Feb 272022
 


Rembrandt van Rijn Aristotle Contemplating a Bust of Homer 1653
https://en.wikipedia.org/wiki/Picture_This_(novel)

 

Intracellular Reverse Transcription of Pfizer COVID-19 mRNA Vaccine (MDPI)
‘Final Review’ Of Russia’s Relations With West Now Possible – Medvedev (RT)
US Foreign Policy Is a Cruel Sport (Diana Johnstone)
The New Geopolitical Game Board (Luongo)
Ukraine’s Leadership Has Rejected Negotiations – Kremlin (RT)
Can Ukraine Have A ‘Nazi Problem’ With A Jewish President? (Karabelnicoff)
Elon Musk Activates Starlink Satellites to Restore Internet in Ukraine (GR)
The Freezing Of Accounts Was Political Vengeance (TSun)
The Global Disinformation Campaign to Suppress Ivermectin (Kory)
Scientific Groupthink Silenced Scientists Sceptical of Lockdowns (DS)

 

 

 

 

Pharmacokinetics

 

 

This study is in vitro, but it is beyond scary, and should halt all vaccinations right now:

“We also show that BNT162b2 mRNA is reverse transcribed intracellularly into DNA in as fast as 6 h upon BNT162b2 exposure.”

“BNT162b2-derived DNA may be integrated into the host genome and affect the integrity of genomic DNA..”

This MUST first be tested. The sad irony is that there are a few hundred million test cases walking around.

Intracellular Reverse Transcription of Pfizer COVID-19 mRNA Vaccine (MDPI)

In the current study, we employed a human liver cell line for in vitro investigation. It is worth investigating if the liver cells also present the vaccine-derived SARS-CoV-2 spike protein, which could potentially make the liver cells targets for previously primed spike protein reactive cytotoxic T cells. There has been case reports on individuals who developed autoimmune hepatitis [39] after BNT162b2 vaccination. To obtain better understanding of the potential effects of BNT162b2 on liver function, in vivo models are desired for future studies.


In the BNT162b2 toxicity report, no genotoxicity nor carcinogenicity studies have been provided [26]. Our study shows that BNT162b2 can be reverse transcribed to DNA in liver cell line Huh7, and this may give rise to the concern if BNT162b2-derived DNA may be integrated into the host genome and affect the integrity of genomic DNA, which may potentially mediate genotoxic side effects. At this stage, we do not know if DNA reverse transcribed from BNT162b2 is integrated into the cell genome. Further studies are needed to demonstrate the effect of BNT162b2 on genomic integrity, including whole genome sequencing of cells exposed to BNT162b2, as well as tissues from human subjects who received BNT162b2 vaccination.

Read more …

“It’s time to close the embassies with barn locks. And to continue contacts by examining each other only through binoculars and weapons’ optical systems..”

‘Final Review’ Of Russia’s Relations With West Now Possible – Medvedev (RT)

Western sanctions could be an “excellent reason for a final review” of Russia’s relations with the nations that have imposed the restrictions, the deputy chairman of Russia’s Security Council and former president, Dmitry Medvedev, said on Saturday. Russia’s military operation in Ukraine, which was launched on February 24, has prompted outrage in the West and a new wave of harsh sanctions against Russia. In a lengthy post on the Russian social network VK, Medvedev called the restrictions “a myth, a figment, a figure of speech.” “Sanctions could be an excellent reason for the final review of all relations with those states that have introduced them. Including interruption of the dialogue on strategic stability,” Medvedev wrote. He added that in principle, it is possible “to renounce everything,” including the New START Treaty.


“Yes, and diplomatic relations, in principle, are not particularly needed. It’s time to close the embassies with barn locks. And to continue contacts by examining each other only through binoculars and weapons’ optical systems,” Medvedev said. Commenting on the decision by the Council of Europe and Parliamentary Assembly of the Council of Europe to suspend Russia’s membership, the former president said that while this is a “flagrant injustice,” it could still be considered as a good reason “to finally slam the door and forget about these meaningless almshouses forever.” This development could also be used to “restore a number of important institutions for prevention of especially serious crimes in the country,” he said, such as the “death penalty for the most dangerous criminals, which, by the way, is being actively used in the United States and China.”

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“The Minsk agreement set out a few steps to end the internal Ukrainian crisis. First, Ukraine was supposed to immediately adopt a law granting self-government to eastern regions (in March 2015).”

US Foreign Policy Is a Cruel Sport (Diana Johnstone)

The 2014 U.S.-backed coup that overthrew President Viktor Yukanovych, solidly supported by the east of the country, brought to power pro-West forces determined to bring Ukraine into NATO, whose designation of Russia as prime enemy had become ever more blatant. This caused the prospect of an eventual NATO capture of Russia’s major naval base at Sebastopol, on the Crimean peninsula. Since the Crimean population had never wanted to be part of Ukraine, the peril was averted by organizing a referendum in which an overwhelming majority of Crimeans voted to return to Russia, from which they had been severed by an autocratic Khrushchev ruling in 1954. Western propagandists relentlessly denounced this act of self-determination as a “Russian invasion” foreshadowing a program of Russian military conquest of its Western neighbors – a fantasy supported by neither facts nor motivation.

Appalled by the coup overthrowing the president they had voted for, by nationalists threatening to outlaw the Russian language they spoke, the people of the eastern provinces of Donetsk and Lugansk declared their independence. Russia did not support this move, but instead supported the Minsk agreement, signed in February 2015 and endorsed by a UN Security Council resolution. The gist of the accord was to preserve the territorial integrity of Ukraine by a federalization process that would return the breakaway republics in return for their local autonomy. The Minsk agreement set out a few steps to end the internal Ukrainian crisis. First, Ukraine was supposed to immediately adopt a law granting self-government to eastern regions (in March 2015).

