Three vaccine 'science' fraudsters who should probably be (or already have been) in jail: Poul Thorsen, Paul Offit and Henry Miller
The Western public doesn’t know it, but Washington and its European vassals are convincing Russia that they are preparing to attack. Eric Zuesse reports on a German newspaper leak of a Bundeswehr decision to declare Russia to be an enemy nation of Germany.
According to a report issued on June 6th in German Economic News (Deutsche Wirtschafts Nachrichten, or DWN), the German government is preparing to go to war against Russia, and has in draft-form a Bundeswehr report declaring Russia to be an enemy nation. DWN says: “The Russian secret services have apparently thoroughly studied the paper.
In advance of the paper’s publication, a harsh note of protest has been sent to Berlin: The head of the Foreign Affairs Committee of the Russian State Duma, Alexei Puschkow, has posted the Twitter message: ‘The decision of the German government declaring Russia to be an enemy shows Merkel’s subservience to the Obama administration.’”
This is the interpretation that some Russian politicians themselves have put on the NATO military bases that Washington is establishing on Russia’s borders.
Washington might intend the military buildup as pressure on President Putin to reduce Russian opposition to Washington’s unilateralism. However, it reminds some outspoken Russians such as Vladimir Zhirinovsky of Hitler’s troops on Russia’s border in 1941.
Zhirinovsky is the founder and leader of Russia’s Liberal Democratic Party and a vice chairman of the Russian parliament. In a confrontation with the editor of a German newspaper, Zhirinovsky tells him that German troops again on Russia’s border will provoke a preventive strike after which nothing will remain of German and NATO troops. “The more NATO soldiers in your territory, the faster you are going to die. To the last man. Remove NATO from your territory!”
Russian Foreign Minister Sergey Lavrov has expressed his frustration with Washington’s reliance on force and coercion instead of diplomacy. It is reckless for Washington to convince Russia that diplomacy is a dead end without promise. When the Russians reach that conclusion, force will confront force.
Indeed Zhirinovsky has already reached that point and perhaps Vladimir Putin also. As I reported, Putin recently dressed down Western presstitutes for their role in fomenting nuclear war.
Putin has made it clear that Russia will not accept US missile bases in Poland and Romania. He has informed Washington and the imbecilic Polish and Romanian governments. However, as Putin observed, “they don’t hear.”
The inability to hear means that Washington’s arrogance has made Washington too stupid to take seriously Putin’s warning. If Washington persists, it will provoke the preventive strike that Zhirinovsky told the German editor the Merkel regime was inviting.
Americans need to wake up to the dangerous situation that Washington has created, but I doubt they will. Most wars happen without the public’s knowledge until they happen. The main function of the American left-wing is to serve as a bogyman with which to scare conservatives about the country’s loss of morals, and the main function of conservatives is to create fear and hysteria about immigrants, Muslims, and Russians. There is no sign that Congress is aware of approaching Armageddon, and the media consists of propaganda.
I and a few others try to alert people to the real threats that they face, but our voices are not loud enough. Not even Vladimir Putin’s voice is loud enough. It looks like the West won’t hear until “there remains nothing at all of the German and NATO troops,” and of Poland and Romania and the rest of us.
It was about six months ago when global stock markets were crashing, that China tightened its control on local media, and ordered the local press and news outlets to stick to "positive reporting" or else "risk the stability of the country." As we reported back in February "China is now openly declaring war on anyone who dares to even suggest that not all may be well in China. A separate commentary by Xinhua yesterday said that controlling public opinion was essential for a a ruling party: “With one hand we grab the guns; with the other we grab the pens,” it said. “Mobilising public opinion is the great tradition of our party.”In other words, China is worried that popular anger and negative sentiment is starting to stir especially after the recent economic troubles, and that those who dare to promote an objective version of reality will likely be promptly quieted."
Since then while superficially the economy may have improved on the back of nearly $2 trillion in freshly-created new loans, it appears that reports of bad news have not stopped. As such, China has decided to come up with an even more draconian measure: ban original reporting altogether.
Chinese authority to shut down news-gathering sectors(breaking and investigative) of multiple portals. Confirmed. pic.twitter.com/wTE9J5VUgc
— Wei ZHOU (@cissy_chow) July 22, 2016
According to The Paper, major internet portals in China including Sina, Sohu, Netease and Ifeng.com have shut down some of their original reporting operations after receiving “harsh criticism” from country’s top industry regulator.
As Bloomberg adds, the Beijing branch of Cyberspace Administration of China has set deadlines for portals for rectification. It also reports that an unidentified head of Beijing branch cited portals for violating China’s internet regulations by carrying plenty of news content obtained through original reporting.
What happens to those who dare to do what news organizations are expected to by definition, i.e., original reporting? Nothing good: portals also to face other penalties including fines and warnings.
Full source from China's The Paper, google translated:
Recently, the Beijing Information Office of the territorial network Sina, Sohu, Netease, Phoenix and other sites provide a large number of illegal behavior in the presence of Internet News Information Service raised harsh criticism, ordered the site to be a deadline for correction.
Currently, Sina has been shutting down "Geek News" section, are cleaning "Sina studio" section of the offending content; Sohu has been shutting down "News party", "rad", "click Today" and other columns;
Netease been shut down. " echo "," roadmap "and other columns, is cleaning" School of Journalism "section of the offending content; Phoenix has been shut down" serious report "section. All shut down, cleaning section including website pages, mobile clients, micro-channel public account other publishing platform.
Beijing letter network do the responsible person, said the channel was ordered to rectification column, a serious violation of the national "Provisions on the Administration of Internet News Information Services" provisions of Article XVI, were published a large number of self-editing of news and information, and serious violations , a very bad influence. Beijing Information Office in addition to ordering the territorial network related sites suspected of illegal channels to be rectification column, the law will give a warning and impose a fine of administrative penalties.
The next stage, the Beijing Municipal Information Office will continue to increase network administration and law enforcement, standardize territorial website news and information service activities, maintain good order in the Internet industry. Welcome to the majority of users of the Internet illegal and unhealthy information supervision and reporting, and jointly create a good ecological network.
What happens next? Sooner rather than later, China prohibits all forms of "original reporting", at
which point the only allowed form of "news" will be whatever the
politburo greenlights... very much in the same way that the DNC would preapprove articles by Washington Post or segments by MSNBC or CNN.
With the yen strengthening ~12% against the US dollar and the Nikkei down ~10% YTD, it seems Haruhiko “Peter Pan” Kuroda is having a difficult time working his magic in favor of Abenomics. As the WSJ reports, Kuroda is under increasing pressure from the Prime Minister’s advisers to coordinate efforts to jumpstart the economy. Earlier this month, we first reported of the secretive meeting between Kuroda and Bernanke, where the former Fed Chairman urged Japan to unleash helicopter money.
With what little credibility it still has, the Bank of Japan is set to meet this week and likely agree on the size of yet another stimulus package for the economy. Prime Minister Abe’s main economic advisor Etsuro Honda recently detailed in an interview that the BOJ should increase its Qualitative and Quantitative Monetary Easing (QQE) program from ¥80 trillion to ¥90 trillion.
In addition, there has been growing speculation regarding coordinated fiscal and monetary stimulus. The fiscal stimulus efforts are not expected to be unveiled until August, according to the WSJ. Expectations point to a “multiyear program valued at ¥20 trillion ($188 billion), including direct spending, government loans and public-private financing.”
