http://www.zerohedge.com/fullrss2.xml/wp-login.php/sites/default/files/images/user5/imageroot/2011/09/AAPL%2010.4.jpg en Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing http://www.zerohedge.com/news/2017-07-21/gold-hedges-against-currency-devaluation-and-cost-fuel-food-beer-and-housing <p><span style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif;"><span style="font-size: 16px;"><strong><a href="http://www.goldcore.com/us/gold-blog/gold-hedges-currency-devaluation-cost-fuel-food-beer-housing/">Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing</a></strong></span></span></p> <p><span style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif;"><span style="font-size: 16px;"><strong>&nbsp;</strong></span></span><strong style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">- Gold hedge against currency devaluation - cost of fuel, food, housing<br />- True inflation figures reflect impact on household spending<br /></strong><strong style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">- Household items climbed by average 964%<br /></strong><strong style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">- Pint of beer&nbsp;sees biggest increase in basket of goods - rise of 2464%<br /></strong><strong style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">- Bread rises 836%, butter by 1023% and fuel (diesel) up by 1375%<br /></strong><strong style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">- Gold rises 2672% and hold's its value over 40 years<br /></strong><strong style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">- Savings eaten away by money creation and negative interest rates<br /></strong><strong style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">- Further evidence of gold’s role as inflation hedge and safe haven</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Editor: Mark O'Byrne</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><a href="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/07/1973-to-2017-price-changes.png"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/07/1973-to-2017-price-changes.png" width="966" height="812" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter size-full wp-image-10806" /></a></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; text-align: center;"><strong>Gold hedges against rising cost of living</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Remember when you were taught about the inflation of the&nbsp;<strong>Weimar Republic</strong>&nbsp;in Germany at school? More recently I was taught about the inflation of&nbsp;<strong>Zimbabwe.</strong>&nbsp;In both instances we were given examples of how much the staple food of people cost - the humble loaf of bread.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">We were all supposed to be horrified and thank our lucky stars we didn’t live in such times. We&nbsp;thanked God that those days were gone and&nbsp;<strong>long in the past, never to be seen again.</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Obviously we are not unfortunate enough to live in a country where the price of bread changes from us walking into the bakery to paying for the loaf. Nor do we have to carry huge wads of bank notes around in bricks as we saw in Zimbabwe.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; text-align: center;"><img src="https://upload.wikimedia.org/wikipedia/commons/3/3e/Zimbabwe_%24100_trillion_2009_Obverse.jpg" width="1764" height="875" style="height: auto; max-width: 100%;" class="alignnone size-large" /><strong>Worthless 1 Trillion Zimbabwe Dollar Note (Wikimedia Commons)</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">But, there has still been a whopping devaluation in the pound, the dollar and all major fiat currencies - as much as &nbsp;of over 90% devaluation in some in the last forty or so years. Food items have increased on average by 964% in the UK.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">A form of hyperinflation is has happened globally but just over a much longer time period.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Back in 2014 we wrote about the&nbsp;<strong>impact of inflation on household spending and the cost of living due to the&nbsp;<a href="http://www.goldcore.com/us/gold-blog/gold-hedges-against-surge-in-cost-of-bread-eggs-beer-and-fuel/">devaluation of the pound since 1973</a>.</strong>&nbsp;Needless to say three years on that the impact of inflation is even greater and the pound worth even less -&nbsp;<strong>especially after sterling's sharp fall after Brexit.</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Today a&nbsp;<strong>British Pound from 1973 is worth just eight pence</strong>. When we first reported on this issue in 2014 the value of a 1973 pound was worth nine pence. In contrast, since 1973, one ounce of gold has climbed by a whopping 2,673%. Today, the £100 of 1973 is worth just £9.01, compared to £9.48 in 2014.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">These numbers show just how much&nbsp;<strong>damage</strong>&nbsp;has been done to the British pound and therefore the value of our medium of exchange and&nbsp;<strong>savings</strong>.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">They also show how well you would have been protected by investing in gold. Had you done so you would have enjoyed the benefits of this&nbsp;<strong>time tested hedge against the long term ravages of inflation</strong>.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Cost of household goods rises by average of 964%</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">The £9.01 today wouldn’t get you too far given the prices found in the July 2017 RPI and CPI price list.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">The price list also shows how many producers have been forced to lower prices thanks to supermarkets’ buying and pricing power. Bread and milk are just two key items which have been forced down in price since 2014.&nbsp; Despite this, their prices remain highly inflated since 1973.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">A&nbsp;<strong>pint of a beer</strong>&nbsp;has felt the biggest surge of the food and drink items we selected, it has shot up by 2,464.3% from 14p to £3.59 per pint.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">A sliced&nbsp;<strong>loaf of white bread</strong>&nbsp;has come down from £1.30 to £1.03 since 2014, but it is still up a huge 836% since 1973. The processed, mass produced bread of today is unlikely to be of the quality of the bread of then.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">The&nbsp;<strong>butter</strong>&nbsp;your parents might have once slathered onto your morning toast might just have to be lightly dabbed on, given it costs nearly 11 times more than it did in 44 years ago. A 250 gramme slab of butter went from 13p to £1.46 or over 1000%.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Perhaps your fancy crepes for breakfast instead of toast. A&nbsp;<strong>dozen eggs</strong>&nbsp;are now 5 times what they once were, setting you back £2.02 when they once would have been a bargain at 33p. The&nbsp;<strong>flour</strong>&nbsp;to help you make those crepes has climbed almost as much in price, by 446% to 82p for 1.5kg.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">That morning coffee you love so much? 100g of its instant form costs nearly 10 times more from 28p to £2.95. And the&nbsp;<strong>milk</strong>&nbsp;to make it a latte costs over 6 times more, climbing from 6p to 43p. Don’t forget the&nbsp;<strong>sugar,</strong>&nbsp;a kilo bag of sugar will now set you back now costs 68p, up from 11p – up over 500%.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Apples</strong>&nbsp;cost have climbed in price by 621%, from 28p per kilo to £2.02 per kilo. Other vegetables have also increased.&nbsp;<strong>Carrots</strong>&nbsp;- those magic&nbsp;<strong>vegetables</strong>&nbsp;to help you see in the dark will now cost you nearly 8 times what they would have in 1973. A kilo bag of carrots now costs 91p, up from 11p or a rise of 723%.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Sadly after beer and butter, the items which have climbed the most in this list of household essentials are not food and drink items. Instead, they’re the items which keep us safe and warm, and help us keep earning an increasingly valueless wage -&nbsp;<strong>home prices and fuel.</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Diesel</strong>&nbsp;costs nearly 14 times more, from 8p in 1973 to to £1.18 in July this year. If you have even glanced at&nbsp;<strong>house prices</strong>&nbsp;recently then you won’t be surprised to hear they are practically unaffordable or that the price of the average detached house went from £16,980 to £345,833. The<strong>&nbsp;family home</strong>&nbsp;now costs nearly 2,000% more than in 1973.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Of course, what has beaten all of these in a climb in price? An&nbsp;<strong>ounce of gold</strong>, which has gone from £34 to £1051, an increase of over&nbsp;<strong>2,600%</strong>.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>What about from 50 years ago?</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">We have been going through a spate of changes here in the UK, of new paper notes some of which haven’t been changed (in design) since the 1950s. But, their<strong>&nbsp;spending power certainly has.</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">One of these is the fiver. Interestingly it was once standard to be able to get a&nbsp;<strong>£5 note</strong>&nbsp;from a cash machine. I don’t recall this (I was born in the 1980s) and when I was at university there was one cash machine which was almost a novelty because it did dispense of the notes. When the financial crisis hit banks and ATM companies decided to start reissuing £5 notes in order to ‘help people with their budgeting.’</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; text-align: center;"><a href="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/07/Equivalent-spending-power-2017.png"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/07/Equivalent-spending-power-2017-1024x497.png" width="1024" height="497" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter size-large wp-image-10809" /></a><strong>Equivalent spending power 2017 (Source&nbsp;<a href="http://www.cityam.com/264170/heres-just-much-value-fiver-has-fallen-past-60-years">CityAM</a>)</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Why had the fiver stopped being issued in ATMs? Because the £5 had become small change. When you look at the figures in terms of what the £5 of today would have bought you back in 1957 then you really do get a good look at the&nbsp;<strong>damage that has been done to the British pound’s spending power</strong>.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Our American subscribers and clients will relate to this as the&nbsp;<strong>$5 note (USD) today does not buy what it bought 20, 30 or 40 years ago.</strong><br /><strong><br />Households and savers hit from all angles</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Every month we hear about where inflation is. Headlines are always screaming about whether or not inflation has hit the Bank of England MPC’s target. Rarely do we here about the ongoing damage being done to the value of the pound over a long term period.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">On an annual basis we are not suffering as much today as perhaps we would have been in the 1970s to early 80s. My grandfather retired in the 1970s, he died just last year. The first few years of his retirement were fraught with inflation as the average rate was around 13%.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; text-align: center;"><strong><a href="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/07/inflation-1970-1980.png"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/07/inflation-1970-1980.png" width="468" height="738" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter size-full wp-image-10810" /></a>Annual Inflation Rate &amp; Multiplier&nbsp;(1970 -1980)<br />Source&nbsp;<a href="http://inflation.stephenmorley.org/">Stephen Morley.org</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Of course, a retirement as long as my grandfather’s will be near unimaginable for generations since. This is partly do with lifestyle choices but also thanks to the fact that we can no longer afford to save enough in order to enjoy such a break. Many retire in the hope that their pension pots and savings will grow thanks to interest rates. As we know from the last ten years, this just isn’t possible anymore.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">As we wrote back in 2014, ‘If retail prices were to rise by 2.8% annually – in line with government targets – the value of money would decline by a further 67% over the next 40 years.'</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">‘If inflation follows this pattern, consumers would need £311 in 2053 to have the same spending power as an individual with £100 today – or more than £3 million to enjoy the equivalent lifestyle of a millionaire today.’