Next, Kiev would negotiate with eastern territories over guidelines for local elections to be held that year under OSCE supervision. Then Kiev would implement a constitutional reform guaranteeing eastern right. After the elections, Kiev would take full control of Donetsk and Lugansk, including border with Russia. A general amnesty would cover soldiers on both sides. However, although it signed the agreement, Kiev has never implemented any of these points and refuses to negotiate with the eastern rebels. Under the so-called Normandy agreement, France and Germany were expected to put pressure on Kiev to accept this peaceful settlement, but nothing happened. Instead, the West has accused Russia of failing to implement the agreement, which makes no sense inasmuch as the obligations to implement fall on Kiev, not on Moscow. Kiev officials regularly reiterate their refusal to negotiate with the rebels, while demanding more and more weaponry from NATO powers in order to deal with the problem in their own way.

Read more …

“It was as clumsy as it was stupid, to quote Darth Vader..”

The New Geopolitical Game Board (Luongo)

Up until February 23rd, 2022, the powerful countries of the world played a very rarified game. Too many people try to analyze geopolitics like it is a game of chess. Move, counter-move. Push a pawn? Threaten a knight, that type of thing. It’s easy to understand and makes for good copy. In the past I’ve tried to liken it to a multi-player version of Go, with anywhere from four to 6 different colored stones on the board trying to take territory. It was a better metaphor but nearly impossible to describe adequately. In fact, at times, it was exhausting. The reality is that neither of these metaphors are explanatory. Because the only accurate model for geopolitics is actually Calvinball. You know that game. That’s the one from Calvin & Hobbes.

Contrary to your memory of the legendary comic strip, there were rules to Calvinball that went something like this: Calvin got to make the rules up as he went along. In geopolitics it pretty much comes down to whoever is the strongest player got that power. Here’s the thing. Up until Russia’s invasion of Ukraine (and yes, it is an invasion, justifiable or otherwise) there was something called the ‘rules-based order’ promoted mainly by the US but also supported directly by the European Union and the Commonwealth. The rules of the ‘rules-based order’ were simple. We make the rules, you follow them. We reserve the right to change the rules whenever we want to suit our purpose. It was the geopolitical equivalent of Sam Francis’ idea of ‘anarcho-tyranny,’ which boils down to, “rules for thee, but not for me.”

We’ve heard the Russian diplomats complain about this for years. Why have these rules if they are not ever enforced? As I point out all the time when talking about leftist ideologues purity spiraling towards self-destruction, we have these rules because only others’ hypocrisy counts. Sub-humans are not allowed to talk or even be a part of the conversation. And in the world of diplomacy as practiced by the collective West, the Russians are definitely sub-human, just like the unvaxxed, anyone to the immediate right of Karl Marx and who isn’t a furry. All that changed when Russian tanks crossed the border, stand off missiles hit anti-aircraft and artillery batteries, and marines came onshore in Ukraine.

For months we’ve been treated to the dumbest and most infuriating facsimile of diplomacy I’ve ever witnessed. It beggared belief listening to the nauseating virtue signaling of US ‘diplomats’ who refused to engage Russia’s concerns in even a half-serious manner while blaming them for every issue on the planet. It was as clumsy as it was stupid, to quote Darth Vader. It was clear that Putin and his staff would be given this ultimate option, invade Ukraine and face global opprobrium or kneel before Zod. Their miscalculation was in thinking that Russia actually cares one whit about that global opprobrium at this point. By their actions in Ukraine this week, it is clear they do not.

Read more …

Fluid. Latest is that Zelensky is willing to talk, but not in Minsk.

Ukraine’s Leadership Has Rejected Negotiations – Kremlin (RT)

Russia’s military operation in Ukraine is continuing after the country’s leadership declined to negotiate, Kremlin spokesman Dmitry Peskov said on Saturday. President Vladimir Putin previously ordered the Russian troops to halt their advance on Friday, awaiting a response from Kiev, Moscow said. It added that the offensive continued on Saturday. Alexey Arestovich, an adviser at Zelensky’s office, confirmed to Ukrainian media that Kiev has declined the talks with Russia, citing the “terms” put forward by Moscow through intermediaries. “It was an attempt to force us into capitulation,” he said, without elaborating. Alexey Arestovich, an adviser at Zelensky’s office, confirmed to Ukrainian media that Kiev has declined the talks with Russia, blaming the “terms” put forward by Moscow through intermediaries.


“It was an attempt to force us into capitulation,” he said, without elaborating. However, moments later, another official at Zelensky’s office, Mikhail Podolyak, told Russian outlet RBC that Kiev did not reject the negotiations. “Undoubtedly, Ukraine did not refuse to negotiate,” he said, underlining that negotiations have not yet taken place. “Ukraine and President Zelensky categorically reject any unacceptable or ultimatum-like conditions of the Russian side.” Ukrainian President Volodymyr Zelensky said on Friday that he was ready to sit down for talks with Russia in order to end hostilities between the countries. The same day, Peskov told reporters that Moscow was ready to hold talks in Minsk, Belarus. He later claimed that the Ukrainian side first offered to move the meeting to Warsaw, Poland, and then stopped responding.

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From jewishunpacked.com.

I think Putin’s point is that neo-nazis have too much influence in Ukraine.

