http://www.zerohedge.com/fullrss2.xml/contributed/contributed/news/In%20three%20states%E2%80%94Arkansas%2C%20Nebraska%20and%20South%20Dakota%E2%80%94voters%20approved%20ballot%20measures%20in%20November%20to%20increase%20the%20minimum%20wage%2C%20effective%20Jan.%201%2C%20according%20to%20the%20National%20Conference%20of%20State%20Legislatures.%20%20Alaska%20voters%20passed%20an%20initiative%20raising%20the%20minimum%20wage%20in%20the%20state%20to%20begin%20Jan.%201.%20But%20the%20pay%20increase%20isn%E2%80%99t%20effective%20until%2090%20days%20after%20the%20election%20results%20are%20certified%2C%20Feb.%2024.%20%20Meanwhile%2C%20legislatures%20in%20seven%20states%E2%80%94Connecticut%2C%20Hawaii%2C%20Maryland%2C%20Massachusetts%2C%20Rhode%20Island%2C%20Vermont%20and%20West%20Virginia%E2%80%94approved%20laws%20boosting%20the%20minimum%20wage.%20Those%20laws%20go%20into%20effect%20today.%20%20Though%20Delaware%20and%20Minnesota%E2%80%99s%20state%20lawmakers%20voted%20to%20raise%20the%20minimum%20wage%2C%20those%20increases%20won%E2%80%99t%20begin%20until%20June%20and%20August%2C%20respectively.%20The%20District%20of%20Columbia%20will%20see%20a%20minimum%20wage%20hike%20beginning%20July%201. en Why Krugman, Roubini, Rogoff And Buffett Hate Gold http://www.zerohedge.com/news/2016-09-30/why-krugman-roubini-rogoff-and-buffett-hate-gold <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Why Krugman, Roubini, Rogoff And Buffett Dislike Gold</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>By&nbsp;<a href="https://twitter.com/Skoylesy">Jan Skoyles</a>&nbsp;&nbsp;Edited by&nbsp;<a href="https://twitter.com/MarkTOByrne">Mark O'Byrne</a>&nbsp;</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">A couple of weeks ago an article appeared on Bitcoin Magazine entitled<em>&nbsp;‘Some economists really hate bitcoin’.</em></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">I read it with a sigh of nostalgia. As someone who has been writing about gold for a few years, I am used to reading similar criticisms as those bitcoin receives from mainstream economists, about gold.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><a href="http://www.goldcore.com/"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2016/09/gold-price-performance.png" alt="gold price performance" width="878" height="614" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter size-full wp-image-7196" /></a></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">As with bitcoin, gold is just a step too far for many economists. Criticism is often, as with bitcoin, targeted at the people who invest in it, rather than the asset’s own track record, fundamentals and safe haven attributes – classic attacking the ball and not the man.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">This frequently involves name calling and the pejorative ‘goldbug’ label. This is used to try and discredit anyone who says anything positive about gold including being bullish on the price or seeing it as an important diversification. Often some of the gold naysayers refuse to distinguish between gold as a diversification in an investment or pension portfolio and gold’s role as a hedge against currency devaluations&nbsp;on one side and on the other calls for a gold standard.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Two completely separate matters - one pertaining to monetary policy and the other to investing, saving and personal finances.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">In my experience to invest in gold is seen by the critics as the ultimate rejection of central banks, financial systems and government. These critics believe that faith in something that just gets mined&nbsp;out of the ground is baseless compared to something that ‘involves human endeavors (like stocks)’ as Joe Weisenthal of Bloomberg argued.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">This ignores the fact that the production of gold, refining of gold, minting and fabricating of coins and bars and indeed the brokering, delivery and storage of bullion, and the running of the myriad of different precious metal companies involved in this quite large industry involves human energy, innovation and endeavours.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Below I touch upon some of those critics who continue to dismiss either gold as an investment or as a form of money which may play some role in the monetary system.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Nobel Prize Winning Krugman</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">If anyone could be accused of having a caricature of gold, it would be Paul Krugman. For him, gold investment is a push for the gold standard and anyone who advocates diversifying into gold is a lunatic, right wing "gold bug".</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Krugman most recently riled fans of gold when he went after Republicans during candidate nominations and mocked their apparent desire to return to a gold standard. (Despite it being a Republican who ended the gold standard).</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">What Krugman failed to acknowledge was that the push for gold in the financial system is not just coming from a the “Tea Party” movement and a bunch of Republican voters, but rather it is coming from the East - from China and the People’s Bank of China and indeed the Russian central bank who are buying up all the gold they can.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">It’s coming from Western investors who are looking for a hedge against economic risk and for portfolio diversification. It is coming from countries who still see gold as a form of money and a safe haven, such as the people of India and people in Germany and Switzerland in Europe.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">When asked why he celebrated the fall of the gold price in 2013 he told Business Insider:</p> <blockquote style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><p>“Well, the inflationistas/goldbugs are really, really annoying -- all this air of having the secret wisdom when they actually haven't a clue. And they have been a real destructive factor in policy debate, standing in the way of effective policy by raising fears of Weimar and Zimbabwe. So seeing the one thing they got right -- betting on higher gold prices -- turn sour is cause for a bit of celebration.”</p> </blockquote> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">To be fair, the gold price had fallen sharply in 2013 but Krugman ignored the performance over the medium and long term - a cardinal sin in investing which should always be about the long term.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Even at the end of 2015 when a few of us were doing some soul-searching and asking ‘did we miss something? It wasn’t as though we had returned to the days of a few hundred dollars per ounce. Gold and silver were some of the best assets to hold before, during and after the global financial crisis. Gold rose every single year from 2001 through to 2012, prior to the sharp correction in 2013. Gold rose in all fiat currencies - none of which acted as a safe haven during the financial crisis.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Gold acted as a hedge during the crisis when most property, stock and bond markets had seen sharp falls. When these markets stabilised and began to recover, gold prices fell. Exactly what a hedge should do.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">This year gold and silver prices were up 26% and 38% respectively, in the first half of the year and have consolidated on those gains in Q3, 2016.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Stocks in many markets have come under pressure in 2016 - especially in Japan and Germany and some currencies have been devalued including the British pound after Brexit. Gold is acting as a hedge again in 2016 - exactly when investors around the world need a hedge.