Perhaps more interesting, this time, Kuroda may have a difficult time convincing the 8 remaining members of the monetary board. As the Journal notes, “other BOJ officials are signaling a reluctance to act, underscoring questions about whether the central bank has reached the limits of its powers to revive Japan’s economy. They note that monetary policy is already extremely accommodative, with bond yields and interest rates at or near record lows, and express doubts that additional easing would make fiscal stimulus much more effective, according to people familiar with the central bank’s thinking.”
As core metrics and corporate expectations of inflation plummet, Kuroda’s promise to do “whatever it takes” to reach 2% inflation seems to be under significant threat. Doing nothing now would “amount to an admission that the BOJ’s monetary policy has reached its limits—it wants to move, but it can’t,” said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance.
Not unlike the Fed, it is clear that the BOJ is trapped in its own end game. As Kyle Bass recently told CNBC, "The textbooks aren't working for the academics ... I fear they're going to have to go into some sort of jubilee where the central bank just forgives the debt that they own...I don't know what happens to the yield curve then. The unconventional policies aren't working, so they're going to have to go to unconventional, unconventional policies next. I don't know where that takes them.”
The answer appears to be a one-way ticket to Neverland, where we can all believe in our hero, Peter Pan.
Update 2: The suspect behind an explosion that injured 12 people in Bavaria was a 27-year-old asylum seeker from Syria, Bavarian Interior Minister Joachim Herrmann says early Monday. The suspect, who arrived in Germany two years ago, died in the blast. He had been refused asylum, Bavarian authorities told a press conference. His application was rejected a year ago but the man was allowed to stay in Germany temporarily, due to ongoing hostilities in Syria.
Police say they do not yet known if the attacker had any radical Islamist background. The investigations is currently focused on attacker’s communications.
* * *
Update 1: "A man, according to our current knowledge the perpetrator, died" in the blast they said in the short statement. Further details weren't immediately available and they did not pick up their telephone lines.
* * *
As we detailed earlier, capping an awful week for Germany (and France), an explosion in the city of Ansbach, originally reported as a gas leak, has been confirmed as being caused by "an explosive device."
As The Telegraph reports, one person is dead (believed to be the bomber) and at least 11 more injured as the explosion occured shortly after 10pm outside a wine bar near the entrance to an open-air music festival, where there were some 2,500 people in attendance. The festival was shut down as a precaution.
With Germany already on high alert following the events in Reutlingen and Munich.
On Sunday, 21-year-old asylum-seeker from Syria killed a woman, reported to be pregnant, with a meat cleaver in the southern German town of Reutlingen.
Only two days earlier an 18-year-old man killed nine people in a shooting near a shopping centre in Munich, before turning the gun on himself.
One person has been killed and another 11 injured in an explosion at a cafe in the Bavarian city of Ansbach. (via The Telegraph)
A spokesman for the Bavarian Interior Ministry said the explosion was not an accident and appears to have been intentional.
Bavarian Interior Minister Joachim Herrmann was en route to the site, the spokesman said.
The blast killed one person and injured 11 others in the Bavarian city, police confirmed late on Sunday. It said the cause of the blast was unknown.
The blast a at Eugene's Wine Bar triggered a large-scale police operation involving police, rescue workers and one helicopter, Sky News said.
The blast was initially reported to have been caused by a gas leak.
News agency Dpa reports that an open-air concert nearby with some 2,500 in attendance was shut down as a precaution after the explosion.
Additionally, AP reports that
Police in the southern German city of Ansbach say the man was killed when an explosive device he was believed to be carrying went off near an open-air music festival,
The only question left now is how long before an otherwise patient German population react after three apparent mass attacks in one week?
For years now, residents of Sonora, California have been hearing a window-shaking loud and so far officially unexplained BOOM! that always happens between 11 a.m. and 2 p.m. daily.
Inquisitr reports that the explanation floating around Sonora from a local geologist/teacher is that an Army Depot in Hawthorne, Nevada, all the way across the state and behind a mountain range which disposes of old munitions like bombs, might be what residents have been hearing.
But do they have so many old bombs to dispose of that they do it daily every single day even on weekends and holidays without fail for years? Why would Sonora, California of all locations near Hawthorne be the seemingly most affected city of all?
Besides, even people who work at the depot aren’t hearing the booms regularly (via ABC News):
Ken Thomas, a contracting officer for the Hawthorne Army Depot, told ABC News today that they do detonate munitions regularly at the depot when the munitions are past their shelf-life, but he is not convinced that it can be heard in Sonora.
“It doesn’t feel right that what we’re doing here would be heard 200 miles away when there’s a mountain range in between us,” Thomas said. “My office is 27 miles from where they detonate the old munitions, I only hear it here maybe one time a month, and just barely and it’s like ‘Was that a boom?'”
On top of that, not only are they clockwork, but these have been described as deep, low booms which can almost be felt by the people who live there. In fact, a friend who lives near Sonora said that sometimes they can actually see their windows warp during the booms.
So what is it? Lots of conspiracies are, of course, floating around including aliens (as per the usual).
But one in particular sounds a lot more plausible than an old weapons depot that’s a three-hour drive from Sonora: DUMBs.
Deep underground military bases.
We all know there’s an extensive network of them which has been significantly expanded since 9/11 and the creation of Homeland Security...
...and we’re all just supposed to put our fingers in our ears and go “la la la” and pretend like they don’t exist.
The tunneling project is a joint venture involving the National Security Agency, CIA, FBI, MiB, Homeland Security & a few other groups that are buried in the Congressional Intelligence Committees with some weird acronyms no one really understands. Much of the info on this comes from private citizens in the county, public officials, as well as Coast to Coast with George Noory & Art Bell. These shows have given incredibly good information on the topic for the last several months, beginning in late 2003…
According to the information available, there are several reasons for the project:
1) Homeland Security needs an system of rapid deployment in the South, free of traffic;
2) certain gov't agencies want an easy connection route with other gov't installations in the South;
3) there is a move on in the intelligence community to begin more efficient use of the underground rail system already in place at Lockheed in Marietta;
4) Paulding is a central location for the complete project that will eventually connect installations in Anniston, AL; Macon, GA; Lockheed in Marietta; Lookout Mtn, TN; Greenville-Spartanburg, SC; & Raleigh-Durham, NC;
5) the Yorkville area of Paulding has been designated as the prime location for these hubs to come together because of geological preference;
6) the addition of new Walmart facilities in NW GA give spur hubs & depots easy access to large areas that can be partitioned off for moving of very large equipment & large numbers of people in case of national emergency.
Kinda like the CIA kept pretending Area 51 didn’t exist for decades until it was finally, quietly admitted it in 2013.
Pokemon Going, Going Gone: Nintendo Crashing Most Since 2000 After Admitting "Limited Earnings Impact" From New Game
After the close Friday, Nintendo admitted that the earnings impact from the newly-released 'Pokemon Go' game would be limited (and that it has no plans to adjust its forecasts). This has sent Nintendo shares down over 16% today, following last Wednesday's 12% collapse.
Nintendo has given up half its panic-buying gains of last week...
Today's drop is the largest since March 2000...
The last time AOL (bought by Verizon in May 2015) was involved in a mega merger was January 2000, when AOL acquired Time Warner for $182 billion in what was the mega deal of the last tech bubble, creating a $350 billion behemoth... which nearly dragged down both companies a few years later. The timing could not have been more perfect as it marked the tech bubble top...
Will it happen again?
As Bloomberg reports, Verizon Communications will announce plans to buy Yahoo!’s core assets for about $4.8 billion on Monday, a move that would finally seal the fate of the iconic web pioneer after months of speculation and pressure from investors.
News of the takeover is expected to come before the market opens, said a person with direct knowledge of the situation who asked not to be identified because the information isn’t public. The deal includes Yahoo real estate assets, while some intellectual property is to be sold separately, the person said. Yahoo will be left with its stakes in Alibaba and Yahoo Japan, with a combined market value of about $40 billion.