Can Ukraine Have A ‘Nazi Problem’ With A Jewish President? (Karabelnicoff)

In Ukraine, the offense of antisemitism is now punishable by a fine or a prison sentence of up to five years. Despite this, antisemitism is not a thing of the past in Ukraine. The country has been historically reluctant to reckon with its role in the Holocaust, during which more than one million Jews were killed by the Nazis and local Ukrainian collaborators. The Jews of Ukraine account for a great proportion of the Soviet victims of the Holocaust with the worst massacre taking place at Babi Yar outside Kiev. During 1941–43 more than 100,000 Jews were killed in Babi Yar. For some in Ukraine’s Jewish community, the current events have stirred up memories of past horrors, reported the New York Times. “Though antisemitic violence is relatively rare in Odessa, some Jews are fearful that it could be unleashed by the chaos of war,” the article explained.

“Antisemitism in Ukraine exists in its old ‘traditional’ and cultural form: the notion that Jews control all money, the media and government, they are greedy, murdered Jesus, and ‘suck our blood,’” said Samuel Kliger, the American Jewish Committee’s Director of Russian and Eurasian Affairs. Alongside that apathy, Kilger said, some Ukrainian lawmakers have pushed to celebrate certain Nazi collaborators as war heroes, trumpeting their anti-Communist battles while ignoring their complicity in Holocaust crimes. “Ukraine really does have a far-right problem, and it’s not a fiction of Kremlin propaganda. And it’s well past time to talk about it,” explained journalist and expert on the Ukrainian far right, Michael Colborne.

The most known neo-Nazi group on Ukraine’s far right is the Azov movement. The movement grew out of the Azov Regiment (originally a Battalion), formed in the chaos of war in early 2014. It was formed by a “ragtag group of far-right thugs, football hooligans and international hangers-on, including dozens of Russian citizens,” said Colborne, who wrote a book on the movement. At that point, Azov became an official unit of Ukraine’s National Guard. Now, the movement’s most public face is the National Corps political party, which won barely 2% of the vote in a coalition with other far-right parties in parliamentary elections in 2019.

Estimates of membership are around 10,000 members, according to Corborne. “It’s more a brand than a party, a polished PR-focused outfit that isn’t above coyly referencing the so-called “14 words”, a white supremacist slogan,” he wrote. “The Azov movement tries to be a one-stop shop for all things far right. There’s also a bevy of loosely affiliated but more extreme subgroups under its umbrella as well, including open neo-Nazis who praise and promote violence.” The Azov movement is frequently cited by people who want to “give Putin a free pass to do what he wants in Ukraine,” Corborne added. “It doesn’t in any way justify the actions of the Russian president.”

De-nazification

Read more …

12,000 satellites…

Elon Musk Activates Starlink Satellites to Restore Internet in Ukraine (GR)

Elon Musk said early on Sunday that his Starlink satellite service is activated in Ukraine after a government official in Kyiv called on him to supply satellite-based communications to help resist Russia’s invasion of Ukraine. “Starlink service is now active in Ukraine,” Musk tweeted, adding “more terminals en route.” The tweet came some 10 hours after Ukrainian Minister of Digital Transformation Mykhailo Fedorov urged Musk to provide Starlink services to Ukraine, days after it was invaded by neighboring Russia. “While you try to colonize Mars — Russia try to occupy Ukraine! While your rockets successfully land from space — Russian rockets attack Ukrainian civil people! We ask you to provide Ukraine with Starlink stations,” Fedorov tweeted at Musk.


He also called on the billionaire “to address sane Russians to stand” against their government’s invasion. Internet monitor NetBlocks said Ukraine has seen a “series of significant disruptions to internet service” since Thursday when Russia launched military operations in the country. “Musk’s Starlink helps nations facing threats or natural disasters like Ukraine, Tonga”. Starlink operates a constellation of more than 2,000 satellites that aim to provide internet access across the planet. The company on Friday launched a further 50 Starlink satellites and many more are slated to be put into Earth’s orbit. It currently has more than 1,600 satellites orbiting in space — but that’s only the beginning for the tech maven, who plans to launch up to 12,000, reports Smithsonian Magazine.

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“..an assault on ordinary Canadians just because they disagreed with the government.”

The Freezing Of Accounts Was Political Vengeance (TSun)

By the time you read this column, perhaps the Trudeau government will have permitted banks, pension funds, insurance companies, mortgage brokers and other financial institutions to release the accounts of protestors and Freedom Convoy donors that were frozen after the Liberals invoked the Emergencies Act on Feb. 14. But as I am writing this – about 48 hours after the prime minister ended his emergency degree – the bank accounts, credit cards and loans of Canadian workers and businesses connected with the convoy were still under government lock and key. Why? Monday, when asking Parliament to approve his use of the Emergencies Act, Trudeau promised the state of emergency would not last “a day longer than necessary.”

Well, for the more than 200 Canadians being held financial hostage by Ottawa, it has gone on longer. That is outrageous enough. But consider what Barry MacKillop, deputy director of FINTRAC, told the Commons Finance committee on Thursday. As far as his agency is concerned none of the people whose accounts were frozen intended to bring down the Canadian government or destabilize the country’s economy. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), is the federal agency within the Department of Finance responsible for detecting and preventing money laundering, terrorism financing and transfers of the proceeds of crime.

When the Trudeau government sent banks on a witch hunt through the account records and credit histories of ordinary Canadians who had given money to the Freedom Convoy, Finance Minister Chrystia Freeland said such heavy-handed tactics were necessary because “we know these platforms are being used to support illegal blockades and illegal activity which is damaging the Canadian economy.” Really!? ‘Cuz the very agency within Freeland’s own department in charge of preventing such activity told MPs on Thursday this was the donors’ own money. As far as FINTRAC can tell, the millions donated in small amounts were genuine, good-faith donations. They weren’t money being funneled from powerful sources bent on overthrowing the Trudeau regime.

