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Archive for the ‘Uncategorized’ Category

The Election that Isn’t: Corporations and Constitutions

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By chumbawamba

“My people are destroyed for lack of knowledge: because thou hast rejected knowledge, I will also reject thee…” – Hosea 4:6 (KJV)

In the time that I’ve been here in this physical dimension, I’ve noticed that most people don’t take the time to check things out for themselves. A simple act of reading a few pages of letters can sometimes rather easily dispel dangerous rumors and myths.

One such myth is the much exalted and revered “vote”. Sure, you, as citizens of the United States (by which I mean those with the same status of emancipated slaves circa 1863), have a right (actually a privilege) to “vote”, but what is it worth?

Since you are a United States citizen, the value of your vote can be readily determined by simply reading the Constitution. Now, a lot of times you might hear someone admonishing you to “Read the Constitution!” To which I say: horseshit. The Constitution for/of the United States of America is a boring, dry document that basically just lays out the rules for how the government will operate. The interesting/important parts are the preamble and amendments (especially the first ten, collectively known as the Bill of Rights). If you know how to read arcane legal documents, the preamble will have clued you in to the true nature of the Constitution: it’s a trust indenture. And more specifically, a trust indenture designed to operate a corporation in bankruptcy. Though that’s well beyond the scope of my present screed, I will point you to resources you can consult to understand the true nature of the Constitution. And if you have desire to read an important founding document, the Declaration of Independence is far more relevant, and an excellent read to boot.

Anyway, the pertinent part of the Constitution for the purposes of this enlightenment is the following, Article II, Section 1. If you’re a typically lazy American, just read the bolded parts:

The executive Power shall be vested in a President of the United States of America. He shall hold his Office during the Term of four Years, and, together with the Vice President, chosen for the same Term, be elected, as follows:

Each State shall appoint, in such Manner as the Legislature thereof may direct, a Number of Electors, equal to the whole Number of Senators and Representatives to which the State may be entitled in the Congress: but no Senator or Representative, or Person holding an Office of Trust or Profit under the United States, shall be appointed an Elector.

The Electors shall meet in their respective States, and vote by Ballot for two Persons, of

whom one at least shall not be an Inhabitant of the same State with themselves. And they shall make a List of all the Persons voted for, and of the Number of Votes for each; which List they shall sign and certify, and transmit sealed to the Seat of the Government …read more

Source: The Election that Isn’t: Corporations and Constitutions

    

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Posted May 18th, 2016 in Uncategorized.

China Is Now Conducting "Security Reviews" On Foreign Tech Products

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By Tyler Durden

In a speech last month, China’s president Xi Jinping had some telling comments around what technology companies can expect in the future as they try and sell into the Chinese market.

According to the New York Times, Xi’s outlined the direction in which he is planning to take China as it relates to technology and cyber security. “One viewpoint holds that we must close ourselves off, make a fresh start, thoroughly shake off reliance on foreign technology and rely on indigenous innovation to pursue development. Otherwise, we would always follow in the footsteps of others.” Xi said. Adding that China must find a middle ground and determine “which things can be imported but have to be secure and controllable; which things may be imported, digested and absorbed for re-innovation; which things can be developed in collaboration with others; and for which things we must rely on our own strength and indigenous innovation.”

Said otherwise, China is going to clamp down even more on tech imports, even admitting that the products will be reverse engineered and reproduced in China, very much as the country has done in its manufacturing sector.

Knowing that, it is not surprising that the Times is reporting that China is conducting security reviews on technology products sold in China by the likes of Apple and other companies. The reviews are alleged to even require employees of the tech companies to answer questions about the product in person.

Apple and other companies in recent months have been subjected to reviews that target encryption and the data storage of tech products, said people briefed on the reviews who spoke on the condition of anonymity. In the reviews, Chinese officials require executives or employees of the foreign tech companies to answer questions about the products in person, according to these people.

