http://www.zerohedge.com/fullrss2.xml/news/Al-Qaeda%20Prepares%20For%20War%20Against%20Caliphate en What They're Not Telling You About Trump's Fake Time Magazine Cover http://www.zerohedge.com/news/2017-06-28/what-theyre-not-telling-you-about-trumps-fake-time-magazine-cover <p>The media is having a field day today, bemused by the revelation that Trump has a fake Time Magazine cover of himself in 5 of his clubs. Mika, from The Morning Joe, had a grande time this morning, mocking and ridiculing the 'needy' President for this shocking revelation, saying 'this is your boss.'</p> <p>She prefaced his diatribe by saying 'Trump was so needy that he had not been on Time yet that he made is own', calling the Time cover 'phony', 'fake' and 'pathetic.'<br /> &nbsp;<br /> <a href="https://ibankcoin.com/flyblog/files/2017/06/trumptime.png"><img src="https://ibankcoin.com/flyblog/files/2017/06/trumptime-1024x768.png" width="400" height="464" class="alignnone size-large wp-image-70082" /></a><br /> <em>Fake Time Magazine cover of Trump</em></p> <p>Watch.</p> <p><iframe src="https://www.youtube.com/embed/9Sb_zCfqFUs" width="560" height="315" frameborder="0"></iframe></p> <p>The only problem with Mika's reporting is that it's false. Shocker, eh?</p> <p>Here's Trump on Time Magazine, 1989.<br /> <a href="https://ibankcoin.com/flyblog/files/2017/06/trumpcover1.jpg"><img src="https://ibankcoin.com/flyblog/files/2017/06/trumpcover1.jpg" width="280" height="374" class="alignnone size-full wp-image-70069" /></a></p> <p>Why does Trump have a fake Time Cover in his clubs, when in fact there was a real one in existence? God only knows. It was probably done in jest, garnered a few laughs, and tossed up on his club walls to keep the meme going. The fact that this is news today, just after <a href="http://ibankcoin.com/zeropointnow/2017/06/26/cnn-exposed-in-undercover-sting-producer-admits-russia-story-fake-news-pushed-for-ratings/">CNN got busted</a> for admitting to publishing fake news, is probably not a coincidence.</p> <p>Here are some other Time Trump covers.</p> <p><a href="https://ibankcoin.com/flyblog/files/2017/06/timesign.jpg"><img src="https://ibankcoin.com/flyblog/files/2017/06/timesign.jpg" width="419" height="559" class="alignnone size-full wp-image-70070" /></a> <a href="https://ibankcoin.com/flyblog/files/2017/06/final-election-cover.jpg"><img src="https://ibankcoin.com/flyblog/files/2017/06/final-election-cover.jpg" width="419" height="559" class="alignnone size-large wp-image-70071" /></a> <a href="https://ibankcoin.com/flyblog/files/2017/06/trump-inauguration-cover.jpg"><img src="https://ibankcoin.com/flyblog/files/2017/06/trump-inauguration-cover.jpg" width="419" height="559" class="alignnone size-large wp-image-70072" /></a> <a href="https://ibankcoin.com/flyblog/files/2017/06/intcover0227lr.jpg"><img src="https://ibankcoin.com/flyblog/files/2017/06/intcover0227lr.jpg" width="421" height="559" class="alignnone size-large wp-image-70073" /></a> <a href="https://ibankcoin.com/flyblog/files/2017/06/trumpfinal.jpg"><img src="https://ibankcoin.com/flyblog/files/2017/06/trumpfinal.jpg" width="419" height="559" class="alignnone size-large wp-image-70074" /></a> <a href="https://ibankcoin.com/flyblog/files/2017/06/Trump-5.jpg"><img src="https://ibankcoin.com/flyblog/files/2017/06/Trump-5.jpg" width="419" height="543" class="alignnone size-large wp-image-70075" /></a> <a href="https://ibankcoin.com/flyblog/files/2017/06/Trump-1.jpg"><img src="https://ibankcoin.com/flyblog/files/2017/06/Trump-1.jpg" width="419" height="543" class="alignnone size-large wp-image-70076" /></a> <a href="https://ibankcoin.com/flyblog/files/2017/06/Trump-6.jpg"><img src="https://ibankcoin.com/flyblog/files/2017/06/Trump-6.jpg" width="419" height="543" class="alignnone size-large wp-image-70077" /></a> <a href="https://ibankcoin.com/flyblog/files/2017/06/Trump-8.jpg"><img src="https://ibankcoin.com/flyblog/files/2017/06/Trump-8.jpg" width="419" height="543" class="alignnone size-large wp-image-70078" /></a> <a href="https://ibankcoin.com/flyblog/files/2017/06/Trump-7.jpg"><img src="https://ibankcoin.com/flyblog/files/2017/06/Trump-7.jpg" width="419" height="543" class="alignnone size-large wp-image-70079" /></a> <a href="https://ibankcoin.com/flyblog/files/2017/06/Trump-4.jpg"><img src="https://ibankcoin.com/flyblog/files/2017/06/Trump-4.jpg" width="419" height="543" class="alignnone size-large wp-image-70081" /></a></p> <p>&nbsp;</p> <p>&nbsp;</p> <p>Content originally published at <a href="http://ibankcoin.com/">iBankCoin.com</a></p> http://www.zerohedge.com/news/2017-06-28/what-theyre-not-telling-you-about-trumps-fake-time-magazine-cover#comments American people of German descent Business Deception Donald Trump Economy Fake news Internet culture Social engineering Time Magazine Trump: The Art of the Deal Wed, 28 Jun 2017 19:18:07 +0000 The_Real_Fly 598856 at http://www.zerohedge.com Pornstar Jenna Jameson Nails Playboy WH Correspondent For Sassing Sarah Huckabee Sanders http://www.zerohedge.com/news/2017-06-28/pornstar-jenna-jameson-nails-playboy-wh-correspondent-sassing-sarah-huckabee-sanders <p><span style="margin: 0px; padding: 0px; border: 0px currentColor; border-image: none; color: #000000; text-transform: none; line-height: inherit; text-indent: 0px; letter-spacing: normal; font-family: lucida_granderegular, Verdana, sans-serif; font-size: 13px; font-style: normal; font-weight: normal; word-spacing: 0px; vertical-align: baseline; white-space: normal; box-sizing: border-box; orphans: 2; widows: 2; font-stretch: inherit; background-color: #ffffff; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-numeric: inherit; text-decoration-style: initial; text-decoration-color: initial;">Content originally published at&nbsp;</span><a style="margin: 0px; padding: 0px; border: 0px currentColor; border-image: none; color: #1e439a; text-transform: none; line-height: 1.2; text-indent: 0px; letter-spacing: normal; font-family: lucida_granderegular, Verdana, sans-serif; font-size: 13px; font-style: normal; font-weight: normal; text-decoration: none; word-spacing: 0px; vertical-align: baseline; white-space: normal; box-sizing: border-box; orphans: 2; widows: 2; font-stretch: inherit; background-color: #ffffff; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-numeric: inherit;" href="http://ibankcoin.com/"><span style="font: inherit; margin: 0px; padding: 0px; border: 0px currentColor; border-image: none; text-decoration: underline; vertical-align: baseline; box-sizing: border-box; font-stretch: inherit;">iBankCoin.com</span></a></p> <p>During Tuesday's White House Press conference, Deputy Press Secretary Sarah Huckabee Sanders dropped several MOABs on Fake News following the release&nbsp;of a James O'Keefe / <a href="https://twitter.com/DonaldJTrumpJr/status/879864224046088192" target="_blank" rel="noopener noreferrer">Project Veritas video</a>&nbsp;featuring&nbsp;CNN Health producer John Bonifield, admitting that the Russia narrative against President Trump was for ratings, calling it "Mostly B.S." pushed by CNN CEO Jeff Zucker.</p> <p>In response to&nbsp;Sanders' verbal beatdown of CNN, the White House correspondent for <em>Playboy Magazine</em>, Brian Karem attempted an impassioned defense of&nbsp;the Very Fake News Network&nbsp;-&nbsp;only to be&nbsp;shut down in similar fashion.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><span style="color: #0000ff;">Karem:</span>&nbsp;"You're inflaming everybody right here, right now with those words... Why in the name of heavens... any one of us, right,&nbsp;are replaceable... You have been elected to serve four years at least! There's no option other than that.