With its core wireless business maturing, Verizon is expected to keep Yahoo mostly intact to compete with Alphabet’s Google and Facebook in digital ads by tapping into users on sites like Yahoo Finance. The takeover will double the size of Verizon’s digital advertising, placing it as a distant third behind Google and Facebook in the $187 billion market.
“The deal speaks to a clear strategy shift at Verizon,” Craig Moffett, an analyst with MoffettNathanson, said Sunday. “They are trying to monetize wireless in an entirely new way. Instead of charging customers for traffic, they are turning to charging advertisers for eyeballs.”
Desperately overpaying for already over-valued assets with market-wide valuations at record levels. What could go wrong?
Meet Donna Brazile - interim party chair after Debbie Wasserman Schultz (DWS) resignation over Wikileaks-email-leaked proof confirming months of accusations that she had put her thumb on the scales in favor of presumptive nominee Hillary Clinton...
The only problem is... a quick search of Wikileaks leaked DNC email database shows... Brazile is exactly the same as DWS - clearly demonstrating bias against the Sanders' camp...
And rejecting Sanders' efforts to battle the rigged super-delegate system as "another lunacy"...
So now, following Bernie's statement with regard DWS' resignation...
JUST IN: Bernie Sanders statement on the resignation of DWS: pic.twitter.com/QsZPYmie4f
— Kyle Griffin (@kylegriffin1) July 24, 2016
We suspect, Sanders' supporters will be screaming for more blood (and rightfully so) and the deeply-rigged nature of today's body politik spews to the surface once again.
— DCSportNut (@DCSportNut) January 24, 2016
Once again - ahead of the G-20 meetings - China's currency mysteriously abated its incessant plunge suggesting 'stability'. As Bloomberg notes, history shows that the Chinese currency usually strengthens ahead of major political or economic events, such as President Xi Jinping’s state visits to the U.S. and the Boao Forum.
The People’s Bank of China raised its daily reference rate for the yuan in each of the last three days, spurring speculation it is acting to limit losses in the currency.
Howeber, as Mark St.Cyr notes, lately there have been quite a few warning signs pertaining to China. Yet, concern seems anathema to not only the “markets,” but the media in general. However, I’m of the opinion that is all about to change. And that “change” is not years away, but rather, sooner (and much sooner at that) than later.
To use an analogy, I don’t think there’s a better one than the old “Bull in a china shop.” Sure there’s no broken dishes currently, but that’s because the bull has yet chosen an aisle to venture down. That is – if he chooses to use an aisle at all. And the “markets” are behaving as if the bull can somehow read or cares about the “you break it – you own it!” sign. This pretty much sums up the absurdity of complacency now taking place in the “markets.”
Last week China’s GDP figure was reported to be 6.7, beating consensus by just a tick. However, there was some concern that the print might come in (heaven forbid) below consensus. Why the need for any concern one might ask? After all, when your GDP figure is basically announced well in advance (e.g., 6.5 – 7.0) then hit with statistical precision, report, after report, after report as announced by the politburo of a communist controlled economy. Again, why sweat it? The so-called “smart crowd” weren’t.
Easy: Today, in a market so utterly adulterated and carry trade sensitive via central bank meddling, just a tick lower of the expected 6.6, as opposed to their tick higher beat, has ominous implications. For any movement lower is now suspect or viewed by the outside world as “just how bad is it if they reported lower?” An inline, or even just a tick higher beat is seen as “they must still have some control of their economy.” e.g., Phew…Buy, buy, buy!
Hence lies where the real concern is by those that understand the true, current economic conditions within China. For where that concern truly emanates from is all summed up in those 6 words. i.e, The assumption of “they must still have some control,” emphasis on “still” and “some.”
To understand the underlying concern of what is inferred by using “they must still have some control.” Let’s use another analogy, one of a speeding car with a driver either asleep, or impaired at the wheel. The driver represents chinese consumers. The car represents all those state funded enterprises of all sorts, fueled with artificially produced rocket fuel (i.e., loans.)
The politburo currently has no more control over that vehicle than that of guard rails. What’s also at issue are that these “guard rails” are not fully constructed. They’re being feverishly assembled, haphazardly and slightly ahead of the oncoming car which is careening from side to side as it goes along. So far they’ve managed to just stay ahead. But to say they have the situation under “control” is disingenuous at best.
To sum up the way this is being played across the main stream financial media, you’ll hear arguments to the likes of: “Currently the vehicle (e.g., chinese economy) is still traveling down the road. It appears things are going in the right direction with the politburo exerting control policies when needed which are showing to be quite effective.”
It is my stance the above example is a microcosm of just how most of the specious, egregious, or intentional lack of details is allowed to go unquestioned by the financial media at large. Precisely how one uses or views the word “control” (i.e., meeting or beating measurements) is where the rubber hits the road. e.g., Think Bill Clinton in his now immortal argument of what the definition of “is,” is.
So what are we to read into with this latest “beat” in GDP out of China? Are we to believe as is being dissected and disseminated by the so-called “smart crowd” that this “beat” is good news, showing that things in China are being managed efficiently and effectively, where the concerns of an impending crisis is “overblown?”
Or how about: “China is quite successfully demonstrating its ability of turning its economy from a manufacturing based economy, to a service economy. And this latest GDP print proves it.” Which by-the-way is near verbatim of what I’ve heard or read recently.
I am often amused at how this “switch” is reported on, as if it were remotely true. Need an example? Fair enough: Then why is China’s continuing (and sometimes panicked) credit expansion still directed into ever the more construction (and all its aggregates) when “consumption” can’t even begin to consume what’s already built? And no, that’s not a play on words.
Let me express it this way using just a little common sense and thought-through, as opposed to the “in-depth” analysis delivered by most of the main stream outlets that I’ve come across. Ready?
It took decades for the U.S. to show measurable signs that its service sector was in any way replacing its manufacturing based economy. And in many ways that “replacement” has not been for the better (see Detroit, Allentown, etc., etc.) So what we’re now supposed to believe is – in less than a decade – both during and after one of the greatest financial crisis and economic malaise of history – China has just “flipped a switch” and boom they’re now “Service Sector R Us?”
I’ll just add one more point: The same people who do hold that view, also hold the view that China doesn’t have a dept problem. Don’t take my word for it. Just listen to any current Institute president or “senior fellow” of some think tank.
I bring this all up for ne reason: Few believe there is a reason for concern that China “might” do something which may upset the current economy as it now stands. I am not one of those. I’m of the opinion it’s “will” and soon.
I’m also of the viewpoint (and right now I know its controversial, and I may be well alone, but so-be-it) that the 6.7 GDP print was only to allow a little more wiggle room in the timing as for China to venture down a road of monetary policy that will rattle all other economies to their very core. I also believe some (“some” meaning developed market economies) will be shaken so severely they might monetarily implode all together.
Again, I’m not talking about emerging markets – I’m talking about the developed. Precisely which ones are up for grabs. But none will walk away unscathed. Here’s some of my reasoning for concern…
One of the things you won’t see in the main stream outlets is the all out flooding for credit expansion happening within China. Now some might say “Well that’s typical, nothing to see there, they’ve been doing that since the beginning.” Well, that’s yes, and no. Sure, they goosed the system in unison with every other developed economy during the go-go years. What they haven’t done is something of this size (which by all measures is gargantuan) when just previously in May they all but shut the spigots off.
