At almost double the $2 billion that many had expected, The Washington Post reports that The White House will request $3.8 billion from Congress in emergency funding to deal with an influx of unaccompanied minors from Central America. Funds would be allocated to send more immigration judges to the southern border, build additional detention facilities and add border patrol agents, to help stem the recent surge of women and children from El Salvador, Guatemala and Honduras.
It appears that having pushed France forcefully into the Russia-China Eurasian, and anti-US camp, the US will now do the same with Germany. Because by infuriating the German population with first refusing to return their gold contained (the legend goes) at the New York Fed, and then with scandal after spying scandal, now the time has come to "punish" Germany's largest banks for the same kind of money laundering that BNP was engaged in. As the NYT and Reuters report, the time has come to shift away from the BNP scandal and focus on what will soon be the Commerzbank and Deutsche Bank fallout. According to the NYT, the money laundering crackdown is "bound for another European financial center: Germany. As NYT adds, correctly, "The Commerzbank investigation features an added twist: The bank is 17 percent owned by the German government. It is unclear whether — as in the BNP case, which led French authorities to intervene on the bank’s behalf — the settlement talks could inflame diplomatic tensions between Washington and Berlin."
- Bond Anxiety in $1.6 Trillion Repo Market as Failures Soar (BBG), as reported first by Zero Hedge
- As Food Prices Rise, Fed Keeps a Watchful Eye (WSJ)
- Yellen’s Economy Echoes Arthur Burns More Than Greenspan (BBG)
- Draghi’s $1.4 Trillion Shot: Silver Bullet or Misfire? (BBG)
- Israel's Netanyahu phones father of murdered Palestinian teen (Reuters)
- Ukraine says forces will press forward after taking rebel stronghold (Reuters)
- Goldman Sachs Brings Forward Rate Forecast as Treasuries Drop (BBG)... you mean rise?
- Super typhoon takes aim at Japan (Reuters)
- Kidnapped Nigerian girls 'escape from Boko Haram abductors' (Independent)
- Merkel says U.S. spying allegations are serious (Reuters)
Risk assets have started the week off on a slightly softer footing but overall volumes are fairly low given the quiet Friday session last week and with the lack of any major weekend headlines. Equity bourses are down between 25-50bp on the day paced by the Nikkei (-0.4%). In China, a number of railway construction stocks are up 3-4% after reports that China Railway Corp will buy around 300 sets of high speed trains and may potentially launch 14 news railway construction projects soon as part of national investment plans.
According to WaPo, the files on intercepted Americans "have a startlingly intimate, even voyeuristic quality. They tell stories of love and heartbreak, illicit sexual liaisons, mental-health crises, political and religious conversions, financial anxieties and disappointed hopes. The daily lives of more than 10,000 account holders who were not targeted are catalogued and recorded... résumés from job hunters and academic transcripts of schoolchildren. Scores of pictures show infants and toddlers in bathtubs, on swings, sprawled on their backs and kissed by their mothers. In some photos, men show off their physiques. In others, women model lingerie, leaning suggestively into a webcam or striking risque poses in shorts and bikini tops."
The biggest congressional leakage scandal in the past year is the most recent one to cross the rabit hole of all-out absurdity: According to Reuters, the Ways and Means panel said on Friday it should not have to comply with a federal regulator's demand for documents sought for an insider-trading probe involving the staff director of a subcommittee and a lobbyist. The House Ways and Means Committee argued in a court filing that U.S. District Judge Paul Gardephe in New York should deny the Securities and Exchange Commission's attempt to subpoena documents from the committee and its healthcare subcommittee staff director Brian Sutter.
In the mid-sixties at the height of the “social revolution” the line between democratic benevolence and outright communism became rather blurry. The Democratic Party, which controlled the presidency and both houses of Congress, was used as the springboard by social engineers to introduce a new era of welfare initiatives enacted in the name of “defending the poor”, also known as the “Great Society Programs”. These initiatives, however, were driven by far more subversive and extreme motivations, and have been expanded on by every presidency since, Republican and Democrat alike.At Columbia University, sociologist professors Richard Cloward and Francis Fox Piven introduced a political strategy in 1966 that they believed would eventually lead to the total transmutation of America into a full-fledged centralized welfare state (in other words, a collectivist enclave). The spearpoint of the Cloward-Piven strategy involved nothing less than economic sabotage against the U.S..