</p> <p>&nbsp;</p> <p><strong>What you just did is inflammatory</strong> to people all over the country who look at us and say "see, once again. The President's right, and everybody else out here is fake media. And everybody in this room is just trying to do their job.</p> <p>&nbsp;</p> <p><span style="color: #0000ff;">Sanders:</span> I disagree completely. <strong>First of all, I think if anything has been inflamed it's the dishonesty that often takes place by the news media</strong>. And I think it is outrageous for you to accuse me of inflaming a story when I was simply trying to respond to his question.</p> </blockquote> <p>(Skip to 3:30)</p> <div class="wpview wpview-wrap"><iframe width="618" src="https://www.youtube.com/embed/cCepLvPmktM?feature=oembed" height="348" frameborder="0"></iframe><span class="mce-shim">&nbsp;</span><span class="wpview-end">&nbsp;</span></div> <p><span style="color: #000000;"><strong>Enter Jenna Jameson</strong></span></p> <p><img width="300" class="aligncenter size-medium wp-image-9445" style="margin-right: auto; margin-left: auto; display: block;" src="https://ibankcoin.com/zeropointnow/files/2017/06/107242622-630x495-300x236.jpg" height="236" /></p> <p>In response to Karem's sweaty outburst, conservative porn star Jenna Jameson had words for the <em>Playboy</em> correspondent, telling <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwi3rvyHoOHUAhUs7oMKHcLpADUQFggoMAA&amp;url=http%3A%2F%2Fwww.breitbart.com%2Fbig-government%2F2017%2F06%2F28%2Fexclusive-pornstar-jenna-jameson-bashes-playboy-for-defending-very-fake-news-cnn-have-a-seat-playboy%2F&amp;usg=AFQjCNHi6a-Q8QmdotyQgCy9BS1OUPpsBg" target="_blank">Breitbart News</a> that the magazine is "out of touch" and a "failed attempt by liberals" at publicity:</p> <div class="mceTemp"> <dl class="wp-caption aligncenter" style="width: 644px;" id="attachment_9438"> <dt class="wp-caption-dt"><a href="https://ibankcoin.com/zeropointnow/files/2017/06/bb.png"><img width="644" class="size-full wp-image-9438" src="https://ibankcoin.com/zeropointnow/files/2017/06/bb.png" height="163" /></a></dt> <dd class="wp-caption-dd">Breitbart</dd> </dl> </div> <p><span style="color: #ff6600;"><strong><span style="color: #000000;">And in other news, </span>Project Veritas</strong></span> released a <em>second </em>video today of CNN personality Van Jones admitting that the Russia investigation is a "<a href="http://ibankcoin.com/zeropointnow/2017/06/28/okeefe-strikes-again-cnns-van-jones-says-russia-big-nothing-burger/#comment-7914">nothing burger</a>."</p> <p><iframe width="618" src="https://www.youtube.com/embed/l2G360HrSAs?feature=oembed" height="348" frameborder="0"></iframe><span class="mce-shim">&nbsp;</span><span class="wpview-end">&nbsp;</span></p> <p>Perhaps Lord Kek will bless us with another amazing White House press conference...</p> <p style="text-align: center;"><span class="wpview-end" style="margin: 0px; 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font-size: 13px; font-style: normal; font-weight: bold; word-spacing: 0px; vertical-align: baseline; white-space: normal; box-sizing: border-box; orphans: 2; widows: 2; font-stretch: inherit; background-color: #ffffff; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-numeric: inherit; text-decoration-style: initial; text-decoration-color: initial;"><a style="margin: 0px; padding: 0px; border: 0px currentColor; border-image: none; color: #1e439a; line-height: 1.2; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; text-decoration: none; vertical-align: baseline; box-sizing: border-box; font-stretch: inherit;" href="https://www.youtube.com/subscription_center?add_user=ibankcoin" target="_blank"><span style="font: inherit; margin: 0px; padding: 0px; border: 0px currentColor; border-image: none; text-decoration: underline; vertical-align: baseline; box-sizing: border-box; font-stretch: inherit;">YouTube channel</span></a></strong></p> http://www.zerohedge.com/news/2017-06-28/pornstar-jenna-jameson-nails-playboy-wh-correspondent-sassing-sarah-huckabee-sanders#comments Alt-right B+ B.S. Breitbart News CNN Conservatism in the United States Fake news Human Interest Internet culture James O'Keefe Journalism News media Politics of the United States ratings Social engineering Tea Party movement Twitter Twitter White House White House Wed, 28 Jun 2017 19:15:47 +0000 ZeroPointNow 598855 at http://www.zerohedge.com Investors Just Panic-Dumped "Growth" Stocks As ETF Outflows Hit Record High http://www.zerohedge.com/news/2017-06-28/investors-panic-dumped-growth-stocks-yesterday-etf-outflows-hit-record-high <p>After four months of almost incessant panic-buying of &#39;growth&#39; stocks in passive ETFs, something unusual happened this week... <strong><em>US Growth ETFs saw their biggest outflows since inception</em></strong>.</p> <p>As Bloomberg notes,<strong> after beating the main U.S. equity gauge for most of the year,</strong>&nbsp;traders may be becoming nervous about the&nbsp;iShares Core S&amp;P U.S. Growth exchange-traded fund.</p> <p>Earlier this week, investors pulled about $103 million from the ETF,<strong> the biggest single-day outflow since the fund&rsquo;s inception in 2011.</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170628_growth.jpg"><img height="318" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170628_growth_0.jpg" width="600" /></a></p> <p><strong>That comes after a record month for attracting new assets in April. </strong>Though the growth ETF has gained 14 percent this year compared with the&nbsp;S&amp;P 500 Index&rsquo;s 8.9 percent gain, it fell 1.1 percent Tuesday, <strong>putting the ETF on pace for its biggest monthly decline since October.</strong></p> <p><strong><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170628_growth1.jpg"><img height="303" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170628_growth1_0.jpg" width="600" /></a></strong></p> <p>Value beat Growth (so far) this month...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170628_growth2.jpg"><img height="312" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170628_growth2_0.jpg" width="600" /></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="961" height="509" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170628_growth.jpg?1498654786" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-28/investors-panic-dumped-growth-stocks-yesterday-etf-outflows-hit-record-high#comments Business Companies listed on the Toronto Stock Exchange Exchange-traded funds Investment IShares S&P 500 Source UK Services Wed, 28 Jun 2017 19:13:09 +0000 Tyler Durden 598819 at http://www.zerohedge.com Why Congress Won’t Agree to Stop Arming Terrorists http://www.zerohedge.com/news/2017-06-28/why-congress-won%E2%80%99t-agree-stop-arming-terrorists <div class="entry-content"> <p>The director of the National Security Agency under Ronald Reagan &ndash; Lt. General William Odom <a href="http://hammernews.com/odomspeech.htm" target="_blank" title="said">said</a> in 2008:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>By any measure the US has long used terrorism</strong>. In &lsquo;78-79 the Senate was trying to pass a law against international terrorism &ndash; in every version they produced, the lawyers said the US would be in violation.</p> </blockquote> <p>(audio <a href="http://hammernews.com/odom.ram" target="_blank" title="here">here</a>).