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"We’re Going To Do It, F**k It" – Venezuela’s Maduro Orders Military Exercises For Next Weekend

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By Tyler Durden

Over the past several days, things in Venezuela have not only taken a palpable turn for the worse, but now seem to be moving at an accelerating pace toward the inevitable endgame for the Maduro regime and whatever happens next.

As we reported on Friday night, following dramatic scenes of violence in the streets, things escalated when some 5,000 starving locals looted a supermarket looking for food, leaving countless injured. The result was an immediate, if long overdue acknowledgement by US officials that “a crisis is coming” who added that Maduro “was not likely to be able to complete his term, which is due to end after elections in late 2018” implying that a coup is likely imminent.

They said one “plausible” scenario would be that Maduro’s own party or powerful political figures would force him out and would not rule out the possibility of a military coup.

An interview we presented with a member of the Venezuelan national guard confirmed as much when the anonymous guardsman said that “the situation in Venezuela has never been as bad as it is now. The breaking point is near, but still not at hand. My recommendation is for people to prepare, to look for food and then to store it. Obviously, when the implosion occurs , it won’t last long. I believe it will last something like 10 days, but they will be difficult days.”

Indeed, all that is missing is the catalyst for a broad, if violent, popular upheaval against Maduro’s failing regime.

That catalyst may have been revealed this weekend, when Venezuela’s opposition on Saturday slammed a state of emergency decreed by President Nicolas Maduro and vowed to press home efforts to remove the leftist leader this year amid a grim economic crisis.

As we reported yesterday, Maduro on Friday night declared a 60-day state of emergency due to what he called plots from Venezuela and the United States to subvert him. He did not provide specifics. A recording of his increasingly angry rhetoric is shown below:

As Reuters adds today, “the measure shows Maduro is panicking as a push for a recall referendum against him gains traction with tired, frustrated Venezuelans, opposition leaders said during a protest in Caracas.”

We’re talking about a desperate president who is putting himself on the margin of legality and constitutionality,” said Democratic Unity coalition leader Jesus Torrealba, adding Maduro was losing support within his own bloc.

If this state of emergency is issued without consulting the National Assembly, we would technically be talking about a self-coup,” he told hundreds of supporters who waved Venezuelan flags and chanted “he’s going to fall.”

The people’s will was already made clear late last year when the opposition won control of the National Assembly in a December election, propelled by voter anger over product shortages, raging inflation that has annihilated salaries, and rampant violent crime, but the legislature has been routinely undercut by the Supreme Court. The lit fuse is therefore entirely in the …read more

Source: "We’re Going To Do It, F**k It" – Venezuela’s Maduro Orders Military Exercises For Next Weekend

    

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Who Rules The World? Part 1

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By Tyler Durden

Authored by Noam Chomsky, originally posted at TomDispatch.com,

[This piece, the first of two parts, is excerpted from Noam Chomsky’s new book, Who Rules the World? (Metropolitan Books).]

When we ask “Who rules the world?” we commonly adopt the standard convention that the actors in world affairs are states, primarily the great powers, and we consider their decisions and the relations among them. That is not wrong. But we would do well to keep in mind that this level of abstraction can also be highly misleading.

States of course have complex internal structures, and the choices and decisions of the political leadership are heavily influenced by internal concentrations of power, while the general population is often marginalized. That is true even for the more democratic societies, and obviously for others. We cannot gain a realistic understanding of who rules the world while ignoring the “masters of mankind,” as Adam Smith called them: in his day, the merchants and manufacturers of England; in ours, multinational conglomerates, huge financial institutions, retail empires, and the like. Still following Smith, it is also wise to attend to the “vile maxim” to which the “masters of mankind” are dedicated: “All for ourselves and nothing for other people” — a doctrine known otherwise as bitter and incessant class war, often one-sided, much to the detriment of the people of the home country and the world.