</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">This isn’t just a problem for those who have retired. It is a daily problem for British households. Recently we wrote about&nbsp;<strong><a href="http://www.goldcore.com/us/gold-blog/shrinkflation-inflation/">shrinkflation</a></strong>&nbsp;and the impact it is having on British households. But even where size of common household items remains constant, consumers are seeing a huge fall in the amount they get for their money and what they are earning.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">There are very few households in the UK at present who are not feeling badly hit from all angles. From the increased rise in the cost of living to their wages which are not keeping up with inflation. Even those who can afford to save are suffering thanks to the&nbsp;<strong>devaluation of the pound, low interest rates and the threat of negative rates.</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Conclusion - what’s the real story?</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Laughingly the Bank of England’s website reads ‘Price stability is defined by the Government’s inflation target of 2%’. In other words,&nbsp;<strong>climbing prices and a falling purchasing power of the sovereign currency is considered to be price stability.</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Tell that to parents who are struggling to clothe, feed, transport, educate and look after the health care needs of their children. They might welcome a little bit of mild deflation. Especially those struggling to rent basic housing or buy a home.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">The study which originally inspired us to look at this situation in more details was carried out by Lloyds, who at the time stated that ‘in 40 years, an individual would need £3 million to enjoy the same lifestyle as a millionaire today.’</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">To that we say, it’s a lot more simple than worrying about accumulating £3 million in the right time period in order to be able to retire comfortably or very comfortably.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Instead, look at the table again&nbsp;and realise what has held its value and protected people's purchasing power - gold.</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>As it has throughout recorded history, gold has acted as hedge against inflation and a financial insurance against irresponsible and reckless governments and central banks. No matter what level of currency devaluation&nbsp;your country has seen, one ounce of gold is one ounce of gold, is recognised and liquid everywhere and has remained a store of value globally.</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Gold is flat this year after falling 40% in recent years. However, it rose 8% last year&nbsp;but it is has performed very well over the long term - a 10, 20, 30 and 40 year time period.</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Long term the value of your cash savings and deposits is being eaten away - especially in an era of zero percent and negative interest rates. &nbsp;Gold might continue to be unappreciated by the majority but a quick glance at these charts and all can see the protection it offers savers a</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Related Content</strong><strong><br /><a href="http://www.goldcore.com/us/gold-blog/gold-hedges-against-surge-in-cost-of-bread-eggs-beer-and-fuel/" target="_blank">Gold Hedges Against Surge In Cost Of Bread, Eggs, Beer and Fuel</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>News and&nbsp;Commentary</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.reuters.com/article/global-precious-idUSL3N1KC075">Gold steady, on track for second straight weekly gain (Reuters.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.reuters.com/article/global-precious-idUSL5N1KB591">Gold at 3-week high as ECB comments lift euro, dollar falls (Reuters.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.economiccalendar.com/2017/07/20/gold-prices-boosted-by-fresh-dollar-slide-investor-interest-still-weak/">Gold Prices Boosted By Fresh Dollar Slide (EconomicCalendar.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="https://www.bloomberg.com/news/articles/2017-07-20/dollar-remains-weak-as-u-s-politics-steals-show-markets-wrap">Dollar Stays Weak on U.S. Politics; Aussie Falls (Bloomberg.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.marketwatch.com/story/golds-run-of-4-gains-looks-vulnerable-at-hands-of-recovering-dollar-2017-07-20">Gold marks longest win streak in 2 months as U.S. dollar sinks (MarketWatch.com)</a></strong></p> <div class="mceTemp" style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"> <dl class="wp-caption alignnone" style="margin-bottom: 0px; max-width: 100%; width: 908px;"> <dt class="wp-caption-dt"><a href="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/07/remembering-crash-2008-in-CAD-2017.07.19.jpg" target="_blank"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/07/remembering-crash-2008-in-CAD-2017.07.19.jpg" width="898" height="610" style="height: auto; max-width: 100%; display: block;" /></a></dt> <dd class="wp-caption-dd" style="font-size: 14px; padding-top: 0.5em; margin-bottom: 0px; margin-left: 0px;">Source: BMG</dd> </dl> </div> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://stansberrychurchouse.com/education/investment-education/three-things-wish-id-understood-money-long-time-ago/">Three things I wish I’d understood about money a long time ago (StansBerryChurcHouse.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="https://bonnerandpartners.com/the-next-credit-crisis-has-already-started/">The NEXT Credit Crisis Has Already Started (BonnerAndPartners.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.zerohedge.com/news/2017-07-19/bill-blain-here-southern-europes-next-tipping-point">Southern Europe's Next Tipping Point - Italy (ZeroHedge.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="https://dailyreckoning.com/real-reason-stocks-setting-records-2/">Real Reason Stocks Are Setting Records? (DailyReckoning.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="https://www.bloomberg.com/news/videos/2017-07-20/doha-bank-says-central-bank-has-enough-cash-gold-video">Video: Qatar Doha Bank Says Central Bank Has Enough Cash, Gold (Bloomberg.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Gold Prices (LBMA AM)</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">21 Jul: USD 1,247.25, GBP 958.89 &amp; EUR 1,071.39 per ounce<br />20 Jul: USD 1,236.55, GBP 953.63 &amp; EUR 1,075.06 per ounce<br />19 Jul: USD 1,239.85, GBP 950.84 &amp; EUR 1,074.83 per ounce<br />18 Jul: USD 1,237.10, GBP 949.47 &amp; EUR 1,071.82 per ounce<br />17 Jul: USD 1,229.85, GBP 940.71 &amp; EUR 1,074.03 per ounce<br />14 Jul: USD 1,218.95, GBP 940.54 &amp; EUR 1,067.92 per ounce<br />13 Jul: USD 1,221.40, GBP 944.51 &amp; EUR 1,071.05 per ounce</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Silver Prices (LBMA)</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">21 Jul: USD 16.43, GBP 12.63 &amp; EUR 14.11 per ounce<br />20 Jul: USD 16.18, GBP 12.50 &amp; EUR 14.07 per ounce<br />19 Jul: USD 16.23, GBP 12.44 &amp; EUR 14.08 per ounce<br />18 Jul: USD 16.17, GBP 12.41 &amp; EUR 13.99 per ounce<br />17 Jul: USD 16.07, GBP 12.30 &amp; EUR 14.02 per ounce<br />14 Jul: USD 15.71, GBP 12.11 &amp; EUR 13.76 per ounce<br />13 Jul: USD 15.95, GBP 12.34 &amp; EUR 14.00 per ounce</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><br />Recent Market Updates</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.goldcore.com/us/gold-blog/millennials-can-punt-bitcoin-gold-silver-long-term/">-&nbsp;Millennials Can Punt On Bitcoin, Own Gold and Silver For Long Term</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/time-position-gold-right-now-says-jim-rickards/">-&nbsp;“Time To Position In Gold Is Right Now” says Jim Rickards</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/bloomberg-silver-price-survey-median-12-month-forecast-20/">-&nbsp;Bloomberg Silver Price Survey – Median 12 Month Forecast Of $20</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/bigger-systemic-risk-now-2008-bank-england/">-&nbsp;“Bigger Systemic Risk” Now Than 2008 – Bank of England</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/financial-crisis-coming-end-2018-prepare-urgently/">-&nbsp;“Financial Crisis” Coming By End Of 2018 – Prepare Urgently</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/video-gold-probably-5000-cme-chairman/">-&nbsp;Video – “Gold Should Probably Be $5000” – CME Chairman</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/india-gold-imports-surge-5-year-high-220-tons-may-alone/">-&nbsp;India Gold Imports Surge To 5 Year High – 220 Tons In May Alone</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/silvers-plunge-nearing-completion/">-&nbsp;“Silver’s Plunge Is Nearing Completion”</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/china-russia-alliance-deepens-american-overstretch/">-&nbsp;China, Russia Alliance Deepens Against American Overstretch</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/silver-prices-bounce-higher-futures-manipulated-7-lower-minute/">-&nbsp;Silver Prices Bounce Higher After Futures Manipulated 7% Lower In Minute</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/precious-metals-best-defence-bail-ins-economic-crisis/">-&nbsp;Precious Metals Are “Best Defence” Against Bail-ins In Economic Crisis</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/buy-gold-near-1200-insurance-ubs-wealth/">-&nbsp;Buy Gold Near $1,200 “As Insurance” – UBS Wealth</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/uk-house-prices-brink-massive-40-collapse/">-&nbsp;UK House Prices ‘On Brink’ Of Massive 40% Collapse</a></strong></p> <div class="m_-928942620346942956content-border-top" style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"> <div class="m_-928942620346942956container"> <div class="m_-928942620346942956row"> <div class="m_-928942620346942956col-sm-8 m_-928942620346942956col-md-6 m_-928942620346942956middle-col"> <div class="m_-928942620346942956blog-post-inside m_-928942620346942956post-4043 m_-928942620346942956post m_-928942620346942956type-post m_-928942620346942956status-publish m_-928942620346942956format-standard m_-928942620346942956hentry m_-928942620346942956category-weekly-market-update"> <div class="m_-928942620346942956blog-post-text"> <p>&nbsp;<em><br />"It is important to note that all&nbsp;<strong>portfolios under all conditions actually perform better with exposure to gold and silver"</strong>&nbsp;-&nbsp;<strong>David Morgan</strong></em></p> <div class="wpview wpview-wrap" style="width: 824.906px; position: relative; clear: both; margin-bottom: 16px; cursor: default; border: 1px solid transparent;"><iframe src="https://www.youtube.com/embed/nCO8n2nV53A?feature=oembed" width="500" height="281" frameborder="0"></iframe></div> <p>In the short video above, David Morgan, the Silver Guru, speaks briefly about the importance of owning&nbsp;<a href="http://www.goldcore.com/uk/our-products/silver-coins/">silver bullion coins</a>&nbsp;and bars as financial insurance in an uncertain world. He&nbsp;speaks about&nbsp;<a href="http://www.goldcore.com/us/our-services/storage-2/">GoldCore Secure Storage</a>&nbsp;and how he recommends GoldCore's&nbsp;<strong>ultra secure allocated and segregated</strong>&nbsp;gold, silver, platinum and palladium&nbsp;<strong>bullion storage</strong>&nbsp;(Zurich, London, Singapore and Hong Kong) to his retail and high net worth clients.</p> </div> <p>&nbsp;</p> </div> </div> </div> </div> </div> http://www.zerohedge.com/news/2017-07-21/gold-hedges-against-currency-devaluation-and-cost-fuel-food-beer-and-housing#comments ATM Aussie Bank of England Bank of England Bitcoin British Pound Business Central Banks China CPI Credit Crisis Currency Economy European Central Bank Germany Gold Gold as an investment headlines Hong Kong Hyperinflation Hyperinflation India Inflation Italy Jim Rickards Lloyds Money Pound sterling Precious Metals Precious metals Purchasing Power Reuters Silver as an investment Southern Europe United States dollar Zimbabwean dollar Zurich Sun, 23 Jul 2017 12:00:00 +0000 GoldCore 600210 at http://www.zerohedge.com "You Afraid Of A Dead Body?" Boys Who Laughed While Man Drowned Will Face Charges http://www.zerohedge.com/news/2017-07-22/you-afraid-dead-body-boys-who-laughed-while-man-drowned-will-face-charges <p>In a news story that sounds like something from Mad Max, a group of Florida teenagers who filmed themselves laughing and cracking jokes while a disabled man drowned, and then left the scene without telling anybody, will face criminal charges after all &ndash; but there&rsquo;s a catch.</p> <p>The teenagers, each between the ages of 14 and 16, will be charged with not reporting a death, a misdemeanor offense under Florida law. Authorities initially said there didn&rsquo;t appear to be grounds to prosecute the teens, who were caught on camera mocking 32-year-old Jamel Dunn as he drowned in Cocoa, Florida, according to the <a href="http://nypost.com/2017/07/21/teens-who-laughed-as-man-drowned-will-face-charges/">New York Post.