http://www.zerohedge.com/fullrss2.xml en China On Alert For "Death Of Night" Trump Tweets http://www.zerohedge.com/news/2017-01-18/china-alert-death-night-trump-tweets <p><a href="https://www.tradingfloor.com/posts/china-on-alert-for-trumps-death-of-night-tweets-8394279">Submitted by Saxo Bank&#39;s Martin O&#39;Rourke via TradingFloor.com,</a></p> <ul> <li>Donald Trump&#39;s inauguration to take place on Friday</li> <li>China&#39;s relationship with president-elect off to difficult start</li> <li>Trump angered China by fielding call from Taiwanese counterpart after victory</li> <li>Trump&#39;s anti-supranationalism might favour China if TPP is abandoned &mdash; Wei Li</li> <li>Currency manipulation attacks not borne out by long term &mdash; Wei Li</li> <li>Anti-trade rhetoric difficult to sustain in intricate global trade chain &mdash; Wei Li</li> <li>Trumpflation trade may boost commodity exporters out of China</li> <li>Geopolitical risk possible but markets have been adept at absorbing pain &mdash; Wei Li</li> </ul> <p><em><a href="https://www.tradingfloor.com/topics/us-election-2016?c">Read more on Saxo&#39;s page dedicated to Trump&#39;s inauguration</a></em></p> <div> <p><img alt="k" src="https://www.tradingfloor.com/images/article/max608w/cc7e226c-b39d-439b-becf-feeccdfdeeb6.jpg" style="height: 400px; width: 600px;" /></p> <p><em>Chinese investors will keep a close eye on developments around Donald Trump&#39;s inauguration on Friday.</em></p> <p>Among many strands that are worrying investors in the run up to the inauguration of Donald Trump on January 20, the president-elect&#39;s foreign policy pivot towards Moscow and intensely confrontational stance towards China lurks as a deeply disturbing seismic-shift in geopolitics.</p> <p><a href="https://www.tradingfloor.com/posts/trigger-happy-trump-stalks-baffled-china-8313894">Trump&#39;s been going after China for some time now</a>. If that looked like just a good bit of old-fashioned scapegoating in the US presidential campaign designed to create sweet music with his highly disaffected hinterland, there has, if anything, been a ratcheting up of the rhetoric ever since his victory was confirmed on November 8.</p> <p>When he fielded that call from Taiwanese president Tsai Ing-wen in December, Beijing offered him a diplomatic path out of the maze by trying to suggest Tsai had lured the president-elect into a trap. Trump not only snubbed the lifeline, he reinforced the point a few days later by questioning the whole One-China approach that has defined US policy since 1979 and then <a href="https://www.tradingfloor.com/posts/morning-markets-trump-spells-it-out-to-china-8330704">lambasting China for the seizure of a US drone in disputed waters before Christmas</a>.</p> <p>The tone mirrors Trump&#39;s pre-election mantra that China manipulated its currency to help its export sector and stole US manufacturing jobs and has seemingly set Washington on a collision course with Beijing that could emerge as one of the fundamental themes of the next four years. We are, after all, talking about the two biggest economies in the world.</p> <p>It&#39;s certainly got Beijing on red alert, says Wei Li, iShares head of investment strategy EMEA, in interview with TradngFloor this week.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em><strong>&quot;There are some really unexpected things happening with the Trump administration and there are no doubt a lot more people paying attention to Twitter at 2am in the night,&quot; Wei Li says, in reference to Trump&#39;s liking for an unguarded tweet or two in the dead of night. &quot;We are operating in a very different environment where markets are reacting and adapting to changes that have not been seen for a good decade or more.&quot;</strong></em></p> </blockquote> <p>Wei Li says that it is important to put Trump&#39;s criticisms under the microscope and see if they stand up to scrutiny. The currency manipulation charge is once such hotspot.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em><strong>&quot;It&#39;s actually quite difficult to say where the Chinese offshore yuan should be trading so labelling it as &#39;currency manipulation&#39; is quite a statement,&quot; she says. &quot;The Chinese yuan devaluation fear started becoming a mainstream rhetoric in the past couple of years but in years prior to that the Chinese yuan had been appreciating.&quot;</strong></em></p> </blockquote> <p>USDCNH at the end of 2016 came within a whisker of breaking through the key 7.0 handle before&nbsp;concerted efforts&nbsp;including&nbsp;intervention by the People&#39;s Bank of China and slowing capital outflows stabilised dragging the pair back to the 6.800 zone.</p> <p>USDCNH was at 6.8575 at 1341 GMT, January 16, according to SaxoTraderGO.</p> <p><em>USDCNH came within a whisker of breaking 7.0 at the end of 2016 and the steady devaluation of the offshore yuan has given Trump fuel for a pernicious campaign</em><br /><img alt="k" src="https://www.tradingfloor.com/images/article/max608w/296c3d14-578e-47de-99a1-f27cd6670c3e.png" style="height: 386px; width: 600px;" /></p> </div> <div> <p><em>Source: SaxoTraderGO</em></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;The choice in China was seen as one in which you are either dealing with a businessman like trump where the focus is around profit and figures and the alternative of Hillary Clinton, the continuation effectively of the status quo and a more classic and experienced politician,&quot; says Chinese-native Wei Li. &quot;There are still a lot of details as to how the relationship will pan out...<strong>but if the anti-trade rhetoric were to continue, you could see that hitting growth potential.&quot;</strong></p> <p>&nbsp;</p> <p>&quot;But it&#39;s hard to see the rhetoric continuing on the same scale because of the very intricate nature of the global supply chain,&quot; says the London-based analyst. <strong>&quot;You can&#39;t just write off one aspect of the chain and not consider the impact on the rest so there are a lot of nuanced factors at play and it is probably too early to say what the impact will be on the Sino-US trade relationship.&quot;</strong></p> </blockquote> <p><img alt="l" src="https://www.tradingfloor.com/images/article/max608w/53c28e78-911c-425a-93f0-4983ac3d4b35.jpg" style="height: 400px; width: 600px;" /></p> <p><em>&nbsp;Wei Li: &#39;If the US walks away from TPP, then this could create an opportunity for China.&#39; </em></p> <p>China, says Wei Li, could even benefit from Trump&#39;s clear anti-internationalism stance if he sees through his promise to abandon the Trans-Pacific Partnership.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&quot;It&#39;s clear that if the US walks away from TPP, then this could create an opportunity for China in the global trade picture if it leaves a gap,&quot;</strong> she says. &quot;TPP was a deal that included many countries but [not] China so if that deal does not happen in its original scale, then it&nbsp;may not&nbsp;be a bad thing for China in terms of its market share of global trade.&quot;</p> <p>&nbsp;</p> <p><strong>&quot;There has to be more room to go in the reflation trade, which could also provide quite a stimulus to Chinese commodity exports if consumer goods come under demand,&quot;</strong> she adds. &quot;We track US data and factor in other content through our in-house GPS growth monitor and we were ahead of consensus in 2016 and continue to be for 2017 even though there has been some catch up recently.&quot;</p> <p>&nbsp;</p> <p>The monitor still points to upside growth.&quot;</p> </blockquote> <p>Certainly, the run up in global equities in the last two months that took the Dow Jones Index to within a point of cracking 20,000 seems to indicate that markets are relatively benign about the ongoing Sino-US relationship.