In the contemporary global order, the institutions of the masters hold enormous power, not only in the international arena but also within their home states, on which they rely to protect their power and to provide economic support by a wide variety of means. When we consider the role of the masters of mankind, we turn to such state policy priorities of the moment as the Trans-Pacific Partnership, one of the investor-rights agreements mislabeled “free-trade agreements” in propaganda and commentary. They are negotiated in secret, apart from the hundreds of corporate lawyers and lobbyists writing the crucial details. The intention is to have them adopted in good Stalinist style with “fast track” procedures designed to block discussion and allow only the choice of yes or no (hence yes). The designers regularly do quite well, not surprisingly. People are incidental, with the consequences one might anticipate.

The Second Superpower

The neoliberal programs of the past generation have concentrated wealth and power in far fewer hands while undermining functioning democracy, but they have aroused opposition as well, most prominently in Latin America but also in the centers of global power. The European Union (EU), one of the more promising developments of the post-World War II period, has been tottering because of the harsh effect of the policies of austerity during recession, condemned even by the economists of the International Monetary Fund (if not the IMF’s political actors). Democracy has been undermined as decision making shifted to the Brussels bureaucracy, with the northern banks casting their shadow over their proceedings.

Mainstream parties have been rapidly losing members to left and to right. The executive director of the Paris-based …read more

Source: Who Rules The World? Part 1

    

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Watch Venezuela, Because Food Shortages, Looting And Economic Collapse Are Coming To America Too

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By Michael Snyder

Venezuela Economic Collapse

The full-blown economic collapse that is happening in Venezuela right now is a preview of what Americans will be experiencing in the not too distant future.  Just a few years ago, most Venezuelans could never have imagined that food shortages would become so severe that people would literally hunt dogs and cats for food.  But as you will see below, this is now taking place.  Sadly, this is what the endgame of socialism looks like.  When an all-powerful government is elevated far above all other institutions in society and radical leftists are given the keys to the kingdom, this is the result.  Food shortages, looting and rampant violent crime have all become part of daily life in Venezuela, and we all need to watch as this unfolds very carefully, because similar scenarios will soon be playing out all over the planet.

The funny thing is that Venezuela actually has more “wealth” than most countries in the world.  According to the CIA, Venezuela actually has more proven oil reserves than anyone else on the globe – including Saudi Arabia.

So how did such a wealthy nation find itself plunged into full-blown economic collapse so rapidly, and could a similar thing happen to us?

The president of Venezuela has declared a 60 day state of emergency in a desperate attempt to restore order, but most people don’t anticipate that it will do much good.  Social order continues to unravel as the economy systematically implodes.  The Venezuelan economy shrunk by 5.7 percent last year, and it is being projected that it will contract by another 8 percent in 2016.  Meanwhile, inflation is raging wildly out of control.  According to the IMF, the official inflation rate in Venezuela will be somewhere around 720 percent this year and 2,200 percent next year.

If people are able to get their hands on some money, they immediately rush out to the stores to use it before the prices go up again.  This has created devastating shortages of food, basic supplies and medicine.

Electricity is also in short supply, and a two day workweek has been imposed on many government employees in a desperate attempt to save power.  Violent crime is seemingly everywhere, and most law-abiding Venezuelans lock themselves in their homes at night as a result.

Much of the crime is being perpetrated by the mafia and the gangs, but sometimes it is just normal people looking for food.  Desperate people do desperate things, and according to the Guardian there have been “107 episodes of looting or attempted looting in the first quarter of 2016″…

Crowds of people in Venezuela have stolen flour, chicken and even underwear this week as looting increases across the country in the wake of shortages of many basic products. Many people have adopted the habit of getting up in the dead of night to spend hours in long lines in front of supermarkets. But as more end up empty-handed and black market prices soar, plundering is rising in …read more

Source: Watch Venezuela, Because Food Shortages, Looting And Economic Collapse Are Coming To America Too

    

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FBI Agents Busted For Planting Hidden Surveillance Microphones In Public Places

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By Tyler Durden

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

When a reporter for the United States Army Training and Doctrine Command interviewed Frank Zappa for the commands news syndicate, the story was held by a superior who demanded that Zappa – who had been rather hard on the army – answer one more question: just who does he think will defend the country without the army?