</a></p> <p>The callous crime, which is vaguely reminiscent of the infamous Kitty Genovese slaying in New York City, is indicative of a trend tht has been bothering older Americans since the first signs began emerging in the early 90s. The contemporary breakdown in communal responsibility, fostered by smartphones and digitization of daily life, where violent videos inure children to death and violence. <strong>The boys can be heard in the video discussing Dunn&rsquo;s impending death. One of the boys teased another about being scared to see a dead body, the boy replies &ldquo;I ain&rsquo;t scared to see no dead person.&rdquo;</strong></p> <p><iframe allowfullscreen="" frameborder="0" height="348" src="//players.brightcove.net/4137224153001/547c727e-2209-4fad-afc9-39b66e79dab4_default/index.html?videoId=5515725569001" width="618"></iframe></p> <p><strong>The disturbing footage, recorded by one of the boys, shows Dunn, who is disabled, struggling and screaming for help in the pondIn response, the boys urge him to get out of the water &ndash; &ldquo;Get out the water you&rsquo;re going to die!&rdquo;&nbsp; Another boy shouts. &ldquo;We&rsquo;re not finna help you!&rdquo;</strong></p> <p>The recommended charges will be given to the Florida State Attorney&rsquo;s Office, which will determine whether to prosecute the teens, according to Cocoa Police Chief Mike Cantaloupe.</p> <p>Even if the boys are charged, misdemeanors typically carry sentences of less than a year, leaving the boys free of criminal records, unless they commit more crimes as adults Cocoa Police Department spokesperson Yvonne Martinez said the teens, ages 14 to 16, had The department didn&rsquo;t disclose the number of teens involved, or their names.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;He started to struggle and scream for help and they just laughed,&rdquo; Martinez said. &ldquo;They didn&rsquo;t call the police. They just laughed the whole time. He was just screaming &hellip; for someone to help him.&rdquo; </strong>The teenagers didn&rsquo;t stop joking about Dunn when he failed to surface in the water.</p> </blockquote> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;Oh, he just died,&rdquo; said one as the others laughed.</p> </blockquote> <p><strong>The teens left the Cocoa park without notifying anyone about Dunn&rsquo;s death. Three days later, his body was discovered in the pond.</strong></p> <p>&ldquo;<strong>We are deeply saddened and shocked at both the manner in which Mr. Dunn lost his life and the actions of the witnesses to this tragedy,&rdquo; </strong>State Attorney Phil Archer said in a statememt, according to NBC News.</p> <p>Dunn&rsquo;s sister Simone McIntosh started a GoFundMe campaign to raise money for his funeral and to help his two daughters.t Dunn&rsquo;s death. Three days later, his body was discovered in the pond.</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="721" height="524" alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017.07.22florida.JPG?1500760724" /> </div> </div> </div> http://www.zerohedge.com/news/2017-07-22/you-afraid-dead-body-boys-who-laughed-while-man-drowned-will-face-charges#comments Cocoa Cocoa Police Cocoa Police Department Cocoa, Florida E.S.P. Florida Florida State Attorney’s Office GoFundMe Law NBC New York City New York Post smartphones Social Issues Television in the Philippines Sun, 23 Jul 2017 03:30:00 +0000 Tyler Durden 600287 at http://www.zerohedge.com Paul Craig Roberts Rages At "The Reign Of Propaganda" http://www.zerohedge.com/news/2017-07-22/paul-craig-roberts-rages-reign-propaganda <p><a href="http://www.paulcraigroberts.org/2017/07/20/the-reign-of-propaganda/"><em>Authored by Paul Craig Roberts,</em></a></p> <p><strong>If truth has a chance it is in a different country than America...</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_prop.jpg"><img height="334" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_prop_0.jpg" width="600" /></a></p> <p>Masters of propaganda from its inventor, Jewish public relations expert Edward Louis James Bernays, to the Nazi Minister of Propaganda Paul Joseph Goebbels, agree that <span style="text-decoration: underline;"><strong>a lie can be turned into truth by constant repetition.</strong></span></p> <p><strong>The more pure the lie, the more complete the success in turning it into The Truth.</strong> Lies partly based in fact or half-truths open themselves to factual challenge.<strong> For a propagandist the best lie is a lie unfettered by even a distant relationship to truth.</strong> Such a lie can be turned into such self-evident truth that no evidence is necessary. As Nikki Haley and Hillary Clinton put it: &ldquo;Evidence! We don&rsquo;t need any stinking evidence. <em>We know Russia hacked our election!</em>&rdquo;</p> <p>For the typical American, who doesn&rsquo;t know anything, the confidence of the former Secretary of State and &ldquo;rightful President of the USA&rdquo; and the confidence of President Donald Trump&rsquo;s own Ambassador to the United Nations are sufficient to convince them that the<strong> lie that Russia stole the US presidency for Trump is true. We all know it. Why? Because we have all heard it endlessly repeated for many months. </strong>As one acquaintance said: <u><em><strong>&ldquo;If it were false, surely the media would have exposed it.&rdquo;</strong></em></u> This insouciant naivete is characteristic of Western populations.</p> <p>As Bernays and Goebbels knew, <strong>one good propagandist can control the opinion of the targeted group, whether it is a gender or a nation.</strong></p> <p><strong>Initially for Bernays the targeted group was American women. </strong>As a propagandist for an American tobacco company, &ldquo;the father of spin&rdquo; promoted female smoking as a sign of feminist independence. He called cigarettes &ldquo;Torches of Freedom.&rdquo; He also provided the propaganda that enabled the United Fruit Company to have the US Government overthrow the elected government of Guatemala in 1954.</p> <p><strong>Goebbels turned Germans into servants of the Third Reich,</strong> an accomplishment the neoconservatives have yet to attain in the United States, but they are still working at it.</p> <p><strong>The neoconservatives, the military/security complex, the Israel Lobby, and the US presstitutes have succeeded in blocking Trump from withdrawing from Syria and from normalizing relations with Russia. </strong>They have succeeded in this by using their fabrication, &ldquo;Russia-gate,&rdquo; to put President Trump in a box. If Trump now normalizes relations with Russia, it will be presented to the world by the presstitutes as proof that the Putin/Trump conspiracy against Western democracy is real. If Trump were to normalize relations, thereby removing &ldquo;the threat&rdquo; that justifies the power and profit of the military/security complex&rsquo;s budget, he would likely be impeached as a traitor to the USA. Trump&rsquo;s tweets would be overwhelmed by the onslaught of the presstitutes.</p> <p>Americans, British, Europeans, Russians, Chinese, Indians, and everyone else need to understand that Washington&rsquo;s hostility toward Russia is in the service of powerful interest groups. These interest groups are more powerful than the President of the US.</p> <p>Israel and its design on the Middle East is one of these powerful interest groups. As Admiral Tom Moorer, Chief of Naval Operations and Chairman of the Joint Chiefs of Staff said, &ldquo;No American president can stand up to Israel.&rdquo;</p> <p>The neoconservatives, who serve both the Zionist state of Israel and the US military/security complex, are another of the powerful interest groups that constrain the American government. That the neocons are firmly allied with Israel and the military/security complex increases their power and influence. <strong>President Eisenhower warned Americans in 1961 in his last public address to the American people that the power of the military/industrial complex made it a threat to American democracy</strong>:</p> <p><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/knBEQnuJNiI" width="560"></iframe></p> <p>Eisenhower&rsquo;s warning was 56 years ago. <strong>With the President of the United States concerned about the military/industrial complex 56 years ago, try to imagine how much more this power is entrenched after the decades of the Cold War and &ldquo;Soviet Threat.&rdquo;</strong> The power of the military/security complex is the premier power in Washington.</p> <p><u><strong>Eisenhower&rsquo;s speech is the best speech any American President has ever delivered. It is only 14 minutes and 4 seconds long; yet it covers everything.</strong></u> There is awareness that we can be victims of our own success. Whatever their public position, neoconservatives have no alternative but to hate President Eisenhower with a passion, because he compared the threat to America from the military/industrial complex to the threat from the Soviet Union.</p> <p><strong>Americans need to wise up, as do the Russians, Chinese, Europeans and everyone else over whom the neoconservatives intend to exercise hegemony regardless of the cost. </strong>The total budget of the US military/security complex has been estimated at $1.1 trillion, a figure that is 70% of Russia&rsquo;s estimated 2017 GDP. It is larger than the GDP of Mexico and Turkey. It is 45% of the GDP of France or England, and 32% of the GDP of Germany. There are 195 countries in the world. Only 14 of them have A Gross Domestic Product larger than the budget of the US military/security complex.</p> <p>Washington&rsquo;s wars in the Middle East involve many interests, including mundane ones such as who controls pipeline locations and energy flows. It also involves Israel&rsquo;s interests. Twice Israel has sent its army into southern Lebanon for the purpose of occupying and annexing the water resources of southern Lebanon, and twice the militia Hezbollah has defeated and driven out the Israeli army, the fighting capability of which is overrated. Hezbollah receives financial and military support from Syria and Iran. Using their neoconservative allies and the orchestrated-by- propaganda American hatred of Muslims, Israel intends to use the US military to put Syria and Iran in the same state of chaos as Iraq and Libya. If deprived of outside support, Hezbollah can finally be defeated by the Israeli army. With Syria and Iran in chaos, the Russophobic neoconservatives can send jihadism into the Russian Federation to break up the biggest constraint on US unilateralism.</p> <p>If we consider the combined power of these interest groups&mdash;the US military/security complex with an annual budget greater than the GDP of most countries, the neoconservatives with their ideology of US world hegemony and alliance with both Democratic and Republican parties, and Israel which has the US government in its pocket and brags about it&mdash;how is it possible for President Trump to do as he said he would do and normalize relations with Russia and withdraw from the US interventions in the Middle East? The prospect of Trump succeeding is remote.</p> <p><em><strong>If the Russian government fails to understand that President Trump is not the one who is in charge, Russia will be destroyed along with America and the rest of the world.</strong></em></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="874" height="486" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170722_prop.jpg?1500754114" /> </div> </div> </div> http://www.zerohedge.com/news/2017-07-22/paul-craig-roberts-rages-reign-propaganda#comments American government army Conservatism Conservatism in the United Kingdom Conservatism in the United States Donald Trump Donald Trump Edward Bernays France Germany Gross Domestic Product Hezbollah Hizballah Iran Iraq Israel Israeli Army Mexico Middle East Middle East Neocons Neoconservatism Politics Politics Propaganda Russian government Russian interference in the 2016 United States elections southern Lebanon Turkey United Nations United States US government US military War Sun, 23 Jul 2017 03:00:00 +0000 Tyler Durden 600285 at http://www.zerohedge.com David Rosenberg: "This Is The Single Most Important Thing For The Market Over The Next Decade" http://www.zerohedge.com/news/2017-07-22/david-rosenberg-single-most-important-thing-market-over-next-decade <p>Several years ago, Gluskin Sheff's superstar economist (previously at Merrill), David Rosenberg (in)famously flipped from bear to bull, predicting what amounts to a victory for the Fed: a jump in (wage) inflation, a burst in economic growth, and an overall selloff in that most deflation-dependent asset, the US Treasury. None of those happened, and while we (gently) mocked Rosie's transformation at the time, recently Rosenberg himself admitted that our skepticism was accurate, when he reverted to his bearish bias over the past year, predicting that deflation would end up winning after all.