http://www.zerohedge.com/fullrss2.xml en More Hillary Cronyism Revealed: Cisco Used Clinton Foundation To Cover-up Human Rights Abuse In China http://www.zerohedge.com/news/2015-04-18/more-hillary-cronyism-revealed-cisco-used-clinton-foundation-cover-human-rights-abus <p><a href="http://libertyblitzkrieg.com/2015/04/17/more-hillary-cronyism-revealed-how-cisco-used-clinton-foundation-donations-to-cover-up-human-rights-abuse-in-china/"><em>Submitted by Mike Krieger via Liberty Blitzkrieg blog</em></a>,</p> <p dir="ltr"><img alt="Screen Shot 2015-04-09 at 12.09.13 PM" class="alignnone wp-image-22991" height="172" src="http://libertyblitzkrieg.com/wp-content/uploads/2015/04/Screen-Shot-2015-04-09-at-12.09.13-PM.jpg" width="315" /></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p dir="ltr"><strong><em>In her 2014 memoir &ldquo;Hard Choices,&rdquo; Clinton&nbsp;reiterated&nbsp;her support for human-rights advocates in China. She specifically criticized the Great Firewall,&nbsp;writing&nbsp;that after she made comments about the right to dissent in China in 2011, &ldquo;censors went right to work erasing mentions of my message from the Internet.&rdquo;</em></strong></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><strong><em>But the issue of Chinese repression &mdash; and Cisco&rsquo;s role &mdash; was already known by then. In 2009, weeks after Clinton&rsquo;s State Department had named Cisco a finalist for the secretary of state&rsquo;s Awards for Corporate Excellence (ACE), a&nbsp;report&nbsp;from the Electronic Freedom Foundation noted &ldquo;Cisco&rsquo;s deep involvement&rdquo; in building the Chinese government&rsquo;s censorship system. The report pointed out that &ldquo;Cisco engineers gave a presentation&nbsp;acknowledging&nbsp;the repressive uses for their technology.&rdquo;</em></strong></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><strong><em>Daniel Wade, an attorney who represented Chinese dissidents in a lawsuit against Cisco, told IBTimes that &ldquo;Cisco knew full well that its products were going to be used to suppress and facilitate the torture of democracy activists.&rdquo; </em></strong></p> <p dir="ltr">&nbsp;</p> <p><strong><em>&ldquo;Crony capitalism has defined Clinton&rsquo;s career, from her tenure on the board of Walmart, to the Wall Street execs whom she surrounded herself with at the State Department, to her allegiance to Cisco, even as it violated principles on which she staked her tenure,&rdquo; said David Segal, executive director of the Internet freedom advocacy group Demand Progress.</em></strong></p> <p>&nbsp;</p> <p>- From the <em>International Business Times</em> article:&nbsp;<a href="http://www.ibtimes.com/hillary-clinton-cisco-china-company-funded-foundation-was-lauded-clinton-despite-role-1884160">Hillary Clinton, Cisco And China: Company Funded Foundation, Was Lauded By Clinton Despite Role In Repression</a></p> </blockquote> <p>As many suspected, it turns out that the Clinton Foundation is indeed&nbsp;a tepid cesspool of crony corporate and government donations used to buy influence at the highest levels of Washington D.C. This shouldn&rsquo;t surprise anyone paying attention, but it will hopefully wake up some&nbsp;Democrats still buying into the deep rooted myth of Hillary Clinton.</p> <p>David Sirota and his colleagues<a href="http://www.ibtimes.com/colombian-oil-money-flowed-clintons-state-department-took-no-action-prevent-labor-1874464"> at <em>International Business Times</em></a> have been relentless in uncovering several extremely important examples of her pathological cronyism. I highlighted his very important work just last week in the post,&nbsp;<strong><a href="http://libertyblitzkrieg.com/2015/04/09/this-is-how-hillary-does-business-an-oil-company-human-rights-abuses-in-colombia-and-the-clinton-foundation/" rel="bookmark" title="Permanent Link to This is How Hillary Does Business – An Oil Company, Human Rights Abuses in Colombia and the Clinton Foundation">This is How Hillary Does Business &ndash; An Oil Company, Human Rights Abuses in Colombia and the Clinton Foundation</a></strong>. Here&rsquo;s an excerpt:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em><strong>The details of these financial dealings remain murky, but this much is clear: After millions of dollars were pledged by the&nbsp;oil company&nbsp;to the Clinton Foundation &mdash; supplemented by&nbsp;millions&nbsp;more&nbsp;from Giustra himself &mdash; Secretary Clinton abruptly changed her position on the controversial U.S.-Colombia trade pact. Having&nbsp;opposed&nbsp;the deal as a bad one for labor rights back when she was a presidential candidate in 2008, she now promoted it,&nbsp;calling&nbsp;it &ldquo;strongly in the interests of both Colombia and the United States.&rdquo; The change of heart by Clinton and other Democratic leaders enabled congressional passage of a Colombia trade deal that experts say delivered big benefits to foreign investors like Giustra.</strong></em></p> <p>&nbsp;</p> <p><em><strong>The details of her family&rsquo;s entanglements in Colombia echo&nbsp;talk&nbsp;that the Clintons have blurred the lines between their private business and philanthropic interests and those of the nation. And&nbsp;Hillary Clinton&rsquo;s connections to Pacific Rubiales and Giustra intensify recent questions about whether big donations influenced her decisions as secretary of state.</strong></em></p> </blockquote> <p>As it turns out, this was just an appetizer. Despite claiming to be a strong advocate for human rights in China, it turns out she is an even stronger advocate for corporate donations. From <a href="http://www.ibtimes.com/hillary-clinton-cisco-china-company-funded-foundation-was-lauded-clinton-despite-role-1884160">the <em>International Business Times</em></a>:</p> <div> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div> <p dir="ltr"><em>Cisco Systems had a public relations problem: Having invested<a href="http://newsroom.cisco.com/press-release-content;jsessionid=0E30E3CD11ACB6D7DA4A4BA02EFC2094?type=webcontent&amp;articleId=4405874" rel="nofollow" target="_blank">&nbsp;$16 billion</a>&nbsp;in the Chinese market, the technology giant was suddenly facing congressional&nbsp;<a href="http://usatoday30.usatoday.com/tech/techinvestor/corporatenews/2008-05-20-cisco-china_N.htm" rel="nofollow" target="_blank">scrutiny</a>&nbsp;over its alleged complicity in building the so-called Great Firewall that helps China&rsquo;s authoritarian regime censor information and surveil its citizens.</em></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><em>The San Jose, California, company endured a high-profile Senate hearing about its Chinese operations in 2008 and&nbsp;<a href="http://newsroom.cisco.com/press-release-content;jsessionid=ACF45B981DECC76B4A91F89FDB737136?type=webcontent&amp;articleId=4717396" rel="nofollow" target="_blank">reaffirmed its&nbsp;</a>&ldquo;continued commitment to China.&rdquo; But the issue wouldn&rsquo;t die. A<a href="http://www.bostoncommonasset.com/news/cisco111009.html" rel="nofollow" target="_blank">&nbsp;group</a>&nbsp;of investors stormed the company&rsquo;s annual meeting in November 2009, pressing a shareholder resolution that would force the company to prevent the Chinese government from using Cisco technology to engage in what critics said was widespread human-rights abuse.</em></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><em><strong>That&rsquo;s when then-Secretary of State Hillary Clinton tossed the company a lifeline.&nbsp;<a href="http://www.state.gov/r/pa/prs/ps/2009/dec/133023.htm" rel="nofollow" target="_blank">Weeks</a>&nbsp;after Cisco executives killed the shareholder initiative, Cisco was honored as a finalist for the State Department&rsquo;s award&nbsp;<a href="http://www.state.gov/r/pa/prs/ps/2009/dec/133023.htm" rel="nofollow" target="_blank">for</a>&nbsp;&ldquo;outstanding corporate citizenship, innovation and democratic principles.&rdquo; The next year, the company&nbsp;<a href="https://www.youtube.com/watch?v=NdjWSfbOJDQ">won</a>&nbsp;the award.</strong> While the honors were for the company&rsquo;s work in the Middle East, they gave Cisco a well-timed opportunity to change the subject and present itself as a champion of human rights.</em></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><em><strong>What Clinton did not say at the State Department award&nbsp;<a href="http://www.state.gov/r/pa/prs/ps/2009/dec/133023.htm" rel="nofollow" target="_blank">ceremonies</a>&nbsp;was that Cisco had been pumping money into her family&rsquo;s foundation.</strong> Though the foundation will not release an exact timeline of the contributions, records reviewed by International Business Times show that Cisco had by December 2008&nbsp;<a href="http://projects.nytimes.com/clinton-donors/page/3" rel="nofollow" target="_blank">donated</a>&nbsp;from $500,000 to $1 million to the foundation. <strong>The company had hired lobbying firms run by former Clinton aides.</strong> <strong>After the money flowed into the foundation, Clinton&rsquo;s State Department not only lauded Cisco&rsquo;s human rights record, it also delivered millions of dollars worth of new government contracts to the company.</strong></em></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><em>Internet freedom advocates say Clinton&rsquo;s moves helped Cisco whitewash its image and also raise questions about the sincerity of her often-stated commitment to human rights.</em></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><em>&ldquo;Crony capitalism has defined Clinton&rsquo;s career, from her tenure on the board of Walmart, to the Wall Street execs whom she surrounded herself with at the State Department, to her allegiance to Cisco, even as it violated principles on which she staked her tenure,&rdquo; said David Segal, executive director of the Internet freedom advocacy group Demand Progress.</em></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><em>But the issue of Chinese repression &mdash; and Cisco&rsquo;s role &mdash; was already known by then. In 2009, weeks after Clinton&rsquo;s State Department had named Cisco a finalist for the secretary of state&rsquo;s Awards for Corporate Excellence (ACE), a&nbsp;<a href="https://www.eff.org/deeplinks/2010/01/selling-china-surveillance" rel="nofollow" target="_blank">report</a>&nbsp;from the Electronic Freedom Foundation noted &ldquo;Cisco&rsquo;s deep involvement&rdquo; in building the Chinese government&rsquo;s censorship system. The report pointed out that &ldquo;Cisco engineers gave a presentation&nbsp;<a href="http://www.wired.com/threatlevel/2008/05/leaked-cisco-do/" rel="nofollow" target="_blank">acknowledging</a>&nbsp;the repressive uses for their technology.&rdquo;</em></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><em>In 2010, the Clinton Foundation gave Cisco CEO John Chambers a high-profile speaking&nbsp;<a href="http://www.gettyimages.com/detail/news-photo/john-chambers-chairman-and-chief-executive-officer-of-cisco-news-photo/104380932" rel="nofollow" target="_blank">role</a>&nbsp;at its &ldquo;Turning Ideas Into Action&rdquo; annual meeting. Cisco also&nbsp;<a href="http://blogs.state.gov/stories/2010/12/17/secretarys-award-corporate-excellence-recognizes-businesses-improving-lives" rel="nofollow" target="_blank">won</a>&nbsp;an ACE that year &mdash; just before the Human Rights Law Foundation filed a lawsuit against Cisco outlining what the foundation&rsquo;s executive director, Terri Marsh, said was the &ldquo;key role Cisco played in the design, construction, and maintenance of China&rsquo;s Internet surveillance system.