</p> <p>General Odom is absolutely <a href="http://www.washingtonsblog.com/2017/05/want-stop-terrorism-just-pretend.html#stop" title="is">is</a> <a href="http://www.washingtonsblog.com/2017/05/want-stop-terrorism-just-pretend.html#dictators" title="absolutely">absolutely</a> <a href="http://www.washingtonsblog.com/2017/05/want-stop-terrorism-just-pretend.html#crazy" title="right">right</a> &hellip;</p> <p>And because the U.S. itself uses terrorism, it&rsquo;s very hesitant to get others <a href="http://uk.reuters.com/article/uk-usa-saudi-yemen-exclusive-idUKKCN12A0BG" target="_blank" title="in">in</a> <a href="https://www.vox.com/2016/4/27/11464180/9-11-saudi-lawsuit" target="_blank" title="trouble">trouble</a> for using terrorism.</p> <p>And that&rsquo;s why Congress is refusing to pass a bill agreeing to&nbsp;stop <em>funding</em> terrorists. Specifically, Senator <a href="https://www.paul.senate.gov/news/press/dr-rand-paul-introduces-the-stop-arming-terrorists-act" target="_blank" title="Rand Paul">Rand Paul</a> and Congresswoman <a href="https://www.youtube.com/watch?v=vRtznPEc4RA&amp;app=desktop" target="_blank" title="Tulsi Gabbard">Tulsi Gabbard</a> introduced bills to whose simple name accurately describes what they want:&nbsp; The &ldquo;<strong>Stop Arming Terrorists</strong> Act&rdquo;.</p> <p>But neither bill looks like it has any chance of being passed right now:</p> <ul> <li>The House bill has only&nbsp;<a href="https://www.govtrack.us/congress/bills/115/hr608/details" target="_blank" title="14">14</a> co-sponsors, and was given a mere&nbsp;<a href="https://www.govtrack.us/congress/bills/115/hr608" target="_blank" title="6%">6%</a> chance of passing by Skopos Labs</li> </ul> <ul> <li>The Senate bill has&nbsp;<a href="https://www.govtrack.us/congress/bills/115/s532/details" target="_blank" title="NO">NO</a> co-sponsors, and was given a measly&nbsp;<a href="https://www.govtrack.us/congress/bills/115/s532#" target="_blank" title="3%">3%</a> chance of passing by</li> </ul> <p>How pathetic - and <a href="http://www.washingtonsblog.com/2012/08/ter%C2%B7ror%C2%B7ism-noun-when-other-people-do-what-we-do.html">hypocritical</a> - is that?</p> </div> <p>&nbsp;</p> http://www.zerohedge.com/news/2017-06-28/why-congress-won%E2%80%99t-agree-stop-arming-terrorists#comments Congress Crime Military personnel national security National Security Agency Politics Senate State terrorism Terrorism Tulsi Gabbard Violence William Eldridge Odom Women in the United States Army Wed, 28 Jun 2017 19:06:35 +0000 George Washington 598854 at http://www.zerohedge.com "Rogue" Policeman Who Attempted "Venezuela Coup" Is A "James Bond-Cum-Rambo" Action Film Star http://www.zerohedge.com/news/2017-06-28/rogue-policeman-who-attempted-venezuela-coup-james-bond-cum-rambo-action-film-star <p>When we <a href="http://www.zerohedge.com/news/2017-06-28/venezuela-president-maduro-says-armed-group-started-coup-using-stolen-helicopter-dro">reported on last night's alleged "terrorist coup" attempt </a>by a "rogue police officer" who stole a helicopter and singlehandedly attacked the Interior Ministry and the Supreme Court in Venezuela, we had one tangential observation: the attempted "coup" may have been no more a coup than the one which took place last June in Turkey:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>this is where the comparisons emerge with the "failed Turkish coup" to "remove" Erdogan last summer, which most admit was a staged attempt meant to further entrench the despotic president.&nbsp; While Venezuela opposition leaders have long been calling on Venezuela's security forces to stop obeying Maduro, following yesterday's event, <strong>there was speculation among opposition supporters on social media that the attack could have been staged to justify repression or cover up drama at Venezuela's National Assembly, where two dozen lawmakers said they were being besieged by pro-government gangs</strong>.</p> </blockquote> <p>One day later, even more questions about the legitimacy of the attempted coup have emerged, because as <a href="http://www.reuters.com/article/us-venezuela-politics-actor-idUSKBN19J2EZ?il=0">Reuters reports </a>the "rogue police officer" behind the so-called helicopter attack on Venezuelan government buildings <strong>is an action film star who paints himself as a James Bond-cum-Rambo figure on social media.</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/25/s2.reutersmedia.net_.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/25/s2.reutersmedia.net__0.jpg" width="500" height="331" /></a></p> <p><em>Oscar Perez</em></p> <p>As a reminder, President Maduro said Oscar Perez, a strapping pilot, diver and parachutist, was responsible for firing shots and lobbing grenades on the Interior Ministry and the Supreme Court after hijacking the helicopter.&nbsp; In a social media video, Perez said he was fighting a tyrannical, vile government.</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en"><a href="https://twitter.com/hashtag/Venezuela?src=hash">#Venezuela</a> | Oscar Perez declares war after attacking supreme court. says theres union bet citizens police &amp; soldiers to topple Maduro <a href="https://twitter.com/hashtag/OOTT?src=hash">#OOTT</a> <a href="https://t.co/Ba2BOn3XGt">pic.twitter.com/Ba2BOn3XGt</a></p> <p>— Lee Saks (@Lee_Saks) <a href="https://twitter.com/Lee_Saks/status/879896471709122560">June 28, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>It turns out he may have been also going for the IMDB movie rating: Perez, 36, directed and starred in a 2015 Venezuelan action movie called <strong>"Suspended Death" about the rescue of a kidnapped businessman, which includes scenes of him firing a rifle from a helicopter and emerging from water in scuba gear</strong>. And, as Reuters adds, he has an unusually public profile for the usually tight-lipped and secretive investigative police.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Perez has given interviews about his film and maintained a colorful Instagram feed with images of him riding horseback in combat gear, scuba-diving with rifles and pistols, and jumping out of a helicopter with a dog. </p> <p>&nbsp;</p> <p>"I'm a man who goes out into the streets without knowing whether I'll return home," Perez told a local television network in an interview about the film in 2015. </p> <p>&nbsp;</p> <p>The movie glorifies Venezuela's investigative police as they stage a complex and action-packed rescue using improbably futuristic technology. Asked what inspired him to make the movie, he said a conversation with a young delinquent led him to believe that movies could help change minds. </p> <p>&nbsp;</p> <p>"(I asked myself) what can we do to create a positive idea, to be a weapon against delinquency? That's how 'Suspended Death' came to be," said Perez in another TV interview.</p> </blockquote> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/25/2%20s2.reutersmedia.net_.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/25/2%20s2.reutersmedia.net__0.jpg" width="500" height="369" /></a></p> <p>Though he supposedly claimed to be representing a coalition of disaffected security and civilian officials, there was no immediate evidence that he had further backing. In a 2016 video on Perez's Instagram feed, he stands with his back to a mannequin target and successfully shoots it with the help of a small makeup mirror for aim.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>He also appeared in several public service videos including one in which a police officer takes a bribe from a driver he has pulled over, only for the driver to later kill the officer's son. Perez at the end of video looks into the camera and says "Corruption affects all of us. Denounce it."</p> </blockquote> <p>On Tuesday evening, Perez unfurled a banner from the helicopter with the word, "Freedom!" It was not immediately clear who was paying for this particular movie.