</p> <p>Today, in his latest market musings chartpack, we present the key reasons why Rosenberg has never been more convinced that all those calling for an end to the secular bond bull market, are wrong and why despite the Fed's best intentions to create the impression that the global economy is stabilizing, what is about to be unleashed on the global economy is at least 5 years of accelerating deflationary pressures. </p> <p>As the main catalysts for his gloomy outlook, Rosenberg lists the obvious ones, <strong>debt and deflation</strong>, but by far the most important factor that prompted Rosenberg to revert to the "dark side", the one about which Rosie says <em>"nothing is more important than this if you are looking at what will fundamentally influence the financial markets for the next decade-plus"... </em>is <strong>demographics. </strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>"The first of the boomers turned 70 this past year, that 80 million proverbial pig-in-the-python in North America, and 1.5 million will be doing so each year for the next fifteen years."</p> </blockquote> <p>That fact, Rosenberg believes, will be the single most important driver of returns over the next decade. </p> <p>Below, he explains why those seeking to understand market moves and inflationary forces over the coming ten years, should first and foremost focus on demographics. Everything else will follow. </p> <p>* * * </p> <p><em>as excerpted from </em><strong>Lower for Longer Lingers, </strong>by <em>David Rosenberg, July 2017</em></p> <p><strong>We are back into the “lower for longer” theme — lower growth, lower inflation and lower bond yields.</strong> Each cycle, the peaks keep on going lower and lower. Just as Bank of Canada Governor Stephen Poloz warned everyone last September. To be sure, he just raised the overnight rate and likely does one or two more, but not likely more than that. And importantly, the interest rate that the markets determine, such as the 10-year and 30-year GoC bond yields, are both lower today than they were the day the BoC tightened policy. This is useful information on its own.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20lower%20for%20longer.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20lower%20for%20longer_0.jpg" width="500" height="256" /></a></p> <p>The “lower for longer” theme really is all about the economy in 3D — <strong>Debt, Deflation and Demographics. </strong></p> <p>We have written and commented on all these factors repeatedly, in terms of explaining why growth is stuck in the mud, <strong>why pricing power is so elusive, and the effects that the aging but not aged baby boomers are exerting on the economy, capital markets and politics as they have over the past six decades</strong>. This is where the power and wealth is concentrated, and the fact that this demographic bulge is moving into its 70s now along with the rising prospect that this group makes it past 85, is having and will continue to exert powerful influences over asset pricing, and specifically, the secular trend towards seeking income in the equity market given the lack of safe yield in the traditional government bond market. </p> <p>David Foot was my professor and advisor during my time at the University of Toronto back in the early 1980s and has long been Canada’s demographic expert and had a profound influence on me then, as well as today. </p> <p>He famously said that <strong>demographics explains two-thirds of everything, so it is with that in mind that I decided to publish this updated chart package. He could easily have not used a number, and merely said “demographics is destiny” as a loyal subscriber told me just the other day.</strong></p> <p><strong>The first of the boomers turned 70 this past year, that 80 million proverbial pig-in-the-python in North America, and 1.5 million will be doing so each year for the next fifteen years. Nothing is more important than this if you are looking at what will fundamentally influence the financial markets for the next decade-plus. </strong>The law of large numbers makes this critical because we saw how the boomers, when in their 20s and 30s in the 1960s, 1970s and 1980s drove consumption growth and inflation. <strong>We crossed over that mountain already, and will continue to do so for years to come.</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20demographics%201.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20demographics%201_0.jpg" width="500" height="314" /></a></p> <p><strong>Those market pundits screaming that the secular bull market in bonds is over whenever, God forbid, there is a mild correction, will continue to be proven wrong as has already been the case for years</strong>. And similarly for those that say that the dividend yield/growth theme is old, tired and stale — in Canada, there has been just a 3% rise in the price of the TSX over the past decade and yet the total return in the stock market has been 40%. In other words, over time, the total return in the Canadian equity market has been one part price and nine parts reinvested dividend. A 2.8% yield on the TSX is nothing to sneeze at in today’s enduring low-rates environment — you can’t even get that at the very long end of the Spanish government bond curve! <strong>The boomers are being forced to work longer than they have before...</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rossie%20getting%20older.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rossie%20getting%20older_0.jpg" width="500" height="305" /></a></p> <p><strong>... as they redo their calculations of what a comfortable retirement lifestyle looks like given their level of savings — and the realization that they are going to be living a lot longer</strong>. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/savings%20reinvested.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/savings%20reinvested_0.jpg" width="500" height="304" /></a></p> <p>This has obvious implications for the financial markets because the drive for income from the securities they choose to own is going to be every bit as strong as the reason why they are opting to stay in the labor market well into their 70s — the escalating need for reliable and recurring cash flows.</p> <p>There also are other considerations. While the wealth and power...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20wealth%20age%20group.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20wealth%20age%20group_0.jpg" width="500" height="315" /></a></p> <p>... whether in politics...&nbsp;</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20power%20base_0.jpg" width="500" height="310" /></p> <p>... or at the C-suite level in the private sector — resides in the baby boomer cohort...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20c%20suite.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20c%20suite_0.jpg" width="500" height="321" /></a></p> <p>... the peak in income and spending in society occurs in the 45-54 year category. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20saving%20vs%20spending.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20saving%20vs%20spending_0.jpg" width="500" height="294" /></a></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/income%20vs%20spending.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/income%20vs%20spending_0.jpg" width="500" height="301" /></a></p> <p>The fact of the matter is that this age groups’ share of the population will not bottom for at least another six years, while the share of the 65+ crowd will continue to rise inexorably. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/life%20expectancy.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/life%20expectancy_0.jpg" width="500" height="294" /></a></p> <p>So what to expect going forward is what has already been happening this cycle which is that <strong>aggregate growth in incomes and spending will be decelerating, and that will be posing additional deflationary pressures in the economy, and this in and of itself will ensure that bond yields remain extremely low</strong>. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20deflatinary%20trends.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20deflatinary%20trends_0.jpg" width="500" height="297" /></a></p> <p>This is a big challenge for a huge swath of the population moving into that oldest cohort where the desire for cash flows causes them to undergo the most profound asset mix shift since they were in their 30s but this time in the opposite direction — moving into the safe income of bonds and trimming equity exposure. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/boomers%20bonds.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/boomers%20bonds_0.jpg" width="500" height="301" /></a></p> <p><strong>But today, that asset mix shift will look different because the government bond market no longer provides those adequate income flows</strong>…</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20bond%20yields.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/rosie%20bond%20yields_0.jpg" width="500" height="308" /></a></p> <p>... it is the equity market that has filled that role that the bond market has vacated in these ongoing deflationary times.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/wsj%20rosie.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/wsj%20rosie_0.jpg" width="500" height="297" /></a></p> <p>And CEO’s realize this demand from their investor base which is why the dividend story is no longer just confined to banks, utilities and pipelines. Every single TSX sector except for technology now delivers a yield that is better than you can garner at the belly of the GoC bond curve; a decade ago, no sector, not even utilities, could lay that claim.</p> <p>Of course, there are other ways to play the new wave of boomers turning 70 from an investment standpoint beyond “lower for longer”. <strong>The ones that can retire will have one thing on their hands and it is time. And more of it too. </strong>So if it’s all about “follow the money”, as Deep Throat advised Woodward and Bernstein back in the early 70s, then it is “follow the boomers” today. Follow <strong>their spending patterns. As a share of their income, they spend much less on semi-durables like clothing (well, they don’t have to work) and durable goods and housing, but it is remarkable how much they spend on “experiences” now…leisure, hospitality, recreation, entertainment, restaurants, travel/tourism</strong>. As a share of income, those 65 and older actually dole out more on these services than the folks in the age groups behind them! Biotech and medical technologies are obvious aging demographic plays as well (cures for age-related macular degeneration is a massively growing field), but maybe investors should also be seeking out cruise lines that pay out a dividend too!</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/globa%20mail.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/07/20/globa%20mail_0.jpg" width="500" height="321" /></a></p> <p>For more from Rosenberg on the "<a href="http://www.zerohedge.com/news/2017-06-08/david-rosenberg-most-profound-shift-us-economy-has-ever-seen">coming demographic crisis</a>", watch the following clip:</p> <p> <iframe src="https://www.youtube.com/embed/YCy-2LNPvOY" width="500" height="281" frameborder="0"></iframe></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="1280" height="720" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/David%20Rosenberg%20teaser%202.jpg?1500750374" /> </div> </div> </div> http://www.zerohedge.com/news/2017-07-22/david-rosenberg-single-most-important-thing-market-over-next-decade#comments Bank of Canada Bond Bond Business Capital Markets David Rosenberg Deflation Demographics Economy Financial markets Global Economy Inflation Interest rate Macroeconomics Merrill Monetary economics Monetary policy Money None Rosenberg Social Issues Spanish government TSX U.S. Treasury University of Toronto US Federal Reserve Yield Yield curve Sun, 23 Jul 2017 02:47:49 +0000 Tyler Durden 600279 at http://www.zerohedge.com Don't Show President Trump This Chart! http://www.zerohedge.com/news/2017-07-22/dont-show-president-trump-chart <p><span style="text-decoration: underline;"><strong>This won&#39;t help US-China relations... </strong></span>Despite international sanctions aimed at curbing the country&rsquo;s nuclear activities, <strong>North Korea&rsquo;s economy grew by 3.9 percent in 2016, which is the highest growth rate since 1999</strong> (6.1 percent).</p> <p><a href="https://www.statista.com/chart/10380/north-korean-economy-growing-despite-sanctions/" title="Infographic: North Korean Economy Growing Despite Sanctions | Statista"><img alt="Infographic: North Korean Economy Growing Despite Sanctions | Statista" height="428" src="https://infographic.statista.com/normal/chartoftheday_10380_north_korean_economy_growing_despite_sanctions_n.jpg" width="600" /></a></p> <p><em>You will find more statistics at <a href="https://www.statista.com/">Statista</a></em></p> <p><a href="https://www.statista.com/chart/10380/north-korean-economy-growing-despite-sanctions/">As Statista&#39;s Isabel von Kessel writes, </a>according to figures released by the Seoul-located&nbsp;<a href="http://www.bok.or.kr/contents/total/eng/boardView.action?boardBean.brdid=20822&amp;boardBean.rnum=1&amp;menuNaviId=634&amp;boardBean.menuid=634&amp;boardBean.cPage=1&amp;boardBean.categorycd=0&amp;boardBean.sdt=&amp;boardBean.edt=&amp;boardBean.searchColumn=&amp;boardBean.searchValue=" target="_blank">Bank of Korea</a>&nbsp;(BOK) on Friday,<strong> growth rates were the highest in the sectors mining and manufacturing (6.2 percent) as well as electricity, gas and water supply (22.3 percent).