“It was (donors’) own money. It wasn’t cash that funded terrorism or was in any way money laundering,” MacKillop testified. He added, “There were people around the world who were fed up with COVID and were upset and saw the demonstrations. I believe they just wanted to support the cause.” Which, if you think about it, makes the freezing of these people’s personal accounts an act of political vengeance by the Liberals – an assault on ordinary Canadians just because they disagreed with the government. Politicians using the vast power of the state to intimidate their opponents purely on ideological grounds is far more of a threat to our democracy than any threat the Trudeau government imagined (and I use the word “imagined” on purpose) the convoy posed.

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“It’s time for the cops. It’s time for the prosecutors. And it’s time for the judges. And then it’s time for the prisons.”

The Global Disinformation Campaign to Suppress Ivermectin (Kory)

The only way to stop future pharmaceutical industry crimes against humanity is to record, for posterity, the historically unprecedented scale of censorship and propaganda of information that they deployed. If I can help expose this playbook (with my little Substack—delusions of grandeur?), we have a shot at developing countering and/or neutralizing measures to prevent further massive deaths in this disease—as well as many other diseases. Note that the nefariousness of these actions can only be dwarfed by their scale, as they have impacted survival outcomes in almost the entirety of planet Earth’s citizens. Although I will document these depraved actions, in most cases I will be unable to suggest or truly identify the ultimate or specific protagonists.

You know: The actual individuals deploying these tactics, the ones making the ad buys and providing the “messaging,” paying the journalists and researchers for their media hit jobs, publishing the “negative” medical journal editorials and studies, partnering with the occasional U.S sociopath health agency leader, etc. Although I will be unable to identify them personally, employing logic, the only possible source of sufficient power to have exerted such widespread influence, would be the managers of the three multi-trillion dollar investment firms that have influential and/or controlling stakes in almost all corporations in almost all industries, and those three are: Black Rock, State Street, and Vanguard.

Or it may have been the occasional pseudo-philanthropist-vaccine-obsessed-eugenicist-hundred-billionaire who, along with massive controlling donations to all the major international and national health agencies, also distributed hundreds of millions amongst almost every major media outlet in the world. That investigative exercise is not what I am skilled in, as I am just a lowly physician expert in ivermectin who has held a front row seat to now fourteen months of their deadly successful disinformation campaign against ivermectin. Instead, I simply plan to document every detail of every action that I have witnessed and/or have been personally involved in…and hope the investigative authorities can take care of the rest.

It’s time for the cops. It’s time for the prosecutors. And it’s time for the judges. And then it’s time for the prisons. But first: The evidence. Stay tuned.

Read more …

“Many academics and researchers were scared of losing grant funding if they raised their head above the parapet.”

Scientific Groupthink Silenced Scientists Sceptical of Lockdowns (DS)

Early in the pandemic a narrow scientific ‘groupthink’ took hold, which cast those questioning draconian policies as “unethical, immoral and fringe” – but this “smokescreen is finally starting to dissipate”, the Telegraph‘s Science Editor Sarah Knapton has said. “Take scientists who supported the Great Barrington Declaration. They, not unreasonably, believed that it would be sensible to shield the most vulnerable while allowing those at very low risk to carry on their lives, thereby preventing cataclysmic damage to the economy, mental health and education. Instead of the idea being sensibly debated, the signatories were pilloried and made to seem as if they were in the minority.

A recent study by Stanford University revealed they weren’t; they just had fewer social media followers and so struggled in the face of more organised opposition.The report neatly demonstrates the alarming reach and power of demographically unrepresentative forums like Twitter, which are easily hijacked by powerful lobbying groups. Prof John Ioannidis, the study author and an expert in data science and the reliability of research, told the Telegraph: “Twitter is a useful means to communicate both with colleagues and with the general public. However, it should not be used for arbitrating what is scientifically correct, let alone for shaping health policy. “Twitter can be easily usurped by agendas and narratives; it is very easily susceptible to political coloration and fads, and it is often used for smearing opponents.

“I worry about the distortion that can ensue when science is communicated in brief clips or with a mindset of how to satisfy or excite one’s followers.” Much of the pro-lockdown narrative was controlled by a small group of scientists who effectively organised themselves into a political movement which sought to influence policy. Independent Sage, a group of largely Left-wing academics which regularly called for tighter restrictions, was put together by the Citizens, a group founded by Carole Cadwalladr, a Guardian and Observer journalist and activist. Many of the scientists on Independent Sage also signed the John Snow Memorandum, which branded the Great Barrington Experiment as unethical.”

Many of those opposed to the new groupthink kept their heads down for fear of losing funding, Sarah writes. “Many academics and researchers were scared of losing grant funding if they raised their head above the parapet. It created a chilling effect which made it appear that most scientists believed in greater restrictions. Even within the Government, there is now a feeling that too much attention was paid to too narrow a band of scientists, at the expense of seeing the bigger picture. Large parts of the scientific community were completely ignored as a disproportionate amount of attention was given to virologists and epidemiologists. One Government minister said: “We have had to have the guts to say the data can be challenged sometimes, and say that’s good data but we have to make a political decision.

