en Deutsche Bank Pays $60 Million To Settle Gold-Manipulation Lawsuit <p>2016 is shaping up as the year when countless conspiracy theories will be confirmed to be non-conspiracy fact: from central bank rigging of capital markets, to political rigging of elections, to media rigging of public sentiment, and now, commercial bank rigging of both silver and gold. In short, <em>"tinfoil hat-wearing nutjobs living in their parents basement" </em>were right all along. </p> <p>In early October, we reported that "<a href="">In A Major Victory For Gold And Silver Traders, Manipulation Lawsuit Against Gold-Fixing Banks Ordered To Proceed</a>," however one bank was exempt: Deutsche Bank. The reason why was known since April, <a href="">when we first reported that Deutsche Bank had agreed to settle the class action lawsuit </a>filed in July 2014 accusing a consortium of banks of plotting to manipulate gold and silver. Among the charges that Deutsche Bank effectively refused to contest were the following:</p> <ul> <li>employment of a manipulative device claims</li> <li>bid-rigging, and unjust enrichment.</li> <li>price fixing and unlawful restraint</li> <li>price manipulation claims</li> <li>aiding and abetting and principal-agent claims.</li> </ul> <p>An affidavit filed in October shed more light on the settlement process: </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The negotiations with Deutsche Bank over the material terms of the Settlement took place over several months starting in December 2015 and continuing until the Deutsche Bank Settlement Agreement was executed on September 6, 2016. </p> <p>&nbsp;</p> <p>Following initial phone calls with Deutsche Bank’s counsel in December 2015, Lowey and Grant &amp; Eisenhofer engaged in lengthy negotiations with Deutsche Bank’s counsel over the material terms of the settlement, including the amount of the settlement consideration, the scope of the cooperation to be provided by the Deutsche Bank Defendants, the scope of the releases, and the circumstances under which the parties would have the right to terminate the settlement. </p> <p>&nbsp;</p> <p>During the course of the negotiations, Class Counsel presented what we perceived to be the strengths and weaknesses of the claims and defenses, as well as Deutsche Bank’s litigation exposure.</p> <p>In February 2016, we reached an agreement with Deutsche Bank on the amount of the settlement, subject to the negotiation of other material terms of the deal. For example, given that this is the first settlement in the case, it was our view that the cooperation provisions of the deal were extremely important to our ability to maximize the overall recovery for the class against the Non-Settling Defendants. The negotiations as to the scope of the cooperation provisions continued for several months. </p> <p>&nbsp;</p> <p>On April 13, 2016, counsel for Deutsche Bank and Class Counsel signed a Binding Settlement Term Sheet (“Term Sheet”). The Term Sheet set forth the terms on which the parties agreed, subject to the negotiation of a full Settlement Agreement, to settle Plaintiffs’ claims against Deutsche Bank. At the time the Term Sheet was executed, Class Counsel was well-informed about the legal risks, factual uncertainties, potential damages, and other aspects of the strengths and weaknesses of the claims and defenses asserted. </p> <p>&nbsp;</p> <p>By letter dated April 13, 2016, the Parties reported to the Court via ECF that the Term Sheet had been executed, and advised the Court that the Term Sheet would be superseded by a formal settlement agreement. ECF No. 116. </p> <p>&nbsp;</p> <p><strong>The parties negotiated the Deutsche Bank Settlement Agreement over the course of the next several months</strong>. The negotiations over the terms of the Deutsche Bank Settlement Agreement included&nbsp; various material terms over which the parties had substantial disagreement, requiring significant give and take on both sides. To that end, drafts of the Deutsche Bank Settlement Agreement went back and forth between the parties, and numerous contested issues were raised, negotiated and resolved, including without limitation, continuing negotiations over the scope of Deutsche Bank’s cooperation (see ¶ 4(A)-(G)), the scope of the releases (see ¶ 12 (A)-(C)), and the circumstances under which the parties could terminate the Settlement (see ¶ 21).</p> <p>&nbsp;</p> <p>Thus, the Deutsche Bank Settlement Agreement, which was executed (along with the Supplemental Agreement) on September 6, 2016, was the culmination of arm’s-length settlement negotiations that had extended over many months. </p> <p>&nbsp;</p> <p>The Deutsche Bank Settlement was not the product of collusion. Before any financial numbers were discussed in the settlement negotiations and before any demand or counter-offer was ever made, we were well informed about the legal risks, factual uncertainties, potential damages, and other aspects of the strengths and weaknesses of the claims against Deutsche Bank. </p> <p>&nbsp;</p> <p>The Deutsche Bank Settlement involves a structure and terms that are common in class action settlements in this District. The consideration that Deutsche Bank has agreed to pay is within the range of that which may be found to be fair, reasonable, and adequate at final approval.</p> </blockquote> <p>There was just one thing missing: the settlement amount. Then, on October 17, the first part of the answer was revealed when according to court filings,<strong> <a href="">Deutsche Bank had agreed to pay $38 million </a>to settle the silver manipulation litigation. </strong></p> <p>The settlement, which was disclosed in papers filed in Manhattan federal court, concludes one of many recent lawsuits in which investors have accused banks of conspiring to rig the precious metal markets. However, until Deutsche Bank's payment of $38 million to settle silver manipulation allegations, there was never any formal closure. </p> <p>* * * </p> <p>Then, last night, two months after the silver settlement, Deutsche Bank agreed to pay another $60 million to settle the other side of the antitrust litigation: that of rigging the gold market.</p> <p>As <a href="">Reuters </a>first reported, the preliminary settlement was filed on Friday with the U.S. District Court in Manhattan, and requires a judge's approval. As part of the settelement, Deutsche Bank has denied any wrongdoing, and with the two settlements, and some $98 million out of pocket, it is clear of any future liability regarding precious metals manipulation.</p> <p>The case is one of many in the Manhattan court in which investors accused banks of conspiring to rig rates and prices in financial and commodities markets.</p> <p>As we reported previously, in an Oct. 3 decision, U.S. District Judge Valerie Caproni in Manhattan said investors could pursue much of their lawsuit against the other four banks named in the anti-trust lawsuit which include Barclays, Bank of Nova Scotia, HSBC and Societe Generale.</p> <p>In October, Vincent Briganti, a lawyer for the investors, said the silver settlement deal provides "substantial monetary compensation plus cooperation from Deutsche Bank in the continued prosecution of this important case against the non-settling defendants." He has yet to comment on the gold settlement. </p> <p>So who gets to benefit from the settlement? This is what the lawyer said on the silver settlement disclosed in early October:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>We have reason to believe that there are at least hundreds of geographically dispersed persons and entities that fall within the Settlement Class definition. The Settlement Class includes traders of COMEX Silver Futures contracts, anyone who traded in physical silver based on the Silver Fix, and traders in various silver derivatives.</strong></p> </blockquote> <p>The same will likely be applicable to gold traders following Friday's monetary settlement. </p> <p>The other beneficiary, of course, is the class of investors, people and "conspiracy theorists" who claimed all along that gold and silver were subject to rigging in various forms throughout the years. Well, you were right. However, we wouldn't hold much hope for getting any substantial monetary rewards. By the time the settlement is done, there will likely be at best a few hundred dollars left per claimant.