</strong> These sectors account for almost 40 percent of the total nominal GDP. Also, exports rose by 4.6 percent amounting to $2.82 billion year-over-year.</p> <p><strong>Since 1991, the South Korean bank has been releasing data on North Korea every year,</strong> using basic data on production quantities supplied by relevant institutions, including South Korea&#39;s Ministry of Unification and the National Intelligence Service.</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="730" height="465" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170721_NK.jpg?1500751236" /> </div> </div> </div> http://www.zerohedge.com/news/2017-07-22/dont-show-president-trump-chart#comments Bank of Korea Business national intelligence National Intelligence Service Nominal GDP North Korea Republics South Korea South Korea's Ministry of Unification Unification World Sun, 23 Jul 2017 02:30:00 +0000 Tyler Durden 600282 at http://www.zerohedge.com Is This The New Media Normal: Manufactured News For Hire? http://www.zerohedge.com/news/2017-07-22/new-media-normal-manufactured-news-hire <p><a href="http://www.tabletmag.com/jewish-news-and-politics/241381/news-of-the-news"><em>Authored by Lee Smith via TabletMag.com,</em></a></p> <p>Donald Trump, Jr. appears to be the latest figure in President Donald Trump&rsquo;s inner circle to be caught in the giant web of the Great Kremlin Conspiracy. Trump the younger said he was promised dirt on Hillary Clinton, but that all he got in his June 2016 meeting with a Russian lawyer was an <a href="https://www.washingtonpost.com/news/josh-rogin/wp/2017/07/11/inside-the-link-between-the-russian-lawyer-who-met-donald-trump-jr-and-the-trump-dossier/">earful</a> about dropping the Magnitzky Act, which sanctions Russian officials involved in the death of a Russian lawyer who was killed in detention.</p> <p>If the Trump, Jr. meeting is just another chapter in the Beltway <em>telenovela</em> about Trump selling out America to the Russians through an ever-changing cast of supposed intermediaries - come back, Mike Flynn and Carter Page, we hardly knew ye - <strong>it sheds valuable light on the ways and means by which the news that fills our iPhone screens and Facebook feeds is now produced.</strong></p> <p>You see, the Russian lawyer - often carelessly presented as a &ldquo;Russian government lawyer&rdquo; with &ldquo;close ties to Putin&rdquo; - <strong>Natalia Veselnitskaya, who met with Trump, also worked recently with a Washington, D.C. &ldquo;commercial research and strategic intelligence firm&rdquo; </strong>that is also believed to have lobbied against the Magnitzy Act. <u><strong>That firm, which also doubles as an opposition research shop, is called Fusion GPS</strong></u> - <strong><em>famous for producing the Russia dossier distributed under the byline of Christopher Steele, a former British intelligence agent for hire.</em></strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_news.jpg"><em><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_news_0.jpg" style="width: 600px; height: 313px;" /></em></a></p> <p>Steele&rsquo;s report, a collection of anonymously-sourced allegations, many of which were said to come from &ldquo;high-ranking former Russian government officials&rdquo; - i.e. not exactly the kinds of people who seem likely to randomly shoot the shit with ex-British spooks - detailed Trump&rsquo;s ties to Russian officials and strange sexual obsessions. Originally ordered up by one of Trump&rsquo;s Republican challengers, the dossier circulated widely in D.C. in the months before the 2016 election, pushed by the Clinton campaign, but no credible press organization was able to verify its claims. <strong>After Clinton&rsquo;s surprise loss, the dossier became public, and it&rsquo;s claims - while still unverified - have shaped the American public sphere ever since.</strong></p> <p>Yet <strong>at the same time that Fusion GPS was fueling a campaign warning against a vast Russia-Trump conspiracy to destroy the integrity of American elections, the company was also working with Russia to influence American policy</strong> - by removing the same sanctions that Trump was supposedly going to remove as his quid pro quo for Putin&rsquo;s help in defeating Hillary. Many observers, including the press, can&rsquo;t quite figure out how the firm wound up on both sides of the fence. Sen. Chuck Grassley wants to know if Fusion GPS has <a href="http://www.politico.com/story/2017/03/chuck-grassley-trump-russia-dossier-justice-department-236768">violated</a> the Foreign Agents Registration Act.</p> <p>As the founders of Fusion GPS surely understand, flexibility is a key recipe for success - and the more room you can occupy in the news cycle, the bigger the brand. After all, they&rsquo;re former journalists - and good ones. <strong>Fusion GPS is the story of a few journalists who decided to stop being suckers. They&rsquo;re not buyers of information, they&rsquo;re sellers.</strong></p> <p>***</p> <p><strong>Fusion GPS was founded in 2009&mdash;before the social media wave destroyed most of the remaining structures of 20th-century American journalism&mdash;by two <em>Wall Street Journal</em> reporters, Glenn Simpson and Peter Fritsch.</strong> They <a href="http://heavy.com/news/2017/07/fusion-gps-dossier-russia-trump-jr-christopher-steele-democrat-planned-parenthood-glenn-simpson-peter-fritsch-natalia-veselnitskaya-grassley-hearing/comment-page-1/">picked up</a> former colleagues from the <em>Journal</em>, Tom Catan, and <a href="https://www.cjr.org/special_report/who_works_where_election_journalists_trump_jobs.php">Neil King, Jr.</a>, who were also well-respected by their peers. When the social media wave hit two years later, print media&rsquo;s last hopes for profitability vanished, and Facebook became the actual publisher of most of the news that Americans consumed. Opposition research and comms shops like Fusion GPS became the news-rooms&mdash;with investigative teams and foreign bureaus&mdash;that newspapers could no longer afford.</p> <p><strong>As top reporters themselves, the principals of Fusion GPS knew exactly what their former colleagues needed in order to package and sell stories to their editors and bosses.</strong> &ldquo;Simpson was one of the top terror-finance investigative reporters in the field,&rdquo; says one Washington-based journalist, who knows Simpson professionally and personally, and who asked for anonymity in discussing a former reporter. &ldquo;He got disillusioned when Rupert Murdoch took over the <em>Journal</em> because there was less room for the kind of long-form investigative journalism he thrived on.&rdquo;</p> <p>And now, says the journalist,<em><strong> &ldquo;they&rsquo;re guns for hire. They were hired to dig up dirt on donors to Mitt <a href="https://www.wsj.com/articles/SB10001424052702304203604577397031654422966">Romney&rsquo;s campaign</a>, they were <a href="http://www.weeklystandard.com/the-sordid-history-of-the-firm-behind-the-trump-russia-dossier/article/2006254">hired</a> by Planned Parenthood after a video exposing some of the organization&rsquo;s controversial practices.&rdquo;</strong></em></p> <p>Besides Russia, Fusion GPS has also worked with other foreign countries, organizing campaigns and creating news that furthers the aims of the people who pay for their services&mdash;<strong>using the fractured playing field of &ldquo;news&rdquo; to extend old-fashioned lobbying efforts in a way that news consumers have been slow to understand.</strong></p> <p>Fusion GPS, according to the company&rsquo;s website, offers &ldquo;a cross-disciplinary approach with expertise in media, politics, regulation, national security, and global markets.&rdquo; What does that mean, exactly? <em><strong>&ldquo;They were <a href="https://www.lifesitenews.com/blogs/planned-parenthood-hires-fmr.-lobbyist-for-sheikh-who-burned-american-flag">hired by</a> a sheikh in the UAE after he was toppled in a coup and waged an information war against his brother,&rdquo;</strong></em> one well-respected reporter who has had dealings with the company told me.<strong><em> &ldquo;I believe they seeded the New Yorker story about the Trump Hotel in Azerbaijan with alleged connections to the IRGC. They may have been hired to look into Carlos Slim. It&rsquo;s amazing how much copy they generate. They&rsquo;re really effective.&rdquo;</em></strong></p> <p><u><strong>Yet it is rare to read stories about comms shops like Fusion GPS because traditional news organizations are reluctant to bite the hands that feed them.</strong></u> But they are the news behind the news&mdash;well known to every D.C. beat reporter as the sources who set the table and provide the sources for their big &ldquo;scoops.&rdquo; The ongoing transformation of foundering, profitless news organizations into dueling proxies for partisan comms operatives is bad news for American readers, and for our democracy. But it is having a particularly outsized effect on reporting in the area of foreign policy, where expert opinion is prized&mdash;and easily bought&mdash;and most reporters and readers are only shallowly informed.</p> <p>***</p> <p>For the past seven years, I&rsquo;ve reported on and written about American foreign policy and what I saw as troubling trends in how we describe and debate our relationship to the rest of the world. What I&rsquo;ve concluded during that period is that the fractious nature of those arguments&mdash;over the Iran Deal, for instance, or the war in Syria, or Russia&rsquo;s growing role in the Middle East and elsewhere&mdash;is a symptom of a problem here at home. <strong>The issue is not about this or that foreign policy. Rather, the problem is that the mediating institutions that enabled Americans to debate and decide our politics and policies, here and abroad, are deeply damaged, likely beyond repair.</strong></p> <p>The shape of the debate over the Joint Comprehensive Plan of Action illustrated this most clearly. The Obama White House turned the press into an instrument used not only to promote its initiatives, but also to drown out and threaten and shame critics and potential opponents, even within the president&rsquo;s own party. Given the financial exigencies of a media whose business model had been broken by the internet, mismanagement, and the rise of social media as the dominant information platform, the prestige press sacrificed its independence for access to power. If for instance, your beat was national security, it was difficult at best to cross the very few sources of power in Washington that controlled access to information. Your job depended on it. And there are increasingly fewer jobs in the press.</p> <p><strong>Ironically, the seeds of the moral and physical collapse of the American press were planted at the moment of its greatest popular triumph<em> - All the President&rsquo;s Men</em>. Not the book by Bob Woodward and Carl Bernstein, but the 1976 film lionizing the work of journalists whose big story about the Watergate break-in and cover-up was based on information provided by a government official, who steered their reporting until he brought down the President of the United States. </strong>Oh sure, have it your way, Mark Felt&mdash;aka &ldquo;Deep Throat&rdquo;&mdash;was a whistleblower, a man of conscience serving the people he protected for decades as a federal agent. But he was also a man who wanted to become Director of the FBI, and became furious at Nixon for snubbing him for the top job. In other words, the hero of this epic tale was an embittered law enforcement official who instead of going public with what he knew about a crime, manipulated a vital American institution, the free press, to pay back his boss, while the reporters manfully withheld that information from their readers.</p> <p>This is to take nothing away from the sedulous and detailed reporting of Bob Woodward and Carl Bernstein. But the lesson of Watergate has been imprinted on two generations of journalists, and<strong> it was only a matter of time before it was raised to the level of a virtue in the Obama years&mdash;if you want to break real news, you need to ingratiate yourself with the mid to high-level officials who are in position to leak it to you. <u>And then, the bottom fell out of the news business.</u></strong></p> <p>Try to imagine what it&rsquo;s like for recent graduates from the country&rsquo;s top journalism schools when they first hit the Washington happy hour scene. It&rsquo;s their first time out with their senior colleagues, their mentors&mdash;whoever still has a job. Everyone is three drinks into the evening and bragging about who&rsquo;s closer to some deputy assistant secretary at the Pentagon, or the scheduler for the vice president&rsquo;s chief of staff.</p> <p><em>Gee, </em>the apprentice reporter thinks to herself,<em> in my &ldquo;Sociology of the Fourth Estate&rdquo; seminar at Medill, my favorite professor told me that as journalists, those who help provide the free flow of information necessary for the electorate to make choices about how we live at home and influence others abroad, we serve the American people. And now you&rsquo;re saying that what we&rsquo;re really doing is advancing the interests of certain bureaucrats against their rivals in other bureaucracies. So we&rsquo;re political operatives&mdash;except we get paid less. Much much less.