&rdquo;</em></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><em>In an interview with IBTimes, Marsh said that &ldquo;Cisco&rsquo;s conduct has enabled an unprecedented and widespread crackdown on religious minorities, Tibetans, and democracy activists in China.&rdquo; Cisco&rsquo;s work in China, she said, &ldquo;runs contrary to Secretary Clinton&rsquo;s&nbsp;<a href="http://www.state.gov/secretary/20092013clinton/rm/2010/01/135519.htm" rel="nofollow" target="_blank">stated commitment</a>&nbsp;to &lsquo;a single Internet where all of humanity has equal access to knowledge and ideas.&rsquo;&rdquo;</em></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><em>She added: &ldquo;We are disappointed that the State Department has chosen to reward rather than condemn such a company, and believe that the United States should instead be sending a clear message to American technology corporations that complicity in global human rights abuses is not acceptable.&rdquo;</em></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><em>Daniel Wade, an attorney who represented Chinese dissidents in a lawsuit against Cisco, told IBTimes that &ldquo;Cisco knew full well that its products were going to be used to suppress and facilitate the torture of democracy activists.&rdquo; </em></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><em>The Electronic Frontier Foundation, which today&nbsp;<a href="https://www.eff.org/deeplinks/2014/11/certificate-authority-encrypt-entire-web" rel="nofollow" target="_blank">works</a>&nbsp;with Cisco on an Internet encryption project, said Cisco technology enabled violent repression by the Chinese government.</em></p> <p dir="ltr">&nbsp;</p> <p dir="ltr"><em>&ldquo;We have ample evidence to indicate that the technology Cisco created was instrumental in the tracking down of religious minorities, detaining them, and murdering them,&rdquo; said Rainey Reitman, the EFF&rsquo;s activism director. &ldquo;Unfortunately, there hasn&rsquo;t been a full public accounting.&rdquo;</em></p> </blockquote> </div> <p dir="ltr">There&rsquo;s shameless, and then there&rsquo;s Hillary Clinton. She is in a league all&nbsp;by herself.</p> <p dir="ltr">*&nbsp; *&nbsp; *</p> <p dir="ltr"><em>For related articles, see:</em></p> <p dir="ltr"><em><a href="http://libertyblitzkrieg.com/2015/04/15/all-hail-hillary-iowa-students-locked-in-classrooms-as-clinton-arrives-at-college-to-visit-everyday-iowans/" rel="bookmark" title="Permanent Link to All Hail Hillary – Iowa Students Locked in Classrooms as Clinton Arrives at College to Visit “Everyday Iowans”">All Hail Hillary &ndash; Iowa Students Locked in Classrooms as Clinton Arrives at College to Visit &ldquo;Everyday Iowans&rdquo;</a></em></p> <p dir="ltr"><em><a href="http://libertyblitzkrieg.com/2015/04/09/this-is-how-hillary-does-business-an-oil-company-human-rights-abuses-in-colombia-and-the-clinton-foundation/" rel="bookmark" title="Permanent Link to This is How Hillary Does Business – An Oil Company, Human Rights Abuses in Colombia and the Clinton Foundation">This is How Hillary Does Business &ndash; An Oil Company, Human Rights Abuses in Colombia and the Clinton Foundation</a></em></p> <p dir="ltr"><em><a href="http://libertyblitzkrieg.com/2015/02/20/hilary-clinton-exposed-part-1-how-she-aggressively-lobbied-for-mega-corporations-as-secretary-of-state/" rel="bookmark" title="Permanent Link to Hillary Clinton Exposed Part 1 – How She Aggressively Lobbied for Mega Corporations as Secretary of State">Hillary Clinton Exposed Part 1 &ndash; How She Aggressively Lobbied for Mega Corporations as Secretary of State</a></em></p> <p dir="ltr"><em><a href="http://libertyblitzkrieg.com/2015/02/26/hilary-clinton-exposed-part-2-clinton-foundation-took-millions-from-countries-that-also-fund-isis/" rel="bookmark" title="Permanent Link to Hillary Clinton Exposed Part 2 – Clinton Foundation Took Millions From Countries That Also Fund ISIS">Hillary Clinton Exposed Part 2 &ndash; Clinton Foundation Took Millions From Countries That Also Fund ISIS</a></em></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="274" height="243" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20150418_clint.jpg?1429382593" /> </div> </div> </div> http://www.zerohedge.com/news/2015-04-18/more-hillary-cronyism-revealed-cisco-used-clinton-foundation-cover-human-rights-abus#comments China Cronyism Middle East Washington D.C. Sun, 19 Apr 2015 01:45:25 +0000 Tyler Durden 504987 at http://www.zerohedge.com This Technical Signaled The Last Two Market Crashes And It Just Happened http://www.zerohedge.com/news/2015-04-18/technical-signaled-last-two-market-crashes-and-it-just-happened <p><a href="http://www.firstrebuttal.com/2015/04/17/this-technical-signaled-the-last-two-market-crashes-and-it-just-happened/"><em>Submitted by Thad Beversdorf via FirstRebuttal.com</em></a>,</p> <p>So the fundamental case for a 20 year bull run as BMO is calling for and &nbsp;certainly many other banks seem to be onboard with that is not looking great YTD.<strong> &nbsp;In fact, most perma bulls have shy&rsquo;d away from even mentioning fundamentals other than to say&nbsp;that generally they aren&rsquo;t looking great but don&rsquo;t worry the Fed is still engaged. </strong>&nbsp; And so I feel its a worthwhile exercise to have a look at the technicals. &nbsp;Thing about the technicals is that you can cherry pick any baseline point to really make any case, good or bad. &nbsp;But if we take a look at a time period that encompasses several cycles we negate our ability to cherry pick the baseline and we can be much more confident&nbsp;in our overall analysis.</p> <p>So what I&rsquo;ve done is taken a two decade period of S&amp;P pricing which encompasses several cycles. &nbsp;Mid 1990&prime;s was a market mid cycle having recovered from the short recession of the early 1990&prime;s but before things really began heating up in the late 1990&prime;s. &nbsp;If we just have a gentle&nbsp;look at the chart we see we&rsquo;ve had a couple large cycles with fairly extreme booms and subsequent busts. &nbsp;Currently we are in the midst of the third boom which has taken us to new all time highs. &nbsp;Now even a 5 year old can look at the chart and say at some point this thing has a large down turn, same as it always does. &nbsp;That&rsquo;s easy to see&nbsp;and not many will argue it. &nbsp;But as so many bulls remind us we could have said the same thing about this chart a year ago and we&rsquo;d have missed out on significant returns. &nbsp;Very true. &nbsp;So the key is then figuring out where the down turn begins. <strong>&nbsp;I know I know that&rsquo;s the kind of stuff you have to go to biz school for eh. &nbsp;Ok so let&rsquo;s first have a look at the easy chart.</strong></p> <p><a href="http://www.firstrebuttal.com/wp-content/uploads/2015/04/Screen-Shot-2015-04-17-at-3.20.32-PM.png"><img alt="Screen Shot 2015-04-17 at 3.20.32 PM" class="alignnone size-full wp-image-1797" src="http://www.firstrebuttal.com/wp-content/uploads/2015/04/Screen-Shot-2015-04-17-at-3.20.32-PM.png" style="width: 600px; height: 452px;" /></a></p> <p>So pretty simple. &nbsp;Two full cycles and into the third which doesn&rsquo;t tell us much. &nbsp;<strong>Let&rsquo;s add&nbsp;some markers to see if we can&rsquo;t pick up on some&nbsp;technical cues.</strong></p> <p><a href="http://www.firstrebuttal.com/wp-content/uploads/2015/04/Screen-Shot-2015-04-17-at-2.39.28-PM.png"><img alt="Screen Shot 2015-04-17 at 2.39.28 PM" class="alignnone size-full wp-image-1794" src="http://www.firstrebuttal.com/wp-content/uploads/2015/04/Screen-Shot-2015-04-17-at-2.39.28-PM.png" style="width: 600px; height: 448px;" /></a></p> <p>So what we&rsquo;ve done is run a 2.5 standard deviation Bollinger Band (BB)&nbsp;using a 100 period moving average looking&nbsp;at monthly returns because we are interested long cycle technical cues. &nbsp;We&rsquo;ve also run Relative Strength Indicator (RSI) using 20 periods. &nbsp;What we find is actually quite notable. &nbsp;<strong>During&nbsp;the tech bubble&nbsp;cycle we saw the S&amp;P rise&nbsp;to the upper BB where it tracked the upper band for some time.</strong> &nbsp;&nbsp;During that same period we saw the RSI move above 70. &nbsp;Now as the market peaked we saw the S&amp;P move below the upper BB and we also saw a decline in RSI. &nbsp;What is&nbsp;very interesting is that the point where RSI dropped below 70 is the point the tech bubble burst and sent S&amp;P into a free fall. &nbsp;The market continued to sell until the RSI dropped below 30 at which point the market stabilized and reversed higher.</p> <p><strong>This took us into the start of the credit bubble cycle. </strong>&nbsp;Here the RSI move up very quickly and plateaued just below 70 for several years during which time the S&amp;P moved up but never quite made it to the upper BB. &nbsp;Then in 2007 the RSI moved above 70 but then quickly reversed&nbsp;back down below the upper band. <strong>&nbsp;Interestingly again the RSI dropping below the upper band seemed to trigger the bursting of the credit bubble as we saw S&amp;P again move into free fall.</strong> &nbsp;Then here too we saw the market stabilize as the RSI moved through the bottom band.</p> <p><strong>And again this brought us into the latest Fed bubble.</strong> &nbsp;Now during this latest cycle the RSI moved up but bounced off the upper band a few times without actually breaking through 70. &nbsp;At the same time the S&amp;P moved higher but with quite heavy volatility. &nbsp;Eventually we saw the RSI move up and break through the upper limit. &nbsp;It was about the same time that the S&amp;P traded&nbsp;higher to the upper BB where it tracked for some time. <strong>&nbsp;However,&nbsp;at the end of November 2014 the S&amp;P started to dislocate and moving down below the&nbsp;upper BB. &nbsp;And then ominously January&nbsp;of this year we saw the RSI also move below the upper RSI band.</strong></p> <p>Remember this technical signaled the popping&nbsp;of the past two bubble cycles. &nbsp;Now February saw the RSI move back above the upper band but March moved back down below. &nbsp;I would watch this very carefully now. <em><strong>&nbsp;I would venture to say if April remains&nbsp;below the upper RSI band we could very well have moved into the latest and perhaps greatest period of wealth destruction.&nbsp;It is time to protect those assets.</strong></em></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="559" height="301" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20150418_tech.jpg?1429368836" /> </div> </div> </div> http://www.zerohedge.com/news/2015-04-18/technical-signaled-last-two-market-crashes-and-it-just-happened#comments Recession Volatility Sun, 19 Apr 2015 01:30:31 +0000 Tyler Durden 504970 at http://www.zerohedge.com What Bernanke's New Employer Had To Say About Him Just 2 Years Ago http://www.zerohedge.com/news/2015-04-18/what-bernankes-new-employer-had-say-about-him-just-2-years-ago <p>Having previously explained the <a href="http://www.zerohedge.com/news/2015-04-16/175846629768-reasons-why-ben-bernanke-joined-citadel">175,846,629,768 reasons why former Fed Chair Ben Bernanke would join Citadel</a> - the most-levered hedge fund in the world and alleged conduit of fed put protection; we thought it intriguing to note what billionaire Citadel <strong>Ken Griffin had to say about Bernanke and his policies just 2 years ago</strong>...