Zappa’s reply: “From what? The biggest threat to America today is it’s own federal government…. Will the Army protect anybody from the FBI? The IRS? The CIA? The Republican Party? The Democratic Party?….The biggest dangers we face today don’t even need to sneak past our billion dollar defense system….they issue the contracts for them.” The interview was not run.

*Note: It’s uncertain whether the above exchange ever took place, since the interview was never run. Nevertheless, the point is clear, instructive and serves as the perfect introduction for this post, whether the words were actually said or not.

One of the greatest afflictions affecting these United States at the moment is the general public’s overwhelming gullibility when it comes to government. You may think this sounds insane given surveys that consistently show Congress with a less than 10% approval rating, but I think this clouds the fact that most people have yet to accept just how completely corrupt and authoritarian government has actually become.

I don’t mean for this to become some sort of big rant against government in general. Our founders set up a brilliant system which has served the country well for over two centuries. What people seem to forget is our system of government wasn’t set up to create a new set of parental authority figures for the public. The entire intent behind the Constitution was to create a series of checks and balances to restrain government from becoming too powerful and working against the interests of the public. Government’s primary role in America is supposed to be to protect the Constitution and defend the cherished civil liberties defined within it. In 2016, it does precisely opposite.

Our government isn’t just corrupt though. Indeed, the primary function of government at the moment is to protect status quo criminals from the public, not the other way around. This is why the rich and powerful are never held to account, which is in turn why it continues to get worse and worse. A key gatekeeper in this whole scheme against the citizenry is the FBI.

Time and time again throughout U.S. history, you see the FBI working to undermine the public’s freedom in order to protect whatever racket their status quo masters happen to be running at the time. There are countless examples, but I’ll list a few that I’ve covered, spanning the last 50 years to the present:

Disturbing Claim – FBI Interrogated Former Senator for Wanting “28 Pages” Declassified

<a target=_blank rel="nofollow" href="https://libertyblitzkrieg.com/2016/02/17/apple-vows-to-defend-its-customers-as-the-fbi-launches-a-war-on-privacy-and-security/" rel="bookmark" target="_blank" title="Permanent Link to Apple Vows …read more

Source: FBI Agents Busted For Planting Hidden Surveillance Microphones In Public Places

    

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"It’s Pretty Much Open Season" – Shoplifting Runs Rampant In California After Rule Changes

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By Tyler Durden

It turns out that thieves are smarter than politicians give them credit for, and thanks to Proposition 47 that passed in late 2014, this is something California is learning the hard way.

Proposition 47 downgraded drug possession and some theft crimes to misdemeanors in order to reduce prison and jail populations, and on that score, the referendum was successful.

However, as with most other targeted laws, Proposition 47 had other unintended consequences that were not considered.

Now that any theft below $950 keeps the crime a misdemeanor, thus ending the possibility of charging those cases as a felony with a potential prison sentence, shoplifting has increased significantly, thus adding to the expense and headache for large and small retailers alike.

Safeway, Target, Rite Aide and CVS say shoplifting has increased at least 15 percent, and in some cases, has doubled since voters approved Proposition 47, and preliminary FBI crime reports show a 12 percent spike in larceny-theft since the measure was passed. In spite of that, Public Policy Institute of California researcher Magnus Lofstrom says it's too early to determine if those numbers had anything to do with Proposition 47.

Well, it may be too early for Lofstrom to tell, but even the police are admitting it is no longer worth it to them to chase misdemeanor theft; “It's not worth it to issue a citation or arrest a suspect who would likely be immediately released because of overcrowding” said Fresno Police Sgt. Mark Hudson.

Small business owner Perry Lutz is seeing first hand what is happening, as his HobbyTown USA is experiencing what he refers to as open season on the drones and other remote controlled toys he sells.

“It's pretty much open season. They'll pick up the $800 unit and just grab it and run out the door.”

It's gotten to the point where thieves are even using calculators to make sure they aren't committing a felony according to Sacramento County assistant district attorney Robin Shakely: “We've heard of cases where they're going into stores with a calculator so they can make sure that what they steal is worth less than $950.”