</em></p> <p><strong>The news media is dead broke. </strong>Print advertising is washed up and all the digital advertising that was supposed to replace lost revenue from print ads and subscribers has been swallowed up by Facebook and Google. But the good news is that people will still pay for stories, and it&rsquo;s an awful lot easier to bill one customer than invoicing the 1,500 readers of your blog. The top customers for these stories are political operations.</p> <p><strong>There is no accurate accounting of how many of the stories you read in the news are the fruit of opposition research, because no journalist wants to admit how many of their top &ldquo;sources&rdquo; are just information packagers&mdash;which is why the blinding success of Fusion GPS is the least-covered media story in America right now. </strong>There&rsquo;s plenty of oppo research on the right, but most of it comes from the left. That&rsquo;s not because Republicans are more virtuous than Democrats and look for dirt less than their rivals do. Nor conversely is it because Republicans make a richer subject for opposition research because they&rsquo;re so much more corrupt. Nope, it&rsquo;s simple arithmetic: Most journalists lean to the left, and so do the majority of career officials who staff the federal government. There are more sounding boards on the left, and more sources. It&rsquo;s not ideological, it&rsquo;s business.</p> <p><em><strong>Thus, most of Fusion GPS&rsquo;s contracts seem to come from the left&mdash;except for its most famous project, the Russia dossier. Before it was passed on to the Democrats, it started on the right, when one Republican candidate&mdash;thought to be Jeb Bush but never confirmed&mdash;hired the outfit to amass damning material on Trump. From humble beginnings, it has taken on the shape of a modern-day legend.</strong></em></p> <p>Plugging in various members of the president&rsquo;s circle as possible accomplices&mdash;including his former national security adviser Mike Flynn, Carter Page, Attorney General Jeff Sessions, Trump&rsquo;s son-in-law Jared Kushner, and now Donald Trump, Jr.&mdash;the narrative has led the news, print and broadcast, nearly every day for seven months. The Great Kremlin Conspiracy has fueled the energies of the anti-Trump resistance and turned obscure twitter feeds into folk heroes. More importantly, it has helped obstruct the legislative and political agenda of an administration that has had no shortage of big problems of its own making without also being the target of what has turned out to be most innovative and successful campaign of political warfare in recent memory.</p> <p><u><strong>The Trump-Russia story has frequently been likened to Watergate, a specious comparison since the latter started with evidence of a crime and the former with publication of an anthology of fables, pornography, and Russian-sourced disinformation put together and distributed by partisan political operatives.</strong></u> The salient comparison is rather in the effect&mdash;it has the same feel as Watergate. And <em><strong>it&rsquo;s taking up the same space as Watergate&mdash;and that&rsquo;s because comms shops-for-hire like Fusion GPS have assumed the role that the American press used to occupy.</strong></em></p> <p>***</p> <h3><u><em><strong>Brickbats and Bouquets</strong></em></u></h3> <div style="float: right; margin-left: 15px; width: 150px;">&nbsp;</div> <p><em><strong>On Wednesday, three major news organization published variations of the same story - about the line of succession to the Saudi throne.</strong> It seems that in June the son of King Salman, Mohammed Bin Salman, muscled his cousin Mohammed Bin Nayef out of the way to become the Crown Prince and next in line.</em></p> <p><em>It&rsquo;s a juicy narrative with lots of insider-y details about Saudi power politics, drug addiction, and the ambitions of a large and very wealthy family, but<strong> the most salient fact is that the <a href="https://www.nytimes.com/2017/07/18/world/middleeast/saudi-arabia-mohammed-bin-nayef-mohammed-bin-salman.html">New York Times</a>, <a href="https://www.wsj.com/articles/how-a-saudi-prince-unseated-his-cousin-to-become-the-kingdoms-heir-apparent-1500473999">Wall Street Journal</a>, and <a href="http://www.reuters.com/article/us-saudi-palace-coup-idUSKBN1A41IS">Reuters</a>&nbsp;published what was essentially the same story,</strong> with minor variations, on the same day&mdash;not a breaking news story, but an investigative feature.</em></p> <p><em><strong>In other words, these media organizations were used as part of an information campaign targeting Riyadh, for as yet unknown reasons. Who&rsquo;s behind it?</strong> Maybe an opposition research shop like Fusion GPS, or a less formal gathering of interests, like Saudi opponents foreign and domestic, as well as American intelligence officials.</em></p> <p><em><strong>It&rsquo;s certainly embarrassing to be played for the sucker and see what you likely assumed was a scoop break in two other outlets the very same day,</strong> and some of the bylines involved are capable and talented journalists. But it&rsquo;s perhaps worst for the&nbsp;New York Times, which was compelled to run what amounted to an article-length correction the next day, under the headline,<strong> &ldquo;</strong>Saudi Official Who Was Thought to Be Under House Arrest Receives a Promotion.&rdquo;&nbsp;On Wednesday, the&nbsp;Times&nbsp;reported that&nbsp;Gen. Abdulaziz al-Huwairini had been put under house arrest by a faction loyal to Mohammed Bin Salman.&nbsp;On Thursday, the Times reported that he was in fact named head of a government body overseeing domestic security and counterterrorism issues.</em></p> <p><em>Still, the Times published what was far and away the best piece of foreign news reporting this week, Tim Arango&rsquo;s July 15 <a href="https://www.nytimes.com/2017/07/15/world/middleeast/iran-iraq-iranian-power.html">feature</a>, &ldquo;Iran Dominates in Iraq After US &lsquo;Handed the Country Over.&rsquo; &rdquo; It&rsquo;s a terrifically well-reported and well-written piece explaining how the administrations of George W. Bush and Barack Obama are both to blame for bungling one of the costliest and most controversial foreign engagements in American history.</em></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="1422" height="742" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170722_news.jpg?1500751954" /> </div> </div> </div> http://www.zerohedge.com/news/2017-07-22/new-media-normal-manufactured-news-hire#comments American intelligence American people of German descent Barack Obama British intelligence Business Christopher Steele Competitive intelligence Donald Trump Donald Trump FBI Federal Bureau of Investigation federal government Fourth Estate Fusion GPS Glenn R. Simpson Google Iran Iraq Mass media Middle East Middle East national security New York Times Pentagon Politics Reuters Rupert Murdoch Russian government Russian interference in the 2016 United States elections Russia–United Kingdom relations Salient Selling Out America Television The Fourth Estate Twitter Twitter United Kingdom–United States relations Wall Street Journal Washington D.C. White House White House Sun, 23 Jul 2017 02:00:00 +0000 Tyler Durden 600283 at http://www.zerohedge.com In Furious, Bizarre Tweetstorm Trump Slams Leaks, "Amazon Post", "Failing NYT", Hillary, GOP Senators http://www.zerohedge.com/news/2017-07-22/raging-bizarre-tweetstorm-trump-slams-leaks-amazon-post-failing-nyt-hillary-gop-sena <p>Trump may have broken a personal tweetstorm record on Saturday morning, when starting shortly after 6:30am, in a furious blast of ten tweets (and still going), Trump lashed out at the "Amazon Washington Post", the "failing New York Times", touched on his right to pardon, questioned why the Attorney General isn't looking at the "many Hillary Clinton or Comey crimes" and the "33,000 emails deleted", asked "what about the Clinton ties to Russia including Podesta Company, Uranium deal, Russian reset, big dollar speeches", compared Donald Jr.'s email disclosure to Hillary Clinton's email deletion "and acid wash" of her 33,000 emails, slammed "dead ObamaCare", and finally (at least for now) slammed both Republican senators who must "step up to the plate and vote to Repeal and Replace", as well as Democrat Senators who are "obstructionists, no ideas or votes."</p> <p>The tweet that has attracted the most media attention so far, is Trump's assertion that he has “complete power to pardon” following reports that he was discussing his ability to pardon people in the ongoing investigation into ties between his campaign and Russia. “While all agree the U. S. President has the complete power to pardon, why think of that when only crime so far is LEAKS against us.FAKE NEWS.” </p> <p>The WaPo reported last week that Trump’s new lawyers are looking into his authority to grant pardons in the special counsel’s investigation into Russian meddling in the 2016 presidential election. The Post also said that Trump has also talked to his advisers about his ability to pardon his aides, family members and even himself in the investigation.</p> <p>One adviser who spoke to the newspaper said the president’s inquiries were merely made out of curiosity. “This is not in the context of, ‘I can’t wait to pardon myself,'” the adviser said. </p> <p>Meanwhile on Friday, the White House on Friday would not rule out the possibility that Trump would issue pardons in the investigation. “The president maintains pardon powers like any president would,” White House Press Secretary Sarah Huckabee Sanders said, but added that “there are no announcements” about pardons at this time. </p> <p>Additionally, in one of the more bizarre tweets, Trump alleged The New York Times “foiled” a U.S. attack on the leader of the Islamic State, Al-Baghdadi despite conflicting reports over the past two weeks that he may have been killed in a Russian air strike, suggesting the paper has a “sick agenda” that hurts national security. </p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">The Failing New York Times foiled U.S. attempt to kill the single most wanted terrorist,Al-Baghdadi.Their sick agenda over National Security</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/888711488717934592">July 22, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>It was unclear why the president held the Times responsible or what attack he meant. On Friday, Defense Secretary Jim Mattis said that he believes al-Baghdadi is still alive. The <a href="https://www.nytimes.com/2017/07/21/us/politics/mattis-islamic-state-leader-alive.html">NYT quoted </a>Mattis telling Pentagon reporters that "I think Baghdadi's alive. Until I see his body, I am going to assume he is alive.” </p> <p>Ironically, while Trump slammed the "failing New York Times" on Saturday, and many times in the past, it was the NYT that Trump recently gave a rare wide-ranging one-on-one interview in the Oval Office.</p> <p>As for the rest of his tweets, here they are in all their bizarre tweetstorm glory:</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">A new INTELLIGENCE LEAK from the Amazon Washington Post,this time against A.G. Jeff Sessions.These illegal leaks, like Comey's, must stop!</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/888708453560184832">July 22, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">The Failing New York Times foiled U.S. attempt to kill the single most wanted terrorist,Al-Baghdadi.Their sick agenda over National Security</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/888711488717934592">July 22, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">This morning I will be going to the Commissioning Ceremony for the largest aircraft carrier in the world, The Gerald R. Ford. Norfolk, Va.</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/888713231065391104">July 22, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">While all agree the U. S. President has the complete power to pardon, why think of that when only crime so far is LEAKS against us.FAKE NEWS</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/888724194820857857">July 22, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">So many people are asking why isn't the A.G. or Special Council looking at the many Hillary Clinton or Comey crimes. 33,000 e-mails deleted?</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/888726438265966592">July 22, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">...What about all of the Clinton ties to Russia, including Podesta Company, Uranium deal, Russian Reset, big dollar speeches etc.</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/888727293346156546">July 22, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">My son Donald openly gave his e-mails to the media &amp; authorities whereas Crooked Hillary Clinton deleted (&amp; acid washed) her 33,000 e-mails!</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/888730468732067841">July 22, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">In all fairness to Anthony Scaramucci, he wanted to endorse me 1st, before the Republican Primaries started, but didn't think I was running!