The reviews are run by a committee associated with the Cyberspace Administration of China, the country’s Internet control bureau, they said. The bureau includes experts and engineers with ties to the country’s military and security agencies.

While other countries, including the United States and Britain, conduct reviews of some tech products, they usually focus on products that will be used by the military or other parts of the government that are concerned with security, and not on products sold to the general public.

The Chinese reviews stand out because they are being applied more broadly, including to American consumer software and gadgets popular in China, the people briefed on the reviews said. And because Chinese officials have not disclosed the nature of the checks, both the United States government and American tech companies fear that the reviews could be used to extract tech knowledge as well as ensure that the United States was not using the products to spy.

Meanwhile, the lack of disclosure by China’s government around the topic has made it difficult for the US government to voice any objections, but during a congressional hearing last month, Apple’s general counsel Bruce Sewell said that the Chinese government had in fact asked the company …read more

Source: China Is Now Conducting "Security Reviews" On Foreign Tech Products

    

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Posted May 17th, 2016 in Uncategorized.

The Humungous Depression

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By Tyler Durden

Submitted by StraightLineLogic.com's Robert Gore via The Burning Platform blog,

Economic depressions unfold slowly, which obscures their analysis, although they are simple to understand. Governments and central banks turn recessions into depressions, which are preceded by unsustainable expansions of debt untethered from the real economy. The reduction and resolution of excess debt takes time, and governments and central banks usually act counterproductively, retarding necessary adjustments and lengthening the adjustment, and consequently, the depression.

If one dates the beginning of a depression from the beginning of the unsustainable expansion of debt that preceded it, then the current depression began in 1987. Newly installed chairman of the Federal Reserve Alan Greenspan quelled a stock market crash, flooding the financial system with fiat liquidity. It was a well from which he and his successors would draw repeatedly. Throughout the 1990s he would pump whenever it appeared the market and the US economy were about to dump. In 1999, he pumped because the Y2K computer transition might adversely affect the economy and financial system (it didn’t).

If one dates the beginning of a depression from the time when the benefits of debt are, in the aggregate, outweighed by its burdens, the depression began in 2000, with the implosion of the fiat-credit fueled, high-tech and Internet stock market bubble. Unsustainable debt and artificially low interest rates lower the rate of return on productive investment and saving, increasing the relative attractiveness of speculation. Central bankers and their minions refer to this as “forcing investors out on the risk curve,” crawling way out on a limb for fruitful returns. They have no term for when markets saw off the branch, as they did in 2000 and again in 2008.

Most people don’t see 2000 as the beginning of a depression, but Washington and Wall Street cloud their vision. Stock markets were once essential avenues for raising capital and valuing corporations. Since central bankers’ remit was broadened to their care and feeding, stock markets have become engines of obfuscation. The “wealth effect” supposedly justified solicitude for markets: a rising stock market would increase wealth, spending, and economic growth. For seven years a rising market has coexisted with an anemic rebound and one hears little about the wealth effect anymore. The stock market is the preeminent symbol of economic health, so keeping it afloat has become a political exercise. Sure, central bankers and governments know what they’re doing, just look at those stock indices.

Let’s look at those stock indices. They are measured in fiat debt units, the entirely elastic quantity of which is in the hands of governments and central banks. What if stock indices are valued in a less ephemeral currency, say gold, aka “real money”? By that measure, the DJIA divided by the price of an ounce of gold reached its all-time high of about 41 ounces in May 1999, or just before the depression began. That ratio collapsed to under 7 ounces in September 2011, and currently stands at about 14. If you paid for the …read more

Source: The Humungous Depression

    

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Posted May 17th, 2016 in Uncategorized.

Trumped! Washington’s Fiscal Hypocrisy Is Too Rich For Words

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By Tyler Durden

education wages

Submitted by David Stockman via Contra Corner blog,

You have to love it when one of Donald Trump’s wild pitches sends the beltway hypocrites into high dudgeon. But his rumination about negotiating a discount on the Federal debt was priceless.

