Mar 18

Today’s News 18th March 2020

  • US Army Halts Deployment Of Troops And Tanks To NATO's War Game Due To Pandemic Threat 
    US Army Halts Deployment Of Troops And Tanks To NATO’s War Game Due To Pandemic Threat 

     NATO was on the cusp of initiating a massive war drill called Defender-Europe 20. The 40,000 solider war game would have included 20,000 US troops and accompanied by heavy weaponry but was called off on Monday amid the Covid-19 outbreak across Europe.

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    “As of March 13, all movement of personnel and equipment from the United States to Europe has ceased. The health, safety, and readiness of our military, civilians, and family members is our primary concern,” US Army European Command said in a press release.

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    The exercise would’ve been the most massive deployment of US troops to Europe since the 1983 Operation Re-forger exercise at the height of the Cold War.

    US Army European Command said, “many details still being worked and discussed with our Allies and partners.” With a scaled-down exercise, the Army still “anticipates the armored brigade combat team already deployed to Europe will conduct gunnery and other combined training events with Allies as part of a modified Allied Spirit exercise.”

    The release said, “forces already deployed to Europe for other linked exercises will return to the United States.”

    We noted at the initial stages of Defender 20 at the Strategic Command Centre in Nebraska, with participation from US Defense Sect. Esper last month, conducted computer simulations of nuclear war between the US and Russia.

    The biggest war drill in decades was set to take place after the nuclear war simulation against Russia. Simultaneously, a Covid-19 pandemic is sweeping across Europe and crashing the global economy. Talk about unprecedented times… 

    So why did NATO pull the plug on the full-scale drill at the very last minute?

    The reason could be due to large troop movements across Europe that would’ve led to a further spread of the virus. 

    NATO could’ve been on the verge of an armed conflict with Russia, positioning troops and armored vehicles, under the guise of an exercise. 


    Tyler Durden

    Wed, 03/18/2020 – 02:45

  • Europe's 'Open Borders' System Faces Collapse Amid Covid-19 Outbreak
    Europe’s ‘Open Borders’ System Faces Collapse Amid Covid-19 Outbreak

    Update (0200ET): Leaders of the 26 European countries that are part of what is normally a free-movement zone also agreed Tuesday to shut their external borders to most nonresidents for the first time.

    “We are faced with a serious crisis, an exceptional one in terms of magnitude and nature,” European Council President Charles Michel said late Tuesday.

    “We want to push back this threat. We want to slow down the spread of this virus.”

    Other leaders phrased it in martial terms: “We are at war,” French President Emmanuel Macron said Monday.

    Until last week, citizens of the E.U. could move across the continent with ease, even as the virus slowly spread across its population. Just as a resident of Maryland can easily pack bags and head to Virginia, so, too, could a Pole cross into Germany.

    But no more.

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    As The Gatestone Institute’s Soeren Kern detailed earlier, as a growing number of countries close their borders to fight the coronavirus pandemic, the European system of open internal borders – a cornerstone of European integration – is on the brink of collapse.

    The so-called Schengen Area, which comprises 26 European countries, entered into effect in 1995 and abolishes the need for passports and other types of control at mutual borders. It is a key practical and symbolic achievement of European integration and is now falling apart.

    In a move packed with political significance, Germany, the largest and most powerful country in the European Union, on March 16 introduced controls on its borders with Austria, Denmark, France, Luxembourg and Switzerland after it registered 1,000 new cases of Coronavirus Disease 2019 (COVID-19) in just one day.

    Anyone without a valid reason to travel, German Interior Minister Horst Seehofer said, would be turned away at the borders. Travelers with symptoms of COVID-19 would be refused entry as well. German citizens and anyone with a residence permit, however, will be allowed to reenter Germany.

    “Protecting our population also requires measures to reduce the risk of infection from global travel,” Seehofer said.

    “We are dealing with a very aggressive and fast-spreading virus. We will have to deal with it for months. As long as there is no European solution, you have to act in the interest of your own people.”

    The decision to impose border controls represents a major reversal by the German government. Just a few days earlier, on March 11, German Chancellor Angela Merkel said, “In Germany, we believe that border closings are not the answer to fight the spread of the Covid-19 epidemic.” Her sentiment was echoed later that day by German Health Minister Jens Spahn, who stated, “We are not going to get rid of the virus by closing our borders. The virus is already with us and we have to get used to the idea.”

    On March 15, the German newspaper Bild reported that Merkel was still blocking all attempts by members of her cabinet to impose border controls. The infighting, however, had cost Germany valuable time in trying to contain the spread of the virus.

    Writing for the influential German blog Tichys Einblick, commentator Ferdinand Knauss, explained that Merkel was blocking border controls because the dogma of open borders is an ideological pillar of Merkelism:

    “In the face of the corona crisis, there were apparently discussions in the Federal Government about what most of our neighboring countries had long since done: consistent protective measures at the borders. Several of our neighboring countries — Denmark, Poland, Czech Republic, Austria — have largely closed their borders. In most countries, people from at-risk areas are strictly controlled upon entry. Not in Germany. You do not have to guess very long who prevents this. Only the Chancellor can do that. But why is she doing it?

    “In that fateful year of 2015, the ‘open borders’ became a conditio sine qua non [indispensable condition] for the continuation of Merkelism. That is why the dogma must be maintained. Merkel knows that the instruction to close the border, in general to take consistent national measures to protect her own citizens, would be tantamount to her own declaration of political bankruptcy.

    “So, as citizens become aware of the threat and their demand for protection increases, the corona crisis also becomes a crisis of Merkelism. It already is, as Merkel’s rejection of border protection measures shows. One of the decisive questions will be how the media, which are still largely loyal to Merkel, and the political and social establishment weigh in: The morality of openness to the world versus the protection from threats. The greater and more painful the risk of corona, the harder it will be to neglect the need for protection.

    “Merkel is now fighting. But as always in her chancellorship, she is not fighting for her country and its citizens, for which she is responsible. She is fighting for her power, for her legacy. When the citizens come to understand this, the corona crisis will have been Merkel’s last fight in the political arena.”

    Merkel’s stance had left Germany increasingly isolated, as a growing number of Schengen countries have introduced border controls:

    • Austria. On March 10, Chancellor Sebastian Kurz announced controls along the border with Italy and a ban on the entry of most travelers from there. Kurz said, “The utmost priority is to prevent the spread and thus the importing of the illness into our society. There is therefore a ban on entry for people from Italy into Austria, with the exception of people who have a doctor’s note certifying that they are healthy.” Interior Minister Karl Nehammer also announced a ban on all air or rail travel to Italy.

    • Slovenia. On March 11, Health Minister Ales Sabeder stated that the government had closed some border crossings with Italy and started making health checks at those remaining open in order to combat the spread of the coronavirus. He said that citizens would only be able to cross the border in six places while all other roads that crossed the border would be closed. Normally more than 20 crossings are open. Passenger train transport between the two countries has also been stopped and most bus companies have canceled routes to Italy. Sabeder said that foreigners with Slovenian residence permits would be allowed to enter Slovenia if they had a certificate that they have tested negative for coronavirus during the previous three days.

    • Poland. On March 13, Prime Minister Mateusz Morawiecki announced that, as of March 15, only Polish citizens or people with a Polish residence permit would be allowed to enter the country. Everyone returning home from abroad would be quarantined for 14 days. All international inbound passenger flights or trains are banned, but freight transport is not affected. “The state will not abandon its citizens,” Morawiecki said. “In the current situation, however, we cannot allow ourselves to keep borders open to foreigners.”

    • Switzerland. On March 13, the Swiss government reimposed border controls with other European countries. Switzerland, although not a member of the European Union, is part of the Schengen zone. Justice Minister Karin Keller-Sutter said that travel restrictions from Italy were aimed at preventing Italian patients from seeking access to Swiss hospitals. Asylum seekers were also subject to the restrictions. Swiss citizens, holders of a resident permit as well as cross-border workers and people transiting through Switzerland are still allowed to enter the country.

    • Denmark. On March 14, Prime Minister Mette Frederiksen imposed border controls on all traffic by air, land and sea until at least April 13. Danish citizens are allowed to enter but any non-Dane without a valid reason for travel will be denied entry. “We stand on uncharted territory,” Frederiksen said. “We are in a situation that looks nothing like what any of us have experienced before. It is going to cost us all. If we do not do this, we risk that the costs, human, health and financial, will be far, far greater.”