</p> <p>Needless to say, Perez' acting experience and his theatrical photos spurred opposition criticism that Tuesday's incident, which did not include any reports of injuries or deaths, was staged by Maduro as an excuse to clamp down on adversaries. </p> <p>In retrospect, perhaps Turkey's Erdogan should conulst on how to make fake staged coups at least appear realisitic. </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="707" height="468" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/s2.reutersmedia.net_.jpg?1498675981" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-28/rogue-policeman-who-attempted-venezuela-coup-james-bond-cum-rambo-action-film-star#comments 2014–17 Venezuelan protests Americas Corruption Human rights in Venezuela improbably futuristic technology Interior Ministry Politics Reuters Saks South America Supreme Court Turkey Twitter Twitter Venezuela Venezuela's National Assembly Venezuelan government World Wed, 28 Jun 2017 18:54:00 +0000 Tyler Durden 598852 at http://www.zerohedge.com "Secular Stagnation" Is Nonsense... Here's The Real Reason Behind The US Downturn http://www.zerohedge.com/news/2017-06-28/secular-stagnation-nonsense-heres-real-reason-behind-us-downturn <p><a href="http://www.mauldineconomics.com/editorial/secular-stagnation-is-nonsense-heres-the-real-reason-behind-the-us-downturn"><em>Authored by Charles Gave via MauldinEconomics.com,</em></a></p> <h2><strong>So We Are In Secular Stagnation...</strong></h2> <p>...really?&nbsp; I would advise readers to consider the chart below.</p> <p>On first blush, its lower pane supports the stagnationist camp. <strong>After all, both the US and France have seen a slump in their &ldquo;structural&rdquo; GDP growth rate, as shown by the seven year moving average.</strong> Since 1977 this measure has fallen by a third in the US, and by two thirds in France. Yet, look at the chart&rsquo;s top pane and it is<strong> clear that this growth slump has hardly been generalized</strong>. Since the late 1970s, Sweden, the UK and Switzerland have seen their growth rates rise structurally, and the same pattern can be found with Canada, Germany and Australia.</p> <p><img src="http://ggc-mauldin-images.s3.amazonaws.com/uploads/editorial/170627OPSecularimage1.jpg" style="width: 600px; height: 439px;" /></p> <h3><u><strong>Cause and effect</strong></u></h3> <p><strong>So why have certain economies tumbled into relative decline, while others have not?</strong> A useful approach may be to compare France and the UK, which are similar in size, population and demographic profile. Both countries are European Union members with big banking sectors that in recent decades have had to manage profound de-industrialization.</p> <p>Consider the chart below which shows a ratio of real GDP in France and the UK. No adjustment is made for currency movements as this will introduce unnecessary noise into the analysis. <strong>The obvious point&nbsp; is that between 1955 and 1981, France&rsquo;s economy massively outperformed the UK&rsquo;s. Since 1981, the reverse has been true.</strong></p> <p><img src="http://ggc-mauldin-images.s3.amazonaws.com/uploads/pdf/170627OPSecularimage2.jpg" style="width: 600px; height: 441px;" /></p> <p><strong>The trend change corresponded to a political shift in both countries as to the proper role of the state.</strong> Under Margaret Thatcher, the UK forged a new path by lessening the role of civil servants in managing economic activity. In France, François Mitterrand expressly aimed to expand the scope of government.</p> <p><img src="http://ggc-mauldin-images.s3.amazonaws.com/uploads/pdf/170627OPSecularimage3.jpg" style="width: 600px; height: 439px;" /></p> <p>To be sure, the UK Labour Party got back into power in the late 1990s and spent the next decade running socialist policies that caused government spending as a share of output to rocket higher. Fortunately, sanity was restored after 2010 when a Conservative-led government dialed back UK public spending. In France, the picture is different as there have not been politically-inspired changes in the trend of government spending&mdash;the ratio has simply ground higher, irrespective of who was in power.</p> <p><strong>The next task is to explore potential cause-and-effect linkages between public spending and the divergence in the structural growth rates of France and the UK. </strong>As such, consider the chart below which reconciles growth and government spending in the two economies.</p> <p><img src="http://ggc-mauldin-images.s3.amazonaws.com/uploads/editorial/170627OPSecularimage4.jpg" style="width: 600px; height: 439px;" /></p> <p>The chart above shows that in 1980 France started to spend more on government than the UK. By 1985, France&rsquo;s structural growth rate slid below the UK rate and has not recovered.<u><em><strong> The logic behind this chart has been borne out in many economies: beyond a certain threshold (that varies by country) more state spending causes the structural growth rate&nbsp; to fall.</strong></em></u> This relationship follows, as in a government-dominated economy &ldquo;destruction&rdquo; of inefficient activity is all but impossible, which in turn limits the scope for fresh &ldquo;creation&rdquo;. This insight was explained by Joseph Schumpeter in his 1942 book Capitalism, Socialism and Democracy.</p> <h3><u><strong>What about the US?</strong></u></h3> <p><strong>In the US, a similarly straight forward picture emerges,</strong> with the big increase in government spending that took place after 2009 being the main cause of the subsequent decline in the US&rsquo;s structural growth rate.</p> <p><img src="http://ggc-mauldin-images.s3.amazonaws.com/uploads/editorial/170627OPSecularimage5.jpg" style="width: 600px; height: 439px;" /></p> <p><strong>By way of contrast, consider the reverse case of Canada, which in the mid-1990s slashed government spending to good effect.</strong> In two years Canadian government spending was cut from 31% of GDP to about 25%. The ensuing 18 months saw predictable howls of protest from economists that a depression must follow. In fact, not only was a recession avoided but Canada&rsquo;s structural growth rate quickly picked up and in the next two decades a record uninterrupted economic expansion was achieved.</p> <p><img src="http://ggc-mauldin-images.s3.amazonaws.com/uploads/editorial/170627OPSecularimage6.jpg" style="width: 600px; height: 440px;" /></p> <p>As an aside,<strong> I would ask readers to cite one case in the post-1971 fiat money era when a big rise in government spending did not lead to a structural slowdown. </strong>Alternatively, if they could cite an episode when cuts to public spending resulted in the growth rate falling. I am always willing to learn and change my mind!</p> <p>To conclude,<strong> &ldquo;secular stagnation&rdquo; is an idea of ivory towered economists.&nbsp;</strong> Schumpeter showed how bloated government and unnecessary regulation crimps activity. The perhaps unfashionable answer remains to privatize state enterprises, deregulate markets and break up too-big-too-fail banks. <strong>In simple terms, some government is good; too much government is bad.