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;The way that markets have reacted and investor positioning seems to show that <strong>any tailrisk of a political nature is not fully priced in,&quot; </strong>says Wei Li.</p> <p>&nbsp;</p> <p>&quot;Investors have found <strong>selling volatilities via Vix futures has been profitable because they have seen vols spikes don&#39;t last</strong> and this has been a good strategy,&quot; she adds.</p> <p>&nbsp;</p> <p>&quot;&quot;Markets have already shown they are adept and resilient at handling Brexit, Trump&#39;s election and the Italian referendum.&quot;</p> <p>&nbsp;</p> <p><strong><em>&quot;The nature of geopolitical tail risk is it is hard to predict ahead of when it happens but what we have seen is that risk volatility has not been prolonged.&quot;</em></strong></p> </blockquote> <p><img alt="j" src="https://www.tradingfloor.com/images/article/max608w/0fdb354c-b7ef-44e9-9807-1c137cabf182.jpg" style="height: 471px; width: 600px;" /></p> <p><em>China - mysterious, inscrutable and beyond Donald Trump&#39;s grasp. </em></p> </div> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="578" height="346" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170118_china.jpg?1484781247" /> </div> </div> </div> http://www.zerohedge.com/news/2017-01-18/china-alert-death-night-trump-tweets#comments American people of German descent Business China Climate change skepticism and denial Donald Trump Donald Trump Dow 30 Economy GPS International reactions to the United States presidential election International trade Li Wei Market Share People's Bank of China Political positions of Donald Trump Saxo Bank The Apprentice Trans-Pacific Partnership Trump Administration Twitter Twitter Volatility WWE Hall of Fame Yuan Thu, 19 Jan 2017 03:15:00 +0000 Tyler Durden 585799 at http://www.zerohedge.com Lockheed Agrees To Cut F-35 Price Below $100 Million In Latest Victory For Trump http://www.zerohedge.com/news/2017-01-18/lockheed-agrees-cut-f-35-price-below-100-million-latest-trump-victory <p><strong>Less than a month after president-elect Trump first tweeted about the F-35&#39;s high costs</strong>, and a week after he brought up the F-35 in his first press conference, <a href="http://www.reuters.com/article/us-lockheed-pentagon-idUSKBN15308A">Reuters reports</a> that The U.S. Department of Defense and Lockheed Martin are close to deal for a contract worth almost $9 billion as <strong>negotiations are poised to bring the price per F-35 below $100 million for the first time</strong>.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_F35.jpg"><img height="291" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_F35_0.jpg" width="600" /></a></p> <p><a href="https://www.washingtonpost.com/news/checkpoint/wp/2017/01/13/lockheed-martin-ceo-tells-trump-the-cost-of-f-35-will-be-significantly-lower/?utm_term=.38c617129925">The Washington Post notes that in recent months</a>, the president-elect has not been shy about taking to social media to criticize or heap praise on individual companies and military programs.</p> <p>A Dec. 6 tweet bashed Chicago-based Boeing for what he referred to as the<strong> &ldquo;out of control&rdquo; cost of the Air Force One presidential airplane. </strong>Weeks later he turned in Boeing&rsquo;s favor at the expense of Lockheed, tweeting that he had <strong>asked the company to &ldquo;price out a comparable F-18 Super Hornet&rdquo; because of the F-35&rsquo;s high costs</strong>.</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Based on the tremendous cost and cost overruns of the Lockheed Martin F-35, I have asked Boeing to price-out a comparable F-18 Super Hornet!</p> <p>&mdash; Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/812061677160202240">December 22, 2016</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>He also briefly brought up the F-35 in a Wednesday news conference intended to clarify his business conflicts, <strong>saying he would &ldquo;do some big things&rdquo; with the program and find a way to trim costs and improve the plane</strong>.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_F351.jpg"><img height="295" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_F351_0.jpg" width="600" /></a></p> <p>And then,<a href="https://www.washingtonpost.com/news/checkpoint/wp/2017/01/13/lockheed-martin-ceo-tells-trump-the-cost-of-f-35-will-be-significantly-lower/?utm_term=.38c617129925"> after emerging from a meeting with President-elect Donald Trump at Trump Tower in New York last Friday,</a> Lockheed Martin chief executive Marillyn Hewson told reporters that the Bethesda, Md.-based defense giant is close to a new contract deal that would cut the cost of the F-35 Joint Strike Fighter program and also create jobs.</p> <p><iframe frameborder="0" height="290" scrolling="no" src="//www.washingtonpost.com/video/c/embed/f974487e-d9cc-11e6-a0e6-d502d6751bc8" width="480"></iframe></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;We had the opportunity to talk to [Trump] about the F-35 program, and I certainly share his views that we need to get the best capability to our men and women in uniform and we have to get it at the lowest possible price,&rdquo; Hewson said.</p> <p>&nbsp;</p> <p><strong>&ldquo;So I&rsquo;m glad I had the opportunity to tell him that we are close to a deal that will bring the cost down significantly from the previous lot of aircraft to the next lot of aircraft and moreover it&rsquo;s going to bring a lot of jobs to the United States.&rdquo;</strong></p> </blockquote> <p>Which leads to tonight&#39;s news, <a href="http://www.reuters.com/article/us-lockheed-pentagon-idUSKBN15308A">via Reuters</a>, that they are close to deal for <strong>a contract worth almost $9 billion as negotiations are poised to bring the price per F-35 below $100 million for the first time</strong>, people familiar with the talks said Wednesday.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>Talks are still ongoing for the tenth batch of stealthy fighter jets with a deal for 90 planes expected to be announced by the end of the month, three people said on condition of anonymity.</strong></p> <p>&nbsp;</p> <p>A Lockheed representative declined to comment and a representative for the fighter program said negotiations are ongoing.</p> <p>&nbsp;</p> <p><strong>The U.S. Defense Department expects to spend $391 billion in the coming decades to develop and buy 2,443 of the supersonic warplanes. </strong>Though the F-35 program has been criticized by Trump as too expensive, the price per jet has already been declining. Lockheed, the prime contractor, and its partners have been working on building a more cost-effective supply chain to fuel the production line in Fort Worth, Texas.</p> <p>&nbsp;</p> <p>The overtures from the incoming administration may have had some effect, but Lockheed&#39;s F-35 program manager Jeff Babione said last summer that <strong>the price of the F-35A conventional takeoff and landing version of the jet would drop to under $100 million per plane in this contract for the 10th low-rate production batch.</strong></p> </blockquote> <p>*&nbsp; *&nbsp; *</p> <p>Another victory for Trump? Or as John Harwood would say, this would probably have happened anyway...