To try and give that some context think of it this way: Imagine the Fed. coming out after the May FOMC with a 1.5% rate hike, then in July, announcing it was implementing a negative rate. (forget the global impact for comparison, just think about it from a domestic view) Would a move such as that give businesses or anyone else for that matter confidence in the controlling leaders? Yet, that’s just about what China did. And most are unaware of it even transpiring.
Think about it: In just one month (yes, that’s 30 days) new credit exceeded the total 2015 GDP of Chile, Ireland, or Vietnam. And all they felt comfortable reporting was 1 lousy tick above the “hit never miss” figure? (insert lousy T-shirt joke here) Again, reread that point. That was in a month!
Oh, and by the way, if you thought May was showing restraint and control – then maybe I shouldn’t mention April. Yep, nothing to see here folks – please move along.
It is my belief that China has already lost control and is desperately waiting for the right circumstance (much like the American version of “never let a crisis go to waste”) as to implement some form of game changing monetary upheaval that helps set the stage for a more China-centric platform, as opposed to them needing to react to both Fed. policy movements or ECB for that matter. And to my thinking, in many ways, those circumstances are piling up on a silver platter.
And to be clear: I believe China grabs that platter – and soon. And by “soon” I mean just that: very. Possibly before year-end
I’m also of the opinion China is already on that brink or dilemma for that point-of-no-return, first mover decision, as to initiate those controls and policies they believe must be implemented. For if not they’ll be left to deal (if they can at all) with the whims and consequences of all the other central banks. I believe that is an absolute non-starter for China, particularly in this current economic, and political environment.
No matter what one thinks about current Fed. policy, just the very fact that the Fed. “could” raise rates is causing huge capital outflow headaches for China. It’s as if China is being told and expected to wait patiently under the sword of Damocles while the Fed. ponders what policy move it should embark upon next.
And if indeed the Fed. were to actually raise? (I know don’t laugh but you have to access the possibility no matter) The politburo in China may be left helpless to stop the outflows unless they come down with a complete and unforgiving hammer.
However, too this point, China can’t make that kind of political and monetary move in anything resembling “normal” times. (i.e., “normal” being a relative term.) It would be seen as too heavy-handed (or communistic) now that they’ve supposedly become more sympathetic to playing by western rules. (e.g., inclusion into the SDR etc.) But the necessary fruit needed to upset that apple-cart (i.e., to their first mover advantage) is just sitting there on that silver platter adorned, hand delivered, again, and again by those very economies that believe “they need us, as much as we need them.”
To which I’ll say – au contraire.
China has been aligning, as well as solidifying its economy and its ideology (e.g., communist, dictatorial, or anti $ hegemony) with other like-minded players. Russia is just one example. Now with the advent of Brexit, who knows who else. In the advent of a sudden economic collapse one thing is certain: China can, and will, control any and all civil unrest. So too will Russia. The West? It’s an open question. And there lies the rub. Let me explain…
Why would China or any other communist/dictatorially led nation just sit there knowing full well that civil unrest, money outflows, and a whole lot more are inevitable because of economic dictates emanating from the West? (e.g. central bankers) Again, and I can’t make this point enough: All while they, in-turn, do everything they are telling China not to do themselves? i.e., Implement excessive central bank intervention buying up stocks, bonds, and more. All while funding those purchases by devaluing their own currencies ipso facto by hitting the “print” button over, and over, and over again, as they simultaneously warn China of devaluing their Yuan will be seen as “manipulation” calling for some kind of expressed condemnation, if not out right sanctions.
Think through just this one hypothetical: Do you think for a moment China is going to nonchalantly wait till the Fed. decides that it will or won’t raise, then deal with its aftermath? Hint: Not a chance on Earth. And in-particularly – not in this current political environment. And those that will write this type of argument off as some “tin foiled hat” type of assumption, in my view, either haven’t a clue, or aren’t paying attention. Period.
What China needs (and desperately wants) is to devalue the Yuan ever more. Yet, they can’t do that if there is any chance (as remote as it may be) that the Fed. may raise interest rates. The outflows would be exponential compared to today. However, as I’ve alluded to – that platter sits there just waiting to be tossed. And that “bull” is still within the store. If China devalues, and forcefully at that, the resulting mayhem ties the Fed’s hands from ever raising indefinitely. And there’s more…
Currently this supposed “bull” market in the U.S. has now been pushed to heights never before seen in human history. China’s? Not so much.
We also know China is sitting on massive stockpiles of goods from commodities to further finished. Add to this both the current political ramifications such as the recent decision in the Hague with a denouncement of China claims in the South China Sea. Along with a current U.S. election cycle rhetoric where one of the main topics is curtailing China both in trade, as well as militarily. How do you think this is all being viewed by not only the politburo in China, but by the populace at large? Hint: Not well.
As of this writing anti-U.S. protesters are smashing iPhones® in front of a KFC™ and calling for boycotts in China. This is in direct retaliation of the South China Sea decision. It is also exactly the type of “fruit” that makes that “platter” ever the more tempting. i.e., Why invent a scapegoat when your people are giving you one?
China has also been sending signals both overtly, as well as implicitly when it comes to how they will approach whether or not items will be sold regardless of how a manufacture believes in respect to whether it has a recognized brand, copyright protection, or not.
As I stated in an earlier article concerning China, here are a few points that should be raising alarm bells. To wit:
“China just announced some form of reprisal against Apple™ stating a copyright infringement on its phones therefore halting future sales. The reports have been mixed. Some say it isn’t true, some say it is. As of this writing I’m not quite sure myself. But what made this allegation stand out to me was the most recent public statements from none other than Alibaba™ founder Jack Ma when he stated “fakes are better than originals.”
That wasn’t all. He went on to make other assertions such as this. To wit:
“The problem is the fake products today are of better quality and better price than the real names,” he said during a speech on Tuesday at Alibaba’s headquarters in Hangzhou. “They are exactly the [same] factories, exactly the same raw materials but they do not use the names.”
“Why such a statement unless…you’re moving closer and closer to what China wants (or is demanding) you to accept. i.e., we make the stuff, start taking the credit and now openly state you’re going to take the money associated with it. Trade agreement or no trade agreement. Besides, agreements? We don’t need no stinkin agreements – we make the stuff! See my point?”
Millions of factory workers have been displaced in China over the last few years. Every developed economy via their central bank has been implementing some form of devaluation in one way or another. And you now have non other than the former chairman of the Fed. Ben Bernanke in the midst of all this flying over to Japan (China’s #1 trading nemesis) openly flaunting how maybe “helicopter money” styled policies might be the next best thing for Japan. How do you think that is being viewed in China?
The U.S. is currently playing a game a chicken in the contested waters of the South China Sea. N.A.T.O. is rattling sabres throughout Europe. The U.S. markets are at record heights. The ECB is buying up bonds levitating the values and solvency of its own manufacturers in Europe. Japan could at any moment embark on a “helicopter money” styled monetary policy making the ¥en ever the weaker helping their manufacturing.(Sure they’ve now openly stated this is not an option. Need I remind you of what they said about implementing N.I.R.P.?) South Korea is possibly embarking on their own further easing.
And what to all of this? China is to just sit there? With a stockpile of commodities, finished goods, stagnant factories, possible civil unrest directed at their own politburo? Are you starting to see the powder keg here? All while the West wags its finger and says “You better keep that Yuan in check!”
Thinking all this through just using my own prism of business experience there’s only one conclusion I would make: Use your first mover advantage – and dump everything. Your first loss – is your best loss. That rationale comes from my early career (the meat industry) where that’s still used because it’s true.
Yes, such a move may harm China, but it may hurt everyone else far more. And communist run countries can, and will, deal with their populace in ways and with calculations unfathomable to those in the West. i.e., Lenin’s famous quote when told of the millions that were dying under Mao’s regime and change, “To make an omelet, you must be willing to break some eggs.”