</strong></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="605" height="386" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170628_sec.jpg?1498664188" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-28/secular-stagnation-nonsense-heres-real-reason-behind-us-downturn#comments Austerity Australia Business Business cycle Canadian government Economic growth Economic stagnation Economy European Union European Union Fiscal policy France Germany Macroeconomics Market trends Politics Recession Recession Secular stagnation theory Switzerland UK Labour Party Unemployment Wed, 28 Jun 2017 18:30:01 +0000 Tyler Durden 598834 at http://www.zerohedge.com Goldman Looks For Policy Error At The Fed, Finds Something Unexpected http://www.zerohedge.com/news/2017-06-28/goldman-looks-policy-error-fed-finds-something-unexpected <p>When it comes to Goldman's reaction (function) to the Fed's own reaction function, so to speak, it has been a love-hate, but mostly confused, relationship over the past three months. </p> <p><a href="http://www.zerohedge.com/news/2017-03-16/not-reaction-fed-wanted-goldman-warns-yellen-has-lost-control-market">First, back in March</a>, Goldman's Jan Hatzius was stunned to note that the market reaction following the Fed's first rate hike was not the reaction the Fed wanted, when "the Fed's 0.25% rate hike had the same effect as a 0.25% race cut" and prompted it to ask if Yellen has lost control of the market. </p> <p>Two months later, in May <a href="http://www.zerohedge.com/news/2017-05-10/goldman-asks-if-yellen-has-lost-control-market-warns-fed-policy-shock">Goldman once again wondered of the Fed has lost control of a market, </a>where financial conditions have become progressively "easier" the higher the Fed Funds rate rose. It then added that "we find that the sensitivity of financial conditions to <strong>monetary policy shocks </strong>has been quite high recently, at least when we identify these shocks using bond market moves around FOMC meetings. This suggests that the easing of financial conditions is due to other factors."</p> <p>Well, yesterday Yellen - and Fischer and Williams - explained what one of those factors is: stocks are overvalued and remain overvalued, <strong>and scariest of all for the Fed, refuse to drop no matter what the Fed does or says (case in point, today's ramp). </strong></p> <p>* * * </p> <p>Which brings us to today, when Goldman again looks at this topic which has become quite prominent among the already skeptical investing crowd (and perhaps even at the FOMC, judging by yesterday's comments): namely, whether the Fed has made a policy error by hiking rates into a slowing economy. </p> <p>In the note titled "<strong>Is the Fed Making a Policy Error?</strong>"" this is how Goldman explains the ongoing debate: </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The argument that the Fed is making a hawkish policy error has been a popular market theme since the June FOMC meeting. Many investors point in particular to the downward drift in the 10-year Treasury rate as evidence that the Fed is tightening monetary policy more than the economy can handle. </p> </blockquote> <p>Here Goldman responds with two counter arguments: <strong>"the thesis that the Fed has made a policy error would seem to imply two<br /> claims: that the Fed’s hawkish stance has led to excessive tightening in<br /> financial conditions, and that this in turn has caused the economy to<br /> slow more than intended. Neither of these has happened.</strong>"</p> <p>Looking at economic activity, Goldman claims that "activity growth and job creation remain solidly above trend, as shown in Exhibit 2, with our current activity indicator still well above our 1.75% estimate of potential GDP growth and monthly payroll growth solidly above our 85k estimate of the “breakeven” rate."</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/25/pol%20error%202.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/25/pol%20error%202_0.jpg" width="500" height="233" /></a></p> <p>To be sure, even Goldman admits that the bond market may be discounting the future, where stocks are so broken they no longer have any clue (this is the thesis laid out by Citi's Matt King). As Goldman adds, "of course, financial conditions play two roles: they influence the economy’s growth trajectory and also offer signals about it. Some might worry that the 10-year rate is pointing to a slowdown that has yet to emerge in the data—the second role. But with few signs of recession risk, it is not surprising that Fed officials have instead seen the first role as more relevant, <strong>with NY Fed President Dudley concluding on Monday that “when financial conditions ease—as has been the case recently—this can provide additional impetus for the decision to continue to remove monetary policy accommodation.</strong>”</p> <p>Which brings us to the next, far greater, point, one which we have made repeatedly over the past few months: if accusing the Fed of having made a policy error, the error is not that the Fed has tightened, it is that it hasn't tightened as much. To wit: </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Since the Fed moved to a quarterly pace of tightening last December, our financial conditions index (FCI) has eased meaningfully, as shown in Exhibit 1. <strong>While the June FOMC meeting delivered a hawkish surprise, the market impact of the meeting was modest and the FCI remains little changed since. </strong></p> </blockquote> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/25/pol%20error%201.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/25/pol%20error%201_0.jpg" width="500" height="330" /></a></p> <p>Goldman's conclusion<strong>: "<span style="text-decoration: underline;">So far, the Fed’s efforts to tighten financial conditions have achieved too little, not too much</span></strong><span style="text-decoration: underline;">.</span>"</p> <p>And there it is: the Fed's error, if one wants to call it that, is that contrary to the market's expectations of a much shallower rate hike slope, Yellen is hiking much less than she should. And, judging by the Fed's comments yesterday, the Fed is now aware of its error. The only question is: when will the market do the same. </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="519" height="343" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/pol%20error%201.jpg?1498673509" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-28/goldman-looks-policy-error-fed-finds-something-unexpected#comments Banking Bond Business fed Federal funds rate Federal Open Market Committee Federal Reserve Bank of New York Federal Reserve System Finance Financial services Interest rates James B. Bullard Jan Hatzius Monetary Policy Monetary policy Money NY Fed Recession US Federal Reserve Wed, 28 Jun 2017 18:13:01 +0000 Tyler Durden 598846 at http://www.zerohedge.com Loonie Spikes To 5-Month Highs After Poloz, Patterson Double-Whammy http://www.zerohedge.com/news/2017-06-28/loonie-spikes-5-month-highs-after-poloz-patterson-double-whammy <p>Following Bank of Canada's <strong>Poloz restates his bias for higher rates</strong> earlier in Sintra, now BoC deputy <strong>Patterson confirmed<em> "the oil shock is largely behind us"</em> </strong>and hinted that low rates were no longer needed. This is the <strong>biggest spike in the Loonie since March 2016,</strong> pushing it back to its strongest against the dollar since early Feb 2017.</p> <p>In a speech on how policy makers gather intelligence to augment its analysis, <strong>Bank of Canada Deputy Governor Lynn Patterson </strong>outlined how the central bank’s “contacts” in the oil sector helped shape its decision to cut interest rates twice in 2015.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>“That knowledge fed into our judgment and, ultimately, our decision to lower our policy rate in January and July 2015,” Patterson said in Calgary, according to prepared remarks.<strong>&nbsp;</strong></p> <p>&nbsp;</p> <p><strong> “Two years later, it is our view that these cuts have helped facilitate the economy’s adjustment to the oil price shock and that the economic drag from lower prices is largely behind us.”