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">To my knowledge Krugman is yet to address this year’s gold performance. The last time he did try to explain the bull-market in gold (early September 2011) he dismissed the idea that it was because of inflationary concerns. But for some reason used numbers that&nbsp;<em>exclude</em>&nbsp;inflation to support his argument.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">He did, however make the valid point (which I entirely agree with) that “because expected returns on other investments have fallen” is why more people were buying gold. Yet given near negative and negative interest rates today, and the fact the "expected returns" on deposits, bonds and indeed the entire pensions complex "have fallen", you would think that Krugman might now understand and concede the value of diversification an allocation to gold in a diversified portfolio.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Ideologues of the right and the left never allow the facts to get in the way of their arguments.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Oracle of Omaha, Warren Buffet</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Warren Buffett is not an economist but you can guarantee that more investors pay attention to the Oracle of Omaha’s views than the majority of those economists - particularly statist ideologues.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Buffet has even debated with Marc Andreeson over bitcoin. Many believe that he dislikes bitcoin, but this may not be the case, he may just see it as a development in the world of payments - an upgrade from writing a cheque or sending a wire transfer. It is not ground-breaking stuff.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Where Buffet’s problem with bitcoin lies is exactly where it lies with gold - he fails to see the intrinsic value of it. Bitcoin is ‘not a currency’ it is a ‘mirage’ according to Buffett.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2016/09/389447-124412708039709-Mark-O-Byrne_origin-1.png" alt="389447-124412708039709-Mark-O-Byrne_origin" width="736" height="527" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter size-full wp-image-7195" /></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">When interviewed by CNBC in 2009 he said of gold&nbsp;<em>“…&nbsp;it’s a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that,”</em>&nbsp;he said.&nbsp;<em>“The idea of digging something up out of the ground, you know, in South Africa or someplace and then transporting it to the United States and putting into the ground, you know, in the Federal Reserve of New York, does not strike me as a terrific asset.”</em></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">At the beginning of the year Berkshire Hathaway increased its shareholding in oil refining company Philips 66 to 13.7%. This was seen as a bet on oil prices. The company had chosen to ignore the current top performing commodities that were gold and silver, and the shares of Berkshire Hathaway were underperforming in comparison.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">In 2009, prior to gold going parabolic from 2010 to 2012, GoldCore also pointed out how gold has performed Berkshire Hathaway over a 4 year and a 10 year period. We pointed out and were quoted by Bloomberg how gold's utility was simply "in balancing a portfolio." We said that the point is that&nbsp;gold had "preserved a chunk of wealth that would have been otherwise taken down with other financial instruments,”&nbsp;<a href="http://seekingalpha.com/article/141492-buffett-gets-comeuppance-after-gold-outperforms">see here</a>.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">The&nbsp;Daily Reckoning also pointed out “an investor who purchased gold at any time after January of 1998 would have received a higher investment return over the following 10 years than an investor who purchased Berkshire Hathaway.”</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">This is not to suggest that Berkshire Hathaway has not been a great investment for its owners - it has. Rather it shows that there are periods of time when gold outperforms most, and frequently all, other investments and hence its importance as a hedging instrument and a safe haven asset.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Dr. ‘Doom’ Roubini</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">We have some respect for Dr Roubini as a macroeconomist and have indeed shared many of his concerns in many years and shared them with our clients and the wider public as long ago as 2005 and 2006 when he and we&nbsp;warned that the US would soon follow in Iceland's footsteps and have its own financial crisis.&nbsp;However, giving financial advice is not his expertise and he may be better suited focusing on his strengths.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">As Roubini is regarded as a guru by many experts and opinion makers internationally, there is a real risk that his opinions regarding gold could lead to poor and imprudent investment decisions.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">In December 2009, when gold was at $1,100/oz, he said that "all the gold bugs who say gold is going to go to $1,500, $2,000, they’re just speaking nonsense."</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">In the following years gold rose to over $1,500/oz and nearly reached $2,000/oz when it surged to $1,915/oz in 2011.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">One of our clients actually sold their gold allocation on the basis of this statement. Despite gold being the one asset class that had protected them in the early stages of the&nbsp;crisis in 2007, 2008 and 2009. Gold nearly doubled after Roubini's pronouncement.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; text-align: center;"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2016/09/gold_chart.png" alt="gold_chart" width="561" height="339" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter size-full wp-image-7198" /><em><strong>Gold in USD - 10 Years</strong></em></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">In August, 2013, when gold has already fallen in price and was trading at $1,300/oz, Roubini predicted that gold&nbsp;would fall another 23%, back to $1,000. Not only that but he said that this would happen "at the end of next year".</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Reasons given were that:<em>&nbsp;“Now with the economy recovering, nobody wants to be in rocks that don't pay any dividends. Real interest rates are rising. That kills gold…Governments with debt issues are selling gold…Gold was juiced by right-wing fanatics in the US. That boom is over… gold remains John Maynard Keynes’s “barbarous relic,” with no intrinsic value and used mainly as a hedge against mostly irrational fear and panic.”</em></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Where to start with this logic and poor analysis? There has not been an&nbsp;economic recovery of real substance, real interest rates do not appear to have risen and the gold price has performed quite well over the medium and long term. Gold has gone sideways after a period of multiple annual yearly gains.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">To&nbsp;be fair, it is difficult to call Roubini an all out gold-hater as he does suggest that “all investors should have a very modest share of gold in their portfolios as a hedge against extreme tail risks.” However, he doesn’t think it’s crucial and that “other real assets can provide a similar hedge, and those tail risks – while not eliminated – are certainly lower today than at the peak of the global financial crisis.” Given the deteriorating financial position of systemic Deutsche Bank, Roubini may need to revise that assumption soon.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Roubini has been very vocal in his anti-gold stance. Indeed, he has even engaged in Twitter wars with GoldCore's Mark O'Byrne and James Rickards, over the gold standard.