When one brings up the term “war” people immediately think “WW3” via some form of armed nuclear exchange. I believe that (although the warning signs are there) is where the mistake lies. People are assuming there’s only one way to fight a war today of global proportions. I’m not in that camp. I believe it will come via monetarily – not military. At least at first. For once it takes place all bets are off as to what happens next.
The obvious first mover advantage for China (and all its current allies) would be to use the rhetoric coming out of the current U.S. political arena, along with current, as well as proposed monetary policies via the Fed, ECB, and Japan. Add to that the proposition for the possibility of the Fed. tightening in this economic climate making it a magnet for outflows, all against the backdrop of a former Fed. chairman tries to convince their #1 trade nemesis to devalue and deploy monetary interventions of historic measures.
I would take all the above (and would find even more examples) and spin it all for populace consumption as “What else are we to do? Sit back while the world holds our trade, our currency, our waters, and our economy, even our workers hostage to their demands?!” Then I’d dump every and all possible goods flooding the markets, devalue the Yuan in one epic move. And let the chips fall where they may.
From a business perspective: it would be of the utmost stupidity to just sit back and wait to see how you competitors were going to position themselves when nearly every move they make helps solidify their advantages and leaves you only some form of reaction mode.
And to think in this current environment China is going to stay, or be held to, some form of “reaction mode only” is absolutely ludicrous. I know I wouldn’t. And I made my mark in business as a “turn around” expert. And I’m here to tell you, if my people came into the board room and laid out just some of the things I iterated earlier? I can say unequivocally what my first response would be: Do it – and now!
That “bull” I alluded to earlier in the china shop is this current “bull####” market. It is currently standing at the peak of absurdity with no volume, earnings, or any other fundamental reason. And its fragility is just the same as that of any fine piece of crystal or china. And all it will take to send everything crashing down in a frenzy of broken shards is when he gets spooked. But by then – it will be too late. It will be a first mover world advantage world only – reactionary will be as useless as the broken glass that befalls it. Central banks (let alone many government officials) are in no way prepared for what could take place if China decides “it’s time.”
And I believe they are weighing the precise time to move – not if.
As I conclude these following two phrases kept coming into my head. I end with them because together I believe they frame just how precarious the markets, and for that matter, the global economy sits at the doorstep of what China decides to do next. Especially as I stated previously: in this current political, as well as economic and monetary environment.
First to quote Hugh Hendry: “If China devalues by 20% the world is over!”
The other comes from the movie “Margin Call” when Jon Tuld (played by Jeremy Irons) states: “It’s not panicking if you’re first.”
Mix in “your first loss – is your best loss” and you have a situation that has the near certainty of changing the global macro world in ways never dreamed imaginable. Not in the future, but right now.
And no one seems to even notice – let alone care.
* * *
Of course, the 'stealth' devaluation has been ongoing for months, it's just not always directed against the US dollar...
"Mr. Trump is providing something new and something fresh," explains Malik Obama - President Obama's half brother - while wearing his resplendent red 'Make America Great Again' cap. Describing his “deep disappointment” in his brother Barack’s administration, The NY Post reports, has led him to recently switch allegiance to "the party of Lincoln."
As The New York Post reports, President Obama’s Kenyan half-brother wants to make America great again — so he’s voting for Donald Trump...
“I like Donald Trump because he speaks from the heart,” Malik Obama told The Post from his home in the rural village of Kogelo. “Make America Great Again is a great slogan. I would like to meet him.”
Obama, 58, a longtime Democrat, said his “deep disappointment” in his brother Barack’s administration has led him to recently switch allegiance to “the party of Lincoln.”
The last straw, he said, came earlier this month when FBI Director James Comey recommended not prosecuting Democratic presidential candidate Hillary Clinton over her use of a private e-mail servers while secretary of state.
“She should have known better as the custodian of classified information,” said Obama.
Obama plans to trek back to the US to vote for Trump in November. Obama used to live in Maryland, where he worked for many years as an accountant and is registered to vote there, public records show.
Malik Obama, the eldest, is the director of the Barack H. Obama Foundation, a controversial Virginia charity named for his father.
He says he started the charity in 2008 because he wanted to make a difference in the family’s hardscrabble village in Kenya.
But the charity came under fire when The Post revealed in 2011 that it was an off-the-books operation that hadn’t registered with the state of Virginia or, as it claimed, had tax-exempt status from the IRS.
Shortly after The Post report, the IRS gave its stamp of approval, leading to speculation that the president had intervened.
Lately, family ties seem to be frayed. Obama, who was best man at the president’s wedding, said he spoke to his brother a year ago and was miffed that he did nothing to help his own foray into politics when he ran for governor of the southwestern Kenyan county of Siaya in 2013.
Malik Obama lost the race, and spent $20,000 of his own money on the unsuccessful campaign.
“I don’t think politics is my thing,” he told The Post. “Honestly, I’ll be happy when my brother is out of office, and I will finally be out of the limelight and be able to live like a human being.”
Crude oil inventories in the U.S. have fallen 23.9 million barrels since the end of April, but, as Bloomberg notes, oil bulls counting on further declines are fighting history. Over the past five years refiners' crude demand has fallen an average of 1.2 million barrels a day from the peak in July to the low in October.
"The rough part will be once refineries start going into maintenance," said Rob Haworth, a senior investment strategist in Seattle at U.S. Bank Wealth Management. "We aren’t drawing down inventories very fast and the pressure on prices will increase."
But, as Alhambra Investment Partner's jeffrey Snider notes, the significance of crude and gasoline inventory (and price) changes is the difference in narratives and what is supporting them.
While there is a direct relationship between the steepness of contango in the oil futures curve and the amount of crude siphoned from the market to storage, it is not an immediate one. When crude prices originally collapsed starting in late 2014, twisting the WTI curve from backwardation to so far permanent contango (of varying degrees), it wasn’t until January 2015 that domestic inventories began their surge. And while oil prices rose through spring, flattening out again the futures curve and drastically reducing that contango, the spike in oil stocks didn’t actually end until almost the end of last April.
Given the “dollar’s” explicit seasonality, combined with the usual intra-year swings of crude itself, it isn’t surprising to find the process repeated almost exactly a year later. This time it happened in two separate events, the latter of which was a near replica of the start to 2015. The futures curve was pressed into deep contango after October 2015, and sure enough oil inventories spiked again in early January 2016. And like last year, though the futures curve would begin to flatten out again starting February 12, oil storage levels continued to build until the end of April.
In the latest weekly update from the US EIA, reported crude stocks have fallen again for the ninth consecutive week (and 10 out of the last 11). Last year, starting at the same week, inventories fell for eight straight weeks and 13 out of 15 until mid-August. The shift back toward contango in the WTI curve this year also hasn’t yet forced its way into crude inventories, and if last year’s conditions still apply, as it appears they do, then we shouldn’t expect that to occur until August or perhaps September (whatever natural crude seasonality).
Instead, it is gasoline inventories that are somewhat concerning at the moment. Gasoline stocks remain hugely elevated but in the past few weeks they have increased again perhaps “early” in comparison to the usual seasonal pattern. The summer “driving season” typically finds gasoline inventories falling from levels built up in the winter. This year compared to 2015 finds not only higher overall inventories but a possible suggestion of unseasonably high levels on top of it.
It is difficult to say whether there is any significance in the difference as analyzing seasonality in gasoline or crude is an inexact art, to put it mildly. At the very least, however, the continued high level of gasoline inventory in potentially significant seasonal deviation suggests the very real possibility that (economic) demand remains unusually soft over and above the “rising dollar’s” already soft demand.