</p> <p>The revolving door between Wall Street and Washington doesn’t often involve big banks like Citigroup or Goldman Sachs anymore. Instead, <a href="http://www.forbes.com/sites/nathanvardi/2015/04/16/billionaire-hedge-fund-critic-of-the-fed-under-ben-bernanke-hires-bernanke-for-advice/"><em>as Forbes' Nathan Vardi reports,</em></a> <strong>hedge fund and private equity firms have become the destination of choice. They are richer and guys like Bernanke feel they are less controversial than the big banks.</strong></p> <p>But, ironically, <strong>Griffin has been publicly critical of some of the more prominent Federal Reserve policies that were implemented on Bernanke’s watch</strong>. He particularly took some shots at those policies in 2013, as Bernanke was coming close to finishing his run at the Fed. </p> <p><span style="text-decoration: underline;"><strong>In a statement on Thursday</strong></span>,</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Griffin said that <strong><em>Bernanke “has extraordinary knowledge of the global economy and his insights on monetary policy and the capital markets will be extremely valuable to our team and to our investors.”</em></strong></p> </blockquote> <p><span style="text-decoration: underline;"><strong>But two years ago - he was not so sure</strong></span>...</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Here are some of Griffin’s criticisms of Federal Reserve policy during the Bernanke years.</p> <p>&nbsp;</p> <p><span style="text-decoration: underline;"><strong>To The Economic Club of Chicago, May 2013:</strong></span></p> <p>&nbsp;</p> <p>“I think <strong>QE3 is a terrible idea because we are now reaching the point where the Fed is becoming captive to our political institutions</strong>. You see with the Fed owning several trillion dollars of U.S. Treasuries it’s easy to imagine that at the next confirmation hearing the questions posed by politicians will be of the nature, <strong>will you continue to help subsidize the cost of the U.S. federal government’s borrowings even at the ensuing risk of potentially creating uncontrollable inflation</strong>? That last part won’t be asked but that will be the risk. And I think there will be real pressure on picking people to the Federal Reserve board who will appease our politicians and continue to try to <strong>drive interest rates to an artificially low level, very worried about that, very worried about that</strong>.”</p> <p>&nbsp;</p> <p><span style="text-decoration: underline;"><strong>To The Milken Institute Conference, April 2013:</strong></span></p> <p>&nbsp;</p> <p>“The Federal Reserve is really trying to counteract a number of the very poor policies that are coming from our legislative and executive branches and it’s damn near impossible to overcome the headwinds created by Obamacare, an inability to reform tax policy, inability to thoughtfully create jobs in our country and <strong>the Fed’s policies are doing two things that I am very gravely concerned about</strong>. Number one is we have all learned over the years that <strong>if you reduce the cost of capital you increase your use of fixed assets and you take out jobs</strong>. Corporate America seeing an ever increasing cost for its employee base and extraordinary low interest rates is <strong>taking every step they can possibly take to reduce employment</strong>, to build factories abroad and domestically to substitute technology and automated processes for people. So <strong>one of the very sad negative characteristics of the Fed’s policies is it’s leading to job destruction</strong>.”</p> </blockquote> <p>*&nbsp; *&nbsp; *<br />This 'flip-flopping' though, is understandable - the only 'edge' any fund has anymore is an inside line on monetary policy headlines and actions and the fee generation from running the Fed's trades likely came with some quid pro quo...</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="1067" height="582" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20150418_bernanke.jpg?1429382180" /> </div> </div> </div> http://www.zerohedge.com/news/2015-04-18/what-bernankes-new-employer-had-say-about-him-just-2-years-ago#comments Ben Bernanke Ben Bernanke Capital Markets Citadel Citigroup Corporate America Federal Reserve fixed Global Economy Goldman Sachs goldman sachs headlines Ken Griffin Monetary Policy Obamacare Private Equity Sun, 19 Apr 2015 01:10:44 +0000 Tyler Durden 504986 at http://www.zerohedge.com Did Presidential Candidate, Marco Rubio, Make A Deal With The Devil? http://www.zerohedge.com/news/2015-04-18/did-presidential-candidate-marco-rubio-make-deal-devil <p><a href="http://www.firstrebuttal.com/2015/04/16/presidential-candidate-marco-rubio-makes-a-deal-with-the-devil/"><em>Submitted by Thad Beversdorf via FirstRebuttal.com</em></a>,</p> <p><a href="http://www.firstrebuttal.com/wp-content/uploads/2015/04/Screen-Shot-2015-04-16-at-12.32.35-PM.png"><img alt="Screen Shot 2015-04-16 at 12.32.35 PM" class="alignnone size-full wp-image-1762" src="http://www.firstrebuttal.com/wp-content/uploads/2015/04/Screen-Shot-2015-04-16-at-12.32.35-PM.png" style="width: 600px; height: 230px;" /></a></p> <p><strong>Is mainstream&nbsp;media really going to ignore&nbsp;that Marco Rubio&rsquo;s campaign is named after the late 1990&prime;s think tank called a &lsquo;Project for a New American Century&rsquo; (PNAC), founded by Head Neocon &ndash; Bill Kristol? &nbsp;</strong>And this is no coincidence. &nbsp;Guess who&rsquo;s doing the Sunday talk show circuit&nbsp;campaigning for a Rubio presidency? &nbsp;You know it&hellip;</p> <p><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/ytqAN48f2ss" width="560"></iframe></p> <p>&nbsp;</p> <p><strong>Now as a reminder the PNAC is a&nbsp;lobby group formed&nbsp;by a host of neocons at the end of the 1990&prime;s&nbsp;with an objective of war in the Middle East. </strong>&nbsp;See if you recognize a few of the notable names of people that signed the PNAC&rsquo;s founding statement of principles; Dick Cheney, Donald Rumsfeld, Ron Perle and Paul Wolfowitz. &nbsp;You&rsquo;ll note these guys became Vice President, Secretary of Defense, Chairman of the Defense Policy Board and Deputy Secretary of Defense, respectively, under president Bush about six months before&nbsp;9/11.</p> <p><strong>Have a look at the following recommendations from the Project for a New American Century&rsquo;s&nbsp;apex report sent to President Clinton in September of 2000. </strong>&nbsp;One year exactly before the 9/11 tragedy that became&nbsp;the sales pitch&nbsp;for an unendable war on terror similar to&nbsp;Reagan&rsquo;s war on drugs some 35 years ago, both&nbsp;still going strong with no signs of slowing. The&nbsp;report titled &ldquo;<a href="http://www.informationclearinghouse.info/pdf/RebuildingAmericasDefenses.pdf" target="_blank">Rebuilding America&rsquo;s Defenses</a>&rdquo; recommends that while the world was in the longest sustained period of global peace (acknowledged in the report) that America should establish four key objectives as it headed&nbsp;into the new century. &nbsp;Pay particular attention to the second &lsquo;core mission&rsquo; in the following excerpt from the report.</p> <p><a href="http://www.firstrebuttal.com/wp-content/uploads/2015/01/Screen-Shot-2015-01-08-at-2.49.08-PM.png"><img alt="Screen Shot 2015-01-08 at 2.49.08 PM" class="alignnone size-full wp-image-1443" src="http://www.firstrebuttal.com/wp-content/uploads/2015/01/Screen-Shot-2015-01-08-at-2.49.08-PM.png" style="width: 600px; height: 395px;" /></a></p> <p><u><strong>Funny thing about these four core missions is that each and everyone of them came to fruition. </strong></u>&nbsp;Not surprising given the authors became the senior military policy makers about 6 months&nbsp;after the recommendations were sent to outgoing President Clinton. &nbsp;Now there is more than meets the eye to all of this and I won&rsquo;t get into the details&nbsp;here but for those interested, if you want to understand the very ugly truth about how and why America is in the midst of a seemingly endless war on &lsquo;terror&rsquo; in the Middle East have a read of an article I wrote some time ago called &ldquo;<a href="http://www.paulcraigroberts.org/2014/12/08/essential-lesson-history-one-wants-admit/" target="_blank">The Most Essential Lessons of History that No One Wants to Admit</a>&ldquo;.</p> <p><strong>You will realize that our boy Bill Kristol is just the face of an immense amount of money and political persuasion. </strong>&nbsp;Money talks and our government is for sale. &nbsp;Just ask Marco Rubio what the going rate for naming rights is on a presidential campaign these days. &nbsp;The power and money that Kristol represents do&nbsp;not provide their support without expectations. &nbsp;These thugs absolutely want their return on capital. &nbsp;The returns come by way of a currency only a President carries.</p> <p>Anyone not interested in WWIII should be very wary of a Rubio presidency. &nbsp;<strong>Marco Rubio&rsquo;s financial backing will absolutely guarantee a&nbsp;war with Russia and a war with Russia means a war with China for it&nbsp;must protect its future energy supplies. </strong>&nbsp;Bill Kristol and his band of armchair warriors have been lobbying for a war with Russia since at least as far back as 2004 as evidenced in the following letter to group of European heads of state.</p> <p><a href="http://www.firstrebuttal.com/wp-content/uploads/2014/12/Screen-Shot-2014-12-06-at-5.02.58-PM.png"><img alt="Screen Shot 2014-12-06 at 5.02.58 PM" class="alignnone size-full wp-image-1142" src="http://www.firstrebuttal.com/wp-content/uploads/2014/12/Screen-Shot-2014-12-06-at-5.02.58-PM.png" style="width: 600px; height: 623px;" /></a></p> <p>&nbsp;</p> <p><strong>The letter really depicts the kind of rhetoric used by these neocons. </strong>&nbsp;You can see from the list of names supporting this effort at the end of the <a href="http://www.aei.org/publication/an-open-letter/" target="_blank">full letter</a>, these neocons are the very same neocons recommending the US start a series of arbitrary wars in the name of peace via the Project for a New American Century, as noted above. &nbsp;Now they lack any substantive facts in their letter and so use&nbsp;implications and conjecture about Russia being a dictatorship, which is no more true, and probably less, than it is for&nbsp;the US meaning we are throwing stones in glass houses. &nbsp;President Bush and Obama remember have signed several executive orders, such as the AUMF and NDAA that negate an American citizen&rsquo;s&nbsp;constitutional rights.</p> <p>The best evidence that indeed Americans&rsquo; constitutional rights to things like Habeas Corpus are&nbsp;negated under the combined executive orders of AUMF and NDAA is depicted in the United States Court of Appeals Second Circuit&nbsp;<a href="http://www.scribd.com/doc/154380761/UNITED-STATES-COURT-OF-APPEALS-FOR-THE-SECOND-CIRCUIT-NDAA-July-167-2013" target="_blank">District Judge, Lewis Kaplan&rsquo;s ruling statement</a>. &nbsp;He explains their plurality decision was a compromise that gives authority to suspend a citizen&rsquo;s constitutional rights but only until the respective &lsquo;war&rsquo;, is over. &nbsp;However this is not a compromise at all. <strong>&nbsp;When the &lsquo;war&rsquo; is a war on terror it is not only&nbsp;indefinite but&nbsp;infinite for when would we ever suggest we are no longer fighting against terrorism. </strong>&nbsp;So while the District court&rsquo;s ruling suggests that it limits the negation of a citizen&rsquo;s constitutional rights, for all intents and purposes it limits the negation to a duration of forever, which is by definition not a limitation.