No sooner did the 'unschooled' Trump mention out loud what is already the official policy of the US government than a beltway chorus of fiscal house wreckers commenced screaming like banshees about the sanctity of Uncle Sam’s credit promises.

Let’s see. For 89 months now the Federal Reserve has pounded interest rates to the zero bound because come hell or high water the US economy must have 2% inflation in order to grow and prosper. Other than a handful of rubes from the Congressional hinterlands, there is nary a Washington operative from either party who has questioned the appropriateness or effectiveness, let alone the sanity, of Bernanke-Yellen’s 2% inflation totem.

That means, of course, exactly 30 years from today investors would get back 54.5 cents in inflation-adjusted money per dollar of principal on 30-year treasury bonds if the Fed hits its sacred targets.

If that’s not default, it is surely a deeper “discount” than even the Donald had in mind while jabbering to CNBC about his years as the King of Debt.

Oh, yes, the monetary geniuses who peddle the 2% inflation gospel claim we are all in it together. That is, prices, wages, profits, rents and even indexed social benefits allegedly all march upwards at 2% per year, and, save for minor leads and lags in timing, no one is financially worse for the wear.

C’mon. That’s rank poppycock. The truth is, savers get killed and borrowers get windfalls; the wages of upper-end workers keep-up, while the purchasing power of paychecks lower down the ladder shrinks continuously; social security recipients get recompense, private pensioners get shafted. Yada, yada.

Moreover, the biggest windfall harvesters of the Fed’s deliberate debt default policy are the leveraged gamblers of Wall Street and the clueless debt-addicted politicians of Washington.

Even if you grant that the latter have no inkling that the savings function is the key to capitalist prosperity, they do spend a goodly amounted of time waxing about their endless affection for America’s working people. Why, Governor Kasich never finished a single GOP primary debate without claiming he understood how to improve the US economy because his father was a mailman.

So take a look at the graph below on real wages since the Fed went full tilt with the printing press in 2007. This is not a picture of 2% lockstep.

Less educated and lower wage workers have experienced shrinking real wages and for a self-evident reason. On the margin, they are more exposed to the lower nominal wages of foreign goods and services competitors than are workers on the upper end of the jobs and income ladder.

Indeed, the 2% inflation campaign in the real world is the very opposite of the Keynesian lockstep claim. Its incidence among economic agents and classes is actually capricious and inequitable in the extreme.

In fact, it …read more

Source: Trumped! Washington’s Fiscal Hypocrisy Is Too Rich For Words

    

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Posted May 17th, 2016 in Uncategorized.

The conservatives who refused Zuckerberg’s invitation

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Here’s a list of the conservative figures Mark Zuckerberg will meet with on Wednesday to discuss concerns over allegations that the company suppressed conservative news on Trending topics.

…read more

Source: The conservatives who refused Zuckerberg’s invitation

    

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Posted May 17th, 2016 in Uncategorized.

U.S. problem: I work three part-time jobs

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for latest details.

…read more

Source: U.S. problem: I work three part-time jobs

    

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Posted May 17th, 2016 in Uncategorized.

Flying out of Chicago? Arrive 3 hours before

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Due to excessively long security lines, Chicago’s O’Hare and Midway airports are now telling passengers to arrive three hours ahead of scheduled flight times.

Popular: Radical Islam in America | Graham Opposes Republican Leader | Guns in America

…read more

Source: Flying out of Chicago? Arrive 3 hours before

    

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Posted May 17th, 2016 in Uncategorized.

Is Mitt Romney On A Suicide Mission?

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By Tyler Durden

Suibmitted by Patrick Buchanan via Buchanan.org,

“It’s a suicide mission,” said the Republican Party Chairman.

Reince Priebus was commenting on a Washington Post story about Mitt Romney and William Kristol’s plot to recruit a third-party conservative candidate to sink Donald Trump.

Several big-name Republican “consultants” and “strategists” are said to be on board. Understandably so, given the bucks involved.