</strong></p> </blockquote> <p><strong>The comments echo similar language by Governor Stephen Poloz, </strong>and are consistent with the central bank’s recent adoption of a tightening bias that has made the Canadian dollar the best performing Group of 10 currency this month.</p> <p>Poloz restating his bias towards higher rates sent CAD surging most since March 15th to its strongest since Feb 2017...<strong><em>&nbsp;</em></strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong><em>"The Poloz comments buttress the change in tone that we’ve seen from the Bank over the past month,”</em></strong> said&nbsp;Bipan Rai, Toronto-based senior foreign-exchange and macro strategist at Canadian Imperial Bank of Commerce.<em><strong> “There’s still some speculative shorts out there are being squeezed as a result.”</strong></em></p> </blockquote> <p>The result...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170628_cad.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170628_cad_0.jpg" width="600" height="288" /></a></p> <p>&nbsp;</p> <p>Pushing CAD to its highest since Feb against the dollar...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170628_cad1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170628_cad1_0.jpg" width="600" height="315" /></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="2489" height="1193" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170628_cad.jpg?1498673686" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-28/loonie-spikes-5-month-highs-after-poloz-patterson-double-whammy#comments Bank of Canada Bank of Canada Business CAD Canadian Dollar Canadian dollar Central bank Currency Dollar Economy Financial services Governors of the Bank of Canada Loonie Stephen Poloz US Federal Reserve Wed, 28 Jun 2017 18:10:13 +0000 Tyler Durden 598847 at http://www.zerohedge.com Warren Buffett: "House Health-Care Bill Would've Cut My Taxes By 17%" http://www.zerohedge.com/news/2017-06-28/warren-buffett-house-health-care-bill-wouldve-cut-my-taxes-17 <p>America&rsquo;s favorite homespun billionaire Warren Buffett stepped up his criticisms of President Donald Trump&#39;s agenda in part two of an interview with PBS Newshour&#39;s Judy Woodruff, suggesting that Republicans should change the name of the American Health Care Act to the &ldquo;Relief for the Rich&rdquo; act after walking a reporter through how the House version of the bill would&rsquo;ve impacted his tax rate. Buffett, who took the unusual (and hilarious) step of bringing a copy of his most recent tax return to the interview, <strong>claimed that if the version of the bill that passed the House with 217 votes had been effect this year, he would&rsquo;ve saved $679,999, or over 17% of his tax bill.</strong></p> <p><iframe allowfullscreen="" frameborder="0" height="376" marginheight="0" marginwidth="0" scrolling="no" seamless="" src="http://player.pbs.org/viralplayer/3002306670/" width="512"></iframe></p> <p>A quick point of clarification: Buffett&rsquo;s annual taxable income is roughly $19.5 million, leaving him to pay an effective tax rate of about 16% - equivalent to what a couple making $138,000 a year would pay. More than 99% of his wealth is tied up in Berkshire Hathaway stock &ndash; and &ldquo;every share of that stock has been pledged to charity.&rdquo;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;<strong>There&rsquo;s nothing ambiguous about that. I will be given a 17 percent tax cut. </strong>And the people it&rsquo;s directed at are couples with $250,000 or more of income. <strong>You could entitle this, you know, Relief for the Rich Act or something, because it &mdash; I have got friends where it would have saved them as much as &mdash; it gets into the $10-million-and-up figure.&rdquo;</strong></p> </blockquote> <p>Members of the House and Senate also stand to benefit from the bill&rsquo;s more favorable tax rates, too, Buffett said, adding that the bill would extend cuts for married couples making more than $250,000 a year and single people making more than $200,000. While Buffett estimated that Congressmen make $174,000 a year, most have substantial other income that would lift them above the tax-cut threshold, he said.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>But I might point out &mdash; it might be an interesting question. I think members of the Senate and the House get $174,000 a year. But most of them have &mdash; if you look at the disclosures, they have substantial other income. <strong>If they get to higher than $250,000, as a married couple, or $200,000 as a single person, they have given themselves a big, big tax cut, if they &mdash; if they voted for this.</strong></p> </blockquote> <p>Moving on to the question of the Republican&#39;s corporate tax reform ambitions, Buffett said that, while it&rsquo;s likely Berkshire Hathaway would pay less in taxes if Republicans successfully cut the base corporate rate by 20 percentage points to 15%, it&#39;d be impossible to say for sure until the final draft of the bill is made available.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;Well, it would mean, for Berkshire, in all probability, that we would pay less in U.S. federal income taxes. <strong>But until you see the final thing, you can&rsquo;t tell. Berkshire Hathaway is the second largest corporation on the Fortune 500 this year. I don&rsquo;t know any case where our competitiveness is being hurt by the federal income tax rate on corporations.&quot;</strong></p> </blockquote> <p>And, rounding out Buffett&#39;s pro-taxes agenda, the interviewer allowed her subject a few minutes to take a swipe at Republican efforts to repeal the estate tax - or the &quot;death tax&quot; as it&#39;s known in some circles.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;There are going to be two-and-a-half million people die in the United States this year. How many estate tax returns are there going to be? Probably about 5,000. And the interesting thing is, if I talked to somebody about welfare mothers or something like that, they say how debilitating it is to have these food stamps, and it takes away their incentive to do anything</p> <p><strong>If a kid comes out of the right womb in this country, they have got food stamps for their rest of their life. They just call them stocks and bonds. And their welfare officer is their trust officer.&quot;</strong></p> </blockquote> <p>The rest of the interview &ndash; which ran for more than 10 minutes &ndash; was devoted to softball questions like <strong>&ldquo;What makes you happy?&rdquo;</strong> and <strong>&quot;how do you stay healthy?&quot;</strong></p> <p>Buffett, careful to maintain his image as Wall Street&rsquo;s most benevolent and philanthropic denizen, told the interviewer that, despite his vast fortune, he could easily be happy on $100,000 a year.</p> <p>And liberals complain that Fox News is too easy on Trump&hellip;</p> <p>A full transcript of the interview is available below:</p> <p>* * *</p> <p><em>JUDY WOODRUFF: Now to the second part of my conversation with billionaire Warren Buffett.</em></p> <p><em>I spoke with him last week in Omaha last week at the Nebraska Furniture Mart, the largest furniture store in America. It is just one small piece of a huge portfolio of investments owned by his company, Berkshire Hathaway, but one that Buffett takes particular pride in as part of his legacy.</em></p> <p><em>Both the Senate and House Republican health care reform bills would roll back taxes that are part of Obamacare. Buffett has taken issue with that.<br />And that&rsquo;s where my conversation picks up.</em></p> <p><em>One of the things the Republicans are looking at, as you know very well, is doing away with the so-called Obamacare surcharge on people earning a higher income.