</p> <p>The good news is that this formal closure will open the door for other, similar lawsuits - for both silver and gold manipulation - now that the seal has been broken. </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="460" height="288" alt="" src="" /> </div> </div> </div> Banking Barclays Barclays Business Capital Markets Deutsche Bank Deutsche Bank Economy Finance Financial services Great Depression Investment banks Law Manhattan court Precious Metals Primary dealers recovery Reuters Settlement Tax evasion Term Sheet U.S. District Court UBS UN Court Sat, 03 Dec 2016 15:28:34 +0000 Tyler Durden 579381 at Crisis Averted: China Calls Taiwan Phone Call A "Gimmick" As It Lodges Diplomatic Protest <p>Following&nbsp; <a href="">yesterday's unexpected phone call </a>between Taiwan president Tsai Ing-wen and President-elect Trump, which broke with decades of foreign policy norms resulting from Washington's official "One China" stance....</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">NEW PHOTO: Taiwan releases photo of President Tsai Ing-wen, center, speaking with Trump during controversial call <a href=""></a> <a href=""></a></p> <p>— ABC News (@ABC) <a href="">December 3, 2016</a></p></blockquote> <script src="//"></script><p>... and which <a href="">spooked numerous foreign policy pundits</a>, concerned that China would see the call as a hostile act by the Trump team and lead to a material deterioration in US-China relations, which also prompted Trump to take to twitter on Friday night to explain that he did not initiate the call but was merely responding to good wishes from the president of Taiwan...</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">The President of Taiwan CALLED ME today to wish me congratulations on winning the Presidency. Thank you!</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="">December 3, 2016</a></p></blockquote> <script src="//"></script><p>....and further poked the hypocrisy of the US establishment by saying "Interesting how the U.S. sells Taiwan billions of dollars of military equipment but I should not accept a congratulatory call" in a follow up tweet...</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Interesting how the U.S. sells Taiwan billions of dollars of military equipment but I should not accept a congratulatory call.</p> <p>— Donald J. Trump (@realDonaldTrump) <a href="">December 3, 2016</a></p></blockquote> <script src="//"></script><p>... China responded on Saturday morning in two ways. </p> <p>First, as Xinhua writes in its <a href="">English edition</a>, it "lodged solemn representations with the United States, urging the latter to honor its commitment to the one-China policy, Foreign Ministry spokesperson Geng Shuang said on Saturday." </p> <p><img src="" width="500" height="334" /></p> <p>"<strong>It must be stated that, there is only one China and Taiwan is an inalienable part of China's territory, and the government of the People's Republic of China is the sole legitimate government that represents China. Those are all facts recognized by the international community</strong>," Geng said. The one-China principle is the political foundation for the China-U.S. relations, Geng said.</p> <p>The White House on Friday reaffirmed backing for its long-standing support of the one-China policy and the three China-U.S. joint communiques. "We remain firmly committed to our one-China policy based on the three joint communiques," White House National Security Council spokesperson Ned Price told local media. "Our fundamental interest is in peaceful and stable cross-strait relations." </p> <p>Geng also urged "relevant parties in the US to honor the commitment to the one-China policy as well as the three Sino-U.S. joint communiques, <strong>and to handle Taiwan-related issues with caution and care to avoid unnecessarily interfering with the overall situation of Sino-US relations</strong>." That was interpreted as a direct warning to Trump to be careful while observing international diplomatic protocol, especially when China is involved.</p> <p>According <a href="">to AFP</a>, it was not immediately clear whether Trump's telephone call with Tsai Ing-wen marked a deliberate pivot away from Washington's official "One China" stance, but it fuelled fears he is improvising on international affairs. China added that the one-China principle is a cornerstone for healthy development of Sino-U.S. relations, and China does not want this political foundation to be interfered with or damaged, Wang added. </p> <p>That said, to avoid being seen as too critical on the president-elect, Xinhua also reported that overnight, <strong>Foreign Minister Wang Yi called Tsai's call with Trump "a little trick", or loosely translated in English as "gimmick", by Taiwan which would not change the one-China consensus in international community. </strong>He added that the "One-China" policy is the foundation for the healthy development of China’s relationship with the U.S. </p> <p>Further de-escalating tensions, Wang also said on the sidelines of a foreign policy seminar on Saturday that "I don't think it will change the one-China policy of the U.S. government either." </p> <p>* * * </p> <p>Prior to Beijing's response, in China, analysts painted the call as something originating from Taiwan, claiming it was a deliberate Taiwanese attempt to upend America's China policy. Jin Canrong, from China's Renmin University, told AFP Tsai had been "very cunning" in her call to Trump. </p> <p><strong>"Tsai Ing-wen would like to draw the United States against the mainland," </strong>he said.</p> <p>During his presidential campaign, Trump repeatedly accused China of manipulating its currency to harm US manufacturing and threatened to impose tariffs on some of its exports. "One can see at once that Trump is very reckless, not familiar at all with the whole context," Jin said.</p> <p>Chinese citizens were quick to react to the call on social networking platforms, noting Trump's reference to Tsai as "president" whereas on the mainland she is only referred to as Taiwan's "leader".</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>"The US dares to recognise Taiwan independence," one user said on Weibo, China's version of Twitter. </p> <p>&nbsp;</p> <p>Another posted: "He calls Tsai as +president+ on Twitter!!! Is Trump thinking of using Taiwan as a bargaining chip in his negotiations with China?" </p> <p>&nbsp;</p> <p>However Zhang Wensheng, of Xiamen University, was more circumspect, dismissing Trump's use of the term "president" as "personal greetings" that "do not reflect a political position whatsoever".</p> </blockquote> <p>While the motive behind Trump's conversation with the Taiwan president remains unclear - and perhaps there was no motive to begin with - Friday's incident is a reminder that under the President-elect, everything is about to change and what was formally considered "mere protocol" is now officially out of the door, for better or worse.</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="1024" height="684" alt="" src="" /> </div> </div> </div> ABC News Asia bargaining chip Business China China's Renmin University Cross-Strait relations Donald Trump Foreign Ministry Geography of Asia national security One-China policy Politics Politics of Taiwan President of the Republic of China Taiwan Taiwan independence movement Taiwan Strait Tsai Ing-wen Twitter Twitter US government White House White House White House national security council Xiamen University Sat, 03 Dec 2016 14:07:06 +0000 Tyler Durden 579375 at Trump Risks Major Diplomatic Scandal With China Following Taiwan Phone Call <p>Ever since the US <a href="">adopted a “One China” policy </a>after the 1972 Nixon-Mao meetings, followed by President Carter formally recognizing Beijing as the sole government of China in 1978 leading to the closure of the US embassy in Taipei one year later and cutting off relations with Taiwan, when it comes to US-China diplomacy Washington has maintained a steady posture when it comes to Taiwan: non-recognition. </p> <p>That changed today, when as the Trump team reported, following nearly four decades of diplomatic non-contact, the president-elect <a href="">held a phone conversation </a>with the president of Taiwan, Tsai Ing-wen, who offered Trump her congratulations, and during which "<strong>they noted the close economic, political and security ties" </strong>that exist between Taiwan and the United States.</p> <p><a href=""><img src="" width="500" height="232" /></a></p> <p>Oops.</p> <p>Perhaps Trump was confused, and thought he was chatting with the president of the <em>People's Republic of China</em>, also known as China, instead of the <em>Republic of China</em>, better known as Taiwan, but whatever the reason, Trump now risks a major diplomatic scandal with China - before he has even been inaugurated - as a result of his phone call with the president of Taiwan, which China regards as a renegade province. As the <a href="">FT accurately notes</a>, "although it is not clear if the Trump transition team intended the conversation to signal a broader change in US policy towards Taiwan, <strong>the call is likely to infuriate Beijing.