    • Hungary. On March 16, Prime Minister Viktor Orbán announced that, effective immediately, all passenger traffic into Hungary would be halted and only Hungarian citizens allowed to enter the country. Previously, the government had imposed controls on the country’s borders with Austria and Slovenia. All train travel was halted between Hungary and Croatia, Slovenia and Ukraine.

    • Spain. On March 16, Interior Minister Fernando Grande-Marlaska decreed the reestablishment of controls at all land borders. Only Spanish citizens, people with Spanish residency and cross-border workers will be allowed to enter national territory by land. The measure does not affect the transport of goods.

    The Czech Republic, Estonia, Greece, Latvia, Lithuania and Slovakia, in a bid to combat the spread of the coronavirus, also imposed border controls. Other European countries that are not part of the Schengen system, including Albania, Bulgaria, Romania, Serbia and the Republic of North Macedonia also introduced border controls.

    The Bulgarian Foreign Ministry, which advised its citizens to avoid travelling abroad, described the current state of affairs:

    “The situation at the land borders of European countries is constantly and drastically changing, which makes it impossible to travel to or from Bulgaria with all modes of transport.

    “With regard to the prevention of the spread of the coronavirus, there is almost no country in Europe that has not at the moment introduced restrictive measures — border closures or separate border crossing points, enhanced border controls, shutdown of flights, closure of airports.”

    The break-down of Europe’s system of open borders has been met with anger by those in favor of European integration. During a March 13 press conference in Brussels, Ursula von der Leyen, head of the European Commission, the administrative arm of the European Union, warned member states not unilaterally to close their borders:

    “The Single Market has to function. It is not good when Member States take unilateral action. Because it always causes a domino effect. And that prevents the urgently needed equipment from reaching patients, from reaching hospitals and the medical personnel. Ultimately, it amounts to reintroducing internal borders at a time when solidarity between Member States is needed.”

    In a desperate effort to save the Schengen system, Von der Leyen on March 16 proposed a 30-day entry ban into the European Union. The idea apparently was that if the EU’s borders were closed to the outside world, individual member states would not have to close theirs.

    Ironically, just a few days earlier, Von der Leyen had condemned the March 11 decision by U.S. President Donald J. Trump to impose a 30-day ban on continental Europeans traveling to the United States. “The European Union failed to take the same precautions and restrict travel from China and other hotspots,” Trump said. “As a result, a large number of new clusters in the United States were seeded by travelers from Europe.”

    On March 12, Von der Leyen issued an angry statement:

    “The Coronavirus is a global crisis, not limited to any continent and it requires cooperation rather than unilateral action.

    “The European Union disapproves of the fact that the U.S. decision to impose a travel ban was taken unilaterally and without consultation.”

    Von der Leyen now says that she will present the EU heads of state with a proposal to ban “unnecessary trips” to the Union. The entry ban would initially be for 30 days but could be extended if necessary. “The fewer trips there are, the more we can contain the virus,” she said.

    Anja Krüger, the pro-EU business editor for the German newspaper Tagesspiegel, noted:

    “It is breathtaking how the borders in Europe are closed in the wake of the corona crisis, how one country after another seals itself off. The pandemic shows how fragile the European Union is….

    “After the pandemic subsides, will everything be the same as before, as if nothing had happened? The question is how far the corona crisis is capable of an ad hoc destruction of a slowly growing European awareness among the people in the EU member countries over the years.

    “Much will depend on how the crisis is managed. However, the fact that the return to nationalism was carried out quickly and firmly will arouse desires among opponents of European unification. What goes once, goes again and again.”

    In a March 13 press conference, the president of Italy’s hard-hit Veneto region, Luca Zaia, said that Europe’s borderless zone was “disappearing as we speak.” He noted that the stringent border controls imposed by Austria shows that Schengen “no longer exists and will be remembered in the history books.”


    Tyler Durden

    Wed, 03/18/2020 – 02:00

  • Watch: Hardliners Storm Popular Iran Shrine After It's Belatedly Shuttered Amid Outbreak
    Watch: Hardliners Storm Popular Iran Shrine After It’s Belatedly Shuttered Amid Outbreak

    We previously reported on how despite Qom being at the epicenter of Iran’s deadly Covid-19 outbreak, the powerful Shia clerics overseeing the Iranian ‘holy city’ have fiercely resisted closing its key shrines. 

    In normal times, millions of pilgrims per week flock to the crowded shrines, most especially the shrine of Fatima Masoumeh, named after the sister of the eighth Imam of Shia Muslims. Throughout the crisis, even as the number of confirmed cases recently soared past 10,000 days ago, hardliners still resisted the Masoumeh shrine’s closure.

    But even though up to last week the shrine was still receiving thousands of people, it appears local authorities have moved to enforce a final closure Monday. But as multiple Middle East correspondents reported, this immediately brought rioters out, enraged that one of the holiest sites in Shia Islam has been shuttered.

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    New York Times journalist Farnaz Fassihi reported Monday: “Iran finally shuts down Shia shrines today as coronavirus peaked in those cities.”

    “Mobs of ultra hardliners break the doors in Mashhad & Qom, bypass the police & storm the shrines. This appears organized,” she wrote.

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    President Rouhani had long resisted openly backing its closure despite much of Qom being shut down and in quarantine. 

    However, the province’s governor urged Tehran to finally impose a full quarantine due to the dramatically rising number of infected and dead. 

    A number of Shia clerics have backed Qom’s complete closure, even to religious pilgrims; however, they’ve faced attack and continued resistance from other top clerics which see it as a compromise of Islam.


    Tyler Durden

    Wed, 03/18/2020 – 01:00

  • Visualizing The Secret History Of A Coronavirus Bioweapon
    Visualizing The Secret History Of A Coronavirus Bioweapon

    The below visualization The Secret History of Coronavirus Bioweapon is based on GreatGameIndia‘s exclusive report Coronavirus Bioweapon – How China Stole Coronavirus From Canada And Weaponized It

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    The Saudi SARS Sample

    On June 13, 2012 a 60-year-old Saudi man was admitted to a private hospital in Jeddah, Saudi Arabia, with a 7-day history of fever, cough, expectoration, and shortness of breath. He had no history of cardiopulmonary or renal disease, was receiving no long-term medications, and did not smoke.

    The Canadian Lab

    On May 4, 2013, a sample of this Saudi SARS (aka novel Coronavirus) from the very first infected Saudi patient arrived in Canada’s National Microbiology Laboratory in Winnipeg via Ron Fouchier of Erasmus Medical Center in Rotterdam, Netherlands who sequenced the virus sample.

    Chinese Biological Espionage

    In March 2019, in mysterious event a shipment of exceptionally virulent viruses from Canada’s NML ended up in China. The event caused a major scandal with Bio-warfare experts questioning why Canada was sending lethal viruses to China.

    Four months later in July 2019, a group of Chinese virologists were forcibly dispatched from the Canadian lab – the only level-4 facility equipped to handle the world’s deadliest diseases where Coronavirus sample from the first Saudi patient was being examined.

    Xiangguo Qiu

    The scientist who was escorted out of the Canadian lab along with members of her research team is believed to be a Chinese Bio-Warfare agent Xiangguo Qiu.

    Dr. Xiangguo Qiu is married to another Chinese scientist Dr. Keding Cheng – the couple is responsible for infiltrating Canada’s NML with many Chinese agents posing as students from a range of Chinese scientific facilities directly tied to China’s Biological Warfare Program.

    Dr. Xiangguo Qiu made at least five trips to the Wuhan National Biosafety Laboratory located only 20 miles away from the Huanan Seafood Market which is the epicenter of the outbreak.

    The Canadian investigation is ongoing and questions remain whether previous shipments to China of other viruses or other essential preparations, took place from 2006 to 2018, one way or another.

    Frank Plummer Assassination

    Meanwhile, in a very strange turn of events, renowned scientist Frank Plummer who received Saudi SARS Coronavirus sample and was working on Coronavirus (HIV) vaccine in the Winnipeg based Canadian lab from where the virus was smuggled by Chinese Biowarfare agents has died in mysterious conditions in Nigeria.

    Scholars or Spies

    The Thousand Talents Plan or Thousand Talents Program was established in 2008 by the central government of China to recognize and recruit leading international experts in scientific research, innovation, and entrepreneurship – in other words to steal western technology.