As shoplifting rings send their people in with calculators, and are recruiting the homeless, low-end drug users, and illegal immigrants to bolster their reach, there are of course those that are pretending that nothing has changed.

One such person is Adam Gelb, director of the public safety performance project at Pew Charitable Trusts, who had this to say:

“The vast majority of offenders just aren't fine-tuning their behavior that way. It's hard to see how raising the level to $950 in California would touch off a property crime wave when raising it to $2,000 in South Carolina six years ago hasn't registered any impact at all.”

We recommend that Adam grabs a coffee with Perry Lutz in order to do a quick reasonableness check on that theory. Or Gelb could just listen to LAPD Capt. John Romero, who sums it up perfectly:

“The law didn't account for that. It did not give an exception …read more

Source: "It’s Pretty Much Open Season" – Shoplifting Runs Rampant In California After Rule Changes

    

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The GOP Finally Gets It: "People Just Don’t Care, Trump Rewrote The Playbook"

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By Tyler Durden

In a shocking moment of clarity, that should also send shivers up the spine of the Democratic party, Republican chairman (and implicity voice of 'the establishment') Reince Priebus admitted on various Sunday talk-shows that campaign traditions don't apply to the so-called Teflon Don noting that “the public just wasn't interested” in his taxes or the various 'stories' that the Deep State is throwing at him. “I don't think the traditional playbook applies.. We've been down this road for a year. And it doesn't apply,” Priebus exclaimed, and why the Clinton campaign is likely scrambling, “He's rewritten the playbook.”

Summing up the reality of the current situation – with attacks coming at presumotive GOP nominee Trump from all sides – NBC News reports that Priebus said…

“I've got to tell you, I think that all these stories that come out – and they come out every couple weeks – people just don't care.”

Voters, Trump told ABC's George Stephanopoulos Friday morning, are not entitled to review his returns before heading to the polls, and the tax rate he pays is “none of your business.” Elsewhere, Trump insisted that not only was there nothing to learn from his taxes, but that the public wasn't interested.

When asked if that meant Trump doesn't have to release his tax returns, Priebus said that would be up to the American people.

“They're going to have to decide whether that's a big issue or not,” Priebus said.

Speaking with Fox News Sunday, Priebus said that voters just want an “earthquake” when host Chris Wallace asked if reports of Trump repeatedly mistreating women bothered him.

The RNC chair argued that voters aren't judging Trump based on his personal life or his past.

“I think people are judging Donald Trump as to whether or not he's someone that's going to go to Washington and shake things up,” Priebus said on ABC. “And that's why he's doing so well.”

And that is why Hillary will need every bit of help from Liberal-leaning newsfeeds, Clinton-connected reporters, and a Deep State desparate to maintain the status quo… no matter what.

…read more

Source: The GOP Finally Gets It: "People Just Don’t Care, Trump Rewrote The Playbook"

    

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IceCap Asset Management: "The Trend Continues"

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By Tyler Durden

Submitted by IceCap Asset Management: April 2016 Letter to Investors

Revenge of the Risotto

ITALY (Rome) – Soft opera soared through the vaulted ceilings. Brunello di Montalcino poured freely in every glass. And then there was the risotto – the exquisitely prepared dish bounded with wild mushrooms, wild boar, and wild thyme. A perfect pairing for the wild bankers and even wilder, government officials. It was only early evening, but the laughter and back slapping was certain to flow into the late morning hours – and deservedly so, after all the Italian overlords had just pulled the wool over not only their 60 million countrymen, but also their dreaded and despised monetary rulers in Frankfurt.

Revenge would be savoured.

GERMANY (Frankfurt) – There was no music, no wine, and worst of all – no risotto. Yes, the European Central Bank (ECB) is based smack dab in the middle of no-fun Germany, but the President of the ECB is 100% Italian. And after 5 years of continuously taping, gluing, and conniving to hold the European financial system together, Mario Draghi was approaching his wits end. With the Germans, French, Spanish, Portuguese, Greeks, and now the Italians sharpening their knives, Draghi certainly isn’t tasting any love.