The imbalance may correct itself over the coming weeks, or it may continue to suggest more sluggishness where there isn’t supposed to be any. While waiting on crude oil inventory to start reflecting contango in the WTI curve, this might be the only current fundamental element to weigh on crude prices as the futures curve continues to sink.
The front month contract rolled forward to September 2016 as August came off the board, so there is some calendar roll to factor in the chart above that can be visually misleading. In other words, the drop in the curve isn’t as sharp in the past two days as it might appear. But it is still falling with more action at the front, and the steepening since June 8 is still increasing.
The significance of crude and gasoline is the difference in narratives and what is supporting them. Stock prices at record highs, or near them, is likely being driven by renewed hope for monetary policy wherever it may strike, all the while forgetting how patently ineffective past monetary policy has been. The energy sector and the renewed drop in the futures curve (the whole curve, though more so at the front) is remembering the consequences of monetary policy that doesn’t work while at the same time finding still little evidence that anything has changed (and some evidence that if something has changed it is only further in the “wrong” direction). Stocks once more trading, though much less enthusiastically, on what “should be”; energy trading on what actually is. All that is also a replay of last year, specifically last July.
With the S&P500's relentless surge, once which even Goldman is no longer able to contain its amazement at what it has dubbed an unprecedented multiple expansion (the other two times that saw a comparable increase in forward multiples ended with the Black Monday crash of 1987 and the 2000 dot com crash, respectively), it appears as if nothing matters: fundamentals, technicals, geopolitics, or frankly any newsflow aside from what central banks may (or may not) do in the near future. Still, as Deutsche Bank reminds us, one key risk-event is coming up in the form of the European Banking Authority’s stress test results that will be released on July 29 which "present another near-term risk to markets."
As Italy's Il Sole 24 reported earlier today, Monte dei Paschi capital is most “at risk” in the stress tests, citing preliminary indications of tests that will be released on July 29. Perhaps in an attempt to difuse fears of upcoming bank failures, the paper reported that the other 4 Italian banks - Intesa, Banco Popolare, UBI, UniCredit - "show resilient capital level under stressed scenario."
It's a different issue entirely whether markets will believe the story, especially since over the past month, there has been a focus on Italian banks as DB's Dominic Konstam puts it.
But while we are confident that any European stress test will be a joke (as they have been in the past, some riotously so) inquiring minds wonder who is most at risk... just in case the ECB decides that it is finally time for some "contagion." DB conveniently answers:
As of the end of March 2016, international exposure to the Italian banking sector was $90 billion, according to BIS data. This amount represents a reduction from $120 billion at the end of 2014 and is drastically lower compared to the $300 billion of total exposure in 2008. By country, the amount of exposure to Italian banks owned by the US is just 20%, or $18 billion. France, Germany and Spain own another 60% of that risk, totaling $56 billion. When public and private non-bank sectors are included, aggregate risk to Italy as a whole owned by rest of the world is $660 billion, with nearly half of that amount being concentrated in France.
In other words, after a several years' hiatus, should Italy "contage" shortly, attention may very soon shift to France once again...
With continued uncertainty in global markets, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, warned King World News about a problem that is even more frightening than derivatives being 15 times world GDP.
The post Derivatives Are Now 15 Times World GDP But Here Is An Even More Frightening Problem appeared first on King World News.
DNC Chair Wasserman Schultz Announces Resignation Following Wikileaks Revelations, Will Join Clinton Campaign
Update 1: In a quite shocking 'beyond caring what the average joe thinks' move, Hillary Clinton just announced that Debbie Wasserman Schultz will serve as an honorary chair on Clinton's campaign.
As ABC reports, Hillary Clinton is thanking her "longtime friend" Debbie Wasserman Schultz after the Florida congresswoman's decision to step down as chair of the Democratic National Committee.
Clinton says that Wasserman Schultz will serve as honorary chair of her campaign's 50-state program to help elect Democrats around the country.
The presumptive Democratic presidential nominee says she looks forward to campaigning with Wasserman Schultz in Florida "and helping her re-election bid."
Clinton responded after Wasserman Schultz agreed to step down as chair at the end of this week's Democratic National Convention.
The move came after the publication last week of some 19,000 hacked emails, some of which suggested the DNC was favoring Clinton during the primary season.
* * *
As we detailed earlier, it seem Bernie Sanders has the last laugh, following a CNN report that his archnesmsis, Debbie Wasserman Schultz, is resigning as chair at the end of the Democratic National Convention. The DNC's official statement makes no mention of her involvement in smears and collusion exposed by the Wikileaks emails.
As The Washington Post reports, she had faced growing pressure to resign Sunday in the aftermath of the release of thousands of embarrassing internal email exchanges among Democratic officials, an episode that has pitched the party into turmoil on the eve of a convention that was promised to showcase unity.
"I would ask her to step aside," David Axelrod, a former adviser to President Obama, said on CNN of Debbie Wasserman Schultz. "I would ask her to step aside, because she's a distraction on a week that is Hillary Clinton's week."
Other senior Democrats echoed that sentiment, speaking on condition of anonymity to discuss a sensitive internal matter. These Democrats indicated that the Clinton campaign would like the resignation to come Sunday.
And sure enough...
JUST IN: Democratic National Committee Chair Debbie Wasserman Schultz will step down after the upcoming DNC pic.twitter.com/XGyIrUVOPA
— CBS Evening News (@CBSEveningNews) July 24, 2016
"Going forward, the best way for me to accomplish those goals is to step down as Party Chair at the end of this convention. As Party Chair, this week I will open and close the Convention and I will address our delegates about the stakes involved in this election not only for Democrats, but for all Americans. We have planned a great and unified Convention this week and I hope and expect that the DNC team that has worked so hard to get us to this point will have the strong support of all Democrats in making sure this is the best convention we have ever had.
"I've been proud to serve as the first woman nominated by a sitting president as Chair of the Democratic National Committee and I am confident that the strong team in place will lead our party effectively through this election to elect Hillary Clinton as our 45th president."
UPDATE: DNC Vice Chair Donna Brazile will serve as Interim Chair through the election after Debbie Wasserman Schultz steps down
— CBS Evening News (@CBSEveningNews) July 24, 2016
So, "Putin wins"... if only according to the failed attempt to redirect the narrative to the "Russian hack" of the DNC Servers.
How much longer can insider machinations keep financial markets propped up? And how will they keep markets from collapsing when the world panics like it did at the start of the year and again following the Brexit vote?
According to K92 Mining President Bryan Slusarchuk, there’s not much ammunition left for central bankers and governments because they’ve already taken excessive and unprecedented steps in an attempt to contain the situation. Unfortunately for the masses, there really is no plan other than to continue destroying the value of currencies around the world. And that, says Slusarchuk in his latest interview with SGT Report, is why you need to act before the crowd and position yourself for the inevitable:
You’ve seen these fiat currencies around the world intrinsically become worth less and less… and at the same time you have smart money that understands this isn’t going to end well and when it doesn’t end well you better have some exposure to hard assets like gold and silver. Gold has withstood the test of time as a store of value and as a currency, in fact, for thousands of years… Just because a group of central bankers in the last 50 years has thought contrary to that fact doesn’t make them right.
It’s going to be very challenging for them to dig the world economy out of the hole when it starts to retreat hard. And that’s when the big payday will come for investors that have taken the prudent position of looking at gold as a hedge against all of this economic uncertainty.
Watch the full interview with Bryan Slusarchuk of K92 Mining:
Slusarchuk’s reasoning is simple:
Smarty money is definitely getting nervous about the big macro environment. Smart money understands that there are $13 trillion in bonds that carry negative interest rates.