</p> <p>But as I so often do I digress. &nbsp;<u><strong>My point is that Bill Kristol and his armchair warriors have been lobbying for a war with Russia in the very same way they lobbied for &ldquo;multiple simultaneous major theater wars&rdquo;, which they got in the Middle East. &nbsp;One can only conclude then that given a Rubio presidency, war with Russia is all but guaranteed.</strong></u></p> <p>One of Kristol&rsquo;s armchair warriors is the one and only Victoria Nuland, wife of a Kagan boy, he himself a general in the armchair army. &nbsp;Note that Nuland was the conductor of the coup d&rsquo;etat in Ukraine as evidenced in a&nbsp;<a href="http://www.bbc.com/news/world-europe-26079957" target="_blank">recording</a> of a conversation between her and a fellow&nbsp;US diplomat discussing who they were going to place as head of state in Ukraine. &nbsp;Now the recording begs two questions. &nbsp;What gives US diplomats&nbsp;the right to decide the head of state for a foreign &lsquo;democratic&rsquo; nation? &nbsp;And perhaps more&nbsp;interesting, how did Nuland know that there would be an opening for head of state in Ukraine given&nbsp;the recorded conversation took place prior to the coup d&rsquo;etat and so prior to any rational notion that&nbsp;a replacement would be needed? &nbsp;Unless of course Nuland was aware that there would soon be an opening for the role of President of Ukraine.</p> <p><strong>Anyone that&nbsp;still believes the US is not the most corrupt government in the world is simply in denial.</strong> &nbsp;All the facts are there and to discount them is to deny them. &nbsp;I&rsquo;m going to leave you with perhaps the best interview I&rsquo;ve ever seen with Bill Kristol by a character&nbsp;we can all appreciate. &nbsp;Enjoy&nbsp;it but don&rsquo;t miss&nbsp;the message. &nbsp;Kristol is nothing but a muppet, however, the men behind Kristol are extremely dangerous and men who work in political shadows to&nbsp;get what they want by purchasing and threatening the careers of American legislators. &nbsp;These men who work in the shadows are just the&nbsp;current members of the same&nbsp;group that forced Woodrow Wilson to approve the Central Banking Act against his better judgment in 1913 and 30 years later forced Harry Truman to support taking land from the Palestinians and calling it Israel against his better judgement. &nbsp;<strong>Ample evidence shows that both took those personally regretful actions under extreme political duress by a group we now call the neocons.</strong></p> <p><strong><em><u>Rubio has essentially made a deal with the devil. </u></em></strong>&nbsp;He has accepted the help of perhaps the most powerful political force in Washington but it will cost him a Presidential executive order to initiate military aggression against&nbsp;Russia. &nbsp;<u><em>If we allow this to play out the blood&nbsp;of so many more young Americans and other young men and women around the world will be on the hands of we the people for again failing to uphold our duties as Americans, a self governed people, rather than&nbsp;as subservient fools.</em></u></p> <p>&nbsp;</p> <p><iframe frameborder="0" height="288" src="http://media.mtvnservices.com/embed/mgid:arc:video:colbertnation.com:9caacbfe-ed00-11e0-aca6-0026b9414f30" width="512"></iframe></p> http://www.zerohedge.com/news/2015-04-18/did-presidential-candidate-marco-rubio-make-deal-devil#comments China Israel Middle East Neocons New Century Ukraine Sun, 19 Apr 2015 00:35:26 +0000 Tyler Durden 504983 at http://www.zerohedge.com "More Than Half Of All Global Government Bonds Are Yielding 1% Or Less" http://www.zerohedge.com/news/2015-04-18/more-half-all-global-government-bonds-are-yielding-1-or-less <p>Earlier today, we were quite shocked when we heard two statements by central bankers uttered during a press briefing in Washington. The first comes from the ECB's Mario Draghi:</p> <ul> <li>DRAGHI: LOW RATES FOR LONG PERIOD INCREASE FINANCIAL STABILITY RISKS</li> </ul> <p>The second: from his supposed nemesis, if only for public consumption and not during the BIS' bimonthly meetings in Basel, Bundesbank head Jens Weidmann, who said a carbon copy replica of what Draghi had said minutes prior:</p> <ul> <li>WEIDMANN SAYS LOW INTEREST RATES INCREASE FIN STABILITY RISKS</li> </ul> <p>We were "shocked" because for once, we agree with central bankers. And to get a sense of just how right the two central bank heads are we go to Bank of America which overnight released a report in which it said that as of this moment, "<span style="text-decoration: underline;"><strong>53% of all global government bonds are yielding 1% or less</strong></span> (Chart 3)."</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/04/10%20Year.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/04/10%20Year_0.jpg" width="600" height="332" /></a></p> <p>Let that sink in for a second.</p> <p>And while you are contemplating that, here is another fact from Bank of America: </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The global narrative remains maximum liquidity (Chart 2) &amp; minimal interest rates. And it’s impossible to be max bearish with such an extravagant monetary backdrop.</p> <p>&nbsp;</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/04/maximum%20liquidity_0.jpg" width="600" height="342" /></p> <p>&nbsp;</p> <p><span style="text-decoration: underline;"><strong>Central bank assets now exceed $22 trillion, a figure equivalent to the combined GDP of US &amp; Japan</strong></span></p> </blockquote> <p>So yes, low rates for a long period of time most certainly "increase financial stability risks" - the central planners are certainly correct about that. But next time they make that remark, perhaps someone from the media can ask Messrs Draghi or Weidmann the following question: </p> <p><strong>does the fact that central banks now collectively own nearly a third of global GDP in government bonds and equivalent assets - an amount that is greater than the GDP of first and third largest global economies, have anything to do with "low rates" and the fact that "financial stability risks" as of this moment have never been higher?</strong></p> <p>Oh, and good luck with that "renormalization."</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="793" height="439" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/10%20Year_0.jpg?1429391980" /> </div> </div> </div> http://www.zerohedge.com/news/2015-04-18/more-half-all-global-government-bonds-are-yielding-1-or-less#comments Bank of America Bank of America Central Banks Japan Sun, 19 Apr 2015 00:01:09 +0000 Tyler Durden 504990 at http://www.zerohedge.com Why The Record Drop In Chinese House Prices Suggests Beijing Is Already In A Recession http://www.zerohedge.com/news/2015-04-18/why-record-drop-chinese-house-prices-suggests-beijing-already-recession <p>Another month, and another confirmation that China's hard landing is if not here, then likely mere months away. </p> <p>Overnight, the NBS reported that in March, Chinese house prices dropped in 69 of 70 cities compared to a year ago. According to Goldman's seasonal adjustments, in March home prices dropped another 0.5% from February, the same as the prior month's decline, suggesting that the <a href="http://www.zerohedge.com/news/2015-02-28/china-cuts-interest-rates-takes-number-central-banks-easing-2015-21">February 28 rate cut </a>hasn't done much to boost housing spirits. </p> <p>However, it is the annual data that truly stands out, because with a drop of 6.1% this was the biggest drop in Chinese house prices in history.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/04/20150418_china2.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/04/20150418_china2_0.jpg" width="600" height="341" /></a></p> <p>&nbsp;</p> <p>To be sure, the PBOC is now scrambling to halt what, unless it is stopped, will become a full-blown hard landing in months, if it isn't already. As a result, as shown in the chart below it has recently engaged in several easing steps, with many more to come according to the sell-side consensus. So far these have failed to stimulate the overall economy, which continues to be pressured by a deflation-importing world, but have certainly lead to a massive surge in the Chinese stock market.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/04/china%20easing%20history.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/04/china%20easing%20history_0.jpg" width="600" height="364" /></a></p> <p>&nbsp;</p> <p>Incidentally, the ongoing collapse in Chinese home prices is precisely why the PBOC and the Politburo have both done everything in their power to substitute the burst housing bubble with another: that of stocks, by pushing everyone (<a href="http://www.zerohedge.com/news/2015-03-27/dumb-money-30-new-equity-investors-china-have-elementary-education-or-less-bloomberg">even the illiterates</a>) to invest as much as possible in the stock market, leading to the biggest and fastest liquidity and <a href="http://www.zerohedge.com/news/2015-03-26/aint-no-margin-debt-margin-debt">margin debt-driven </a>bubble in history.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/03/Margin%20Debt.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/03/Margin%20Debt_0.jpg" width="600" height="417" /></a></p> <p>...one which has left <a href="http://www.zerohedge.com/news/2015-03-26/chinas-stock-bubble-leaves-bnp-speechless-what-happens-next-unknown-unknown">BNP "speechless.</a>"</p> <p>Unfortunately for China, as we have shown before, all Chinese attempts to do what every self-respecting Keynesian would do, i.e., replace one bubble with another, are doomed to fail for the simple reason that unlike in the US, where the bulk of assets are in financial form, in China 75% of all <a href="http://www.zerohedge.com/news/2014-07-29/why-china-couldnt-care-less-about-its-stock-market">household wealth is in real estate</a>. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/China%20vs%20US%20Real%20Estate.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/China%20vs%20US%20Real%20Estate_0.jpg" width="600" height="453" /></a></p> <p>&nbsp;</p> <p>And this is where things get scarier, because <strong>if one compares the history of the Chinese and US housing bubbles, one observes that it was when US housing had dropped by about 6% following their all time highs in November 2005, that the US entered a recession. </strong></p> <p>This is precisely where China is now: a 6.1% drop following the all time high peak in January of 2014. If the last US recession is any indication, the Chinese economy is now contracting!</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/04/China%20vs%20US%20housing%20history.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/04/China%20vs%20US%20housing%20history_0.jpg" width="600" height="313" /></a></p> <p>&nbsp;</p> <p>So much for hopes of 7% GDP growth this year.</p> <p>The good news, if any, is that Chinese home prices have another 12% to drop before China, which may or may not be in a recession, suffer the US equivalent of the Lehman bankruptcy.</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="501" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/China%20vs%20US%20housing%20history.jpg?1429382024" /> </div> </div> </div> http://www.zerohedge.com/news/2015-04-18/why-record-drop-chinese-house-prices-suggests-beijing-already-recession#comments China Fail Housing Bubble Lehman Real estate Recession Sat, 18 Apr 2015 23:24:36 +0000 Tyler Durden 504985 at http://www.zerohedge.com The Global Liquidity Squeeze Has Begun http://www.zerohedge.com/news/2015-04-18/global-liquidity-squeeze-has-begun <p><a href="http://theeconomiccollapseblog.com/archives/the-global-liquidity-squeeze-has-begun"><em>Submitted by Michael Snyder via The Economic Collapse blog</em></a>,</p> <p>Get ready for another major worldwide credit crunch.