</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/888733031875346432">July 22, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">The Republican Senators must step up to the plate and, after 7 years, vote to Repeal and Replace. Next, Tax Reform and Infrastructure. WIN!</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/888734848550043648">July 22, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">ObamaCare is dead and the Democrats are obstructionists, no ideas or votes, only obstruction. It is solely up to the 52 Republican Senators!</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/888736256145985536">July 22, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script> <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="980" height="490" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/trump%20face%20dark_30.jpg?1500727714" /> </div> </div> </div> http://www.zerohedge.com/news/2017-07-22/raging-bizarre-tweetstorm-trump-slams-leaks-amazon-post-failing-nyt-hillary-gop-sena#comments Business Dismissal of United States Attorneys controversy Donald Trump Draft:Timeline of the Trump-Russia Scandal ETC Ford James Comey national security New York Times Newspaper Obamacare Pentagon Politics Russian interference in the 2016 United States elections Special Council United States Uranium White House White House Sun, 23 Jul 2017 01:52:49 +0000 Tyler Durden 600262 at http://www.zerohedge.com Venezuelans Are Now Paying 1000 Times More For US Dollars Than They Did In 2010 http://www.zerohedge.com/news/2017-07-22/venezuelans-are-now-paying-1000-times-more-us-dollars-they-did-2010 <p>The<strong> hyperinflationary-hell </strong>in Venezuela&rsquo;s currency is deepening as a crippling dollar shortage and a threat of&nbsp;oil sanctions <em>(amid President Maduro&#39;s attempts to rewrite the constition to maintain his grip on power)</em> <strong>take their toll on the economy.</strong></p> <p><strong>Venezuela&rsquo;s Latin American neighbors urged President&nbsp;Nicolas Maduro&nbsp;to refrain from actions that might exacerbate the country&rsquo;s political crisis</strong> in a disappointment to some regional governments that favored more direct and forceful criticism. <a href="https://www.bloomberg.com/news/articles/2017-07-21/venezuela-urged-by-mercosur-to-refrain-from-escalating-tensions">As Bloomberg reports,</a> Mercosur, South America&rsquo;s largest trade bloc, <strong><em>called on &ldquo;the government and the opposition not to carry out any initiative that could divide further Venezuelan society or aggravate institutional conflicts,&rdquo;</em></strong> in a joint statement issued at the end of a summit in Mendoza, Argentina. Member countries&nbsp;Brazil, Argentina, Uruguay and Paraguay&nbsp;were joined by Chile, Colombia, Guyana and Mexico in signing the statement.</p> <p><strong>International condemnation of the&nbsp;Maduro government&rsquo;s plan to rewrite the country&rsquo;s constitution to maintain its hold on power is gathering pace</strong> after the U.S.&nbsp;said&nbsp;it would impose sanctions on Venezuelan officials if Maduro goes ahead.</p> <p><a href="http://www.zerohedge.com/news/2017-07-20/us-may-halt-oil-imports-venezuela">As we noted earlier in the week, </a>The Trump administration is mulling over <a href="https://www.reuters.com/article/us-venezuela-politics-idUSKBN1A20BR">sanctions </a>against senior Venezuelan government officials, and <strong>additional measures could include sanctions against the country&rsquo;s oil industry, such as halting imports into the U.S.</strong>, according to senior Washington officials who spoke to media.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170720_venz1.jpg"><img height="311" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170720_venz1.jpg" width="600" /></a></p> <p><strong>The goal of the sanctions is to prevent the Nicolas Maduro government from having things its way at a July 30 election for a Constituent Assembly that, the U.S. administration believes, would serve to cement Maduro&rsquo;s power and turn Venezuela into a &ldquo;full dictatorship.&rdquo;</strong></p> <p><strong><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170720_venz2.jpg"><img height="288" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170720_venz2_0.jpg" width="600" /></a></strong></p> <p>The Constitutional Assembly vote was proposed by the government as a means of tackling the political crisis that Venezuela slid into last year, after the election of a new parliament where the opposition had a majority that put it at odds with the government. <strong>A Constituent Assembly can rewrite the country&rsquo;s constitution, and many observers see the move as an attempt to strengthen the current regime&rsquo;s hold on power.</strong></p> <p>After months of often violent protests, the opposition has now called a 24-hour national strike after conducting an unofficial referendum that, Al Jazeera <a href="http://www.aljazeera.com/indepth/features/2017/07/hour-venezuela-won-stop-170718074355916.html">reports</a>, suggested <strong>overwhelming opposition to the idea of voting for a Constituent Assembly and equally overwhelming support for transparent parliamentary elections.</strong></p> <p>And as protests escalate and international pressure builds, the black market price for dollars in Bolivars has gone vertical.<strong> In fact, Venezuelans are now paying 1000 times more for a US dollar than they were in 2010...</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_venz3.jpg"><img height="383" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_venz3_0.jpg" width="600" /></a></p> <p>&nbsp;</p> <p>Visualized a little differently, <a href="https://www.bloomberg.com/news/articles/2017-07-21/the-meltdown-in-venezuela-s-currency-is-deepening">as Bloomberg notes,</a><strong> the black-market rate for the bolivar traded weaker than 8,700 per dollar for the first time,</strong> according to dolartoday.com on Friday, compared with the official rate of around 10 and a more widely used alternative rate of 2,757.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_venz1.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_venz1.jpg" style="width: 600px; height: 420px;" /></a></p> <p>In fact,<strong> the last 3 months have seen the currency collapse by 30%</strong> as the hyperinflationary endgame of socialist utopias once again ends in bloodshed and a nation torn apart...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_venz2.jpg"><img height="381" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_venz2_0.jpg" width="600" /></a></p> <p>&nbsp;</p> <p>As AP reports,<strong> thousands are gathering in the Venezuelan capital for a march toward the embattled nation&#39;s Supreme Court in an escalating push to stop President Nicolas Maduro from proceeding with his plans to rewrite the constitution.</strong></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>The opposition is calling on frustrated Venezuelans to take to the streets to support a slate of Supreme Court judges appointed by the National Assembly on Friday but quickly rejected by the government-stacked court.</p> <p>&nbsp;</p> <p>Organizers hope Saturday&#39;s protest in Caracas will be one of the largest before a scheduled July 30 election for a special assembly to rewrite Venezuela&#39;s charter. Maduro is facing mounting international pressure to cancel the controversial vote.</p> <p>&nbsp;</p> <p><strong>Nearly four months of anti-government protests have left at least 97 people dead, and thousands more have been injured or detained.</strong></p> </blockquote> <p><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_venz5.jpg" style="width: 599px; height: 314px;" /></p> <p><strong>National guard troops in Venezuela&#39;s capital have launched tear gas at protesters,</strong> clouds of white gas and rows of officers on motorcycles are blocking the demonstrators in Caracas.</p> <p><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_venz4_0.jpg" style="width: 600px; height: 349px;" /></p> <p>The violent protests ate instigated from both sides (pro- and anti-Maduro), <strong>alleged supporters of Venezuelan President Nicolas Maduro stormed the opposition-controlled Venezuelan National Assembly</strong> in Caracas earlier this month, injuring several journalists and law makers in the process.</p> <p><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/kgZfGvLkwok" width="560"></iframe><br />&nbsp;</p> <p>In a <strong>move aimed at proving a vision of a possible post-Maduro government,</strong> Bloomberg reports that <strong>Venezuela&rsquo;s opposition-controlled National Assembly swore in 33 Supreme Court judges in a largely symbolic move </strong>as it protests President Nicolas Maduro&rsquo;s plan to rewrite the constitution.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>The existing Supreme Court,&nbsp;appointed by a previous assembly that supported the ruling socialist regime, has been the focus of&nbsp;protests&nbsp;over the past four months. It has sought to limit lawmakers&rsquo; power, and pre-emptively ruled today&rsquo;s Congress session null. The standoff between the rival groups of jurists is likely to increase institutional instability in the country.</p> <p>&nbsp;</p> <p>&ldquo;The National Assembly has taken this important measure to signal the future of the country and to have a court that serves the people and not a political party,&rdquo; Julio Borges, president of the National Assembly, told opposition deputies and spectators assembled in eastern Caracas.</p> <p>&nbsp;</p> <p><strong>&ldquo;There won&rsquo;t be true democracy until we have a strong court. A court without political colors, and where all Venezuelans are equal before the law&rdquo;</strong></p> </blockquote> <p><strong>About 7.5 million opposition supporters rejected Maduro&rsquo;s plan in an unofficial referendum Sunday, and 24-hour strike paralyzed the country Thursday. </strong>The opposition is <strong>building on momentum as the July 30 vote </strong>to name members of a constitutional assembly vote approaches.</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="722" height="420" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170722_venz4.jpg?1500748475" /> </div> </div> </div> http://www.zerohedge.com/news/2017-07-22/venezuelans-are-now-paying-1000-times-more-us-dollars-they-did-2010#comments 2014–17 Venezuelan protests Americas Brazil Congress Constituent Assembly Constitutional Assembly Maduro government Mexico National Assembly Nicolás Maduro Nicolas Maduro government Politics Politics of Venezuela post-Maduro government Presidency of Nicolás Maduro Supreme Court Trump Administration US Administration Venezuela Venezuelan government Venezuelan National Assembly in Caracas Venezuelan protests Sun, 23 Jul 2017 01:30:00 +0000 Tyler Durden 600278 at http://www.zerohedge.com How Will The Empire End? http://www.zerohedge.com/news/2017-07-22/how-will-empire-end <p style="text-align: left;"><em style="line-height: 20.8px;"><span style="color: #800000;">By Chris at&nbsp;<a href="https://capitalistexploits.at/signup/">www.CapitalistExploits.at</a></span></em></p> <p style="text-align: left;">It was back in the early 1800's that the&nbsp;Brits left the sodden, miserable shores of their murky island, grabbed their trumpets, tucked their trousers into the socks, and began conquering the world with the&nbsp;<strong>cunning use of flags.</strong></p> <p style="font-size: 13.008px;"><strong>&nbsp;</strong><img src="https://capitalistexploits.at/wp-content/uploads/2017/05/flags-1024x607.jpg" width="700" height="415" style="display: block; margin-left: auto; margin-right: auto;" class="aligncenter wp-image-16801" /></p> <p style="font-size: 13.008px;">Like all good conquerors, they had a backup plan in the event flags didn't work - guns, which - as it turned out - work bloody well.</p> <p style="font-size: 13.008px;">From about 1815 to 1915, our tea-drinking friends were so successful in this endeavour that the soggy little&nbsp;island in the North Atlantic had turned nearly a quarter of the globe red at its peak.</p> <p style="font-size: 13.008px;"><img src="https://capitalistexploits.at/wp-content/uploads/2017/05/empire.jpg" width="599" height="320" style="display: block; margin-left: auto; margin-right: auto;" class="aligncenter wp-image-16779 size-full" /></p> <p style="font-size: 13.008px;">They were, of course, not the first to embark on empire building.</p> <p style="font-size: 13.008px;">Ahead of them is a long list: the&nbsp;<strong>Babur Empire</strong>, lasting from the 17th to 18th century and spanning Europe and Asia. Then there was the "Golden Horde"... the&nbsp;<strong>Mongols</strong>, who at the height of their reign, incorporated over a quarter of the worlds land mass.</p> <p style="font-size: 13.008px;">Let's not forget&nbsp;<strong>Pax Romana.&nbsp;</strong>The empire lasted 500 years and at its height extended into Africa, Europe, and the Middle East and bullied about a quarter of the world's population. All impressive in its own right.</p> <p style="font-size: 13.008px;">The structure was a familiar one. Tried and tested. The state provides security (military) to ensure stability and enforcement of legal contracts. And while this cost a lot of money, in return the vassal states pay taxes to the empire.