</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="785" height="381" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170118_F35.jpg?1484794527" /> </div> </div> </div> http://www.zerohedge.com/news/2017-01-18/lockheed-agrees-cut-f-35-price-below-100-million-latest-trump-victory#comments Aircraft Aviation Boeing Boeing F/A-18E/F Super Hornet Carrier-based aircraft Climate change skepticism and denial Donald Trump Donald Trump Joint Strike Fighter program Lockheed Martin Lockheed Martin F-35 Lightning II Military aviation Monoplanes Reuters Stealth aircraft U.S. Defense Department U.S. Department of Defense Thu, 19 Jan 2017 03:02:54 +0000 Tyler Durden 585817 at http://www.zerohedge.com Pittsburgh Mall Once Worth $190 Million Sells For $100 http://www.zerohedge.com/news/2017-01-18/pittsburgh-mall-once-worth-190-million-sells-100 <p>We have frequently noted the precarious state of the U.S. mall REITs (see "<a href="http://www.zerohedge.com/news/2016-05-25/myopic-markets-looming-mall-reits-massacre">Myopic Markets &amp; The Looming Mall REITs Massacre</a>" and "<a href="http://www.zerohedge.com/news/2016-08-06/gpp-property-sales-indicate-commercial-real-estate-values-are-crashing-next-shoe-dro">Is CMBS The Next "Shoe To Drop"? GGP Sales Suggest Commercial Real Estate Crashing</a>"), but the epic collapse of the Galleria at Pittsburgh Mills paints a uniquely horrific outlook for mall operators.&nbsp; The 1.1 million square foot mall, once valued at $190 million after being opened in 2005, sold at a foreclosure auction this morning for $100 (yes, not million...just $100).&nbsp; According to <a href="http://pittsburgh.cbslocal.com/2017/01/18/pittsburgh-mills-mall-scheduled-for-foreclosure-auction/">CBS Pittsburgh</a>, the mall was purchased by its lender, Wells Fargo, which credit bid it's $143 million loan balance, which was originated in 2006, to acquire the property.</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Pittsburgh Mills mall auctioned off for a hundred bucks. Bid by Wells Fargo which is holding 149 Mill. Debt on mall.</p> <p>— PAUL D. MARTINO (@PMARTKDKA) <a href="https://twitter.com/PMARTKDKA/status/821765699865604097">January 18, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>&nbsp;</p> <p>Like many malls around the country, Pittsburgh Mills has suffered the consequences of weak traffic amid tepid demand from the struggling U.S. consumer resulting in massive tenant losses.&nbsp; According to the <a href="http://triblive.com/local/valleynewsdispatch/11779614-74/mall-sale-fargo">Pittsburgh Tribune</a>, the <strong>mall is only 55% occupied and was last appraised for $11 million back in August.&nbsp; </strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The value of the mall has been plummeting since it opened in July 2005. Once worth $190 million, it was appraised at $11 million in August.</p> <p>&nbsp;</p> <p>The mall has lost a number of key tenants over the years, including a Sears Grand store. The mall's retail space is nearly half empty, with about 55 percent occupied.</p> <p>&nbsp;</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2017/01/18/2017.01.18%20-%20Pittsburgh%20Mills%202_0.JPG" alt="Mall" width="600" height="388" /></p> </blockquote> <p>&nbsp;</p> <p>Of course, <a href="http://www.zerohedge.com/news/2017-01-17/dudley-housing">New York Fed President Bill Dudley laid out a very compelling case for retailers</a> yesterday if he can just convince American homeowners to commit the same mistakes they made back in 2006 by repeatedly withdrawing all of the equity in their homes to fund meaningless shopping sprees.&nbsp; So it's probably safe to keep buying those mall REITs...afterall those 3% dividend yields are amazing alternatives to Treasuries and you're basically taking the same risk...assuming you overlook the billions of property-level debt that ranks senior to your equity position. &nbsp; </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><a href="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2017/01/18/2017.01.18%20-%20Mall%20REITS.JPG"><img src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2017/01/18/2017.01.18%20-%20Mall%20REITS_0.JPG" alt="Mall REITS" width="600" height="343" /></a></p> </blockquote> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="704" height="435" alt="" src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2017.01.18%20-%20Pittsburgh%20Mills.JPG?1484764303" /> </div> </div> </div> http://www.zerohedge.com/news/2017-01-18/pittsburgh-mall-once-worth-190-million-sells-100#comments Bill Dudley Business Commercial Real Estate Greendale Mall Hospitality New York Fed New York Fed Pittsburgh Mills Real estate Real estate investment trust REITs Sears Simon Property Group Tribune Wells Fargo Thu, 19 Jan 2017 02:50:00 +0000 Tyler Durden 585770 at http://www.zerohedge.com China Central Bank Injects A Record 1.035 Trillion In Bank Liquidity This Week http://www.zerohedge.com/news/2017-01-18/china-central-bank-injects-record-1035-trillion-bank-liquidity-week <p>Heading into the Chinese Lunar New Year, local banks are suddenly starved for liquidity like never before. On Tuesday China’s benchmark money-market rate jumped the most in two years, with unprecedented cash injections by the central bank being overwhelmed by demand before the Lunar New Year holidays.</p> <p>Demand for cash in China tends to increase before the Lunar New Year holidays, when households withdraw money to pay for gifts and get-togethers. Month-end corporate tax payments are adding to the pressure this time, with the break running from Jan. 27 through Feb. 2. At that point the PBOC usually steps in with liquidity "injections" in the form of reverse repos. However, what it has done this year is literally off the charts. </p> <p>On Wednesday, the People’s Bank of China put in a net 410 billion yuan ($60 billion) through open-market operations, the biggest daily "injection" on record. Despite this massive boost in liquidity, the interbank seven-day repurchase rate still jumped 35 basis points, the most since December 2014, to 2.76 percent, according to weighted average prices. Yesterday, the overnight repo rate rose 10 basis points to 2.50 percent, the highest since April 2015, according to weighted average prices. </p> <p>So, with liquidity still scarce, moments ago on Thursday morning, the PBOC added another net injection of 190 billion consisting of 100Bn in 7-day repo and 150BN in 28-day repos, offset by 60bn yuan in previous loans maturing.</p> <p>As a result, <strong>the PBOC has injected a net of 1.035 trillion yuan via reverse repos so far this week, an all time high.</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/01/15/PBOC%20liquidity%20injection.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/01/15/PBOC%20liquidity%20injection_0.jpg" width="500" height="310" /></a></p> <p>It was unclear if the rise in 7-day interbank repo rate had continued to rise. </p> <p>“The PBOC aims to ensure that the liquidity situation remains adequate, while the 28-day reverse repo is apparently targeted at covering the holidays,” said Frances Cheung, head of rates strategy for Asia ex-Japan at Societe Generale SA. “There could also be preparation for any indirect tightening impact from potential outflows.”</p> <p>Liquidity conditions are under pressure also because loans are due to mature under the Medium-term Lending Facility, according to Long Hongliang, a trader at Bank of Hebei Co. in Beijing. There are 216.5 billion yuan of MLF contracts maturing this week, data compiled by Bloomberg show. The PBOC offered 305.5 billion yuan of loans to lenders using the tool on Jan. 13, compared with 105.5 billion yuan due that day.</p> <p>As <a href="https://www.bloomberg.com/news/articles/2017-01-18/pboc-cash-injections-surge-to-record-60-billion-before-holidays">Bloomberg notes</a>, China’s central bank has been offering more 28-day reverse repos than one-week loans in the past two weeks, while curbing the injection of cheaper, short-term funds amid efforts to lower leverage in the financial system. It drained a net 595 billion yuan in the first week of January, before switching to a net injection of 100 billion yuan last week as the seasonal funding demand started to emerge. However, this week's injection so far of over CNY 1 trillion suggests that there may be something more to the banks' liquidity needs than simple calendar action.