With the kind of cash that sloshes around in a presidential campaign, there should be no shortage of super PAC parasites at the enlistment office.

Still missing, however, is the kamikaze pilot who gets just enough fuel to make it out to the fleet. Efforts to recruit Sen. Ben Sasse, loudest of the “Never Trump” leaders, appear to have foundered.

Second thoughts set in this weekend when the Nebraska State Republican Convention voted thunderously to chastise Sasse for persisting in his anti-Trump antics, now that the Republican nominee has been decided by the voters.

Among others sounded out for the mission are ex-Sen. Tom Coburn of Oklahoma, retired Marine Corps General James Mattis, former Secretary of State Condoleezza Rice, and Mark Cuban of the Dallas Mavericks. All have begged off.

Apparently, Romney, the Republican Party’s 2012 nominee, personally sounded out both Sasse and Gov. John Kasich, who will be hosting the Cleveland Convention where the coronation of the Donald is to be held.

How Kasich could expect to beat Trump in November, when he lost every state primary to Trump, save his own, is unexplained. And, indeed, Romney’s recruitment of Kasich raises a question.

If Romney believes that Trump is an unacceptable nominee and would be an intolerable president, and that Republicans have a moral obligation to prevent this, why does Romney not man up and take on the assignment himself?

Now, admittedly, Cranbrook in Bloomfield Hills, where Romney attended, does not have a long tradition of producing suicide bombers. Yet, Romney is asking others to undertake a mission that will kill their careers and make them pariahs in their party, but will not do it himself.

His father shared Romney’s mindset: If the voters have made a mistake, you are not obligated to support it. Just days after Sen. Barry Goldwater locked up the Republican nomination in the California primary, Gov. George Romney was at the Cleveland governors conference plotting to stop him.

Richard Nixon arrived to encourage Romney to step out onto the tracks in front of the Goldwater express. Romney thought better of taking Nixon’s counsel. But he did join Gov. Nelson Rockefeller in denouncing his own party for coddling extremists, and refused to endorse Goldwater, as son Mitt is refusing to endorse Trump.

It was after that Cleveland Convention that Nixon ruefully told me, “Buchanan, whenever you hear of a group forming up to stop X, be sure to put your money on X.”

In 1968, George Romney was so far behind Nixon in the early polls he dropped out, two weeks before New Hampshire. Though he quit the race, at the Republican Convention in Miami Beach, he allowed his name to be put in nomination for vice president, to protest …read more

Source: Is Mitt Romney On A Suicide Mission?

    

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Posted May 17th, 2016 in Uncategorized.

Weapons Headed To Libya: Hillary’s Interventionist Disaster Continues To Spiral Out Of Control

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By Tyler Durden

Screen Shot 2016-05-16 at 2.43.57 PM

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

In retrospect, Obama’s intervention in Libya was an abject failure, judged even by its own standards. Libya has not only failed to evolve into a democracy; it has devolved into a failed state. Violent deaths and other human rights abuses have increased severalfold. Rather than helping the United States combat terrorism, as Qaddafi did during his last decade in power, Libya now serves as a safe haven for militias affiliated with both al Qaeda and the Islamic State of Iraq and al-Sham (ISIS). The Libya intervention has harmed other U.S. interests as well: undermining nuclear nonproliferation, chilling Russian cooperation at the UN, and fueling Syria’s civil war.?

As bad as Libya’s human rights situation was under Qaddafi, it has gotten worse since NATO ousted him. Immediately after taking power, the rebels perpetrated scores of reprisal killings, in addition to torturing, beating, and arbitrarily detaining thousands of suspected Qaddafi supporters. The rebels also expelled 30,000 mostly black residents from the town of Tawergha and burned or looted their homes and shops, on the grounds that some of them supposedly had been mercenaries. Six months after the war, Human Rights Watch declared that the abuses “appear to be so widespread and systematic that they may amount to crimes against humanity.”?