“In the pandemic we got a bit close to pretending there was no tension. Public health officials who have absolutely no remit to keep the economy vibrant, they only remit is to make sure there is no infection were calling for the whole thing to be shut down

Read more …

 

 

 

 

 

THE REVOLUTION WILL NOT BE TELEVISED
https://twitter.com/i/status/1497269557035216900

 

 

People’s Convoy 10 miles long

 

 

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Sep 012016
 
 September 1, 2016  Posted by at 9:31 am Finance Tagged with: , , , , , , , , , ,  1 Response »


F.A. Loumis, Independence (Bastille?!) Day 1906

Collapse of Hanjin, World’s 7th-Biggest Shipping Line, Upsets Global Trade (R.)
Investors Miss Out On $500 Billion As Global Bond Yields Plunge (CNBC)
In Case Of Recession, The Fed Might ‘Need’ To Cut Rates To Minus 2% (CNBC)
Eurozone Core Inflation Fall Raises Prospect Of ECB Stimulus Measures (G.)
Bank of Japan Has an $84 Billion Yen Gap in Balance Sheet (BBG)
Admitting Ignorance Is Better Than Groupthink For Central Bankers (BBG)
An 809% Debt Ratio And Investors Are Serene? It Must Be China (BBG)
Austria Says Will Start ‘Conflict’ In EU About Canada Trade Deal (R.)
Apple Travesty Is A Reminder Why Britain Must Leave The Lawless EU (AEP)
UK Defined Benefit Pension Fund Deficit Grows By £100 Billion In A Month (G.)
London’s Elite ‘Pushed Out Of Exclusive Postcodes By Super Rich’ (G.)
A Third Of Africa’s Elephants Were Wiped Out In Just 7 Years (CNN)

 

 

Excellent. We’re far too independent on the idiocy of 10,000 mile shipping lines. They’re heavily polluting (in more ways than one) and entirely unnecessary.

Collapse of Hanjin, World’s 7th-Biggest Shipping Line, Upsets Global Trade (R.)

The collapse of South Korea’s Hanjin Shipping sent ripples though global trade on Thursday, as the country’s largest port turned away its ships and as some manufacturers scrambled for freight alternatives. Hanjin on Wednesday filed for court receivership after its banks decided to end financial support, and ports from China to Spain, the United States and Canada have refused entry to Hanjin vessels in what is traditionally the industry’s busiest season ahead of the year-end holidays. An official with Hanjin Shipping in Busan confirmed that its vessels were not entering the southern city’s port as container lashing providers deny service on concerns that they will not be paid. The company was also worried that the ships may be seized by creditors.

LG Electronics, the world’s No.2 maker of TVs, told Reuters it was cancelling orders with Hanjin and was seeking alternatives to ship its freight. An executive at the Korea International Freight Forwarders Association said on Wednesday he had been inundated with calls from cargo owners worried about the fate of their shipments in transit to the United States and Europe. While mobile phones and semiconductors are carried by air, other electronics like home appliances are shipped by sea. “This will have an impact on the entire industry,” the official said.

South Korea’s maritime ministry said on Wednesday that Hanjin’s woes would affect cargo exports for two or three months, with about 540,000 TEU of cargo already loaded on Hanjin vessels and facing delays. It would be difficult to find alternative ships given high seasonal demand from August to October. The ministry said it would ask local rival Hyundai Merchant Marine to supply vessels to cover some of Hanjin’s routes to the United States and Europe, while also seeking help from overseas carriers.

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How central bankers kill pensions.

Investors Miss Out On $500 Billion As Global Bond Yields Plunge (CNBC)

Investors have seen their interest income squeezed as global bond yields plunge. On the flipside, governments aren’t complaining. Relative to yields in 2011, global investors are foregoing more than $500 billion in annual income on roughly $38 trillion in sovereign debt that is outstanding, Fitch Ratings said in a report on Wednesday. “Cash flow benefits have effectively been transferred from global investors to sovereign issuers, as sovereign borrowing costs have dropped in response to central bank monetary stimulus,” Fitch said in the report. “This has posed new challenges for income-reliant investors, such as insurers and pension funds, while enabling governments to borrow at increasingly attractive rates.”

Borrowers would realize benefits only slowly, however, as bonds with higher coupon rates matured and newer bonds with lower interest rates were issued, the rating agency said. According to Fitch, investors who tended to buy assets and hold them onto maturity would have to invest new cash in bonds that paid lower interest rates, blunting the money they earned from coupon payments. Government bond yields, which move inversely to prices, have plummeted around the world as central banks in many developed economies scooped up bonds in order to provide stimulus to their economies. These purchases have sparked a scramble for government debt, enabling many countries to flog bonds while cutting the interest rates they have to pay to lure investors.

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In itself a reasonable argumant re the history of spreads, but that does not make the conclusion alright, or logical.

In Case Of Recession, The Fed Might ‘Need’ To Cut Rates To Minus 2% (CNBC)

The U.S. Federal Reserve might need to cut interest rates to as low as negative 2%, far lower than levels other global central banks have tested, a former Fed economist said. That’s what would likely be needed to engineer a recovery if the U.S. economy were to fall into a recession in the next couple of years, Marvin Goodfriend, who was an economist and policy advisor at the Federal Reserve’s Bank of Richmond from 1993-2005, told CNBC’s “Squawk Box” on Thursday. Goodfriend, who is currently a professor of economics at Carnegie Mellon University, pointed to data on the eight recessions in the U.S. since 1960.