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">There is little doubt that Roubini is a very smart economist, however he just cannot get to grips with the role of gold. Describing those who like gold as&nbsp;<em>‘gold bugs – a combination of paranoid investors and others with a fear-based political agenda.’&nbsp;</em>He&nbsp;likes to throw gold and bitcoin fans into the same category. He tried to engage Jim Rickards and goldbugs in Twitter war back in April 2013. When Rickards pointed out a few truths about the gold price he turned his attentions “Gold-bug suckers found another irrational useless bubble fad, the Bitcoin, the bubble flavor of the day. So they are dissin gold 4 Bitcoin.”</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2016/09/nouriel.png" alt="nouriel" width="574" height="699" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter size-full wp-image-7202" /><br />Roubini has also resorted to the silly old argument that&nbsp;<em>"you can't eat gold"</em>&nbsp;and said that:&nbsp;<em>"If you want to hedge against&nbsp;inflation, stock up on Spam or other canned food"</em></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Ignoring the somewhat obvious fact that you cannot eat any investment or currency - whether that be stocks, bonds or dollars, euros or pounds. Unlike, spam and canned food, gold is one of the most traded assets and liquid investments in the world - especially in a crisis. There is always a market for gold and it can always be exchanged for cash or indeed used to buy food, farms, property and businesses. A cursory analysis of gold's performance in economies suffering financial and economic crisis would show Roubini the value of gold as a currency hedge and indeed a hedge against systemic contagion in an economy.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Thus, Roubini&nbsp;has a questionable track record when it comes to gold and his arguments against it are&nbsp;poor.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Rogoff</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">In many ways I have saved the best until last, but at the same time wish to not say too much here as I have a further article planned around the Grand Chess master, American economist, Kenneth Rogoff.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Many of you will recognise the name as his latest book ‘The Curse of Cash’ was released over the summer. As someone who straddles both the fintech world as well as the gold world I am used to the push for a cashless society.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Going cashless is seen as the new sexy side to financial services as it is purported to prevent bad things happening with money and will allegedly empower the poor of the Developing World and the unbanked. Save your scoffing, I’ll deal with those claims in my later article.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">For Rogoff the clamp down on cash would be beneficial because of its impact on money laundering and tax evasion. Why would this mean that he is against gold? It might not. In fact he has quite prominently appeared to support gold (or at least not dismiss it) earlier this year.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">In May, writing on Project Syndicate he outlined how emerging economies should shift their US dollar reserves entirely into gold, praising it as ‘an extremely low-risk asset with average real returns comparable to very short-term debt.’. He argued that emerging economies should ignore the West’s push to demonetise gold, ‘There has never been a compelling reason for emerging markets to buy into the rich-country case for completely demonetizing gold. And there isn’t one now.’</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">But, in a recent interview to promote his book he told CNBC that there was a need to clamp down on assets that could be used instead of good, sturdy fiat money, ‘“You have to play whack-a-mole with all these things,” he stated during a&nbsp;<a href="http://video.cnbc.com/gallery/?video=3000548776">recent appearance</a>&nbsp;on CNBC. “There are always going to be these other things: gold coins, uncut diamonds, [and] now bitcoin.”</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">‘These other things’ are real, tangible assets (forget bitcoin for now). They allow freedom of movement, of purchases and there can be significantly less counterparty risk than when using fiat money. The push for a cashless society, for all the talk of fighting crime, is really to support the banking system.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">As we outline in our upcoming/recent report on bail-ins. The push for a cashless society will help to support the new bail-in regime. With assets such as gold, bail-ins become trickier and not as straightforward as using customer deposits to prop up a failing bank system.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Rogoff dislikes gold because it removes power from the banking system within reach of tax strapped governments, and puts it back in the hands of the saver who opts to save in gold bullion rather than fiat, electronic currency.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">In this vein, libertarian academic economist,&nbsp;Saifedean Ammous, wrote on Twitter</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><em>"Statist economists hate Bitcoin for same reason taxi drivers hate Uber: it frees the rest of us from their bull$h*t ..."</em></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">How true. Substitute the words Bitcoin for gold and it reads just as well if not better:</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><em>"Statist economists hate gold&nbsp;for same reason taxi drivers hate Uber: it frees the rest of us from their bull$h*t ..."</em></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Conclusion</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Keynes once argued “gold has become part of the apparatus of conservatism and is one of the matters which we cannot expect to see handled without prejudice.” This is certainly true&nbsp;with regards to gold today and the many prejudices and lack of evidence based research regarding gold and its role as a hedging instrument and safe haven diversification.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><em>"The modern mind dislikes gold because it blurts out unpleasant truths"</em>&nbsp;said economist and political scientist Joseph Schumpeter. The unpleasant truth today is that today's financial and monetary system is fragile in the extreme and likely to suffer another financial crisis very soon.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">For all of those mentioned above the main dislike for gold appears to be due to a combination of a lack of understanding and the desire to keep the unsustainable status quo going. A surging gold price frequently makes their analysis and prognosis look bad. In the case of Buffett, were a the 'chunk of metal' gold to outperform his Berkshire Hathaway shares his God-like 'Oracle' status would be questioned.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">In the words of my karaoke go-to Taylor Swift “Haters gonna hate, hate, hate ...”