<strong>&nbsp; Today, the entire global financial system resembles a colossal spiral of debt.</strong>&nbsp; Just about all economic activity involves the flow of credit in some way, and so the only way to have &ldquo;economic growth&rdquo; is to introduce even more debt into the system.&nbsp; When the system started to fail back in 2008, global authorities responded by pumping this debt spiral back up and getting it to spin even faster than ever.&nbsp; If you can believe it, the total amount of global debt has risen by <a href="http://www.zerohedge.com/news/2015-04-17/were-all-frogs-boiling-water-santelli-says-after-lacy-hunt-warns-far-over" target="_blank" title="$35 trillion">$35 trillion</a> since the last crisis.&nbsp; <strong>Unfortunately, any system based on debt is going to break down eventually, and there are signs that it is starting to happen once again.</strong></p> <p>For example, just a few days ago the IMF warned regulators to prepare for a global &ldquo;<a href="http://www.telegraph.co.uk/finance/economics/11538509/IMF-tells-regulators-to-brace-for-global-liquidity-shock.html" target="_blank" title="liquidity shock">liquidity shock</a>&ldquo;.&nbsp; <strong><em>And on Friday, Chinese authorities announced a ban on certain types of financing for margin trades on over-the-counter stocks, and we learned that preparations are being made behind the scenes in Europe for a Greek debt default and a Greek exit from the eurozone.&nbsp; On top of everything else, we just witnessed the biggest spike in credit application rejections <a href="http://www.gordontlong.com/Articles/art-2015-04-A-Macro_Insights-Shutting_Down_Lending.htm" target="_blank" title="ever recorded">ever recorded</a> in the United States.&nbsp; All of these are signs that credit conditions are tightening, and once a &ldquo;liquidity squeeze&rdquo; begins, it can create a lot of fear.</em></strong></p> <p>Over the past six months, the Chinese stock market has exploded upward even as the overall Chinese economy <a href="http://theeconomiccollapseblog.com/archives/huge-trouble-is-percolating-just-under-the-surface-of-the-global-economy" title="has started to slow down">has started to slow down</a>.&nbsp; Investors have been using something called &ldquo;umbrella trusts&rdquo; to finance a lot of these stock purchases, and these umbrella trusts have given them the ability to have much more leverage than normal brokerage financing would allow.&nbsp; This works great as long as stocks go up.&nbsp; Once they start going down, the losses can be absolutely staggering.</p> <p>That is why Chinese authorities are stepping in before this bubble gets even worse.&nbsp; Here is more about what has been going on in China&nbsp;<a href="http://www.bloomberg.com/news/articles/2015-04-17/china-futures-tumble-on-trust-curbs-expansion-of-short-selling" target="_blank" title="from Bloomberg">from Bloomberg</a>&hellip;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>China&rsquo;s trusts boosted their investments in equities by 28 percent to 552 billion yuan ($89.1 billion) in the fourth quarter. The higher leverage allowed by the products exposes individuals to larger losses in the event of stock-market drops, which can be exaggerated as investors scramble to repay debt during a selloff.</p> <p>&nbsp;</p> <p>In umbrella trusts, private investors take up the junior tranche, while cash from trusts and banks&rsquo; wealth-management products form the senior tranches. The latter receive fixed returns while the former take the rest, so private investors are effectively borrowing from trusts and banks.</p> <p>&nbsp;</p> <p>Margin debt on the Shanghai Stock Exchange climbed to a record 1.16 trillion yuan on Thursday. In a margin trade, investors use their own money for just a portion of their stock purchase, borrowing the rest. The loans are backed by the investors&rsquo; equity holdings, meaning that they may be compelled to sell when prices fall to repay their debt.</p> </blockquote> <p>Overall, China has seen more debt growth than any other major industrialized nation since the last recession.&nbsp; This debt growth has been so dramatic that it has gotten the attention of authorities&nbsp;<a href="http://www.economicpolicyjournal.com/2015/04/germanys-finance-minister-warns-about.html" target="_blank" title="all over the planet">all over the planet</a>&hellip;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>Wolfgang Schaeuble, Germany&rsquo;s finance minister says that &ldquo;debt levels in the global economy continue to give cause for concern.&rdquo;</p> <p>&nbsp;</p> <p>Singling out China in particular, Schaeuble noted that &ldquo;debt has nearly quadrupled since 2007&Prime;, adding that it&rsquo;s &ldquo;growth appears to be built on debt, driven by a real estate boom and shadow banks.&rdquo;</p> <p>&nbsp;</p> <p>According to McKinsey&rsquo;s research, total outstanding debt in China increased from $US7.4 trillion in 2007 to $US28.2 trillion in 2014. That figure, expressed as a percentage of GDP, equates to 282% of total output, higher than the likes of other G20 nations such as the US, Canada, Germany, South Korea and Australia.</p> </blockquote> <p>This credit boom in China has been one of the primary engines for &ldquo;global growth&rdquo; in recent years, but now conditions are changing.&nbsp; Eventually, the impact of what is going on in China right now is going to be felt all over the planet.</p> <p>Over in Europe, the Greek debt crisis is finally coming to a breaking point.&nbsp; For years, authorities have continued to kick the can down the road and have continued to lend Greece even more money.</p> <p>But now it appears that patience with Greece has run out.</p> <p>For instance, the head of the IMF says that&nbsp;<a href="http://www.usatoday.com/story/money/business/2015/04/17/delamaide-first-take-greek-posturing/25940857/" target="_blank" title="no delay will be allowed">no delay will be allowed</a> on the repayment of IMF loans that are due next month&hellip;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>IMF Managing Director Christine Lagarde roiled currency and bond markets on Thursday as reports came out of her opening press conference saying that she had denied any payment delay to Greece on IMF loans falling due next month.</p> <p>Unless Greece concludes its negotiations for a further round of bailout money from the European Union, however, it is not likely to have the money to repay the IMF.</p> </blockquote> <p>And we are getting reports that things are happening behind the scenes in Europe to prepare for the inevitable moment when Greece will finally leave the euro and go back to their own currency.</p> <p>For example, consider what Art Cashin&nbsp;<a href="http://www.cnbc.com/id/102597419" target="_blank" title="told CNBC on Friday">told CNBC on Friday</a>&hellip;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>First, &ldquo;there were reports in the media [saying] that the ECB and/or banking authorities suggested to banks <strong>to get rid of any sovereign Greek debt they had, which suggests that maybe the next step will be Greece exiting</strong>,&rdquo; Cashin told CNBC.</p> </blockquote> <p>Also, one of Greece&rsquo;s largest newspapers is reporting that neighboring countries are forcing subsidiaries of Greek banks that operate inside their borders to reduce their risk to a Greek debt default&nbsp;<a href="http://www.businessinsider.com/global-market-update-april-17-2015-4" target="_blank" title="to zero">to zero</a>&hellip;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><a href="http://www.businessinsider.com/opening-bell-april-17-2015-2015-4" target="_blank" title="According to a report from Kathimerini">According to a report from Kathimerini</a>, one of Greece&rsquo;s largest newspapers, central banks in Albania, Bulgaria, Cyprus, Romania, Serbia, Turkey and the Former Yugoslav Republic of Macedonia have all forced the subsidiaries of Greek banks operating in those countries to bring their exposure to Greek risk &mdash; including bonds, treasury bills, deposits to Greek banks, and loans &mdash; down to zero.</p> </blockquote> <p>Once Greece leaves the euro, that is going to create a tremendous credit crunch in Europe as fear begins to spread like wildfire.&nbsp; Everyone will be wondering which nation will be &ldquo;the next Greece&rdquo;, and investors will want to pull their money out of perceived danger zones before they get hammered.</p> <p>In the past, other European nations have been willing to bend over backwards to accommodate Greece and avoid this kind of mess, but those days appear to be finished.&nbsp; In fact, the finance minister of France openly admits that the French&nbsp;<a href="http://www.usatoday.com/story/money/markets/2015/04/17/euro-zone-reaction-to-greece/25934135/" target="_blank" title="“are not sympathetic to Greece”">&ldquo;are not sympathetic to Greece&rdquo;</a>&hellip;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>Greece isn&rsquo;t winning much sympathy from its debt-wracked European counterparts as the country draws closer to default for failing to make bailout repayments.</p> <p>&ldquo;We are not sympathetic to Greece,&rdquo; French Finance Minister Michael Sapin said in an interview at the International Monetary Fund-World Bank spring meetings here.</p> <p>&ldquo;We are demanding because Greece must comply with the European (rules) that apply to all countries,&rdquo; Sapin said.</p> </blockquote> <p>Yes, it is possible that another short-term deal could be reached which could kick the can down the road for a few more months.</p> <p>But either way, things in Europe are going to continue to get worse.</p> <p>Meanwhile, very disappointing earnings reports in the U.S. are starting to really rattle investors.</p> <p>For example, we just learned that GE lost&nbsp;<a href="http://www.usatoday.com/story/money/2015/04/17/ge-posts-firstquarter-loss-of-136-billion/25925283/" target="_blank" title="13.6 billion dollars">13.6 billion dollars</a> in the first quarter&hellip;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>One week following the announcement that it would dismantle most of its GE Capital financing operations to instead focus on its industrial roots, General Electric reported a first quarter loss of $13.6 billion.</p> <p>&nbsp;</p> <p>The results were impacted by charges relating to the conglomerate&rsquo;s strategic shift. A year ago GE reported a first quarter profit of $3 billion.</p> </blockquote> <p>That is a lot of money.</p> <p>How in the world does a company lose 13.6 billion dollars in a single quarter during an &ldquo;economic recovery&rdquo;?</p> <p>Other big firms&nbsp;<a href="http://www.wsj.com/articles/u-s-stock-futures-fall-along-with-european-markets-1429273588" target="_blank" title="are reporting disappointing earnings numbers too">are reporting disappointing earnings numbers too</a>&hellip;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>In earnings news, American Express Co. late Thursday said its results were hurt by the strong U.S. dollar, which reduced revenue booked in other countries. Chief Executive Kenneth Chenault reiterated the company&rsquo;s forecast that 2015 earnings will be flat to modestly down year over year. Shares fell 4.6%.