What bullets do the central bankers and the big governments around the world have when things start to go sideways?
I liken the situation we’re in now and the situation that everybody experienced in 2008 when you saw Lehman collapse and Bear Stearns collapse. I think that collapse will look like a walk in the park compared to what we’re facing globally now… and the reason that I believe that, unlike 2008, the cartel of central bankers don’t have the ammunition like they did at that point to rapidly reduce interest rates and to rapidly stimulate the economy through excessive fiscal measures… You had the combination of monetary and fiscal policy at that point that really threw every bit of ammunition they had at the problem… what are they going to do this time?
You can either get wiped out when markets eventually realize that government statistics and corporate earnings are nothing more than conjecture, or you can position yourself to take advantage of the next global detonation with hard assets:
They key is to act before the rest of the crowd. You don’t want to miss the coming bull market by being late.
The fact is, nobody in the mainstream is talking about gold and silver yet in a big way… A couple of years ago when we were looking at this [K92 gold mining] asset people wanted to run, not walk, away from gold assets.
We took a contrarian view and were able to pick this up very inexpensively.
Now, smart money is coming into gold equities… you’re starting to see a very nice move but the biggest moves will come in these gold and silver equities when we see the raging gold and silver market that really looks like the global environment is setting up for.
These fiat currencies can only go one way because what is backing the fiat currencies up are mere promises to pay. Promises to honor the value in these fiat currencies from bankers and governments that have really diminished their credibility… and I think they’re going to have more and more diminishment in their credibility as things get ugly out there worldwide.
How can they not get ugly with the amount of fiscal debt and the insanity of the monetary policy of central banks around the world?
Given the choice between banker promises to pay on ever-depreciating fiat currencies or gold, the answer should be clear.
For more interviews like this one visit SGT Report
Once more conspiracy their becomes conspiracy fact as suggestions of 'very professionally organized group of thugs' causing trouble at Trump rallies is confirmed with the WikiLeaks released of DNC emails revealing that DNC officials planned anti-Donald Trump protests.
As we detailed at the time, Donald Trump had no doubts about who was to blame for the shocking violence: organized “thugs.”
Trump tweeted on Saturday: "The organized group of people, many of them thugs, who shut down our First Amendment rights in Chicago, have totally energized America!"
Protesters at planned Chicago rally yesterday were “very professionally done,” Donald Trump says in Dayton, Ohio.
“When they have organized, professionally staged wise-guys, we have to fight back”
We said at the time that we were sure this would not be the last time "organized" protesters will suddenly appear en masse to provoke reactions and violently protest Trump's freedom of speech.. and it wasn't. But now, as The Daily Caller reports,
In multiple emails, DNC officials signed off and acknowledged the existence of two anti-Donald Trump protests in South Bend, IN and Billings, MT. The release of nearly 20,000 emails is the first in a WikiLeaks “Hillary Leaks” series.
On April 29, a DNC press staffer, Rachel Palermo, alerted Eric Walker, deputy communications director, about a Facebook page for an anti-Trump protest on May 2 in South Bend. “Whoo! Thanks to our interns for finding this out.” Walker replies, “I like it, as long as the students feel safe getting involved. I imagine this demo will be nicer than the one in San Fran today.”
That day in San Francisco protesters blocked off roads to an event Donald Trump was hosting. The Republican nominee ended up having to jump down from the highway and sneak around back to enter.
In another other email chain also on April 29, titled “Week-Ahead Notes & Assignments,” former DNC media booker Pablo Manriquez comments “this should be fun” in reference to the May protest.
University of Notre Dame, located in South Bend, is Manriquez’s alma mater. A DNC official wrote, “Pablo please reach out to any folks you think may be able to help.”
Another protest that’s directly mentioned in emails included one that occurred on May 26 in Billings, MT. The email is from May 20 and features notes on the “week ahead.”
Intern involvement with protests is mentioned twice in the leaked emails. DNC communications director Luis Miranda bemoaned photos of an empty anti-Trump protest in Washington, D.C. in one email chain.
Miranda said: “Going forward, when our allies screw up and don’t deliver bodies in time, we either send all our interns out there or we stay away from it.. we don’t want to own a bad picture.”
Miranda was notified of the protests in an email by another DNC email chain titled “Tv coverage of protest great.” The original email notified the DNC communications director of the Indiana protest and a DNC staffer wrote, “thanks to our interns for finding this out.”
DNC officials Brad Marshall, a chief financial officer, and Alan Reed, a compliance officer, also signed off on the use of Black Lives Matter organizer Deray Mckesson as a surrogate for Hillary Clinton.
Mckesson rose to prominence after being active in protests in Ferguson, MO and Baltimore, MD. He has yet to endorse a candidate and said protests are likely to happen at the upcoming Democratic Party convention.
Which makes Hillary Clinton's post-violence email even more controversial...
Violence has no place in our politics. We should use our words and deeds to bring Americans together. pic.twitter.com/FofjognpIA
— Hillary Clinton (@HillaryClinton) March 12, 2016
As Fusion reported at the time, several things about the statement left people with a bad taste in their mouths. Chief among them were her invocation of the Charleston massacre and her lack of stated support for the protesters challenging Trump in Chicago
As LA Times reporter Matt pearce tweeted...
Just walked through a crowd of at least a couple hundred liberals and still haven't seen a single Clinton sign. pic.twitter.com/g9w9HbKKBQ
— Matt Pearce (@mattdpearce) July 24, 2016
3 hours later, Ive seen 1 (see tweet below). To be fair, these are "protests" hence overwhelming Bernie contingency. https://t.co/tqSOadc01a
— Jacqueline Alemany (@JaxAlemany) July 24, 2016
Spotted at the Bernie Sanders rally outside Philly city hall. pic.twitter.com/GLCuQHzpxs
— Matt Pearce (@mattdpearce) July 24, 2016
— Matt Pearce (@mattdpearce) July 24, 2016
— Matt Pearce (@mattdpearce) July 24, 2016
— Matt Pearce (@mattdpearce) July 24, 2016
Kristy Marshall, of Bellingham, Wash. "This was the one sign that spoke to me." pic.twitter.com/I6hGrXeWcl
— Matt Pearce (@mattdpearce) July 24, 2016
Rebecca Waring, of Baltimore: "I made this after I read the emails on Wikileaks. I was just horrified. So unfair." " pic.twitter.com/kMQ4fYhiyd
— Matt Pearce (@mattdpearce) July 24, 2016
Like, I literally just interviewed two lefty protesters from Youngstown, Ohio, who decided to skip the RNC last week and come to the DNC.
— Matt Pearce (@mattdpearce) July 24, 2016
... it would appear that the the Democratic Party is even more fragmented than the GOP.
Michael Hudson Exposes 2016's Real 'Class War': Krugman's Neocon Neoliberalism Vs Trump's Righteous Populism
Economist Michael Hudson says Trump's divergence from the conventional Republican platform is generating indignant punditry from neocons and neoliberals alike...
SHARMINI PERIES, EXECUTIVE PRODUCER, TRNN: It's the Real News Network. I'm Sharmini Peries coming to you from Baltimore.
On Friday, just after the Republican National Congress wrapped up with its presidential candidate, Donald Trump, Paul Krugman of the New York Times penned an article titled "Donald Trump: The Siberian Candidate." He said in it, if elected, would Donald Trump be Vladimir Putin's man in the White House? Krugman himself is worried as ludicrous and outrageous as the question sounds, the Trump campaign's recent behavior has quite a few foreign policy experts wondering, he says, just what kind of hold Mr. Putin has over the Republican nominee, and whether that influence will continue if he wins.
