Dec 012024
 


Caravaggio Adoration of the Shepherds 1609

 

Trump Nominates Kash Patel For FBI Director (ZH)
Pam Bondi To Visit Capitol Hill Next Week, Joining Musk, Ramaswamy (JTN)
A Top Priority for DOGE: Decentralizing the Federal Government (AmG)
Schedule F – Trump’s Plan A for Emptying the Swamp (Donner)
Mexico, Canada Cozy Up To Trump Amid Tariff Threats, China Goes It Alone (JTN)
Trump Threatens BRICS (RT)
Democrat Mayors Say They Will Use Police To Obstruct Trump’s Deportations (ZH)
CNN Contributor Scott Jennings Joins Los Angeles Times Editorial Board (JTN)
Mass Desertions Crippling Ukrainian Army – AP (RT)
Russia and China Are Rewiring Greek Mythology (Pepe Escobar)
Elon, Are You Musk or Mask? (Pacini)
European Elites Are Destroying Europe – Again (SCF)
‘I Won’t Claim That Milan Is A Safe City’ – Mayor (RMX)
Joe Rogan: ‘Greatest Media Psy-Op In History’ Was Waged Against Trump (NYP)

 

 

 

 

Alex Jones

Border patrol
https://twitter.com/i/status/1862978593497718833

Trump academy
https://twitter.com/i/status/1862997542725644733

Comer

Sachs
https://twitter.com/i/status/1862934557332304075

 

 

A big threat to many. Epstein list, DIddy list, Russia Russia Russia, etc etc.

Trump Nominates Kash Patel For FBI Director (ZH)

After weeks of speculation, President-elect Donald Trump announced on Saturday that he’s picked Kash Patel to replace Christopher Wray as the head of the FBI. Patel has been a longtime critic of the bureau who has called for shutting down the agency’s Washington headquarters, cleaning house when it comes to top leadership, and bringing the nation’s law enforcement agencies “to heel.” According to a Saturday post to Truth Social, Trump called Patel a “brilliant lawyer, investigator, and “America First” fighter who has spent his career exposing corruption, defending Justice, and protecting the American People.” “He played a pivotal role in uncovering the Russia, Russia, Russia Hoax, standing as an advocate for truth, accountability, and the Constitution,” Trump continued.

“Patel has been open about what kind of changes he’d pursue if given the chance. His various proposals include reducing the FBI’s footprint in Washington and “dramatically” limiting its authority. He hopes to curb the power of the Justice Department’s Civil Division and jettison a Pentagon office that produces classified assessments of long-term trends and risks, arguing it is just a tool of the “deep state.” Patel has said he also intends to aggressively hunt down government officials who leak information to reporters, and change the law to make it easier to sue journalists. During an interview with Steve Bannon in December, Patel said he and others “will go out and find the conspirators not just in government but in the media.” -AP

Patel has served as both a federal prosecutor and a public defender, and filled a number of administrative roles at the tail end of Trump’s first term, including on the National Security Council and in the Pentagon. And in a sign this is a good move – in 2021 when Trump floated Patel for deputy director of the CIA or the FBI, former AG William Barr said that would happen “over my dead body.” Former FBI Deputy Director Andrew McCabe said that no part of the FBI would be “safe” with Patel in a leadership position.

In response, Patel told the Washington Post: “Those calling me a danger, let’s just ask them for a proof, a piece of evidence that actually shows I’ve committed any constitutional violations or any ethical quandaries, and I’d love to hear their response to this.” Current FBI Director Christopher Wray will now either have to resign or be fired, assuming Patel makes it through Senate confirmation. And as noted above, Patel has vowed to investigate and possibly prosecute regime-puppet journalists. “Yes, we’re going to come after the people in the media who lied about American citizens, who helped Joe Biden rig presidential elections — we’re going to come after you,” Patel said last year. “Whether it’s criminally or civilly, we’ll figure that out.”

https://twitter.com/i/status/1863016245328756913

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Bondi must be confirmed by the Senate, Musk and Ramaswamy don’t.

Pam Bondi To Visit Capitol Hill Next Week, Joining Musk, Ramaswamy (JTN)

Attorney General-nominee Pam Bondi will travel to Capitol Hill next week to meet with Senate Republicans as a start to her confirmation process. The presidential transition team for GOP President-elect Donald Trump confirmed Bondi’s visit Friday with The Washington Examiner. She will join Trump appointees Elon Musk and Vivek Ramaswamy, who are expected to meet with Republican lawmakers in the House and Senate. Trump nominated Bondi, a former Florida GOP attorney general, after former Florida Republican Rep. Matt Gaetz withdrew his name from consideration last week. Trump appointed Musk and Ramaswamy to head his new Department of Government Efficiency. They are expected on Capitol Hill, in Washington, D.C., on Thursday. Their appointments do not require Senate confirmation.

Bondi is expected to meet Monday with Iowa GOP Sen. Chuck Grassley, who will be the chairman of the Senate Judiciary Committee during the upcoming congressional session, also according to The Examiner. The Judiciary committee will hold the confirmation hearings for Bondi. “Attorney General Nominee Bondi is looking forward to the confirmation process and answering any questions senators might have,” Trump’s presidential transition spokesman Alex Pfeiffer told the news outlet. “Attorney General Nominee Bondi’s life has been dedicated to keeping Americans safe. She looks forward to continuing that work at the Department of Justice.” GOP House Speaker Mike Johnson said Wednesday the meetings with entrepreneurs Musk and Ramaswamy will focus on “major reform ideas to achieve regulatory rescissions, administrative reductions, and cost savings—& revive the principle of limited government.”

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“..nearly 90% of federal government office space in Washington is vacant because most federal workers began working from home during the COVID pandemic and never returned to their offices.”

A Top Priority for DOGE: Decentralizing the Federal Government (AmG)

One of the best ideas I heard from Donald Trump for his second term is to move as many as 100,000 federal employees to “new locations outside the Washington Swamp” to places “filled with patriots who love America.” This initiative will save tax dollars and help depoliticize federal agencies. There also are important security and fairness reasons to relocate these agencies across the United States. I speak from experience. In the early 1990s, the late Senator Robert Byrd (D-West Virginia) drafted legislation to move thousands of CIA employees to West Virginia. Byrd proposed closing 21 CIA offices in Washington, DC, and its Virginia and Maryland suburbs and moving them to large campuses in Jefferson County, West Virginia. My wife and I were CIA employees at the time, and we were thrilled about the potential move of our office out of the DC area.

We were unable to afford a house without a lengthy commute on our federal salaries because the large presence of federal workers and contractors had driven housing prices through the roof. (Five of the seven wealthiest U.S. counties are in the DC suburbs.) We also disliked the liberal culture and high taxes of the DC area. Unfortunately, the Washington establishment, including many well-paid senior CIA officers and contractors, blocked Senator Byrd’s attempt to relocate CIA offices to West Virginia. As a result, when my wife could no longer work full-time because of the disability of one of our children, we ended up buying a house 50 miles from DC with a roundtrip commute of 2.5 to 3 hours per day. Moving federal agencies out of the DC area to areas with affordable housing and reasonable commutes are two good reasons why the Trump administration should decentralize the federal government.

The current practice of locating these agencies within a few miles of the White House and Congress reflects a bygone era before telephones, email, and video conferences. Most federal employees rarely interact with members of Congress and the White House and can do their jobs more efficiently and economically in more affordable and less congested areas of the country. There’s also the issue of fairness. DC, Maryland, and Virginia receive huge tax revenues from federal employees’ salaries and retirement checks. They also benefit from large federal expenditures like the DC Metro, DC airports, free federal museums, etc. Since technological advances have made it unnecessary for these agencies to be located near our nation’s capital, it is time to share the wealth of federal agencies by spreading them across the United States. There is no reason why this government spending and jobs should continue to be concentrated in one part of the country.

Many of these moves would make these agencies more effective and accountable to the American people. For example, relocating the Agriculture Department headquarters to a farming state would move the agency closer to the Americans it was created to serve. Agriculture employees could interact with farmers and ranchers on a daily basis. The Agriculture Department could also hire many employees who actually live on farms and ranches. The same would be true for moving the headquarters of the Transportation Department to Detroit or the Interior Department to Utah or Wyoming. Other possibilities: move the Department of Health and Human Services to North Carolina’s Research Triangle, move the FBI headquarters to the Redstone Arsenal in Huntsville, Alabama, move the Energy Department headquarters to the Los Alamos National Laboratory in New Mexico, and move the Environmental Protection Agency headquarters to Florida.

Large portions of the Pentagon, CIA, State Department, Department of Homeland Security, IRS, and other agencies should also be moved to locations across the U.S. There are two other crucial reasons for decentralizing U.S. government agencies away from the Washington, DC area. The most important is security. Given growing threats from nuclear, biological, and chemical weapons; drones; and violent demonstrations by radical groups, keeping large numbers of federal agencies and employees in the Washington, DC, area is a significant and avoidable threat to national security and the continuity of government. Spreading federal agencies across the United States would make it harder for a U.S. adversary to deal a devastating blow to the federal government with a single attack. Decentralizing federal agencies also would help depoliticize them and fight the so-called “deep state.”

The resistance by federal employees to the president’s constitutional authority as the head of the federal government is driven by a self-serving Washington, DC, culture consisting of entrenched employees, former employees, federal contractors, think tanks, and the mainstream media. Many of these employees do little work and are extremely hard to fire. Even worse, nearly 90% of federal government office space in Washington is vacant because most federal workers began working from home during the COVID pandemic and never returned to their offices.

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“Everyday Americans have complained about federal bureaucratic hegemony for as long as we can remember, but now they will finally have a president in place with specific plans to do something about it.”

Schedule F – Trump’s Plan A for Emptying the Swamp (Donner)

Ever since Election Day, much talk has focused on President-elect Donald Trump’s appointments – in record time – of his Cabinet, advisors, and agency directors. This new administration is a diverse mix, but they all have one thing in common: The returning president sees them as loyal to him and his outsized agenda. But what about all the other, more entrenched denizens of DC? Enter Schedule F – Trump’s bold plan to “drain the Swamp.” Washington is abuzz with the extraordinary diversity of beliefs among the new designees. This is far from typical for incoming presidents, who ordinarily populate their administrations with political veterans in lockstep with their ideology.

But after assembling a largely forgettable team upon his arrival in DC as a novice in 2017, the road-tested 47th president has broken the mold, as is his wont, by selecting Republicans and Democrats, hawks and doves, neoconservatives and populists, corporatists and unionists, insiders and outsiders. Trump’s most famously ambitious objective, however, is to drain and ultimately empty the DC swamp of its unelected, unaccountable, and obstructionist bureaucrats who can thwart the will of the president, as they did so often during his first administration. The arrogance of these supercilious apparatchiks is due to the iron-clad protections they enjoy as civil servants. They cannot be fired no matter their behavior, except in the rarest of circumstances. Presidents come and go, they tell themselves, but we will outlast them all and can act accordingly.

You may recall the so-called “all-of-government” approach to the DEI agenda during the current administration, where the goal of equity must be embraced and adopted not only in social planning and policies but across all agencies and cabinet departments. Well, the incoming president will employ that same broad, sweeping approach to weeding out the most unproductive and recalcitrant employees among the federal government’s 2.2 million-strong civilian workforce. And while DOGE – the newly formed non-governmental Department of Government Efficiency to be headed by Elon Musk and Vivek Ramaswamy – has been the talk of Washington, it faces severe limits in its attempts to affect systemic reform. No less than 60% of the government’s $6.8 trillion budget is “non-discretionary” and largely untouchable because it is devoted to Social Security, Medicare, Medicaid, and interest on the exploding national debt, now more than $36 trillion. Another 13% is devoted to defense, which Trump has pledged to increase. Thus, Musk’s stated goal of cutting $2 trillion in unnecessary federal spending will be extremely difficult, if not impossible, to achieve.

However, taking an axe to the bloated budget ultimately figures to have less permanent impact than Trump’s audacious plans to alter the federal government’s modus operandi and its entrenched culture. The linchpin for his game-changing reforms is reinstating the innocuous-sounding Schedule F, instituted by Trump in the waning days of his first term but immediately reversed by Joe Biden upon taking office. It will empower massive changes in the bureaucracy, re-classifying thousands of careerists as political appointees. It refers to a section of the Civil Service Reform Act of 1978, exempting some federal employees from civil service protections, specifically those “whose position has been determined to be of a confidential, policy-determining, policy-making or policy-advocating character.” Under Trump’s plan, the number of such employees would jump from roughly 4,000 to about 50,000, signaling a sea change in the way Washington does business.

The outgoing Biden administration, deeply fearful of Trump’s bold plans to upend the DC establishment, is working overtime to “Trump-proof” (as much as possible) the federal government, hoping to minimize the damage to its familiar and comfortable way of life. The danger inherent in Schedule F is the likelihood that the next Democratic president could use the same expanded executive control over the bureaucracy to reverse course from Trump and bring in committed progressives who could do even more damage than the present embedded bureaucrats. So, to make these plans stick beyond Trump’s next term, his administration might attempt to move one or more executive agencies out of Washington. This would wrench thousands of civil servants out of their comfort zone, likely leading to a significant number of resignations by those accustomed to life inside the DC beltway.

Despite setting a risky precedent that could backfire on Republicans in the years ahead, Trump is focused on the here and now, believing the addition of Schedule F will force permanent structural change on what has effectively become a fourth branch of government, namely, the administrative state. Everyday Americans have complained about federal bureaucratic hegemony for as long as we can remember, but now they will finally have a president in place with specific plans to do something about it.

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“On January 20th [..] I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders..”

Mexico, Canada Cozy Up To Trump Amid Tariff Threats, China Goes It Alone (JTN)

The United States’ neighbors seem eager to avoid a major trade-and-tariff standoff with Washington as Donald Trump returns to the White House, but Beijing is readying for round two after trading blows with the Republican president during his first administration. Though Trump has long expressed support for tariffs, he set off an international firestorm this week with his Day One plans to shake up trade relations with key economic partners. “On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Trump announced this week. Trump overthrew Republican free trade orthodoxy during the 2016 primary, criticizing foreign trade practices for which he blamed the outsourcing of American jobs. [..]

Mexico
While there appears to be some disagreement between Trump and his Mexican counterpart over the state of their negotiations, both have deemed their recent talks as productive and indicated that they were prepared to work closely with one another. Despite Trump’s support for strict immigration and tariff policies during his first term, he generally enjoyed a strong relationship with former Mexican President Andres Manuel Lopez Obrador. Current Mexican leader Claudia Sheinbaum, however, initially expressed skepticism about Trump’s tariffs plans and suggested they would lead to a direct trade war. “One tariff would be followed by another in response, and so on until we put at risk common businesses,” she said earlier this week. But the pair spoke privately within days and both suggested there was room for discussion.

Trump posted Thursday on Truth Social: “Just had a wonderful conversation with the new President of Mexico, Claudia Sheinbaum Pardo. She has agreed to stop Migration through Mexico, and into the United States, effectively closing our Southern Border. We also talked about what can be done to stop the massive drug inflow into the United States, and also, U.S. consumption of these drugs. It was a very productive conversation!” Sheinbaum disputed that she had made any material commitments but that the pair had discussed immigration and drug trafficking and that tariffs had come up in that context. “It was a good conversation and we are going to keep having conversations,” she said. “Mexico’s stance is not to close borders, but to build bridges between governments and their peoples.”

Canada
Canadian Prime Minister Justin Trudeau on Friday night unexpectedly flew to Trump’s Mar-a-Lago resort home in Florida to talk with him, amid the tariff threat. On Tuesday, Trudeau quickly called Trump after the tariff post to discuss his plans. Trudeau’s government has faced abysmal polling numbers amid widespread economic discontent and frustration over his immigration policies. Some surveys have suggested his Liberal Party faces an electoral wipeout when voters go to the polls and a trade war with the United States could see its prospects fade even further. “We obviously talked about laying out the facts, talking about how the intense and effective connections between our two countries flow back and forth,” Trudeau said Tuesday.

Though not typically viewed as a major factor in the United States’ immigration surge, Canada shares with America the largest undefended border in the world. Ottawa’s own lax immigration policies have contributed, moreover, not just to Trudeau’s low polling numbers, but the security situation for the U.S. During fiscal 2024, U.S. Customs and Border Protection reported a record 198,929 encounters with and apprehensions of illegal border crossers along the Canadian frontier. Among those apprehended were individuals from 97 different countries. Though border security is a significant factor in Washington’s relationship with Ottawa, Canada’s economy is not without some industrial weight of its own and Trump’s primary concern with tariffs seems to be foreign imports.[..]

China
While Canada and Mexico appear at least willing to engage with Trump on his trade and border initiatives, China, the main object of Trump’s ire, is evidently adopting a more bellicose approach to the Republican’s return. “Imposing arbitrary tariffs on trading partners will not solve America’s own problems,” Chinese Commerce Ministry spokesperson He Yadong told reporters. China is already subject to some import tariffs, as Trump’s trade policy pivot carried over to the Biden administration to a degree. In announcing the tariffs this week, Trump further singled out Beijing for additional scrutiny if it did not crack down on the export of fentanyl and other drugs. “Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America,” Trump declared, observing that his move followed failed discussions with China to convince them to crack down.

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Trying to save the dollar. Too late.

Trump Threatens BRICS (RT)

The BRICS nations will be hit with 100% tariffs on their goods if they try to introduce a reserve currency to rival the dollar, US President-elect Donald Trump has warned. Trump has repeatedly threatened to use tariffs to achieve his geopolitical goals. ”The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump wrote on his Truth Social platform on Saturday. Trump went on to say that he would ask the BRICS nations to promise not to create a common currency, “nor back any other currency to replace the mighty US dollar,” or they will face 100% tariffs. ”They can go find another ‘sucker!’” he continued. “There is no chance that the BRICS will replace the US Dollar in International Trade, and any Country that tries should wave goodbye to America.”

BRICS previously comprised Brazil, Russia, India, China, and South Africa, and was expanded in January to include Egypt, Iran, Ethiopia, and the United Arab Emirates. Around 30 other nations have expressed interest in joining the group of emerging economies. Russia, which currently holds the group’s rotating presidency, floated the idea of introducing a BRICS currency in 2022. Brazilian President Luiz Inacio Lula da Silva echoed Moscow’s proposal last year, arguing that having the option of trading in another reserve currency would reduce the BRICS countries’ “vulnerability” to fluctuations in the dollar’s exchange rate.

BRICS leaders stopped short of announcing plans for such a currency at their summit in the Russian city of Kazan last month. Instead, the group pledged to set up a cross-border payment system to function alongside the Western SWIFT network, and to increase their use of local currencies in international trade. ”Cooperation within BRICS is not directed against anyone or anything – neither against the dollar nor against other currencies,” Kremlin spokesman Dmitry Peskov stated in October. “It pursues the main goal of ensuring the interests of those countries that participate in this format.”

Using local currencies to settle bilateral trade bills “helps to keep economic development free from politics,” Russian President Vladimir Putin said at the time. Trump has vowed to use tariffs to settle US trade deficits, force offshore manufacturers to return, and achieve a range of geopolitical goals. In addition to proposing a blanket tariff of 20% on all incoming goods, Trump has threatened Canada and Mexico with additional 25% tariffs if they fail to reduce the flow of migrants and drugs into the US. Trump also declared this week that “we will be charging China an additional 10% tariff, above any additional tariffs,” until Beijing “follows through” on punishing the producers and smugglers of fentanyl, a powerful synthetic opioid.

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Homan: “But, look, me and the Denver mayor, we agree on one thing. He’s willing to go to jail, I’m willing to put him in jail.”

Democrat Mayors Say They Will Use Police To Obstruct Trump’s Deportations (ZH)

There are only two issues that Democrats might care more about than the national legalization of abortion: Blocking the passage of voter ID laws, and, blocking the mass deportation of illegal immigrants. The reason should be relatively obvious – Keeping the border open and illegal immigrants flowing into the US is the key to election victory for progressives in the long run. If leftists are going to exterminate millions of future voters in the womb, then their only other option to fill ballot boxes is to import people from the third world and give them as much free stuff as possible so they’re sure to vote blue. Democrats have been pushing for a sweeping amnesty for illegals for years. If they had won the 2024 election by a comfortable margin it’s a certainty that an amnesty would be at the top of their priority list.

The open border policies and sanctuary actions of the political left are in direct violation of US immigration law, but Democrats act as if these laws are a suggestion rather than the rule. Without federal enforcement squarely in their corner blue cities and states only have one option left – Pretend they have the moral high ground and drum up as much civil unrest as possible. This might work in deep blue sanctuary cities, but the Trump Administration won the election in a landslide which included the popular vote. The majority of Americans want deportations and these cities do not have significant national backing. Despite this fact, some Democrat mayors are threatening to utilize local police forces to obstruct Trump’s mass deportation efforts. Denver Mayor Mike Johnston claims the deportation of illegals is “unconstitutional” and he initially threatened to use local law enforcement to block federal agencies from entering the city to carry out migrant arrests.

He ultimately walked these comments back, but only to a point, saying he’s ‘willing to go to jail’ to prevent deportations. For leftists the standard procedure is to wait and see how effectively they can use activist groups as a shield and then they change their rhetoric accordingly. If they can get the mob to show up on the doorsteps of DHS and ICE officials like they did with Supreme Court judges in 2023 then they may feel emboldened to escalate. Johnston seemed to tone down his chest puffing theatrics after incoming Border Czar Tom Homan gave him a reality check. “You are absolutely breaking the law. All he has to do is look at Arizona v. U.S. and he would see he’s breaking the law, Homan said flatly. “But, look, me and the Denver mayor, we agree on one thing. He’s willing to go to jail, I’m willing to put him in jail.”

Democrats don’t have the testicular fortitude to go into any fight alone, but the deportation debate is within their favorite wheelhouse, which is “resistance against the man”. For the past four years progressives have had the support of every government institution, almost every corporation and every NGO in the US and abroad, yet, they still tried to pretend they were the underdog fighting a rebellion against an oppressor. Now they truly are the underdog and they will certainly try to play to that image using the deportation drama as a background. The Mayor of Tuscon, Regina Romero, has also threatened the use of local police to obstruct deportation arrests. Her messaging is once again centered on the claim that deportations of illegals are a violation of higher moral standards. The law and the will of the voters must therefore take a back seat to the superior virtues of the progressive ideology.

It should be noted that members of the violent Venezuelan gang Tren de Aragua have been intercepted in Denver County and in Cochise County just east of Tuscon. They are specifically organizing in sanctuary cities with lax immigration standards, and they often recruit from illegal migrant shelters already in these areas. Multiple blue cites have stated publicly that they intend to refuse help to immigration agents during deportations. This includes the catch and release of violent criminals in order to prevent their arrest by ICE. In other words, Democrats would rather see rapists and murders back on the streets than hand them over to Trump. The thought process here seems utterly insane, but again, it makes perfect sense when one realizes how much time and energy Democrats have invested in their amnesty model. Without a massive third world voting block bought off with US tax dollars, it’s unlikely that progressives will win another election for a very long time.

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There goes their final bit of credibility.

CNN Contributor Scott Jennings Joins Los Angeles Times Editorial Board (JTN)

Conservative CNN commentator Scott Jennings confirmed Fridayt that he is joining the editorial board of the Los Angeles Times, after the owner’s paper said he intended to hire more conservative voices. LA Times owner Dr. Patrick Soon-Shiong earlier this month said he was hoping to balance out the editorial section of his newspaper by hiring more Republicans, and floated Jennings as one of the voices he wanted to bring on board. Soon-Shiong previously noted that the editorial boards of newspapers are responsible for what stories are assigned, which can be skewed based on the editor’s personal biases. Jennings praised Soon-Siong for his “important and groundbreaking” mission in returning neutrality and balance to the iconic newspaper, and said he has contributed to the paper over the past few years.