But what these countries don’t understand, is that you never go against an Italian central banker, when death is on the line – or worse still, when he is denied his risotto.

The Trend Continues

Here at IceCap, we have the privilege of speaking with investors from around the world. Our objective perspective is resonating with investors everywhere which has provided us direct contact with people in Asia, the America’s and Europe. This is an asset we cherish dearly.

And what we find the most interesting is that everyone we speak and email with, all have the very same concerns. Many of these people are every day, average people – they work hard for their money, and are saving for rainy and sunny days.

In the past 3 weeks alone, conversations with investors in Europe, America, Canada and India have all focused on the same topic – interest rates, and more specifically NEGATIVE interest rates.

Think about this for a minute – in normal times, the world’s economies are never in sync. Some are ebbing, while others are flowing, and others are simple standing still.

Yet, today it has become quite apparent that all economies have converged in the same direction – and this is a VERY rare feat.

At IceCap we begin every day the same – we scour data points and news stories to help us change our economic, monetary, and financial markets view. We are not looking for evidence to confirm our view, in fact it is the exact opposite – we want to discover reasons to change our view.

We feel strongly, that adapting this approach will serve as our cross-check, and counter point.

Granted, as nothing moves in a linear line, there will undoubtedly be periods when it appears that our view should be changed. …read more

Source: IceCap Asset Management: "The Trend Continues"

    

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London’s Ex-Mayor Compares The European Union To Hitler

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By Tyler Durden

If the US presidential election has devolved into a comical soundbite free-for-fall, then the UK has its hands full with Brexit, and how the two opposing camps are approaching the UK’s vote to exit the Eurozone on June 23.

On one hand there are the fearmongers who comprise the “stay” campaign, among which such glowing examples as PM David Cameron who last week warned World War III could break out in case of an affirmative vote, followed shortly after by BOE governor Mark Carney warning of recession risk and a sharp plunge in Sterling, while the IMF’s Christine Lagarde likewise chiming in in defense of the status quo.

On the other hand, those in the pro-Brexit “leave” camp have been riding the recent wave of anti-immigrant sentiment sweeping Europe, and have been pushing to portray the increasingly shaky European Union (whose customs union may or may not survive another refugee onslaught) as the reason for UK economic weakness.

This culminated today when ex-London mayor Boris Johnson compared the European Union’s aims to those of Adolf Hitler, arguing that the 28-nation bloc is creating a superstate that mirrors the attempt of the Nazi leader to dominate the European continent.

As AP reports, Johnson, the most prominent political figure arguing that Britain should leave the EU, says the past 2,000 years of European history have been dominated by doomed attempts to unify the continent and recreate the Romans’ golden age.

“The whole thing began with the Roman Empire. I wrote a book on this subject, and I think it’s probably right. The truth is that the history of the last couple of thousand years has been broadly repeated attempts by various people or institutions – in a Freudian way – to rediscover the lost childhood of Europe, this golden age of peace and prosperity under the Romans, by trying to unify it. Napoleon, Hitler, various people tried this out, and it ends tragically.”

He added that “fundamentally, what is lacking is the eternal problem, which is that there is no underlying loyalty to the idea of Europe. There is no single authority that anybody respects or understands. That is causing this massive democratic void.”

While Johnson is correct that Europe desperately needs a loyalty and patriotism ethos, one which is impossible in a union where the political oligarchy remains a group of unelected Brussels bureaucrats even as nationalist tensions have been rising dramatically in the EU’s member states especially over the past year, it was unclear if the Hitler comparison would cross the chasm to convert any of the substantial number of undecided voters, or merely be lost within the two camps’ respective echo chambers.

