Opening of Golden Gate Bridge May 27 1937
Don’t know why, is it because it’s Monday, or because I worked hard all weekend, but I had a bit of a hard time finding things today that I found interesting. That was mostly made up for when I saw these headlines in Britain’s Independent newspaper: “Lockdown Has Made The Nation Happier” and “Lockdown Took Away My Freedom But Set Me Free Spiritually”. That is genius. Especially when followed by the news that Vietnam is evacuating 80,000 people from Danang because three were infected. That’s 80,000 people about to be happier.
Plus more news that the dollar is diving. Nor sure against what. I still think it’s gold that is rising, not the other way around. One look at gold vs euro confirms it. But that’s just me. Then again, sure, there’s tons of people betting against the dollar right now. That doesn’t mean it’s smart bet, though.
And as I write this, there’s another Assange circus “trial” happening. Intensely sad.
Substantial declines in new cases for both the world and the US. I just wish I could be a bit happier about them, but it was only a Sunday yesterday.
Power, not people. From both sides. Down to the wire it is.
• $1,200 Stimulus Check, Eviction Moratorium, and Reduced Unemployment Aid (ZH)
With the Trump Treasury sitting on $1.8 trillion and three months to spend it, the White House and Senate Republicans are set to introduce a $1 trillion spending bill on Monday which would be released in stages – angering Democrats who are pushing for an immediate, $3 trillion shotgun blast of stimulus. Speaking with ABC’s “This Week,” White House Chief of Staff Mark Meadows said “I see us being able to provide unemployment insurance, maybe a retention credit, to keep people from being displaced or brought back into the workplace, helping with our schools,” adding “we can negotiate on the rest of the bill in the weeks to come.” “The Trump administration opposes an extension of a $600-a-week enhanced unemployment payment that expired this month, Mnuchin and Meadows said.
Instead, White House officials favor a plan to reimburse an individual’s lost wages or salary by up to 70%”, said Mnuchin and Meadows.” -Newsday. House Speaker Nancy Pelosi (D-CA) popped a fuse at the GOP proposal, blaming Republicans for waiting too long to negotiate for more relief after House Democrats passed a fifth, $3 trillion relief bill which would have included immediate aid to state and local governments, expanded testing and contact tracing for COVID-19. Appearing on CBS’s “Face the Nation,” Pelosi said that Republicans are “in disarray and that delay is causing suffering for America’s families. So we have been ready for two months and 10 days. I’ve been here all weekend hoping they had something to give us.” Treasury Secretary Steven Mnuchin, meanwhile, says the White House is “prepared to act quickly.” We bet they are.
Mnuchin added that unemployment benefits would be extended, while schools and universities would receive protection against “frivolous” lawsuits – part of overall GOP support for protections that would also include corporations. “Within the trillion-dollar package, there’s certain things that have time frames that are a bigger priority, so we could look at doing an entire deal, we could also look at doing parts,” said Mnuchin, adding that he would push for a “technical fix” to unemployment insurance after many have criticized the $600 weekly benefit as being too high, and a disincentive to searching for a job.
Oh wait, I covered this yesterday. This morning, gold rises about as much vs the euro as vs the USD. So what is the dollar “diving” against other than gold and silver?
• Gold Soars To All-Time High As Dollar Dive Boosts Safety Rush (R.)
Gold surged to record highs on Monday as an intensifying U.S.-China row and a weaker dollar sent investors scurrying to the safety of bullion to hedge against the risks to a global economy already reeling from the COVID-19 pandemic. Spot gold rose 1.6% to $1,931.50 per ounce by 0627 GMT after hitting a record high of $1,943.93. U.S. gold futures gained 1.6% to $1,927.50. Silver too joined the rally, jumping more than 6% to $24.36, its highest since September 2013. Gold is in “perfect condition to move higher,” said ANZ commodity strategist Soni Kumari, amid the virus crisis and central banks pushing for liquidity.
“Further support is also coming from falling yields, weaker dollar and geopolitical tensions between the U.S. and China. The safe-haven demand (for gold) has been rising while there is none for USD anymore.” The dollar fell to a near two-year low on increased bets the U.S. Federal Reserve could flag another accommodative policy shift when it meets this week, implying lower interest rates for longer. China seized the U.S. consulate in Chengdu, retaliating to the closure of its own consulate in Houston. Meanwhile, COVID-19 cases surged to over 16.13 million globally, driving expectations of more stimulus to stem the economic blow. “As long as the (virus) situation gets worse, the market is discounting more stimulus for a longer period of time and in bigger quantities,” said Edward Meir, analyst at ED&F Man Capital Markets.