</p> <p>&nbsp;</p> <p>Advanced Micro Devices Inc. said its first-quarter loss widened as revenue slumped. The company said it was exiting its dense server systems business, effective immediately. Revenue and the loss excluding items missed expectations, pushing shares down 13%.</p> </blockquote> <p>And just like we saw just before the financial crisis of 2008, Americans are increasingly having difficulty meeting their financial obligations.</p> <p>For instance, the delinquency rate on student loans&nbsp;<a href="http://thecrux.com/the-growing-debt-crisis-you-havent-heard-about/" target="_blank" title="has reached a very frightening level">has reached a very frightening level</a>&hellip;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>More borrowers are failing to make payments on their student loans five years after leaving college, painting a grim picture for borrowers, according to the Federal Reserve Bank of New York.</p> <p>&nbsp;</p> <p>Student debt continues to increase, especially for people who took out loans years ago. Those who left school in the Great Recession, which ended in 2009, had particular difficulty with repayment, with many defaulting, becoming seriously delinquent or not being able to reduce their balances, the New York Fed said today.</p> <p>&nbsp;</p> <p>Only 37 percent of borrowers are current on their loans and are actively paying them down, and 17 percent are in default or in delinquency.</p> </blockquote> <p>At this point, the American consumer is pretty well tapped out.&nbsp; If you can believe it, <a href="http://www.washingtonpost.com/news/get-there/wp/2015/01/29/the-majority-of-consumers-have-subprime-credit-scores-report-says/" target="_blank" title="56 percent">56 percent</a> of all Americans have subprime credit today, and as I mentioned above, we just witnessed the biggest spike in credit application rejections <a href="http://www.gordontlong.com/Articles/art-2015-04-A-Macro_Insights-Shutting_Down_Lending.htm" target="_blank" title="ever recorded">ever recorded</a>.</p> <p>We have reached a point of debt saturation, and the credit crunch that is going to follow is going to be extremely painful.</p> <p>Of course the biggest provider of global liquidity in recent years has been the Federal Reserve.&nbsp; But with the Fed pulling back on QE, this is creating some tremendous challenges all over the globe.&nbsp; The following is an excerpt from a recent article&nbsp;<a href="http://www.telegraph.co.uk/finance/economics/11535849/IMF-fears-cascade-of-woes-as-Fed-crunch-nears.html" target="_blank" title="in the Telegraph">in the Telegraph</a>&hellip;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>The big worry is what will happen to Russia, Brazil and developing economies in Asia that borrowed most heavily in dollars when the Fed was still flooding the world with cheap liquidity. Emerging markets account to roughly half of the $9 trillion of offshore dollar debt outside US jurisdiction.</p> <p>&nbsp;</p> <p>The IMF warned that a big chunk of the debt owed by companies is in the non-tradeable sector. These firms lack &ldquo;natural revenue hedges&rdquo; that can shield them against a double blow from rising borrowing costs and a further surge in the dollar.</p> </blockquote> <p>So what is the bottom line to all of this?</p> <p><strong>The bottom line is that we are starting to see the early phases of a liquidity squeeze.</strong></p> <p>The flow of credit is going to begin to get tighter, and that means that global economic activity is going to slow down.</p> <p>This happened during the last financial crisis, and during this next financial crisis the credit crunch is going to be even worse.</p> <p><u><strong>This is why it is so important to have an emergency fund.&nbsp;</strong></u> During this type of crisis, you may have to be the source of your own liquidity.&nbsp; At a time when it seems like nobody has any cash, those that do have some will be way ahead of the game.</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="324" height="302" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20150418_squeeze.jpg?1429379877" /> </div> </div> </div> http://www.zerohedge.com/news/2015-04-18/global-liquidity-squeeze-has-begun#comments American Express Art Cashin Australia Bank of New York Bond Borrowing Costs Brazil Bulgaria Central Banks China Credit Conditions default European Union Eurozone Fail Federal Reserve Federal Reserve Bank Federal Reserve Bank of New York fixed France GE Capital General Electric Germany Global Economy Greece McKinsey New York Fed Real estate Recession recovery Romania Student Loans Turkey Yuan Sat, 18 Apr 2015 22:50:48 +0000 Tyler Durden 504982 at http://www.zerohedge.com The World Has Gone M.A.D. http://www.zerohedge.com/news/2015-04-18/world-has-gone-mad <p>A game you can't win?</p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2015/04/20150418_nukes.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2015/04/20150418_nukes_0.jpg" width="600" height="409" /></a></p> <p>&nbsp;</p> <p><a href="http://news.investors.com/photopopup.aspx?id=748432"><em>Source: Investors.com</em></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="870" height="593" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20150418_nukes.jpg?1429378035" /> </div> </div> </div> http://www.zerohedge.com/news/2015-04-18/world-has-gone-mad#comments Sat, 18 Apr 2015 22:15:23 +0000 Tyler Durden 504981 at http://www.zerohedge.com Caught On Tape: National Guard Troops Patrol California City, Conduct New Jersey "Homeland Response Drill" http://www.zerohedge.com/news/2015-04-18/caught-tape-national-guard-troops-patrol-california-city-conduct-new-jersey-homeland <p>Late last week, when <a href="http://www.zerohedge.com/news/2015-04-16/signs-elites-are-feverishly-preparing-something-big">we covered </a>the various signs that "something big" may be coming, we discussed the one "<em>exercise that people have really been buzzing about"</em> - operation "Jade Helm", an “unconventional warfare exercise” during which the states Texas and Utah will be designated as hostile territory.</p> <p>As <a href="http://www.zerohedge.com/news/2015-04-16/signs-elites-are-feverishly-preparing-something-big">previously profiled</a>, "Jade Helm is a challenging eight-week joint military and Interagency (IA) Unconventional Warfare (UW) exercise conducted throughout Texas, New Mexico, Arizona, California, Nevada, Utah and Colorado,” according to an unclassified military document announcing the training drill, which runs from July 15 through September 15.</p> <p>Multiple branches of the US military, including Green Berets, Navy Seals, and the 82nd Airborne Division, will participate in the 8-week long exercise, which may result in “increased aircraft in the area at night.”</p> <p>Troops will be tasked with honing advanced skills in “large areas of undeveloped land with low population densities,” and will work alongside “civilians to gain their trust and an understanding of the issues.”</p> <p>The exercise, in which some participants will be “wearing civilian clothes and driving civilian vehicles,” lists Texas and Utah as “hostile" territory.</p> <p>The proposed theater of operations of Operation Jade Helm is shown on the map below:</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/04/Operation%20Jade%20Helm.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/04/Operation%20Jade%20Helm.jpg" width="562" height="433" /></a></p> <p>&nbsp;</p> <p>So while there are still three months until Jade Helm officially opens, various documented reports of substantial national guard drills and troop exercises are starting to trickle in early. As <a href="http://www.infowars.com/video-armed-national-guard-troops-patrol-residential-streets-in-california/">Paul Joseph Watson notes</a>, the first documented proof of National Guard drills comes from Ontario, California where National Guard troops can be seen patrolling residential streets and practicing traffic control.</p> <p><iframe src="https://www.youtube.com/embed/Hj7efDgGRH0" width="560" height="315" frameborder="0"></iframe></p> <p>In the video troops, followed by a humvee, are seen marching close to an elementary school and single family homes.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>“I just watched it again and recognized the low block wall and the elementary school! It was right there where my sister and her husband live! OMG how frightening!” one YouTube commenter responded, while others insisted the patrols were a routine occurrence.</p> <p>&nbsp;</p> <p>However, another respondent insisted that the patrol was not normal.</p> <p>&nbsp;</p> <p>“During the last few seconds I got a quick glimpse of my sister and brother-in-laws house on Fuschia. Ave,” wrote the commenter.”That motorcycle was parked almost in front of their house. They told me they saw this procession going on from their front yard. They have lived in that house for 30 or so yrs and this is the first time they have seen this type of thing in their neighborhood. Might be a common thing to do their training someplace else but not in that area.”</p> </blockquote> <p>This is not the first such clip: a <a href="http://www.infowars.com/video-shows-troops-training-to-intern-citizens-in-fort-lauderdale/">disturbing video </a>out of Fort Lauderdale, Florida last month also showed military and law enforcement practicing the internment of citizens during martial-law style training.</p> <p>Meanwhile on the eastern US easboard, <a href="http://poststar.com/news/state-and-regional/nearly-troops-participate-in-homeland-response-drill/article_f7cd6dff-d68a-514b-a121-c4b22506643e.html">the PostStar </a>reports that nearly 600 Army and Air National Guard forces from New Jersey and New York "are preparing for the worst."</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>They are participating in a homeland response force drill at New Jersey's Joint Base McGuire-Dix-Lakehurst on Friday.</p> <p>&nbsp;</p> <p>The troops specialize in rescue, security, decontamination and medical treatment.</p> <p>&nbsp;</p> <p>The units will train to rapidly assess and identify a chemical, biological, radiological or nuclear incident.</p> </blockquote> <p>Of course, the bigger concern is that the real motive behind this major national guard exercise is not a focus on a "defensive" drill from an outside threat, but one dealing with a domestic threat.</p> <p>How is that possible, some would say? Could the national guard really be preparing for a confrontation with the US population?</p> <p>Unfortunately the answer is yes, as we reported last <a href="http://www.zerohedge.com/news/2014-08-19/under-what-conditions-can-us-army-engage-american-citizens-armys-civil-disturbances-">August in "Under What Conditions Can The US Army Engage Citizens: The Army's "Civil Disturbances" Primer</a>" which lays out not only when the US Army (and national guard) can engage the US population, but lays out clearly the protocol under which the US army is specifically permitted to engage in "PSYOPs" against the US population.</p> <p>Here are the salient points, as <a href="http://www.zerohedge.com/news/2014-08-19/under-what-conditions-can-us-army-engage-american-citizens-armys-civil-disturbances-">reported previously, from the </a>primer which begins with the umbrella statement:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Civil unrest may range from simple, nonviolent protests that address specific issues, to events that turn into full-scale riots. Gathering in protest may be a recognized right of any person or group, regardless of where U.S. forces may be operating. In the United States, this fundamental right is protected under the Constitution of the United States...