</strong>"</p> <p><a href=""><img src="" width="500" height="281" /></a></p> <p>Quoted <a href="">by the FT</a>, Evan Medeiros, former Asia director at the White House national security council said that “the Chinese leadership will see this as a highly provocative action, of historic proportions." </p> <p>“Regardless if it was deliberate or accidental, this phone call will fundamentally change China’s perceptions of Trump’s strategic intentions for the negative. With this kind of move, Trump is setting a foundation of enduring mistrust and strategic competition for US-China relations.”</p> <p>The phone call prompted a quick reaction, for now domestically (China is sleeping at this moment), with Sen. Chris Murphy taking to Twitter to say that "It's probably time we get a Secretary of State nominee on board. Preferably w experience. Like, really really soon."</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">(1) Foreign policy consistency is a means, not an end. It's not sacred. Thus, it's Trump's right to shift policy, alliances, strategy.</p> <p>— Chris Murphy (@ChrisMurphyCT) <a href="">December 2, 2016</a></p></blockquote> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">(2) What has happened in the last 48 hours is not a shift. These are major pivots in foreign policy w/out any plan. That's how wars start.</p> <p>— Chris Murphy (@ChrisMurphyCT) <a href="">December 2, 2016</a></p></blockquote> <script src="//"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">(3) And if they aren't pivots - just radical temporary deviations - allies will walk if they have no clue what we stand for. Just as bad.</p> <p>— Chris Murphy (@ChrisMurphyCT) <a href="">December 2, 2016</a></p></blockquote> <script src="//"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">(4) It's probably time we get a Secretary of State nominee on board. Preferably w experience. Like, really really soon.</p> <p>— Chris Murphy (@ChrisMurphyCT) <a href="">December 2, 2016</a></p></blockquote> <script src="//"></script><p>* * * </p> <p>In a separate diplomatic snafu, Trump invited Philippines leader Rodrigo Duterte to the White House next year during a "very engaging, animated" phone conversation, an aide to president Duterte said on Friday, amid rocky relations between their two countries. </p> <p>Acording to the Trump team read-out of the conversation, the two leaders "noted the long history of friendship and cooperation between the two nations, and agreed that the two governments would continue to work closely on matters of shared interest and concern." </p> <p>There was no mention that in virtually every public appearance by Duterte in recent months, he has attcked either the US, or Obama, repeatedly calling the former "son of a bitch", occasionally calling him "son of a whore."</p> <p>Trump's brief chat with the firebrand Philippine president comes during a period of uncertainty about one of Washington's most important Asian alliances, stoked by Duterte's unrelenting hostility toward the United States and his repeated threats to sever decades-old defense ties. The call lasted just over seven minutes, Duterte's special advisor, Christopher Go, said in a short text message to media, which gave few details. Trump's transition team had no immediate comment.</p> <p>As Reuters summarizes, in his five months in office, the volatile Duterte has upended Philippine foreign policy by berating the United States, making overtures toward historic rival China and pursuing a new alliance with Russia. His diplomacy has created jitters among some Asian countries, wary about Beijing's rising influence and Washington's staying power as a regional counterbalance. </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The maverick former mayor has praised China and told U.S. President Barack Obama to "go to hell" and called him a "son of a bitch" whom he would humiliate if he visited the Philippines. </p> <p>&nbsp;</p> <p>The anger was unleashed after Obama expressed concern about possible human rights abuses in Duterte's war on drugs, during which over 2,000 people have been killed. </p> <p>&nbsp;</p> <p>Duterte had initially expressed optimism about having Trump in the Oval Office, saying he no longer wanted quarrels. But it has not tempered his rhetoric and he has continued to rail at what he calls U.S. "hypocrisy" and "bullying".</p> </blockquote> <p>In an interview with <a href="">Reuters </a>during the election campaign, Trump said Duterte's comments showed "a lack of respect for our country." However said lack of respect appears to not have been sufficient to snub the Philippino leader, sometimes referred to as the "Trump of the East" due to his "brash, mercurial ways."</p> <p>Duterte has threatened repeatedly to sever defense ties between the two allies, saying he "hates" having foreign soldiers in his country. Joint military exercises look set to be scaled back next year, as Duterte demanded, including the number of U.S. troops involved.</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="700" height="394" alt="" src="" /> </div> </div> </div> Asia Barack Obama China China–United States relations Christopher Go Donald Trump Geography of Asia Government of the Philippines national security One-China policy Philippine presidential election Political positions of Donald Trump Politics Politics of the Philippines Presidency of Rodrigo Duterte Reuters Rodrigo Duterte Rodrigo Duterte presidential campaign Southeast Asia Taiwan Twitter Twitter US embassy in Taipei Visayan people White House White House White House national security council Sat, 03 Dec 2016 04:38:51 +0000 Tyler Durden 579347 at Official Washington's "Info-Wars" <p><em><a href="">Authored by William Blum, originally posted at,</a></em></p> <p><strong>On November 16, at a State Department press briefing, department spokesperson John Kirby was having one of his frequent adversarial dialogues with Gayane Chichakyan, a reporter for RT (Russia Today);</strong> this time concerning U.S. charges of Russia bombing hospitals in Syria and blocking the U.N. from delivering aid to the trapped population.</p> <p><iframe allowfullscreen="" frameborder="0" height="315" src="//" width="560"></iframe></p> <p><em><strong>When Chichakyan asked for some detail about these charges, Kirby replied: &ldquo;Why don&rsquo;t you ask your defense ministry?&rdquo;</strong></em></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>GC: Do you &ndash; can you give any specific information on when Russia or the Syrian Government blocked the UN from delivering aid? Just any specific information.</p> <p>&nbsp;</p> <p>KIRBY: There hasn&rsquo;t been any aid delivered in the last month.</p> <p>&nbsp;</p> <p>GC: And you believe it was blocked exclusively by Russia and the Syrian Government?</p> <p>&nbsp;</p> <p><strong>KIRBY: There&rsquo;s no question in our mind that the obstruction is coming from the regime and from Russia. No question at all.&hellip;</strong></p> <p>&nbsp;</p> <p><strong>MATTHEW LEE (Associated Press): Let me &ndash;- hold on, just let me say: Please be careful about saying &ldquo;your defense minister&rdquo; and things like that. I mean, she&rsquo;s a journalist just like the rest of us are, so it&rsquo;s -&ndash; she&rsquo;s asking pointed questions, but they&rsquo;re not &ndash;</strong></p> <p>&nbsp;</p> <p>KIRBY: From a state-owned -&ndash; from a state-owned &ndash;</p> <p>&nbsp;</p> <p>LEE: But they&rsquo;re not &ndash;</p> <p>&nbsp;</p> <p>KIRBY: From a state-owned outlet, Matt.</p> <p>&nbsp;</p> <p>LEE: But they&rsquo;re not &ndash;</p> <p>&nbsp;</p> <p><strong>KIRBY: From a state-owned outlet that&rsquo;s not independent.</strong></p> <p>&nbsp;</p> <p>LEE: The questions that she&rsquo;s asking are not out of line.</p> <p>&nbsp;</p> <p>KIRBY: I didn&rsquo;t say the questions were out of line...</p> <p>&nbsp;</p> <p><strong>KIRBY: I&rsquo;m sorry, but I&rsquo;m not going to put Russia Today on the same level with the rest of you who are representing independent media outlets.</strong></p> </blockquote> <p>One has to wonder if State Department spokesperson Kirby knows that in 2011 Secretary of State Hillary Clinton, speaking about RT,&nbsp;<a href="" target="_blank">declared</a>: &ldquo;The Russians have opened an English-language network. I&rsquo;ve seen it in a few countries, and it is quite instructive.&rdquo;</p> <p><strong>I also wonder how Mr. Kirby deals with reporters from the BBC, a STATE-OWNED television and radio entity in the U.K.,</strong> broadcasting in the U.S. and all around the world.