“In eight of those recessions, the Fed had to push the short rate 2.5 percentage points below the long term rate. Today, the 10-year rate in the U.S. is 1.5%,” he noted, saying that would indicate that during the next recession, the Fed would need to cut rates as low as minus 1% at a minimum. “In five of those recessions, the Fed had to push the federal funds rate 3.5 percentage points below the 10-year bond rate,” he said. “So if that happens this time around, we would have to push the federal funds rate to minus 2%.” That’s well below where any other central banks have ventured so far. Sweden’s central bank, an early adopter of negative rates, has set its benchmark at negative 0.5%.

The Bank of Japan’s rate was set at minus 0.1% earlier this year, while the ECB, which first moved its rates into negative territory in 2014, currently has a deposit rate of negative 0.4%. The Fed funds rate has remained in positive territory, with the U.S. central bank last increasing interest rates in December of 2015, its first hike since 2006. That raised the Fed’s target rate to a range of 0.25 to 0.5%. To be sure, Goodfriend didn’t expect the Fed would be headed there anytime soon, noting that he believed the central bank should actually raise rates before the end of the year.

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More more more.

Eurozone Core Inflation Fall Raises Prospect Of ECB Stimulus Measures (G.)

Speculation is growing that the European Central Bank could take action to stimulate the eurozone economy after official figures showed an easing in underlying inflation last month. Pressure on the ECB increased when the European commission’s statistical agency, Eurostat, published figures that showed core inflation in July was lower than in same month last year, despite aggressive action by the Frankfurt-based bank over the past 18 months. With concerns that the eurozone recovery was losing momentum, Eurostat said the headline rate of inflation remained unchanged at 0.2% in August. Core, or underlying inflation, which excludes energy, goods, alcohol and tobacco, fell from 0.9% in July to 0.8%.

Separate Eurostat data showed that eurozone unemployment was unchanged at 10.1% in July, the latest month for which figures are available for all 19 countries that use the euro. The jobless rate in the eurozone has fallen from 10.8% over the past year, but financial markets had been expecting the reduction to continue to 10% last month. The ECB has been using negative interest rates and quantitative easing in an attempt to increase activity and push inflation back towards its target of just below 2%. Analysts said the inflation and unemployment figures would be discussed when the ECB meets to discuss policy options next week.

Stephen Brown of consultancy Capital Economics said: “The unchanged headline inflation rate in August highlights the fact that price pressures in the eurozone remain weak and boosts the case for more monetary easing from the ECB. “With [the] survey data also pointing to a marked slowdown in growth ahead, there is a strong case for the ECB to announce further policy easing. This could come as soon as the bank’s meeting next week.”

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Abe and Kuroda won’t even take it serious.

Bank of Japan Has an $84 Billion Yen Gap in Balance Sheet (BBG)

There’s an 8.7 trillion yen ($84 billion) gap between the value of government bond holdings on the Bank of Japan’s balance sheet and their face value. While not an immediate problem because the BOJ’s income can cover the losses, the widening gap raises questions about the sustainability of the central bank’s bond purchases, which Governor Haruhiko Kuroda has said could be expanded. The costs of the central bank’s record stimulus are mounting, while its chief goal – spurring inflation to 2% – appears as far away as it was when Kuroda took the helm in 2013. The BOJ is in the midst of reviewing its policy before a board meeting later this month, but the governor has said there will be no scaling back of his monetary program.

“These numbers show the distortions of the BOJ’s current policies,” said Sayuri Kawamura, a senior economist at the Japan Research Institute in Tokyo. “The annual amortization losses are going to increase and consume the BOJ’s profits, and the risk is increasing that the bank’s financial stability will be shaken.” The bonds the BOJ owns are worth almost 326.7 trillion yen when taken at face value, but were marked at almost 335.4 trillion yen on the balance sheet in August. That gap is 42% bigger than before the introduction of negative rates in January, according to an analysis of the balance sheet and list of the bonds the central bank owns. Tadaaki Kumagai, a spokesman for the central bank, said “the BOJ releases half-yearly and yearly accounts,” while declining to comment further.

The gap exists because, unlike the Federal Reserve, the BOJ counts its bond holdings at the purchase price, minus amortization costs. This number is diverging more from the face value because the central bank’s purchases and negative rate policy are pushing up prices. The face value is what the BOJ will receive when the bonds mature. At the end of the 2015 fiscal year on March 31, the gap between the two valuations was 6.4 trillion yen and the BOJ wrote down 874 billion yen, according to documents seen by Bloomberg. That was covered by the 1.29 trillion yen in coupon income the bank received that year, a situation that may not continue indefinitely.

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Groupthink is all they have.

Admitting Ignorance Is Better Than Groupthink For Central Bankers (BBG)

If the Fed’s objective last week was to put its September meeting back into play as the potential venue for a rate increase, it can claim a partial success. Prices in the futures market show traders now see about a 34% chance of a hike on Sept. 21, up from 22% two weeks ago. But you still have to go out to December before the likelihood rises above 50%. There’s a very good reason for that market skepticism. Raising rates at a time when inflation is dormant and miles away from the central bank’s 2% target seems somewhat perverse, especially when the forecast is for prices to remain subdued for many months to come:

The Jackson Hole Symposium (and let us note in passing what a great word symposium is, adding gravitas to what would otherwise be a mere conference) was an opportunity, as the event title said, to consider “Designing Resilient Monetary Policy Frameworks for the Future.” Instead, Fischer’s comment suggests it’s business as usual at the Federal Open Market Committee, with no room at present for such innovations as changing the inflation goal or targeting nominal GDP. That’s a shame. There’s a consensus that monetary policy is becoming impotent, and that governments need to step in with fiscal stimulus. But until central banks admit that their firepower is waning, politicians can continue to evade responsibility. “You can’t expect us to do the whole job,”

Christopher Sims, a Nobel Prize-winning economist from Princeton University, said at Jackson Hole last week. “Fiscal expansion can replace ineffective monetary policy at the zero lower bound. So long as the legislature has no clue of its role in these problems, nothing is going to get done. Of course, convincing them that they have a role and there is something they should be doing, especially in the U.S., may be a major task.” Finance – particularly in an era of fractional reserve banking – is essentially a confidence trick. Depositors have to be confident their money will be there when they try to withdraw it. Businesses have to be confident that the economy is on a sound footing otherwise they won’t invest and hire. Central bankers aren’t just economists and policy makers; they’re also salespeople, selling a story.