Brilliant. Evokes the image of a guy pointing a gun at your forehead saying: I’m here to make you happy.
The Independent today also runs a story entitled “Lockdown Took Away My Freedom But Set Me Free Spiritually”. Just so you know.
Wonder what this pays.
• Lockdown Has Made The Nation Happier – Study (Ind.)
Lockdown helped to restore people’s happiness after national levels fell when the pandemic began, new research suggests. According to a study by Cambridge University’s Bennett Institute for Public Policy, the number of Britons self-reporting as “happy” halved in just three weeks at the start of lockdown. Using data taken from YouGov Weekly Mood Tracker surveys and Google searches, the researchers found that the number of people declaring themselves as “happy” went from 51 per cent just before the UK’s first Covid-19 fatality to 25 per cent by the time lockdown began on 23 March. However, once lockdown restrictions started to be lifted, these figures reversed, with happiness levels increasing back to close to what they were pre-pandemic, reaching 47 per cent by the end of May.
The study also identified a distinction between life satisfaction among social groups, with those in wealthy categories experiencing a decline while the most deprived groups reported a relative rise in life satisfaction. Dr Roberto Foa, from Cambridge’s Department of Politics and International Studies and director of the YouGov-Cambridge Centre for Public Opinion Research, commented: “It was the pandemic, not the lockdown, that depressed people’s wellbeing. “Mental health concerns are often cited as a reason to avoid lockdown. “In fact, when combined with employment and income support, lockdown may be the single most effective action a government can take during a pandemic to maintain psychological welfare.”
And here’s 80,000 more and happier Vietnamese.
• Vietnam Orders Evacuation Of 80,000 People After Three Test Positive (Ind.)
Vietnam has ordered the evacuation of 80,000 people from the coastal city of Danang after three residents there tested positive for coronavirus. The government said the evacuation would take four days and involve flights chartered to 11 different Vietnamese cities. Vietnam, which has been praised for its pandemic response after reporting just 400 cases and no deaths, went back on high alert at the weekend as it confirmed its first local infections since April, all in the popular tourism destination of Danang. An aggressive and widespread testing regime plus a strict quarantine had helped the South-East Asian nation almost eradicate Covid-19 within its borders, but the authorities are now grappling with its first internal infections for months. Although foreign tourists are still barred from entering the country, there has been a surge of domestic travel as the Vietnamese take advantage of discounted flights and hotel deals.
Anyone who had recently returned home from a break in Danang would be required to quarantine at home for 14 days, the health ministry has said. In addition, the prime minister Nguyen Xuan Phuc has also ordered police to step up a crackdown on illegal immigration. It is not clear if the new Danang cases are connected to people entering Vietnam secretly but Vietnamese state media said on Sunday police had arrested a Chinese man accused of running a gang which smuggled people into the country from China. On Monday, the government announced more than 1,500 people had been caught illegally crossing the border from China into Ha Giang province in Vietnam since May. Most of those caught were Vietnamese citizens and had been sent into quarantine.
Probably true in many places.
• Spain’s COVID19 Death Toll Could Be 60% Higher Than Reported – El Pais (RT)
Spain’s Covid-19 death toll could be off by 60 percent, according to calculations by the country’s leading newspaper, El Pais, which suggest Spain has the second-highest number of deaths in Europe after the UK. An El Pais investigation published on Sunday found that the official figure of 28,432 deaths is likely far less than the true number of people who have died with the virus. Spain’s official death toll only includes people who had a confirmed Covid-19 diagnosis, and not those who were suspected of having it but were never tested. El Pais looked at regional statistics on all suspected and confirmed deaths from the virus and concluded that 44,868 people died with Covid-19.
This figure is close to the number of excess deaths recorded by the National Epidemiology Centre and National Statistics Centre (INE) in June. It found that there were 43,945 more deaths between January and May 2020 than the previous year. The Spanish Association of Professionals and Funeral Services and the Carlos III Health Institute also calculated similar excess mortality figures during this time. If El Pais’ figures are accurate, it would mean that Spain has seen the second most deadly outbreak in Europe after the UK, which has recorded over 45,000 deaths. There was a lack of widespread testing carried at the beginning of the outbreak, which might explain the discrepancy with the official figures. At the end of May, the country lowered its death toll by 2,000 as a result of duplicate records and some regions reporting suspected cases as confirmed cases.
All our money on one horse.