</p> <p><strong>Or the state-owned Australian Broadcasting Corporation</strong>, described by Wikipedia as follows: &ldquo;The corporation provides television, radio, online and mobile services throughout metropolitan and regional Australia, as well as overseas&hellip; and is well regarded for quality and reliability as well as for offering educational and cultural programming that the commercial sector would be unlikely to supply on its own.&rdquo;</p> <p><strong>There&rsquo;s also Radio Free Europe, Radio Free Asia, Radio Liberty (Central/Eastern Europe), and Radio Marti (Cuba); all (U.S.) state-owned,</strong> none &ldquo;independent&rdquo;, but all deemed worthy enough by the United States to feed to the world.</p> <p><strong>And let&rsquo;s not forget what Americans have at home: PBS (Public Broadcasting Service) and NPR (National Public Radio), </strong>which would have a near-impossible time surviving without large federal government grants. How independent does this leave them? Has either broadcaster ever unequivocally opposed a modern American war? There&rsquo;s good reason NPR has long been known as National Pentagon Radio. But it&rsquo;s part of American media&rsquo;s ideology to pretend that it doesn&rsquo;t have any ideology.</p> <p><em>As to the non-state American media &hellip; There are about 1,400 daily newspapers in the United States. Can you name a single paper, or a single TV network, that was unequivocally opposed to the American wars carried out against Libya, Iraq, Afghanistan, Yugoslavia, Panama, Grenada, and Vietnam while they were happening, or shortly thereafter? Or even opposed to any two of these seven wars? How about one?</em></p> <p><em>In 1968, six years into the Vietnam War, the&nbsp;Boston Globe&nbsp;(Feb. 18, 1968) surveyed the editorial positions of 39 leading U.S. papers concerning the war and found that &ldquo;none advocated a pull-out.&rdquo; Has the phrase &ldquo;invasion of Vietnam&rdquo; ever appeared in the U.S. mainstream media?</em></p> <p><em>In 2003, leading cable station MSNBC took the much-admired Phil Donahue off the air because of his opposition to the calls for war in Iraq. Mr. Kirby would undoubtedly call MSNBC &ldquo;independent.&rdquo;</em></p> <p><em><strong>If the American mainstream media were officially state-controlled, would they look or sound significantly different when it comes to U.S. foreign policy?</strong></em></p> <h3><u>New Cold War Propaganda</u></h3> <p>On Nov. 25, the&nbsp;Washington Post&nbsp;ran an article entitled: &ldquo;Research ties &lsquo;fake news&rsquo; to Russia.&rdquo; It&rsquo;s all about how sources in Russia are flooding American media and the Internet with phony stories designed as &ldquo;part of a broadly effective strategy of sowing distrust in U.S. democracy and its leaders.&rdquo;</p> <div id="attachment_21798"> <p><a href=""><img alt="The Washington Post building in downtown Washington, D.C. (Photo credit: Washington Post)" src="" /></a></p> <p><em>The Washington Post building in downtown Washington, D.C. (Photo credit: Washington Post)</em></p> </div> <p>&ldquo;The sophistication of the Russian tactics,&rdquo; the article says, &ldquo;may complicate efforts by Facebook and Google to crack down on &lsquo;fake news&rsquo;.&rdquo;</p> <p>The&nbsp;Post&nbsp;states that the Russian tactics included &ldquo;penetrating the computers of election officials in several states and releasing troves of hacked emails that embarrassed Clinton in the final months of her campaign.&rdquo; (Heretofore this had been credited to Wikileaks.)</p> <p><strong>The story is simply bursting with anti-Russian references:</strong></p> <ul> <li>&ndash;An online magazine header &ndash; &ldquo;Trolling for Trump: How Russia Is Trying to Destroy Our Democracy.&rdquo;</li> <li>&ndash;&ldquo;the startling reach and effectiveness of Russian propaganda campaigns.&rdquo;</li> <li>&ndash;&ldquo;more than 200 websites as routine peddlers of Russian propaganda during the election season.&rdquo;</li> <li>&ndash;&ldquo;stories planted or promoted by the disinformation campaign were viewed more than 213 million times.&rdquo;</li> <li>&ndash;&ldquo;The Russian campaign during this election season &hellip; worked by harnessing the online world&rsquo;s fascination with &lsquo;buzzy&rsquo; content that is surprising and emotionally potent, and tracks with popular conspiracy theories about how secret forces dictate world events.&rdquo;</li> <li>&ndash;&ldquo;Russian-backed phony news to outcompete traditional news organizations for audience&rdquo;</li> <li>&ndash;&ldquo;They use our technologies and values against us to sow doubt. It&rsquo;s starting to undermine our democratic system.&rdquo;</li> <li>&ndash;&ldquo;Russian propaganda operations also worked to promote the &lsquo;Brexit&rsquo; departure of Britain from the European Union.&rdquo;</li> <li>&ndash;&ldquo;Some of these stories originated with RT and Sputnik, state-funded Russian information services that mimic the style and tone of independent news organizations yet sometimes include false and misleading stories in their reports.&rdquo;</li> <li>&ndash;&ldquo;a variety of other false stories &mdash; fake reports of a coup launched at Incirlik Air Base in Turkey and stories about how the United States was going to conduct a military attack and blame it on Russia&rdquo;</li> </ul> <p>A former U.S. ambassador to Russia, Michael McFaul, is quoted saying he was &ldquo;struck by the overt support that Sputnik expressed for Trump during the campaign, even using the #CrookedHillary hashtag pushed by the candidate.&rdquo; McFaul said Russian propaganda typically is aimed at weakening opponents and critics.</p> <p>&ldquo;They don&rsquo;t try to win the argument. It&rsquo;s to make everything seem relative. It&rsquo;s kind of an appeal to cynicism.&rdquo; <strong>[Cynicism? Heavens! What will those Moscow fascists/communists think of next?]</strong></p> <p>The&nbsp;Post&nbsp;did, however, include the following: &ldquo;RT disputed the findings of the researchers in an e-mail on Friday, saying it played no role in producing or amplifying any fake news stories related to the U.S. election.&rdquo; RT was quoted: <strong><em>&ldquo;It is the height of irony that an article about &lsquo;fake news&rsquo; is built on false, unsubstantiated claims. RT adamantly rejects any and all claims and insinuations that the network has originated even a single &lsquo;fake story&rsquo; related to the US election.&rdquo;</em></strong></p> <p>It must be noted that the&nbsp;Washington Post&nbsp;article <strong>fails to provide a single example showing how the actual facts of a specific news event were rewritten or distorted by a Russian agency to produce a news event with a contrary political message.</strong></p> <p>What then lies behind such blatant anti-Russian propaganda? In the new Cold War such a question requires no answer. <u><strong>The new Cold War by definition exists to discredit Russia simply because it stands in the way of American world domination</strong></u>. In the new Cold War, the political spectrum in the mainstream media runs the gamut from A to B.</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="591" height="328" alt="" src="" /> </div> </div> </div> Afghanistan Anti-Russian sentiment Australia B+ Broadcasting Department of State Eastern Europe Eastern Europe European Union European Union Google Iraq Kirby Mass media Michael McFaul MSNBC National Pentagon News None Politics Public Broadcasting Service RIA Novosti RT Russian propaganda Sputnik State media Syrian government Television Turkey United Nations Washington D.C. Sat, 03 Dec 2016 03:30:00 +0000 Tyler Durden 579344 at Chinese Developers Rethink U.S. Real Estate Projects: "I See Danger...U.S. Real Estate Is Peaking" <p>For months we've been warning that real estate markets in NYC and San Francisco, among others, are getting ready to rollover as the market is about to be flooded with new supply of luxury apartments (see <a href="">here</a> and <a href="">here</a>).&nbsp; Real estate in both markets are just starting to show signs of cracking as the apartments sales cycle is getting stretched out and pricing growth has stalled.&nbsp; </p> <p>Now, per an article from the <a href="">Wall Street Journal</a>, wealthy Chinese real estate investors are admitting that the jig is up in large cities like New York and are running for the hills.&nbsp; With a substantial amount of capacity expected to come online over the next several quarters and a growth cycle that is entering its 8th year, one Chinese real estate investor admits "<strong>you get a sense now that it’s peaking."</strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Swelling supply of high-end New York condominiums could result in losses for some Chinese developers, analysts said. A push to partner with U.S. developers on other projects, meanwhile, has brought unexpected legal spats and other delays.</p> <p>&nbsp;</p> <p><strong>“I see a danger in the real-estate market in the U.S.,”</strong> said John Liang, Xinyuan Real Estate’s managing director of U.S. operations. <strong>“With its seven- to eight-year cycle, you get a sense now that it’s peaking.”</strong> He added that he sees value in middle-tier residential properties in Manhattan and Queens.</p> <p>&nbsp;</p> <p><strong>“Right now the prices are really high,” </strong>said Zhang Xin, chief executive of Soho China, whose family invested in a stake in Manhattan’s General Motors Building in 2013. <strong>“I would be very cautious if I were to make a large investment in New York’s real estate today.”</strong></p> </blockquote> <p><img src="" alt="NYC" width="600" height="435" /></p> <p>&nbsp;</p> <p>Of course, Manhattan isn't the only Burrough experiencing a supply glut.&nbsp; Forest City Realty was just forced to take a $300mm impairment charge on a joint venture with a Shanghai-based development company after <strong>"unprecedented rental supply in downtown Brooklyn" forced the copanies to delay development.</strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>CL Investment, which has three other high-end residential projects in Manhattan, plans to keep the office space as part of efforts to diversify, according to a person with knowledge of the matter.</p> <p>&nbsp;</p> <p>In Brooklyn, N.Y., a deal between <strong>Shanghai-based, state-owned conglomerate Greenland Holding Group</strong> and Forest City Realty Trust on a 22-acre, 15-building mixed-use project in various stages of construction is facing stiff headwinds.</p> <p>&nbsp;</p> <p><strong>Forest City earlier this month said it took a $307.6 million impairment charge for the project</strong>, called Pacific Park Brooklyn, and said it plans “to delay future vertical development.”</p> <p>&nbsp;</p> <p>“We revised the schedule due to a number of factors,<strong> including almost unprecedented concentrations of new rental supply in downtown Brooklyn, which will take time for the market to absorb,”</strong> said Forest City CEO David LaRue.</p> </blockquote> <p>Just to add insult to injury, the softening real estate market is coming just as China is once again looking to tighten rules on capital investments outside of China.&nbsp; </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The headwinds come at a time when <strong>Beijing once again is planning to tighten its rules on Chinese investment capital leaving the country</strong>.</p> <p>&nbsp;</p> <p><strong>The Chinese State Council is expected to soon announce new reviews of foreign acquisitions of $10 billion or more and property investments by state-owned firms of more than $1 billion</strong>, according to people with direct knowledge of the matter and documents reviewed by The Wall Street Journal.</p> <p>&nbsp;</p> <p><strong>Total Chinese direct investment in U.S. real-estate and hospitality assets is nearly $12.6 billion, accounting for nearly a fifth of total Chinese investment in the U.S.</strong> since 1990, according to a recent report from the Rhodium Group and the National Committee on U.S.-China Relations. Most of the activity has taken place since 2010 and is concentrated in areas such as New York, Los Angeles and San Francisco.</p> </blockquote> <p>Of course, no matter what kind of capital controls are put in place, just like the <a href="">Vancouver</a> and Sydney real estate markets, we suspect that when Chinese money needs to be laundered, people will find a way.&nbsp; The only question is now that yet another bubble has run its course, where subsequent bubbles will emerge.</p> <p>* * * </p> <p><em>For those who missed it, below is what we recently wrote after 3Q16 apartment closings plunged 18.6% in NYC.</em></p> <p>New York City apartment owners should take note of the latest 3Q16 "<a href="">Elliman Report</a>" on Manhattan real estate sales because the market looks to be in free fall.&nbsp; In fact, the number of apartment closings plunged 18.6% YoY while apartments sat on the market an average of 8.2% longer.&nbsp; Inventory also spiked with re-sale inventory up 8.2% YoY and new development inventory up a massive 27.2%.&nbsp;&nbsp;&nbsp; </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>"<strong>The number of re-sales has fallen year over year in each of the last four quarters at an increasing rate</strong>.&nbsp; Listing inventory reflected significant differences in the rate of growth between re-sale and new development.&nbsp; Re-sale inventory expanded 8.2% to 5,290 <strong>while new development inventory surged 27.2% to 973 respectively from the same period a year ago.</strong>"</p> </blockquote> <p>Median sales prices did increase YoY by 7.6% but collapsed QoQ despite a massive surge in pricing on the luxury end of the market.</p> <p><a href=""><img src="" alt="NYC Real Estate" width="600" height="695" /></a></p> <p>&nbsp;</p> <p>The re-sale market looks even more bleak, on a standalone basis, as the overall numbers above are skewed by sales of super-luxury new development units.&nbsp; The number of re-sale closings collapsed over 20% YoY while days on the market increased 7.5%</p> <p><a href=""><img src="" alt="NYC Real Estate" width="600" height="254" /></a></p> <p>&nbsp;</p> <p>All segments of the market exhibited volume weakness with co-op sales down 17.1% YoY on a 14.1% increase in listing days and a modest 1.4% increase in median sales price.</p> <p><img src="" alt="NYC Real Estate" width="600" height="214" /></p> <p>&nbsp;</p> <p>Condo sales declined 20.1% YoY on a 2.4% increase in listing days and a 6.7% increase in median sales price.&nbsp; Meanwhile, condo inventory rose over 15%.</p> <p><img src="" alt="NYC Real Estate" width="600" height="219" /></p> <p>&nbsp;</p> <p>And, of course, the luxury market seemed to hold up the best in 3Q with volumes still weak at -18.6% but median pricing up 23.9% and listing inventory down YoY.</p> <p><img src="" alt="NYC Real Estate" width="600" height="228" /></p> <p>&nbsp;</p> <p>In conclusion, the lesson seems to be that the marginal New York City buyer has been priced out of the market (volume down 20%) while sellers have not yet accepted that the bubble has burst deciding instead to maintain listing prices while letting their apartments sit on the market longer amid growing inventory levels.&nbsp; Meanwhile, the luxury market is the only segment that seems to be holding up which only serves to prove that Chinese billionaires still have cash they would like to hide in the U.S.</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="717" height="478" alt="" src="" /> </div> </div> </div> Apartment Business Business China Chinese State Council Distribution Economy General Motors Greenland Holdings Inventory Lean manufacturing Manufacturing National Committee New York City Operations research Real estate Real estate Supply chain management Wall Street Journal Sat, 03 Dec 2016 03:00:00 +0000 Tyler Durden 579307 at Obama Supports Forcing Women To Register For Military Draft <p><a href=""><em>Submitted by Jason Ditz via,</em></a></p> <p>Continuing the debate over a massive expansion of the Selective Service, the <a href="">White House today announced that President Obama is <strong>in favor of expanding registration</strong></a><strong> for the military draft to include all women when they turn 18</strong>.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&quot;As old barriers for military service are being removed, the administration supports &mdash; as a logical next step &mdash; women registering for the Selective Service,&quot;</strong> said Ned Price, a spokesman for Obama&#39;s National Security Council.</p> <p>&nbsp;</p> <p>The White House had previously expressed neutrality on the controversy, but took a position in a statement to USA TODAY on Thursday.</p> <p>&nbsp;</p> <p><strong>Under current law, women can volunteer to serve in the military but aren&#39;t required to register for the draft. </strong>All adult men must register within 30 days of their 18th birthday.</p> </blockquote> <p>The announcement comes ahead of a <strong>planned House vote on a bill to study the expansion of the military draft</strong>, or to potentially eliminate the Selective Service outright. The White House has repeatedly insisted they have no plans to bring the draft back, <strong><em>but want to force everyone to register anyhow to &ldquo;foster a sense of public service.