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China is a giant debt bubble.

An 809% Debt Ratio And Investors Are Serene? It Must Be China (BBG)

Prudence dictates that a compulsive shopper who runs up a hazardous amount of debt should think about cutting the credit card in half and staying home for a while. Try telling that to China’s acquisition-hungry companies.Two prime examples were on show this week when China Evergrande Group, one of the nation’s biggest developers, and Fosun International, an expanding Shanghai-based conglomerate, reported first-half earnings. The results show just how hard it is to kick the buying habit in an environment where compliant lenders stand ready to advance seemingly unlimited sums. Total borrowings at junk-rated Evergrande jumped by 28% from the end of December to 381 billion yuan ($57 billion).

That pushed the Guangzhou-based company’s ratio of net debt to shareholders’ equity to 142%, above the average 108% for China’s overleveraged property developers, according to data compiled by Bloomberg. Count Evergrande’s perpetual bonds as debt rather than equity and even that ratio starts to look benign. The total debt to common equity ratio rose to 809% at the end of June, from 582% six months earlier. The developer added about 40 billion yuan more perpetual notes during the period. So, time to rein things in somewhat?

Not a bit of it. Evergrande wants to acquire brokerage and trust companies as well as smaller rivals, Chief Executive Officer Xia Haijun told reporters in Hong Kong Tuesday. That would be on top of more than $5 billion of purchases so far this year, including building a stake in larger developer China Vanke and acquiring a chunk of Shenyang-based Shengjing Bank. First-half profit, meanwhile, fell 23% excluding property revaluations and foreign-exchange losses.The debt buildup wouldn’t be so striking if Evergrande were acquiring cash-generating assets that can help pay down borrowings. If anything, things seem to be moving in the opposite direction.

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Good. Kill that too.

Austria Says Will Start ‘Conflict’ In EU About Canada Trade Deal (R.)

Austria is ready to confront other European Union members states over its opposition to a free trade deal with Canada, Chancellor Christian Kern said, because it sees it containing many of the same problems as one being negotiated with the United States. “This will be difficult, this will be the next conflict in the EU that Austria will trigger… We must focus on making sure… we don’t shift the power balance in favor of global enterprises,” Kern told broadcaster ORF late on Wednesday. Austria opposes a proposed free trade deal with the United States, and Kern said the deal with Canada, called the Comprehensive Economic and Trade Agreement (CETA), bore many of the same problems.

Ministers from Germany and France have also called for a halt in negotitations on the EU-U.S. deal, the Transatlantic Trade and Investment Partnership (TTIP). “We will have to see where the weaknesses of (CETA) are. Many are the same as with TTIP,” Kern, a social-democrat, said, without elaborating. Kern is expected to address issues surrounding TTIP at a news conference on Friday. There are widespread concerns in Austria that the TTIP could compromise food safety standards. Kern also opposes the idea that the agreement could allow companies to challenge government policies if they feel regulations put them at a disadvantage.

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There are multiple truths in this case. In the end, though, this is about Brussels seeking to supersede member states’ sovereign law. For that, the constitutions of 27 nations should be held to the light. I would venture that what Brussels does here, and in many other fields, violates a fair number of these constitutions. And that is not legal no matter what their respective governments say or do. That’s an issue for their judicial systems. There’s a reason why the political and judicial systems have been made separate entities.

Apple Travesty Is A Reminder Why Britain Must Leave The Lawless EU (AEP)

Europe’s Competition Directorate commands the shock troops of the EU power structure. Ensconced in its fortress at Place Madou, it can dispatch swat teams on corporate dawn raids across Europe without a search warrant. It operates outside the normal judicial control that we take for granted in a developed democracy. The US Justice Department could never dream of acting in such a fashion. Known as ‘DG Comp’, it acts as judge, jury, and executioner, and can in effect impose fines large enough to constitute criminal sanctions, but without the due process protection of criminal law. It misused evidence so badly in pursuit of the US chipmaker Intel that the company alleged a violation of human rights. Apple is just the latest of the great US digital companies to face this Star Chamber.

It has vowed to appeal the monster €13bn fine handed down from Brussels this week for violation of EU state aid rules, but the only recourse is the European Court of Justice. This is usually a forlorn ritual. The ECJ is a political body, the enforcer of the EU’s teleological doctrines. It ratifies executive power. We can mostly agree that Apple, Google, Starbucks, and others have gamed the international system, finding legal loopholes to whittle down their tax liabilities and enrich shareholders at the expense of society. It is such moral conduct that has driven wealth inequality to alarming levels, and provoked a potent backlash against globalisation. But the ‘Double Irish’ or the ‘Dutch Sandwich’ and other such tax avoidance schemes are being phased out systematically by the G20 and by a series of tightening rules from the OECD.