</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Gold and Silver Bullion - News and&nbsp;Commentary</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.marketwatch.com/story/gold-churns-near-unchanged-as-haven-assets-snubbed-2016-09-29">“Given strong fundamentals of increasing geopolitical and economic risk ... gold should move higher in Q4” (MarketWatch)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.bloomberg.com/news/articles/2016-09-30/gold-advances-as-deutsche-bank-concerns-stoke-demand-for-haven">Gold Advances as Deutsche Bank Concerns Stoke Demand for Haven (Bloomberg)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.reuters.com/article/global-precious-idUSL3N1C6032">Gold rises as stocks slip, on track for weekly loss (Reuters)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.telegraph.co.uk/business/2016/09/29/now-another-german-bank-is-in-trouble-commerzbank-to-cut-9600-jo/">Is another German bank in trouble? Commerzbank to cut 9,600 jobs and suspend dividend (Telegraph)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.reuters.com/article/russia-cenbank-gold-reserves-idUSR4N1BY01U">Russian Central Bank To Continue Diversifying Into Gold (Reuters)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><a href="http://info.goldcore.com/7-real-risks-to-your-gold-ownership" rel="attachment wp-att-5047"><img src="http://www.goldcore.com/news/wp-content/uploads/sites/16/2016/03/7RealRisksBlogBanner.jpg" alt="7RealRisksBlogBanner" width="822" height="430" style="height: auto; max-width: 100%;" class="alignnone wp-image-5047" /></a></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://finance.yahoo.com/news/hedge-fund-legend-julian-robertson-140210505.html">HEDGE FUND LEGEND JULIAN ROBERTSON: Everything is a bubble - Will end in 'chaos' (YahooFinance)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.investing.com/analysis/hsbc%E2%80%99s-chief-of-technical-analysis-just-warned-of-a-potential-1987-type-200155974">HSBC Warns Of 1987-Like Crash (Investing)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://wallstreetonparade.com/2016/09/the-new-banking-crisis-in-two-frightening-graphs/">The New Banking Crisis — In Two Frightening Graphs (WallstreetOnParade)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://money.cnn.com/2016/09/28/investing/china-wang-jianlin-real-estate-bubble/">Chinese Property is 'Biggest Bubble in History' - Billionaire (CNNMoney)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.silverseek.com/commentary/top-four-precious-metals-which-will-be-best-investments-during-next-financial-crash-15977">TOP FOUR PRECIOUS METALS: Which Will Be The Best Investments During The Next Financial Crash (Silverseek)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Gold Prices (LBMA AM)</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">30Sep: USD 1,327.90, GBP 1,025.01 &amp; EUR 1,187.67 per ounce<br />29Sep: USD 1,320.85, GBP 1,016.92 &amp; EUR 1,177.14 per ounce<br />28Sep: USD 1,324.80, GBP 1,020.10 &amp; EUR 1,181.06 per ounce<br />27Sep: USD 1,335.85, GBP 1,031.01 &amp; EUR 1,187.84 per ounce<br />26Sep: USD 1,336.30, GBP 1,033.23 &amp; EUR 1,188.91 per ounce<br />23Sep: USD 1,335.90, GBP 1,027.17 &amp; EUR 1,192.16 per ounce<br />22Sep: USD 1,332.45, GBP 1,019.59 &amp; EUR 1,186.68 per ounce</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Silver Prices (LBMA)</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">30Sep: USD 19.35, GBP 14.92 &amp; EUR 17.33 per ounce<br />29Sep: USD 19.01, GBP 14.61 &amp; EUR 16.95 per ounce<br />28Sep: USD 19.12, GBP 14.69 &amp; EUR 17.05 per ounce<br />27Sep: USD 19.42, GBP 14.99 &amp; EUR 17.26 per ounce<br />26Sep: USD 19.44, GBP 15.04 &amp; EUR 17.29 per ounce<br />23Sep: USD 19.82, GBP 15.28 &amp; EUR 17.66 per ounce<br />22Sep: USD 19.88, GBP 15.22 &amp; EUR 17.69 per ounce</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><br />Recent Market Updates</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.goldcore.com/us/gold-blog/ecb-draghi-germany/">-&nbsp;ECB Refused “To Answer Questions” – Deutsche Bank “Systemic Threat” Is “Not ECB Fault”</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/euro-might-start-unravel-collapse-deutsche-bank/">-&nbsp;Euro “Might Start To Unravel” If Collapse Of Deutsche Bank</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/do-you-really-own-your-gold/">-&nbsp;Do You Really Own Your Gold?</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/gold-will-likely-soar-record-within-five-years/">-&nbsp;“Gold Will Likely Soar To A Record Within Five Years”</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/savings-guarantee/">-&nbsp;Savings Guarantee? U.N. Warns Next Financial Crisis Imminent</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/gold-1-5-silver-surges-3-yellen-stays-ultra-loose-0-25/">-&nbsp;Gold Up 1.5%, Silver Surges 3% – Yellen Stays Ultra Loose At 0.25%</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/trump-clinton-positive-gold-1900oz-end-year/">-&nbsp;Trump and Clinton Are “Positive For Gold” – $1,900/oz by End of Year</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/gold-bugs/">-&nbsp;Gold Bugs Rejoice – Central Banks Think You’re On To Something</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/hard-brexit-looms-ireland/">-&nbsp;‘Hard’ Brexit Looms For Ireland</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/eu-bail-in-rules-italy/">-&nbsp;EU Bail In Rules Ignored By Italy – Mother Of All Systemic Threats and World&nbsp;War?</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/buy-gold-bonds-biggest-bubble-world-billionaire-singer-warns/">-&nbsp;Buy Gold – Bonds Are ‘Biggest Bubble In World’ – Billionaire Singer Warns</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/silver-bullion-market-bullish-story-ever-told/">-&nbsp;Silver Bullion Market – “Most Bullish Story Ever Told?”</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/physical-allocated-gold/">-&nbsp;“Sorry, You Can’t Have Your Gold Bullion”</a></strong></p> http://www.zerohedge.com/news/2016-09-30/why-krugman-roubini-rogoff-and-buffett-hate-gold#comments Berkshire Hathaway Bitcoin Bond British Pound Central Banks China Deutsche Bank Federal Reserve Germany Gold Bugs Goldbugs India Ireland Italy Japan Jim Rickards Julian Robertson Krugman Monetary Policy None Paul Krugman Precious Metals Real Interest Rates recovery Reuters SWIFT Switzerland Twitter Twitter Warren Buffett Sat, 01 Oct 2016 19:00:00 +0000 GoldCore 573655 at http://www.zerohedge.com Three Reasons Why The Banking System Is Rigged Against You http://www.zerohedge.com/news/2016-10-01/three-reasons-why-banking-system-rigged-against-you <p><a href="https://www.sovereignman.com/trends/three-reasons-why-the-banking-system-is-rigged-against-you-20267/">Submitted by Simon Black via SovereignMan.com,</a></p> <p>f there were ever any doubt about how completely RIGGED the banking system is against depositors, allow me to introduce the following:</p> <p><strong>Exhibit A: Governments are working to make banks LESS safe</strong></p> <p>Yesterday an unelected bureaucrat that no one has ever heard of <a href="http://blogs.ft.com/brusselsblog/2016/09/30/bye-bye-basel-shielding-europes-banks/" target="_blank">made a stunning announcement</a> that has sweeping implications for anyone with a bank account.</p> <p>Dombrovskis is Europe&rsquo;s top financial services official, so he controls bank regulations in the European Union.</p> <p>He issued a stern warning to global bank regulators yesterday that he is prepared to reject any further plans they might have to tighten bank capital requirements.</p> <p>This might sound rather dry, but it&rsquo;s incredibly important.</p> <p>&ldquo;Bank capital&rdquo; is the most critical component of any bank balance sheet.</p> <p>Capital is like a bank&rsquo;s rainy day fund; when things start to go bad, a bank&rsquo;s capital provides a margin of safety to ensure that their depositors&rsquo; funds are safe.</p> <p>Strong banks have ample capital and are able to withstand crises.</p> <p>Weak banks with low levels of capital collapse. And that&rsquo;s precisely what happened in 2008.</p> <p>Most banks across the west had very low levels of capital. They had spent years making appallingly stupid &lsquo;no money down&rsquo; loans with 0% teaser interest rates to borrowers with pitiful credit.</p> <p>When that bubble burst, the banks lost billions of dollars. And it turned out that most of the banks at the time had razor thin levels of capital.</p> <p>If you&rsquo;re wondering why, the answer is quite simple: the less capital a bank maintains, the more money it can invest&hellip; so poorly capitalized banks tend to make more money.</p> <p>Lehman Brothers was quite profitable.</p> <p>But the bank infamously had capital worth just 3% of its total assets&hellip; meaning that if Lehman&rsquo;s investments fell by just 3%, they would be wiped out.