</p> <p>&nbsp;</p> <p></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="872" height="540" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/PBOC%20liquidity%20injection.jpg?1484794022" /> </div> </div> </div> http://www.zerohedge.com/news/2017-01-18/china-central-bank-injects-record-1035-trillion-bank-liquidity-week#comments Business Central banks China Economic policy Economy Financial markets Internationalization of the renminbi Market liquidity Monetary policy Money Open market operation People's Bank of China Renminbi Repurchase agreement Reverse Repo Systemic risk Yuan Thu, 19 Jan 2017 02:47:33 +0000 Tyler Durden 585815 at http://www.zerohedge.com Neither Intelligent Nor Wise, But Definitely Dangerous http://www.zerohedge.com/news/2017-01-18/neither-intelligent-nor-wise-definitely-dangerous <p><a href="https://straightlinelogic.com/2017/01/17/neither-intelligent-nor-wise-but-definitely-dangerous-by-robert-gore/"><em>Submitted by Robert Gore via StraightLineLogic.com,</em></a></p> <p><strong>The one adjective that best describes the Deep State is &ldquo;soulless.&rdquo;</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_deep.jpg"><img height="337" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_deep_0.jpg" width="600" /></a></p> <p><strong>If you stay up with current events and read widely enough, especially non-mainstream media, you can often detect the Deep State and its works.</strong> Precise delineation is impossible, but the Deep State is the top ranks of the intelligence agencies, military, Departments of State, Homeland Security, Defense, Treasury, and Justice, the Federal Reserve, a myriad of banks, corporations, law firms, foundations, universities, and powerful behind-the-scenes string-pullers. When SLL talks about the Deep State, it is from the same vantage point as the blindfolded Indians describing the elephant: an admittedly limited and ignorant view of an amorphous entity that does its best to obscure itself to outsiders. <strong>Deep Staters often hide what they&rsquo;re doing even from other Deep Staters.</strong></p> <p>The Deep State may have had its genesis in the late 1800s, when powerful business, financial, and political figures came together to push passage of the income tax amendment and the Federal Reserve Act, essentials for their desire to dramatically expand the power of the federal government. <strong>By the end of the second world war, it had coalesced around two unwavering convictions: the Deep State should run the United States government, and the United States government should run the world.</strong> These were not the whispers and murmurs of a super-secret cabal, they were openly discussed by policy makers, the media, and academia in the United States and Great Britain, the junior member of a world-dominating Anglo-American axis.</p> <p>For over four decades, the Deep State depicted the Soviet Union as an existential threat, justifying their consolidation of power, US government global intervention, and repression at home. It gave itself a moral <em>Get Out of Jail Free</em> card: dastardly Soviet tactics had to be fought with dastardly American tactics. Despite ritualistic expressions of regret: &ldquo;It&rsquo;s a damn shame we have to do this, but such is the nature of our enemy,&rdquo; many in the military and intelligence services relished that aspect of their jobs. Few were called to account for their reprehensible deeds, many of which will remain forever unexposed.</p> <p><strong>While it was Republican Dwight Eisenhower who warned of the &ldquo;military-industrial complex&rdquo; in his farewell address, most of what little public opposition that complex and the intelligence agencies have received since then has come from Democrats.</strong> After the Bay of Pigs fiasco, President Kennedy fired CIA chief Allen Dulles, reportedly vowing to shatter the agency into a thousand pieces and scatter it to the winds. The debate rages as to whether his vow had anything to do with his assassination, but the possibility cannot be dismissed. (Oddly, Dulles was on the Warren Commission and by most accounts stage-managed its investigation.)</p> <p><strong>Democratic senator Frank Church led a Senate select committee investigation on intelligence in 1975.</strong> His investigation gave most Americans their first glimpse into the CIA&rsquo;s dirty laundry, notably assassinations and attempted assassinations of various foreign leaders.<em> (The practice was supposedly outlawed by an executive order issued by President Gerald Ford, which was replaced by one issued by President Ronald Reagan. That order didn&rsquo;t prevent US acquiescence to and complicity in the murder of Muammar Gaddafi. <a href="https://straightlinelogic.com/2016/08/09/the-most-dangerous-candidate-by-robert-gore/">&ldquo;We came, we saw, he died!&rdquo;</a>) </em>Also revealed was the CIA and FBI&rsquo;s interception, opening, and photographing of domestic mail. Senator Church publicly expressed grave misgivings about the government&rsquo;s nascent electronic surveillance capabilities. He must be rolling in his grave over what it does now.</p> <p>It was also the &ldquo;Democratic&rdquo; press, primarily the <em>New York Times</em> and <em>The Washington Post</em>, that took the lead in exposing scandals with intelligence angles and opposing some of America&rsquo;s military interventions, notably Vietnam. Unfortunately, in the aftermath of the 9/11 attacks the Democratic-dominated mainstream media climbed into bed with the Republican administration. The weapons of mass destruction and the Saddam Hussein-al Qaeda stories, based on doctored and phony intelligence, were sold to the American people as the justifications for the regime-change invasion of Iraq. There were almost no editorial objections to that or subsequent regime-change operations, the Patriot Act&rsquo;s assault on the Bill of Rights, or to the muddled, impossible to define or limit concept of a global, preemptive war on terror. Although that war has been a predictable failure, the mainstream press will not even acknowledge it&rsquo;s two most obvious consequences: the further spread of terrorism and the refugee flows from Middle Eastern and Northern African war zones.</p> <p><strong>The problem at the heart of intelligence agencies and their oversight is the information they collect.</strong> It invariably includes dirt that can be used against those who might question or oppose them. <strong>There is not a person on the planet who doesn&rsquo;t have some aspect of his or her life they want to remain private.</strong> It&rsquo;s no mystery why a former KGB agent runs Russia, why all the retirement rules were waived so J. Edgar Hoover could stay on as head of the FBI until his death, how a former head of the CIA and then his son acquired the power base that got them both elected president (and they were trying for number three). Threatened or actual blackmail is a powerful weapon, except for that .000000001 percent who lead unblemished, exemplary lives. That weapon renders a secret intelligence function incompatible with civil liberties and popular control of the government.</p> <p><strong>The recent election was a revolt by the electorate against their incompetent, corrupt rulers.</strong> Hillary&rsquo;s Clinton&rsquo;s nomination was the exclamation point on the Democratic party&rsquo;s moral bankruptcy, a final repudiation of the party and its aligned media&rsquo;s attempts, however incomplete and compromised, to check the Deep State. Given that abdication, its embrace of the intelligence agencies&rsquo; perpetration of fake news, support of an increasingly confrontational stance with Russia in hopes of provoking a war, and tacit endorsement of violence during Donald Trump&rsquo;s inauguration come as no surprise. Grasping for the power they&rsquo;ve been denied, they&rsquo;ll try anything.