As a consequence of such pervasive violence, the UN estimates that roughly 400,000 Libyans have fled their homes, a quarter of whom have left the country altogether. ?

– From the post: The Forgotten War – Understanding the Incredible Debacle Left Behind by NATO in Libya

Earlier today, The Guardian published an article detailing how foreign leaders were gathering in Vienna to discuss how to address the humanitarian disaster/ISIS haven they themselves created in Libya. As usual, the key agenda item revolved around whether the U.S. and its allies should ship weapons into the arena to inspire, you know, freedom and democracy.

Reading the piece leaves you with a clear sense of what a quagmire it really is. For example:

Leading foreign ministers from Europe and the Middle East are to meet in Vienna on Monday under the joint chairmanship of the US and Italy to discuss how to bolster support for the UN-backed Libyan government in the face of deepening splits in the country over political legitimacy, oil resources and Islamic State.

Special forces from the US, UK, France and Italy are operating in various parts of Libya, sometimes backing different military forces and hindering efforts to reunite Libyan politics behind the UN government of Fayez al-Sarraj.

Remember this paragraph for later.

Sarraj has been trying to broaden his authority in Tripoli since he and his political allies arrived in late March, taking over key institutions such as the central bank and the National Oil Corporation, but he still faces a rival administration, and military power, in the east. Disputes between the factions are such …read more

Source: Weapons Headed To Libya: Hillary’s Interventionist Disaster Continues To Spiral Out Of Control

    

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Posted May 17th, 2016 in Uncategorized.

This Is Goldman’s Primer On The Most Critical Crude Oil Prices

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By Tyler Durden

While we are not sure if the market has finally had time to actually read Goldman’s oil note from Sunday night (posted here at the same time) and understand that far from bullish Goldman actually warned that the market rebalancing is taking far longer and as a result is lowering its 2017 price targets, there was one additional curious highlight in the report: Goldman’s breakdown of critical prices bands for oil which actually is a useful guide for how the broader market (if devoid of momentum-chasing algo traders) would respond with oil trading in any given price interval .

  • Below $30/bbl is the price range when inventories near storage capacity. This risk has passed in our view absent a sharp reversal in global growth.
  • Below $40/bbl, producers respond by aggressively slashing spending and future production. This threshold was made explicit by the US credit agencies when they downgraded 15% of US E&Ps to high yield earlier this year. We no longer need to be in this range unless the systemic disruptions reverse (Nigeria, Libya) or low-cost producers surprise to the upside once again in 2016 or 2017.
  • Between $40/bbl and $50/bbl is the muddle through. It’s the range (1) that most non-OPEC producers budgeted for 2016, and (2) where US producers on aggregate are not ramping up activity: some are focusing on drawing down their well backlog while the aggregate rig count continues to decline. This is where prices will remain through 2Q.
  • Above $50/bbl is where activity will start to ramp up although operational frictions and levered balance sheets will slow this activity initially. This threshold has been explicitly stated during US earnings releases and is also consistent with the notable increase in hedging with calendar 2017 prices near $50/bbl. The ongoing open access to capital creates the risk that activity can ramp up meaningfully more near $50/bbl than we expect, with a US E&P raising equity this past week to ramp up its drilling activity. We also see risks that brownfield capex spending increases near this threshold, as producers seek to maximize returns and cash flow.
  • Near $60/bbl is when new projects will be sanctioned and shale activity will accelerate, which we do not require until late in 2017 in our view.

And since Goldman is now assumed to be “bullish” (which it actually isn’t), we are delighted to take the other side of the trade and expect a repeat of the summer of 2015 price action as we noted previously: peak prices for the next few months, then another sharp drop as supply shortages are eliminated and as a flood of new oil hits the market just in time for the Chinese credit-bust slowdown.

…read more

Source: This Is Goldman’s Primer On The Most Critical Crude Oil Prices

    

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Posted May 17th, 2016 in Uncategorized.

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