• The $52 Trillion Bubble That Has “Hijacked China’s Economy”
More than three years ago, we explained why “the fate of the world economy is in the hands of China’s housing bubble.” As we said at the time, “China has always been a serial bubble inflator courtesy of a closed (capital account) economy, and nearly $30 trillion in bank deposits [$40 trillion as of July 2020] which slosh from one asset class to another, be it the stock market, bitcoin, commodities, farm animals or – most often – housing. ” Why is it so important for China to consistently reflate this bubble? The answer is simple: for China’s middle class there is no more important asset than housing: as Deutsche’s Zhiewi Zhang wrote in 2017 when discussing the macro and market consequences of the Chinese bubble, it is nothing more (or less) than “a massive wealth effect.”
Furthermore, unlike the US, which is hyperfinancialized and the bulk of household net worth is in financial assets (less than 30% is in real estate), in China it is the opposite, and roughly three-quarters of all household worth is in real estate. And since a global healthy economy starts with a growing, stable and inflating Chinese economy, unless China’s housing bubble is growing at a steady, measured pace created a “wealth effect” illusion among several hundred million middle-class Chinese, we concluded three years ago that the global economy is just as reliant on China’s housing market as it is on the global – and certainly US – stock market. Fast forward a little over three years, when China’s housing bubble is bigger than ever, and now the WSJ has picked up on what we said three years ago, namely that China’s epic housing market is perhaps the world’s most defining bubble, and more importantly, not even the covid pandemic did anything to threaten the sanctity of this bubble.
First, some context why China’s housing bubble currently eclipses the one in U.S. housing in the 2000s: “At the peak of the U.S. property boom, about $900 billion a year was being invested in residential real estate. In the 12 months ended in June, about $1.4 trillion was invested in Chinese housing. More was invested last month in Chinese real estate than any other month on record.” Some more statistics: “the total value of Chinese homes and developers’ inventory hit $52 trillion in 2019, according to Goldman Sachs, twice the size of the U.S. residential market and outstripping even the entire U.S. bond market.” China’s housing market is certainly bigger than the US stock market, and at its current growth rate will surpass the total value of all global stocks (which is currently about $85 trillion) in just a few years!
He’ll be forever known as Fat Boris now.
• Britain Unveils Plans To Tackle ‘Obesity Time Bomb’ (R.)
Britain unveiled plans to tackle an “obesity time bomb” on Monday, banning TV and online adverts for junk food before 9.00 p.m., ending “buy one get one free” deals on such foods and putting calories on menus.
Prime Minister Boris Johnson, who has lost weight since he was in intensive care with COVID-19, wants to tackle obesity after research showed those who are obese or overweight are at increased risk of death or severe illness from the coronavirus. Last month, he said Britain was fatter than most European countries apart from Malta and his government described “tackling the obesity time bomb” as a priority.Ditching his earlier stance as a non-believer of “nannying” politics, his government is announcing a new drive to help people to “take control of their own future by losing weight, getting active and adopting a healthier lifestyle”. Alongside the ban on adverts before 9.00 p.m. (2000 GMT), on food deals and plans for the calorific content of meals to be displayed on menus, the government will also launch a consultation on displaying calories on alcohol. “Losing weight is hard but with some small changes we can all feel fitter and healthier,” Johnson said in a statement. “If we all do our bit, we can reduce our health risks and protect ourselves against coronavirus – as well as taking pressure off the NHS (National Health Service).”
With more than 60% of adults in Britain considered overweight or obese, according to Public Health England, the coronavirus crisis has put the obesity issue at the forefront of the government’s thinking, with a “Better Health” campaign being launched alongside the new measures.
Thought experiment: imagine this happening in a French or German city. How do you think their governments would react?
• Riots Are Driving Portland’s Small Businesses Under (RT)
After nearly 60 straight nights of violence, business owners in Portland are sick and tired of riots. But as their stores go under, the coastal media treats the rioters to glowing coverage and city authorities do nothing. Portland is a liberal stronghold, and as ‘Black Lives Matter’ protests fizzle out around the country, anger remains at boiling point in the Oregonian city. The protests there have not been all banner-waving and slogan-chanting affairs though. Instead, droves of ‘Antifa’ types have laid siege to the city’s Justice Center for almost two months, tearing down barricades, lobbing fireworks, setting fires and stabbing each other.
Most of those involved in the riots would probably say they’re fighting police brutality or fascism, or something of the sort, but besides those injured in that fight there are other victims of the unrest – local business owners have repeatedly complained about the riots to the local media. In articles published every few days, these store owners, barmen and restaurateurs describe how the riots have driven them to the brink of bankruptcy. One clothing store manager told Oregon Live on Saturday that within days of coronavirus restrictions being lifted, he reopened his family’s store, only to watch rioters trash the premises in late May, days after the killing of George Floyd kicked off the season of unrest.