</p> <p>There has been much talk of a Deep State &ldquo;coup&rdquo; during its battle against Donald Trump, but how can those who control the government stage a coup? <strong>What they are doing is taking action against an opponent who has ripped away the facade of popular control and may pose a threat to their power and position.</strong> Deep State rule has been neither intelligent nor wise. However, it would be unintelligent and unwise to therefore conclude it&rsquo;s not dangerous. That it would try to deny the duly elected choice of the American people the presidency bespeaks arrogance completely disconnected from morality. <em><strong>That it would try to provoke violence from nuclear-armed Russia and inauguration &ldquo;demonstrators&rdquo; in American cities bespeaks a disregard of extreme risks and potentially catastrophic consequences, not just to the citizenry they despise, but to themselves as well.</strong></em></p> <p><strong>They must be opposed, stopped, and scattered to the winds</strong> (which would, in a perfect world, blow some of them into prison). Donald Trump may be the last, best hope. <strong>The intelligent and wise will be on full alert, prepared for the risks and dangers&hellip;should he fail or succeed.</strong></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="3000" height="1686" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170118_deep.jpg?1484766729" /> </div> </div> </div> http://www.zerohedge.com/news/2017-01-18/neither-intelligent-nor-wise-definitely-dangerous#comments al-Qaeda Allen Dulles Business Central Intelligence Agency Central Intelligence Agency Cold War in popular culture Democratic Party Donald Trump Donald Trump Fail FBI Federal Bureau of Investigation federal government Federal Reserve Ford Gerald Ford Government Iraq KGB McLean, Virginia New York Times Nomination Politics Politics of the United States Project MKUltra Republican administration Secretariat of Intelligence Senate Senator Church United States government United States intelligence agencies US Federal Reserve US government Warren Commission Thu, 19 Jan 2017 02:25:00 +0000 Tyler Durden 585771 at http://www.zerohedge.com China Orders Local Weather Bureaus To Stop Issuing Smog Alerts http://www.zerohedge.com/news/2017-01-18/china-orders-local-weather-bureaus-stop-issuing-smog-alerts <p>Nearly three years into a "war on pollution", in which large swathes of northern China are periodically engulfed in thick, toxic smog, with dangerous air quality readings in major cities like Beijing, Tianjin and Xian forcing many people to stay in doors and shutting down industries, causing <a href="http://www.reuters.com/article/us-shipping-china-congestion-idUSKBN14W36R">ship traffic jams in local ports</a>, and even adversely impacting the local economy, China has realizing that it needs to take more "innovative" measure to make sure it does not lose this particular war. Which explains why local media reported on Tuesday that China is suspending local meteorological bureaus from issuing smog alerts, raising suspicions the government is attempting to suppress information about the country’s air pollution as public anger over the issue grows. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/01/15/000_JB2GQ.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/01/15/000_JB2GQ_0.jpg" width="500" height="333" /></a></p> <p>China’s Meteorological Administration notified local bureaus Tuesday to “immediately stop issuing smog alerts”, according to a photo of a notice posted on China’s Twitter-like social media platform Weibo, <a href="https://www.hongkongfp.com/2017/01/18/china-orders-local-meteorological-bureaus-stop-issuing-smog-alerts/">AFP reports</a>. Instead, of smog, local departments can issue alerts for “fog” when visibility is less than 10 km, according to the notice. </p> <p>The notice was issued because local “meterological bureaus and the environmental protection administration often disagree when they issue smog-related information,” a representative from the China Meteorological Administration told the Chinese website The Paper. “A joint alerting mechanism will be formulated to consult how to and who should issue alerts for smog,” the representative said.</p> <p>Centralizing the government's supervision over a topic that has lead to rising popular anger over the government's inability to takle the toxic problem, one single department will now be responsible for issuing smog alerts, The Paper reported.</p> <p>Upon learing the news, online commentators who have long doubted the credibility of official data on air pollution, and any other official Chinese data for that matter, slammed the reports with stinging criticism.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/01/15/15489395937_9dc602ba87_o.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/01/15/15489395937_9dc602ba87_o_0.jpg" width="500" height="334" /></a></p> <p>“Before, they cheated us separately, and now, they are going to cheat us together,” one person said on Weibo. </p> <p>“Even though they are working on a unified alert standard, they should not stop the existing alert system,” another replied. </p> <p>The feud even spread to various semi-public institutions: "The meteorological administration fought the environmental protection ministry and lost," the Nanjing Meteorological Institute said on its official Weibo account. "Thus, early warnings about smog, a kind of meteorological calamity, cannot be issued by the meteorological administration," it said.</p> <p>The Chinese government has a color-coded system of smog alerts, topping out at red when severe pollution is likely to last more than 72 hours. The notice sets off a series of emergency measures, ranging from taking cars off the road to closing heavily polluting factories. </p> <p>And like with everything else in China, there is a conflict of interest that sets off the people versus some economic goal. In this case, local authorities have long hesitated to issue the notices over fears that they will harm economic performance, even when pollution levels are literally off the charts. In late 2015, China issued its first ever red alert in response to public anger over the government’s reluctance to take action after a wave of suffocating smog hit the country’s northeast. </p> <p>Prior instances of smog led to transitory forced shut downs of local industries, and the paralysis of domestic infrastructure and transportation, which in turn had a depressing impact on Chinese manufacturing production, and eventually, GDP. However, with 2017 a banner year for Xi</p> <p>In the past, local and national authorities have issued contradictory, confusing alerts, one ordering factories and schools to be closed and one not. </p> <p>Bad air is a source of enduring public anger in China, which has seen fast economic growth in recent decades but at the cost of widespread environmental problems. In recent weeks, AFP adds, parents in particular have expressed outrage over the miasma that regularly affect hundreds of millions and has led to high levels of lung cancer, demanding that schools be equipped with air purifiers.</p> <p>Earlier this month, many took to social media to express their anger about the thick smog that choked Beijing for over a week around the New Year but found their articles quickly deleted, a move that only increased their frustration. </p> <p>“When people are gagged, the sky will be blue,” said one sarcasm-laced Weibo comment. Of course, as long the people don't rise up against their government, however, Beijing could care less.