“I’ve written columns for the paper over the last few years and was honored to do so under such a storied and important masthead,” Jennings posted on X. “I love newspapers and believe in strong journalism and strong opinion pages that represent a wide array of views. I approach my commentary jobs by starting with the truth and then providing my honest opinion based on my conservative values and experience.” Jennings was a standout during this election cycle as a paid contributor on the CNN cable news network, frequently the lone conservative among more liberal counterparts in spirited panel discussions on politics. Jennings said that the shakeup at the newspaper, the largest daily in liberal-leaning California, followed management’s decision to withhold an endorsement in the presidential election – a big step in fixing the problems facing legacy media.

“Roughly half (or more) of the country often feels like legacy media doesn’t care what it thinks and has little interest in fairly representing its views and values,” Jennings said. “I plan to represent those Americans who believe they are often ignored or even ridiculed in legacy media and applaud Dr Soon-Shiong’s move to bring balance to the editorial board.” Other news outlets, including the Washington Post, have also tried to bring neutrality and balance back to their publications. Washington Post owner Jeff Bezos highlighted the public’s distrust in the news media in an op-ed last month. “Now more than ever the world needs a credible, trusted, independent voice, and where better for that voice to originate than the capital city of the most important country in the world?” Bezos wrote. “To win this fight, we will have to exercise new muscles. Some changes will be a return to the past, and some will be new inventions … None of this will be easy, but it will be worth it.”

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When’s the revolt?

Mass Desertions Crippling Ukrainian Army – AP (RT)

Mass desertion is “starving” the Ukrainian Army and “crippling” Kiev’s battleplans, as troops flee in their tens of thousands, the Associated Press reported on Friday, citing two soldiers who went AWOL, as well as lawyers and a dozen officials, most of whom spoke on condition of anonymity. “We have already squeezed the maximum out of our people,” an officer with the 72nd Brigade told the American news agency, explaining why the problem became so acute. The Prosecutor General’s office lists more than 100,000 soldiers who have been charged over desertion, nearly half of whom quit this year alone, but the actual number is likely significantly higher, AP said. It may be as high as 200,000, one MP told the agency. In some cases, entire units have fled their frontline positions, it was told.

“If there’s no end term [to military service], it turns into a prison – it becomes psychologically hard to find reasons to defend this country,” said one of the deserters, who was named by AP. He was charged shortly after being interviewed. Earlier this year, Kiev adopted sweeping military service reform, hoping it would bolster the rate of mandatory conscription. The US is now reportedly pushing the Ukrainian government to lower the minimum draft age to 18, down from 25. Conscription is being brutally enforced by officers and their civilian helpers. One such official said handling his targets is like “dealing with a cornered rat,” The Telegraph newspaper reported earlier this week. Ukrainian leader Vladimir Zelensky signed a bill into law this week, which waives criminal responsibility for first-time deserters if they volunteer to go back and fight.

In July 2023, Russian President Vladimir Putin warned that a shortage of manpower was the biggest problem facing the Ukrainian military, after a failed “counteroffensive” conducted against Russia earlier that year. “Ukrainian units have suffered huge losses in their suicidal attacks. Tens of thousands of casualties,” he said during a Russian Security Council meeting. “Despite constant raids, the never-ending waves of total mobilization in Ukrainian cities and villages, the current regime is finding that sending reinforcements to the front line becomes increasingly difficult,” he added. “The country’s mobilization reserve is being depleted.” Zelensky has been consistently blaming a shortage of Western-donated weapons for Ukrainian setbacks on the battlefield. Meanwhile Russian officials have accused him of waging a war “to the last Ukrainian” on behalf of the US.

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“As far as the production of relevant missile systems and relevant equipment is concerned, Russia has 10 times more of them than the combined output of all NATO countries..”

Russia and China Are Rewiring Greek Mythology (Pepe Escobar)

Oh, the wonders chips from dishwashers are able to unleash. How come Zeus, King of the Gods, could not have foreseen it? Especially when his divine intuition was aware that in the future his thunderbolts would be replicated in Russia via Oreshnik – a seemingly harmless hazelnut tree. Mythology prefigures post-everything reality. Now let’s go back to Newton for a bit. Based on his formulas, a one meter long uranium projectile flying at very high speed is capable of perforating 6 meters of hard rock (to the sound of Deep Purple’s Highway Star?) A warhead traveling at 1,200 meters per second is capable of perforating 46 meters of concrete. Now imagine impact velocity greater than the speed of sound; the impact depth, of course, is exponentially fiercer. Impact shock, at very high velocity, turns whatever is ahead into gas. A – kinetic – shock wave pops up as deep as 50 meters, swarming the deep underground and crushing, destroying – actually imploding – everything in its wake.

That’s what happened deep underground at the Yuzhmash plant in Dnepropetrovsk – as Oreshnik was conceived by improving these physical principles. And Russia only used blanks for this first Oreshnik test – instead of warheads. Satisfaction guaranteed or your money back. Now cut to Russia and Kazakhstan’s Presidents Vladimir Putin and Kassym-Jomart Tokayev deepening their strategic partnership face to face in Astana – including a renewed drive for strengthening cooperation within the CSTO. Additionally, Kazakhstan was officially invited to become a BRICS partner. Putin answered quite a few press questions on Oreshnik and the wider NATO proxy war. But arguably what was most intriguing was his speech at a restricted attendance meeting of the CSTO Collective Security Council. Some of it deserves to be quoted at length – not least because of the President quipping about “customer satisfaction”:

“The Russian Iskander missile system and its modifications represent the Russian analogue of all three ATACMS missile modifications. The warhead weight in TNT equivalent is about the same, but Iskander has a longer range. The new U.S.-made PrSM missile is not superior to its Russian counterparts in any specification. The Storm Shadow air-launched missile, the French SCALP, and the German Taurus have a warhead weighing between 450 and 480 kilogrammes in TNT equivalent and a range of 500 to 650 kilometres. The German Taurus missile has a 650- kilometre range. The Kh-101 air-launched missile is the Russian analogue of these systems which is comparable in terms of power warhead, but significantly exceeds each of the European-made systems in terms of range. The new U.S.-made PrSM missiles, as I mentioned earlier, as well as the JASSM, are inferior to their Russian counterparts in terms of technical specifications.

“Without a doubt, we are aware of the number of the relevant weapons systems that are in service of our potential adversaries. We know how many of them are kept in storage facilities. We know their exact location, how many weapons have been supplied to Ukraine, and how many more are planned to be supplied. As far as the production of relevant missile systems and relevant equipment is concerned, Russia has 10 times more of them than the combined output of all NATO countries. Next year, we will increase the production by another 25 to 30 percent. We can see that the Kiev regime ringleaders are begging their masters for military equipment of a different kind. Let no one forget about the Kalibr, Kinzhal and Zirkon hypersonic missile systems, which are unmatched around the world in terms of their technical specifications. Their production is also being ramped up and is going at full speed. More such products may show up shortly on our menu of the products of this class, if I may put it that way. As they say, customer satisfaction is guaranteed.”

Putin compared an Oreshnik strike with the impact from a collision with a meteorite: “We know from history what meteorites fell where, and what the consequences were. Sometimes it was enough to form entire lakes.” Even as he stressed that “publicity is inappropriate when dealing with new weapons”. That was exactly the case with Oreshnik: “We waited until the moment when we conducted the test and, in fact, saw a result. And then we made an announcement.” That sets the context for what Mikhail Kovalchuk, the actual creator of these seemingly innocent hazelnuts, the post-everything replica of the thunderbolts of Zeus, told Izvestia on the sidelines of the IV Congress of Young Scientists in the federal territory of Sirius. Kovalchuk is the president of the Kurchatov Institute National Research Center. Essentially, he remarked how “the materials that Russia has that can withstand ultra-high temperatures made it possible to create the Oreshnik system and will make it possible to create other types of hypersonic weapons.”

The whole planet may be asking how did Russia manage to overtake everyone else: “Because we are one of the five world leaders (…) We have created hypersonic weapons in a short period of time. And these are materials that used to work at 1,500 degrees, then at 1,800, and these at 2,000, and we did it, while others did not.” And there’s more: Kovalchuk said, “other materials that can withstand high temperatures will make it possible to create even more advanced weapons. The next step should be materials that can withstand 2,500-3,000 degrees.” That would make possible, for instance, missiles flying at very low altitudes at Mach 15 or even Mach 20 creating even more utterly devastating impact – including plasma shock – than the already tested Oreshnik. Putin, for his part, also said – almost casually – that the Ministry of Defense is currently “picking targets” for more strikes by Oreshnik, including Ukrainian “decision making centers”, industrial production sites and military facilities. Is NATO listening? Obviously not.

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“X has been elected as the preferred political communication space, becoming the common square in which to share and find information, but also a laboratory for sociological analysis of political mutations.”

Elon, Are You Musk or Mask? (Pacini)

Let’s not focus on cars, which are a small percentage of Musk’s industries: what is of interest is technological research, which is also favoured by the saturation of market sectors. We have also seen examples of this in the SMO in the Ukraine, when photos and videos of the Tesla Tank Cybertruck used in conflict zones surfaced, and even Ramzan Kadyrov, the leader of Chechnya, has his own, apparently remotely disabled from Tesla HQ. There are strategic geometries that are redefined through the cover of a well-fed collective imagination. It sometimes happens that the most precious and delicate things are hidden… by putting them out in the open for all to see, but no one notices. Musk’s transhumanist aims are neither a secret nor new. He is the man who made brain chips, human-machine connections, humanoid robots, etc. ‘pop’. If previously these topics were for a few insiders or enthusiasts, with Musk they have become a media product to be consumed.

On 30 January 2024, Musk announced the first Neuralink brain implant on a human being. The American billionaire then added another post, writing: ‘Neuralink’s first product is called TELEPATIA. It will allow you to control your phone or computer and, through them, almost any device, simply by thinking. The initial users will be those who have lost the use of their limbs. Imagine if Stephen Hawking could communicate faster than a typist. That is the goal’. The next step is to make these chips communicate with artificial intelligence. And here we are in the era of transhumanism. As Stephen Hawking himself wrote, ‘Artificial intelligence could develop a will of its own. And it will be extremely good at achieving its goals. If these are not aligned with ours, we will be in trouble. You’re probably not an ant-hater who stomps on these insects out of malice, but if you’re in charge of a hydroelectric project and there’s an ant hill in the region that you have to flood, it’s going to end badly for the ants.

Let’s try not to put humanity in the position of ants. AI could either be the best thing that ever happened to humanity, or the worst. Far from demonising AI tout court, what is interesting to understand is the broad scope of this type of research and its political as well as strategic effect. Projects like this completely redefine the criteria of democracy, of political participation of free will, of the definition of being human or not. You don’t put a man like Musk in government by pure chance. Beyond the ‘pro-life’ electoral proclamations, so to speak, made by Trump, one has to wonder what a man who is pro-life is doing inside the entourage of the new American president. They will get over it, or not, the ‘right-wing’ voters from the Catholic world, especially on the East Coast, who have faced numerous battles on bioethics and bio-law, not only on the issues of gender, abortion and euthanasia, but also on experimental medical research, of which Musk is a passionate philanthropist.

It is probable to believe that the research carried out by his laboratories will not stop in the face of some protest. Michael Foucault’s Lectures on Biopolitics come to mind, when in the Paris years he predicted that the introduction of total control over the living body would not necessarily take place by force, but would pass through the subtle ploy of gradual approval by citizens, who would come to legitimise and even justify any ethical violation, without realising it, in the name of ‘science’. Let’s face it: Trump, with business, has a way with it.

Getting Musk on the electoral victory bandwagon was a real businessman’s move. In one fell swoop, and probably with an agreement that had already been made beforehand, Trump has guaranteed himself control of a good slice of strategic sectors that are undergoing a strong development phase. Especially when it comes to the domains of cyberspace and outer space, Musk is an undisputed leader. And, as such, in September 2023 he transferred part of the control of Starlink to the Pentagon, a move that became crucial for the success of some of the attacks by Ukraine in the Donbass during the SMO. The same Musk who a few months earlier, in early 2023, had offered himself as a mediator for the conflict, even inviting the Pentagon to foot the bill for the satellite internet terminals he had donated to Kiev.

Musk is the man who has taken social networking to a more refined level of hybrid warfare, surpassing Mark Zuckerberg in style and numbers. The purchase of Twitter, renamed X, worth a whopping $45 billion, became a so-called ‘free’ social network, changing the rules of the community, with less censorship of content. This aspect proved to be a winning move. X has been elected as the preferred political communication space, becoming the common square in which to share and find information, but also a laboratory for sociological analysis of political mutations.

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“These charlatan leaders are shameless in their Russophobia and surrogacy for U.S.-led Western imperialism – even to the point of killing their own people..”

European Elites Are Destroying Europe – Again (SCF)

Instead of pushing for a diplomatic solution to the worst conflict on the European continent since World War Two, European political elites are slavishly going along with Washington’s criminal proxy war against Russia, which is in danger of spiraling into a nuclear Armageddon. This week the buffoonish former British Prime Minister Boris Johnson openly admitted that the conflict in Ukraine was a proxy war against Russia. But that didn’t give Johnson pause for thought or shame. He urged the Europeans to send more weapons to Ukraine. Nor did his crass candidness elicit any outcry or condemnation. Johnson, the imbecile, was, in effect, confirming what Russia has been warning is the essence of the conflict in Ukraine – a U.S.-led war using Ukrainian cannon fodder.

Then, we had the chief of Britain’s intelligence agency MI6, “Sir” Richard Moore, holding forth to an audience in Paris that Russia’s Putin was causing “staggeringly reckless sabotage” across Europe. The British spymaster claimed that Russia was threatening the continent with nuclear weapons to weaken NATO support for Ukraine. He omitted the glaring fact that the U.S., Britain, and France have dramatically escalated the conflict by supplying a NeoNazi regime in Ukraine with long-range missiles to strike Russia. Meanwhile, the governments in Germany and Nordic countries are issuing dire public warnings for people to “get ready for war” by building bomb shelters in their homes and stocking up on non-perishable foods. You could hardly make this insanity up except in the dystopian novels of George Orwell. The continent is being led by the nose to disaster by politicians and corporate-controlled media who have lost their minds.

They long ago lost any self-respect or independence and are simply acting as the most pathetic surrogates for U.S.-led imperialism. Even without the ultimate catastrophe of war, Europe has been brought to ruination by elitist politicians who have unquestioningly followed the American agenda of trying to strategically defeat Russia through a proxy war. Central to this U.S. strategic objective is vanquishing decades of mutually beneficial energy trade between Europe and Russia. The sanctions imposed on the Nord Stream gas pipelines by Trump during his first administration, followed by the blowing up of the pipes by the Biden administration in September 2022, are testimony to that bigger picture. None of the European governments or their news media properly investigated that huge crime of state-sponsored terrorism. The proxy war and sanctions on Russian energy that the European leaders happily went along with have caused the European economies to implode.

Critical commentators talk about the deindustrialization of Europe. Even the Financial Times, in a recent in-depth report on Germany’s “broken economy”, sounded aghast at “the most pronounced downturn in Germany’s postwar history.” The report surveys auto, chemical and engineering sectors crucial to the German economy and cites “high energy costs” as the detrimental factor. However, the Western media, even in supposed “in-depth reports” like the Financial Times, are careful not to spell out the obvious cause of Europe’s economic collapse: the U.S.-led proxy war in Ukraine and the consequent damage in Europe’s relations with Russia. Media reports deplore a “jobs massacre” in Germany’s industrial giants like Volkswagen and Thyssenkrupp without explaining the cause as if the calamity is somehow random misfortune. As if that is not bad enough, the incoming Trump administration is lining up heavy tariffs on exports from Europe as well as China, Canada, and Mexico. That will be a coup de grâce for the European economies delivered by its American ally.

Europe is in this appalling predicament – facing economic ruin amid a potential military conflagration – all because it has been misled by people like Ursula von der Leyen, Josep Borrell, France’s Macron, Germany’s Scholz (and Angela Merkel before him), and Netherlands former premier Mark Rutte, who is now the gung-ho head of NATO calling for more European weapons to Ukraine. Many others can be named from the Nordic countries, Poland, and the Baltic states. Rather fittingly, the European elitist political class has a long and vile history of Russophobia, going back to collaboration with Nazi Germany in its genocidal aggression against the Soviet Union. The tragedy of Europe is not something mysterious or ill-fated. It is the direct result of elitist rulers who have assiduously conducted policies that harm European citizens. These charlatan leaders are shameless in their Russophobia and surrogacy for U.S.-led Western imperialism – even to the point of killing their own people through economic devastation or worse – world war.

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Not sure urban planning is the main issue. Being overrun is.

‘I Won’t Claim That Milan Is A Safe City’ – Mayor (RMX)

Italian Interior Minister Matteo Piantedosi has announced the deployment of 600 additional police officers to Milan, citing concerns over integration challenges and rising crime rates, particularly in areas with significant immigrant populations. The announcement follows recent unrest in the Corvetto district, where a 19-year-old Egyptian resident, Ramy Elgaml, died in a road accident after a police chase, sparking mass protests by the considerable immigrant population. During a meeting on security with Milan’s prefect Claudio Sgaraglia and Police Chief Vittorio Pisani, Piantedosi confirmed that the reinforcements, planned before the Corvetto unrest, will enhance territorial control and improve public safety.

He offered damning statistics on the disproportionate involvement immigrants have in committing crime, noting that 65 percent of all offenses in the city are committed by foreign nationals despite representing 20 percent of all residents. “These figures highlight integration challenges that must be addressed to reduce marginalization and its consequences,” Piantedosi stated. He denied comparisons to the recent Parisian suburban riots, calling them “very exaggerated,” but acknowledged that the Corvetto unrest signals issues requiring attention. The Italian minister criticized the reliance on issuing residence permits as a solution to integration issues, pointing out the need for more comprehensive measures. He highlighted efforts already underway, noting over 40 high-impact operations and 162 arrests in Corvetto this year, but accepted that much more needed to be done.

“The second-most important city in Italy after Rome deserves all the attention it can get,” he added. Milan’s left-wing mayor Beppe Sala echoed the need for investments in public housing and community centers to foster integration and accepted that the Italian city can no longer be considered a safe place to live. “I won’t claim Milan is a safe city, but it is making an effort to address challenges faced by all international cities,” he said. Sala claimed that migrant crime was a result of shortcomings in creating spaces for young immigrants to engage positively within their communities, linking the lack of such centers to increased alienation in the suburbs.

With over 60,000 public housing units out of Milan’s 800,000 apartments, Sala described the distribution as “disproportionate,” emphasizing the importance of equitable urban planning. Italy’s Deputy Prime Minister Matteo Salvini, whose League party first made its name in the northern Italian city and the surrounding area, remarked on the meeting in a post on X. “Minister Piantedosi’s data are crystal clear. Yet for the left, it is a non-problem, they seek justifications to the point of falsifying reality,” he wrote. “Woe to anyone who criticizes the dogma of indiscriminate reception at all costs, woe to anyone who criticizes environments in which foreign crime thrives in our cities, woe to anyone who wants to harshly apply the law to intervene in an increasingly unsustainable situation,” he quipped.

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Rogan has put the media world upside down. He has become the topic that they talk about. Last week it was RT, now the New York Post and Just the News, both on the same day.

Joe Rogan: ‘Greatest Media Psy-Op In History’ Was Waged Against Trump (NYP)

Joe Rogan argued that the establishment media that once was friendly to President-elect Donald Trump has since been engaged in a years-long “psy-op” to convince Americans he is dangerous. “The Joe Rogan Experience” is one of the world’s most popular podcasts, and Rogan is seen as having been one of the key players in the 2024 election, for interviewing Trump and then endorsing his bid for the presidency in the 11th hour. The podcaster has since mocked the media for losing their credibility with voters and alienating lifelong liberals like himself. On Thursday’s episode, with comedians Shane Gillis, Mark Normand, and Ari Shaffir, Rogan recalled how friendly people in entertainment and the media once were to Trump, playing clips from his 2012 appearance on “The View” where he was cheered, as well as when he went on Oprah in and she asked him about running for president.

Since then, “The View” has become a frequent source for apocalyptic takes about Trump, and Oprah shredded him while campaigning with Vice President Kamala Harris. Rogan argued that the abrupt shift in tone toward Trump has been shocking in retrospect, “What we saw is the greatest media psy-op in history.” The podcast host continued to hammer legacy media. “What you’re seeing with Trump, regardless of his flaws, is a massive concentrated psy-op,” Rogan said. “They’ve distorted who he is to the point where most people think that way. Most people think that way. They’ve had narratives.” “What is a psy-op? I keep hearing that,” Normand said.

“Psychological operation,” Rogan explained. “Where they’ve decided to distort people’s perceptions of things.” Shaffir replied that older liberals are shocked to hear that former President Obama oversaw more deportations than Trump. “They go, ‘That doesn’t make sense.’ And you go, ‘Right, focus on what’s giving you the reality of the world,’” he said. Rogan then turned to his producer, Jamie, and asked him to show a “wild” quote from former Secretary of State Hillary Clinton from 2008 where she was “saying some wild MAGA-type s—” about “illegal immigrants.” Clinton could be heard in the recording declaring, “I think we got to have tough conditions. Tell people to come out of the shadows. If they’ve committed a crime, deport them, no questions asked.” “She’s a Republican,” Shaffir joked.

In the recording, Clinton continued, “If they’ve been working and are law-abiding, we should say, ‘Here are the conditions for you staying. You have to pay a stiff fine because you came here illegally. You have to pay back taxes and you have to try to learn English. And you have to wait in line.’” The guests expressed their shock at Clinton’s past comments. “’You have to wait in line,’ And everybody’s cheering,” Rogan said. “2008. Hillary Clinton was more MAGA than Trump. But how about that? More MAGA than Trump. It’s all a f—ing illusion. It’s all a f—ing illusion. All of them, when convenient, have said the exact same things.” Rogan argued that this election shows that the tide has turned, however. “They had control of the media up until now. This election was the first time they didn’t really have control of the media anymore,” Rogan argued. When asked why this is, the podcaster replied, “Because of us, because of podcasts. Because of social media, because of X.”

Read more …

 

 

 

 

Fenbendazole
https://twitter.com/i/status/1862727748189401143

 

 

Urso

 

 

Vaccine
https://twitter.com/i/status/1862616283738501504

 

 

Lynx

 

 

Dive

 

 

 

 

Support the Automatic Earth in wartime with Paypal, Bitcoin and Patreon.

 

 

 

 

 

Nov 202024
 


Caravaggio St. John the Baptist in the wilderness 1604

 

Ukraine ATACMS Strike On Russia After Putin Lowers Threshold For Nukes (ZH)
On Way Out, Reckless Biden Allows Deep Russia Strikes (Lauria)
Biden Committing Unconstitutional Act Of War- Rep. Massie (RT)
Kiev Has Permission To Launch Long-Range Strikes – Zelensky (RT)
Ukrainian Attacks Could Merit Nuclear Response Against NATO – Medvedev (RT)
New Russia Nuclear Doctrine: What Has Changed (Sp.)
Kremlin Urges Foreign Nations To Study Russia’s New Nuclear Doctrine (RT)
The Western World Has Degenerated Into Idiocy (Paul Craig Roberts)
Can Trump End Ukraine’s ‘Endless War?’ (Victor Davis Hanson)
Kremlin Reveals Why Ukraine Conflict Will Last ‘A Little Longer (RT)
‘Audit’ By Trump Would Be Nightmare For Zelensky – Moscow (RT)
Secret British Military Cell Plotting To ‘Keep Ukraine Fighting’ (Klarenberg)
Trump Confirms Plan To Use Military For Deportations (RT)
Musk Goes All In On ‘Judge Dredd’ Matt Gaetz (ZH)
Musk Mocks Pandemic Claim From Son of George Soros (RT)
Diabetes Cases Quadruple Over 30 Years; WHO Urges Lifestyle Changes (ET)

 

 

 

 

Hammer

Trump tariffs

RFK

O’Leary

Scott Ritter

Jennings

Tucker

Shirt

 

 

 

 

Dems’ farewell present to America.