    Weaponizing Biotech

    China’s national strategy of military-civil fusion has highlighted biology as a priority, and the People’s Liberation Army could be at the forefront of expanding and exploiting this knowledge. Chinese military’s interest in biology as an emerging domain of warfare is guided by strategists who talk about potential “genetic weapons” and the possibility of a “bloodless victory.”


    Tyler Durden

    Tue, 03/17/2020 – 23:50

  • Ohio Unemployment Skyrockets By 600% After All Bars & Restaurants Shuttered
    Ohio Unemployment Skyrockets By 600% After All Bars & Restaurants Shuttered

    Is a global recession already beginning as the vast majority of the US and other countries’ workforce grinds to a halt while large cities begin to receive ‘shelter in place’ directives? Yes, says Goldman; and more and more top economists are saying Tuesday it’s a near-certainty. State unemployment numbers are about to bear that out.

    A new Marist poll this week for NPR/PBS News found 18% of US adults responding they’d already either been laid off or had significant reduction of hours due to the ripple effect of the pandemic.

    For an indicator of just how high national unemployment may skyrocket, look no further than Ohio, which on Sunday night declared a ‘health emergency’ and shut down all bars and restaurants state-wide. Journalist Liz Skalka for The Toledo Blade reports that Ohio Senator Rob Portman (R) received “new data on Ohio’s unemployment claims today: 45,000 claims this week compared to 6,500 last week.”

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    Image via The Century Bar in Dayton, Ohio, Facebook.

    The state-wide ordered shutdown of dining and drink establishments by Ohio Governor Mike DeWine on Sunday night impacted about 10% of the state’s workforce, some 500,000 people. 

    A 45,000 unemployment claims number jump from 6,500 means a whopping one-week increase of 592%, and surely now already to soar past 600% into next week.

    Likely, Ohio is the canary in the coal-mine at a moment restaurants and bars across New York, California, and other large states are also fast being ordered to shutter their doors.

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    As of Tuesday Ohio announced 67 confirmed Covid-19 cases across 16 counties, resulting in 17 hospitalizations thus far.

    Federal data issued in February counts 11,674,000 employees in restaurants in bars across the nation. These jobs are about to be decimated, assuming the latest breaking Ohio numbers of just the past week sets the trend.  

    “I think that the odds of a global recession are close to 100 percent right now,” Kevin Hassett, Trump’s former chair of the Council of Economic Advisers told CNN on Tuesday. “I think in the US, we’re going to have a very terrible second quarter.”

    “You’re looking at one of the biggest negative jobs numbers that we’ve ever seen,” he added, warning further the US is set to shed 1 million jobs in March.


    Tyler Durden

    Tue, 03/17/2020 – 23:30

  • Detect, Deter, & Annihilate: How The American Police State Will Deal With The Outbreak
    Detect, Deter, & Annihilate: How The American Police State Will Deal With The Outbreak

    Authored by John Whitehead via The Rutherford Institute,

    “Fear is a primitive impulse, brainless as hunger, and because the aim of horror fiction is the production of the deepest kinds of fears, the genre tends to reinforce some remarkably uncivilized ideas about self-protection. In the current crop of zombie stories, the prevailing value for the beleaguered survivors is a sort of siege mentality, a vigilance so constant and unremitting that it’s indistinguishable from the purest paranoia.”

    – Terrence Rafferty, New York Times

    What do zombies have to do with the U.S. government’s plans for dealing with a coronavirus outbreak?

    Read on, and I’ll tell you.

    The zombie narrative was popularized by the hit television series The Walking Dead, in which a small group of Americans attempt to survive in a zombie-ridden, post-apocalyptic world where they’re not only fighting off flesh-eating ghouls but cannibalistic humans.

    For a while there, zombies could be found lurking around every corner: wreaking havoc at gun shows, battling corsets in movies such as Pride and Prejudice and Zombies, and running for their lives in 5K charity races.

    Understandably, zombie fiction plays to our fears and paranoia, while allowing us to “envision how we and our own would thrive if everything went to hell and we lost all our societal supports.” Yet as journalist Syreeta McFadden points out, while dystopian stories used to reflect our anxieties, now they reflect our reality, mirroring how we as a nation view the world around us, how we as citizens view each other, and most of all how our government views us.

    Indeed, the U.S. government has spent a lot of time and energy in recent years using zombies as the models for a variety of crisis scenarios not too dissimilar from what we are currently experiencing.

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    For instance, back in 2015, the Centers for Disease Control and Prevention put together a zombie apocalypse preparation kit “that details everything you would need to have on hand in the event the living dead showed up at your front door.” The CDC, in conjunction with the Dept. of Defense, even used zombies to put government agents through their paces in mock military drills.

    Fear the Walking Dead—AMC’s spinoff of its popular Walking Dead series—drove this point home by dialing back the clock to when the zombie outbreak first appears and setting viewers down in the midst of societal unrest not unlike our own experiences of recent years (“a bunch of weird incidents, police protests, riots, and … rapid social entropy”). Then, as Forbes reports, “the military showed up and we fast-forwarded into an ad hoc police state with no glimpse at what was happening in the world around our main cast of hapless survivors.”

    Forbes found Fear’s quick shift into a police state to be far-fetched, but anyone who has been paying attention in recent years knows that the groundwork was laid long ago for the government—i.e., the military—to intervene and lock down the nation in the event of a national disaster.

    We’re seeing this play out now as the coronavirus contagion spreads.

    What we have yet to experience (although it may only be a matter of time) is that the government through the imposition of martial law could pose a greater threat to our safety (and our freedoms) than any virus.

    As the Atlantic noted about Fear the Walking Dead: “The villains aren’t the zombies, who rarely appear, but the U.S. military, who sweep into an L.A. suburb to quarantine the survivors. Zombies are, after all, a recognizable threat—but Fear plumbs drama and horror from the betrayal by institutions designed to keep people safe.”

    Indeed, zombie fiction perfectly embodies the government’s paranoia about the citizenry as potential threats that need to be monitored, tracked, surveilled, sequestered, deterred, vanquished and rendered impotent.

    Why else would the government feel the need to monitor our communications, track our movements, criminalize our every action, treat us like suspects, and strip us of any means of defense while equipping its own personnel with an amazing arsenal of weapons?

    For years now, the government has been carrying out military training drills with zombies as the enemy. In 2011, the DOD created a 31-page instruction manual for how to protect America from a terrorist attack carried out by zombie forces. In 2012, the CDC released a guide for surviving a zombie plague. That was followed by training drills for members of the military, police officers and first responders.

    As journalist Andrea Peyser reports:

    Coinciding with Halloween 2012, a five-day national conference was put on by the HALO Corp. in San Diego for more than 1,000 first responders, military personnel and law enforcement types. It included workshops produced by a Hollywood-affiliated firm in…overcoming a zombie invasion. Actors were made up to look like flesh-chomping monsters. The Department of Homeland Security even paid the $1,000 entry fees for an unknown number of participants…

    “Zombie disaster” drills were held in October 2012 and ’13 at California’s Sutter Roseville Medical Center. The exercises allowed medical center staff “to test response to a deadly infectious disease, a mass-casualty event, terrorism event and security procedures”… 

    [In October 2014], REI outdoor-gear stores in Soho and around the country are to hold free classes in zombie preparedness, which the stores have been providing for about three years.

    The zombie exercises appeared to be kitschy and fun—government agents running around trying to put down a zombie rebellion—but what if the zombies in the exercises were us, the citizenry, viewed by those in power as mindless, voracious, zombie hordes?

    Consider this: the government started playing around with the idea of using zombies as stand-ins for enemy combatants in its training drills right around the time the Army War College issued its 2008 report, warning that an economic crisis in the U.S. could lead to massive civil unrest that would require the military to intervene and restore order.

    That same year, it was revealed that the government had amassed more than 8 million names of Americans considered a threat to national security, to be used “by the military in the event of a national catastrophe, a suspension of the Constitution or the imposition of martial law.” The program’s name, Main Core, refers to the fact that it contains “copies of the ‘main core’ or essence of each item of intelligence information on Americans produced by the FBI and the other agencies of the U.S. intelligence community.”

    Also in 2008, the Pentagon launched the Minerva Initiative, a $75 million military-driven research project focused on studying social behavior in order to determine how best to cope with mass civil disobedience or uprisings. The Minerva Initiative has funded projects such as “Who Does Not Become a Terrorist, and Why?” which “conflates peaceful activists with ‘supporters of political violence’ who are different from terrorists only in that they do not embark on ‘armed militancy’ themselves.”