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="640" height="381" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/mask%20china.jpg?1484791502" /> </div> </div> </div> http://www.zerohedge.com/news/2017-01-18/china-orders-local-weather-bureaus-stop-issuing-smog-alerts#comments Air pollution Air pollution in China Beijing Biology China China Meteorological Administration China’s Meteorological Administration Chinese government Environment Geography of Asia Nanjing Meteorological Institute Natural environment New York City smog northern China Pollution Pollution in China Rationing Smog Thu, 19 Jan 2017 02:14:43 +0000 Tyler Durden 585812 at http://www.zerohedge.com Clinton Family Friend Charged After Threatening To Kill Donald Trump On Twitter http://www.zerohedge.com/news/2017-01-18/clinton-family-friend-charged-after-threatening-kill-donald-trump-twitter <p>51 year-old Florida resident, Dominic Puopolo, who was arrested by Miami Beach police Tuesday for allegedly threatening President-elect Donald Trump online is, <a href="http://www.dailymail.co.uk/news/article-4133938/Florida-man-threatened-kill-Trump-Clinton-friend.html#ixzz4W9X2RWVZ">according to The Daily Mail</a>, is a <strong>member of a prominent northeast family close to Bill and Hillary Clinton</strong>.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_puop1.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_puop1.jpg" style="width: 600px; height: 425px;" /></a></p> <p>Puopolo reportedly admitted to posting a video to Twitter, under his handle @JesusChrist1701, saying: <em><strong>&quot;Yes, I will be at the review stand at the inauguration and I am going to kill President-elect Trump... what are you gonna do about it Secret Service?&quot;</strong></em></p> <blockquote class="twitter-video" data-lang="en"><p dir="ltr" lang="en"><a href="https://twitter.com/SecretService">@SecretService</a> VIDEO THREAT NOW 1809H TRUMP DEAD <a href="https://t.co/fO8OS3viY4">pic.twitter.com/fO8OS3viY4</a></p> <p>&mdash; LORD JESUS CHRIST (@jesuschrist1701) <a href="https://twitter.com/jesuschrist1701/status/821133732467838976">January 16, 2017</a></p></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script><p>And was arrested and charged after leaving a Washington Avenue Subway sandwich shop on Tuesday afternoon.</p> <p><u><strong>However,<a href="http://www.dailymail.co.uk/news/article-4133938/Florida-man-threatened-kill-Trump-Clinton-friend.html#ixzz4W9X2RWVZ"> as The Mail notes</a>, Puopolo is not your average Never-Trump&#39;r...</strong></u></p> <p>He once <strong>gave $20,000 to the Democratic National Committee,</strong> DailyMail.com has learned.</p> <p><strong>Suspect Dominic Puopolo Jr., 51, sat near Hillary Clinton when she delivered the eulogy at the funeral of Puopolo&#39;s mother, Sonia, </strong>who died in one of the jets that flew into the World Trade Center on 9-11.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_puop2.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_puop2.jpg" style="width: 600px; height: 1006px;" /></a></p> <p>He once posted a photo of himself holding an image of his mother in front of a wall that sports a<strong> picture of him with Colin Powell and a famous shot of Ronald Reagan.</strong> Puopolo has published a number of pictures of outgoing Secretary of State<strong> John Kerry, whom he calls a friend.</strong></p> <p><em>According to news archives his mother, Sonia Mercedes Morales Puopolo was married to the wealthy Nantucket businessman Dominic J. Puopolo Sr. However, Sonia was among 92 people on American Airlines Flight 11 on Sept. 11, 2001, when it crashed into the World Trade Center&#39;s north tower in New York City. In an amazing twist of fate, Ground Zero cleanup crews recovered the wedding ring that Sonia&#39;s husband had given her 40 years earlier. The suspect&#39;s sister, Miami resident Sonia Tita Puopolo, wrote a book in 2010 about the ring called Sonia&#39;s Ring: 11 Ways To Heal Your Heart, Miracles Do Happen, and even ended up on Ellen DeGeneres&#39; show to discuss it.</em></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_puop4.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_puop4.jpg" style="width: 600px; height: 441px;" /></a></p> <p><em>Dominic Puopolo posted this picture of President Clinton with <strong>his sister Sonia (left) and his mother Sonia,</strong> who was killed in one of the planes that flew into the World Trade Center</em></p> <p><strong>The family is also known in political circles for its generosity toward Democratic organizations and candidates.</strong></p> <p>The threat suspect, according to federal elections records, gave $20,000 to the Democratic National Committee in 1996. He also contributed to Kerry and deceased Sen. Ted Kennedy in the mid-1990s. His name popped up again in contributions in 2006 when he gave $4,000 to Florida Sen. Bill Nelson&#39;s campaign.</p> <p><strong>His sister Sonia gave $4,000 to Hillary Clinton&#39;s various campaigns.</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_puop3.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/01/17/20170118_puop3.jpg" style="width: 600px; height: 536px;" /></a></p> <p><strong>In Miami, meanwhile, Dom Puopolo was arrested four times for petty crimes since 2006</strong>, twice for petty theft and once for defrauding an innkeeper.</p> <p><a href="http://www.dailymail.co.uk/news/article-4133938/Florida-man-threatened-kill-Trump-Clinton-friend.html#ixzz4W9X2RWVZ"><em>Read more here...</em></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="616" height="468" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170118_puop5_0.jpg?1484792435" /> </div> </div> </div> http://www.zerohedge.com/news/2017-01-18/clinton-family-friend-charged-after-threatening-kill-donald-trump-twitter#comments American people of German descent Bill Clinton Climate change skepticism and denial Democratic National Committee Donald Trump Donald Trump Florida Hillary Clinton John Kerry Miami Beach police Nationality New York City Politics Rodham family Secret Service The Apprentice Twitter Twitter United States World Trade WWE Hall of Fame Thu, 19 Jan 2017 02:13:32 +0000 Tyler Durden 585813 at http://www.zerohedge.com CNN President Says Network's "Credibility Is Higher Than Ever" http://www.zerohedge.com/news/2017-01-18/cnn-president-says-networks-credibility-higher-ever <p>Obviously worried that his network won't get a seat at the "big boy" table after Jim Acosta's recent on-air spat with President-elect Trump, CNN President Jeff Zucker defended his network's "credibility" in a recent interview with New York Magazine.&nbsp; In a blatant attempt to deflect attention away from his network's careless, if not outright malicious, decision to promote the now infamous <a href="http://www.zerohedge.com/news/2017-01-11/nyt-suggests-cnn-buzzfeed-peddled-fake-news">35-page "intelligence report"</a> compiled by a UK intelligence officer with some rather unflattering "fake news" about Trump and his alleged connections to Russia, Zucker said that Trump's attacks against his network were just an attempt to <strong>"delegitimize journalism"</strong> while asserting that CNN's "<strong>credibility is higher than ever."</strong>&nbsp; Per <a href="http://thehill.com/media/314819-cnn-president-networks-credibility-is-higher-than-ever">The Hill</a>:<strong><br /></strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>CNN President Jeff Zucker says President-elect Donald Trump's attacks on his network are an attempt to <strong>"delegitimize journalism,”</strong> adding that CNN's "credibility is higher than ever.”</p> <p>&nbsp;</p> <p><strong>"It’s just unfortunate that the most powerful person in the world is trying to delegitimize journalism and an organization that plays such a vital role in our democracy,"</strong> Zucker told New York Magazine in an interview Wednesday.</p> <p>&nbsp;</p> <p>"I think he’s entitled to his opinion, but it’s — to use one of his favorite words — sad."</p> <p>&nbsp;</p> <p>Zucker reflected on Trump’s press conference last week, when the president-elect refused to let CNN reporter Jim Acosta ask a question and accuse him of “fake news.”