</p> </blockquote> <p>"Protected" it may be, but as usual, the interpretation of the Constitution is in the eye of the beholder, or more appropriately, <em>gun holder</em>. Because shortly thereafter we further read the following:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The Constitution of the United States, laws, regulations, policies, and other legal issues <strong>limit the use of federal military personnel in domestic support operations. </strong>Any Army involvement in civil disturbance operations involves many legal issues requiring comprehensive legal reviews. However, <strong>federal forces are authorized for use in civil disturbance operations under certain circumstances</strong>.</p> </blockquote> <p>What circumstances? For the answer we turn to section, 2-8. To wit:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The Constitution of the United States provides two exceptions for which the Posse Comitatus Act does not apply. These exceptions are based upon the inherent right of the U.S. government to ensure the preservation of public order and to carrying out governmental operations within its territorial limits by force, if necessary. These two exceptions are—</p> <ul> <li><strong>Emergency authority. </strong><em>A sudden and unexpected civil disturbance, disaster, or calamity may seriously endanger life and property and disrupt normal governmental functions to such an extent that local authorities cannot control the situation</em>. At such times, the federal government may use military force to prevent the loss of life or wanton destruction of property and to restore government functions and public order. In these circumstances, federal military commanders have the authority, in extraordinary emergency circumstances where prior authorization by the President is impossible and duly constituted local authorities are unable to control the situation, <em><span style="text-decoration: underline;">to engage temporarily in activities that are necessary to quell large-scale, unexpected civil disturbances </span></em>(see DODD 3025.18).</li> <li><strong>Protection of federal property and functions</strong>. When the need for the protection of federal property or federal functions exists, and duly constituted local authorities are unable to, or decline to provide adequate protection, federal action, including the use of military forces, is authorized.</li> </ul> <p>2-9. Laws passed by the U.S. congress include four exceptions to the Posse Comitatus Act. With the first three laws discussed below (10 USC 331–333) there is a prerequisite that the President must take personal action, including the issuance of a proclamation calling upon insurgents to disperse and retire peaceably within a limited time. The four exceptions, based on law are—</p> <ul> <li><strong>10 USC 331. </strong>When a state is unable to control domestic violence and they have requested federal assistance, the use of the militia or Armed Forces is authorized.</li> <li><strong>10 USC 332. </strong>When ordinary enforcement means are unworkable due to unlawful obstructions or rebellion against the authority of the United States, use of the militia or Armed Forces is authorized.</li> <li><strong>10 USC 333. </strong>When a state cannot or will not protect the constitutional rights of the citizens, due to domestic violence or conspiracy to hinder execution of State or Federal law, the use of the militia or Armed Forces is authorized.</li> <li><strong>House Joint Resolution 1292. </strong>This resolution directs all departments of the U.S. government, upon request of the Secret Service, to assist in carrying out its statutory duties to protect government officials and major political candidates from physical harm.</li> </ul> </blockquote> <p>In other words, if and when the US Armed Forces decide that rioting infringes upon any of these exclusions, then the constitution no longer applies and the use of lethal force becomes a viable option against US citizens.</p> <p>It gets worse, because whereas one would expect that a "Constitutional expert" such as the president, Barack Obama would be the one tasked with interpreting if and when the Constitution no longer applies, the primer is quite explicit in handing over responsibility to "federal military commanders":</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>... federal military commanders have the authority, in extraordinary emergency circumstances <strong>where prior authorization by the President is impossible and duly constituted local authorities are unable to control the situation</strong>, <strong>to engage temporarily in activities that are necessary to quell large-scale, unexpected civil disturbance. </strong></p> </blockquote> <p>So should Obama resume his vacation even as things in Missouri escalate dramatically, and be "unreachable", it may well come to pass that Obama's opinion will be irrelevant not only whether the National Guard should be unleashed in Ferguson, but whether Posse Comitatus is suddenly null and void.</p> <p>The good news: the use of lethal force is not the only option the US Army would have if and when it engages with the population. US citizens may simply&nbsp; be herded into "<em><strong>temporary internment camps</strong></em>" for reindoctrination purposes under the supervision of PSYOP Officer (no really, they used that word), as follows from the Army's FM3-39.40 <strong>"<a href="http://info.publicintelligence.net/USArmy-InternmentResettlement.pdf">Internment and Resettlment Operations</a>" </strong>manual:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Internment and Resettlement (I/R) operations facilitate the ability to conduct rapid and decisive combat operations; deter, mitigate, and defeat threats to populations that may result in conflict; reverse conditions of human suffering; and build the capacity&nbsp; of a foreign government to effectively care for and govern its population. This includes capabilities to conduct&nbsp; shaping operations across the spectrum of military operations to mitigate and defeat the underlying conditions&nbsp; for conflict and counter the core motivations that result in support to criminal, terrorist, insurgent, and other destabilizing groups. I/R operations also include the daily incarceration of U.S. military prisoners at facilities&nbsp; throughout the world.</p> <p>&nbsp;</p> <p><strong>An adaptive enemy will manipulate populations that are hostile to U.S. intent by instigating mass civil disobedience</strong>, directing criminal activity, masking their operations in urban and other complex terrain, <strong>maintaining an indistinguishable presence through cultural anonymity</strong>, and actively seeking the traditional sanctuary of protected areas as defined by the rules of land warfare. Such actions will facilitate the dispersal of threat forces, negate technological overmatches, and degrade targeting opportunities. Commanders will use technology and conduct police intelligence operations to influence and control populations, evacuate detainees and, conclusively, transition rehabilitative and reconciliation operations to other functional agencies. <strong>The combat identification of friend, foe, or neutral is used to differentiate combatants from noncombatants and friendly forces from threat forces. </strong></p> </blockquote> <p>Presenting army camps, hopefully not in a city near you:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Detainee facilities, an important planning consideration, are treated in the same basic fashion as any base camps. The same basic planning considerations are taken into&nbsp; account. Some detainee facilities will be subordinate to a larger base camp but they may also be at a separate location.</p> </blockquote> <p>Of course, none of this will be needed if the Army's Psyops work as required:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The PSYOP officer in charge of supporting I/R operations serves as the special staff officer responsible for PSYOP. The PSYOP officer advises the military police commander on the psychological impact of military police or MI actions to prevent misunderstandings and disturbances by detainees and DCs. The supporting I/R PSYOP team has two missions that reduce the need to divert military police assets to maintain security in the I/R facility.&nbsp; The team—</p> <ul> <li>Assists the military police force in controlling detainees and DCs.</li> <li>Introduces detainees or DCs to U.S. and multinational policy.</li> <li>Develops PSYOP products that are designed to pacify and acclimate detainees or DCs to accept U.S. I/R facility authority and regulations.</li> <li>Gains the cooperation of detainees or DCs to reduce the number of guards needed.</li> <li><strong>Identifies malcontents, trained agitators, and political leaders within the facility who may try to organize resistance or create disturbances.</strong></li> <li><strong>Develops and executes indoctrination programs to reduce or remove antagonistic attitudes.</strong></li> <li>Identifies political activists.</li> <li>Provides loudspeaker support (such as administrative announcements and facility instructions when necessary).</li> <li>Helps the military police commander control detainee and DC populations during emergencies.</li> <li>Plans and executes a PSYOP</li> </ul> </blockquote> <p>In other words, if and when the time comes to "override" Posse Comitatus, random US citizens may have two options: i) end up in the US version of a Gulag or, worse, ii) be shot. For now, however, just keep an eye on the various drill videos to get a sense of the US army's preparedness in dealing with "civil disobedience."</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="634" height="489" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/Operation%20Jade%20Helm.jpg?1429391167" /> </div> </div> </div> http://www.zerohedge.com/news/2015-04-18/caught-tape-national-guard-troops-patrol-california-city-conduct-new-jersey-homeland#comments Barack Obama Florida Mexico None Sat, 18 Apr 2015 21:38:57 +0000 Tyler Durden 504989 at http://www.zerohedge.com Modern-Day Monetary Cranks and the Fed's "Inflation" Target http://www.zerohedge.com/news/2015-04-18/modern-day-monetary-cranks-and-feds-inflation-target <p><a href="http://www.acting-man.com/?p=36947"><em>Submitted by Pater Tenebrarum via Acting-Man blog</em></a>,</p> <h3><strong>One Bad Idea After Another</strong></h3> <p>Ben Bernanke is frequently in the news these days. The latest occasion concerns his opinion on the Fed&rsquo;s &ldquo;inflation&rdquo; target, i.e., the target for the speed at which money should be debased relative to consumer goods in order to finally attain centrally planned economic nirvana.</p> <p>Price inflation is currently deemed to be &ldquo;too low&rdquo; by our <em>bien pensants</em>, in spite of the fact that the broad US money supply TMS-2 has more than doubled since 2008 (as of March, it is very close to $11 trillion, up from $5.3 trn. in early 2008). If recent CPI data are to be believed (which requires a bit of a leap of faith), consumers may actually get slightly <em>more</em> goods and services for their money henceforth. What an unimaginable horror!