&rdquo;</em></strong></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>The measure had roiled social conservatives, who decried it as another step toward the blurring of gender lines akin to allowing transgender people to use public lavatories and locker rooms. </strong>Rep. Pete Sessions, R-Texas, spoke for a number of Republicans when he described the provision as &quot;coercing America&#39;s daughters&quot; into draft registration.</p> <p>&nbsp;</p> <p>But proponents of including women in the draft pool viewed the requirement as a sensible step toward gender equality. They pointed to the Pentagon&#39;s decision last year to open all front-line combat jobs to women as removing any justification for gender restrictions on registration.</p> </blockquote> <p>The administration opened all combat roles to women, and officials say they believe expanding the registration system is a &ldquo;logical next step,&rdquo; ensuring &ldquo;gender equality&rdquo; in forcing the public to register for potential conscription in future wars.</p> <p>Though there is some call from some in Congress to do away with the Selective Service system entirely as an unused relic of the past, there appears to be considerable support for keeping it in place despite its practical uselessness, simply on the grounds that it doesn&rsquo;t cost that much.</p> <p><strong>The Selective Service system was eliminated by President Ford in 1975,</strong> two years after the last conscription lottery.<strong> President Carter brought the system back in 1980 </strong>as part of a show of hostility toward the Soviet Union over the invasion of Afghanistan. The system has remained in place ever since, even though the Soviet occupation ended, the Soviet Union fell, and the US has been occupying Afghanistan themselves for the last 15 years.</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="395" height="201" alt="" src="" /> </div> </div> </div> Afghanistan Congress Conscription Conscription and sexism Conscription in the United States Ford Gender equality Military Military service national security National Security Council Pentagon Politics Politics President Obama Rostker v. Goldberg Selective Service Selective Service System White House White House Sat, 03 Dec 2016 02:30:00 +0000 Tyler Durden 579318 at CNN Caught in Locker Room Talk; Crew Jokes About Trump's Plane Crashing <p>Nothing to see here. The girls at CNN were merely fraternizing, joking it up about the President elect's airplane crashing. If you listen closely, one of the catamites caught giggling said he'd only be injured, not killed, so there's that.&nbsp;</p> <p> <iframe src="" width="560" height="315" frameborder="0"></iframe></p> <p><span style="font-size: 13.008px;">Hot mics are a bitch and so is the person who made these comments.</span></p> <p><span style="font-size: 13.008px;">Content originally generated at&nbsp;</span><a href="" style="font-size: 13.008px;"></a></p> Bitch Entertainment Injustice Linguistics Profanity Slang Sat, 03 Dec 2016 02:05:54 +0000 The_Real_Fly 579359 at Stanford Study Reveals California Pensions Underfunded By $1 Trillion Or $93k Per Household <p>Earlier today the <a href="">Kersten Institute for Governance and Public Policy</a> highlighted an updated pension study, released by the Stanford Institute for Economic Policy Research, which <strong>revealed some fairly startling realities about California's public pension underfunding levels</strong>.&nbsp; After averaging $77,700 per household in 2014, the amount of public pension underfunding for the state of California jumped to a staggering $92,748 per household in 2015.&nbsp; But don't worry, we're sure pension managers can grow their way out of the problem...hedge fund returns have been stellar recently, right?</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Stanford University’s pension tracker database<strong> pegs the market value of California’s total pension debt at $1 trillion or $93,000 per California household in 2015.&nbsp; </strong></p> <p>&nbsp;</p> <p>In 2014, California’s total pension debt was calculated at $77,700 per household, but has increased dramatically in response to abysmal investment returns at California’s public pension funds that hover at or below zero percent annual returns.</p> <p>&nbsp;</p> <p>The Pension Tracker database (<a href="" title=""></a>) is maintained by the Stanford Institute for Economic Policy Research (SIEPR) and is intended to help localize pension data by providing the ability to look up the market value of pension debt in any locality in California.</p> </blockquote> <p>Looking back to 2008, the underfunding levels of California's public pension have skyrocketed 157% on abysmal asset returns and growing liabilities resulting from lower discount rates.&nbsp; </p> <p>Perhaps this helps shed some light on why CalPERS is having such a difficult time with what should have been an easy decision to lower their long-term return expectations to 6% from 7.5% (see "<a href="">CalPERS Weighs Pros/Cons Of Setting Reasonable Return Targets Vs. Maintaining Ponzi Scheme</a>")...<strong>$93k per household just seems so much more "manageable" than $150k</strong>.</p> <p><a href=""><img src="" alt="Pension" width="600" height="439" /></a></p> <p>&nbsp;</p> <p>Oddly enough, California isn't even the worst off when it comes to pension debt as Alaska leads the pack with just over $110,000 per household.</p> <p><a href=""><img src="" alt="Pension" width="600" height="417" /></a></p> <p>&nbsp;</p> <p>Of course, at this point the question isn't "if" these ponzi schemes will blow up but rather which one will go first?&nbsp; We have our money on <a href="">Dallas Police and Fire</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="998" height="522" alt="" src="" /> </div> </div> </div> Business CalPERS Dallas Police Economy Finance Financial services Kersten Institute for Governance Labor Money Pension Underfunding Pensions Personal finance Social Issues Social law Stanford Institute for Economic Policy Research Stanford University Sat, 03 Dec 2016 02:00:00 +0000 Tyler Durden 579328 at Clinton & Trump Aides Forum Devolves Into Screaming Match - "I Would Rather Lose Than Win The Way You Did" <p>How was this ever going to end well? An election post-mortem forum erupted into a shouting match as top strategists of Hillary <strong>Clinton&rsquo;s campaign accused their Republican counterparts of fueling and legitimizing racism </strong>to elect Donald Trump. Clinton communications director Jennifer Palmieri exclaimed<strong><em> &quot;I would rather lose than win the way you guys did,&quot;</em></strong> to which Kellyanne Conway, Trump&rsquo;s campaign manager, fumed <strong><em>&quot;I can tell you are angry, but wow... Will you ever accept the election results?&quot;</em></strong> And it went down-hill from there...</p> <p><iframe frameborder="0" height="315" src="" width="560"></iframe></p> <p><a href=""><em>As NBC News reports, </em></a><strong>a Harvard panel that traditionally writes the first draft of presidential campaign history devolved into a shouting match between Trump and Clinton aides on Thursday in a raw, emotional display echoing the divisive campaign.</strong></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&nbsp;</strong>Jennifer Palmieri, who was Hillary Clinton&#39;s communications director, zeroed in on Steve Bannon, the incoming chief strategist for President-elect Donald Trump who once ran the web site Breitbart.</p> <p>&nbsp;</p> <p><em><strong>&quot;If providing a platform for white supremacists makes me a brilliant tactician, I am proud to have lost,&quot; </strong></em>said Palmieri, one of six Clinton aides who sat across tables from top Trump campaign staff at a forum moderated by three journalists, NBC News&#39; Andrea Mitchell among them.<strong><em> &quot;I would rather lose than win the way you guys did.&quot;</em></strong></p> <p>&nbsp;</p> <p>Kellyanne Conway, who managed Trump&#39;s campaign, was visibly angry and indignantly interrupted.<em> &quot;Do you think I ran a campaign where white supremacists had a platform?&quot;</em></p> <p>&nbsp;</p> <p><strong>&quot;You did, Kellyanne. You did,&quot; </strong>Palmieri said, as other Clinton aides chimed in in the affirmative. With only two microphones allowed to be open at any given time, the shouting match was so heated it became difficult to follow.</p> <p>&nbsp;</p> <p>&quot;Do you think you could have just had a decent message for white, working-class voters? How about, it&#39;s Hillary Clinton, she doesn&#39;t connect with people? How about, they have nothing in common with her? How about, she doesn&#39;t have an economic message?