The global machinery of “profit shifting” will face a new regime by 2018. We can agree too that Apple’s cosy EU arrangements should never have been permitted. It paid the standard 12.5pc corporate tax on its Irish earnings – and is the country biggest taxpayers – but the Commission alleges that its effective rate of tax on broader earnings in 2014 was 0.005pc, achieved by shuffling profits into a special ‘stateless company’ with its headquarters in Ireland. “The profits did not have any factual or economic justification. The “head office” had no employees, no premises and no real activities,” said Margrethe Vestager, the EU competition chief.

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Someone will find a way to blame this on Brexit.

UK Defined Benefit Pension Fund Deficit Grows By £100 Billion In A Month (G.)

The combined deficit of the UK’s 6,000 defined benefit pension funds has grown by £100bn in the last month, bringing the total deficit to £710bn, according to a new report. The research, by the accountants PricewaterhouseCooper, found that the pension schemes have total assets of £1,450bn but are liable to pay out about £2,160bn in contractual promises to existing and former workers. Pension deficits have worsened since the EU referendum because companies use the interest rate on gilts, otherwise known as the yield, as the main tool in estimating how much they will have to pay out in pensions in the future. The lower the gilt yield, the more that companies have to set aside to meet their future costs.

The scale of the problems facing companies offering final salary pension schemes was underlined on Wednesday by the Yorkshire-based manufacturer Carclo, which issued a statement to the stock exchange to say that the recent increase in its pension deficit meant that a dividend payout to shareholders announced in June and due to be paid in October could not now go ahead. Carclo, which is based near Leeds and employs about 1,300 people making plastics and LED products, said in its statement: “If the corporate bond yield remains at its current low level then this will result in a significant increase in the group’s pension deficit.” It said this would have the effect of “extinguishing the company’s available distributable reserves”. The announcement immediately wiped almost 15% off the company’s share price.

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How to kill a city, Chapter 826.

London’s Elite ‘Pushed Out Of Exclusive Postcodes By Super Rich’ (G.)

London’s traditional elite, such as lawyers, architects and academics, are being pushed out of their enclaves in Mayfair, Chelsea and Hampstead by an influx of global super rich investors, causing a chain reaction of gentrification across the capital, according to research by the London School of Economics. An influx of extremely wealthy overseas buyers is leading the old elite to sell up and move from London’s most exclusive postcodes and buy in areas they previously considered undesirable, said Dr Luna Glucksberg, of the LSE’s International Inequalities Institute. This displacement of old money and affluent middle class professionals is in turn pricing neighbourhoods in south and east London out of the reach of average Londoners and threatening to push those on low incomes to the margins of the city and beyond, she added.

“The changes happening at the top end of the market are real, and although they do not affect large numbers of people directly, the ripple effects they generate do resonate across London,” Glucksberg said. “In terms of the impact on London as a whole, this represents a very different kind of ‘trickle down’ effect from what politicians across the spectrum have long argued would be the benefit of the ‘super rich moving into our city’,” said Glucksberg. “Affordability for average Londoners in the rest of the city is likely to become an even more difficult issue to solve.” The trend was contributing to dramatic house price rises in areas ranging from Battersea and Clapham to Acton, as the old elite bought property there with the significant profits – usually in the millions – made from selling up to the global uber wealthy, the researcher found.

“The study shows that the wealthy individuals and families that live in London’s most exclusive areas no longer feel able to compete at the top end of the capital’s property market,” said the researcher. “Instead they feel like they are being pushed out of elite neighbourhoods. For the first time, this elite group are buying flats for their children in areas they never would have previously considered.”

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We need the death penalty for poachers and buyers, the entire chain, not just in Africa but everywhere, also in China and Japan. If they don’t comply, no more trade and full isolation.

A Third Of Africa’s Elephants Were Wiped Out In Just 7 Years (CNN)

Scanning Botswana’s remote Linyanti swamp from the low flying chopper, elephant ecologist Mike Chase can’t hide the anxiety and dread as he sees what he has seen too many times before. “I don’t think anybody in the world has seen the number of dead elephants that I’ve seen over the last two years,” he says. From above, we spot an elephant lying on its side in the cracked river mud. From a distance it could be mistaken for a resting animal. But the acrid stench of death hits us before we even land. Up close, it is a horror. He was a magnificent bull right in his prime, 45 to 50 years old. To get at his prized ivory tusks, poachers hacked off his face. Slaughtered for their ivory, the elephants are left to rot, their carcasses dotting the dry riverbed; in just two days, we counted the remains of more than 20 elephants in a small area.

Visitors and managers at the tourist camps here are frequently alarmed by the sound of gunshots nearby. And Chase worries that if Botswana can’t protect its elephants, there’s little hope for the species as a whole. Chase, the founder of Elephants Without Borders (EWB), is the lead scientist of the Great Elephant Census, (GEC) an ambitious project to count all of Africa’s savannah elephants – from the air. Before the GEC, total elephant numbers were largely guesswork. But over the past two years, 90 scientists and 286 crew have taken to the air above 18 African countries, flying the equivalent of the distance to the moon – and a quarter of the way back – in almost 10,000 hours.

Prior to European colonization, scientists believe that Africa may have held as many as 20 million elephants; by 1979 only 1.3 million remained – and the census reveals that things have gotten far worse. According to the GEC, released Thursday in the open-access journal PeerJ, Africa’s savannah elephant population has been devastated, with just 352,271 animals in the countries surveyed – far lower than previous estimates. Three countries with significant elephant populations were not included in the study. Namibia did not release figures to the GEC, and surveys in South Sudan and the Central African Republic were postponed due to armed conflict. In seven years between 2007 and 2014, numbers plummeted by at least 30%, or 144,000 elephants.

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