On July 4th, the United States will celebrate Independence Day once again. But who in the world are we trying to kid? Our founders intended to create a society where freedom and liberty would be maximized, but that is not what America looks like today. Instead, we live in a country that literally has millions of laws, rules and regulations. We have a government that is obsessed with spying on the entire planet and that tries to watch, monitor, track and record as much information about all of us as it possibly can. A “Big Brother” surveillance grid is being constructed all around us, and our militarized police are becoming more brutal with each passing day. Sadly, most Americans don’t seem too alarmed by any of this. In fact, a new Gallup survey has found that 79 percent of Americans are “satisfied” with the level of freedom in this nation. That is a very alarming statistic. If most people believe that everything is “just fine”, then our leaders are going to feel free to keep doing the same things that they have been doing.
The battle for favoritism among the 'apparent' leaders in Iraq continues. Russia just delivered the second batch of Sukhoi fighter jets (which will be flown by Iraqi pilots and "are ready to provide air support to the armed forces"), and the US unloaded 4,000 additional Hellfire missiles to support Iraq's fight against the Islamist insurgents. While this morning the intelligentsia of mainstream media proclaimed "the situation in Iraq is calming down" predicated on the fact that oil prices were lower and stocks at record highs, we suspect the additional war material to Iraq will do nothing but increase the determination of the "Islamic State" to increase its Caliphate.
Long before 1984 gave us the adjective “Orwellian” to describe the political corruption of language and thought, Thucydides observed how factional struggles for power make words their first victims, "Words had to change their ordinary meaning and to take that which was now given them." Orwell later explained the reason for such degradation of language, "Political speech and writing are largely the defense of the indefensible." The bottom-line is that tyrannical power and its abuses comprise the "indefensible" that must be verbally disguised; which seems to have never been more appropriate than now in the stream of 'disguised' words we are fed every day...
Having had his omnipotence chipped away at last week, President Obama has - seemingly - been pushed too far by the Supreme Court's decision on contraception and Obamacare this morning: The White House stated...
SUPREME COURT DECISION ON CONTRACEPTION COVERAGE JEOPARDIZES HEALTH OF WOMEN EMPLOYED BY THESE COMPANIES
WILL WORK WITH CONGRESS TO MAKE SURE WOMEN AFFECTED BY RULING WILL HAVE SAME ACCESS TO CONTRACEPTION
WILL CONSIDER WHETHER PRESIDENT CAN ACT ON HIS OWN TO MITIGATE EFFECT OF SUPREME COURT RULING
Totalitarian? You decide... One wonders if the phrase "do you know who I am?" was uttered this morning?
U.S. Relies On Law from Governments Which Don’t Even HAVE a Constitution to Justify Assassination of U.S. Citizens By DroneSubmitted by George Washington on 06/30/2014 13:01 -0400
U.S. Relies On Law of Non-Constitutional Countries
Moments ago the US Supreme Court - the same Supreme Court which two years ago upheld Obamacare but as a tax, something the administration has since sternly denied - dealt Obamacare its biggest legal blow to date, and alternatively handing Obamacare opponents their largest court victory yet, when in a 5-4 vote SCOTUS ruled that business owners can object on religious grounds to a provision of President Barack Obama's healthcare law that requires closely held private companies to provide health insurance that covers birth control.
- Yellen Spending Recipe Lacking Key Ingredient: Bigger Wage Gains (BBG)
- Ukraine signs trade agreement with EU, draws Russian threat (Reuters)
- GM Documents Show Senior Executive Had Role in Switch (WSJ)
- Australian Report Postulates Malaysia Airlines Flight 370 Lost Oxygen (WSJ)
- World’s Biggest Debt Load Lures Distressed Funds to China (BBG)
- GPIF Rushing Into Riskier Assets Before Ready, Okina Says (BBG)
- Japan Prices Rise Most Since ’82 on Tax, Utility Fees (BBG)
- Italian Debt Swells to Rival Germany as Bond Yields Slide (BBG)
- China’s Manhattan Project Marred by Ghost Buildings (BBG)
- BOE's Carney Says Rates Won't Rise to Levels Previously Considered Normal (WSJ)