    In 2009, the Dept. of Homeland Security issued its reports on Rightwing and Leftwing Extremism, in which the terms “extremist” and “terrorist” were used interchangeably to describe citizens they perceived to be disgruntled or anti-government.

    Meanwhile, a government campaign was underway to spy on Americans’ mail, email and cell phone communications. News reports indicate that the U.S. Postal Service has handled more than 150,000 requests by federal and state law enforcement agencies to monitor Americans’ mail, in addition to photographing every piece of mail sent through the postal system.

    Fast forward a few years more and local police were being transformed into extensions of the military, taught to view members of their community as suspects, trained to shoot first and ask questions later, and equipped with all of the technology and weaponry of a soldier on a battlefield.

    The Obama administration then hired a domestic terrorism czar whose job is to focus on anti-government American “extremists” who have been designated a greater threat to America than ISIS or al Qaeda. As part of the government’s so-called war on right-wing extremism, the Obama administration agreed to partner with the United Nations to take part in its Strong Cities Network program, which is training local police agencies across America in how to identify, fight and prevent extremism.

    Nothing has changed for the better under the Trump Administration.

    Those who believe in and exercise their rights under the Constitution (namely, the right to speak freely, worship freely, associate with like-minded individuals who share their political views, criticize the government, own a weapon, demand a warrant before being questioned or searched, or any other activity viewed as potentially anti-government, racist, bigoted, anarchic or sovereign), continue to be promoted to the top of the government’s terrorism watch list.

    “We the people” or, more appropriately, “we the zombies” are the enemy in the eyes of the government. This coronavirus merely ups the ante.

    So when presented with the Defense Department’s battle plan for defeating an army of the walking dead, you might find yourself tempted to giggle over the fact that a taxpayer-funded government bureaucrat actually took the time to research and write about vegetarian zombies, evil magic zombies, chicken zombies, space zombies, bio-engineered weaponized zombies, radiation zombies, symbiant-induced zombies, and pathogenic zombies.

    However, in an age of extreme government paranoia, this is no laughing matter.

    The DOD’s strategy for dealing with a zombie uprising, outlined in “CONOP 8888,” is for all intents and purposes a training manual for the government in how to put down a citizen uprising or at least an uprising of individuals “infected” with a dangerous disease or dangerous ideas about freedom.

    Rest assured that the tactics and difficulties outlined in the “fictional training scenario” are all too real, beginning with martial law.

    As the DOD training manual states:

    “zombies [stand-ins for “we the people”] are horribly dangerous to all human life and zombie infections have the potential to seriously undermine national security and economic activities that sustain our way of life. Therefore having a population that is not composed of zombies or at risk from their malign influence is vital to U.S. and Allied national interests.”

    So how does the military plan to put down a zombie (a.k.a. citizen) uprising?

    The strategy manual outlines five phases necessary for a counter-offensive: shape, deter, seize initiative, dominate, stabilize and restore civil authority. Here are a few details:

    • Phase 0 (Shape): Conduct general zombie awareness training. Monitor increased threats (i.e., surveillance). Carry out military drills. Synchronize contingency plans between federal and state agencies. Anticipate and prepare for a breakdown in law and order.

    • Phase 1 (Deter): Recognize that zombies cannot be deterred or reasoned with. Carry out training drills to discourage other countries from developing or deploying attack zombies and publicly reinforce the government’s ability to combat a zombie threat. Initiate intelligence sharing between federal and state agencies. Assist the Dept. of Homeland Security in identifying or discouraging immigrants from areas where zombie-related diseases originate.

    • Phase 2 (Seize initiative): Recall all military personal to their duty stations. Fortify all military outposts. Deploy air and ground forces for at least 35 days. Carry out confidence-building measures with nuclear-armed peers such as Russia and China to ensure they do not misinterpret the government’s zombie countermeasures as preparations for war. Establish quarantine zones. Distribute explosion-resistant protective equipment. Place the military on red alert. Begin limited scale military operations to combat zombie threats. Carry out combat operations against zombie populations within the United States that were “previously” U.S. citizens.

    • Phase 3 (Dominate): Lock down all military bases for 30 days. Shelter all essential government personnel for at least 40 days. Equip all government agents with military protective gear. Issue orders for military to kill all non-human life on sight. Initiate bomber and missile strikes against targeted sources of zombie infection, including the infrastructure. Burn all zombie corpses. Deploy military to lock down the beaches and waterways.

    • Phase 4 (Stabilize): Send out recon teams to check for remaining threats and survey the status of basic services (water, power, sewage infrastructure, air, and lines of communication). Execute a counter-zombie ISR plan to ID holdout pockets of zombie resistance. Use all military resources to target any remaining regions of zombie holdouts and influence. Continue all actions from the Dominate phase.

    • Phase 5 (Restore civil authority): Deploy military personnel to assist any surviving civil authorities in disaster zones. Reconstitute combat capabilities at various military bases. Prepare to redeploy military forces to attack surviving zombie holdouts. Restore basic services in disaster areas.

    Notice the similarities?

    Surveillance. Military drills. Awareness training. Militarized police forces. Martial law.

    As I point out in my book, Battlefield America: The War on the American People, if there is any lesson to be learned, it is simply this: whether the threat to national security comes in the form of imaginary zombies, actual terrorists, American citizens infected with the coronavirus, or disgruntled American citizens infected with dangerous ideas about freedom, the government’s response to such threats remains the same: detect, deter and annihilate.


    Tyler Durden

    Tue, 03/17/2020 – 23:10

  • State TV Issues Most Dire Prediction To Date: Virus Could Kill "Millions" Of Iranians
    State TV Issues Most Dire Prediction To Date: Virus Could Kill “Millions” Of Iranians

    In the course of a month Iran has gone from downplaying its coronavirus outbreak to now issuing its most dire warning yet. It first must be remembered that it was only on Feb. 19 that the Islamic Republic announced its first two confirmed cases originating in Qom (both of which died), the Iranian outbreak epicenter.

    On Tuesday Iranian state TV journalist, Dr. Afruz Eslami, captured headlines in announcing to the country that Iran could see “millions” of deaths from the Covid-19 virus before the pandemic subsides.

    His ‘maximalist’ prediction was geared toward urging people to take the threat seriously, at a moment there is <a href="

    https://platform.twitter.com/widgets.js“>popular unrest in the religious city of Qom over the new closure of an important Shia shrine. 

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    People outside the closed doors of the Fatima Masumeh shrine in Iran’s holy city of Qom Monday night, via AFP.

    The Associated Pres reports: “The death toll in Iran saw another 13% increase Tuesday. Health Ministry spokesman Kianoush Jahanpour said the virus had killed 135 more people to raise the total to 988 amid over 16,000 cases.”

    More countries are also imposing emergency measures across the Middle East, with Syria having days ago shuttered universities and many public spaces – despite not reporting any official confirmed cases, and Jordan Tuesday banning gatherings of more that ten people. 

    But Iran has taken the most drastic measures as the virus’ spread has continued unabated, with daily rising numbers. Tehran says it’s now temporarily sent some 85,000 prisoners home to ensure the pandemic doesn’t rip through the nation’s overcrowded prisons and jails. 

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    The AP reports further of Dr. Eslami’s dire warning: 

    A state TV journalist who also is a medical doctor gave the warning only hours after hard-line Shiite faithful on Monday night pushed their way into the courtyards of two major shrines that were finally closed due to the virus. Supreme Leader Ayatollah Ali Khamenei issued a religious ruling prohibiting “unnecessary” travel.

    Roughly 9 out of 10 of the over 18,000 confirmed cases of the virus in the Middle East come from Iran, where authorities denied for days the risk the outbreak posed. Officials have implemented new checks for people trying to leave major cities ahead of Nowruz, the Persian New Year, on Friday, but have hesitated to quarantine the areas.

    For comparison, if state TV’s latest extreme warnings predicting over a million deaths is anywhere close to accurate, it would surpass the total casualty toll from the most devastating war in modern Middle East history: the Iran-Iraq war.

    On Monday authorities finally ordered the closure of the Masoumeh shrine in Qom, after which Shia hardliners outraged at the decision stormed the shrine’s courtyard:

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    Estimates from the 1980-1988 Iran-Iraq war commonly range from 1,000,000 to twice that number. However, conservative estimates put it at 500,000 deaths – with the Iranian side suffering the greatest losses. 