[..] While local news tells tales of shuttered stores and bankrupt businesses, national media outlets describe the violence in Portland as a good v evil showdown between protesters and federal “stormtroopers.” As store owners told their stories to local media, the New York Times ran an article last week celebrating the “diverse elements” taking part in the protests. The “mothers in helmets,” and “anti-fascist activists” are “largely peaceful,” the paper wrote, describing how they have been “galvanized” by the “militarized” feds on the streets. The Washington Post was even more effusive in its praise, describing the feds’ use of tear gas as a “chemical weapon,” and honoring the moms, dads, teachers and healthcare workers who refuse to disperse and willingly stride into the choking fumes. The motives of the protesters – beyond vague demands for “racial justice” – are never explained, but the Post painted a truly heroic image of one man using a leaf blower to fire gas back at the agents.
For now, the basement is winning. So why change?
• Biden Campaign Declines ‘Fox News Sunday’ Interview (Fox)
During his interview with Chris Wallace last week, President Trump questioned whether the Democrats’ presumptive presidential nominee, Joe Biden, could handle the barrage of questioning that Wallace posed to Trump. The answer to that question – at least for now – we may never know. Wallace on Sunday informed viewers that the Biden campaign told Fox News he was “not available” for an interview. “In our interview last week with President Trump, he questioned whether his Democratic opponent, Joe Biden, could handle a similar encounter,” Wallace said. “This week, we asked the Biden campaign for an interview and they said the former vice president was not available.” He added, “We’ll keep asking every week.”
The Trump campaign has hit Biden for months for abstaining from holding rallies and news conferences while continuing to do interviews amid the coronavirus pandemic. While Biden recently has returned to the stump, Trump and his allies continued to mock the former vice president for “hiding” in his home in Delaware. Biden’s reticence to do public events, however, has done little to hurt his candidacy as the latest polls had Biden comfortably ahead of Trump both nationally and in key battleground states.
Wondering how the MSM will cover future indictments, subpoenas etc. Those will come.
• More Willful Blindness By The Media On Spying By Obama Administration (Turley)
The Washington press corps seems engaged in a collective demonstration of the legal concept of willful blindness, or deliberately ignoring the facts, following the release of yet another declassified document which directly refutes prior statements about the investigation into Russia collusion. The document shows that FBI officials used a national security briefing of then candidate Donald Trump and his top aides to gather possible evidence for Crossfire Hurricane, its code name for the Russia investigation. It is astonishing that the media refuses to see what is one of the biggest stories in decades. The Obama administration targeted the campaign of the opposing party based on false evidence.
The media covered Obama administration officials ridiculing the suggestions of spying on the Trump campaign and of improper conduct with the Russia investigation. When Attorney General William Barr told the Senate last year that he believed spying did occur, he was lambasted in the media, including by James Comey and others involved in that investigation. The mocking “wow” response of the fired FBI director received extensive coverage. The new document shows that, in summer 2016, FBI agent Joe Pientka briefed Trump campaign advisers Michael Flynn and Chris Christie over national security issues, standard practice ahead of the election. It had a discussion of Russian interference. But this was different.
The document detailing the questions asked by Trump and his aides and their reactions was filed several days after that meeting under Crossfire Hurricane and Crossfire Razor, the FBI investigation of Flynn. The two FBI officials listed who approved the report are Kevin Clinesmith and Peter Strzok. Clinesmith is the former FBI lawyer responsible for the FISA surveillance conducted on members of the Trump campaign. He opposed Trump and sent an email after the election declaring “viva the resistance.” He is now under review for possible criminal charges for altering a FISA court filing. The FBI used Trump adviser Carter Page as the basis for the original FISA application, due to his contacts with Russians. After that surveillance was approved, however, federal officials discredited the collusion allegations and noted that Page was a CIA asset. Clinesmith had allegedly changed the information to state that Page was not working for the CIA.
Strzok is the FBI agent whose violation of FBI rules led Justice Department officials to refer him for possible criminal charges. Strzok did not hide his intense loathing of Trump and famously referenced an “insurance policy” if Trump were to win the election. After FBI officials concluded there was no evidence of any crime by Flynn at the end of 2016, Strzok prevented the closing of the investigation as FBI officials searched for any crime that might be used to charge the incoming national security adviser. Documents show Comey briefed President Obama and Vice President Joe Biden on the investigation shortly before the inauguration of Trump.
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