Update: The official and black-market Peso has collapsed further today to new record lows.
It is actually quite sad to watch the continued downfall of Argentina's economy under the inept ministrations of its government. The only good thing that can possibly come from this is that it will set yet another example for others so they may avoid making similar mistakes. Unfortunately the example is being set on the backs of the country's citizens, who are seemingly forced to live from crisis to crisis. Politicians rarely pay the price for their atrocious policies, and we are quite sure Ms. Kirchner and her cronies have feathered their nests in ways the average citizen cannot even dream of (most recently, corruption allegations have caught up with Ms. Kirchner's vice president. Rampant government corruption has long been a hot topic in Argentina under Ms. Kirchner's rule). It is not as though Argentina didn't have great potential. If only politicians would leave its economy alone and stopped inflating the currency into oblivion, the country could easily and quickly regain its former prosperity.
Ah, the perils of European power politics. A day after France revealed its new government, the person who so eagerly stepped in after DSK's infamous and choreographed fall from grace and the IMF presidency (not to mention his derailed French presidential ambitions, greenlighting Hollande as what would become the worst French president ever), Christine Lagarde is about to be DSKed herself after "someone" clearly has set their sights on the former French finance minister. Several hours ago the news hit that a French court has put Christine Lagarde, head of the International Monetary Fund, under a formal probe for negligence in a corruption investigation dating back to her days as finance minister.
The Status Quo is desperate to mask the declining fortunes of those who earn income from work, and the Misery Index 2.0 strips away the phony facade of bogus unemployment and inflation numbers.
Outspoken Union Theological Seminary professor Cornel West goes where very few 'thinkers-of-color' have had the courage to go in this interview with Salon's Thomas Frank: "The thing is, [Obama] posed as a progressive and turned out to be counterfeit. We ended up with a Wall Street presidency, a drone presidency, a national security presidency. The torturers go free. The Wall Street executives go free... we ended up with a brown-faced Clinton. Another opportunist. Another neoliberal opportunist... So you got low-quality black leadership. Al Sharpton is who? He’s a cheerleader for Obama... Eric Holder won’t touch the Wall Street executives; they’re his friends... I think a post-Obama America is an America in post-traumatic depression."
This essay is not intended to address a crisis that may be occurring on the border at this time. We make no comment on that. Nor does it discuss the issues around war, such as how to deal with citizens of enemy nations. This essay is not a policy proposal, it does not set out, for example, when an immigrant can become a citizen and attain the vote or what to do to immigrants who commit crimes. It has but one purpose: to enumerate and respond to the common arguments used in favor of an impenetrable and guarded border fence to shut down immigration.
Americans must realize an important fact: There is no power over us but that which we give away. The original intent of our republic is that the people ARE the government — not a select few elitists handpicked by corporate bankers. Politicians are supposed to be our employees, not a ruling class that sits above the populace. The current growing conflict between the citizenry and the government is igniting exactly because our government does not represent the common man anymore. The government is not “by the people, for the people.” It is a separate entity, representing corrupt and hostile parties. It cannot be changed from within.
Amid his corruption indictments, Texas Governor Rick Perry is making more headlines today. During a CNN interview, Perry exclaimed "it's possible ISIS may have crossed into The United States from Mexico." Speaking earlier at The Heritage Foundation, Perry blasted, "they need to be eliminated, and they need to be eliminated now."
- FTW: Europe Stocks Rise as Data Signals Need for Stimulus (BBG)
- More de-escalation: Dozens die in Ukraine in street battles, Donetsk shelling (Reuters)
- Calm largely holds in Missouri after grand jury opens shooting investigation (Reuters)
- Attorney General Eric Holder Vows Thorough Probe of Ferguson Shooting (WSJ)
- World’s Biggest Wealth Fund Slows Emerging Market Investment (BBG)
- Market Chilly to Argentine Debt Proposal (WSJ)
- Israeli air strike kills three Hamas commanders in Gaza (Reuters)
- Retooled Hamas Bloodies Israel With Help From Hezbollah (BBG)
- Investors Pour Into Vanguard, Eschewing Stock Pickers (WSJ)
- Fed Debates Early Rate Increases (WSJ)
The Founding Fathers Fought the Revolutionary War to Stop the Type of Militarized Police We Now Have In the U.S.Submitted by George Washington on 08/20/2014 00:29 -0500
- Just how many rats are there? Steven Cohen's Firm Loses Another Top Executive (WSJ)
- Iceland Sees a Potential Volcanic Eruption, and Airlines Cower (Bloomberg)
- Iraqi forces battle to drive jihadists from Saddam's home town (Reuters)
- Israel, Palestinians Agree to Extend Gaza Truce for 24 Hours (BBG)
- Pimco now buying junk (BusinessWeek)
- Pakistan arrests 147 in Punjab towns as protests in capital continue (Reuters)
- Ex-Rabobank Employee Pleads Guilty in Libor-Rigging Probe (BBG)
- Ebola Orphans Targeted by Aid Groups as Newest Victims (BBG)
- Two California youths accused of plotting high school shooting spree (Reuters)
- Only Rich Know Wage Gains With No Raises for U.S Workers (BBG)
As classic Ferraris break records on the shores at Pebble Beach, the "poor" rich-man's (and girl's) best friend (fine-wine and diamonds) has tumbled to 4-year lows. On the heels of a crackdown on corruption in China, as Bloomberg notes, Fine Wine prices have plunged over 30% from July 2011 highs and the end of the "show-off" era in Xi's new normal has sent 1 carat dimaond prices also down over 30% from their highs. It would appear the world's wealthiest are done with such small increments of wealth as fine wines and diamonds, preferring $100 million apartments and $38 million ferraris.
It is the effective manipulation of our belief systems that enslaves us to the present day insanity.
The ragged Keynesian excuse that all will be well in Japan once the jump in the consumption tax from 5% to 8% is fully digested is false. Here’s the problem: this is just the beginning of an endless march upwards of Japan’s tax burden to close the yawning fiscal gap left after the current round of tax increases, and to finance its growing retirement colony. There is no possibility that Abenomics will result in “escape velocity” Japan style and that Japan can grow its way out of it enormous fiscal trap. Instead, nominal and real growth will remain pinned to the flatline owing to peak debt, soaring retirements, a shrinking tax base and a tax burden which will rise as far as the eye can see. Call that a Keynesian dystopia. It is a cautionary tale for our times. And Japan, unfortunately, is just patient zero.
Texas Governor, and 2016 Presidential hopeful, Rick Perry has been indicted by a grand jury. Rather ironically, as AP reports, Perry carried out a threat to veto funding for state prosecutors investigating public corruption, promising publicly to nix $7.5 million over two years for the public integrity unit unless District Attorney Rosemary Lehmberg (who pled guilty to drunk driving) resigned. He was indicted by an Austin grand jury on felony counts of abuse of official capacity (maximum punishment 5-99 years in prison) and coercion of a public servant (2-10 years in prison). Perry is the first Texas governor indicted since 1917. Full indictment below. We have one word... oops!