&quot; Conway said.</p> <p>&nbsp;</p> <p>&quot;There were dog whistles,&quot; said Clinton strategist Joel Benenson at one point.</p> <p>&nbsp;</p> <p>Said Conway: <strong><em>&quot;Guys, I can tell you are angry, but wow. Hashtag he&#39;s your president...will you ever accept the election results? Will you tell your protesters that he&#39;s their president, too?&quot;</em></strong></p> </blockquote> <p><strong>Exposing a somewhat stunning level of cognitive dissonance,</strong> seemingly blaming the media, <a href="">The Washington Post reports</a> that <strong>Clinton&rsquo;s campaign aides insisted, again and again, that their candidate had been held to a different standard than the other contenders</strong> &mdash; as evidenced by the controversy over her use of a private email server while secretary of state.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>Palmieri said that many political journalists had a personal dislike for the Democratic nominee and predicted that the email issue will go down in history as &ldquo;the most grossly overrated, over-covered and most destructive story in all of presidential politics.&rdquo;</p> <p>&nbsp;</p> <p>&ldquo;If I made one mistake, it was legitimizing the way the press covered this story line,&rdquo; Palmieri said.</p> <p>&nbsp;</p> <p>Mook added that Trump deftly used his rally speeches to &ldquo;switch up the news cycle.&rdquo;</p> <p>&nbsp;</p> <p><strong>&ldquo;The media by and large was not covering what Hillary Clinton was choosing to say,&rdquo; Mook said. &ldquo;They were treating her like the likely winner, and they were constantly trying to unearth secrets and expose.&rdquo;</strong></p> <p>&nbsp;</p> <p>For instance, Mook posited that the media did not scrutinize Trump&rsquo;s refusal to release his tax returns as intensively as the issue of Clinton&rsquo;s private email server.</p> <p>&nbsp;</p> <p>Conway retorted: <strong>&ldquo;Oh, my God, that question was vomited to me every day on TV.&rdquo;</strong></p> </blockquote> <p>Joel Benenson, Clinton&rsquo;s chief strategist, meanwhile, served notice that the election may be over but that the battles it spawned are not.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em><strong>&ldquo;You guys won, that&rsquo;s clear,&rdquo;</strong></em> Benenson said.<em><strong> &ldquo;But let&rsquo;s be honest. Don&rsquo;t act as if you have a popular mandate for your message. The fact of the matter is that more Americans voted for Hillary Clinton than for Donald Trump.&rdquo;</strong></em></p> <p>&nbsp;</p> <p>At which point Conway turned to her side and said:<em><strong> &ldquo;Hey, guys, we won. You don&rsquo;t have to respond. He was the better candidate. That&rsquo;s why he won.&rdquo;</strong></em></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="575" height="279" alt="" src="" /> </div> </div> </div> Business Cognitive Dissonance Donald Trump Donald Trump Donald Trump presidential campaign Harvard Hillary Clinton Hillary Clinton presidential campaign Jennifer Palmieri Joel Benenson Kellyanne Conway NBC Political campaign staff Politics Politics of the United States Pollsters Racism in the United States Robby Mook United States Sat, 03 Dec 2016 01:39:57 +0000 Tyler Durden 579298 at The Propaganda About Russian Propaganda <p><a href=""><em>Authored by Adrian Chen, originally posted at The New Yorker,</em></a></p> <p><strong>In late October, I received an e-mail from &ldquo;The PropOrNot Tea</strong>m,&rdquo; which described itself as a &ldquo;newly-formed independent team of computer scientists, statisticians, national security professionals, journalists and political activists, dedicated to identifying propaganda&mdash;particularly Russian propaganda targeting a U.S. audience.&rdquo; PropOrNot said that it had identified two hundred Web sites that &ldquo;qualify as Russian propaganda outlets.&rdquo; The sites&rsquo; reach was wide&mdash;they are&nbsp;read by at least fifteen million Americans. PropOrNot said that it had &ldquo;drafted a preliminary report about this for the office of Senator Ron Wyden (D-OR), and after reviewing our report they urged us to get in touch with you and see about making it a story.&rdquo;</p> <p>Reporting on Internet phenomena, <strong>one learns to be wary of anonymous collectives freely offering the fruits of their research</strong>. I told PropOrNot that I was probably too busy to write a story, but I asked to see the report. In reply, PropOrNot asked me to put the group in touch with &ldquo;folks at the NYTimes, WaPo, WSJ, and anyone else who you think would be interested.&rdquo; Deep in the middle of another project, I never followed up.</p> <p><strong>PropOrNot managed to connect with the Washington <em>Post&nbsp;</em>on its own. </strong>Last week, the&nbsp;<em>Post&nbsp;</em><a href="">published a story</a> based in part on PropOrNot&rsquo;s research. Headlined &ldquo;Russian Propaganda Effort Helped Spread &lsquo;Fake News&rsquo; During Election, Experts Say,&rdquo; the report claimed that a number of researchers had uncovered a &ldquo;sophisticated Russian propaganda campaign&rdquo; that spread fake-news articles across the Internet with the aim of hurting Hillary Clinton and helping Donald Trump. It prominently cited the PropOrNot research.&nbsp;The story topped the<em>&nbsp;Post&rsquo;s</em> most-read list, and was shared widely by prominent journalists and politicians on Twitter. <strong>The former White House adviser Dan Pfeiffer <a href="" target="_blank">tweeted</a>, &ldquo;Why isn&rsquo;t this the biggest story in the world right now?&rdquo;</strong></p> <p>Vladimir Putin and the Russian state&rsquo;s affinity for Trump has been well-reported. During the campaign, countless stories speculated on connections between Trump and Putin and alleged that Russia contributed to Trump&rsquo;s election using propaganda and subterfuge.<strong> Clinton made it a major line of attack. </strong>But the&nbsp;<em>Post&rsquo;s</em> story had the force of revelation, thanks in large part to the apparent scientific authority of PropOrNot&rsquo;s work: the group released a thirty-two-page report detailing its methodology, and named names with its list of two hundred suspect news outlets. The organization&rsquo;s anonymity, which a spokesperson maintained was due to fear of Russian hackers, added a cybersexy mystique.</p> <p><u><strong>But a close look at the report showed that it was a mess</strong></u>. &ldquo;To be honest, it looks like a pretty amateur attempt,&rdquo; Eliot Higgins, a&nbsp;well-respected&nbsp;researcher who has investigated Russian fake-news stories on his Web site, Bellingcat, for years, told me.<strong><em> &ldquo;I think it should have never been an article on any news site of any note.&rdquo;</em></strong></p> <p><strong>The most striking issue is the overly broad criteria used to identify which outlets spread propaganda. </strong>According to PropOrNot&rsquo;s recounting of its methodology, the third step it uses is to check if a site has a history of &ldquo;generally echoing the Russian propaganda &lsquo;line&rsquo;,&rdquo; which includes praise for Putin, Trump, Bashar al-Assad, Syria, Iran, China, and &ldquo;radical political parties in the US and Europe.&rdquo; <strong><em>When not praising, Russian propaganda includes criticism of the United States, Barack Obama, Clinton, the European Union, Angela Merkel, NATO, Ukraine, &ldquo;Jewish people,&rdquo; U.S. allies, the mainstream media, Democrats, and &ldquo;the center-right or center-left, and moderates of all stripes.&rdquo;</em></strong></p> <p>These criteria, of course, could include not only Russian state-controlled media organizations, such as Russia Today, but nearly every news outlet in the world, including the&nbsp;<em>Post&nbsp;</em>itself. Yet PropOrNot claims to be uninterested in differentiating between organizations that are explicit tools of the Russian state and so-called &ldquo;useful idiots,&rdquo; which&nbsp;echo Russian propaganda out of sincerely held beliefs. <strong>&ldquo;We focus on behavior, not motivation,&rdquo; they write.</strong></p> <p><strong>To PropOrNot, simply exhibiting a pattern of beliefs outside the political mainstream is enough to risk being labelled a Russian propagandist.</strong> Indeed, the list of &ldquo;propaganda outlets&rdquo; has included&nbsp;respected left-leaning publications like CounterPunch and Truthdig, as well as the right-wing behemoth Drudge Report. The list is so broad that it can reveal absolutely nothing about the structure or pervasiveness of Russian propaganda. <strong><em>&ldquo;It&rsquo;s so incredibly scattershot,&rdquo; Higgins told me. &ldquo;If you&rsquo;ve ever posted a pro-Russian post on your site, ever, you&rsquo;re Russian propaganda.