    Tyler Durden

    Tue, 03/17/2020 – 22:50

  • Nine Meals From Anarchy…
    Nine Meals From Anarchy…

    Authored by Jeff Thomas via Doug Casey’s InternationalMan.com,

    In 1906, Alfred Henry Lewis stated, “There are only nine meals between mankind and anarchy.” Since then, his observation has been echoed by people as disparate as Robert Heinlein and Leon Trotsky.

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    The key here is that, unlike all other commodities, food is the one essential that cannot be postponed. If there were a shortage of, say, shoes, we could make do for months or even years. A shortage of gasoline would be worse, but we could survive it, through mass transport or even walking, if necessary.

    But food is different. If there were an interruption in the supply of food, fear would set in immediately. And, if the resumption of the food supply were uncertain, the fear would become pronounced. After only nine missed meals, it’s not unlikely that we’d panic and be prepared to commit a crime to acquire food. If we were to see our neighbour with a loaf of bread, and we owned a gun, we might well say, “I’m sorry, you’re a good neighbour and we’ve been friends for years, but my children haven’t eaten today – I have to have that bread – even if I have to shoot you.”

    But surely, there’s no need to speculate on this concern. There’s nothing on the evening news to suggest that such a problem even might be on the horizon. So, let’s have a closer look at the actual food distribution industry, compare it to the present direction of the economy, and see whether there might be reason for concern.

    The food industry typically operates on very small margins – often below 2%. Traditionally, wholesalers and retailers have relied on a two-week turnaround of supply and anywhere up to a 30-day payment plan. But an increasing tightening of the economic system for the last eight years has resulted in a turnaround time of just three days for both supply and payment for many in the industry. This a system that’s still fully operative, but with no further wiggle room, should it take a significant further hit.

    If there were a month where significant inflation took place (say, 3%), all profits would be lost for the month for both suppliers and retailers, but goods could still be replaced and sold for a higher price next month. But, if there were three or more consecutive months of inflation, the industry would be unable to bridge the gap, even if better conditions were expected to develop in future months. A failure to pay in full for several months would mean smaller orders by those who could not pay. That would mean fewer goods on the shelves. The longer the inflationary trend continued, the more quickly prices would rise to hopefully offset the inflation. And ever-fewer items on the shelves.

    From Germany in 1922, to Argentina in 2000, and to Venezuela in 2016, this has been the pattern whenever inflation has become systemic, rather than sporadic. Each month, some stores close, beginning with those that are the most poorly capitalised.

    In good economic times, this would mean more business for those stores that were still solvent, but in an inflationary situation, they would be in no position to take on more unprofitable business. The result is that the volume of food on offer at retailers would decrease at a pace with the severity of the inflation.

    However, the demand for food would not decrease by a single loaf of bread. Store closings would be felt most immediately in inner cities, when one closing would send customers to the next neighbourhood seeking food. The real danger would come when that store also closes and both neighbourhoods descended on a third store in yet another neighbourhood. That’s when one loaf of bread for every three potential purchasers would become worth killing over. Virtually no one would long tolerate seeing his children go without food because others had “invaded” his local supermarket.

    In addition to retailers, the entire industry would be impacted and, as retailers disappeared, so would suppliers, and so on, up the food chain. This would not occur in an orderly fashion, or in one specific area. The problem would be a national one. Closures would be all over the map, seemingly at random, affecting all areas. Food riots would take place, first in the inner cities then spread to other communities. Buyers, fearful of shortages, would clean out the shelves.

    Importantly, it’s the very unpredictability of food delivery that increases fear, creating panic and violence. And, again, none of the above is speculation; it’s a historical pattern – a reaction based upon human nature whenever systemic inflation occurs.

    Then … unfortunately … the cavalry arrives

    At that point, it would be very likely that the central government would step in and issue controls to the food industry that served political needs rather than business needs, greatly exacerbating the problem. Suppliers would be ordered to deliver to those neighbourhoods where the riots are the worst, even if those retailers are unable to pay. This would increase the number of closings of suppliers.

    Along the way, truckers would begin to refuse to enter troubled neighbourhoods, and the military might well be brought in to force deliveries to take place.

    But why worry about the above? After all, inflation is contained at present and, although governments fudge the numbers, the present level of inflation is not sufficient to create the above scenario, as it has in so many other countries.

    So, what would it take for the above to occur? Well, historically, it has always begun with excessive debt. We know that the debt level is now the highest it has ever been in world history. In addition, the stock and bond markets are in bubbles of historic proportions. They will most certainly pop.

    With a crash in the markets, deflation always follows as people try to unload assets to cover for their losses. The Federal Reserve (and other central banks) has stated that it will unquestionably print as much money as it takes to counter deflation. Unfortunately, inflation has a far greater effect on the price of commodities than assets. Therefore, the prices of commodities will rise dramatically, further squeezing the purchasing power of the consumer, thereby decreasing the likelihood that he will buy assets, even if they’re bargain priced. Therefore, asset holders will drop their prices repeatedly as they become more desperate. The Fed then prints more to counter the deeper deflation and we enter a period when deflation and inflation are increasing concurrently.

    Historically, when this point has been reached, no government has ever done the right thing. They have, instead, done the very opposite – keep printing. A by-product of this conundrum is reflected in the photo above. Food still exists, but retailers shut down because they cannot pay for goods. Suppliers shut down because they’re not receiving payments from retailers. Producers cut production because sales are plummeting.

    In every country that has passed through such a period, the government has eventually gotten out of the way and the free market has prevailed, re-energizing the industry and creating a return to normal. The question is not whether civilization will come to an end. (It will not.) The question is the liveability of a society that is experiencing a food crisis, as even the best of people are likely to panic and become a potential threat to anyone who is known to store a case of soup in his cellar.

    Fear of starvation is fundamentally different from other fears of shortages. Even good people panic. In such times, it’s advantageous to be living in a rural setting, as far from the centre of panic as possible. It’s also advantageous to store food in advance that will last for several months, if necessary. However, even these measures are no guarantee, as, today, modern highways and efficient cars make it easy for anyone to travel quickly to where the goods are. The ideal is to be prepared to sit out the crisis in a country that will be less likely to be impacted by dramatic inflation – where the likelihood of a food crisis is low and basic safety is more assured.

    *  *  *

    In the days ahead, there will likely be much less stability of any kind. With so many momentous events unfolding—including the crashing stock market, domestic political turmoil, rising tensions with China, a potential geopolitical shock in the Middle East, the coronavirus, and many others—it’s absolutely crucial to act right NOW. That’s precisely why, Doug Casey just released an urgent new report on how to can play your cards—both for prudence and profit. Click here for all the details.


    Tyler Durden

    Tue, 03/17/2020 – 22:30

  • Spring-Breakers Pack Florida & Texas Beaches As Pandemic Threatens Societal Collapse
    Spring-Breakers Pack Florida & Texas Beaches As Pandemic Threatens Societal Collapse

    Borders shut, markets in nose-dive, restaurants and bars closed in some major American cities, super market shelves empty, professional sports canceled, and even the Las Vegas Strip shuttered — and yet many beaches and bars which typically serve as popular Spring Break destinations are still packed with oblivious college students determined to party till the end.

    While yes it’s true that Miami Beach and Fort Lauderdale are closed, other water front areas across Florida as well as Texas and southern states are packed out with young revelers, many entering their second week of “extended” break given university closures across the US. 

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    Image source: ABC Action News

    The party will go on, undaunted by the deadly coronavirus pandemic that has seen much of the country grind to a halt, apparently.

    Previously in announcing temporary closures in his areas, Miami Beach Mayor Dan Gelber said, “We cannot become a petri dish for a very dangerous virus.” He declared: “Spring break is over. The party is over.”

    But clearly many other areas didn’t get the memo and witnessed an influx of bikini clad, beer guzzling partyers to their towns and beaches. 

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    “As cities and states across the country shutter bars, restaurants and other gathering places, Pinellas County plans to keep beaches open until state emergency officials request the popular destinations to close,” Tampa Bay Times reports.

    The scene just before Fort Lauderdale closed its beaches early this week:

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    And further, the report notes at a time that the White House and CDC has urged that gatherings should be limited to no more than ten people: 

    “We are minimizing interactions and encouraging people to keep social distance,” Pinellas County Administrator Barry Burton said Monday afternoon.

    Officials are monitoring the beaches to make sure crowds don’t swell. 