</p> <p>&nbsp;</p> <p style="text-align: center;"><a href="http://www.acting-man.com/blog/media/2015/04/CPI.png" target="_blank"><img alt="CPI" class="aligncenter wp-image-36948" height="349" src="http://www.acting-man.com/blog/media/2015/04/CPI-1024x595.png" width="600" /></a></p> <p style="text-align: center;">CPI dips ever so slightly into negative territory year-on-year &ndash; the nightmare of central planners around the world &ndash; click to enlarge.</p> <p><a href="http://www.bloomberg.com/news/articles/2015-04-15/bernanke-open-to-raising-inflation-target-fed-struggles-to-meet">Bloomberg reports</a> that Ben Bernanke has an idea how to combat this terrifying development. Obviously, with the CPI&rsquo;s rate of change dipping a few basis points into negative territory, the end of the world is practically at hand, so something needs to be done <em>pronto</em>.</p> <p>Bernanke delivered his remarks at a conference sponsored by another economic central planning institution, the IMF. The people running this surplus to requirement bureaucratic vampire den are dreaming of the day when the IMF will become the global central bank, in line with Keynes&rsquo; &ldquo;Bancor&rdquo; idea. This would allow fiat money inflation on a nigh unprecedented scale, as currencies would no longer compete and be comparable. However, we digress.</p> <p>Here is Bernanke:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong><em>&ldquo;Former Federal Reserve Chairman Ben S. Bernanke suggested that he would be open to an increase in the central bank&rsquo;s 2 percent inflation target.</em></strong></p> <p>&nbsp;</p> <p><strong><em>&ldquo;I don&rsquo;t see anything magical about targeting 2 percent inflation,&rdquo; he told a conference in Washington sponsored by the International Monetary Fund. His comments come as the Fed and other major central banks are struggling to prevent their economies from falling into a disinflationary trap of diminished expectations. IMF officials have proposed that the monetary authorities raise their inflation goals to help limit the danger of future deflation.</em></strong></p> <p>&nbsp;</p> <p>Fed Vice Chairman Stanley Fischer and European Central Bank Executive Board member Peter Praet are slated to discuss the issue Thursday at George Washington University in a session titled &ldquo;The Elusive Pursuit of Inflation.&rdquo; The session is being held in conjunction with the spring meetings of the fund and the World Bank.</p> <p>&nbsp;</p> <p>The U.S. central bank adopted its 2 percent goal in January 2012 when Bernanke was chairman. It has fallen short of meeting that objective for 34 straight months. In February, inflation, as measured by the personal consumption expenditure price index, the Fed&rsquo;s preferred gauge, was 0.3 percent.</p> <p>&nbsp;</p> <p><strong><em>Some economists, such as professor Laurence Ball of Johns Hopkins University in Baltimore, have called on the Fed to raise its target to 4 percent. Others, such as Scott Sumner of Bentley University in Waltham, Massachusetts, argue that the Fed should adopt a goal for the growth of nominal gross domestic product, rather than focusing on a price index.&rdquo;</em></strong></p> </blockquote> <p>(emphasis added)</p> <p>In other words, Bernanke has adopted the atrocious ideas already voiced by a bunch of other economists. The notion that central banks should &ldquo;make up&rdquo; for the price inflation that was &ldquo;lost&rdquo; during the period of sub 2% CPI readings isn&rsquo;t really new. Assorted Keynesians and monetarists have proposed it long ago, inter alia Olivier Blanchard, the IMF&rsquo;s own chief economist and Kenneth Rogoff, an armchair central planner whose kooky notions on inflationary policy we have already discussed in these pages (see &ldquo;<a href="http://www.acting-man.com/?p=25315">Parade of the Inflationists</a>&rdquo; for details).</p> <p>&nbsp;</p> <h3><u><strong>Respectable Monetary Cranks</strong></u></h3> <p>As <a href="http://www.bloomberg.com/news/articles/2013-08-12/rogoff-saying-this-time-different-calls-for-reflation-economy">Bloomberg reported</a> at the time regarding Rogoff&rsquo;s views:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong><em>&ldquo;The economist whose research foreshadowed the unusually long slog back from the 2008 financial crash is calling for the unlikeliest kind of central banker to lead the Federal Reserve: one who welcomes some inflation.</em></strong></p> <p>&nbsp;</p> <p><strong><em>Harvard University Professor Kenneth Rogoff, whose influential 1985 paper endorsed central bankers focused more on securing low inflation than on spurring employment, is highlighting the benefits of a Fed led by either Janet Yellen or Lawrence Summers precisely because they fail his old litmus test.</em></strong> President Barack Obama said Aug. 9 that they are &ldquo;outstanding&rdquo; and &ldquo;highly qualified&rdquo; candidates to replace Ben S. Bernanke, whose term as chairman runs out in January.</p> <p>&nbsp;</p> <p><strong><em>What qualifies them in Rogoff&rsquo;s view is their dovishness, a refusal to place too much weight on stable inflation at a time when unemployment is far above its longer-run level. Rogoff is espousing aggressive monetary stimulus, even at the cost of moderate price increases. At a time of weak global inflation, higher prices may even help the U.S. economy by lowering real interest rates and reducing debt burdens, he said.</em></strong></p> <p>&nbsp;</p> <p>&ldquo;In more normal times, you&rsquo;re looking for the central banker to be an anchor against high inflation expectations and to assure investors that inflation will stay low and stable to keep interest rates down,&rdquo; Rogoff, co-author with Carmen Reinhart of the 2009 book &ldquo;This Time Is Different: Eight Centuries of Financial Folly,&rdquo; said in an interview. <strong><em>Now &ldquo;we&rsquo;re in this situation where many of the central banks of the world need to convince the public of their tolerance for inflation, not their intolerance.&rdquo;</em></strong></p> </blockquote> <p>(emphasis added)</p> <p>Well, what can one say&hellip;<strong>welcome to monetary crankdom, Mr. Rogoff! </strong>The idea is based on the long-discredited Keynesian misinterpretation of the Phillips curve, which posits that there is a &ldquo;trade-off&rdquo; between inflation and employment. Of course, what Phillips <em>actually</em> measured was the historical relationship between employment rates and <em>wages</em>.</p> <p>It seems obvious that if the labor market becomes tight, some upward pressure on wages should be expected. There was no need to mine historical data to &ldquo;prove&rdquo; this. It is a big leap though to conclude from this that an increase in price inflation rates through central bank manipulation of interest rates and the money supply will magically improve employment. Henry Hazlitt showed in the late 1970s that the supposed relationship between inflation and unemployment existed exactly <em>half</em> of the time between 1947 and 1976. In other words, one might as well flip a coin.</p> <p style="text-align: center;">&nbsp;</p> <p style="text-align: center;"><a href="http://www.acting-man.com/blog/media/2015/04/US-tms-2.png" target="_blank"><img alt="US tms-2" class="aligncenter wp-image-36950" height="348" src="http://www.acting-man.com/blog/media/2015/04/US-tms-2-1024x593.png" width="600" /></a></p> <p style="text-align: center;">US money TMS-2 is up more than 100% since early 2008 and some 262% since early 2000 (i.e., it has more than tripled since then). Obviously, more inflation is urgently needed &ndash; click to enlarge.</p> <p>&nbsp;</p> <p>However, there is actually no need to look at empirical data &ndash; economic theory cannot be proved or disproved with slices of empirical data, given the unique contingent circumstances of every historical period. What can be said unequivocally though is that the idea that the central bank should target an even <em>higher</em> rate of consumer price inflation is completely crazy.</p> <p>The price effects of the Fed&rsquo;s inflationary policy are already clearly visible in the prices of stocks, bonds, real estate, works of art, fine wines and other collectibles, and so forth. As we have previously argued, cash is treated as a &ldquo;hot potato&rdquo; by those who have first dibs on newly created money. Or to put it differently: in spite of low CPI rates of change, <em>price inflation is already raging</em>.</p> <p>The monetary inflation of recent years is benefiting anyone <em>but</em> the so-called &ldquo;middle class&rdquo; and the poor. With CPI dipping slightly into negative territory, consumers can at least hope to see <em>some</em> tiny benefit from the price distortions central banks have wrought. We wonder by what method Mr. Bernanke thinks they can be deprived of this benefit? The only thing the central bank can <em>possibly</em> do is to inflate the money supply even further and at an even faster pace. Surely this has to be one of the worst ideas ever.</p> <p>&nbsp;</p> <h3><u><strong>Conclusion</strong></u></h3> <p>The science of economics has taken a decidedly wrong turn sometime in the 1930s. In the field of monetary science specifically, sober analysis has given way to broad-based support of central economic planning, with <strong>both policy makers and their advisors seemingly trying to trump each other with ever more lunatic proposals.</strong></p> <p>Mr. Bernanke is obviously a charter member of the modern society of monetary cranks, and in his time as Fed chairman has actively undermined the economy by introducing a zero interest policy and printing wagon-loads of money in a very short time. We are well aware that he is credited with having &ldquo;averted a repetition of the Great Depression&rdquo;. <strong>Since one cannot go back in time to see what would have occurred had he not acted the way he did, it isn&rsquo;t possible to prove or disprove this assertion empirically, but we believe it is hokum.</strong></p> <p>We think<strong> he should rather be credited with having created one of the greatest bubbles in history, and having caused malinvestment and consumption of scarce capital on a staggeringly vast scale. </strong>And yet, he keeps coming out in support of ideas that could prove even more dangerous to economic prosperity. Hasn&rsquo;t the man done enough damage already?</p> <p style="text-align: center;">&nbsp;</p> <p style="text-align: center;"><img alt="Kenneth+Rogoff+Ben+Bernanke+IMF+Research+Conference+Pum0xjaYsrJl" class="aligncenter size-full wp-image-36949" height="396" src="http://www.acting-man.com/blog/media/2015/04/Kenneth-Rogoff-Ben-Bernanke-IMF-Research-Conference-Pum0xjaYsrJl.jpg" width="594" /></p> <p style="text-align: center;">Members of the association of monetary cranks. From left to right: Larry Summers, Olivier Blanchard, Kenneth Rogoff, Stanley Fischer and Ben Bernanke at an economic forum on &ldquo;Policy Responses to Crises&rdquo; at the International Monetary Fund headquarters on November 8, 2013 in Washington, DC.</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="532" height="363" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20150418_cranks.jpg?1429377858" /> </div> </div> </div> http://www.zerohedge.com/news/2015-04-18/modern-day-monetary-cranks-and-feds-inflation-target#comments Barack Obama Ben Bernanke Ben Bernanke Central Banks CPI European Central Bank Fail Federal Reserve Great Depression Gross Domestic Product International Monetary Fund Janet Yellen Larry Summers Money Supply Personal Consumption Rate of Change Real estate Real Interest Rates The Economist Unemployment World Bank Sat, 18 Apr 2015 21:05:27 +0000 Tyler Durden 504980 at http://www.zerohedge.com