</p> <p>&nbsp;</p> <p><strong>"I think the era of access journalism as we’ve known it is over,"</strong> said Zucker, who took over at CNN in 2013.</p> <p>&nbsp;</p> <p><strong>"It doesn’t worry me that Donald Trump hasn’t done an interview with CNN in eight months. I think our credibility is higher than ever, and our viewership is higher than ever, and our reporting is as strong as ever. </strong>… Continuing to have an adversarial relationship with that network is a mistake."</p> </blockquote> <p>Ironically, Zucker's comments come just a week after <a href="http://www.rasmussenreports.com/public_content/politics/general_politics/january_2017/cable_news_viewers_still_turn_to_fox_first">Rasmussen</a> conducted a poll on the credibility of the media finding that, at least in the opinion of their viewers, CNN is, in fact, the least trusted cable news network with only 33% of respondents saying they trust their political news.&nbsp; Here is what we noted last week in a post entitled "<a href="http://www.zerohedge.com/news/2017-01-09/cnn-now-least-trusted-news-network-among-viewers">CNN Is Now Least Trusted News Network Among Viewers</a>":</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>A recent poll of cable news network viewers found that <strong>CNN’s regular audience is far more skeptical of the political news they receive than Fox News fans.</strong></p> <p>&nbsp;</p> <p><strong>I</strong>n the poll <a href="http://www.rasmussenreports.com/public_content/politics/general_politics/january_2017/cable_news_viewers_still_turn_to_fox_first" target="_blank">published Wednesday by Rasmussen Reports</a>, 1,000 likely voters were asked to describe their media viewing habits. Seventy-five percent said they watch at least some form of cable news each week, with 42 percent saying they most frequently watch Fox News, 35 percent usually choosing CNN, and 19 percent favoring MSNBC.</p> <p>&nbsp;</p> <p>An even 50 percent of frequent Fox News viewers agreed with a followup question,<strong><em> “Do you trust the political news you are getting?” </em></strong>By comparison, 43 percent of frequent MSNBC viewers and<strong> just 33 percent of those who mostly watch CNN said they trust their political news.</strong></p> </blockquote> <p>Of course, CNN's decision to spread the "fake news", originally reported by BuzzFeed, resulted in the following epic exchange between CNN's Senior White House Correspondent, Jim Acosta, and President elect Trump at last week's press conference...</p> <p><iframe src="https://www.youtube.com/embed/icLz5xxkCAE" width="600" height="337" frameborder="0"></iframe></p> <p>&nbsp;</p> <p>...which then triggered the following mini-tweetstorm from Trump who said that CNN was <strong>"in a total meltdown" while predicting that their "credibility will soon be gone!"</strong></p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">.<a href="https://twitter.com/CNN">@CNN</a> is in a total meltdown with their FAKE NEWS because their ratings are tanking since election and their credibility will soon be gone!</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/819550083742109696">January 12, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"><p dir="ltr" lang="en">We had a great News Conference at Trump Tower today. A couple of FAKE NEWS organizations were there but the people truly get what's going on</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/819393877174087682">January 12, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>&nbsp;</p> <p>And with Trump confirming that he won't remove the press from the West Wing of the White House but rather will choose who gets access to the limited space, one has to wonder whether the "Clinton News Network" will make the cut.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="447" height="312" alt="" src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/cnn%20fake%20news.JPG?1484779527" /> </div> </div> </div> http://www.zerohedge.com/news/2017-01-18/cnn-president-says-networks-credibility-higher-ever#comments American television Business CNN Conservatism in the United States Donald Trump Donald Trump Donald Trump presidential campaign Entertainment Fox News Last Week Tonight with John Oliver Meltdown MSNBC Politics of the United States ratings Television Television in the United States White House White House Thu, 19 Jan 2017 02:00:00 +0000 Tyler Durden 585800 at http://www.zerohedge.com The Truth About Venezuela's "Economic War" http://www.zerohedge.com/news/2017-01-18/truth-about-venezuelas-economic-war <p><a href="http://www.insidesources.com/truth-venezuelas-economic-war/"><em>Submitted by Antony Davies and James Harrigan via InsideSources.com,</em></a></p> <div class="postContent"> <p><strong>Blaming Venezuela&rsquo;s spiraling inflation on &ldquo;economic war and mafia attacks,&rdquo; </strong>Hugo Chavez&rsquo;s successor, socialist President Nicolas Maduro has raised the nation&rsquo;s minimum wage for the fifth time in a year. The whopping 50 percent wage hike raises the monthly wage to between $12 and $60, in U.S. terms, depending on whether one goes by the state-controlled or the more accurate black-market exchange rate.</p> <p>No matter what, though, the measure will provide no relief given Venezuela&rsquo;s projected 1,600 percent inflation rate.</p> <p><strong>Decades of Chavez-ism have finally demonstrated Margaret Thatcher&rsquo;s dictum: Socialists &ldquo;always run out of other people&rsquo;s money.&rdquo; </strong>Venezuela&rsquo;s paper money has lost so much value that it is no longer counted at the point of purchase. It&rsquo;s weighed.</p> <p>The once-affluent and still oil-rich nation came to this because of a long train of abuses, missteps and shortsighted moves typical of socialist regimes. These began when Venezuela nationalized its oil industry in 1976. The pretext for nationalization was to take profit from capitalists and return it to the people. But when the government seized the oil companies, it removed the profit incentive people had to develop and maintain the physical apparatus that brings oil to market. Predictably, everything has fallen into disrepair.</p> <p><u><strong>It also removed another equally important force: the loss incentive.</strong></u></p> <p><strong>In private industries, decision-makers bear the consequences of their decisions. </strong>Good decisions beget profit for decision-makers, and poor decisions beget losses. The dual forces of profit and loss guide management, and the investors who hire them, to use resources judiciously. But in nationalized industries, political elites share the consequences of their decisions. Good decisions beget profit for political elites. Poor decisions beget losses for the people. And so it has been in Venezuela, where not only do people not have oil, they don&rsquo;t have food.</p> <p><strong>In Venezuela, political elites treated the oil industry like the parents&rsquo; credit card.</strong> They pulled out money to fund their socialist utopia, but did little to ensure the industry&rsquo;s, and thus the nation&rsquo;s, long-term viability. Why? Because they kept the industry&rsquo;s profit for themselves, but not its losses. Those were for the Venezuelan people. And so Venezuela&rsquo;s oil production plummeted.</p> <p>Since Venezuela nationalized its oil industry in 1976, world oil production has skyrocketed. Saudi Arabia&rsquo;s oil production rose 25 percent, Kuwait&rsquo;s 30 percent, the United Arab Emirates&rsquo; 100 percent, Canada&rsquo;s 133 percent, and China&rsquo;s 220 percent. Even war-torn Iraq&rsquo;s oil production rose 125 percent. Compared to Venezuela, the United States&rsquo; zero percent growth is a bonanza. Since 1976, Venezuela&rsquo;s oil production declined 20 percent.</p> <p><strong>Chavez&rsquo;s socialist experiment is ending in the same rampant poverty that ends every socialist experiment, because they are all built on the same false premise &mdash; that an economy is a mechanism that can be managed by a cadre of elites.