    Also Daytona Beach was determined to keep reservations and beaches open as of the start of the week. Scott Edwards, manager at Daytona Beach Welcome Center, said: “We’re holding our own this week, but next week does not look good.”

    Thus far it looks like local officials at many Spring Break destinations are actually on the side of the youthful and seemingly blasé beach revelers, with Pinellas County Sheriff Bob Gualtieri cited as saying that given the large-scale event cancellations and business closures, people are “going to need some sort of an outlet.”

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    Meanwhile it’s the same scene at what’s been dubbed the “Spring Break Mecca of southern Texas” – South Padre Island.

    This is where among the masses of carefree college students “the deadly coronavirus is barely an afterthought” — as Bloomberg describes:

    The tightly packed throng lingered for hours Thursday, soaking up the sun and other typical Spring Break fare, including bikini and push-up contests and free music shows, seemingly oblivious to the market upheaval and the warnings from health experts to practice social distancing.

    The previous day, as the World Health Organization declared the coronavirus a global pandemic, hundreds of them had partied for hours at a nearby nightclub where rapper Silento performed. And on Sunday, many headed to a massive pool party at a beachside resort.

    According to local reports, many town residents are increasingly outraged that events haven’t been canceled; instead, “students are coming here from the Midwest, Mid-Atlantic, the West Coast for several weeks.”

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    But in a move that appears too-little-too-late, South Padre as of late Monday issued a Local State of Disaster for the area, and while it cancelled remaining “large-stage events,” the beach and other major popular spots are reportedly still open. 

    Elsewhere around the country as colleges and universities canceled classes, many going to an on-line remote learning format for the rest of the semester, students treated the whole thing as a “snow day” – and flooded local bars. 

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    And this surreal scene played out on Bourbon street end of last week and into early this week…

    Reported journalist Darren Rovell: “3 p.m. Friday: Louisiana Gov. John Bel Edwards announces the closing of all schools for a month to help prevent the spread of the Coronavirus. 8 hours later…Bourbon Street.”

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    “Your actions are jeopardizing public health,” police bullhorns blared to drunk and oblivious should-to-should crowds at New Orleans’ most famous and historic party spot.

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    The brazen disregard for what’s happening all around them is perhaps driven by a widespread perception and media reports that younger and healthier individuals are much less likely to get seriously ill by Covid-19. 

    But given the rising rates of infection and even hospitalization among young adults in places like Italy, this is far from confirmed at this point, and of course misses the point altogether of community-wide efforts to contain to the spread. 


    Tyler Durden

    Tue, 03/17/2020 – 22:10

  • Oil Plunges To 17 Year Low As One Bank Predicts Negative Prices
    Oil Plunges To 17 Year Low As One Bank Predicts Negative Prices

    Late on Tuesday, WTI plunged as low as $26.20 taking out the lows from the 2015/2016 oil recession, and sending it to a level last seen when US president was George W. Bush, people were listening to Get Busy by Sean Paul and Dogville was one of the most popular movies: May 2003.

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    While there was no immediately clear catalyst, earlier in the day, Goldman’s commodities team published a report in which they discuss the need for commodity prices to drop below cash costs to generate supply curtailments as demand losses across the complex are now unprecedented, as Goldman now believes oil use is down an unprecedented 8 million b/d:

    Large commitments from core-OPEC for April/May deliveries pushes the net supply increase near c.3m b/d, which, when combined with the demand losses, results in an April/May surplus of 7mb/d, which will likely breach system capacity during 2Q20.

    As Goldman’s Jeffrey Currie wrote, “the system strain creates a physical end, even though when COVID-19 will end is unknown, pushing our forecasts to shut-in economics. We now forecast 3m GSCI -25%.” As a result of price wars in oil and gas and uncertain policy responses in bulks and base metals, all a direct result of the sharp fall in demand resulting from the COVID-19 containment measures, Goldman has cut its 2Q Brent price target to just $20/bbl from $30/bbl.

    But that was not the worst of it for what little is left of oil bulls.

    Outdoing not only Goldman, but virtually every single bearish oil analyst in existence, Mizuho’s Paul Sankey not only estimated that Goldman is too optimistic by half, calculating a whopping 15MM b/d in oversupply currently, but that crude prices could go negative – yes, as in you would be paid to take delivery – as Saudi and Russian barrels enter the market.

    According to Sankey, much of the US 4MM bpd in crude exports will be curtailed as prices fall and tanker rates soar. And with US storage roughly 50% full, and able to take another 135MM bbl more, assuming a build rate of 2MM b/d, the US can add 14MM bbl/week for 10 weeks until full. 

    As a result, there is a now race between filling storage and negative pricing “unless U.S. decline rates can outpace inventory builds, which we very much doubt.”

    Said otherwise, absent dramatic changes, in roughly 3 months, energy merchants will be paying you if you generously take a couple million barrels of crude off their hands.

    Which is why despite its low price, oil may still have at least 100% (or more) to drop.


    Tyler Durden

    Tue, 03/17/2020 – 22:06

  • Californians Calling Cops On Neighbors If They Hear Them Coughing
    Californians Calling Cops On Neighbors If They Hear Them Coughing

    Authored by Paul Joseph Watson via Summit News,

    Some Californians are calling 911 if they hear their neighbors loudly coughing or sneezing, with paramedics being dispatched to homes in some cases.

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    Yes, really.

    “Coachella Valley police departments say they’ve started fielding 911 reports from concerned callers convinced a neighbor’s overly loud sneeze or hacking cough is proof the person has the virus,” reports the Desert Sun.

    With millions of people across the state under a quarantine that mandates isolation except for essential travel, it appears as though some Californians are passing the time by grassing up their own neighbors to medical authorities.

    Instead of telling them to reserve 911 calls for emergencies only, police are actually responding by sending out paramedics to test the cougher and even remove them from their home.

    “In many cases, the calls are forwarded to the fire department where paramedics are also dispatched to directly provide any needed medical attention before transporting the person to an area hospital,” according to the report.

    “Presumably, the ride to the hospital is still voluntary for now, even in hyperstatist California. Or maybe they are setting up quarantine camps,” comments Dave Blount.

    There have been 486 confirmed cases of coronavirus in the state of California, which has a population of nearly 40 million. Six people have died.

    *  *  *

    My voice is being silenced by free speech-hating Silicon Valley behemoths who want me disappeared forever. It is CRUCIAL that you support me. Please sign up for the free newsletter here. Donate to me on SubscribeStar here. Support my sponsor – Turbo Force – a supercharged boost of clean energy without the comedown.


    Tyler Durden

    Tue, 03/17/2020 – 21:50

  • South Korean Church Infects 46 Parishioners After Spraying Salt Water In Their Mouths To Prevent The Virus
    South Korean Church Infects 46 Parishioners After Spraying Salt Water In Their Mouths To Prevent The Virus

    A South Korean church is doing its part in helping humanity take two giant steps backward in fighting the coronavirus.

    River Grace Community church in Gyeonggi Province, South Korea, told its parishioners that they could help stop the spread of the virus by spraying salt water into their mouths. But the church used a spray bottle that it didn’t disinfect between people and instead wound up spreading the virus to 46 different people, according to the South China Morning Post.

    Video out of the church shows a church official sticking the nozzle of the spray bottle deep into one person’s mouth after another. The pastor and his wife also became infected.

    Lee Hee-young, head of Gyeonggi Province’s coronavirus task force said: “It’s been confirmed that they put the nozzle of the spray bottle inside the mouth of a follower who was later confirmed as a patient, before they did likewise for other followers as well, without disinfecting the sprayer. This made it inevitable for the virus to spread. They did so out of the false belief that salt water kills the virus.”

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    The church has since closed and everyone who attended the prayer session is being tested.

    The new cases have motivated the South Korean government to work at identifying new clusters, especially in cities, even though it has slowed the virus in the country. 

    South Korea said on Monday it had 74 new cases, which bring’s the country’s total to 8,236. The number of new cases was below 100 for the second day in a row, showing that the country is making progress in blunting the blow of the virus. 

    Prime Minister Chung Sye Kyun said: “It is still too early to relax. The government will concentrate its efforts on preventing cluster infections.”

    Lee concluded: “We again call for proactive participation by churches in preventing further spread of the virus, including changes to their ways of worshipping.”

    Yeah. If you could go ahead and not physically remove the virus from one person’s mouth and place it into another’s. 