Ukraine ATACMS Strike On Russia After Putin Lowers Threshold For Nukes (ZH)

About a day after President Biden authorized Ukraine to use the long-range US-made MGM-140 Army Tactical Missile System to strike deeper into Russian territory, a new report suggests that the Ukrainian Armed Forces have hit a military installation in the western Bryansk region. This comes after Kremlin spokesperson Dmitry Peskov said Russia’s nuclear weapons doctrine was changed and signed by President Vladimir Putin, indicating “the use of Western non-nuclear rockets by the Armed Forces of Ukraine against Russia can prompt a nuclear response.” “For the first time, Ukraine’s Defense Forces struck Russian territory with ATACMS ballistic missiles,” RBC Ukraine news agency reported Tuesday. RBC Ukraine said the military facility near the city of Karachev in the Bryansk region was successfully hit with ATACMS. This location was about 115 kilometers (71 miles) from the border with Ukraine.

“Indeed, for the first time, we used ATACMS to strike Russian territory. The strike was carried out against a facility in the Bryansk region, and it was successfully hit,” one source told the local media outlet. Separately, media outlet Kyiv Post stated the 67th arsenal of the Main Directorate of the Missile and Artillery Directorate of Russia was hit. The facility reportedly had large stockpiles of anti-aircraft missiles, munitions for multiple launch rocket systems, artillery ammunition, and guided bombs, much of which was supplied by North Korea. Kyiv Post noted: “Russian media sources, including residents on social networks, reported explosions coming from within the Karachev district, and suggesting that a “military base” was being attacked.” The Russian Astra Telegram channel shared videos of the incident, while local reports said that there had been strikes on this arsenal in late 2023 and again in June and October this year.

Bloomberg revealed more details about the attack: Russian Defense Ministry confirmed Ukrainian armed forces launched a strike with US-made ATACMS ballistic missiles at a military object in Bryansk region on the border with Ukraine, Interfax reports. • 5 missiles were shot down, 1 damaged; no casualties reported • Missile debris caused fire in a military installation. Earlier, Kremlin spokesperson Dmitry Peskov told reporters that President Vladimir Putin signed new changes to Russia’s nuclear weapons doctrine. Peskov said the new modifications signify “the use of Western non-nuclear rockets by the Armed Forces of Ukraine against Russia can prompt a nuclear response.”

Peskov’s comments were made shortly after President Biden approved Ukraine’s use of ATACMS against military targets deep inside Russia. Additionally, Russian Foreign Minister Sergey Lavrov addressed the nuclear doctrine, stating that the threshold for using nuclear weapons has been lowered, during an event in Rio de Janeiro, Brazil, on the sidelines of the G20 Summit. Lavrov asserted that Russia’s position is that nuclear war won’t happen, and that fundamentally Russian nuclear doctrine doesn’t differ from the United States’ – which sees nukes as a ‘deterrent’. But still, he added, Russia will “react accordingly” to Ukraine firing a US long-range missile.

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The story of the presence of 10,000 or so North Korean troops in Russia/Ukraine is highly questionable. It does come in handy when used as the reason to let Ukraine fire long range missiles at Russian targets.

On Way Out, Reckless Biden Allows Deep Russia Strikes (Lauria)

Biden ultimately sided with the Pentagon, and he couldn’t be more explicit why. He opposed a NATO no-fly zone over Ukraine fighting Russian aircraft, he said, because “that’s called World War III, okay? Let’s get it straight here, guys. We will not fight the third world war in Ukraine.” U.S. Defense Secretary Lloyd Austin at the time backed him up, saying: “President Biden’s been clear that U.S. troops won’t fight Russia in Ukraine, and if you establish a no-fly zone, certainly in order to enforce that no-fly zone, you’ll have to engage Russian aircraft. And again, that would put us at war with Russia.” But now Biden has reversed himself on his sensible positions and is defying the Pentagon to roll the dice that Russia’s warnings, repeated on Monday by Putin’s spokesman, won’t lead to nuclear conflict.

While he previously would not even authorize British long-range missile attacks into Russia in September, let alone U.S. ATACMS, on Sunday he authorized the ATACMS, risking Russia taking direct action against U.S. targets. So what changed Biden’s addled mind? [..] Biden staked his legacy on Ukraine. He was involved in the 2014 coup, in allegedly shady practices there with his son and then in provoking Russia to invade in 2022. He foolishly believed he would prevail in bringing down Putin with an economic, information and proxy ground war. All three are now decisively lost as the U.S. — still under Biden — prepares for the end game. Biden’s only face saver is for Ukraine to get back some of its lost territory by trading for it with Russian territory it seized in Kursk this summer.

So he is authorizing U.S. soldiers to operate ATACMS missiles from Ukraine to beat back a 50,000-man Russian force seeking to take back all of that Russian territory. Part of that force, according to the Pentagon spokesman, is a contingent of at least 10,000 North Korean troops invited by Moscow, thus operating legally on pre-war Russian territory. Yet the presence of these North Koreans has sent the Biden administration and its allied media into paroxysms of near insanity. The New York Times reported on Sunday: “Officials said Mr. Biden was persuaded to make the change in part by the sheer audacity of Russia’s decision to throw North Korean troops at Ukrainian lines. He was also swayed, they said, by concerns that the Russian assault force would be able to overwhelm Ukrainian troops in Kursk if they were not allowed to defend themselves with long-range weapons.”

It is not like Biden doesn’t know the potentially grave consequences he is recklessly unleashing. He was already warned about the no-fly zone and said “that’s called World War III, okay?” He was then warned by the Pentagon against allowing the British missiles and acted like a responsible statesman. But now, when it comes to his precious legacy, he doesn’t appear to give a damn about anything else. He was deprived of a second term (by traitors within his own party he no doubt thinks) and he will risk a NATO-Russia war to avoid the taint of utter defeat in Ukraine. This is what he’s ignoring, according to the Times:

“Some of Mr. Biden’s advisers had seized on a recent U.S. intelligence assessment that warned that Mr. Putin could respond to the use of long-range ATACMS on Russian soil by directing the Russian military or its spy agencies to retaliate, potentially with lethal force, against the United States and its European allies. The assessment warned of several possible Russian responses that included stepped-up acts of arson and sabotage targeting facilities in Europe, as well as potentially lethal attacks on U.S. and European military bases.” Where it goes from there, nobody knows. Thanks, Joe.

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“President Joe Biden has violated the US Constitution and ought to be impeached..”

“Biden is committing an unconstitutional Act of War that endangers the lives of all US citizens..”

“This is an impeachable offense, but the reality is he’s an emasculated puppet of a deep state..”

Biden Committing Unconstitutional Act Of War- Rep. Massie (RT)

President Joe Biden has violated the US Constitution and ought to be impeached for permitting Ukraine to fire American-supplied long-range missiles into Russia, Congressman Thomas Massie has said. Multiple US outlets reported over the weekend that Biden had lifted the restrictions on Kiev’s use of US-supplied rockets. While the White House has neither confirmed nor denied the news officially, a volley of missiles was fired at Russia’s Bryansk Region early on Tuesday. “By authorizing long range missiles to strike inside Russia, Biden is committing an unconstitutional Act of War that endangers the lives of all US citizens,” Massie, a Republican from Kentucky, posted on X (formerly Twitter) on Monday. “This is an impeachable offense, but the reality is he’s an emasculated puppet of a deep state,” he added.

According to anonymous officials who spoke to the media, the US permission would “mostly” apply to the Kursk Region of Russia, which Ukraine invaded in August. The decision was reportedly triggered by the Ukrainian claim that 10,000 North Korean soldiers have been deployed to Kursk to aid the Russian troops. The US and its allies had placed certain restrictions on the use of the weapons they have supplied to Kiev since 2022, in order to maintain plausible deniability regarding their involvement in the conflict with Russia.Russian President Vladimir Putin has said that the use of long-range missiles would change the nature of the conflict and make NATO a direct participant in the hostilities. Moscow has also revised its nuclear doctrine to encompass conventional attacks by proxies.

Massie has served in the US House of Representatives since 2012 and won his latest re-election bid unopposed. His insistence on constitutionalism has often put him at odds with both the Democrats and his own party. Under the US Constitution, only Congress has the power to start a war. The last time this happened, however, was in 1942, when it was declared against Axis-aligned Hungary, Bulgaria, and Romania. Since 1991, the national legislature has passed three Authorizations for Use of Military Force (AUMF), twice against Iraq and once against Al-Qaeda. The AUMF targeted at Al-Qaeda has been stretched to justify the 2001 invasion of Afghanistan as well as subsequent interventions in Syria, Somalia, Yemen and elsewhere.

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“At least six long-range ATACMS missiles were fired into Russia’s Bryansk Region overnight..”

Kiev Has Permission To Launch Long-Range Strikes – Zelensky (RT)

Ukraine’s Vladimir Zelensky has claimed that several Western countries have given Kiev permission to use their long-range missiles against internationally-recognized Russian territory. The New York Times reported on Sunday that US President Joe Biden had lifted some restrictions on the use of US-provided ATACMS missiles. The White House has neither confirmed nor denied the NYT article, which cited anonymous officials. “Now that there are relevant decisions, not just in the media, but also from the relevant countries, it is very important to add to these decisions the number of opportunities with which we can reduce the military potential of the Russian Federation, wherever it is,” Zelensky said on Tuesday at a press-conference in Kiev.

Speaking alongside Danish Prime Minister Mette Frederiksen, Zelensky added that Ukraine is now “working to ensure that all countries support long-range capabilities,” urging Germany in particular to “take the appropriate decision” as well. The UK and France have also reportedly lifted restrictions on the use of the long-range missiles they have provided to Kiev, although they haven’t confirmed the move either. Germany and Italy have publicly said their policy remained unchanged, however, and that their weapons can only be used on Ukrainian soil.

At least six long-range ATACMS missiles were fired into Russia’s Bryansk Region overnight, Moscow’s Defense Ministry reported on Tuesday. Five of them were shot down, while debris from one reportedly caused a localized fire at a military base, causing no property damage. Russian President Vladimir Putin has repeatedly warned that long-range strikes with Western weapons would change the nature of the Russia-Ukraine conflict, making it a direct confrontation between NATO and Moscow. On Tuesday, Russia officially updated its nuclear deterrence doctrine to authorize an atomic response to conventional attacks from countries backed by nuclear powers. This has been widely interpreted as applying to Ukrainian strikes with weapons supplied by the US, UK and France.

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“Russia reserves the right to retaliate with weapons of mass destruction against Kiev and key NATO facilities, wherever they may be located,” Medvedev said. “This would amount to World War III..”

Ukrainian Attacks Could Merit Nuclear Response Against NATO – Medvedev (RT)

Moscow’s revised nuclear doctrine permits retaliatory strikes against NATO for the kind of attacks that US President Joe Biden reportedly authorized last week, former Russian president Dmitry Medvedev has warned. Washington has reportedly granted Kiev permission to use ATACMS ballistic missiles deep inside Russian territory. Medvedev, who serves as deputy chairman of the Russian Security Council, warned on Tuesday that such actions would qualify as a threat warranting a nuclear response under the new doctrine, which President Vladimir Putin enacted earlier in the day. In response to such an attack, “Russia reserves the right to retaliate with weapons of mass destruction against Kiev and key NATO facilities, wherever they may be located,” Medvedev said. “This would amount to World War III,” he added.

Unrestricted strikes using Western weapons are part of Vladimir Zelensky’s ‘victory plan’, which he presented to the US president in September. The reported change in US policy, which was confirmed by several American allies, came after Donald Trump won the presidential election earlier this month. The Republican politician has claimed that he could end the Ukraine conflict in 24 hours, once he is back in office in January. Some of his close supporters have accused Biden of trying to railroad the incoming administration into prolonging hostilities with Russia with his decision.

While Washington has not issued an official statement on the matter, State Department Assistant Secretary for Western Hemisphere Affairs Brian A. Nichols told the Brazilian newspaper O Globo on Tuesday that strikes by Kiev as authorized by Biden may encourage Russia to negotiate peace. In September, Putin issued a warning to NATO member states, which Zelensky was lobbying to authorize long-range strikes on Russia. Kiev is incapable of launching Western weapons without direct help of donor states, so any such attack would put NATO and Russia directly at war with each other, the Russian leader said. The updated Russian nuclear posture introduces several changes, one of which states that an attack by a foreign nation that does not have weapons of mass destruction but is backed by a nuclear power should be considered as a joint attack by both.

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“.. the previous version of the doctrine contained no mention of Russia being authorized to use nuclear weapons if attacked by a non-nuclear state backed by a nuclear power.”

New Russia Nuclear Doctrine: What Has Changed (Sp.)

The new Russian nuclear doctrine recently signed by President Vladimir Putin features several notable articles that were absent from the doctrine’s previous iterations, Russian military analyst Ret.Col. Viktor Litovkin tells Sputnik. “Firstly, the 2020 edition of the doctrine contained no mention of Belarus where we deployed our nuclear weapons and whom we had taken under our ‘nuclear umbrella’,” Litovkin explains. “Secondly, the previous version of the doctrine contained no mention of Russia being authorized to use nuclear weapons if attacked by a non-nuclear state backed by a nuclear power.” According to him, Russia thus sends a direct warning to the United States and NATO who supply Ukraine with long-range missiles and urge Kiev to use them, effectively waging a war against Russia by proxy.

“This is a serious warning that, if they go too far and long-range missiles are used against Russian territory – and these long-range missiles are programmed by NATO specialists because Ukrainian specialists lack the necessary equipment and expertise, not to mention NATO aircraft and heavy UAVs guiding these missiles – we would be empowered to strike against the sites these missiles are launched from,” he adds. Dmitry Stefanovich from the Moscow-based Institute of World Economy and International Relations at the Russian Academy of Sciences also points out that the new edition of the nuclear doctrine states that nuclear weapons could be used in case of a threat to Russia’s “territorial integrity and sovereignty” rather than in case of a threat to “the country’s very existence” as before.

The doctrine thus serves as a reaction to “global processes in the military-political sphere, not all of which are related to Ukraine,” Stefanovich notes. “Most importantly, the document still maintains that nuclear deterrence works only until nuclear weapons are used. One can only guess what would happen ‘beyond the nuclear threshold’ and I hope these speculations remain purely hypothetical,” he remarks.

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“..the weapons authorized by President Biden would enhance Ukraine’s defense capabilities and may encourage Russia to negotiate peace..”

Kremlin Urges Foreign Nations To Study Russia’s New Nuclear Doctrine (RT)

Foreign leaders should carefully study Russia’s new nuclear doctrine, Kremlin spokesman Dmitry Peskov has said, after President Vladimir Putin formally authorized the document. Published on Tuesday, the eight-page policy statement on Russian nuclear deterrence includes changes previewed by Putin in September. It is “extremely important” and should be “the subject of very deep analysis both in our nation and, probably, abroad,” Peskov told journalists during a regular briefing. Among the changes under the new rules, Russia will now consider an attack by a non-nuclear power backed by a nuclear one as a joint attack, and will also treat a massive air assault as warranting a nuclear response. Peskov highlighted specific wording in the doctrine “aimed at ensuring realization by the potential enemy of the inevitability of retaliation in case of aggression against the Russian Federation and/or its allies.”

Last week, US President Joe Biden reportedly granted Kiev permission to use American-made long-range weapons to deliver strikes deep into Russia. The policy change has been confirmed by some US allies, but not by Washington itself. Putin previously said that any such attack would amount to a direct war between NATO and Russia. Ukrainian leader Vladimir Zelensky has included unrestricted attacks with Western weapons in his ‘victory plan’ for the conflict with Moscow, which he touted to Biden in September. Other points of his proposal include the deployment of a “conventional deterrence package” on Ukrainian soil. He reportedly requested the US to station Tomahawk cruise missiles in Ukraine and threatened to launch them against Russia.

Peskov was asked on Tuesday whether such a deployment would trigger a Russian nuclear strike under the new doctrine. He declined to answer directly, instead referring to the new provision about foreign attacks backed by nuclear states that Moscow wants to deter with the update. Moscow reserves the right to use nuclear weapons when its sovereignty and territorial integrity or those of its allies is at stake, the official added. On Tuesday, US State Department Assistant Secretary for Western Hemisphere Affairs Brian A. Nichols appeared to indirectly confirm the policy change when he claimed to the Brazilian newspaper O Globo that the weapons authorized by President Biden would enhance Ukraine’s defense capabilities and may encourage Russia to negotiate peace.

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“..it would make more sense for Trump to deport the Democrats and take in the Hispanics.”

The Western World Has Degenerated Into Idiocy (Paul Craig Roberts)

The moron, Annalena Baerbock, Germany’s foreign minister, has threatened China for supporting Russia. What is it with Western politicians that they think they have authority over the foreign policy of sovereign countries and threaten powerful countries that can blow them off the face of the earth? Why do they so cavalierly stir up powerful enemies that can crush them? Annalena Baerbock is clearly a stupid person. The American Biden regime is even more stupid. The Biden morons have turned a contemptuous eye to Russian military doctrine and the Russian government’s statement that any missiles fired into Russia will be regarded as fired by the US and NATO and will receive a response that includes the possible use of nuclear weapons. The idiot Biden regime has thumbed its nose at Russia and, thereby, regarding the warning as “Putin’s bluff,” has invited nuclear war.

It is possible that Putin will accept Russia’s humiliation in order to spare the world, but he must know that sooner or later he must fight or surrender Russia to Washington. What is being gained from taking such an irresponsible risk? It would be one thing if it were only a risk the consequence of which would be borne only by the Biden morons. But it is another when the risk is borne by the entire world. Where is the world’s denunciation of the Biden idiots for exposing the world to nuclear war? What purpose justifies this extraordinary risk? Is the entire world as stupid as Biden? The notion that America whose government is demonstratively insane is a world leader is beyond absurdity. Such a threat to life as Washington presents cannot be made great. It can only be eliminated. If you care to understand how utterly stupid tens of millions of Americans are, note that about 45% of Americans who voted in the election voted for Democrats.

When almost half of the American population is totally mindless and supports with its votes military attack on Russia, how can Trump make America great again? Indeed, how can America even survive? If you think about it, it would make more sense for Trump to deport the Democrats and take in the Hispanics. America would be better off. To be great a country needs smart people, and clearly Hispanics are smarter than Democrats. We must hope that Trump has risen to the occasion, asked Putin to hold off, and promised to reverse the policy once inaugurated. To remind you, I warned that we would reach this dangerous point because Putin refused to use sufficient force to end the conflict with Ukraine before Washington could get deeply involved. Trying to avoid a larger war, Putin produced one. Note that the US and NATO are already in violation of this new doctrine.

For example, an Aegis Ashore facility, which is almost identical to the anti-ballistic missile Aegis Combat System carried by US naval vessels, just opened in Poland. This is the second such facility on the Russian border (the first is in Romania). Both facilities are armed with the dual-use Mark 41 launch system that can launch both ballistic and Tomahawk cruise missiles, which can be armed with nuclear weapons. The missiles arrive and are loaded into the launchers concealed in large crates that make it impossible for observers to ascertain which type of missile is being used. It is difficult to understand such provocative actions by Washington that clearly threaten the world with nuclear war.

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“..how could Putin reassure the Russian people of anything short of an absolute annexation of Ukraine after the cost of one million Russian casualties?”

1/ Russia doesn’t want to annex Ukraine. 2/ There are not nearly one million Russian casualties.

Can Trump End Ukraine’s ‘Endless War?’ (Victor Davis Hanson)

Trump was elected in part on promises to avoid “endless wars” of the sort that cost American blood and treasure in Afghanistan and Iraq but without resulting in strategic advantage or civilized calm. Yet as a Jacksonian, Trump also restored American deterrence through punitive strikes against ISIS and terrorist thugs like Baghdadi and Soleimani—without being bogged down in costly follow-ups. During the last four administrations, Putin stayed within his borders only during the Trump four years. But upon entering office, Trump will likely still be faced with something far more challenging as he confronts what has become the greatest European killing field since World War II—the cauldron on the Ukrainian border that has likely already cost 1-1.5 million combined dead, wounded, and missing Ukrainian and Russian soldiers and civilians.

There is no end in sight after three years of escalating violence. But there are increasing worries that strategically logical and morally defensible—but geopolitically dangerous—Ukrainian strikes on the Russian interior will nonetheless escalate and lead to a wider war among the world’s nuclear powers. Many on the right wish for Trump to immediately cut off all aid to Ukraine for what they feel is an unwinnable war, even if that abrupt cessation would end any leverage with which to force Putin to negotiate. They claim the war was instigated by a globalist left, serving as a proxy conflict waged to ruin Russia at the cost of Ukrainian soldiers. They see it orchestrated by a now non-democratic Ukrainian government, lacking elections, a free press, or opposition parties, led by an ungracious and corrupt Zelensky cadre that has allied with the American left in an election year.

In contrast, many on the left see Putin’s invasion and the right’s weariness with the costs of the conflict as the long-awaited global proof of the Trump-Russian “collusion” unicorn. Thus, after the 2016 collusion hoax and 2020 laptop disinformation ruse, they see in some of the right’s opposition to the war at last proof of the Russophiliac Trump perfidy. They judge Putin, not China’s imperialist juggernaut, as the real enemy and discount the dangers of a new Russia-China-Iran-North Korean axis. And to see Ukraine utterly defeat Russia, recover all of the Donbass and Crimea, and destroy the Putin dictatorship, they are willing again to feed the war to the last Ukrainian while discounting escalating Russian threats to use tactical nuclear weapons to prevent defeat.

Trump has vowed to end the catastrophe on day one by doing what is now taboo: calling Vladimir Putin and making a deal that would do the now impossible: entice Russia back to its February 24, 2022, borders before it invaded and thus preserve a reduced but still autonomous and secure Ukraine.How could Trump pull that unlikely deal off? Ostensibly, he would follow the advice of a growing number of Western diplomats, generals, scholars, and pundits who have reluctantly outlined a general plan to stop the slaughter.

But how could Putin reassure the Russian people of anything short of an absolute annexation of Ukraine after the cost of one million Russian casualties? Perhaps in the deal, Putin could brag that he institutionalized forever his 2014 annexations of once Russian-speaking majority Donbass and Crimea; that he prevented Ukraine from joining NATO on the doorstep of Mother Russia; and that he achieved a strategic coup in aligning Russia, China, Iran, and North Korea in a new grand alliance against the West and particularly the United States, with the acquiescence if not support of NATO member Turkey and an ever more sympathetic India.

And what would Ukraine and the West gain from such a Trump art of the deal? Kyiv might boast that, as the bulwark of Europe, Ukraine heroically saved the country from Russian annexation as envisioned in the 2022 attempt to decapitate Kyiv and absorb the entire country. Ukraine subsequently was armed by the West and fought effectively enough to stymie the Russian juggernaut, wound and humiliate the Russian military, and sow dissension within the vastly weakened Russian dictatorship, as evidenced by the assassinated would-be insurgent Prigozhin.

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“..it started against the Kiev regime. And now it is continuing as a war between Russia and NATO. That is why it took a little bit longer and will take a little bit longer..”