</p> <p>Lehman&rsquo;s investments fell by a lot more than 3%&hellip; so the bank&rsquo;s capital was totally insufficient to weather the storm. The bank folded, and a huge crisis erupted.</p> <p>Regulators vowed to never let that happen again.</p> <p>And in the years since, the Basel Committee on Banking Supervision, the primary global bank regulator, has been pushing banks to increase their capital levels higher.</p> <p>European banks in particular still have pitiful balance sheets.</p> <p>Their investment portfolios are stuffed full of negative-yielding bonds issued by bankrupt European governments.</p> <p>And their capital levels are still so low with&nbsp;many of them that there are whispers of taxpayer funded bailouts, from Italy&rsquo;s Monte dei Paschi to Germany&rsquo;s global titan Deutsche Bank.</p> <p>But despite these pitiful bank fundamentals, Dombrovskis is rejecting the Basel Committee&rsquo;s latest push to make banks safer.</p> <p>According to the Financial Times, Dombrovskis is specifically complaining that the Basel proposals might lead to a &ldquo;significant&rdquo; increase in the amount of capital that banks would maintain.</p> <p>&hellip; so in other words, the head of European financial services thinks it&rsquo;s a bad idea for banks to have an extra margin of safety.</p> <p>Bank profits are being prioritized over depositor safety, even at a time when so many of the banks are seeking taxpayer-funded bailouts.</p> <p>In the eyes of the bureaucracy, bank profits come before depositor safety&hellip; which makes it completely obvious how rigged the system is against you.</p> <p>* * *</p> <p><strong>Exhibit B: The Volker Rule farce</strong></p> <p>In another effort to make banks safer, the US government passed the Volker Rule as part of their new post-crisis financial regulation.</p> <p>The Volker Rule forces banks to sell their riskiest assets, i.e. the stuff they shouldn&rsquo;t have been buying to begin with, especially with their depositors&rsquo; savings.</p> <p>Problem is, those risky assets aren&rsquo;t worth very much, and the banks are having a hard time finding a buyer willing to pay them 100 cents on the dollar.</p> <p>So rather than take the loss, banks in the US keep requesting extension after extension.</p> <p>They&rsquo;ve already had six years to offload their assets. Now the deadline has been extended all the way to 2022.</p> <p>Yet in the meantime, the banks get to continue holding those assets on their balance sheet at 100 cents on the dollar, even though they&rsquo;re clearly not worth a fraction of that.</p> <p>The whole thing is a giant scam designed to conceal obvious bank losses&hellip; a neat little arrangement between the political elite and banking elite.</p> <p>* * *</p> <p><strong>Exhibit C: No one from Wells Fargo is going to jail</strong></p> <p>Wells Fargo is getting a very public slap on the wrist for falsifying customer bank accounts in its efforts to meet their sales goals.</p> <p>And in addition to the embarrassment they&rsquo;ll probably pay a series of steep damages, most of which will go to the government and class action lawyers.</p> <p>But don&rsquo;t hold your breath for any senior executives to be criminally indicted.</p> <p>If you or I engaged in what Wells Fargo did, we&rsquo;d already be turning big rocks into little rocks wearing a DayGlo orange jumpsuit.</p> <p>There&rsquo;s a word for what they did. It&rsquo;s called fraud. And the people at the top were either part of the scam, or they were too stupid to recognize an obvious crime.</p> <p>Once again, it&rsquo;s proof of a system that&rsquo;s totally rigged in favor of the banking elite&hellip; literally at your expense.</p> <p>* * *</p> <p><strong>Modern banking is truly bizarre.</strong></p> <p>They&rsquo;ve created a system whereby we entrust our hard-earned savings to institutions that never miss an opportunity to abuse that trust.</p> <p>In making a deposit at a bank, we become merely an unsecured creditor.</p> <p>And in exchange for taking on that counterparty risk they provide almost zero transparency in what they&rsquo;re doing with the money.</p> <p>Even still, they work in partnership with their friends in government (where a very swift revolving door exists) to legally conceal their true financial condition.</p> <p>Your reward for all this risk? A whopping 0.1%, if you&rsquo;re lucky.</p> <p>Why take the chance? Think about withdrawing at least a portion of your savings. Gold and physical cash are great alternatives.</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="966" height="503" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20161001_rigged.jpg?1475338976" /> </div> </div> </div> http://www.zerohedge.com/news/2016-10-01/three-reasons-why-banking-system-rigged-against-you#comments B+ Deutsche Bank European Union Financial Regulation Germany Italy Lehman Lehman Brothers SWIFT Transparency Wells Fargo Sat, 01 Oct 2016 18:45:00 +0000 Tyler Durden 573696 at http://www.zerohedge.com Russia Warns US Military "Aggression" In Syria Would Lead To "Terrible, Tectonic" Consequences http://www.zerohedge.com/news/2016-10-01/russia-warns-us-military-aggression <p>As the drums of war beat louder, following <a href="http://www.zerohedge.com/news/2016-09-28/john-kerry-gives-russia-ultimatum-stop-bombing-aleppo-or-all-cooperation-ends">last week's ultimatum by John </a>Kerry that the US is contemplating a direct military intervention in Syria, including potentially sending US troops on the ground in the war-torn country for the first time, on Saturday Russia warned the US against carrying out any attacks on Syrian government forces, saying it would have repercussions across the Middle East. The warning comes as government forces captured a hill on the edge of the northern city of Aleppo under the cover of airstrikes.</p> <p>It has been one year since Russia became officially involved in the Syria conflict. The maps below show zones controlled by different forces before Russian intervention in September 2015 and the situation now. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/09/14/syria%20war%20map.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/09/14/syria%20war%20map_0.jpg" width="500" height="379" /></a></p> <p>The most obvious change is the collapse in territory controlled by ISIS, as well as the expansion of territories held by the Syrian regime, which is the biggest concern to the US, whose main directive in the Syrian conflict has been less to crush the Islamic State as to minimize the influence and territory of Assad's regime, replacing it with US-controlled "rebel" forces. </p> <p>And with Russia - long an ally to Assad as the conflict is fundamentally about Gazprom's loss of influence over Europe should a Qatari natgas pipelines cross under Syria&nbsp; - having become the biggest hurdle to US strategy in Syria, there has been a notable shift in the US strategy, with western media slamming Russia's "<a href="http://www.voanews.com/a/kerry-says-us-on-the-verge-of-suspending-talks-with-russia-over-syria/3530342.html">barbarous airstrikes</a>", focusing on recent bombing strikes of the rebel-held city of Aleppo, a repeat of US strategy from the summer of 2013 when a doctored "chemical attack" YouTube video was used to justify US presence in the local conflict. </p> <p>In response, Russian news agencies quoted Foreign Ministry spokeswoman Maria Zakharova as saying that "U.S. aggression" against the Syrian army "<strong>will lead to terrible, tectonic consequences not only on the territory of this country but also in the region on the whole.</strong>" </p> <p>She said regime change in Syria would create a vacuum that would be "quickly filled" by "terrorists of all stripes." </p> <p>As <a href="http://bigstory.ap.org/article/b1dff53fa4664a28ad9fbd6d4949fe71/russia-warns-against-us-attack-syrian-forces">AP notes</a>, U.S.