    That’d be great. 

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    Tyler Durden

    Tue, 03/17/2020 – 21:30

  • Fed Launches Primary Dealer Credit Facility Which Will Accept Stocks As Collateral
    Fed Launches Primary Dealer Credit Facility Which Will Accept Stocks As Collateral

    Earlier today, when discussing the launch of the “Lehman crisis playbook” in response to the Global Covid Crisis, we listed the alphabet soup of measures the Fed may launch which are a replica of the measures adopted in the aftermath of the Lehman collapse. These included the AMFL, the MMIFF, the TAF and last but not least, the PDCF, or Primary Dealer Credit Facility, which as Rabobank said “would provide overnight funding to primary dealers, similar to the way the discount window provides a backup source of funding for depository institutions.”

    Just three hours later, at 6pm ET, the Fed, as expected, announced the establishment of a Primary Dealer Credit Facility (PDCF) “to support the credit needs of households and businesses.” What the Fed really meant is that it is now launching a way for dealers to monetize the stocks they own, as the facility will be collateralized, among others, by “equity securities.”

    As the Fed announced, the PDCF “will offer overnight and term funding with maturities up to 90 days and will be available on March 20, 2020” and will be in place for at least six months and may be extended as conditions warrant.

    But here is the punchline:

    Credit extended to primary dealers under this facility may be collateralized by a broad range of investment grade debt securities, including commercial paper and municipal bonds, and a broad range of equity securities.

    This means that as of this moment, equities – which are worth zero in a worst case scenario – are eligible collateral for Fed liquidity.

    Here are some more details on the eligible collateral:

    Collateral eligible for pledge under the PDCF includes all collateral eligible for pledge in open market operations (OMO); plus investment grade corporate debt securities, international agency securities, commercial paper, municipal securities, mortgage-backed securities, and asset-backed securities; plus equity securities.

    Who will determine the value of the soon-to-be-bankrupt stocks pledged as collateral?

    The pledged collateral will be valued by Bank of New York Mellon according to a schedule designed to be similar to the margin schedule for lending by the Discount Window, to the extent possible.

    This means that dealers can now buy stocks at what are still massively overinflated valuations thanks to trillions in central bank liquidity, knowing they can then turn around and pledge them to the Fed at a collateral value that is determined after several rounds of single malt between the fund and some NY Mellon back-office lackey who will write down pretty much anything in exchange for a free dinner, and even if the stocks crashes the Fed will still assign whatever value BNY Mellon decides it is “worth”, basically giving the dealers not only a costless purchase but also a free put option!

    That said not all equities are eligible as collateral: “the following equities would not be eligible: exchange traded funds (ETFs), unit investment trusts, mutual funds, rights and warrants”

    For those who many not remember, the PDCF was one of the biggest bailout abortions of the financial crisis, one which we discussed extensively in describing how dealers abused the Fed as they pledged totally worthless stocks for which they got “par” value. For more see:

    We now look forward to Congress never asking Powell the only question that matters: how on earth are stocks “money good” securities and hard value collateral.

    We also look forward to the market asking just which Primary Dealer(s) is in such dire financial straits that it now needs what is effectively a bailout from the Fed (we have a few ideas).

    The 2-page term sheet of the PDCF is below (pdf link).


    Tyler Durden

    Tue, 03/17/2020 – 21:15

  • Market Bottom Indicators #2 – Financials To Utilities Ratio
    Market Bottom Indicators #2 – Financials To Utilities Ratio

    Submitted by Peter Garnry, head of equity strategy at Saxo Bank

    Summary: The current financials to utilities ratio has actually bounced off recent lows but given the recent volatility and bad liquidity in US Treasuries investors should be careful drawing conclusions just yet that the equity market has bottomed.

    This is our second turning point indicators research notes. In our first research note we looked at the VIX futures term structure and volatility markets can help indicate market bottoms. In this research note we look at the financials to utilities spread ratio. Why is this spread interesting and relevant?

    Financials and utilities are interesting against each other because both sectors are the most sensitive to changes and levels in interest rates, but importantly they react opposite to interest rates. Higher interest rates are negative for utilities as their long-term and very predictable cash flows get a lower present value. Financials gain from higher long-term interest rates as it steepens the yield curve and thus help banks expand their net interest margin improving profitability. Because these two sectors are so sensitive to interest rates but with the opposite force the spread ratio provides a very fast signal to investors from policy changes and their impact on interest rates and markets.

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    The current ratio is a bit higher than the recent bottom and could suggest a bottom in equities. However, with the extreme volatility and liquidity issues in the US Treasuries market we would be hesitant in drawing conclusions. A good sign would be to see an improvement in the volatility market. In the SaxoTraderGO the financials to utilities spread can be tracked by adding two instruments tracking the two sectors and then create a “Ratio” under the “Indicators” menu.

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    Tyler Durden

    Tue, 03/17/2020 – 21:10

  • Show Stopper: Alameda Sheriff Says Tesla "Not An Essential Business", Must Abide By County Lockdown Order
    Show Stopper: Alameda Sheriff Says Tesla “Not An Essential Business”, Must Abide By County Lockdown Order

    Update (2040ET): For those not following the story, Alameda County, where Tesla’s Fremont factory resides, has been on lockdown but for “essential businesses” due to the coronavirus outbreak.

    But rather than close Fremont (likely recognizing that companies who have already taken billions in subsidy money and burn billions more a year would not be on the short list for a government bailout) Elon Musk decided keep his doors open and keep production going in defiance of the order.

    Well, that party is now over.

    Tonight, the Alameda County sheriff has responded to Musk’s decision, warning them that:

    “Tesla is not an essential business as defined in the Alameda County Health Order.”

    The sheriff instead said the company can “maintain minimum basic operations per the Alameda County Health Order”, which basically means that the company can only maintain its inventory, ensure security and make payroll.

    It does not mean fire up the production line and have everyone come into work.

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    Tesla had argued earlier in the day that they were exempt from shutdowns because they are a “national critical infrastructure”.

    We’ll pause for laughter.

    Earlier in the day, according to Electrek, Tesla HR had e-mailed the following to its employees:

    “National Critical Infrastructure are business sectors crucial to the economic prosperity and continuity of the United States, and includes auto manufacturing and energy infrastructure as defined by the Department of Homeland Security. People need access to transportation and energy, and we are essential to providing it. We have also been in close communication with the State of California, Alameda County, and the City of Fremont, regarding the federal government’s guidance.”

    As a result, Tesla and our supplier network will continue operations that directly support factory production, vehicle deliveries, and service. If you work in these areas, you should continue to report to work, and if you don’t you should work from home until further notice.

    *  *  *

    We already know that Elon Musk thinks the coronavirus panic is “dumb”.

    We also know Tesla’s track record for keeping a safe work environment is less than stellar. 

    But apparently not satisfied unless his workers are directly in the line of harm, Elon Musk is once again creating a new set of rules for himself – just as he has done with the SEC and the NHTSA – and is defying an Alameda County coronavirus lockdown by keeping Tesla’s Fremont factory open and running in the midst of a global pandemic.

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    The quick spread of coronavirus in the Bay Area has led to lockdowns and the shuttering off all non-essential businesses. Businesses in Alameda County are required to “cease all non-essential operations” at physical locations there, according to Bloomberg. 

    Alameda County has declared Tesla an “essential business” that is allowed to remain in operation, the LA Times reports.

    When an Alameda County official was asked what makes Tesla “essential”, he responded: “That’s a good question. We’re in uncharted waters right now.”

    When short seller Nathan Anderson of Hindenburg Research e-mailed Alameda County last night, asking if Tesla would stay open, they punted, telling Anderson he had to direct his question to Tesla. So, it looks like we know who is really running Alameda County. 

    Musk apparently wrote to his staff in an e-mail Monday: “First, I’d like to be super clear that if you feel the slightest bit ill or even uncomfortable, please do not feel obligated to come to work. I will personally be at work, but that’s just me. Totally [OK] if you want to stay home for any reason.”

    He continued: “My frank opinion remains that the harm from the coronavirus panic far exceeds that of the virus itself. If there is a massive redirection of medical resources out of proportion to the danger, it will result in less available care to those with critical medical needs, which does not serve the greater good.”