To be sure, Johnson’s remarks immediately elicited outrage on the part of those campaigning to remain in the EU ahead of a June 23 vote in Britain on whether to stay or leave. The “stay” camp described Johnson’s comments as a desperate effort take the focus off the economic impact such …read more

Source: London’s Ex-Mayor Compares The European Union To Hitler

    

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What’s Next For Apple And The S&P: This Is What The Charts Say

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By Tyler Durden

Following last week’s relentless drop in Apple, and what appears to be a head and shoulders cap to the S&P rally which started with a double bottom in February, two questions posed most frequently by traders are i) what happens to AAPL next and ii) where does the S&P go from here.

We don’t know, since fundamentals clearly dont’ matter while technicals tend to be offset on virtually every step by some new and improved jawboning by central bankers, however, here is one attempt to answer that question by Bank of America’s chief chartist Stephen Suttmeier.

Here are his key takeaways:

  • AAPL breaks key support at $92.50 to expose $82-76. First resistance: $92.50-95.90.
  • S&P 500 tactical head-and-shoulders top watch while below 2075-2085. Break of 2039-2033 needed to confirm this bearish setup.

Some details, first on AAPL:

Apple Inc. (AAPL) has extended lower from the bearish setup highlighted in Chart Talk: 22 Apr 2016. Yesterday’s 90-day price and volume gap down resulted in a close below support going back to mid-2014, at $92.50. While below $92.50-95.90, the bears have control, with risk to chart support at $82 and the April 2014 upside gap at $80.10- $75.87. Should AAPL regain $92.50-95.90, there is plenty of resistance at $98.71- 103.91 (downside gap) and near $108 (downtrend line and falling 200-day MA).

A double bottom started this rally in the S&P 500. Does a head-and-shoulders top end it? The S&P 500 has stalled at 2075-2085 resistance so far this week. While below this resistance, the risk is for a head-and-shoulders top off the late March-to-early May peaks. The rising 50-day MA is acting as support near 2054 and it would take a decisive loss of support at 2039-2033 to confirm the head-and-shoulders top and suggest a pullback toward 1965-1950 (top projection and February double-bottom breakout point). A decisive push above 2075-2085 is required to negate this potentially bearish tactical setup for the S&P 500.

Our take: now that everyone is suddenly turning bearish, especially recent cheerleader Goldman warning of a “big drop” in the days ahead (not to mention Gartman) and chartists seeing sharp downside (not just BofA but UBS recently as well), expect another major round of substantial jawboning from central bankers who can not afford a downward inflection point in the market at this point, especially now that China’s record loan growth has suddenly ground to a halt.

How this may manifest itself is through a few sharp days of “forced buy-ins”, leading to a spike among the most shorted stocks in the days ahead, although now that the weak hands have all covered, it will be far more difficult to unleash the kind of record squeeze that pushed the S&P500 from its February lows of 1820 to just shy of new all time highs.

Barbara Boxer Meltdown Exposes Deep Divisions In Democratic Party

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By Tyler Durden

“Let's hear it for Hillary Clinton,” exclaimed Sen. Barbara Boxer, losing her cool after Bernie Sanders' supporters “bullied” her at the Nevada Democratic convention on Saturday. As BizPacreview reports, Boxer took the Las Vegas stage to raucous boos as her attempt to unify what is obviously as deeply divided a Democratic party as the mainstream would have everyone believe the Republican party is. “I'm for Hillary Clinton and she's for all of us,” she yelled. “Keep on booing and boo yourselves out of this election.”

“I grew up in Brooklyn. I’m not afraid of bullies,” The California senator continued…

“We need civility in the Democratic Party. Civility.”

The supporters of the Vermont socialist were still angered that their charge had lost the Nevada caucus and were having none of it.

She then tried reverse psychology on the angry crowd.

“When you boo me you’re booing Bernie Sanders. Go ahead. Bernie is my friend. You want to boo Bernie, boo me. Go on, you’re booing Bernie. You’re booing Bernie,” she said.

As the boos rained down on Boxer, her tone became more acrimonious as she began to reprimand the malcontents.

A party divided? It appears very much so. Or a nation disgusted at the cronyism of the status quo? After watching the clip above, it seems rather obvious.

…read more

Source: Barbara Boxer Meltdown Exposes Deep Divisions In Democratic Party

    

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