-Russian tensions over Syria have escalated since the breakdown of a cease-fire last month, with each side blaming the other for its failure. Syrian government forces backed by Russian warplanes have launched a major onslaught on rebel-held parts of the northern city of Aleppo. Syrian troops pushed ahead in their offensive in Aleppo on Saturday capturing the strategic Um al-Shuqeef hill near the Palestinian refugee camp of Handarat that government forces captured from rebels earlier this week, according to state TV. The hill is on the northern edge of the Aleppo, Syria's largest city and former commercial center. </p> <p>The al Qaeda-linked Ahrar al-Sham militant group said rebels regained control Saturday of several positions they lost in Aleppo in the Bustan al-Basha neighborhood. State media said 13 people were wounded when rebels shelled the central government-held neighborhood of Midan.</p> <p>Adding to the propaganda, airstrikes on Aleppo struck a hospital in the eastern rebel-held neighborhood of Sakhour putting it out of service, according to the Britain-based Syrian Observatory for Human Rights, the same entity that created the infamous doctored 2013 YouTube video.&nbsp; </p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/09/14/ap%20syria_0.jpg" width="500" height="333" /></p> <p>Opposition activist Ahmad Alkhatib described the hospital, known as M10, as one of the largest in Aleppo. He posted photographs on his Twitter account showing the damage including beds covered with dust, a hole in its roof and debris covering the street outside. A doctor at the hospital told the Aleppo Media Center, an activist collective, that thousands of people were treated in the compound in the past adding that two people were killed in Saturday's airstrikes and several were wounded. </p> <p>"A real catastrophe will hit medical institutions in Aleppo if the direct shelling continues to target hospitals and clinics," said the doctor whose name was not given. He said the whole hospital is out of service. </p> <p>In a familiar repeat of the 2013 media narrative, opposition activists have blamed the President Bashar Assad's forces and Russia for airstrikes that hit Civil Defense units and clinics in the city where eastern rebel-held neighborhoods are besieged by government forces and pro-government militiamen.</p> <p>On Friday, the international medical humanitarian organization Doctors Without Borders demanded that the Syrian government and its allies "halt the indiscriminate bombing that has killed and wounded hundreds of civilians_many of them children," over the past week in Aleppo. "Bombs are raining from Syria-led coalition planes and the whole of east Aleppo has become a giant kill box," said Xisco Villalonga, director of operations for the group. "The Syrian government must stop the indiscriminate bombing, and Russia as an indispensable political and military ally of Syria has the responsibility to exert the pressure to stop this."</p> <p>It said from Sept. 21 to 26, hospitals still functioning in Aleppo reported receiving more than 822 wounded, including at least 221 children, and more than 278 dead bodies_including 96 children_according to the Directorate of Health in east Aleppo.&nbsp; Sweden's Foreign Minister Margot Wallstrom criticized attacks on civilian targets writing on her Twitter account: "Unacceptable to bomb civilians, children and hospitals in #Aleppo. No humanity. Assad &amp; Russia moving further away from peace."</p> <p>Surprisingly, few if any in the western media have complained about the thousands of civilians killed by the US-backed Saudi bombing campaign in neighboring Yemen. </p> <p>* * * </p> <p>Meanwhile, according to leaked closed-door comments by US Secretary of State John Kerry it was revealed how angry John Kerry is about being unable to topple President Bashar Assad by military means.</p> <p>The <a href="http://www.nytimes.com/interactive/2016/09/30/world/middleeast/john-kerry-syria-audio.html?_r=0">New York Times previously acquired a </a>taped conversation between the US<br /> Secretary of State and two dozen Syrian civilians from education,<br /> rescue, and medical groups working in rebel-held areas, during a meeting<br /> on the sidelines of the United Nations General Assembly. <strong>“I've argued for use of force. I stood up. I’m the guy who stood up and announced we’re going to attack Assad because of the weapons, and then you know things evolved into a different process,”</strong> the Secretary of State said in the tape. </p> <p>He told the civilians that “you have nobody more frustrated than we are (the US)” that the Syrian issue is now being solved diplomatically. Kerry also warned the Syrians, who sounded clearly unhappy with Washington’s contribution, that attempts to intervene militarily or provide more support to the rebels by the US may have a reverse effect. </p> <p>“The problem is that, you know, you get, quote, ‘enforcers’ in there and then everybody ups the ante, right? Russia puts in more, Iran puts in more; Hezbollah is there more and Nusra is more; and Saudi Arabia and Turkey put all their surrogate money in, and you all are destroyed,” the diplomat explained.</p> <p>* * * </p> <p>We expect the Syrian proxy war to continue to escalate until either Assad is removed, which however seems unlikely with Russian, and now Chinese backing, behind the Syrian president, or until the proxy war escalates into a full blown world war once US troops are sent to Syria, a move which would be met by a proportional response by Russia and, perhaps, China. </p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="460" height="306" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/ap%20syria.jpg?1475345921" /> </div> </div> </div> http://www.zerohedge.com/news/2016-10-01/russia-warns-us-military-aggression#comments China Iran Middle East New York Times Saudi Arabia Turkey Twitter Twitter Sat, 01 Oct 2016 18:22:51 +0000 Tyler Durden 573700 at http://www.zerohedge.com Equities, Bonds and Oil Technical Analysis (Video) http://www.zerohedge.com/news/2016-10-01/equities-bonds-and-oil-technical-analysis-video <p>By <a href="http://www.econmatters.com/search/label/EconMatters"><span style="text-decoration: underline;"><span style="color: #0066cc;">EconMatters</span></span></a> </p> <p><em><br /></em> </p> <div class="separator" style="clear: both; text-align: center;"><a title="Open in new window" class="external" href="https://1.bp.blogspot.com/-0hc7MgUZ_hY/V-_1cVPKK5I/AAAAAAAAL7k/yKK9D68zglk8YNI-9r_-W__V9PoAoE7ZACLcB/s1600/December.jpg" target="_blank" style="margin-left: 1em; margin-right: 1em;"><img src="https://1.bp.blogspot.com/-0hc7MgUZ_hY/V-_1cVPKK5I/AAAAAAAAL7k/yKK9D68zglk8YNI-9r_-W__V9PoAoE7ZACLcB/s400/December.jpg" width="400" height="250" border="0" /></a></div> <p> We look at the S&amp;P 500, Oil and the 10-Year Bond Markets in this video focusing on the key technical areas to watch for in the futures market. These are 3 key markets to watch every week along with Gold and the VIX.</p> <div class="separator" style="clear: both; text-align: center;"><iframe src="https://www.youtube.com/embed/jZmfV81a6MQ?feature=player_embedded" width="320" height="266" frameborder="0"></iframe></div> <p>&nbsp;</p> <div class="separator" style="clear: both; text-align: center;"><a title="Open in new window" class="external" href="https://3.bp.blogspot.com/-CadX4sBXPWU/V-_5OYJk1VI/AAAAAAAAL7w/TE8VDvfExOQUd1eOFZVoCliZ-HuyVbG4wCLcB/s1600/untitled.png" target="_blank" style="margin-left: 1em; margin-right: 1em;"><img src="https://3.bp.blogspot.com/-CadX4sBXPWU/V-_5OYJk1VI/AAAAAAAAL7w/TE8VDvfExOQUd1eOFZVoCliZ-HuyVbG4wCLcB/s640/untitled.png" width="640" height="362" border="0" /></a></div> <div class="separator" style="clear: both; text-align: center;"><a title="Open in new window" class="external" href="https://1.bp.blogspot.com/-Fh58xSayqKM/V-_5TWAFhuI/AAAAAAAAL70/V1kw2ygwNKUqiaivGXHi1wXMvTlqFazCACLcB/s1600/untitled1.png" target="_blank" style="margin-left: 1em; margin-right: 1em;"><img src="https://1.bp.blogspot.com/-Fh58xSayqKM/V-_5TWAFhuI/AAAAAAAAL70/V1kw2ygwNKUqiaivGXHi1wXMvTlqFazCACLcB/s640/untitled1.png" width="640" height="362" border="0" /></a></div> <div class="separator" style="clear: both; text-align: center;"><a