     

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    Tyler Durden

    Tue, 03/17/2020 – 20:51

  • Washington Post Columnist Jennifer Rubin Says "There Will Be Less Democrat Deaths" Than Republican
    Washington Post Columnist Jennifer Rubin Says “There Will Be Less Democrat Deaths” Than Republican

    Washington Post columnist Jennifer Rubin says that more Republicans than Democrats will die from coronavirus due to misinformation by President Trump and Fox News, according to the Washington Times.

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    “There is a particular cruelty, irony that it is their core viewers, the Republican older viewers, who are the most at risk,” Rubin said during a Sunday morning discussion on MSNBC‘s “AM Joy.”

    Ms. Rubin credited the Democrats with being the first to cancel political rallies in the wake of the coronavirus outbreak, whereas Mr. Trump initially bucked the idea before canceling several rallies Wednesday. –Washington Times

    “So, I hate to put it this way, but there will be less Democrat deaths because there will be less mass gatherings, there will be less opportunities for people to congregate and share this horrible disease,” Rubin continued. “So it is really a very short-sighted strategy.”

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    Rubin, a self-described conservative, says that the biggest challenge will be getting Trump supporters “back on planet Earth,” after Fox News has been “brainwashing” them to believe that Trump has been proactive on coronavirus.

    ““They will contort themselves to kind of get in line and get in sync,” she said, adding “And, you know, we’re always saying ‘but, but, but,’ pointing to the past. They don’t. They simply move with the flow. Every day is a new day. Every day is a new storyline, and they’re gonna stick with it.”

    “I think the problem will be what happens unfortunately if we start to follow that Italian model where we have mass casualties, and our lives are not disrupted for a week or two, but we’re talking months,” she continued. “And that is going to be some serious stuff. And I don’t know if their brainwashing is so strong as to carry on and make excuses for Trump during that. But this is going to be some serious stuff.”


    Tyler Durden

    Tue, 03/17/2020 – 20:50

  • Biden Wins!?: Illinois News Station Airs Election Results Day Before Primary
    Biden Wins!?: Illinois News Station Airs Election Results Day Before Primary

    Update (2030ET): Surprise! AP is reporting that Joe Biden has won the Illinois Democratic Primary… just as WCIA reported… yesterday

    *  *  *

    An Illinois news station accidentally aired election day results on Monday showing former Vice President Joe Biden winning Tuesday‘s primary election.

    Station WCIA aired the results during a Monday showing of The Price Is Right, indicating Biden defeating Sen. Bernie Sanders (I-VT) by over 93,000 votes.

    “While watching The Price is Right our station accidentally runs tomorrow’s election results … its [sic] Monday our election in Illinois is tomorrow,” said Sherry Daughtery, who posted a video of the incident. 

    Station Bureau Chief Mark Maxwell said that it was nothing more than a “routine test” rehearsal, and that airing the dry run was an error, according to Breitbart News.

    We do routine test rehearsals before every election to make sure the graphics work properly and to give directors some practice. The error was in putting the dry run on air. That shouldn’t have happened and we’re looking into it. Obviously, we never intended to give the wrong information or wrong impression. None of those numbers were based on any real polling returns. Since your post is being widely shared, I’d appreciate it if you would consider updating the original post so people don’t get the wrong idea. -Mark Maxwell via Sherry Daughtery

     Why does this seem to happen just about every election?


    Tyler Durden

    Tue, 03/17/2020 – 20:26

  • Boeing Seeks "A Minimum $60 Billion" Govt Bailout After Fully Drawing-Down $13Bn Credit Line
    Boeing Seeks “A Minimum $60 Billion” Govt Bailout After Fully Drawing-Down $13Bn Credit Line

    Update (2000ET): Boeing – unsurprisingly – has issued a statement fully backing the idea of free money handouts from the government to save itself.

    We appreciate the support of the President and the Administration for the 2.5 million jobs and 17,000 suppliers that Boeing relies on to remain the number one US exporter, and we look forward to working with the Administration and Congress as they consider legislation and the appropriate policies.
     
    Boeing supports a minimum of $60 billion in access to public and private liquidity, including loan guarantees, for the aerospace manufacturing industry.  This will be one of the most important ways for airlines, airports, suppliers and manufacturers to bridge to recovery. Funds would support the health of the broader aviation industry, because much of any liquidity support to Boeing will be used for payments to suppliers to maintain the health of the supply chain. The long term outlook for the industry is still strong, but until global passenger traffic resumes to normal levels, these measures are needed to manage the pressure on the aviation sector and the economy as a whole.  
     
    We’re leveraging all our resources to sustain our operations and supply chain.  We continue to assess additional levers as we navigate the current challenges and position the industry for the long term. As reported last week, drawing on our delayed draw loan term was a prudent step to increase our liquidity and ease some of the significant near-term pressures on our business. We filed an 8-K today to formally disclose that draw down.

    The $80 billion market cap company may consider selling some stock before demanding that taxpayers foot the bill of its greed which translates into tens of billions in buybacks funded by tens of billions in debt.

    *  *  *

    A new disclosure on Tuesday afternoon details yet another troubling development for Boeing.

    In its latest 8K, the plunging planemaker has completely drawn down its $13.8 billion credit line that it entered in October 2018 as it “navigates current business challenges” exposing just how fast this company is burning through cash.

    “As of March 13, 2020, Boeing has fully drawn on the Credit Agreement, consisting of approximately $13.8 billion, which amount includes additional commitments made subsequent to the initial closing date.  

    For additional information on the terms and conditions of the Credit Agreement, see Boeing’s Current Report on Form 8-K dated February 6, 2020.

    We continue to have access to revolving credit agreements entered into on October 30, 2019, which have also been disclosed. These facilities, which to date have not been drawn upon, provide us with additional liquidity as we navigate the current business challenges. For additional information on these credit facilities, see Boeing’s Current Report on Form 8-K dated October 30, 2019.” 

    This comes just hours after sources told Reuters that Boeing is seeking a bailout of ‘tens of billions’ in US government loan guarantees amid the Covid-19 crisis.

    President Trump has already been on record telling airlines that his administration is prepared to pledge $50 billion in support after passenger activity has fallen off a cliff due to the virus scare.

    Boeing was struggling before the virus outbreak, dealing with 737 Max groundings, production halts, and cancellation orders.

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    Boeing shares have dropped 64% in the last 23 sessions.

    As we raged previously, this bailout demand comes after the company blew nearly $100 billion on  stock buybacks since 2013 helping push its stock to all-time highs not that long ago, and instead of selling stock to get liquidity, they’re asking the Trump administration for a massive bailout.

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    So, no, nobody in their right minds should give Boeing even one penny in “short term aid”. Instead, management and the board should be ordered to sell as much stock as they need – you know, the opposite of buying it back – to maintain the business, even it means sending the stock price crashing far lower.

    Because it’s called capitalism, and because there is no reason why taxpayers should foot the bill for a company which instead of saving cash when times were good, was handing it out to shareholders and a handful of executives, and which should now for some insane reason be eligible for a bailout when times suddenly go bad.

    No: force Boeing – and others like it that spent billions repurchasing its stock while incurring massive amounts of debt – to sell its stock. After all that’s what a public company’s stock is – a currency – and just as Boeing could repurchase it when it had cash, and lifted its stock price to all time highs, it should now sell its stock and use the proceeds to fund itself, like any other corporation does when it needs funding. Last time we checked, Boeing’s market cap was $73 billion, and it certainly afford to drop much more as the company now does the buyback in reverse.

    This is also a warning to Congress and the White House: if chronic stock repurchasers such as Boeing, are bailed out instead of ordered to find their own sources of liquidity, there will be a mutiny in America and rightfully so, because it was Boeing’s shareholders that got rich on the way up, and now it is somehow up to taxpayers to make sure the company, loaded up with record amounts of debt used to fund buybacks, survives one more quarter.

    That, in a word, is bullshit.


    Tyler Durden

    Tue, 03/17/2020 – 20:04

  • US Equity Futures Are Plunging… Again
    US Equity Futures Are Plunging… Again

    It is unclear what the immediate catalyst is this time – aside from the fact that we are now outside of the stock-trading-machines reach – but US equity futures are plunging in early Asia trading.

    Dow futures are down 650 points…

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    Erasing most of the day’s gains…

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    “…and suddenly millions of bailout-demanding voices cried out in terror and were suddenly silenced. I fear something terrible has happened.”

    Some have suggested that Treasury Secretary Mnuchin’s warning of 20% unemployment spooked some traders.

     


    Tyler Durden

    Tue, 03/17/2020 – 19:56

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