Kremlin Reveals Why Ukraine Conflict Will Last ‘A Little Longer (RT)

Russia’s military operation was initially aimed at Ukraine but quickly became a conflict with NATO, President Vladimir Putin’s press secretary Dmitry Peskov has said. Putin sent troops towards Kiev in February 2022 after the Ukrainian government openly rejected the Minsk Agreements and began shelling the Donetsk and Lugansk People’s Republics in the Donbass. In an extended interview with Indian media on Tuesday, Peskov was asked why the hostilities have taken 1,000 days and counting, and if he could predict when they might end. “When all this started, it started against the Kiev regime. And now it is continuing as a war between Russia and NATO. That is why it took a little bit longer and will take a little bit longer,” the Kremlin spokesman said.

“It will come to an end as soon as we reach our goals,” Peskov said, adding that Russia would prefer to achieve its objectives through negotiations, but Ukraine has literally outlawed any talks with Moscow. “So that’s why we’re continuing the military operation, because the possibility of peaceful negotiations is now being denied, both by Kiev and their [bosses] in Washington,” Peskov told the Indian media. The initial spring 2022 peace talks between Russia and Ukraine were reportedly derailed by Boris Johnson, the British prime minister at the time, who told Kiev that the West was not ready to make peace with Moscow. The US and its allies have funneled almost $200 billion worth of aid to Ukraine since 2022, including weapons, ammunition and combat equipment such as artillery, tanks, fighter jets and long-range missiles, while insisting this did not make them a party to the conflict.

On Tuesday morning, Ukraine used long-range ATACMS missiles provided by the US to strike Russia’s Bryansk Region, confirming media reports that Washington had given Kiev permission to do so. Putin has warned that such a step would change the very nature of the conflict and make NATO a direct participant in the hostilities. He also updated Russia’s nuclear doctrine to allow a strategic response to a conventional attack by the proxy of an atomic power.

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Put Musk and Ramaswamy and their investigators on it. They’ll have a ball.

‘Audit’ By Trump Would Be Nightmare For Zelensky – Moscow (RT)

A possible financial review under the administration of US President-elect Donald Trump must be a cause of alarm for Ukrainian leader Vladimir Zelensky, Russia’s envoy to the UN Vassily Nebenzia has said. Trump’s election victory earlier this month, having made a critical approach to Ukraine part of his platform, poses a threat to Zelensky, because he could force an unfavorable peace deal on Kiev in order to deliver on his promise to end the fighting. Commenting on Monday at a UN Security Council meeting dedicated to Ukraine, Nebenzia said officials in Kiev likely have more personal reasons to be concerned.“The new authorities might want to check all the money that was sent to Ukraine and conduct a full audit of the assistance already provided,” the Russian envoy stated.

“This scenario… is much more frightening for Zelensky, because a significant part of the aid has been simply plundered and misappropriated by [him] and his entourage,” he added. Nebenzia cited media reports that Ukrainian officials had gone into panic mode after news of Trump’s victory. All Western support for Kiev is inherently vulnerable to graft, he claimed, stating that “the scale of the corruption is something we can only guess.” Trump has called Zelensky the “greatest salesman ever” over the Ukrainian’s repeated extraction of aid money from the incumbent Democratic US administration. Government graft has been consistently named by observers as a major problem for Ukraine since it gained independence in the 1990s. Transparency International last year ranked it 104th among 180 nations for which the West-sympathetic organization calculates its corruption perception index.

The Zelensky government claims that it has made great strides in tackling the problem. Kiev has reportedly complained about US Ambassador Bridget Brink, maintaining that she creates “unnecessary tensions” with Washington by pressing the corruption issue. Contrary to the assurances, the problem seems acute, Time magazine reported last November, citing a source claiming that Ukrainian officials are “stealing like there’s no tomorrow.” Pentagon Inspector General Robert Storch reported this week that “corruption continues to complicate Ukraine’s efforts to achieve its EU and NATO aspirations,” particularly due to multiple scandals in the Defense Ministry.

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Desperately seeking relevance.

Secret British Military Cell Plotting To ‘Keep Ukraine Fighting’ (Klarenberg)

Emails and internal documents reviewed by The Grayzone reveal details of a cabal of British military and intelligence veterans which plotted to escalate and prolong the Ukraine proxy war “at all costs.” Convened under the direction of the British Ministry of Defense in the immediate aftermath of Russia’s invasion of Ukraine in February 2022, the cell referred to itself as Project Alchemy. As British leadership sabotaged peace talks between Kiev and Moscow, the cell put forward an array of plans “to keep Ukraine fighting” by imposing “strategic dilemmas, costs and frictions upon Russia.” The leaks obtained by The Grayzone expose a hidden hand behind Britain’s policy in Ukraine, showing in unusually granular detail how it aimed to engineer a long, grinding war through covert operations that stretched the bounds of legality.

Project Alchemy’s proposed schemes spanned every conceivable field of warfare, from cyber attacks to “discreet operations” to outright terrorism. The secret cell even put forward a plan to “aggressively pursue” and “dismantle” independent media outlets – including The Grayzone – through an aggressive campaign of legal harassment and online censorship, so they “would be forced to close.” The incendiary blueprints were fed to the highest levels of the British state and national security structure, where they were apparently well-received. Founded by a senior British Ministry of Defence official, Project Alchemy is composed of veteran military and intelligence operatives united by a desire for all-out war between the West and Russia. Some have trained Ukrainian forces in clandestine sabotage tactics. Members of the national security cabal tacitly acknowledged that their proposed operations stretched the bounds of British law.

Thus they suggested that London should be “prepared to creatively use the law” to meet its goals, and even be willing to erase “legal restrictions on UK deniable ops” against Russia. Some of Project Alchemy’s most extreme recommendations have already been implemented, often with calamitous results. These include the cell’s proposal to strike Crimea’s Kerch Bridge, which prompted a Russian escalation that saw punishing attacks on Ukraine’s electricity infrastructure. Alchemy also envisioned the construction of a secret, Gladio-style army of Ukrainian partisan fighters to carry out assassination, sabotage, and terror missions behind enemy lines. It appears the British premier, Keir Starmer, fell under the influence of the Project Alchemy cabal soon after his election in July, when he eagerly embraced the role of “wartime prime minister.”

After pledging to support Ukraine “as long as it takes,” however, Starmer is quietly backing away from the maximalist policy. In Kiev, Ukrainians are left to ponder how their “friends” in London got them into this mess, and why they can not, or will not get them out of it. The British spooks who gathered around Project Alchemy reasoned that the longer the proxy war continued, the more Russian president Vladimir Putin’s “credibility at home and abroad drops, and his ability to fight NATO is degraded.” Today, Project Alchemy’s gambit has clearly backfired, as Putin remains popular within Russia, while a crumbling Ukrainian army loses territory by the day despite constant re-arming by the West. But the war planners in London remain staunchly committed to escalation, refusing to shelve their diabolical proposals.

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“Under legislation from 1976, US presidents can declare national emergencies at their discretion..”

Trump Confirms Plan To Use Military For Deportations (RT)

US President-elect Donald Trump has confirmed that he intends to declare a national emergency and use military resources to deport undocumented immigrants. During his re-election campaign, Trump vowed to launch “the largest deportation program” of criminals in US history, and repeatedly floated the possibility of involving the army. On Monday, Trump shared a post by conservative activist Tom Fitton on the Truth Social media platform. Fitton, who is the president of Judicial Watch, a public interest group dedicated to investigating government corruption, had written that Trump’s administration would “declare a national emergency and will use military assets” to address illegal immigration “through a mass deportation program.” Reposting Fitton’s comment, Trump wrote, “TRUE!!!” Under legislation from 1976, US presidents can declare national emergencies at their discretion and redirect funds designated by lawmakers for other purposes.

Trump’s plans regarding illegal migration include ramping up deportations, reinstating a “travel ban” for certain countries, and closing the border to asylum seekers. He’s also vowed to end birthright citizenship for infants born on domestic soil to undocumented migrant parents. Trump’s top immigration adviser Stephen Miller told The New York Times last year that the military could construct large-scale camps to hold people slated for deportation. According to Department of Homeland Security estimates, around 11 million people are in the US illegally. Trump declared a national emergency at the southern US border amid a surge in asylum seekers during his first term in 2019 and reappropriated military funds for the construction of a wall along the border with Mexico. When Joe Biden was elected president in 2021, further construction of the wall was halted.

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“Matt Gaetz has 3 critical assets that are needed for the AG role: a big brain, a spine of steel and an axe to grind..”

Musk Goes All In On ‘Judge Dredd’ Matt Gaetz (ZH)

Elon Musk has come out swinging for Rep. Matt Gaetz, as the Florida lawmaker and President-elect Donald Trump’s pick for attorney general faces scrutiny over sexual misconduct allegations that may throw his Senate confirmation into disarray. “Matt Gaetz has 3 critical assets that are needed for the AG role: a big brain, a spine of steel and an axe to grind,” Musk wrote in a Tuesday post on X. “He is the Judge Dredd America needs to clean up a corrupt system and put powerful bad actors in prison,” Musk continued, adding “Gaetz will be our Hammer of Justice.” Musk also addressed the allegations, saying he considers them “worth less than nothing,” as “Under our laws, a man is considered innocent until proven guilty.

“If AG Garland (an unprincipled douchebag) could have secured a conviction against Gaetz, he would have, but he knew he could not. “Case closed.” Senators on both sides of the aisle are requesting more information into a House ethics probe of Gaetz which allegedly contains accusations that Gaetz paid for sex with a woman who was 17 at the time. The DOJ investigated the allegations, but decided in February of 2023 not to file any charges against him. Gaetz has denied the allegations.

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Scamdemic.

Musk Mocks Pandemic Claim From Son of George Soros (RT)

SpaceX and Tesla boss Elon Musk has ridiculed a claim made by Alex Soros, son of billionaire financier George Soros, that Americans would be “screwed” if there was another pandemic. The comment appeared to target President-elect Donald Trump’s choice for the next US health secretary, Robert F. Kennedy Jr. In a post on X (formerly Twitter) on Monday, Soros, heir to his father’s business and philanthropic empire, suggested that the plans for health agencies announced by RFK Jr. “could weaken a future pandemic response.” “They are playing with fire! Americans will be screwed if there is another pandemic!” Alex Soros wrote. ”*scamdemic,” responded Musk, a close confidant of Donald Trump, who played a prominent role in the former president’s re-election campaign.

RFK Jr., an anti-vaccine activist and environmentalist, has pledged to revise the work of US health agencies, claiming that the Food and Drug Administration’s “war on public health is about to end.” During the Covid-19 pandemic, RFK Jr. railed against response measures such as lockdowns and mandatory vaccinations, claiming they were more about power grabs than genuine public health concerns. Among RFK Jr.’s current healthcare policy priorities are reviewing vaccine safety and combating chemicals, pollutants, and additives that he claims contribute to chronic disease in the US. Critics argue that RFK Jr.’s views run contrary to the medical and scientific consensus.

Elon Musk has also slammed governments’ handling of the Covid-19 pandemic and mass inoculations, suggesting that the “vaccine is potentially worse” than the disease if administered to the whole population. The tech mogul said in 2021 that he and his family were vaccinated against the virus. Trump has nominated Musk for a role aimed at streamlining the work of the government, co-leading a Department of Government Efficiency – which will be an advisory body without the status of a department.

American investor and philanthropist Alex Soros is one of five children of Hungarian-American billionaire investor and liberal George Soros. The 39-year-old chairs the Board of Directors of the Open Society Foundations, and sits on the investment committee of Soros Fund Management. His father, 94-year-old George Soros, has an estimated net worth of nearly $7 billion. George Soros has for decades been a prominent US Democratic Party donor. In the run-up to the recent US presidential election, Musk earned the nickname “George Soros of the Right,” due to his large financial contributions to the Trump campaign. The Tesla CEO has on numerous occasions been critical of Soros, accusing him of trying to destroy Western civilization and of hating humanity.

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“Out of every $4 in health care spending in the United States, $1 was used for people diagnosed with diabetes..”

That Tedros guy still has a job? Whatever he urges, who will listen?

Diabetes Cases Quadruple Over 30 Years; WHO Urges Lifestyle Changes (ET)

Hundreds of millions of people globally have become diabetic over the past 30 years, leading the World Health Organization (WHO) to call for “urgent action” to deal with the health crisis. The number of adults living with diabetes worldwide has more than quadrupled since 1990, the WHO said in a Nov. 13 statement citing the results of a recent study it supported. An estimated 828 million adults were living with the condition worldwide in 2022, an increase of 630 million from 1990. The lowest prevalence of diabetes was in “Western Europe and East Africa for both sexes, and in Japan and Canada for women.” The highest prevalence was in Polynesia and Micronesia, certain nations in the Caribbean, North Africa, and the Middle East, as well as Pakistan and Malaysia. In total, 14 percent of the world’s adults had diabetes in 2022, double the seven percent 30 years back.

“We have seen an alarming rise in diabetes over the past three decades, which reflects the increase in obesity, compounded by the impacts of the marketing of unhealthy food, a lack of physical activity, and economic hardship,” said WHO Director-General Dr. Tedros Adhanom Ghebreyesus. “To bring the global diabetes epidemic under control, countries must urgently take action. This starts with enacting policies that support healthy diets and physical activity, and, most importantly, health systems that provide prevention, early detection, and treatment.”Nearly 450 million adults aged 30 and above with diabetes remained untreated in 2022. This represented 59 percent of all adults who have the condition, a 3.5-fold jump. Ninety percent of untreated adults were living in low- and middle-income countries.

According to data from the CDC, around 38 million Americans were living with diabetes in 2021, which was roughly one in 10 individuals. One in five didn’t know they had the condition. Nearly 100 million, or more than one in three Americans, suffered from pre-diabetes. A bipartisan group of senators in June announced legislation aimed at improving the early detection and screening of type 1 diabetes, titled “Strengthening Collective Resources for Encouraging Education Needed (SCREEN) for Type 1 Diabetes Act.” Early identification “can prevent life-threatening conditions like diabetic ketoacidosis and potentially allow for the use of therapeutics to delay the clinical onset of the condition, helping to improve patients’ quality of life and reliance on insulin,” said Sen. Susan Collins (R-Maine).

A report from the American Diabetes Association last year found that the country’s annual cost of the illness was nearly $413 billion in 2022, which included more than $306 billion in direct medical costs. Out of every $4 in health care spending in the United States, $1 was used for people diagnosed with diabetes, it said.“In addition to its enormous physical and health burden, diabetes also carries an untenable cost burden that is often disproportionately borne by vulnerable and underserved communities,” said Charles Henderson, CEO of the organization. He pointed out that the medical costs for such people have risen by 35 percent over the previous decade. “Reducing the cost of diabetes is essential to improving the lives of all people with diabetes.”

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Naomi Wolf

 

 

Mercury

 

 

McCullough
https://twitter.com/i/status/1858659012796973480

 

 

Optimus

 

 

Cork

 

 

Swans

 

 

Coke
https://twitter.com/i/status/1858865116285968806

 

 

First date

 

 

Jaguar
https://twitter.com/i/status/1858833641519890711

 

 

Ducklings
https://twitter.com/i/status/1858903107104608555

 

 

Cran
https://twitter.com/i/status/1858755011142185146

 

 

 

 

Support the Automatic Earth in wartime with Paypal, Bitcoin and Patreon.

 

 

 

 

 

May 012021
 


Pieter Bruegel the Elder The Fall of the Rebel Angels 1562

 

Why Are The Covid Vaccines So Toxic? (AchGut)
Covid Lies Cost 100,000 US Lives – Mark Skidmore (USAW)
Perspectives on the Pandemic: “Blood Clots and Beyond” (JP)
Biden Mulls Vax Mandate For All US Military After Huge Numbers Refused (ZH)
It’s Time To Start Shunning The ‘Vaccine Hesitant’ (Stern)
Supreme Court: Pfizer, Moderna et al. May Own Your Genes Once Injected (CB)
Record 34% Of US Household Income Now Comes From The Government (ZH)
US Household Income Soared 21% In March, Largely Due To Stimulus Checks (JTN)
Election Panic Coming in 2022 – Martin Armstrong (USAW)
Rudderless, Leaderless, and Drifting (Kunstler)
The Myth of “Efficient Markets” (Rickards)
EU Charges Apple With Breach Of Competition Law (DW)
First 100 Days: 300,000 Deportations (CD)

 

 

 

 

Google translate from German. Long and good. Do read.

Why Are The Covid Vaccines So Toxic? (AchGut)

In calendar week 16/2021, more than 3,700 people in the USA had died in close connection with the vaccination with (biochemically very similar) SARS-CoV-2 mRNA vaccines from Pfizer / BioNTech or Moderna, with around 210 million inoculated doses. That’s 17 deaths for every million people vaccinated. AstraZeneca’s vaccine, which is based on an adenovirus, has 24 deaths per million vaccine doses in the UK and 18 in France, and 6 in Germany. On average, the mRNA vaccines bring about 20 deaths per million vaccinated, the AZ Vaccine on 10. The figures were compiled by the Rossiya Segodnya agency from Moscow, but we checked them on a random basis: they are correct. Of course, a causal relationship has not been proven in many cases, but such an accumulation of medical reports of deaths in connection with vaccinations has never occurred in the last few decades.

With conventional vaccines, one or two people vaccinated die for every 10 million people vaccinated. Even if you subtract half of the reported deaths in order to price in the spontaneous mortality rate of the sometimes very old vaccinated people, you still have to ask yourself: Why do the SARS-CoV-2 vaccines have such a high lethality? Two major causes of death stand out: anaphylactic shock and bleeding disorders. It has long been known that free mRNA in the extracellular space can trigger acute allergic reactions up to anaphylactic shock. In this syndrome, the immune system overreacts and there is massive release of vasodilating and bronchoconstricting substances. This leads to a general dilation of blood vessels (vasodilation) and bronchospasm with severe restriction of gas exchange in the lungs.

The blood fluid seeps into the periphery of the blood circulation, resulting in a lack of volume, as not enough blood fluid can be pumped back to the lungs and heart. At the same time, the little blood that is still available is no longer adequately supplied with oxygen. The heart begins to race, but the blood pressure drops: shock. The patient dies of cerebral hypoxia (insufficient oxygen supply to the brain) or heart failure. In many cases, the mRNA-carrying lipid particles that make up the vaccines from Pfizer/BioNTech and Moderna burst when passing through the logistics chain or are already defective from production. As a result, the naked mRNA is brought into the extracellular space (the space between the cells of the muscle into which the injection is made) during the injection. They cause anaphylactic shock in susceptible patients. The risk of anaphylactic reactions with mRNA vaccines is many times higher than with conventional vaccines. That explains some of the dead, probably just under half.

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“..the question, from a pure cost benefit, is how many lives are saved as opposed to how many lives are damaged from the treatment..”

Covid Lies Cost 100,000 US Lives – Mark Skidmore (USAW)

Michigan State Economics Professor Mark Skidmore revealed more than three years ago, there was $21 trillion in what he called “Missing Money” from government books. He’s doing some new number crunching surrounding public policy and the effects on the Covid 19 (CV19) pandemic. It’s all laid out in a brand new report. What he found is appalling. One big fact his research revealed is up to 100,000 lives could have been saved by using Hydroxychloroquine (HCQ). Instead, the medical community and the mainstream media trashed it and told people it was “dangerous” and it “did not work.” That was a total lie. Dr. Skidmore explains, “So, we have all these countries that used it, and a number of countries, such as the United States, that for some reason did not use it and actually prevented it . . . claiming it was unsafe.

“So, our estimate is if the U.S. just allowed it and made it widely available from the beginning, we could have saved 80,000 to 100,000 lives.” Dr. Skidmore said medical officials such as Dr. Fauci, who serves as the director of the U.S. National Institute of Allergy and Infectious Diseases, knew HCQ worked well against Corona Virus. In fact, Dr. Skidmore goes on to point out, “There was a paper published in the Virology Journal in 2005 . . . this is the outfit that Dr. Fauci oversees . . . . So, their journal published this paper that said HCQ was effective in treating the Corona Virus. The people who authored this study had been a part of the CDC at the time. So, we have known this for a long time. . . .We also now know there are as many as 200 peer reviewed studies that say it is effective if taken early on when somebody gets sick. It’s pretty overwhelming evidence if you take it early on, it’s extremely effective.”

That’s not all that works, and this too was suppressed and trashed by most of the medical community. Ivermectin, Vitamin D, Vitamin C and Zinc are a few that are also proven scientifically effective to reduce or obliterate CV19. Dr. Skidmore says, “These are inexpensive ways to help protect yourself and your family. . . . It’s overwhelming evidence that these different types of treatments are very effective.” Another revelation of Dr. Skidmore’s study was the CDC changed the definition on how to count CV19 deaths. Skidmore says, “In the middle of the crisis last year, the CDC changed the definition on how you count fatalities, but they only did it for Covid. It amounts to this, basically, the way we counted how somebody died, was you ‘died of’ some disease of some condition. They changed the definition so that it was more characterized that you ‘died with.’ And, if the CDC would not have changed the definition for Covid deaths? Skidmore says, “I think we would have had far fewer deaths. The data suggests that. . . . If they used the old number, there would have been less (CV19 deaths).”

Dr. Skidmore’s study also points out that the vaccines were never approved by the FDA. Dr. Skidmore explains, “You can look it up. The vaccines are only authorized for emergency use, which means it’s experimental, and it’s still experimental. They are tracking it all. . . . The (vaccine) fatalities are now up to 3,000, and there are many strange and unusual side effects that have occurred. It’s the same thing in Europe and other places. There are many reports of neurological problems, blood clots and a range of related issues. . . . There are all kinds of negative reactions and the question, from a pure cost benefit, is how many lives are saved as opposed to how many lives are damaged from the treatment (vaccines), and we don’t really know what the injuries are, and we don’t know what the long run effects will be.”

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“..we may be creating dangerously overactive immune systems in billions of unwitting subjects.”

Perspectives on the Pandemic: “Blood Clots and Beyond” (JP)

In February, 2021, Professor Sucharit Bhakdi, M.D. and a number of his colleagues warned the European Medicines Agency about the potential danger of blood clots and cerebral vein thrombosis in millions of people receiving experimental gene-based injections. Since then, two of the four injections have been suspended or recalled in Europe and the United States for just that reason. In this episode of Perspectives, Professor Bhakdi explains the science behind the problem, why it is not just limited to the products already suspended, and why in the long term we may be creating dangerously overactive immune systems in billions of unwitting subjects.

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Illegal as hell, but who cares anymore?

Biden Mulls Vax Mandate For All US Military After Huge Numbers Refused (ZH)

President Biden told NBC News in an interview which broadcast Friday that he’s mulling ordering all US military personnel to get a COVID-19 vaccine as commander-in-chief. “I’m not saying I won’t” rule it out, he emphasized in the new interview. This would also mean that anyone wanting to enter military service would have to receive the jab as a requirement to get in, which would likely cause a blow to military recruitment in the near-term. However, he didn’t outright say he’s ready to pull the trigger on the policy, which if enacted would constitute the largest federal government-ordered mandate in terms of forcing the vaccine on some 1.3 million active duty service members, not to mention over one million more reserve personnel.

Describing the decision as a “tough call” he suggested it was being hotly debated. “I don’t know. I’m going to leave that to the military,” Biden told NBC News’s Craig Melvin. “I’m not saying I won’t. I think you’re going to see more and more of them getting it. And I think it’s going to be a tough call as to whether or not they should be required to have to get it in the military, because you’re in such close proximity with other military personnel.” In follow-up to Biden’s comments, national security advisor Jake Sullivan confirmed that a DoD-wide vaccine mandate is “something the Department of Defense is looking at in consultation with the interagency process and [I] don’t have anything to add on that subject today.”