</em></p> <p><em>WARREN BUFFETT, Chairman and CEO, Berkshire Hathaway: Yes.</em></p> <p>JUDY WOODRUFF: So, Republicans are looking at taking that away, or doing away with that, which would mean a tax cut, you have said &hellip;</p> <p>WARREN BUFFETT: Yes.</p> <p>JUDY WOODRUFF: &hellip; for people like you.</p> <p>WARREN BUFFETT: Yes.</p> <p>Well, I brought my tax return along for the last year. I filed this on April 15. And if the Republican &mdash; well, if the bill that passed the House with 217 votes had been in effect this year, I would have saved &mdash; I can give you the exact figure. I would have saved $679,999, or over 17 percent of my tax bill.</p> <p>There&rsquo;s nothing ambiguous about that. I will be given a 17 percent tax cut. And the people it&rsquo;s directed at are couples with $250,000 or more of income. You could entitle this, you know, Relief for the Rich Act or something, because it &mdash; I have got friends where it would have saved them as much as &mdash; it gets into the $10-million-and-up figure.</p> <p>But I might point out &mdash; it might be an interesting question. I think members of the Senate and the House get $174,000 a year. But most of them have &mdash; if you look at the disclosures, they have substantial other income. If they get to higher than $250,000, as a married couple, or $200,000 as a single person, they have given themselves a big, big tax cut, if they &mdash; if they voted for this.</p> <p>JUDY WOODRUFF: Well, speaking of taxes, let&rsquo;s just use that as an entry point to talk about it.</p> <p>You shared some of your tax return with us for 2016. Thank you very much.</p> <p>WARREN BUFFETT: Yes.</p> <p>JUDY WOODRUFF: But before I ask you about that, how wealthy are you? I mean, I&rsquo;m reading that you&rsquo;re $77 billion?</p> <p>WARREN BUFFETT: Ninety-nine percent of my net worth is in Berkshire Hathaway stock. Every share of that stock has been pledged to philanthropy.</p> <p>So, I&rsquo;m a trustee for that stock. So, it will go to society. And then the rest will as well. But if you add up what&rsquo;s in my name, if we go down to my safe deposit box, we will find some stock certificates that are worth that much.</p> <p>But as I &mdash; you know, I have written, they have no utility to me. They can&rsquo;t do anything to make me happier. I&rsquo;m already happy. I would be happy with, you know &mdash; certainly with $100,000 a year, I could be very happy. And they can&rsquo;t buy anything for me that I want. If they did, I would buy it.</p> <p>And they do have utility to others, so I have got this system to essentially try and translate that into vaccines and education and all of that sort of thing.</p> <p>JUDY WOODRUFF: The reason I bring that up, Warren Buffett, is that that&rsquo;s your wealth, your worth. And yet, on your tax return, you earned $19 million-something.</p> <p>WARREN BUFFETT: Right.</p> <p>JUDY WOODRUFF: Nineteen-and-a-half million last year.</p> <p>Your effective tax rate was 16.3 percent, which &mdash; we looked it up. This is what an average couple, a married couple, no children, taking the standard deduction would pay on an income of $136,000. In other words, a couple who earned &mdash; you earn 143 times more than they do, but your tax rate is the same as theirs.</p> <p>WARREN BUFFETT: Yes, I have pointed that out in past, in the past.</p> <p>And it&rsquo;s even worse than you say, Judy, because you&rsquo;re looking at what that couple would pay in federal income tax. But they are also paying payroll taxes, in overwhelming cases. And my cleaning lady has a 15 percent tax, you know, just from Social &mdash; just from the Social Security that she and her employer pay, but it&rsquo;s kind of incredible.</p> <p>And now they want to cut it. No, they want to cut it for me. I mean, you know, they &mdash; I don&rsquo;t look like somebody that deserves a cut.</p> <p>JUDY WOODRUFF: Well, they &mdash; the Republicans are talking about lowering taxes &hellip;</p> <p>WARREN BUFFETT: Absolutely.</p> <p>JUDY WOODRUFF: &hellip; on the &hellip;</p> <p>WARREN BUFFETT: They want to cut my tax 17 percent. They saw those figures and were shocked that I was paying that much, apparently.</p> <p>(LAUGHTER)</p> <p>JUDY WOODRUFF: But, among other things, they&rsquo;re talking about doing away with some of the &mdash; some of the deductions, charitable deductions, maybe, mortgage deductions, maybe, state and local tax &mdash; taxes paid as deductions.</p> <p>Do you have a thought about all those?</p> <p>WARREN BUFFETT: Well, you can&rsquo;t really talk about specifics without looking at the whole thing.</p> <p>But if they&rsquo;re talking about making it revenue-neutral, you know, I think if they&rsquo;re going to make it revenue-neutral, it ought to be &mdash; it ought to be something other than revenue-neutral to the guys like me. Our rates should go up, allowing others to go down somewhat.</p> <p>I think there ought to be minimum taxes for people that make $10 million a year, and a different one at a million a year, but certainly at $10 million a year.</p> <p>JUDY WOODRUFF: They also, as you know, want to tackle business corporate tax rates. They&rsquo;re talking about the current corporate rate, lowering it from 35 percent to 15 percent? The president has talked about &mdash; I guess Speaker Paul Ryan this week said 20 percent.</p> <p>What would that mean for you if &hellip;</p> <p>WARREN BUFFETT: Well, it would mean, for Berkshire, in all probability, that we would pay less in U.S. federal income taxes.</p> <p>But until you see the final thing, you can&rsquo;t tell. Berkshire Hathaway is the second largest corporation on the Fortune 500 this year. I don&rsquo;t know any case where our competitiveness is being hurt by the federal income tax rate on corporations.</p> <p>JUDY WOODRUFF: Estate taxes, a thought about that?</p> <p>WARREN BUFFETT: Oh, estate taxes, I mean, I &mdash; you hear people call it the death tax.</p> <p>There are going to be two-and-a-half million people die in the United States this year. How many estate tax returns are there going to be? Probably about 5,000. And the interesting thing is, if I talked to somebody about welfare mothers or something like that, they say how debilitating it is to have these food stamps, and it takes away their incentive to do anything.</p> <p>If a kid comes out of the right womb in this country, they have got food stamps for their rest of their life. They just call them stocks and bonds. And their welfare officer is their trust officer.</p> <p>I mean, I think I &mdash; I think having a significant estate tax that starts at a fair-sized level is &mdash; if you&rsquo;re going to have to raise $3.5 trillion, I think that&rsquo;s a good source of revenue, and that I &mdash; it shouldn&rsquo;t apply to, you know, 99 percent of the people.</p> <p>JUDY WOODRUFF: You have been very &mdash; I mean, very open about your own taxes, and people have taken a look at that, and they have also looked at Berkshire Hathaway. It has been pointed out that Berkshire Hathaway does take advantage of the legal ability to defer taxes, and &hellip;</p> <p>WARREN BUFFETT: Sure. Well, that&rsquo;s because &hellip;</p> <p>JUDY WOODRUFF: And I saw a number, something like $75 billion in deferred taxes?</p> <p>WARREN BUFFETT: Well, that&rsquo;s we haven&rsquo;t cashed things that we &mdash; just like you, if you have got a stock that&rsquo;s gone up a whole lot, until you sell it.