their descendants could become MDs, lawyers, and engineers.

  The oil revenues, invested in good education in the 80s and 90s decades was one of our strengths. However (remember the so-called “Cultural Revolution in China”?) after the leftist wing took over the country, this changed drastically. The resources for universities and state-sponsored educational institutions were cut off. The salaries for the education professionals are a joke, as are most of the salaries of the working class.

  The implantation of the leftist doctrine in the army educational institutions permeated and undermined the republican education, allowing a “revolutionary” influence that has resulted extremely toxic for the moral and ethical values that our armed forces once had. The respect for our Constitution no longer exists, neither, in the Army. In the name of the so-called “Revolution” that no longer exists but in the shallow, empty words that compose the increasingly weaker, arrogant (and now desperate) speeches of the mafia expositors, our Constitution has been stepped on, torn, and violated an overwhelming number of times.

  The dissidents, like me, that once realized where this was really going, are now the majorities, and these are being subjugated by hunger and disease. Most of the military officers are now under a strict surveillance by the intelligence organizations, and perhaps some others that we don´t even know.

  The disassembly of the antique republican army structure is already complete, with young, illiterate officers with medium-high ranks but without any formal instruction to deserve them, and total impunity. Ranks are for providing “authority”, getting throughout posts without being checked, and imprisoning people without a court order. And of course, this is illegal, but they do it anyway. Before Hugo´s mess, send someone to prison was not so easy. These days, people have been in jail just for tweeting how p***d off they are with the mafia. This can be verified in the social networks such as Twitter and Facebook.

  It was not my intention to write a merely political article, but here it goes. The consequences of this political mess is what has kicked us out of our country.

  Stage 3 – Seizing Private Property

  This is incredibly painful for me, as the third stage seems to be starting: taking the private properties off the hands of the unarmed owners. In Villa Rosmini, Maracaibo city, Zulia state they demolished the gate of a subdivision with a payloader when the neighbors refused to allow in the police and the thugs.

  There was not even one shot at the “authorities” destroying private property: they were there protecting to the operator of the payloader.

  They are going to “assign” the empty homes to Colectivos gangs, and they are going to be spying for the government and collecting information about the neighbors.

  Stage 4 – Locking Up Dissidents

  It is the third stage, collecting information for the communist mafia that will propel the next. When they go home after home in the 4th stage, they will prepare concentration camps for the dissidents, as it already happened in Russia and China.

  I knew this was going to happen, after witnessing Uncle Hugo seizing buildings in the center of Caracas, to “assign” them “to the poor”, whoever these guys were (We hurried up to get our passports shortly after that, just in case, go figure).

  Many people laughed at me. Now they don’t. Especially those who could not leave the country.

  I can’t believe I am writing about this right now. But I do know that sometimes the reality overcomes our wildest fantasies. Albeit I have never been a very religious man I can’t avoid to notice His intervention in my life, and I truly give thanks every day for all my blessings.

  Venezuela is a failed state

  It has started slowly, but the paint on the wall is there, fresh and dripping all over the place. The mafia has made of the State a failed one, has looted our national wealth, imprisoning those who opposed to this with violence and generated a constant terror in the citizens. This is a technique carefully used in those left (and Nazis) totalitarian governments, with a modern twist, if you want.

  International sanctions work against them, to a certain degree. But this is not enough. Destroying a gate with a payloader just because the neighbors don’t want their subdivision filled up with thugs, living next to their kids and elders…that is a very different fur of an animal. This is a total lack of respect for properties and people. This deserves to be punished, and very severely. It is an open intimidation.

  It is a crime against our Constitution and the rights that once were guaranteed by it.

  

Digest powered by RSS Digest