The whole debate was sparked in earnest when multiple headlines earlier this month took note of the large numbers of military members who were rejecting the vaccine. For example, one recent USA Today report noted that nearly 40% of US Marines who have been offered a COVID-19 vaccine have refused to recieve it, according to Pentagon figures. And an earlier report in The Guardian described that “Reluctance to be vaccinated for Covid-19 is now rife in the US military, with about a third of troops on active duty or in the national guard refusing to be administered the vaccine.”

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The new religion.

It’s Time To Start Shunning The ‘Vaccine Hesitant’ (Stern)

For the better part of a year, as the coronavirus racked up hundreds of thousands of American deaths, the flickering light at the end of the tunnel was herd immunity — the antibody force-shield that comes when enough people have survived the illness or have been vaccinated against it. “Go get vaccinated, America,” President Biden said in his speech to Congress this week, referring to the shot as “a dose of hope.” Anthony Fauci, the nation’s top infectious disease doctor, suggested in December that if 75% to 85% of the population got vaccinated, we could reach herd immunity by June. And with herd immunity, we’d return to a measure of “normalcy,” meaning indoor dining, movie theaters and hugs.

But herd immunity is slipping away because a quarter of Americans are refusing to get the COVID-19 vaccine. Dr. Gregory Poland, director of the Mayo Clinic’s Vaccine Research Group recently said: “There is no eradication at this point, it’s off the table. …We as a society have rejected” herd immunity. Hmm, no! “We” have not rejected anything. A quarter of the country is ruining it for all of us. It’s not just wacky former rockers who have put herd immunity out of reach. It is white evangelicals (45% say they won’t get vaccinated). And it is Republicans (almost 50% are refusing the vaccine). In Texas, 59% of white Republicans have said “no” to the vaccine. You can slap the euphemism “vaccine hesitancy” on the problem, but in the end the G.O.P., and the children of G.O.D., are perpetuating a virus that is sickening and killing people in droves.

A big part of the problem stems from the cultish relationship many evangelicals and Republicans have with former President Donald Trump. They absorbed his endless efforts to downplay the danger of the virus and turn public health precautions into a political freedom movement. But the time for analyzing why these human petri dishes have chosen to ignore the medical science that could save them, and us, is over. We need a different strategy. I propose shunning. Biden’s wildly successful vaccine rollout means that soon everyone who wants a vaccine will have one. When that happens, restaurants, movie theaters, gyms, barbers, airlines and Ubers should require proof of vaccination before providing their services.

And it shouldn’t stop there. Businesses should make vaccination a requirement for employment. A COVID outbreak can shut down a business and be financially devastating. And failure to enforce basic health and safety measures is not fair to employees who have to work in offices, factories, and stores where close contact is required. Things should get personal, too: People should require friends to be vaccinated to attend the barbeques and birthday parties they host. Friends don’t let friends spread COVID.

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“hacking the software of life.”

Good overview of history of legal implications of gene tech.

Supreme Court: Pfizer, Moderna et al. May Own Your Genes Once Injected (CB)

Yes, this article contains a lot of scientific and legal mumbo-jumbo. But in a nutshell, biotechnology companies can own living things if said things are genetically-modified and not naturally-occurring. No mouse is born in nature like the OncoMouse. It is thus patentable. Oil-eating bacteria come from genetic manipulation, thus patentable. Notice how all these so-called doctors and scientists avoid pointing fingers at Pfizer, Moderna, Johnson & Johnson et al. when someone dies within hours, days or weeks of receiving their shots. It’s almost as if said doctors and scientists are carefully navigating the trademark and patent landscape. They don’t want to trespass on someone else’s property, if you will. Moderna owns several mRNA patents. Doctors and hospitals wanting a piece of the mRNA pie cannot bite the hand that feeds them.


The synthetic mRNA of Pfizer and Moderna, along with the viral vector DNA delivery systems of Johnson & Johnson and AstraZeneca, change your genetic code, making you “genetically-modified.” Granted mainstream media say the foregoing is “conspiracy theory.” But Moderna Chief Medical Officer Tal Zaks tells you straight up that 1) the shots change your genetic code and 2) the shots do not stop the spread of COVID-19. He says the Moderna shot is “hacking the software of life.” Viral vectors do the same thing. So do these companies “own you” once you get the shots? Well, they own mice and bacteria created with their inventions. Once you get these shots, you are no longer a “naturally-occurring” human being. Prosthetic limbs, breast implants, etc. are not “natural” per se. But they are removable and not part of what fundamentally makes you human. Gene therapy is irreversible. Do the math yourself.

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“And that’s how creeping banana republic socialism comes at you: first slowly, then fast.”

Record 34% Of US Household Income Now Comes From The Government (ZH)

Following today’s release of the latest Personal Income and Spending data, Wall Street was predictably focused on the changes in these two key series, which showed a modest jump in personal spending, which however was dwarfed by a record surge in personal income, to be expected in the month when Biden’s latest $1.9 trillion stimmy hit. But while the change in the headline data was notable, what was far more remarkable was data showing just how increasingly more reliant on the US government the population has become. We are referring, of course, to Personal Current Transfer payments which are essentially government sourced income such as unemployment benefits, welfare checks, and so on. In March, this number exploded to a mind-blowing $8.1 trillion annualized, which was not only double the $4.1 trillion from February, but was also $5 trillion above the pre-Covid trend where transfer receipts were approximately $3.2 trillion.

This means that excluding the $8.1 trillion surge in govt transfers, personal income excluding government handouts would be virtually unchanged from a year ago level at $16TN. [..] government stimulus checks hitting personal accounts [..] in turn helped double the savings rate to a whopping 27.6% from 13.6% in February.

Stated simply, what all this means is that the government remains responsible for a third of all income, or 33.8 to be precise! Putting that number in perspective, in the 1950s and 1960s, transfer payment were around 7%. This number rose in the low teens starting in the mid-1970s (right after the Nixon Shock ended Bretton-Woods and closed the gold window). The number then jumped again after the financial crisis, spiking to the high teens. And now, the coronavirus has officially sent this number to a record 34%! And that’s how creeping banana republic socialism comes at you: first slowly, then fast.

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And then prices start soaring.

US Household Income Soared 21% In March, Largely Due To Stimulus Checks (JTN)

U.S. household income spiked an astronomical 21% in March, due in large part to the $1,400 coronavirus stimulus checks that went out that month, the government said on Friday. A press release from the Bureau of Economic Analysis said that, in the U.S., “personal income increased $4.21 trillion (21.1 percent) in March,” while disposable personal income increased by an even higher 23.6%. The spike “largely reflected an increase in government social benefits,” the BEA said, noting that the American Rescue Plan Act “established an additional round of direct economic impact payments to households.” The BEA also noted a rise in personal consumption expenditures, one that appears to be tied to the ongoing reopening of major swaths of the U.S. economy, particularly restaurants. “Within services, the largest contributor to the increase was spending for food services and accommodations,” the press release said.

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“One of the number one selling objects in Europe is a safe. People are storing cash. Biden was the straw that broke the camel’s back.”

Election Panic Coming in 2022 – Martin Armstrong (USAW)

According to a recent poll, 51% of Americans think Joe Biden cheated to get into the White House. The breakdown is 74% Republicans and an astounding 30% Democrats think cheating played at least a part of the 2020 Election outcome. In Arizona, the 2020 Election ballots are finally being audited as court battles to stop it continue. Legendary financial and geopolitical cycle analyst Martin Armstrong is predicting an election “panic in 2022.” Armstrong explains, “It means extremely high volatility. Despite whatever they want to say, there is a large proportion of the population that do not believe the election. Polls are saying it’s at 51%, but it’s probably close to 60% or 70%. You are also seeing that 60% of Americans want a third party, and you are talking about Democrats and Republicans. . . .

I think because we have such a high number of people who do not trust the election results, I don’t think they are going to be able to get away with rigging the elections again. It’s going to turn into violence. There is no question about that.” Armstrong also sees Biden Administration tax plans on things like capital gains causing problems in the not-too-distant future. Armstrong says, “If they eliminate capital gains, I don’t care if you are Republican or Democrat, you are going to have to sell. Your accountant is going to say if you don’t sell, you going to pay twice or three times as much in taxes next year. So, they can create a serious, serious collapse in the world economy. This is in addition to all this Covid nonsense that they have created.”

Armstrong has been saying for months that deflation would be the overarching theme in the economy. Is that going to continue or has there been a change? Armstrong says, “Deflation is now over. People have to understand. It has nothing to do with the supply of money. . . . If you don’t see a bright rosy future, what do you do? You save your money. . . . One of the number one selling objects in Europe is a safe. People are storing cash. Biden was the straw that broke the camel’s back. People are now seeing that things are going to cost more in the future than they do today. They have also created shortages because of these lockdowns. The inflation is just beginning to start now. It’s based on shortages, and it will continue going into about 2024.”

The bottom line on the cause of inflation, according to Armstrong, is “a loss of confidence in government.” Armstrong also predicts, “We are looking at the prospect of a serious war between 2025 and 2027. All this is completely because of this great reset nonsense. They have been using the Corona Virus as an excuse to try and shut down the economy. If you look at rents in New York City, they are in a freefall. Real estate is going crazy outside of the urban centers. In Florida, what was a $500,000 house last year is now more than $1 million.” On Trump, Armstrong says, “I don’t see him returning to office before 2024.” But, if massive ballot fraud is proven with the Arizona audit going on right now, Armstrong predicts, “The state legislature can recall a Senator” who won by election rigging.

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“There’s no Heimlich maneuver for a nation choking on debt.”

Rudderless, Leaderless, and Drifting (Kunstler)

The numbers are already pretty grim: 70 percent of Republicans and 30 percent of Democrats say they doubt the veracity of the 2020 election. Will the discovery that massive, widespread election fraud actually occurred lead to a constitutional crisis? How will Joe Biden survive in office if a growing percentage of the public sees him as illegitimate? And what might happen if the establishment attempts to blow the whole matter off? Can they still say “nothing to see” when the public has seen so much that they can’t unsee? None of that will happen in a vacuum. Plenty of other events are roiling in the background with the potential to go critical.


Joe Biden’s proposals to jack the US economy by $5-plus-trillion won’t be very good for the credibility of the US dollar, with other countries already eager to dissociate themselves from dollar-based global trade payment arrangements. But that’s just financial esoterica compared to what’s happening on-the-ground across America, with households running on debt and back payments for rent and mortgages piling up, and landlords and banks taking the hit in the meantime. There’s no Heimlich maneuver for a nation choking on debt. And that plan to become the Big Rock Candy Mountain, where they hung the jerk who invented work, is liable to disappoint even the mesmerists in the Bureau of Labor Statistics.

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If you don’t allow markets to function, they cannot be efficient, either.

The Myth of “Efficient Markets” (Rickards)

Mainstream economists have insisted for decades that markets are highly efficient, and they do a nearly perfect job of digesting available information and correctly pricing assets today to take account of future events based on that information. In fact, nothing could be further from the truth. Markets do offer valuable information to analysts, but they are far from efficient. Markets can be rational or irrational. Markets can be volatile, irrationally exuberant, or in a complete state of panic depending upon the emotions of investors, herd behavior, and the specific array of preferences when a new shock emerges. If markets were so efficient, why was Wall Street surprised when it was obvious to anyone paying attention that Biden was going to raise the capital gains tax?

The capital gains tax increase information had been there for all to see for six months, but it took a press release to get Wall Street to sit up and take notice. It should have been priced in long before, and the announcement just would have confirmed market expectations. So the next time you hear about efficient markets, take it with a large grain of salt. But my forecast from six months ago was wrong in one respect. I said the tax rate on capital gains would almost double from 20% to 39.6%. It turns out the rate will actually be 43.4% once a 3.8% investment income surtax is added on top. That surtax is a holdover from Obamacare.

If one were to add state and local income taxes, the combined rate on capital gains could exceed 50%, depending on the jurisdiction. Of course, capital gains taxes are imposed on investments you make from after-tax dollars, so even the initial investment has already been taxed. And the corporations whose stock you buy pay corporate income tax too. When those burdens are included, you’re lucky to get even 25% of your gains back net of taxes. This will be a headwind to stock markets for the foreseeable future.

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“The US company could be slapped with fines of as much as 10% of its global turnover.”

EU Charges Apple With Breach Of Competition Law (DW)

EU antitrust regulators on Friday charged Apple with illegally distorting competition in the music-streaming market through restrictive App Store rules. It is one of the biggest-ever competition cases against the US tech giant and could lead to hefty fines. An Apple spokesperson rejected the accusations, saying the EU’s case was “the opposite of fair competition.” The charges follow an EU investigation stemming from a complaint by the popular music-streaming service Spotify. “Our preliminary conclusion: Apple is in breach of EU competition law,” EU Competition Commissioner Margrethe Vestager said in a statement.

The European Commission, the EU’s executive arm, said Apple’s App Store rules force rival developers to use its in-app payment system — which charges up to 30% commission — and prevent them from informing users of cheaper payment methods. Vestager said this ultimately raised the cost for consumers and limited their choice. “By setting strict rules on the App Store that disadvantage competing music streaming services, Apple deprives users of cheaper music streaming choices and distorts competition,” the commissioner’s statement said. “This is done by charging high commission fees on each transaction in the App Store for rivals and by forbidding them from informing their customers of alternative subscription options.”

This is the first EU antitrust charge targeting Apple. It follows an investigation by the bloc, launched in June, which found that the App Store commission fees are passed on to consumers. The probe was launched after Swedish music streaming app Spotify, which competes with Apple Music, lodged a complaint about the company’s rules two years ago. The European Commission said Apple now has the chance to respond to the allegations and present its case in a hearing before a final ruling is handed down. The US company could be slapped with fines of as much as 10% of its global turnover.

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Biden’s Promise: Moratorium on deportations for the first 100 days of his administration.

Biden’s Reality: Over 300,000 deported in 3 months.

First 100 Days: 300,000 Deportations (CD)

Rights group United We Dream warned Tuesday that unless he takes immediate steps to improve his administration’s treatment of immigrants, President Joe Biden is at serious risk of repeating the destructive failures of former President Barack Obama, who deported roughly three million people during his eight years in office. Despite Biden’s characterization of Obama’s mass deportations as a “mistake” and pledge to usher in a more humane immigration system, United We Dream estimates that the administration has deported just over 300,000 people since January—largely using a Trump-era policy called Title 42.

The policy was first issued by the Centers for Disease Control and Prevention (CDC) last March—at the start of the coronavirus pandemic—and has been kept in place by the Biden administration. As Human Rights Watch (HRW) explained earlier this month, “The Title 42 expulsion policy has effectively closed the U.S. border to nearly all asylum seekers based on the misapplication of an obscure, 75-year-old public health law.” “That law, the Public Health Service Act of 1944, was designed to confer quarantine authority to health authorities that would apply to everyone, including U.S. citizens, arriving from a foreign country,” HRW noted. “Quarantine authority was never meant to be used to determine which noncitizens could or couldn’t be expelled or removed from the U.S.”

In a statement on Monday, Cynthia Garcia of United We Dream stressed that “Title 42 was designed under one of the most anti-immigrant administrations in modern history.” “President Biden and the Department of Homeland Security must be reminded that their inaction to protect vulnerable immigrant communities seeking refuge in the U.S. is not only putting lives on the line; it upholds a white nationalist immigration system that seeks to expel and keep Black and brown immigrants out at any cost,” said Garcia, who voiced dismay at the Biden administration’s deportation of vulnerable Haitians and others.

Read more …

 

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Dec 162018
 
 December 16, 2018  Posted by at 10:45 am Finance Tagged with: , , , , , , , , , , ,  3 Responses »


Paul Klee Carnival in the snow 1923

 

Why The Fed Won’t Save The Stock Market (MW)
Why The US-China Trade Talks Will Work: The Personal Touch (Kuhn)
12 Months Of Bitcoin Misery (MW)
Failed By Both Major Parties, Betrayed Britain Lurches Towards The Abyss (G.)
British Minister Warns Brexit Is Stuck As No-Deal Or Referendum Loom (R.)
UN Climate Change Talks Avoid Contentious Issues In Draft Agreement (O.)
Deportations Under Trump Are On The Rise But Still Lower Than Obama’s (WaPo)
How The ‘Five Eyes’ Cooked Up The Campaign To Kill Huawei (SMH)
The Russia Investigations: A Case Still Unproven (NPR)
How Putin’s Russia Turned Humour Into A Weapon (BBC)
Late Night Swapped Laughs For Lusting After Mueller (S.us)

 

 

Where do we start? Because they killed it beyond salvation? Because to save it they would have to retreat completely? Because they have no idea what’s going on since all they know is based on false assumptions? Take your pick.

Why The Fed Won’t Save The Stock Market (MW)

Another brutal week left the stock market with its worst start to a December in 38 years, and a meeting of Federal Reserve policy makers might not offer the relief some investors are pining for when they conclude a two-day policy meeting on Wednesday, says one economist. How bad was it? Stocks ended a week of often whipsaw trading with a decided move to the downside Friday. The Dow Jones Industrial Average dropped nearly 500 points, leaving it more than 10% below its early October all-time closing high, meeting a widely used definition of a market correction. It joined the S&P 500 and the Nasdaq Composite which were already in correction mode. The S&P and Dow are negative for 2018, while the Nasdaq is clinging to a 0.1% year-to-date rise.

And it’s hardly an auspicious start to a month that’s historically a positive one for equities. Over the first nine trading days of the month, the Dow is down 5.6%, the S&P is off 5.8% and the Nasdaq is 5.7% in the red. That’s the worst start to a December for all three benchmarks since 1980, according to Dow Jones Market Data. That sounds bad, but it probably isn’t bad enough to convince the Fed to pause when it comes to interest-rate rises, said Tom Porcelli, chief U.S. economist at RBC Capital Markets, in a note. Remarks by Fed officials, including Jerome Powell, have led some investors to look for the central bank to potentially end the rate-hike cycle after delivering a December increase, but Porcelli argued that still strong economic data meant the debate should be more focused on the merits of policy makers’ expectations for three or more rises in 2019.

And while stock-market volatility has seen a significant uptick, “equities have not deteriorated enough to warrant a pause,” Porcelli said, noting that unlike, say, the emerging-market crisis of 1998 when stocks fell sharply, U.S. equities today are still basically flat year-to-date when it comes to total returns. “On that basis, it is also worth pointing out that you cannot make the case that there is a negative wealth effect at play that is feeding through to the macro backdrop,” he wrote.

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Everybody knows a solution must be found.

Why The US-China Trade Talks Will Work: The Personal Touch (Kuhn)

The dinner meeting between the two presidents, Xi Jinping and Donald Trump, lasted well longer than planned. Xi began with a well-prepared, detailed presentation that lasted 45 minutes and impressed even the US hardliners in attendance with its substance and resolve. Trump, as expected, extolled the meeting, but more meaningfully, I believe, China’s Ministry of Commerce immediately went on record to call the talks “very successful”. Other Chinese officials quickly affirmed that new measures would combat intellectual property theft. Even more significant, perhaps, rumours were afoot that major changes were in the works for “Made in China 2025,” including reductions in state subsidies for new technologies and a greater openness to participation by foreign companies.

The announcement that US Trade Representative Robert Lighthizer, a China hawk, was placed in charge of negotiations was greeted positively by Chinese officials who have long requested clarity in a single US point person with whom to negotiate. It is a socio-political principle that nationalistic hawks can often achieve peace more easily than globalist doves because it is more difficult for domestic detractors to undercut them as being “soft”. Regarding the apparent 90-day “drop dead” date, Larry Kudlow, Trump’s top economic adviser, said “If there’s good, solid movement and good action, he ‘[Trump] might be willing to extend.”

The arrest of Huawei’s CFO triggered accusations and counter accusations, but neither side, tellingly, called the trade talks into question. In fact, there were parallel affirmations the talks would continue. Peter Navarro, the White House adviser considered with good reason to be the most hawkish on China, said that stock markets should be “patient and optimistic”. Navarro, he of the “death by China” screed, said what? Optimistic! Moreover, when I speak to Chinese economists, I hear the conviction that many of the US demands – IPR protection, opening up markets, reductions in state subsidies – are precisely what China needs to do anyway.

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The swings forbid any notion of it being an investment.

12 Months Of Bitcoin Misery (MW)

Monday, Dec. 17, will mark one year since the price of bitcoin — the best-known cryptocurrency — hit an all-time high just shy of $20,000. For bulls who bought the hype, it’s been a long — and painful — ride down. At the time, the digital currency was up more than 1,000% for 2017, both the CME Group and Cboe had just launched bitcoin futures contracts, and everyone seemed to be making money as talk about the previously obscure crypto market made its way into the mainstream media. In retrospect, it appeared all too easy: Bitcoin rose 11 of the 12 weeks leading up to the Dec. 17 peak and logged gains in eight of the last nine months in 2017. Day traders were millionaires, analysts were predicting further drastic price increases and investors jumped on what looked like an endless gravy train.

According to Crypto Fund Research, 85 crypto-related funds launched in the first three months of 2018, and at Jan. 1 2018, there was $5.8 billion of assets under management in the crypto hedge fund industry, compared with $675 million a year earlier. But, in the blink of an eye, the tide turned: A January correction soon turned into a collapse and then turned into what was dubbed a prolonged crypto winter — a season that has yet to end. From their peaks, most major coins lost more than 80%. Bitcoin has shed as much as 85%. Ether, the popular currency that runs on the ethereum blockchain, fell as much as 95%, losing its title of the second-largest digital currency.

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Britain’s been too slow to ditch its old parties. Same as US. All over continental Europe, the process has started already.

Failed By Both Major Parties, Betrayed Britain Lurches Towards The Abyss (G.)

The seesaw is smashed. The pendulum is stuck. The tides are frozen. All the trusty images that used to help explain British politics have been scrambled by Brexit. Back in simpler times, a bad week for one politician or party translated into a good one for a rival. Seesaws went up and down. Pendulums swung. Tides flowed in and out. It is one of the unique characteristics of the Brexit crisis that it makes winners of none and losers of all. The past seven days have demonstrated that this is a wind so ill that it blows no one any good. The most deserved losers are the Brexit ultras. They finally launched their leadership coup and failed miserably. Without a plausible plan or a credible leader, these are the men who put the ass into assassin.

After all their prating about “taking back control”, they couldn’t even organise the removal of a mortally wounded prime minister. The Brexit fanatics have always been a minority of a minority and now no one can be in any doubt about that. And this same gang claim they could negotiate a superior agreement with the EU or handle a no-deal Brexit in 100 days that are left? Oh, please. Yet there was no humility in defeat from the ultras. It was with a poisonous lack of grace that they continued to demand Mrs May’s resignation even after she had prevailed in the confidence vote that they forced upon their party. You are entitled to belly laugh the next time that anyone tries to commend Jacob Rees-Mogg as a courteous gentleman.

The mask of phoney civility slipped when this serpent in a double-breasted suit continued to hiss for Mrs May’s head after his coup had failed. Alas for her, the defeat of her tormentors did not amount to a victory for the prime minister. To keep her job for now, she had to pledge to give it up before the next election. Mrs May purchased her survival in the currency of humiliation. [..] Mrs May remains imprisoned by the parliamentary maths, her past mistakes and her lack of dexterity. After all the to and fro between Westminster and European capitals, pinging from one side of the Channel to the other like a battered shuttlecock, there is no better prospect of her deal passing the Commons than there was on Monday when she swerved the vote.

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Now the Tories want a second vote?!

British Minister Warns Brexit Is Stuck As No-Deal Or Referendum Loom (R.)