</p> <p>But that&rsquo;s just the law. And we&rsquo;re going to &mdash; we don&rsquo;t have any of the Cayman Islands or anything like that stuff. But we follow the law, and we got a million shareholders. And I think they probably expect us to do that. That doesn&rsquo;t mean I don&rsquo;t think the law shouldn&rsquo;t be changed in some way.</p> <p>But I follow the law in terms of my personal return. I do not send an extra $5 million to the Treasury.</p> <p>JUDY WOODRUFF: Your philanthropy, we have talked about it a little bit. It&rsquo;s legendary. You and Bill Gates, Melinda Gates have come together and, I guess, broken all records imaginable for giving.</p> <p>At the same time, it&rsquo;s being pointed out that you&rsquo;re also making &mdash; you first made that pledge, what, 10, 11 years ago.</p> <p>WARREN BUFFETT: 2006, yes.</p> <p>JUDY WOODRUFF: 2006.</p> <p>You&rsquo;re now making so much more even than you did then. People are saying, well, wait a minute, you know, is he going to be giving more away?</p> <p>How do you think about that?</p> <p>WARREN BUFFETT: Well, I have got it set up so that, if I make more, I do give more, because I&rsquo;m giving on a schedule, and that schedule ends 10 years after I die.</p> <p>So, it&rsquo;s all &mdash; so I&rsquo;m not setting up &mdash; and, actually, they can&rsquo;t use it for endowments or anything. It has to be spent within 10 years, really, after my estate&rsquo;s closed, but call it after I die.</p> <p>JUDY WOODRUFF: How much influence do you think you had on other, others with wealth, with means to give, to be as generous as you have been?</p> <p>WARREN BUFFETT: Well, a lot of people come back to me on that.</p> <p>And basically, I said, you know, if you&rsquo;re extremely rich, and you have got children, my theory was, you give them enough so they can do anything, but not enough so they can do nothing. And I have had more people come back to it, so, apparently I was smarter in 1980, whatever it was, than I am now. But that seemed to have some influence.</p> <p>JUDY WOODRUFF: Are you comfortable today with what you&rsquo;re giving? I mean, does it feel &hellip;</p> <p>WARREN BUFFETT: It&rsquo;s exactly what I wanted to do.</p> <p>JUDY WOODRUFF: Does it feel like the right thing to be doing right now?</p> <p>WARREN BUFFETT: It&rsquo;s the right thing. It&rsquo;s the right thing, because it&rsquo;s going &mdash; it&rsquo;s going to people who believe, as the Gates, for example, that every life is of equal value.</p> <p>I mean, the truth is, I have got a lot of wealth, little pieces of paper, says Berkshire Hathaway on it. They are claim checks on all kinds of goods and services in the world. They can buy anything. I can buy 400-foot yachts and have 20 homes and all that. I wouldn&rsquo;t be happier. But they can buy anything.</p> <p>And once they move into the hands of people who are working like hell on getting something accomplished in areas I want them to &mdash; you know, I love the idea of getting them used, and that&rsquo;s what they&rsquo;re doing.</p> <p>JUDY WOODRUFF: You said it wouldn&rsquo;t make you happy to have a hundred, 200 homes and yachts and so forth. What does make Warren Buffett happy?</p> <p>WARREN BUFFETT: I just have a lot of fun doing my job.</p> <p>I mean, I can do anything I want, basically, as long as it doesn&rsquo;t involve athletic ability, or something like that.</p> <p>(LAUGHTER)</p> <p>WARREN BUFFETT: But if it&rsquo;s something I can buy, I can buy anything, basically.</p> <p>I have been on 400-foot yachts, and I have &mdash; I have lived the life a little bit with people that have 10 homes and everything. And I live in the same house I bought in 1958. And if I could spend $100 million on a house that would make me a lot happier, I would do it.</p> <p>But, for me, that&rsquo;s the happiest House In the world. And it&rsquo;s because it&rsquo;s got memories, and people come back, and all that sort of thing. So, I am doing what I love to do with people I love. And it doesn&rsquo;t get any better than that, Judy.</p> <p>And &mdash; but I should be. I mean, why in the hell &mdash; why should I be working at 86 at something that I don&rsquo;t like or with people I don&rsquo;t like?</p> <p>JUDY WOODRUFF: And I see you&rsquo;re drinking a Cherry Coke.</p> <p>WARREN BUFFETT: Right.</p> <p>JUDY WOODRUFF: How do you stay healthy?</p> <p>WARREN BUFFETT: Well, I think I stay healthy partly by being happy, actually.</p> <p>I think that &mdash; I think it really helps if your stomach isn&rsquo;t grinding all the time, and you&rsquo;re doing things you don&rsquo;t want to do, or you&rsquo;re working with people that &mdash; you know? So I have gone very light on the diet advice.</p> <p>I eat like a normal 6-year-old, but if you look at the mortality statistics, I mean, 6-year-olds don&rsquo;t die very often.</p> <p>(LAUGHTER)</p> <p>WARREN BUFFETT: I mean, the diet&rsquo;s doing something for them.</p> <p>JUDY WOODRUFF: How much sleep do you get?</p> <p>WARREN BUFFETT: I get quite a bit of sleep. I like to sleep.</p> <p>So I will usually sleep eight hours a night, and that &mdash; no, I have no desire to get to work at 4:00 in the morning.</p> <p>JUDY WOODRUFF: So many people look at you and they think, oh, my goodness, this man, he&rsquo;s accomplished so much. He&rsquo;s been so successful. He&rsquo;s 86 years old, and he&rsquo;s still going strong.</p> <p>WARREN BUFFETT: I love it.</p> <p>JUDY WOODRUFF: So, what do they &mdash; so, what&rsquo;s the secret?</p> <p>WARREN BUFFETT: The secret is to find what you love to do.</p> <p>I mean, I tell the students look for the job that you would take if you didn&rsquo;t need a job. I mean, it&rsquo;s that simple. And I was lucky enough to find it very early in life. And then the second thing is to have people around you that make feel good every day, and make you a better person than you otherwise would be.</p> <p>I have more fun doing this than anything else I can think of in the world, and I have seen a lot of other things you could do in the world.</p> <p>JUDY WOODRUFF: Warren Buffett, thank you very much.</p> <p>WARREN BUFFETT: Thank you, Judy.</p> <p>JUDY WOODRUFF: And he does come across as a happy man.</p> <p><em>* * *</em></p> <p>Read our coverage of Part I here:</p> <p>...or watch below:</p> <p><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/r75Mi2B0YXE" width="560"></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="544" height="300" alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/buffetttwo.JPG?1498667784" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-28/warren-buffett-house-health-care-bill-wouldve-cut-my-taxes-17#comments Berkshire Hathaway Bill Gates Donald Trump Economy of the United States Finance Fox News Money Obamacare Senate Tax Warren Buffett Wed, 28 Jun 2017 17:51:01 +0000 Tyler Durden 598837 at http://www.zerohedge.com US Equities... Last. Man. Standing. http://www.zerohedge.com/news/2017-06-28/us-equities-last-man-standing <p><em><strong>"Transitory..."</strong></em></p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170628_last.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170628_last_0.jpg" width="600" height="378" /></a></p> <p>If you look really hard at the chart you may notice the one "asset" in the world that 'agrees' with US equities... and given the hawkish hammering from Carney, Poloz, Drgahi, Yellen, Williams, Harker, and Fischer, what do you think happens next?</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="1160" height="731" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170628_last.jpg?1498669749" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-28/us-equities-last-man-standing#comments Carney Harker Human Interest Wed, 28 Jun 2017 17:29:57 +0000 Tyler Durden 598842 at http://www.zerohedge.com