</p> <p style="font-size: 13.008px;">As long as the taxes exceeded the costs of keeping the restless natives in check things were golden. As we know this math didn't last forever for any of the empires, including the Brits, who (under increasing costs and decreasing revenues) lost their shiny empire, put away their flags, trudged back to the pub to talk about the weather, and became plumbers.</p> <p style="font-size: 13.008px;">During their conquering reign, however, they gifted large swathes of the rest of the world common law principles (used to this day) and lessons in how to be&nbsp;frightfully polite (not used to this day). In return, the rest of the world gifted them actual cuisine which is why today we don't starve when visiting the soggy island. Without it, I assure you, the place would be completely empty of visitors.</p> <p style="font-size: 13.008px;">What is fascinating is that the collapse of the British empire ushered in modern nation states as we know them today.</p> <p style="font-size: 13.008px;">In 1960 the Prime Minister of Great Britain, Harold Macmillan, delivered a famous speech known as the "<em>Wind of Change"</em>&nbsp;where he discussed this:</p> <blockquote style="font-size: 13.008px;"><p><em>“One of the constant facts of political life in Europe has been the emergence of independent nations… Especially since the end of war, the processes which gave birth to the nation-states of Europe have been repeated all over the world…&nbsp;</em></p> <p>&nbsp;</p> <p><em>&nbsp;</em>&nbsp;<em>Fifteen years ago this movement spread through Asia. Many countries there, of different races and civilization, pressed their claim to an independent national life. To-day the same thing is happening in Africa…</em></p> <p>&nbsp;</p> <p><em>&nbsp;</em><em>In different places it may take different forms, but it is happening everywhere. The wind of change is blowing through the continent… Whether we like it or not, this growth of national consciousness is a political fact. We must all accept it as a fact.”</em></p> </blockquote> <p style="font-size: 13.008px;">You may have noticed that all of the power structures mentioned above were centralised structures. Top down - like a pyramid, with the wealth accumulating at the top.</p> <p style="font-size: 13.008px;">Even the emergence of individual nation states were and are really just "<em>mini me's"</em>&nbsp;of an empire structure, which is to say centralised. This all made perfect sense in the industrial age where commandeering and controlling costly infrastructure was critical. Things such as railroads, canals, mines. Today, we live in a different world, which I'll come to in a bit, but first...</p> <h3>Drawing Parallels With Today</h3> <p style="font-size: 13.008px;">Just as each empire has finally succumbed to the gravity of unprofitable ventures, today we have much of the developed world labouring under similar problems.</p> <p style="font-size: 13.008px;">Europe, the poster child for socialism, has a structure whereby member states in the EU contribute to a centralised bureaucracy and receive a number of benefits in return. The problem is the math doesn't work.</p> <p style="font-size: 13.008px;">Across the ditch, our American friends have much the same issues. A top down structure, centralised... and ever increasingly so.</p> <p style="font-size: 13.008px;">Today, however, the gravity forces at work are due to a setup where those in power will actually cause the demise of this structure. Let me show you how.</p> <p style="font-size: 13.008px;">Today, the costs and losses of the empire (I'm using the term loosely here to include the nation states of the world but in particular the US and EU) are socialised. Like an insurance policy,&nbsp;<strong>the costs are distributed across society. The rewards are, however, privatised.</strong>&nbsp;They don't accrue to the state... and this is very different from how the Romans or Genghis Khan ran things.</p> <p style="font-size: 13.008px;">Lobby groups and big business push for policies and privileges that will benefit their chosen industry and/or business.</p> <p style="font-size: 13.008px;">In turn, the state tilts the playing field in their favour. This comes at a cost, and that cost is a cost to the state, not the industry being favoured.</p> <p style="font-size: 13.008px;">When enough of this happens... like now, for instance, then the finances get all wonky. What's ironic is that the revolving door between Wall Street and the White House is parasitic on the state, which in turn is a parasite on the citizenry.</p> <p style="font-size: 13.008px;">Parasites can be fed and maintained up until the point where they kill the host. The Cheneys, Gores, Bushes, and Clintons of this world don't siphon funds directly from the treasury like our friend&nbsp;<a href="https://capitalistexploits.at/2017/06/make-liquid-please/" target="_blank" rel="noopener">Mugabe</a>&nbsp;and his ilk. They just do the same thing via companies and charities. It provides a cloak to true intentions... but the results are the same. A math problem which reaches breaking point.</p> <p style="font-size: 13.008px;">This is a problem not just for the US and Europe. It's a problem for the nation state structure, which is more buggered than an alter boy in the Vatican.</p> <p style="font-size: 13.008px;">This is because the centralised structure of not only running a country but doing business at every level is being destroyed.</p> <p style="font-size: 13.008px;">The vast majority of real wealth in the world today&nbsp;<a href="https://capitalistexploits.at/2017/06/solving-liquidity-problem-not-think/" target="_blank" rel="noopener">involves intellectual property,</a>&nbsp;and in the information age... which is where we find ourselves living in today, this matters a great deal to centralised structures.</p> <p style="font-size: 13.008px;">Consider that, for the first time in history, individual companies are worth more than the most modern large governments of the world. It is a consequence of an ongoing unstoppable trend towards decentralisation, and it promises to bring us an entirely different empire that will follow the existing one.</p> <p style="font-size: 13.008px;">While it's easy enough to see that the empire won't last... what replaces it will, I believe, look distinctly different to yet another centralised nation state. This I'll deal with in some other article, but one thing I'm confident in is that the distribution of wealth isn't likely to change. Pareto's principle is well defined and consistent. What changes are those at the top and those at the bottom. For today's article, let's ask the question of what... or how this empire succumbs.</p> <p style="font-size: 13.008px;">Will the catalyst be the massive bond bubble breaking? And yes, boys and girls...<strong>&nbsp;it is a bubble.</strong>&nbsp;&nbsp;</p> <p style="text-align: center;"><em><img src="https://capitalistexploits.at/wp-content/uploads/2017/07/Screenshot-2017-07-19-18.28.44-1024x554.png" width="700" height="379" class="wp-image-17418" /></em></p> <p style="text-align: center;"><em>US 10-year, German Bund 10-year, UK Gilt 10-year</em></p> <p style="font-size: 13.008px;">The philosopher Nietzsche noted:&nbsp;<em>“In individuals, insanity is rare; but in groups,&nbsp;it is the rule.”</em></p> <p style="font-size: 13.008px;">Or will it be some military fiasco?</p> <p style="font-size: 13.008px;">Qatar, North Korea, Russia, South China Sea, Syria escalating and drawing in more participants.</p> <p style="font-size: 13.008px;">Or something else?</p> <h3>Question</h3> <p style="font-size: 13.008px;"><a href="https://capitalistexploits.at/2017/07/will-empire-end/"><img src="http://www.zerohedge.com/sites/default/files/images/user118858/imageroot/2017/07/20/wow-poll-170718.png" alt="Wow Poll 17 Jul 2017" width="600" height="176" /></a></p> <p style="text-align: center;"><em><a href="https://capitalistexploits.at/2017/07/will-empire-end/">Cast your vote here</a>&nbsp;and also see what others think awaits us</em></p> <p style="font-size: 13.008px;">- Chris</p> <p style="font-size: 13.008px;"><em>"</em><em style="font-size: 13.008px;">A great civilization is not conquered from without until it has destroyed itself from within."</em><span style="font-size: 13.008px;">&nbsp;—&nbsp;Ariel Durant</span></p> <p style="text-align: center;"><span style="font-size: 13.008px; line-height: 20.0063px;">--------------------------------------</span></p> <p style="text-align: center;">Liked this article?&nbsp;<a href="https://capitalistexploits.at/signup/">Don't miss our future missives and podcasts, and</a></p> <p style="text-align: center;"><a href="https://capitalistexploits.at/signup/">get access</a>&nbsp;<a href="https://capitalistexploits.at/signup/" style="line-height: 20.8px; font-size: 1em;">to free subscriber-only content here.</a></p> <p style="text-align: center;"><span style="font-size: 13.008px; line-height: 20.0063px;">--------------------------------------</span></p> http://www.zerohedge.com/news/2017-07-22/how-will-empire-end#comments Bond Capitalism Centralisation China Economic ideologies Economy Empire Europe European Union Middle East Middle East Nation state North Atlantic North Korea Political ideologies Politics Socialism South China Structure US Federal Reserve Wealth White House White House Sun, 23 Jul 2017 01:29:35 +0000 Capitalist Exploits 600289 at http://www.zerohedge.com CIA Chief Warns: WikiLeaks Is Plotting To "Take Down America Any Way They Can" http://www.zerohedge.com/news/2017-07-22/cia-chief-warns-wikileaks-plotting-take-down-america-any-way-they-can <p><a href="http://theantimedia.org/cia-chief-wikileaks-plotting-to-take-down-america/"><em>Authored by Jason Ditz via TheAntiMedia.org,</em></a></p> <p>CIA Director Mike Pompeo remains<strong> inconsolably hostile toward whistleblower organization WikiLeaks,</strong> insisting they are a &ldquo;non-state hostile intelligence service&rdquo; and are <strong>plotting to&nbsp;<a href="http://www.washingtontimes.com/news/2017/jul/21/wikileaks-will-take-down-america-any-way-they-can-/">&ldquo;take down America any way they can and find any willing partner to achieve that end.</a>&rdquo;</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_cia.jpg"><img height="292" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/07/16/20170722_cia_0.jpg" width="600" /></a></p> <p><strong>Hostility to WikiLeaks has been a mainstay in the US government,</strong> as every administration faces the prospect of their covert misdeeds becoming a matter of public record, to their general embarrassment albeit rarely to the end of any meaningful reform.</p> <p><strong>President Trump had a positive attitude toward WikiLeaks during last year&rsquo;s campaign, declaring &ldquo;I love WikiLeaks.&rdquo; </strong></p> <p>Pompeo insists he doesn&rsquo;t feel the same way, and that US intelligence agencies need to find ways to fight the organization.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;I don&rsquo;t love WikiLeaks,&rdquo; Mr. Pompeo said Thursday.</p> </blockquote> <p><strong>Pompeo argued that the US needs to use the Espionage Act much more in going after leakers who aren&rsquo;t actually foreign spies,</strong> though he stopped short of openly endorsing Espionage prosecutions against journalists for reporting on the leaks.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;You said that we have to recognize that we can no longer let Assange and his colleagues the latitude to use free speech values against us,&rdquo; New York Times columnist Bret Stephens asked Mr. Pompeo.</p> <p>&nbsp;</p> <p><strong>&ldquo;What does that in your mind imply, legislatively or operationally? Should we be enforcing the Espionage Act much more?&rdquo;</strong></p> <p>&nbsp;</p> <p><span style="text-decoration: underline;"><strong>&ldquo;Yes,&rdquo; </strong></span>Mr. Pompeo responded without hesitation.</p> </blockquote> <p>When <strong>asked if publishers and journalists should be prosecuted for using state secrets,</strong> Mr. Pompeo answered:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;There&rsquo;s an old aphorism that says that the law is entitled to every man&rsquo;s evidence, and I&rsquo;ll leave it at that.&rdquo;</p> </blockquote> <p>Mr. Assange did not respond privately to requests for comment Thursday but reacted to Mr. Pompeo&rsquo;s latest claim in a series of tweets.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><span style="text-decoration: underline;"><em><strong>&ldquo;What sort of America can be &lsquo;taken down&rsquo; by the truth?&rdquo; he tweeted.</strong></em></span></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="712" height="346" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170722_cia.jpg?1500747099" /> </div> </div> </div> http://www.zerohedge.com/news/2017-07-22/cia-chief-warns-wikileaks-plotting-take-down-america-any-way-they-can#comments Central Intelligence Agency Cryptography Espionage Government Julian Assange Mike Pompeo National security New York Times Open government Politics Reception of WikiLeaks U.S. intelligence US government Whistleblowing WikiLeaks Wikileaks Sun, 23 Jul 2017 01:00:00 +0000 Tyler Durden 600277 at http://www.zerohedge.com