Britain’s exit from the European Union was heading for an impasse, one senior minister said on Saturday, after a week in which Prime Minister Theresa May failed to win EU assurances on her deal and pulled a vote because UK lawmakers would defeat it. With just over 100 days until Britain leaves the bloc on March 29, Brexit remains up in the air with growing calls for a no-deal exit, a potentially disorderly divorce that business fears would be highly damaging, or for a second referendum. May pulled a vote on her deal on Monday after acknowledging it would be heavily defeated over concerns about the “backstop”, an insurance policy designed to avoid any hard land border for Ireland but which critics say could bind Britain to EU rules indefinitely.

Two days later, she survived a plot to oust her from those in her own party who support a hardline Brexit, showing the level of opposition she faced. May herself has acknowledged that Britain’s parliament appears deadlocked with no clear support for any option, with the small Northern Irish party that props up her government leading the criticism of her deal. “Brexit is in danger of getting stuck – and that is something that should worry us all,” pensions minister Amber Rudd wrote in Saturday’s Daily Mail newspaper. “If MPs (lawmakers) dig in against the prime minister’s deal and then hunker down in their different corners, none with a majority, the country will face serious trouble.”

[..] Rudd – one of five ministers who, according to newspapers, are leaning toward having a second referendum – said a no-deal scenario “mustn’t be allowed to happen” and urged lawmakers from all parties come together to stop it. “We need to try something different. Something that people do in the real world all the time, but which seems so alien in our political culture – to engage with others,” she said. “We need to acknowledge the risk that parliament could spend the next precious few months debating about preferred solutions and end up with no compromise, no agreement and no deal.”

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These conferences are simply the wrong way to treat the issue. Incumbent governments and industries owe their powers to what they must now change radically. That threatens those powers, so they’ll delay where they can.

UN Climate Change Talks Avoid Contentious Issues In Draft Agreement (O.)

The UN met on Saturday in Poland to discuss a draft agreement on climate change, which sources said was likely to pass, as exhausted delegates made compromises on some key issues but left other contentious problems to be resolved next year. The result will not be the breakthrough campaigners and some countries were hoping for, but will keep discussions alive on formulating key aspects of the implementation rules for the 2015 Paris accord. Delegates have been thrashing out a text on the complex mechanisms required to put the Paris goals into effect for the past two weeks, and appeared partly successful as the talks overran their Friday deadline and looked likely to continue into late afternoon on Saturday at least.

The text will give countries clarity on key points such as accounting for their greenhouse gas emissions and recording their carbon reductions. They will also go some way to encourage the stepping up of each country’s climate change efforts. Among the issues holding up progress is the highly technical question of what should happen to the market for carbon credits, held by some countries in recognition of their emissions-cutting efforts and their carbon sinks, such as forests. These credits count toward countries’ emissions-cutting targets. Brazil introduced wording that would benefit the country for its huge rainforest cover, but critics said contained loopholes that allowed for double counting of carbon credits would severely undermine the integrity of the system.

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Not to say what happens today is not bad, but that it’s happened for many years. it’s America, not Trump.

Deportations Under Trump Are On The Rise But Still Lower Than Obama’s (WaPo)

Amid President Trump’s push for tighter immigration policies, the United States deported more than 256,000 people in 2018 — the highest number since the Obama administration, new data shows. U.S. Immigration and Customs Enforcement Deputy Director Ronald D. Vitiello announced Friday that in the past fiscal year, which ended in September, ICE has detained “a record number” of people in the country illegally and that the number of those deported has risen about 13 percent since 2017. The data, which comes from a new agency report, shows that 145,262 of those deported were convicted criminals and that 22,796 had criminal charges pending against them. In addition, 5,872 were reported as known or suspected gang members, and 42 were believed to be terrorists, according to the report.

The number of families and unaccompanied children who were deported also increased. ICE said that 2,711 who were traveling in families and 5,571 unaccompanied children were removed from U.S. soil. “We’ve continued to achieve gains in all meaningful enforcement measurements,” Vitiello said, despite significant underfunding. The strain on resources is a consequence of current border crisis, he said. “With the continued surge and without congressional action to fund the agency at adequate levels, ICE may be forced to make difficult choices that could hamper our ability to fulfill our public safety or national security mission,” he added, noting that the agency does not want to release detainees as a result of budgetary constraints because it would create a public safety risk.

[..] Mary Bauer, deputy legal director for the Southern Poverty Law Center, said it is “appalling and morally unconscionable that this is the place where we find ourselves” — deporting people “without a sense of priorities.” “It used to be that there was a sense that they were looking for people who had committed serious crimes,” she said in a phone interview with The Washington Post. In fact, U.S. deportation numbers were higher during the Obama administration, reaching 409,849 in 2012, according to ICE’s Enforcement and Removal Operations reports. Data shows that in 2015 and 2016, however, the number of those deported dropped to 235,413 and 240,255, respectively.

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They’re all ruled by their intelligence services.

How The ‘Five Eyes’ Cooked Up The Campaign To Kill Huawei (SMH)

The man who runs an agency that unlocks electronic secrets had a poacher’s view of the threat: “Offence informs defence and defence informs offence. Or to put it another way, to catch a thief, you will need to think like one (or perhaps, be one).” Since then he has given a TV interview and opened a Twitter account with a lively first post; “Hi internet, ASD here. Long time listener, first time caller.” Burgess has even dabbled in some light trolling of Huawei. On November 21 when a Huawei executive boasted of successfully separating the core and access parts of a 5G network in New Zealand he tagged the ASD boss on his post. To the surprise of most Burgess replied; “Thanks for sharing. In my business I’ve never seen anything “fully isolated…”.

Seven days later New Zealand banned Huawei from supplying 5G equipment to mobile phone company Spark. Then on December 6, the head of the Canadian Security Intelligence Service, David Vigneault, who had hosted the annual Five Eyes gathering, used his first ever public speech to warn of an emerging threat. “CSIS has seen a trend of state-sponsored espionage in fields that are crucial to Canada’s ability to build and sustain a prosperous, knowledge-based economy,” he said. “I’m talking about areas such as AI [artificial intelligence], quantum technology, 5G, biopharma and clean tech. In other words, the foundation of Canada’s future growth.”

No one was in any doubt he was talking about China. A formal ban on Huawei and ZTE from Ottawa is expected within weeks. A day after the Canadian spy boss spoke, the head of MI6 was on his feet at his old Scottish university, St Andrews. In a speech described as “rare” he warned that “much of the evolving state threat is about our opponents’ increasingly innovative exploitation of modern technology”.

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Weakish piece, but the point must be made.

The Russia Investigations: A Case Still Unproven (NPR)

Editor’s Note: This story has been edited to make it clear that it is analysis and that the allegations of the Trump campaign conspiring with the Russians remain unproven.

Political and legal danger for President Trump may be sharpening by the day, but the case that his campaign might have conspired with the Russian attack on the 2016 election is still unproven despite two years of investigations, court filings and even numerous convictions and guilty pleas. Trump has been implicated in ordering a scheme to silence two women ahead of Election Day in 2016 about the alleged sexual relationships they had with him years before. That is a serious matter, or it might have been in other times, but this scheme is decidedly not a global conspiracy with a foreign power to steal the election.

More broadly, the president and his supporters say, the payments to the women in 2016 are penny ante stuff: Breaking campaign finance law, if that did take place, isn’t like committing murder, said one lawyer for the president. The “biased” Justice Department is just grasping at straws to use something against Trump because it hasn’t been able to locate a “smocking gun,” as Trump wrote this week, that would tie his campaign in with Russia’s active measures in 2016.

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What does the BBC want? For Russia to stop laughing? Look through your own coverage and see where Russia was accused of god knows what without proper evidence. If that happened to you, you’d be laughing too. There’s nothing else left. it’s not as if Russia is allowed to defend itself.

How Putin’s Russia Turned Humour Into A Weapon (BBC)

In the dying days of the Soviet Union, Russians used humour to escape the bleak reality of economic stagnation, food shortages and long queues. Political satire flourished on TV in the form of latex puppets during the 1990s, but it was quickly slapped down when Vladimir Putin came to power. In today’s Russia, where the media is largely controlled by the Kremlin and its allies, there is little room for genuine political humour unless it is used to deflect the blame from the government. Humour and ridicule were a key part of Moscow’s response when the UK said it was “highly likely” that Russia was behind the poisoning of former spy Sergei Skripal and his daughter, Yulia, in Salisbury.

Russian officials and media figures have since tried to turn the English phrase “highly likely” into a mocking catchphrase that implies Russia is being blamed for everything with the flimsiest of evidence. They have enlisted a range of popular figures from English literature, such as Agatha Christie’s Hercule Poirot and Conan Doyle’s Sherlock Holmes, to ridicule British allegations of Russian involvement in the poisoning which they denounce as unfounded. [..] One spoof job advert joked that the GRU was “looking for employees for its cyber-attack department, chemical weapons department and election-meddling unit. There is no need to apply – we will find you ourselves”. Ben Nimmo, an Atlantic Council researcher on Russian disinformation, told the BBC that attempts to create funny memes were part of the strategy as “disinformation for the information age”.

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Late night talk shows are dead. Smothered in the echo chamber.

Late Night Swapped Laughs For Lusting After Mueller (S.us)

If the late night ‘comedy’ of the Trump era has something resembling a ‘message,’ it’s that large segments of the nation’s liberal TV viewership are nervously tracking every Russia development with a passion that cannot be conducive to mental health – or for that matter, political efficacy. One feature of the Mueller saga is the enormous amount of energy that has been expended on venerating and defending him; energies which, at least theoretically, could have been directed toward doing something useful. The trend seems to reflect the total political enervation of this class of people – elite liberal culture-producers and consumers – who are still whipsawing between two-bit schemes to topple Trump, while in the process glossing over (or ignoring, or ridiculing) the structural forces which gave rise to Trump in the first place.

Their expressions of comedic angst actually render them more and more politically impotent. Democrats’ success in the midterms may have given the false assurance that a critical mass of the country actually respects this drivel. To understand how late night comedy got so uniquely tedious, it’s instructive to consider Colbert in particular. He first emerged as a protegée of Jon Stewart, whose Daily Show received such adulation in the early-and-mid 2000s because Stewart appeared to be doing something different and, yes, subversive – castigating the media for its illogical deference to power, a sorely needed antidote in the years of George W. Bush. (Whether this schtick was truly subversive is another question, but it did at least seem that way for a time.)

The popular TV comedians of today, conversely, are the polar opposite of subversive. Nothing about their daily pillorying of Trump challenges conventional wisdom, because unrestrained personal animus for Trump is the defining characteristic of conventional wisdom. When Bush was waging the Iraq War, he did so bolstered by a media consensus that cast him and his cause in an honorable light, and depicted his critics as screeching anti-war freaks. Even before he was inaugurated, Trump has been heaped with a level of scorn so ferocious that it would have made Dick Cheney blush.

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Mar 082017
 


Dorothea Lange A Family Of Mexican Migrants, On The Road In California 1936

 

Wikileaks ‘Vault 7’, Largest Ever Publication Of Confidential CIA Docs (ZH)
Snowden: What The Wikileaks Revelations Show Is “Reckless Beyond Words” (ZH)
WikiLeaks Releases Trove of Alleged CIA Hacking Documents (NYT)
Wikileaks: CIA Capable Of Cyber “False Flag” Attack To Blame Russia (TAM)
CIA Contractor on #VAULT7 Leak: ‘There is Heavy Shit Coming Down’ (RF)
US Trade Deficit Jumps To Five-Year High On Imports (R.)
China Posts Rare Trade Deficit As February Imports Surge in Yuan Terms (R.)
Why Are Europe’s Small Central Banks Stocking Up Foreign Money? (WSJ)
Dispel The Economic Myths That Hold Women Back (Ann Pettifor)
Austerity Is A Feminist Issue (G.)
The Women’s Protest That Sparked The Russian Revolution (G.)
Vacant Homes Are A Global Epidemic (BD)
There’s No Housing Bubble in Australia, Heads of Big Banks Say (BBG)
Australian Lenders Are Handing Out Mortgages Like Confetti (LF)
Greece’s Still-Falling GDP Dispels Creditors’ “Recovery” Myth (Prime)
Tax Weary Greek Employers Pay In Kind As Creditor Demands Rise (BBG)
America’s Forgotten History of Illegal Deportations (Atlantic)

 

 

It’s obvious there is only one story today, which ironically(?!) blows the whole Trump-Russia accusation narrative to bits, even though of course Russia gets the blame for this too in all sorts of corners. But the files are reported to have been ‘out there’ for a while, in the hands of hackers and possible foreign agencies. The CIA spent a huge wad of taxpayer money on this, and then lost it all. It’s early days to say what this will mean for the agency’s abilities, and the nation’s safety, as well as that of American citizens, but it’s not good. Question is: who’s going to investigate how this could have happened? (Snowden and Kim Dotcom could)… And who’s going to repair the damage done? Anyone could be spying on your phone and your TV by now, not just the CIA -as if that wouldn’t be bad enough.

And this is just the first part. Wikileaks has announced more from where this came from.

Wikileaks ‘Vault 7’, Largest Ever Publication Of Confidential CIA Docs (ZH)

A total of 8,761 documents have been published as part of ‘Year Zero’, the first in a series of leaks the whistleblower organization has dubbed ‘Vault 7.’ WikiLeaks said that ‘Year Zero’ revealed details of the CIA’s “global covert hacking program,” including “weaponized exploits” used against company products including “Apple’s iPhone, Google’s Android and Microsoft’s Windows and even Samsung TVs, which are turned into covert microphones.”

WikiLeaks tweeted the leak, which it claims came from a network inside the CIA’s Center for Cyber Intelligence in Langley, Virginia.

Among the more notable disclosures which, if confirmed, “would rock the technology world“, the CIA had managed to bypass encryption on popular phone and messaging services such as Signal, WhatsApp and Telegram. According to the statement from WikiLeaks, government hackers can penetrate Android phones and collect “audio and message traffic before encryption is applied.”

Another profound revelation is that the CIA can engage in “false flag” cyberattacks which portray Russia as the assailant. Discussing the CIA’s Remote Devices Branch’s UMBRAGE group, Wikileaks’ source notes that it “collects and maintains a substantial library of attack techniques ‘stolen’ from malware produced in other states including the Russian Federation.

“With UMBRAGE and related projects the CIA cannot only increase its total number of attack types but also misdirect attribution by leaving behind the “fingerprints” of the groups that the attack techniques were stolen from. UMBRAGE components cover keyloggers, password collection, webcam capture, data destruction, persistence, privilege escalation, stealth, anti-virus (PSP) avoidance and survey techniques.”

As Kim Dotcom summarizes this finding, “CIA uses techniques to make cyber attacks look like they originated from enemy state. It turns DNC/Russia hack allegation by CIA into a JOKE

But perhaps what is most notable is the purported emergence of another Snowden-type whistleblower: the source of the information told WikiLeaks in a statement that they wish to initiate a public debate about the “security, creation, use, proliferation and democratic control of cyberweapons.”  Policy questions that should be debated in public include “whether the CIA’s hacking capabilities exceed its mandated powers and the problem of public oversight of the agency,” WikiLeaks claims the source said.

The FAQ section of the release, shown below, provides further details on the extent of the leak, which was “obtained recently and covers through 2016”. The time period covered in the latest leak is between the years 2013 and 2016, according to the CIA timestamps on the documents themselves. Secondly, WikiLeaks has asserted that it has not mined the entire leak and has only verified it, asking that journalists and activists do the leg work.

Among the various techniques profiled by WikiLeaks is “Weeping Angel”, developed by the CIA’s Embedded Devices Branch (EDB), which infests smart TVs, transforming them into covert microphones. After infestation, Weeping Angel places the target TV in a ‘Fake-Off’ mode, so that the owner falsely believes the TV is off when it is on. In ‘Fake-Off’ mode the TV operates as a bug, recording conversations in the room and sending them over the Internet to a covert CIA server.

As Kim Dotcom chimed in on Twitter, “CIA turns Smart TVs, iPhones, gaming consoles and many other consumer gadgets into open microphones” and added ” CIA turned every Microsoft Windows PC in the world into spyware. Can activate backdoors on demand, including via Windows update”

Dotcom also added that “Obama accused Russia of cyberattacks while his CIA turned all internet enabled consumer electronics in Russia into listening devices. Wow!”

Julian Assange, WikiLeaks editor stated that “There is an extreme proliferation risk in the development of cyber ‘weapons’. Comparisons can be drawn between the uncontrolled proliferation of such ‘weapons’, which results from the inability to contain them combined with their high market value, and the global arms trade. But the significance of “Year Zero” goes well beyond the choice between cyberwar and cyberpeace. The disclosure is also exceptional from a political, legal and forensic perspective.”

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“…first public evidence US [Government] secretly paying to keep US software unsafe”

Snowden: What The Wikileaks Revelations Show Is “Reckless Beyond Words” (ZH)

While it has been superficially covered by much of the press – and one can make the argument that what Julian Assange has revealed is more relevant to the US population, than constant and so far unconfirmed speculation that Trump is a puppet of Putin – the fallout from the Wikileaks’ “Vault 7” release this morning of thousands of documents demonstrating the extent to which the CIA uses backdoors to hack smartphones, computer operating systems, messenger applications and internet-connected televisions, will be profound. As evidence of this, the WSJ cites an intelligence source who said that “the revelations were far more significant than the leaks of Edward Snowden.”

Mr. Snowden’s leaks revealed names of programs, companies that assist the NSA in surveillance and in some cases the targets of American spying. But the recent leak purports to contain highly technical details about how surveillance is carried out. That would make them far more revealing and useful to an adversary, this person said. In one sense, Mr. Snowden provided a briefing book on U.S. surveillance, but the CIA leaks could provide the blueprints. Speaking of Snowden, the former NSA contractor-turned-whistleblower, who now appears to have a “parallel whisteblower” deep inside the “Deep State”, i.e., the source of the Wikileaks data – also had some thoughts on today’s CIA dump.

In a series of tweets, Snowden notes that “what @Wikileaks has here is genuinely a big deal”, and makes the following key observations “If you’re writing about the CIA/@Wikileaks story, here’s the big deal: first public evidence USG secretly paying to keep US software unsafe” and adds that “the CIA reports show the USG developing vulnerabilities in US products, then intentionally keeping the holes open. Reckless beyond words.” He then asks rhetorically “Why is this dangerous?” and explains “Because until closed, any hacker can use the security hole the CIA left open to break into any iPhone in the world.” His conclusion, one which many of the so-called conspiratorial bent would say was well-known long ago: “Evidence mounts showing CIA & FBI knew about catastrophic weaknesses in the most-used smartphones in America, but kept them open – to spy.”

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“..WikiLeaks, which has sometimes been accused of recklessly leaking information that could do harm, said it had redacted names and other identifying information from the collection. It said it was not releasing the computer code for actual, usable weapons “until a consensus emerges on the technical and political nature of the C.I.A.’s program and how such ‘weapons’ should be analyzed, disarmed and published.”

WikiLeaks Releases Trove of Alleged CIA Hacking Documents (NYT)

In what appears to be the largest leak of C.I.A documents in history, WikiLeaks released on Tuesday thousands of pages describing sophisticated software tools and techniques used by the agency to break into smartphones, computers and even Internet-connected televisions. The documents amount to a detailed, highly technical catalog of tools. They include instructions for compromising a wide range of common computer tools for use in spying: the online calling service Skype; Wi-Fi networks; documents in PDF format; and even commercial antivirus programs of the kind used by millions of people to protect their computers. A program called Wrecking Crew explains how to crash a targeted computer, and another tells how to steal passwords using the autocomplete function on Internet Explorer. Other programs were called CrunchyLimeSkies, ElderPiggy, AngerQuake and McNugget.

The document dump was the latest coup for the antisecrecy organization and a serious blow to the C.I.A., which uses its hacking abilities to carry out espionage against foreign targets. The initial release, which WikiLeaks said was only the first installment in a larger collection of secret C.I.A. material, included 7,818 web pages with 943 attachments, many of them partly redacted by WikiLeaks editors to avoid disclosing the actual code for cyberweapons. The entire archive of C.I.A. material consists of several hundred million lines of computer code, the group claimed. In one revelation that may especially trouble the tech world if confirmed, WikiLeaks said that the C.I.A. and allied intelligence services have managed to compromise both Apple and Android smartphones, allowing their officers to bypass the encryption on popular services such as Signal, WhatsApp and Telegram. According to WikiLeaks, government hackers can penetrate smartphones and collect “audio and message traffic before encryption is applied.”

Unlike the National Security Agency documents Edward J. Snowden gave to journalists in 2013, they do not include examples of how the tools have been used against actual foreign targets. That could limit the damage of the leak to national security. But the breach was highly embarrassing for an agency that depends on secrecy. Robert M. Chesney, a specialist in national security law at the University of Texas at Austin, likened the C.I.A. trove to National Security Agency hacking tools disclosed last year by a group calling itself the Shadow Brokers. “If this is true, it says that N.S.A. isn’t the only one with an advanced, persistent problem with operational security for these tools,” Mr. Chesney said. “We’re getting bit time and again.”

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No ‘evidence’ (and remember none was provided to date) of Russian spying is the least bit credible anymore after today.

Wikileaks: CIA Capable Of Cyber “False Flag” Attack To Blame Russia (TAM)

According to a Wikileaks press release, the 8,761 newly published files came from the CIA’s Center for Cyber Intelligence (CCI) in Langley, Virginia. The release says that the UMBRAGE group, a subdivision of the center’s Remote Development Branch (RDB), has been collecting and maintaining a “substantial library of attack techniques ‘stolen’ from malware produced in other states, including the Russian Federation.” As Wikileaks notes, the UMBRAGE group and its related projects allow the CIA to misdirect the attribution of cyber attacks by “leaving behind the ‘fingerprints’ of the very groups that the attack techniques were stolen from.”

In other words, the CIA’s sophisticated hacking tools all have a “signature” marking them as originating from the agency. In order to avoid arousing suspicion as to the true extent of its covert cyber operations, the CIA has employed UMBRAGE’s techniques in order to create signatures that allow multiple attacks to be attributed to various entities – instead of the real point of origin at the CIA – while also increasing its total number of attack types. Other parts of the release similarly focus on avoiding the attribution of cyberattacks or malware infestations to the CIA during forensic reviews of such attacks. In a document titled “Development Tradecraft DOs and DON’Ts,” hackers and code writers are warned “DO NOT leave data in a binary file that demonstrates CIA, U.S. [government] or its witting partner companies’ involvement in the creation or use of the binary/tool.” It then states that “attribution of binary/tool/etc. by an adversary can cause irreversible impacts to past, present and future U.S. [government] operations and equities.”

While a major motivating factor in the CIA’s use of UMBRAGE is to cover it tracks, events over the past few months suggest that UMBRAGE may have been used for other, more nefarious purposes. After the outcome of the 2016 U.S. presidential election shocked many within the U.S. political establishment and corporate-owned media, the CIA emerged claiming that Russia mounted a “covert intelligence operation” to help Donald Trump edge out his rival Hillary Clinton.[..] the U.S. intelligence community’s assertions that Russia used cyber-attacks to interfere with the election overshadowed reports that the U.S. government had actually been responsible for several hacking attempts that targeted state election systems.

For instance, the state of Georgia reported numerous hacking attempts on its election agencies’ networks, nearly all of which were traced back to the U.S. Department of Homeland Security. Now that the CIA has been shown to not only have the capability but also the express intention of replacing the “fingerprint” of cyber-attacks it conducts with those of another state actor, the CIA’s alleged evidence that Russia hacked the U.S. election – or anything else for that matter – is immediately suspect. There is no longer any way to determine if the CIA’s proof of Russian hacks on U.S. infrastructure is legitimate, as it could very well be a “false flag” attack.

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“..we come to find out the same people who told us the Russians were our enemy, revealing corruption and depravity on a monumental scale via the Podesta emails, they were, in fact, the ones spying on us all along – both lying and mocking us like Lords in a fiefdom.”