&rdquo; </em></strong>In a <a href="">scathing&nbsp;takedown&nbsp;on The Intercept</a>, Glenn Greenwald and Ben Norton wrote that PropOrNot &ldquo;embodies the toxic essence of Joseph McCarthy, but without the courage to attach individual names to the blacklist.&rdquo;</p> <p>By overplaying the influence of Russia&rsquo;s disinformation campaign, the report also plays directly into the hands of the Russian propagandists that it hopes to combat. &ldquo;Think about RT and Sputnik&rsquo;s goals, how they report their success to Putin,&rdquo; Vasily Gatov, a Russian media analyst and a visiting fellow at the University of Southern California&rsquo;s Annenberg School for Communication and Journalism, told me. &ldquo;Their success is that they have penetrated their agenda, that they have become an issue for the West. And this is exactly what happened.&rdquo; <em>(Kristine Coratti Kelly, a spokeswoman for the&nbsp;Post, said, &ldquo;The Post reported on the work of four separate sets of researchers. PropOrNot was one. The&nbsp;Post&nbsp;reviewed its findings, and our questions about them were answered satisfactorily during the course of multiple interviews.&rdquo;)</em></p> <p>In a phone interview, a spokesman for PropOrNot brushed off the criticism. &ldquo;If there&rsquo;s a pattern of activity over time, especially combined with underlying technical tells, then, yeah, we&rsquo;re going to highlight it,&rdquo; he said. <strong>He argued that Russian disinformation is an enormous problem that requires direct confrontation.</strong> &ldquo;It&rsquo;s been clear for a while that Russia is a little braver, more aggressive, more willing to push the boundaries of what was previously acceptable.&rdquo; He said that, to avoid painting outlets with too broad a brush, the group employs a sophisticated analysis that relies on no single criterion in isolation.</p> <p>Yet, when pressed on the technical patterns that led PropOrNot to label the Drudge Report a Russian propaganda outlet, he could point only to a general perception of bias in its content. <strong>&ldquo;They act as a repeater to a significant extent, in that they refer audiences to sort of Russian stuff,&rdquo;</strong> he said. &ldquo;There&rsquo;s no a-priori reason, stepping back, that a conservative news site would rely on so many Russian news sources. What is up with that?&rdquo; I asked to see the raw data PropOrNot used to determine that the Drudge Report was a Russian-propaganda outlet. The spokesman said that the group would release it to the public eventually, but could not share it at the moment: &ldquo;That takes a lot of work, and we&rsquo;re an all-volunteer crew.&rdquo; Instead, he urged me to read the Drudge Report myself, suggesting that its nature would be apparent.</p> <p>On its Twitter account, PropOrNot, in support of its research, cites <a href="">an&nbsp;article&nbsp;I wrote for the&nbsp;<em>Times Magazine</em></a>, in 2015, about an online propaganda operation in Russia. But my investigation was focussed on a concrete organization that directly distributed disinformation. I was able to follow links from Twitter accounts and Web sites to a building in St. Petersburg where hundreds of young Russians worked to churn out propaganda. <strong>Despite the impressive-looking diagrams and figures in its report, PropOrNot&rsquo;s findings rest largely on innuendo and conspiracy thinking.</strong></p> <p>Another major issue with PropOrNot is that its members insist on anonymity.<strong> If one aims to cut through a disinformation campaign, transparency is paramount. Otherwise you just stoke further paranoia.</strong>The Russian journalist Alexey Kovalev, who debunks Kremlin propaganda on his site, Noodleremover, floated the possibility that PropOrNot was&nbsp;Ukrainians waging a disinformation campaign against&nbsp;Russia. The PropOrNot spokesman would speak to me only on the condition of anonymity and revealed only bare biographical details on background. &ldquo;Are you familiar with the assassination of Jo Cox?&rdquo; he asked, when I asked why his group remained in the shadows, referring to the British M.P. murdered by a right-wing extremist. <strong><em>&ldquo;Well, that is a big thing for us. Basically, Russia uses crazy people to kill its enemies.&rdquo;</em></strong></p> <p>I can report that<strong> the spokesman was an American man, probably in his thirties or forties, who was well versed in Internet culture and swore enthusiastically. </strong>He said that the group <strong>numbered about forty people</strong>. &ldquo;I can say we have people who work for major tech companies and people who have worked for the government in different regards, but we&rsquo;re all acting in a private capacity,&rdquo; he said.<strong><em> &ldquo;One thing we&rsquo;re all in agreement about is that Russia should not be able to fuck with the American people. That is not cool.&rdquo; </em></strong>The spokesman said that the group began with fewer than&nbsp;a dozen members, who came together while following Russia&rsquo;s invasion of eastern Ukraine. The crisis was accompanied by a flood of disinformation designed to confuse Ukraine and its allies. &ldquo;That was a big wake-up call to us. It&rsquo;s like, wait a minute, Russia is creating this very effective fake-news propaganda in conjunction with their military operation on the ground,&rdquo; the spokesman said. &ldquo;My God, if they can do that there, why can&rsquo;t they do it here?&rdquo; PropOrNot has said that the group includes Ukrainian-Americans, though the spokesman laughed at the suggestion that they were Ukrainian agents. PropOrNot has claimed total financial and editorial independence.</p> <p>Given PropOrNot&rsquo;s&nbsp;shadowy nature and the shoddiness of its work, I was puzzled by the group&rsquo;s&nbsp;claim to have worked with Senator Ron Wyden&rsquo;s office. In an e-mail, Keith Chu, a spokesman for Wyden, told me that the PropOrNot team reached out to the office in late October. Two of the group&rsquo;s members, an ex-State Department employee and an I.T. researcher, described their research. &ldquo;It sounded interesting, and tracked with reporting on Russian propaganda efforts,&rdquo; Chu wrote. <strong>After a few phone calls with the members, it became clear that Wyden&rsquo;s office could not validate the group&rsquo;s findings. </strong>Chu advised the group on press strategy and suggested some reporters that it might reach out to. &ldquo;I told them that if they had findings, some kind of document that they could share with reporters, that would be helpful,&rdquo; he told me. Chu said that Wyden&rsquo;s office played no role in creating the report and didn&rsquo;t endorse the findings. Nonetheless, he added, &ldquo;There has been bipartisan interest in these kind of Russian efforts, including interference in elections, for some time now, including from Senator Wyden.&rdquo;&nbsp;<strong>This week, Wyden and six other&nbsp;senators sent a <a href="" target="_blank">letter</a> to the White House asking it&nbsp;to declassify information &ldquo;concerning the Russian Government and the U.S. election.&rdquo;</strong></p> <p>The story of PropOrNot should serve as a cautionary tale to those who fixate on malignant digital influences as a primary explanation for Trump&rsquo;s stunning election. The story combines two of the most popular technological villains of post-election analysis - fake news and Russian subterfuge - into a single tantalizing package. <strong>Like the most effective Russian propaganda, the report weaved together truth and misinformation.</strong></p> <p>Bogus news stories, which overwhelmingly favored Trump, did flood social media throughout the campaign, and the hack of the Clinton campaign chair John Podesta&rsquo;s e-mail seems likely to have been the work of Russian intelligence services. But, as harmful as these phenomena might be, <strong>the prospect of legitimate dissenting voices being labelled fake news or Russian propaganda by mysterious groups of ex-government employees, with the help of a national newspaper, is even scarier. </strong>Vasily Gatov told me, &ldquo;To blame internal social effects on external perpetrators is very Putinistic.&rdquo;</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="836" height="441" alt="" src="" /> </div> </div> </div> Barack Obama China Department of State Donald Trump European Union European Union Iran national security Newspaper Politics Politics Propaganda Transparency Twitter Twitter Ukraine Vladimir Putin White House White House Sat, 03 Dec 2016 01:30:00 +0000 Tyler Durden 579338 at