title="Open in new window" class="external" href="https://3.bp.blogspot.com/-3Cj-yiv7r6Q/V-_56EoM5VI/AAAAAAAAL78/qRv8OIxsIrA_EIB2aaI4b_h8TzsqoK-fQCLcB/s1600/untitled11.png" target="_blank" style="margin-left: 1em; margin-right: 1em;"><img src="https://3.bp.blogspot.com/-3Cj-yiv7r6Q/V-_56EoM5VI/AAAAAAAAL78/qRv8OIxsIrA_EIB2aaI4b_h8TzsqoK-fQCLcB/s640/untitled11.png" width="640" height="362" border="0" /></a></div> <div class="separator" style="clear: both; text-align: center;"><a title="Open in new window" class="external" href="https://1.bp.blogspot.com/-YNStCuql6Ac/V-_6Fuhx7JI/AAAAAAAAL8A/fF1jdGouUEoJhWpmNn8hI25hVtN1AKn1wCLcB/s1600/untitled2.png" target="_blank" style="margin-left: 1em; margin-right: 1em;"><img src="https://1.bp.blogspot.com/-YNStCuql6Ac/V-_6Fuhx7JI/AAAAAAAAL8A/fF1jdGouUEoJhWpmNn8hI25hVtN1AKn1wCLcB/s640/untitled2.png" width="640" height="362" border="0" /></a></div> <div class="separator" style="clear: both; text-align: center;"><a title="Open in new window" class="external" href="https://2.bp.blogspot.com/-sypvp50sjxM/V-_6M3zPEtI/AAAAAAAAL8E/YrCD4VXWXj4vE3Df7xigPfFPgEUlErxygCLcB/s1600/untitled22.png" target="_blank" style="margin-left: 1em; margin-right: 1em;"><img src="https://2.bp.blogspot.com/-sypvp50sjxM/V-_6M3zPEtI/AAAAAAAAL8E/YrCD4VXWXj4vE3Df7xigPfFPgEUlErxygCLcB/s640/untitled22.png" width="640" height="362" border="0" /></a></div> <div class="separator" style="clear: both; text-align: center;"><a title="Open in new window" class="external" href="https://4.bp.blogspot.com/-Gb9f73njwN4/V-_6PmeDBcI/AAAAAAAAL8I/5OzK80HCChE_z7oebk9m7070BfCYxSPSACLcB/s1600/untitled222.png" target="_blank" style="margin-left: 1em; margin-right: 1em;"><img src="https://4.bp.blogspot.com/-Gb9f73njwN4/V-_6PmeDBcI/AAAAAAAAL8I/5OzK80HCChE_z7oebk9m7070BfCYxSPSACLcB/s640/untitled222.png" width="640" height="362" border="0" /></a></div> <div class="separator" style="clear: both; text-align: center;"><a title="Open in new window" class="external" href="https://1.bp.blogspot.com/-EEdPFVO3-CI/V-_6YsNpE-I/AAAAAAAAL8Q/rZNx0AyNng8_r9-OtxIwinpx5OBvOXUjgCLcB/s1600/untitled3.png" target="_blank" style="margin-left: 1em; margin-right: 1em;"><img src="https://1.bp.blogspot.com/-EEdPFVO3-CI/V-_6YsNpE-I/AAAAAAAAL8Q/rZNx0AyNng8_r9-OtxIwinpx5OBvOXUjgCLcB/s640/untitled3.png" width="640" height="362" border="0" /></a></div> <div class="separator" style="clear: both; text-align: center;"><a title="Open in new window" class="external" href="https://3.bp.blogspot.com/-LLkqQg1HvkY/V-_6bSHMjnI/AAAAAAAAL8U/gMSdG1SKoQkCe0tMgc2taGSD_7aA-1GZwCLcB/s1600/333.png" target="_blank" style="margin-left: 1em; margin-right: 1em;"><img src="https://3.bp.blogspot.com/-LLkqQg1HvkY/V-_6bSHMjnI/AAAAAAAAL8U/gMSdG1SKoQkCe0tMgc2taGSD_7aA-1GZwCLcB/s640/333.png" width="640" height="362" border="0" /></a></div> <div class="separator" style="clear: both; text-align: center;"><a title="Open in new window" class="external" href="https://3.bp.blogspot.com/-eQiPG9YisHU/V-_6ldDnpAI/AAAAAAAAL8Y/cWbyKx6F81stcTMAI4gd3Aq3xL4zqu0GQCLcB/s1600/untitled3333.png" target="_blank" style="margin-left: 1em; margin-right: 1em;"><img src="https://3.bp.blogspot.com/-eQiPG9YisHU/V-_6ldDnpAI/AAAAAAAAL8Y/cWbyKx6F81stcTMAI4gd3Aq3xL4zqu0GQCLcB/s640/untitled3333.png" width="640" height="362" border="0" /></a></div> <p> © <a href="http://www.econmatters.com/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">EconMatters</span></span></a> All Rights Reserved | <a title="Open in new window" class="external" href="http://www.facebook.com/EconMatters" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Facebook</span></span></a> | <a title="Open in new window" class="external" href="http://twitter.com/#!/EconMatters" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Twitter</span></span></a> | <a title="Open in new window" class="external" href="http://www.youtube.com/c/Econmatters" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">YouTube</span></span></a> | <a title="Open in new window" class="external" href="http://feedburner.google.com/fb/a/mailverify?uri=EconForecast" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Email Digest</span></span></a> | <a title="Open in new window" class="external" href="http://astore.amazon.com/econforecast-20?_encoding=UTF8&amp;node=80" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Kindle</span></span></a><strong>&nbsp;</strong><em>&nbsp;</em><span style="text-decoration: underline;">&nbsp;</span><span style="text-decoration: line-through;">&nbsp;</span></p> http://www.zerohedge.com/news/2016-10-01/equities-bonds-and-oil-technical-analysis-video#comments Bond Futures market Technical Analysis Twitter Twitter Sat, 01 Oct 2016 18:10:43 +0000 EconMatters 573701 at http://www.zerohedge.com Judge Denies Attempt To Block Transfer Of Internet Oversight http://www.zerohedge.com/news/2016-10-01/judge-denies-attempt-block-transfer-internet-oversight <p>As <a href="http://www.zerohedge.com/news/2016-09-29/4-states-sue-block-obamas-internet-transition-plan">reported last week</a>, in a last ditch effort to block Obama's plan to allow the US Commerce Department to hand over oversight of the Internet Corporation for Assigned Names and Numbers (ICANN), or the "Internet's address book" to a multi-stakeholder community - which includes the technical community, businesses, civil society and foreign governments - 4 state attorneys general from Arizona, Oklahoma, Nevada and Texas filed a lawsuit in a Texas federal court alleging that the transition, in the absence of congressional approval, amounts to an illegal forfeiture of U.S. government property. The lawsuit also expressed concern that the reorganized ICANN would be so unchecked that it could “effectively enable or prohibit speech on the Internet.”</p> <p>Texas Attorney General Ken Paxton, Arizona Attorney General Mark Brnovich, Oklahoma Attorney General Scott Pruitt and Nevada Attorney General Paul Laxalt filed a lawsuit on Wednesday night to stop the White House's proposed transition of ICANN functions. A primary function of ICANN is done by its Internet Assigned Numbers Authority (IANA) department, which coordinates the internet's domain name and IP address system.&nbsp; </p> <p>However, as of midnight last night, the transfer is officially complete after Obama-appointed US District Judge George Hanks ruled on Friday afternoon that the transfer of internet domain systems oversight to an international governing body can move forward, overruling the opposition from several state attorneys general and lawmakers.&nbsp; </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/09/14/icann%20ruling.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/09/14/icann%20ruling_0.jpg" width="500" height="498" /></a></p> <p>As a result, the transfer of the Internet Corporation for Assigned Names and Numbers (ICANN) from the U.S. to an international entity representing 162 countries will proceed on Saturday as planned.</p> <p>As <a href="http://www.wnd.com/2016/09/obama-appointed-judge-lets-internet-giveaway-proceed/">WND reported</a>, it was the late Phyllis Schlafly who, earlier this year, characterized Obama’s plan as “like telling the fox to guard the chicken coop,” trusting the likes of Cuba, Venezuela and China to ensure the continued freedom of the Web. </p> <p>The transfer of oversight to an obscure non-profit called the Internet Association for Assigned Names and Numbers, ICANN, set for Saturday, “could be the most dangerous use yet of Obama’s now-famous pen,” the conservative icon said at the time. The states’ lawsuit against the National Telecommunications and Information Administration, the Department of Commerce and others sought a halt to the transfer.</p> <p>Filed in U.S. District Court in Galveston, Texas, the lawsuit argued the U.S. funded the foundations of the Internet and for decades has been managing it appropriately, including through contracts such as the NTIA’s agreement with ICANN to perform Internet Assigned Numbers Authority functions.