Well, let's unravel that statement with Michael Hudson. He's joining us from New York. Michael is a distinguished research professor of economics at the University of Missouri Kansas City. His latest book is Killing the Host: How Financial Parasites and Debt Bondage Destroyed the Global Economy. Thank you so much for joining us, Michael.
MICHAEL HUDSON: It's good to be here, Sharmini. It's been an exciting week.
PERIES: So let's take a look at this article by Paul Krugman. Where is he going with this analysis about the Siberian candidate?
HUDSON: Well, Krugman has joined the ranks of the neocons, as well as the neoliberals, and they're terrified that they're losing control of the Republican Party. For the last half-century the Republican Party has been pro-Cold War, corporatist. And Trump has actually, is reversing that. Reversing the whole traditional platform. And that really worries the neocons.
Until his speech, the whole Republican Convention, every speaker had avoided dealing with economic policy issues. No one referred to the party platform, which isn't very good. And it was mostly an attack on Hillary. Chants of "lock her up." And Trump children, aimed to try to humanize him and make him look like a loving man.
But finally came Trump's speech, and this was for the first time, policy was there. And he's making a left run around Hillary. He appealed twice to Bernie Sanders supporters, and the two major policies that he outlined in the speech broke radically from the Republican traditional right-wing stance. And that is called destroying the party by the right wing, and Trump said he's not destroying the party, he's building it up and appealing to labor, and appealing to the rational interest that otherwise had been backing Bernie Sanders.
So in terms of national security, he wanted to roll back NATO spending. And he made it clear, roll back military spending. We can spend it on infrastructure, we can spend it on employing American labor. And in the speech, he said, look, we don't need foreign military bases and foreign spending to defend our allies. We can defend them from the United States, because in today's world, the only kind of war we're going to have is atomic war. Nobody's going to invade another country. We're not going to send American troops to invade Russia, if it were to attack. So nobody's even talking about that. So let's be realistic.
Well, being realistic has driven other people crazy. Not only did Krugman say that Trump would, quote, actually follow a pro-Putin foreign policy at the expense of America's allies, and he's referring to the Ukraine, basically, and it's at--he's become a lobbyist for the military-industrial complex. But also, at the Washington Post you had Anne Applebaum call him explicitly the Manchurian candidate, referring to the 1962 movie, and rejecting the neocon craziness. This has just driven them nutty because they're worried of losing the Republican Party under Trump.
In economic policy, Trump also opposes the Trans-Pacific Partnership and the TTIP trade and corporate power grab [inaud.] with Europe to block public regulation. And this was also a major plank of Bernie Sanders' campaign against Hillary, which Trump knows. The corporatist wings of both the Republican and the Democratic Parties fear that Trump's opposition to NAFTA and TPP will lead the Republicans not to push through in the lame duck session after November. The whole plan has been that once the election's over, Obama will then get all the Republicans together and will pass the Republican platform that he's been pushing for the last eight years. The Trans-Pacific Partnership trade agreement with Europe, and the other neoliberal policies.
And now that Trump is trying to rebuild the Republican Party, all of that is threatened. And so on the Republican side of the New York Times page you had David Brooks writing "The death of the Republican Party." So what Trump calls the rebirth of the Republican Party, it means the death of the reactionary, conservative, corporatist, anti-labor Republican Party.
And when he wrote this, quote, Trump is decimating the things Republicans stood for: NATO, entitlement reform, in other words winding back Social Security, and support of the corporatist Trans-Pacific Partnership. So it's almost hilarious to see what happens. And Trump also has reversed the traditional Republican fiscal responsibility austerity policy, that not a word about balanced budgets anymore. And he said he was going to run at policy to employ American labor and put it back to work on infrastructure. Again, he's made a left runaround Hillary. He says he wants to reinstate Glass-Steagall, whereas the Clintons were the people that got rid of it.
And this may be for show, simply to brand Hillary as Wall Street's candidate. But it also seems to actually be an attack on Wall Street. And Trump's genius was to turn around all the attacks on him as being a shady businessman. He said, look, nobody knows the system better than me, which is why I alone can fix it. Now, what that means, basically, as a businessman, he knows the fine print by which they've been screwing the people. So only someone like him knows how to fight against Wall Street. After all, he's been screwing the Wall Street banks for years [inaud.]. And he can now fight for the population fighting against Wall Street, just as he's been able to stiff the banks.
So it's sort of hilarious. On the one hand, leading up to him you had Republicans saying throw Hillary in jail. And Hillary saying throw Trump in the [inaud.]. And so you have the whole election coming up with---.
PERIES: Maybe we should take the lead and lock them all up. Michael, what is becoming very clear is that there's a great deal of inconsistencies on the part of the Republican Party. Various people are talking different things, like if you hear Mike Pence, the vice presidential candidate, speak, and then you heard Donald Trump, and then you heard Ivanka Trump speak yesterday, they're all saying different things. It's like different strokes for different folks. And I guess in marketing and marketeering, which Trump is the master of, that makes perfect sense. Just tap on everybody's shoulder so they feel like they're the ones being represented as spoken about, and they're going to have their issues addressed in some way.
When it comes--he also in that sense appealed to, as you said, the Bernie Sanders people when he talked about the trade deals. You know, he's been talking about NAFTA, TTIP, TTP, and these are areas that really is traditionally been the left of the left issues. And now there's this, that he's anti-these trade deals, and he's going to bring jobs home. What does that mean?
HUDSON: Well, you're right when you say there's a policy confusion within the Republican Party. And I guess if this were marketing, it's the idea that everybody hears what they want to hear. And if they can hear right-wing gay bashing from the Indiana governor, and they can hear Trump talking about hte LGBTQ, everybody will sort of be on the side.
But I listened to what Governor Pence said about defending Trump's views on NATO. And he's so smooth. So slick, that he translated what Trump said in a way that no Republican conservative could really disagree with it. I think he was a very good pick for vice president, because he can, obviously he's agreed to follow what Trump's saying, and he's so smooth, being a lawyer, that he can make it all appear much more reasonable than it would.
I think that the most, the biggest contradiction, was you can look at how the convention began with Governor Christie. Accusing Hillary of being pro-Russian when she's actually threatening war, and criticizing her for not helping the Ukrainians when it was she who brought Victorian Nuland in to push the coup d'etat with the neo-nazis, and gave them $5 billion. And Trump reversed the whole thing and said no, no, no. I'm not anti-Russian, I'm pro-Russian. I'm not going to defend Ukrainians. Just the opposite.
And it's obvious that the Republicans have fallen into line behind them. And no wonder the Democrats want them to lose. All of that--you've had the Koch brothers say we're not going to give money to Trump, the Republicans, now. We're backing Hillary. You've got the Chamber of Commerce saying because Trump isn't for the corporate takeover of foreign trade, we're now supporting the Democrats, not the Reepublicans.
So this is really the class war. And it's the class war of Wall Street and the corporate sector of the Democratic side against Trump on the populist side. And who knows whether he really means what he says when he says he's for the workers and he wants to rebuild the cities, put labor back to work. And when he says he's for the blacks and Hispanics have to get jobs just like white people, maybe he's telling the truth, because that certainly is the way that the country can be rebuilt in a positive way.
And the interesting thing is that all he gets from the Democrats is denunciations. So I can't wait to see how Bernie Sanders is going to handle all this at the Democratic Convention next week.
PERIES: All right, Michael. A lot to continue discussing there. I thank you so much for joining us today and look forward to a report next week.
HUDSON: Yes, good to be here at this exciting time.
PERIES: And thank you for joining us on the Real News Network.