</strong> Experience, both long and painful, should paint a clear picture. An economy is much more like an organism composed of millions of different people employing different skills, doing different things, in pursuit of their own innumerable goals.</p> <p><u><em><strong>An economy simple enough to be centrally managed is too simple to feed millions of people.</strong></em></u></p> <p><em>When the government restricts the economy in one place, the organism reacts and unexpected consequences arise elsewhere. To fill their own pockets, Venezuelan political elites nationalized the oil industry. The unintended consequence was a decline in oil production. Paired with a decline in the price of oil, this meant less tax revenue for the government. To obtain needed revenue, the government printed money. The unintended consequence was inflation as more bolivars chased fewer products. To slow inflation, the government imposed price controls. The unintended consequence was food shortages and hoarding. To prevent hoarding, the government limited how much food people could buy. The unintended consequence was that fewer people produced and transported food. To increase food production, the government forced people to work on farms.</em></p> <p><strong>In the end, though, President Maduro is correct.</strong> Venezuela&rsquo;s economic woes are indeed the result of economic war and mafia attacks. <em><strong>But Venezuela&rsquo;s political elites are the mafia, and they alone have waged a decades-long economic war on Venezuela&rsquo;s people.</strong></em></p> </div> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="518" height="300" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170118_venz.jpg?1484760360" /> </div> </div> </div> http://www.zerohedge.com/news/2017-01-18/truth-about-venezuelas-economic-war#comments Americas Business China Economy Hugo Chávez Inflation Iraq Kuwait Nationalization Politics Politics of Venezuela Saudi Arabia Tax Revenue Venezuela Thu, 19 Jan 2017 01:35:00 +0000 Tyler Durden 585763 at http://www.zerohedge.com Assange's Lawyer Provides An "Out": Says Conditions Not Met For Extradition Deal http://www.zerohedge.com/news/2017-01-18/assange-attorney-provides-out-says-conditions-not-met-assangemanning-extradition-dea <p>After a January 12th tweet from WikiLeaks saying that Assange would agree to be extradited to the U.S. if the Obama administration granted "clemency" to Chelsea Manning, <strong>attorneys for Assange seem to be backtracking today on an alleged technicality.</strong>&nbsp; </p> <p>Here was the "official offer" from WikiLeaks:</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">If Obama grants Manning clemency Assange will agree to US extradition despite clear unconstitutionality of DoJ case <a href="https://t.co/MZU30SlfGK">https://t.co/MZU30SlfGK</a></p> <p>— WikiLeaks (@wikileaks) <a href="https://twitter.com/wikileaks/status/819630102787059713">January 12, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>&nbsp;</p> <p> But, according to new comments today from his U.S. attorney, the <strong>offer from Assange implicitly required an immediate release of Chelsea Manning</strong>. Therefore, at least according to Assange's attorney, Obama's decision to release Manning from his 35-year sentence in "May" is <strong>"well short of what he sought."</strong> Per <a href="http://thehill.com/policy/cybersecurity/314783-assange-lawyer-conditions-not-met-for-assange-manning-extradition-offer">The Hill</a>:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>“Mr. Assange welcomes the announcement that Ms. Manning's sentence will be reduced and she will be released in May, but this is well short of what he sought,”</strong> said Barry Pollack, Assange’s United State’s attorney.</p> <p>&nbsp;</p> <p><strong>“Mr. Assange had called for Chelsea Manning to receive clemency and be released immediately.”</strong></p> </blockquote> <p>Now, without passing judgement on the merits of the DOJ case against Assange, and while we're not ones to split hairs, the tweet above doesn't reference an immediate release and neither does any definition of "clemency" to our knowledge.&nbsp; Per the <a href="https://www.merriam-webster.com/dictionary/clemency">Merriam-Webster dictionary</a>, clemency is defined simply as follows:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><em>1.&nbsp; disposition to be merciful and especially to moderate the severity of punishment due</em></p> <p><em>2.&nbsp; an act or instance of leniency</em></p> </blockquote> <p>Then came the following tweet from WikiLeaks saying that <strong>"Assange is still happy to come to the US"</strong> on the condition that <strong>"all his rights are guaranteed"</strong>...a condition that we suspect will never be met to the complete satisfaction of Assange's attorneys.</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Assange is still happy to come to the US provided all his rights are guarenteed despite White House now saying Manning was not quid-quo-pro.</p> <p>— WikiLeaks (@wikileaks) <a href="https://twitter.com/wikileaks/status/821753136692002816">January 18, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>&nbsp;</p> <p>Of course, comments from Assange and his attorneys today seem to offer a very different tone from WikiLeaks' initial tweets yesterday which celebrated the commutation of Manning's sentence and <strong>confirmed that Assange was "standing by" his proposed "extradition 'deal'".</strong>&nbsp; </p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Assange is confident of winning any fair trial in the US. Obama's DoJ prevented public interest defense &amp; fair jury. <a href="https://t.co/Mb6gXlz7QS">https://t.co/Mb6gXlz7QS</a></p> <p>— WikiLeaks (@wikileaks) <a href="https://twitter.com/wikileaks/status/821505178549493760">January 17, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"><p dir="ltr" lang="en">Statement from Julian <a href="https://twitter.com/hashtag/Assange?src=hash">#Assange</a> regarding decision of President Obama to commute the sentence of Chelsea Manning <a href="https://t.co/HKtbs0pOpF">pic.twitter.com/HKtbs0pOpF</a></p> <p>— Melinda Taylor (@theMTchair) <a href="https://twitter.com/theMTchair/status/821507675943043073">January 18, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"><p dir="ltr" lang="en">Assange lawyer <a href="https://twitter.com/theMTchair">@themtchair</a> on Assange-Manning extradition 'deal': "Everything that he has said he's standing by."</p> <p>— WikiLeaks (@wikileaks) <a href="https://twitter.com/wikileaks/status/821528189625372672">January 18, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"><p dir="ltr" lang="en">VICTORY: Obama commutes Chelsea Manning sentence from 35 years to 7. Release date now May 17. Background: <a href="https://t.co/HndsbVbRer">https://t.co/HndsbVbRer</a></p> <p>— WikiLeaks (@wikileaks) <a href="https://twitter.com/wikileaks/status/821475035441401856">January 17, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>&nbsp;</p> <p>Something tells us Assange will not be visiting the U.S. anytime in the near future.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="1177" height="883" alt="" src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/Assange_6.jpg?1484754556" /> </div> </div> </div> http://www.zerohedge.com/news/2017-01-18/assange-attorney-provides-out-says-conditions-not-met-assangemanning-extradition-dea#comments Chelsea Manning DOJ Government Julian Assange National security Obama Administration Obama administration Politics President Obama Reactions to the United States diplomatic cables leak Reception of WikiLeaks Twitter Twitter White House White House WikiLeaks Thu, 19 Jan 2017 01:10:00 +0000 Tyler Durden 585739 at http://www.zerohedge.com