CIA Contractor on #VAULT7 Leak: ‘There is Heavy Shit Coming Down’ (RF)

Everything that Wikileaks has revealed over the past year has hurt both the integrity and honor of the United States. The question you have to grapple with, is it well deserved? After all, living inside of a vast and powerful empire has its benefits. As the empire expands, so does the wealth of its citizens. But it hasn’t worked out that way, has it? The CIA deep staters have turned their guns on the people they serve – using third world banana republic tactics to silence opposition, take down regimes not beholden to their world view, using advanced technology to both spy and monitor on American citizens – infringing on our civil rights like nothing we’ve ever seen before. The reason for the populist uprising and the lack of equanimity amongst those traditionally supportive of the CIA lies in the improper distribution of the spoils of war. There aren’t any.

All the average American has received from $10 trillion in Obama inspired deficit spending is American casualties of war, jobs lost to cheaper labor overseas, expensive oil prices, expensive healthcare, and run away education costs – along with a sundry of social disturbances that have people fed up. While the elite flaunt hedonistic lifestyles, eschewing basic decency for the perverse, normies get more of the same old bullshit. After electing a true agent of change in Donald Trump, the people are laughed at and impugned by the elitist media. Their President is set upon by ‘permanent government’ officials in the intelligence agencies – whose only goal is to derail and destroy his term before it even begins.

Then we come to find out the same people who told us the Russians were our enemy, revealing corruption and depravity on a monumental scale via the Podesta emails, they were, in fact, the ones spying on us all along – both lying and mocking us like Lords in a fiefdom. Here’s Fox News reporting on the latest scandal to hit the wires, #VAULT7 Fox New sources inside the CIA said the agency was running around like headless chickens, saying ‘there is heavy shit coming down.’

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US exports are plunging. 10.7% to Germany, 13.4% to China.

US Trade Deficit Jumps To Five-Year High On Imports (R.)

The U.S. trade deficit jumped to a near five-year high in January as cell phones and rising oil prices helped to push up the import bill, suggesting trade would again weigh on economic growth in the first quarter. The Commerce Department said on Tuesday the trade gap increased 9.6% to $48.5 billion, the highest level since March 2012. The deficit was in line with economists forecasts. December’s trade shortfall was unrevised at $44.3 billion. When adjusted for inflation, the trade deficit rose to $65.3 billion from $62.0 billion in December. Both the inflation-adjusted exports and imports were the highest on record in January.

The wider trade gap added to weak data such as housing starts, consumer and construction spending in suggesting the economy struggled to regain momentum early in the first quarter after growth slowed to a 1.9% annualized rate in the final three months of 2016. The economy grew at a 3.5% pace in the third quarter. Trade cut 1.7 percentage points from GDP in the fourth quarter. The Atlanta Fed is forecasting GDP rising at a 1.8% rate in the first quarter. The dollar was trading marginally higher, while prices for U.S. government bonds were little changed. U.S. stock index futures were slightly lower. The Trump administration is eyeing trade as it seeks 4% annual GDP growth. President Donald Trump has vowed sweeping changes to U.S. trade policy, starting with pulling out of the 12-nation TPP.

[..] The bulk of the increase in the trade-weighted value of the greenback occurred in the final months of 2016 and will probably take a while to reflect in the trade data. Exports to Germany tumbled 10.7%. A Trump trade adviser has accused Germany of unfairly benefiting from a weak euro. Shipments of goods to China, also singled out by the Trump administration, dropped 13.4%. The politically sensitive U.S.-China trade deficit increased 12.8% to $31.3 billion in January, while the trade gap with Germany fell 8.0% to $4.9 billion. The United States also saw its trade deficit with Mexico shrink 10.1% to its lowest level since July 2015.

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We need to see: 1) dollar terms and 2) Lunar New Year distortions.

China Posts Rare Trade Deficit As February Imports Surge in Yuan Terms (R.)

China unexpectedly posted a rare trade deficit in February as imports surged far more than expected to feed a months-long construction boom, driven by commodities from iron ore and copper to crude oil and coal. Imports in yuan-denominated terms surged 44.7 percent from a year earlier, while exports rose 4.2 percent, official data showed on Wednesday. That left the country with a trade deficit of 60.63 billion yuan ($8.79 billion) for the month, the General Administration of Customs said. Customs has not yet published dollar-denominated trade figures, on which most economists and investors base their forecasts and analysis. Apart from currency fluctuations, higher commodity prices and the timing of the long Lunar New year holidays early in the year also may have distorted the data.

Most of China’s commodity imports grew strongly in volume terms from a year earlier, but dipped from January. Still, economists say the upbeat readings reinforced a growing view that economic activity in China and globally picked up in the first two months of the year. That could give China’s policymakers more confidence to press ahead with oft-delayed and painful structural reforms such as tackling a mountain of debt. Containing the risks from years of debt-fueled stimulus and heavy spending has been a major focus at the annual meeting of China’s parliament which began on Sunday.

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They know something?!

Why Are Europe’s Small Central Banks Stocking Up Foreign Money? (WSJ)

Europe’s smaller central banks are loading up on foreign currencies at rates usually associated with periods of intense global stress, highlighting the fragile underpinnings of the global economic recovery despite the recent upbeat mood in financial markets. Switzerland’s holdings of foreign assets jumped last month at their fastest pace in over two years as its central bank fought the strong franc, which weakens exports and inflation. The Czech central bank intervened in January on a massive scale to maintain its currency target against the euro. Denmark has also stepped up its foreign-currency purchases to keep the krone from strengthening too much. These central banks are showing crisis-like behavior to protect their currencies even in the absence of obvious trouble. This exposes them to losses if their currencies fail to weaken on their own.

It also raises doubts as to how long they can keep this up in an era when economic and political uncertainties appear to be a lasting feature of the world economy. “There is a little bit of survivor behavior,” said Peter Rosenstreich, head of market strategy at Swissquote Bank. “They’ve been protecting their currencies so long and it’s hard to give up that defensive position.” The Swiss National Bank said Tuesday its foreign exchange reserves swelled nearly 25 billion Swiss francs ($24.63 billion) last month to 668 billion francs, the biggest rise since December 2014, the month before the Swiss abandoned a cap on the franc’s value. The pile of foreign reserves is greater than Switzerland’s entire gross domestic product. “It’s quite bizarre. You’d think at some time you’d run out of surprises,” said Stefan Gerlach, chief economist at BSI Bank in Zurich and a former deputy governor at Ireland’s central bank.

[..] Central banks accumulate foreign reserves when they purchase assets denominated in other currencies, using freshly created money. They do this to weaken their currencies, protecting exports and giving a boost to inflation. Foreign reserves can waver slightly due to changes in currency values, but big increases like Switzerland’s signal aggressive intervention. This tool has gained traction in recent years as official rates have turned negative in Denmark and Switzerland and are near zero in the Czech Republic.

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A few good articles for International Women’s Day. Pettifor’s insistence that households are not like governments is important.

Dispel The Economic Myths That Hold Women Back (Ann Pettifor)

There are two economic myths that fail the interests of women. The first is the fallacy that government budgets conform to “the household analogy”: that, as with family budgets, a state’s outgoings cannot exceed its income. The second is that “there is no money” for the services women use and need. On the first, the public are told that cuts in spending and in some benefits, combined with rises in income from taxes will – just as with a household – balance the budget. Even though a single household’s budget is a) minuscule compared to that of a government; b) does not, like the government’s, impact on the wider economy; c) does not benefit from tax revenues (now, or in the foreseeable future); and d) is not backed by a powerful central bank. Despite all these obvious differences, government budgets are deemed analogous (by economists and politicians) to a household budget.

To understand why the government/household analogy is false it is important to understand that the balance of the government budget, unlike that of a household, is entirely a function of the wider economy. If the economy slumps (as in 2008-9) and the private sector weakens, then like a see-saw the public sector deficit, and then the debt, rises. When private economic activity revives (thanks to increased investment, employment, sales etc) tax revenues rise, unemployment benefits fall, and the government deficit and debt follow the same downward trajectory. So, to balance the government’s budget, efforts must be made to revive Britain’s economy, including the indebted private sector.

Because government spending (unlike a household’s spending) has a big impact on the economy, governments can use loan-financed investment to expand tax-generating employment – both public (for example, nurses and teachers) and private sector employment (construction workers). Both nurses and construction workers will return a large part of their incomes into the economy through spending, benefitting the private sector. Thanks to the multiplier effect, that spending will generate VAT and corporation tax revenues – for repaying government debt. George Osborne believed that government spending cuts would be offset by a rise in private sector confidence, inspired by a government “getting its house in order”. But that did not happen.

As many of us predicted, government spending cuts contracted the economy further. Economic activity (investment, sales, employment) was weaker than expected. Even when employment revived, lower wages and insecure, part-time work meant that income and corporate taxes were lower than expected. So government borrowing did not fall. As a result, public debt as a share of GDP was higher than expected. In the meantime, massive harm had been done to public sector services and those employed in the sector – while the economy endured the slowest post-crisis recovery in history. And it was women who largely paid the price.

One woman can be said to have given the phrase “there is no money” much credibility. In her 1983 speech to the Conservative party conference, Margaret Thatcher declared that: “The state has no source of money, other than the money people earn themselves. If the state wishes to spend more it can only do so by borrowing your savings, or by taxing you more … There is no such thing as public money. There is only taxpayers’ money.” Today this framing of the debate is at odds with reality. After the financial crisis, the Bank of England injected £1,000bn into the private finance sector to prevent systemic economic failure. And after the shock of the Brexit vote, the Bank unveiled the “Term Funding Scheme” as part of a £170bn “stimulus package” aimed at the private finance sector. The money was “public money” offered at a historically low interest rate – to bankers. It was not raised by cutting spending, and it was not raised from “your taxes”, even while its issue was backed by Britain’s taxpayers.

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Good points.

Austerity Is A Feminist Issue (G.)

Women are massively more affected by budget cuts than men, says the Labour peer. They are more likely to be single parents, earn less and work part time than their male counterparts. She argues the government must replace ‘gender-neutral’ budgeting with economic policies that put women first.

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100 years ago.

The Women’s Protest That Sparked The Russian Revolution (G.)

The first day of the Russian revolution – 8 March (23 February in the old Russian calendar) – was International Women’s Day, an important day in the socialist calendar. By midday of that day in 1917 there were tens of thousands of mainly women congregating on the Nevsky Propsekt, the principal avenue in the centre of the Russian capital, Petrograd, and banners started to appear. The slogans on the banners were patriotic but also made forceful demands for change: “Feed the children of the defenders of the motherland”, read one; another said: “Supplement the ration of soldiers’ families, defenders of freedom and the people’s peace”. The crowds of demonstrators were varied. The city’s governor, AP Balk, said they consisted of “ladies from society, lots more peasant women, student girls and, compared with earlier demonstrations, not many workers”. The revolution was begun by women, not male workers.

In the afternoon the mood began to change as female textile workers from the Vyborg side of the city came out on strike in protest against shortages of bread. Joined by their menfolk, they swelled the crowds on the Nevsky, where there were calls for “Bread!” and “Down with the tsar!” By the end of the afternoon, 100,000 workers had come out on strike, and there were clashes with police as the workers tried to cross the Liteiny bridge, connecting the Vyborg side with the city centre. Most were dispersed by the police but several thousand crossed the ice-packed river Neva (a risky thing to do at -5C) and some, angered by the fighting, began to loot the shops on their way to the Nevsky. Balk’s Cossacks struggled to clear the crowds on the Nevsky. They would ride up the demonstrators, only to stop short and retreat. Later it emerged that they were mostly young reservists who had no experience of dealing with crowds.

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How to kill a city part 829.

Vacant Homes Are A Global Epidemic (BD)

Runaway real estate speculation has been filling global capitals with vacant homes, creating artificial shortages in the world’s most sought after cities. The “shortage” has made local home owners wealthy overnight, but it comes at the cost of turning lively cities into empty shells. The city of Paris has decided it’s had enough, and implemented a tax in 2015. They didn’t quite get the results they wanted, so they’re now tripling the tax to 60%. Paris has been trying to deal with vacant property owners for some time. Despite warnings that the city will have to take action, the number of vacant homes is growing. There’s now 107,000 vacant homes, representing 7.5% of all residential dwellings in the city according to France’s INSEE. Deputy Mayor Ian Brossat told Le Monde that 40,000 of those vacant homes aren’t even connected to the electrical grid.

Local developers have argued that more new construction is the solution. However Brossat argues “In a city as dense as Paris, where it is very difficult to build, controlling the occupancy of housing is strategic.” It appears the city believes they have 107,000 reasons more construction is not the solution. Paris implemented a tax recently, but it didn’t quite produce the desired outcome. Starting in 2015 the city elected to tax vacant homes the equivalent of 20% of the fair market value of rent. On January 30 this year, they decided to triple that amount to 60%. The idea isn’t to punish those fortunate enough to own a second (or twelfth) home. They’re trying to discourage speculation and promote a healthy rental market.

Paris’ 107,000 empty homes might seem like a lot, but it’s becoming strangely normal around the world. New York City had a whopping 318,831 vacant units in 2015. It’s a hot topic in Sydney, where 118,499 vacant units were counted in 2013. Heck, London considers it a critical issue, and they “only” have 22,000 empty homes. There’s a massive numbers of vacant homes across the globe, but only Paris has decided to take aggressive action to tackle it. Growing populations have barely put a dent in the vacant homes in global real estate capitals. The amount of speculation has been scaling with demand, which is a curious paradox. This signifies an issue that’s more complex than just a basic supply and demand problem.

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And you can’t call it perjury. But look at the article below this one.

There’s No Housing Bubble in Australia, Heads of Big Banks Say (BBG)

Soaring home prices in Australia’s biggest cities don’t necessarily mean the country is in the grip of a housing bubble, according to the heads of the nation’s biggest banks. Testifying before a parliamentary committee, the chief executives of National Australia, Westpac and Commonwealth Bank of Australia all said that while they are worried about elements of the housing market, prices aren’t over-inflated. “I would draw the distinction between a speculative bubble in prices and prices beyond what fundamentals would justify,” Westpac’s Brian Hartzer told the committee in Canberra Wednesday. A bubble isn’t occurring in Sydney or Melbourne, where house prices have risen the most, he said.

“There are increasing risks, but I still believe the answer is no,” National Australia Bank’s Andrew Thorburn said when asked if houses in Sydney and Melbourne are overpriced. Commonwealth Bank, the nation’s largest mortgage lender, is “lending at levels we are comfortable with” across Australia, CEO Ian Narev told the committee when he testified Tuesday. The bank chiefs were appearing in front of the committee, which was set up by the government to ward off calls for a more far-reaching inquiry into the financial industry, for the second time within six months. The banks have been under pressure from opposition parties after a series of scandals in their insurance and wealth divisions and concern they failed to pass on the full benefits of central bank interest-rate cuts to borrowers.

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“Boosting leveraged demand to make housing affordable makes no sense.”

Australian Lenders Are Handing Out Mortgages Like Confetti (LF)

In the thrall of irrational exuberance, Australia is experiencing a debt-financed housing bubble. In our two major cities of Sydney and Melbourne, the housing markets are out of control due to the rapid acceleration of debt enabled by lenders issuing remarkable amounts of mortgages. Household debt to income ratios for the states of NSW and VIC suggest this to be the case. Australian lenders are handing out mortgages like confetti – why? It demonstrates banks and non-bank lenders are quite willing to issue risky mortgages to applicants who will not have the long-term financial capability to repay. Lenders are indeed taking on these excessive risks. Throwing everything but the kitchen sink is today the common approach governments take to ensure housing prices continually rise given their fear of the political and economic damage caused by falling prices.

Governments engaged in co-buying and co-owning housing with FHBs stimulates debt accumulation and hence prices. The VIC government, for instance, is attempting to provide a large gift to current residential land owners and lenders at the cost of FHBs acquiring mortgages they cannot afford to service over the long-run. This is done through the proposed shared equity model whereby the government acquires 25% of the home price. To make matters worse, the VIC government is also cutting stamp duty for FHBs and doubling the FHOB (for new properties in regional areas); both in theory have the effect of boosting housing prices. The VIC government cannot allow housing prices in Melbourne and the rest of Victoria decline significantly because it will suffer the same adverse impact that Dublin and Ireland experienced last decade.

The problems are the same and the end result will be the same. Unfortunately, just like the federal government, the VIC government is stuck. Implementing policies on the demand and supply sides to reduce land prices will cause a great deal of pain to all stakeholders: governments, lenders, homeowners, investors, including employees – many may lose their jobs if debt growth craters and removes a considerable portion of demand from the economy. Government has dug itself into a hole but instead of assessing a way out, it simply continues to dig, hoping to kick the can down the road long enough for the next party in power to deal with the problems. Both the LNP and ALP at the federal and state levels have refused to deal with the issues at hand, and prefer to enslave a generation of Aussies to the most profitable and high-risk banking system in the western world.

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As I’ve been saying forever. Recovery is unpossible in Greece.

Greece’s Still-Falling GDP Dispels Creditors’ “Recovery” Myth (Prime)

The latest GDP figures for Greece, relating to Q4 of 2016, are disastrous. For Greece first and foremost, but also for the credibility of the EU and IMF’s failed harsh austerity (but on the EU side no-debt-cancellation) policy. Far from evidencing the long-promised recovery, they show a new decline in GDP – both on the previous quarter (after seasonal adjustment) and year on year. In fact, the economy has been broadly stagnant at a low level since 2013. In constant volume terms, GDP fell by over 27% from (peak) Q2 2007 to Q4 2013, and in Q4 2016 it was 0.3% smaller than in Q4 2013. In Q4 it was only marginally higher than the post-crisis record low to date, Q3 2015. This chart from Elstat (the Greek Statistical Office) shows the development of GDP over the last decade:

What is more extraordinary is that current price (i.e. nominal) GDP has fallen even further than real GDP over the decade – by 28.5% From 2008 to 2016, GDP fell quarter-on-quarter in no fewer than 27 out of 36 quarters, of which two in 2016. [..] there has been some modest improvement, with unemployment in November 2016 about 66,000 lower than a year before, and employment up by about 50,000. But employment is still 200,000 below its 2011 level. The unemployment rate remains a disastrous 23%, which reminds one of chronic European levels in the 1920s and 1930s:

The Financial Times’ Mehreen Khan yesterday (6 March) described the current state of negotiations towards the absurd requirement of a contractionary 3.5% of GDP budget surplus (i.e. after interest): “Progress on the country’s €86bn rescue deal has stuttered this year following a standoff between the EU and IMF over the level of austerity, reforms and debt relief baked into Greece’s three-year programme. Bailout monitors however returned to Athens last week to ensure the left-wing Greek government was making steps towards legislating for around €2bn in tax and pension measures that will help the country meet a surplus target of 3.5 per cent of GDP from 2018. Approval of the second review would unlock around €6bn in rescue cash for the economy.”

And ah yes, as Jeroen Dijsselbloem, Chair of the Eurogroup finance ministers, put it on 20th February, in an interview with CNBC (h/t Professor Helen Thompson ): “…anyone who wants to talk about crisis can talk to someone else because the Greek economy is gradually recovering and what we need to do is to strengthen that and give that more opportunity and that is what I’m trying to do.” Alas, Mr Dijsselbloem comes from the Dutch Labour Party, not the conservatives, and here symbolizes all that is so profoundly wrong with the Eurozone’s economic policy and ideology. It’s high time he looked again at that table of unemployment in the 1930s – and the terrible ordeal imposed on the Dutch working class.

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The creditors force Greek companies into contortionist tricks just to survive. There is such a thing as too much tax.

Tax Weary Greek Employers Pay In Kind As Creditor Demands Rise (BBG)

When Maria’s employer, a large communications company in Athens, gave her additional tasks at one of its new units, it told her she wouldn’t be paid for the work in euros. “I was informed that this extra payment of 150 euros per month would be in coupons that I can use in supermarkets,” said the 45-year-old, declining to provide her last name for fear of losing her job. Payments in kind are among practices companies are using in Greece as they seek to cap payroll costs, undermining efforts to balance the books of the country’s cash-strapped social security system. As creditors push the government to boost its budget surplus, companies avoiding payroll charges and effectively expanding the shadow economy are making the task harder. By some estimates, the so-called black market already accounts for as much as a quarter of Greece’s economy.

“Such practices help companies to avoid social contributions, but the burden for the economy is huge,” said Panos Tsakloglou, a professor at the Athens University of Economics and Business. “Less contributions for pensions means more budget transfers to them which then leads to more austerity measures to meet fiscal targets, measures that will probably hit pensioners.” Greek officials have been meeting in Athens with representatives of the euro area and IMF to set out the policies the country must undertake to unlock more bailout loans. The government foresees an accord in March or early April, but the scale of pending issues raises concerns they may be politically hard to sell at home. Greece has agreed to target for a budget surplus before interest payments equal to 3.5% of GDP for 2018, which could mean more belt-tightening.

Prime Minister Alexis Tsipras’s government finds itself between a rock and a hard place as it tries to appease creditors while avoiding mass protests. After an anemic recovery, the Greek economy shrank again in the fourth quarter, raising the specter of growing tensions at home even as European creditors and the IMF push for more austerity. With an economy that has shrunk by more than a quarter in the last seven years, Greece has an unemployment rate of 23%, close to a historic high. Creditors, meanwhile, are demanding greater labor-market flexibility that would make it easier for companies to hire and fire people. They want the threshold of collective dismissals to be doubled to 10% and demand that Athens not revoke any of the measures legislated during the crisis.

[..] For overtaxed Greek companies, dodging social security contributions through payments in kind has become a way to make ends meet. According to the latest available data from the Organisation for Economic Co-operation and Development, the average single worker in Greece faced a tax wedge of 39.3% compared with an average of 35.9% among developed economies. About half of the burden falls upon employers. “We do not have the exact picture,” said Nasos Iliopoulos, an official in Greece’s Labor Ministry. “But it is clear that it is not legal to replace payments with coupons. It is only permitted to give coupons as an extra bonus. Companies are seeking to gain from lower social contributions and also from not paying for extra working hours.”

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There’s nothing new.

America’s Forgotten History of Illegal Deportations (Atlantic)

It was a time of economic struggle, racial resentment and increasing xenophobia. Installed in the White House was a president who had never before held elected office. A moderately successful businessman, he promised American jobs for Americans—and made good on that promise by slashing immigration by nearly 90 percent. He wore his hair parted down the middle, rather than elaborately piled on top, and his name was Herbert Hoover, not Donald Trump. But in the late 1920s and early 1930s, under the president’s watch, a wave of illegal and unconstitutional raids and deportations would alter the lives of as many as 1.8 million men, women and children—a threat that would seem to loom just as large in 2017 as it did back in 1929.

What became colloquially known as the “Mexican repatriation” efforts of 1929 to 1936 are a shameful and profoundly illustrative chapter in American history, yet they remain largely unknown—despite their broad and devastating impact. So much so that today, a different president is edging towards similar solutions, with none of the hesitation or concern that basic consciousness would seem to require. [..] Back in Hoover’s era, as America hung on the precipice of economic calamity—the Great Depression—the president was under enormous pressure to offer a solution for increasing unemployment, and to devise an emergency plan for the strained social safety net. Though he understood the pressing need to aid a crashing economy, Hoover resisted federal intervention, instead preferring a patchwork of piecemeal solutions, including the targeting of outsiders.

According to former California State Senator Joseph Dunn, who in 2004 began an investigation into the Hoover-era deportations, “the Republicans decided the way they were going to create jobs was by getting rid of anyone with a Mexican-sounding name.” “Getting rid of” America’s Mexican population was a random, brutal effort. “For participating cities and counties, they would go through public employee rolls and look for Mexican-sounding names and then go and arrest and deport those people,” said Dunn. “And then there was a job opening!” “We weren’t rounding up people who were Canadian,” he added. “It was an absolutely racially-motivated program to create jobs by getting rid of people.”

[..] The so-called repatriation effort was, in large part, a misnomer, given the fact that as many as sixty percent of those sent to “home” Mexico were U.S. citizens: American-born children of Mexican-descent who had never before traveled south of the border. (Dunn noted, “I don’t know how you can repatriate someone to a country they’ve not been born or raised in.”) “Individuals who left at 5, 6 and 7 years old found themselves in Mexico dealing with process of socialization, of learning the language, but they maintained an American identity,” said Balderrama. “And still had the dream to come back to ‘my country.’”

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Oct 202016
 
 October 20, 2016  Posted by at 9:48 am Finance Tagged with: , , , , , , , , , ,  2 Responses »


Thomas Eakins Walt Whitman 1891

Fed Risks Repeating Lehman Blunder As US Recession Storm Gathers (AEP)
ECB Urges EU To Curb Virtual Money On Fear Of Losing Control (R.)
Saudi Arabia’s Bond: a Defining Trade for 2016 (WSJ)
How do Clinton and Trump’s Tax Plans Compare? (TF)
Trump is a Pink Elephant (Scott Adams)
California Launches Criminal Probe Into Wells Fargo Account Scandal (R.)
Who’s Powering the War on Cash? (DQ)
The Cult Of The Expert – And How It Collapsed (G.)
Theresa May To Tell EU Leaders ‘There Will Be No Second Referendum'(G.)
Australia Housing Boom Peak Has Passed – Morgan Stanley (BBG)
Did the White House Declare War on Russia? (Stephen F. Cohen)
What Obama’s Record Deportations Look Like (I’Cept)
Use Of Strongest Antibiotics Rises To Record Levels On European Farms (G.)

 

 

“The Bank for International Settlements estimates that 60pc of the world economy is locked into the US currency system, and that debts denominated in dollars outside US jurisdiction have ballooned to $9.8 trillion.”

Fed Risks Repeating Lehman Blunder As US Recession Storm Gathers (AEP)

The risk of a US recession next year is rising fast. The Federal Reserve has no margin for error. Liquidity is suddenly drying up. Early warning indicators from US ‘flow of funds’ data point to an incipent squeeze, the long-feared capitulation after five successive quarters of declining corporate profits. Yet the Fed is methodically draining money through ‘reverse repos’ regardless. It has set the course for a rise in interest rates in December and seems to be on automatic pilot. “We are seeing a serious deterioration on a monthly basis,” said Michael Howell from CrossBorder Capital, specialists in global liquidity. The signals lead the economic cycle by six to nine months. “We think the US is heading for recession by the Spring of 2017. It is absolutely bonkers for the Fed to even think about raising rates right now,” he said.

The growth rate of nominal GDP – a pure measure of the economy – has been in an unbroken fall since the start of the year, falling from 4.2pc to 2.5pc. It is close to stall speed, flirting with levels that have invariably led to recessions in the post-War era. “It is a little scary. When nominal GDP slows like that, you can be sure that financial stress will follow. Monetary policy is too tight and the slightest shock will tip the US into recession,” said Lars Christensen, from Markets and Money Advisory. If allowed to happen, it will be a deeply frightening experience, rocking the global system to its foundations. The Bank for International Settlements estimates that 60pc of the world economy is locked into the US currency system, and that debts denominated in dollars outside US jurisdiction have ballooned to $9.8 trillion.

The world has never before been so leveraged to dollar borrowing costs. BIS data show that debt ratios in both rich countries and emerging markets are roughly 35 percentage points of GDP higher than they were at the onset of the Lehman crisis. This time China cannot come to the rescue. Beijing has already pushed credit beyond safe limits to almost $30 trillion. Fitch Ratings suspects that bad loans in the Chinese banking system are ten times the official claim. The current arguments over Brexit would seem irrelevant in such circumstances, both because the City would be drawn into the flames and because the eurozone would face its own a shattering ordeal. Even a hint of coming trauma would detonate a crisis in Italy.

[..] The velocity of M1 money in the US has continued to slow, hitting a 40-year low of 5.75 over the summer, and markets are only just awakening to the unsettling thought that China’s latest boomlet has already topped out. Beijing is having to hit the brakes again. Crossborder said new rules for money market funds that came into force this month have complicated the picture, causing the stock of US commercial paper to shrivel by $200bn. Yet there are ways to filter out some of these effects. The plain fact is that 3-month lending rates in the off-shore ‘eurodollar’ markets in London have tripled since July to 0.93pc, sharply tightening conditions for global finance. Investors may have been too complacent in discounting these gyrations as part of a regulatory hiccup when something more sinister is emerging.

[..] Albert Edwards from Societe Generale says gross domestic income (GDI) was the most accurate gauge of the economy as the pre-Lehman crisis unfolded, and this measure has been flat for the last two quarters.”The pronounced weakness of GDI relative to GDP might be an ominous omen, for it may well be indicating that a US recession is already underway – just as it was in 2007,” he said.

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A central bank that tells politicians what legislation it desires can never again claim independence anymore.

ECB Urges EU To Curb Virtual Money On Fear Of Losing Control (R.)

The European Central Bank wants EU lawmakers to tighten proposed new rules on digital currencies such as bitcoin, fearing they might one day weaken its own control over money supply in the euro zone. The European Commission’s draft rules, aimed at fighting terrorism, require currency exchange platforms to increase checks on the identities of people exchanging virtual currencies for real ones and report suspicious transactions. In a legal opinion published on Tuesday, the ECB said EU institutions should not promote the use of digital currencies and should make clear they lack the legal status of currency or money.

“The reliance of economic actors on virtual currency units, if substantially increased in the future, could in principle affect the central banks’ control over the supply of money … although under current practice this risk is limited,” the ECB said in the opinion for the European Parliament and Council. “Thus (EU legislative bodies) should not seek in this particular context to promote a wider use of virtual currencies.” The ECB argues the Commission’s proposal does not go far enough as it does not cover the use of virtual money to buy goods and services. “Such transactions would not be covered by any of the control measures provided for in the proposal and could provide a means of financing illegal activities.”

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Dissaving.

Saudi Arabia’s Bond: a Defining Trade for 2016 (WSJ)

Want a single instrument that wraps together nearly every big political, financial and economic theme in today’s world? Saudi Arabia’s mammoth $17.5 billion bond issue, marking its debut in international markets, is it. The size of the deal is impressive but actually the least important thing about it. Big bond deals tend to build a momentum of their own. But it does speak to the search for yield. The $6.5 billion 30-year portion of Saudi Arabia’s bond is set to pay 2.1 percentage points more in yield than a comparable U.S. Treasury, or around 4.6%. That is a sizeable pickup in a world where developed-market bond yields are on the floor or in negative territory. That Saudi Arabia is doing the deal at all is a more telling factor: The oil bounty that has propelled the economy has run dry.

The 18-month-long rout in oil prices that started in 2014 sent the country hurtling from a budget surplus to a deficit in 2015 of 15.9% of GDP that is set to narrow only to 13% in 2016, according to the IMFd. In 2013, government debt stood at just 2.2% of GDP, according to Moody’s. By 2017, it is forecast to be 22.9%. The level isn’t a source of concern, but the swift change shows the country’s stark reversal of fortunes. In the near term, buyers of the bonds are betting largely on oil. Swings in the price are likely to have a direct impact on the perception of Saudi Arabia as a credit. The recovery in oil prices, which stand close to their high of the year, has eased concerns about financial stability and helps explain some of the enthusiasm for the deal. But further ahead, this is a bet on the ability and willingness of the country to transform itself while maintaining social and political stability.

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Explanations at the link. h/t Mish

How do Clinton and Trump’s Tax Plans Compare? (TF)

Both Hillary Clinton and Donald Trump have released tax plans during the campaign. The Tax Foundation has analyzed both the plans using our Taxes and Growth (TAG) model to estimate how their plans would impact taxpayers, federal revenues, and economic growth. Below, is a chart that contains all you need to know about the candidates’ plans.

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“..if you are afraid that Donald Trump is a racist/sexist clown with a dangerous temperament, you have been brainwashed by the best group of brainwashers in the business right now..”

Trump is a Pink Elephant (Scott Adams)

Here’s a little thought experiment for you: If a friend said he could see a pink elephant in the room, standing right in front of you, but you don’t see it, which one of you is hallucinating? Answer: The one who sees the pink elephant is hallucinating. Let’s try another one. If a friend tells you that you were both abducted by aliens last night but for some reason only he remembers it, which one of you hallucinated? Answer: The one who saw the aliens is hallucinating. Now let’s add some participants and try another one. If a crowd of people are pointing to a stain on the wall, and telling you it is talking to them, with a message from God, and you don’t see anything but a stain, who is hallucinating? Is it the majority who see the stain talking or the one person who does not? Answer: The people who see the stain talking are experiencing a group hallucination, which is more common than you think.

In nearly every scenario you can imagine, the person experiencing an unlikely addition to their reality is the one hallucinating. If all observers see the same addition to their reality, it might be real. But if even one participant can’t see the phenomenon – no matter how many can – it is almost certainly not real. Here I pause to remind new readers of this blog that I’m a trained hypnotist and a student of persuasion in all its forms. I’ve spent a lifetime trying to learn the tricks for discerning illusion from reality. And I’m here to tell you that if you are afraid that Donald Trump is a racist/sexist clown with a dangerous temperament, you have been brainwashed by the best group of brainwashers in the business right now: Team Clinton. They have cognitive psychologists such as Godzilla advising them. Allegedly.

I remind you that intelligence is not a defense against persuasion. No matter how smart you are, good persuaders can still make you see a pink elephant in a room where there is none (figuratively speaking). And Clinton’s team of persuaders has caused half of the country to see Trump as a racist/sexist Hitler with a dangerous temperament. That’s a pink elephant. As a public service (and I mean that literally) I have been trying to unhypnotize the country on this matter for the past year. I don’t do this because I prefer Trump’s policies or because I know who would do the best job as president. I do it because our system doesn’t work if you think there is a pink elephant in the room and there is not. That isn’t real choice. That is an illusion of choice.

Trump represents what is likely to be a once-in-a-lifetime opportunity to bring real change to a government that is bloated and self-serving. Reasonable people can disagree on policies and priorities. But Trump is the bigger agent for change, if that’s what you think the country needs. I want voters to see that choice for what it is. And it isn’t a pink elephant. If you are wondering why a socially liberal and well-educated cartoonist such as myself is not afraid of Trump, it’s because I don’t see the pink elephant. To me, all anti-Trumpers are experiencing a shared illusion.

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If you don’t even jail people for this kind of stuff, your justice system is fast eroding.

California Launches Criminal Probe Into Wells Fargo Account Scandal (R.)

The California Attorney General’s Office has launched a criminal investigation into Wells Fargo over allegations it opened millions of unauthorized customer accounts and credit cards, according to a seizure warrant seen by Reuters. Attorney General Kamala Harris authorized a seizure warrant against the bank that seeks customer records and other documents, saying there is probable cause to believe the bank committed felonies. The probe marks the latest setback for the bank in a growing scandal that led to the abrupt retirement of its chief executive officer, monetary penalties, compensation clawbacks, lost business and damage to its reputation.

[..] This is at least the second criminal probe to be opened into Wells Fargo since last month. In September a source told Reuters that federal prosecutors are also looking into the matter. An affidavit filed by Special Agent Supervisor James Hirt with the California Department of Justice reveals that interviews with possible victims of the fraud have already started. One victim, identified only as “Ms. B,” told the investigator that she had declined a request by a Wells Fargo teller in late 2011 or 2012 to open new accounts. But sometime in late 2013 or early 2014, she started to receive notices that she and her husband “allegedly owned on three life insurance policies held by the bank,” the affidavit says.

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Everyone with power is.

Who’s Powering the War on Cash? (DQ)

[..] cash’s days are numbered, as technological advances and changes in generational priorities dampen its allure. The world is brimming with individuals and institutions determined to put it out of its misery. Top of the list are the world’s central banks, which have the perfect motive for whacking cash: i.e. to make negative interest rates an eternal — or at least, more enduring — reality. And the only way to do that is to stop depositors from cashing out, as the Bank of England chief economist Andrew Hadlaine all but admitted in 2014. Japan and Europe are already deep into negative territory, and Fed Chair Janet Yellen has already said that the U.S. should be prepared for the same outcome. But as long as cash exists, there’s no way of preventing depositors from doing the logical thing – i.e. taking their money out of the bank and parking it where the erosive effects of NIRP can’t reach it.

Central banks are not the only ones who dream of a cash-free world. For credit card companies, cash is the ultimate rival. As such, it’s no surprise that the likes of Visa and MasterCard are among those pushing the hardest for a cashless economy. For banks, the benefits are no less obvious, including cost cuts, greater control over the flow of customer funds, and larger fees. As for politicians, Eurocrats and global plutocrats, including the senior servants of the IMF, World Bank and United Nations, they will enjoy even greater access to and dominion over the people’s funds. What better way of controlling the people than by controlling their access to the money they need to survive? It would amount to what Martin Armstrong calls “totalitarian control over the economy.”

These powerful agents have already created a perfect platform for achieving their dream: The Better Than Cash Alliance (BTCA), a UN-hosted partnership of governments, companies and international organizations. Its purpose, in its own words, is “to accelerate the transition from cash to digital payments globally through excellence in advocacy, knowledge and services to members.” The Better Than Cash Alliance’s membership list reads like a who’s who of some of the world’s most influential corporations and institutions. They include Coca Coca, Visa and Mastercard. Apple is, for now, conspicuously absent from the list, but in its place representing the tech industry is the Bill and Melinda Gates Foundation.

Also on the list are the Citi Foundation, the US Agency for International Development (USAID), and the World Saving Banks Institute, which represents 7,000 retail and savings banks worldwide. Member institutions range from powerful private foundations — including the Ford Foundation and the Clinton Development Initiative — to a bewildering alphabet soup of UN organizations, including WFP (the World Food Programme), UNFPA (the UN Population Fund), UNPD (the UN Development Program), IFAD (the International Fund for Agricultural Development) and UNCDF (the UN Capital Development Fund).

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Interesting theme, but in an article of this length, confining your self to central bankers only seems a shame.

The Cult Of The Expert – And How It Collapsed (G.)

When the history is written of the revolt against experts, September 2008 will be seen as a milestone. The $85bn rescue of the American International Group (AIG) dramatised the power of monetary gurus in all its anti-democratic majesty. The president and Congress could decide to borrow money, or raise it from taxpayers; the Fed could simply create it. And once the AIG rescue had legitimised the broadest possible use of this privilege, the Fed exploited it unflinchingly. Over the course of 2009, it injected a trillion dollars into the economy – a sum equivalent to nearly 30% of the federal budget – via its newly improvised policy of “quantitative easing”. Time magazine anointed Bernanke its person of the year. “The decisions he has made, and those he has yet to make, will shape the path of our prosperity, the direction of our politics and our relationship to the world,” the magazine declared admiringly.

The Fed’s swashbuckling example galvanized central bankers in all the big economies. Soon Europe saw the rise of its own path-shaping monetary chieftain, when Mario Draghi, president of the European Central Bank, defused panic in the eurozone in July 2012 with two magical sentences. “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro,” he vowed, adding, with a twist of Clint Eastwood menace, “And believe me, it will be enough.” For months, Europe’s elected leaders had waffled ineffectually, inviting hedge-fund speculators to test the cohesion of the eurozone. But now Draghi was announcing that he was badder than the baddest hedge-fund goon. Whatever it takes. Believe me.

In the summer of 2013, when Hollywood rolled out its latest Superman film, cartoonists quickly seized upon a gag that would soon become obvious. Caricatures depicted central-bank chieftains decked out in Superman outfits. One showed Bernanke ripping off his banker’s shirt and tie, exposing that thrilling S emblazoned on his vest. Another showed the bearded hero hurtling through space, red cape fluttering, right arm stretched forward, a powerful fist punching at the void in front of him. “Superman and Federal Reserve chairman Ben Bernanke are both mild-mannered,” a financial columnist deadpanned. “They are both calm, even in the face of global disasters. They are both sometimes said to be from other planets.”

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They’re going to roast her today, and not in a funny way.

Theresa May To Tell EU Leaders ‘There Will Be No Second Referendum'(G.)

Theresa May is to warn her 27 fellow European Union leaders over a working dinner in Brussels that Britain’s decision to leave is irreversible and there can be no second referendum. Thursday’s meeting of the European council will be the prime minister’s first opportunity to address the leaders of all the other member states since the UK voted to leave the European Union in June. Donald Tusk, the European council president, has insisted Britain’s future relationship with the EU will not be on the formal agenda for the two-day meeting, but he will give May the opportunity to set out the “current state of affairs in the country” over coffee at the end of the meal.

A No 10 source said she would tell her fellow EU leaders: “The British people have made a decision and it’s right and proper that that decision is honoured. There will be no second referendum. The priority now has got to be looking to the future, and the relationship between the UK, once we leave”. The source added that the prime minister would also seek to reassure the other member states, amid growing fears that Brexit could unleash political and economic instability in Britain and the rest of Europe. “She wants the outcome at the end of this process to be a strong UK, as a partner of a strong EU,” the source said. “She doesn’t want the process of the UK leaving to be damaging for the rest of the EU. She wants it to be a smooth, constructive, orderly process.”

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Painful times ahead.

Australia Housing Boom Peak Has Passed – Morgan Stanley (BBG)

Australia’s housing boom has passed its peak, with a looming apartment glut set to lead to a sharp slowdown in future developments, according to Morgan Stanley. The slowdown in construction will hurt economic growth, put 200,000 jobs at risk and prompt the central bank to resume cutting interest rates next year, Morgan Stanley analysts led by Daniel Blake said in a note dated Oct. 19. “We believe the growth contribution from the housing boom has already peaked and look for a plateau over 2017 and decline through 2018,” the analysts said. The housing industry is also facing a “more imminent credit crunch” for purchases and developments, they said. “The greatest vulnerability is settlement risk on the 160,000 apartments we forecast being completed through the end of 2017,” they said in the report.

“Listed developers report low failure rates currently, but also confirm credit availability has tightened, especially for foreign investors. Non-bank credit is moving to plug the gap at higher interest rates, but we expect some projects will land with the receiver.” Shares of developer Lendlease Group slumped as much as 5.5% in Sydney trading Thursday after the company flagged a slowdown in building activity, saying Sydney apartment activity is peaking and the Melbourne apartment sector is facing a high level of supply. In May, all 391 apartments offered by Lendlease at a project in Sydney were snapped up in just four hours. A national housing oversupply of about 100,000 dwellings will develop by 2018, Morgan Stanley said, as a glut of apartment projects are completed, particularly in Sydney and Melbourne.

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Cohen is the no. 1 American expert on Russia. Audio file at the link.

Did the White House Declare War on Russia? (Stephen F. Cohen)

Nation Contributing Editor Stephen F. Cohen and John Batchelor continue their weekly discussions of the new US-Russian Cold War. Cohen reports that a statement by Vice President Joe Biden on NBC’s Meet the Press on October 16, released on October 14, stunned Moscow (though it was scarcely noted in the American media). In response to a question about alleged Russian hacking of Democratic Party offices, in order to disrupt the presidential election and even throw it to Donald Trump, Biden said the Obama administration was preparing to send Putin a “message,” presumably in the form of some kind of cyber-attack.

The Kremlin spokesman and several leading Russian commentators characterized Biden’s announcement as a virtual “American declaration of war on Russia” and as the first ever in history. Cohen observed that at this fraught stage in the new US-Russian Cold War, Biden’s statement, which clearly had been planned by the White House, could scarcely have been more dangerous or reckless—especially considering that there is no actual evidence or logic for the two allegations against Russia that seem to have prompted it. Biden was reacting to official US charges of Kremlin hacking for political purposes. Cohen points out that in fact no actual evidence for this allegation has been produced, only suppositions or, as Glenn Greenwald has argued, “unproven assertions.”

While the US political-media establishment has uncritically stated the allegation as fact, a MIT expert, professor Theodore Postol, has written that there is “no technical way that the US intelligence community could know who did the hacking if it was done by sophisticated nation-state actors.” Instead, Cohen suggests, the charges, leveled daily by the Clinton campaign as part of its McCarthyite Kremlin-baiting of Donald Trump, are mostly political, and he laments the way US intelligence officials have permitted themselves to be used for this unprofessional purpose. Moreover, it is far from clear that the Kremlin actually favors Trump, despite Clinton’s campaign claims.

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“Obama is now on pace to deport more people than the sum of all 19 presidents who governed the United States from 1892-2000..”

What Obama’s Record Deportations Look Like (I’Cept)

Donald Trump noted during the third presidential debate that the Democratic president, Barack Obama has deported millions of people. Indeed, Obama has deported more people than any modern president. From January, at Fusion.net: “Donald Trump’s bilious blather about immigrants reminds us—more often than most people need reminding—that words matter. But the Obama administration’s recent wave of police-state raids on Central American women and children, whose only crime is poverty and a lack of proper paperwork, reminds us that actions matter too. When it comes to getting tough on immigration, Republican candidates talk the talk, but Obama walks the walk. Obama has deported more people than any U.S. president before him, and almost more than every other president combined from the 20th century.

“Immigration-flow numbers are staggering in both directions. In 2014, it’s estimated that more than 200,000 Central Americans tried to emigrate to the United States without documentation. But the Obama government has been deporting them as fast as it can. Since coming to office in 2009, Obama’s government has deported more than 2.5 million people—up 23% from the George W. Bush years. More shockingly, Obama is now on pace to deport more people than the sum of all 19 presidents who governed the United States from 1892-2000, according to government data.

“And he’s not done yet. With the clock ticking down his final months in office, Obama appears to be running up the score in an effort to protect his title as deporter-in-chief from future presidents. To pad the numbers, Homeland Security is now going after the lowest-hanging fruit: women and children who are seeking asylum from violence in Central America. “This is the only time I remember enforcement raids on families of women and children who are fleeing some of the most violent places on the planet,” says Royce Bernstein Murray, director of policy for the National Immigrant Justice Center.

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Intelligent species.

Use Of Strongest Antibiotics Rises To Record Levels On European Farms (G.)

Use of some of the strongest antibiotics available to treat life-threatening infections has risen to record levels on European farms, new data shows. The report reinforces concerns about the overuse of antibiotics on farms, following revelations from the Guardian of the presence of the superbug MRSA in UK-produced meat, in imported meat for sale in UK supermarkets, and on British farms. According to the data from the European Medicines Agency, medicines classified as “critically important in human medicine” by the World Health Organisation appear to be in frequent use on farm animals across the major countries of the EU, including the UK.

This comes in spite of WHO advice that, because of their importance, these drugs should be used only in the most extreme cases, if at all, in treating animals. The latest report from the EMA collates data from member states on the sales of antibiotics for veterinary purposes in 2014, and shows that antibiotic use on farms fell by about 2% on the previous year overall, and by as much as 12% in many countries. But this disguises the rise in the use of the strongest medicines, such as colistin, which is a last resort for life-threatening human illness. The percentage of antibiotics sales made up by the most potent antibiotics remained steady or in some cases increased slightly, indicating an increase in the amount of so-called critically important antibiotics used.

For instance, sales of fluoroquinolones – the newest versions of which are used to treat life-threatening illnesses including pneumonia and Legionnaire’s disease – stood at 141 tonnes across the countries surveyed in 2013, and rose to 172 tonnes in 2014. Sales of macrolides, also classed as critically important to human health, rose from 59 to 67 tonnes in the same period. This shows that efforts to prevent the drugs most crucial for human health from being used in farming are failing.

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