</p> <p>The <a href="https://www.texasattorneygeneral.gov/files/epress/Net_Complaint_-_FILED.pdf?cachebuster%3A77=&amp;utm_content=&amp;utm_medium=email&amp;utm_name=&amp;utm_source=govdelivery&amp;utm_term=">complaint </a>cited constitutional concerns and security risks of potentially losing the .mil and .gov domains for the military and government, respectively. </p> <p>Republican lawmakers Sens. Ted Cruz (Texas), John Thune (S.D.) and others had previously pushed to include language delaying the transition in the continuing resolution to fund the government, but were unsuccessful.</p> <p>Presidential nominee Donald Trump also backed the effort to keep control of the organization in U.S. hands. </p> <p>As WND adds, the lawsuit wasn’t the only opposition that has arisen in the fourth quarter. A coalition of 77 national security, cybersecurity and industry leaders wrote a letter to Defense Secretary Ash Carter and Gen. Joseph Dunford, the chairman of the Joint Chiefs of Staff, just days ago asking for intervention.</p> <p>“As individuals with extensive, first-hand experience with protecting our national security, we write to urge you to intervene in opposition to an imminent action that would, in our judgment, cause profound and irreversible damage to the United States’ vital interests,” the letter said. </p> <p>“Indeed, there is, to our knowledge, no compelling reason for exposing the national security to such a risk by transferring our remaining control of the Internet in this way at this time. In light of the looming deadline, we feel compelled to urge you to impress upon President Obama that the contract between NTIA and ICANN cannot be safely terminated at this point.” </p> <p>The signers included former Assistant Secretary of Defense Frank Gaffney Jr., former Deputy Under Secretary of Defense for Intelligence Lt. Gen. William “Jerry” Boykin (Ret.), former Senate Minority Whip Jon Kyl, former Director of the Defense Nuclear Agency Vice Adm. Robert Monroe (Ret.) and former Chief Assistant U.S. Attorney for the Southern District of New York Andrew McCarthy, among others. </p> <p>They warned: “In the absence of U.S. government involvement in IANA, it seems possible that, over time, foreign powers – including potentially or actually hostile ones – will be able to influence the IANA process. Even coercing the delay in approving IP addresses could impact military capabilities. From a broader view, given the well-documented ambition of these actors to restrict freedom of expression and/or entrepreneurial activity on the Internet, such a transfer of authority to ICANN could have far-reaching and undesirable consequences for untold numbers of people worldwide.” </p> <p>Just a few days earlier, GOP senators, including Chuck Grassley, Ted Crux, Roy Blunt, Richard Burr and Ron Johnson, released a statement opposing the giveaway. </p> <p>“It is profoundly disappointing that the Obama administration has decided to press on with its plan to relinquish United States oversight of crucial Internet functions, even though Congress has not given its approval. For years, there has been a bipartisan understanding that the ICANN transition is premature and that critical questions remain unanswered about the influence of authoritarian regimes in Internet governance, the protection of free speech, the effect on national security, and impacts on consumers, just to name a few,” they said. </p> <p>“Without adequate answers to these questions, it would be irresponsible to allow the transition to occur in 15 days simply because of an artificial deadline set by the Obama administration. </p> <p>“In fact, Democrats at both the state and national level have echoed many of these concerns. For example, former President Bill Clinton has warned that ‘[a] lot of people who have been trying to take this authority away from the U.S. want to do it for the sole purpose of cracking down on Internet freedom and limiting it and having governments protect their backsides instead of empower[ing] their people.’ </p> <p>“The issue of Internet freedom should unite us Americans – Republicans, Democrats and independents alike. Partisanship and political gamesmanship have no place when it comes to the Internet, basic principles of freedom, and the right of individuals in our great nation and across the globe to speak online free from censorship.” In the lawsuit, the states warned that .gov addresses are at risk.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/09/14/internet%20for%20sale.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/09/14/internet%20for%20sale_0.jpg" width="500" height="367" /></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="600" height="394" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/icann.jpg?1475342461" /> </div> </div> </div> http://www.zerohedge.com/news/2016-10-01/judge-denies-attempt-block-transfer-internet-oversight#comments China Department Of Commerce Donald Trump Jon Kyl national security Obama Administration Oklahoma President Obama Sat, 01 Oct 2016 17:53:18 +0000 Tyler Durden 573699 at http://www.zerohedge.com Caught On Tape: Militarized Police Turn Peaceful Native American Protest Into War Zone http://www.zerohedge.com/news/2016-10-01/caught-tape-militarized-police-turn-peaceful-native-american-protest-war-zone <p><a href="http://theantimedia.org/militarized-native-american-war-zone/"><em>Submitted by Nick Bernabe via TheAntiMedia.org,</em></a></p> <p>Following the <a href="http://theantimedia.org/national-guard-north-dakota-pipeline/" target="_blank">activation</a> of the North Dakota National Guard on September 8, <strong>peaceful Dakota Access Pipeline protests quickly became flooded with militarized law enforcement</strong>. Native American activists, or &ldquo;water protectors,&rdquo; have been standing in the way of the pipeline&rsquo;s construction for months, successfully blocking it at the <a href="http://sacredstonecamp.org/" target="_blank">Sacred Stone&nbsp;camp</a> near the Missouri River.</p> <p>When the situation initially took a turn for the worse earlier this month, <strong>journalists on the ground who were broadcasting live video complained Facebook was blocking their streams</strong>. Now, videos and images from Wednesday are emerging that show an overwhelmingly militarized response to the peaceful prayer and protest.</p> <p><iframe frameborder="0" height="400" scrolling="no" src="https://vid.me/e/PBbp?stats=1" width="400"></iframe></p> <p>&nbsp;</p> <blockquote class="twitter-video" data-lang="en"><p dir="ltr" lang="en">Water Protectors Prayed at <a href="https://twitter.com/hashtag/DakotaAccessPipeline?src=hash">#DakotaAccessPipeline</a> site Police arrived with Armored Vehicles &amp; Assault Rifles <a href="https://t.co/AX1lkIDbVR">https://t.co/AX1lkIDbVR</a> <a href="https://twitter.com/hashtag/NoDAPL?src=hash">#NoDAPL</a> <a href="https://t.co/oMnN3d911P">pic.twitter.com/oMnN3d911P</a></p> <p>&mdash; Unicorn Riot (@UR_Ninja) <a href="https://twitter.com/UR_Ninja/status/781284850745638912">September 29, 2016</a></p></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script><blockquote class="twitter-tweet" data-lang="en"><p dir="ltr" lang="en">This is what it looks like when corporations&#39; interests are at stake. <a href="https://twitter.com/hashtag/NoDAPL?src=hash">#NoDAPL</a> protestors are being accosted by ND police, &amp; &quot;sprayed by air&quot; <a href="https://t.co/p3hEc64meZ">pic.twitter.com/p3hEc64meZ</a></p> <p>&mdash; Our Revolución (@Latinos4Bernie) <a href="https://twitter.com/Latinos4Bernie/status/781282031393136640">September 28, 2016</a></p></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script><blockquote class="twitter-tweet" data-lang="en"><p dir="ltr" lang="en">This is outrageous!! Police in <a href="https://twitter.com/hashtag/NoDAPL?src=hash">#NoDAPL</a> using loaded guns on Protectors. There are Elders and children there!</p> <p>&mdash; Mark Amaru (@markamaru888) <a href="https://twitter.com/markamaru888/status/781291622164205574">September 29, 2016</a></p></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script><p>&nbsp;</p> <p><strong>In the video, law enforcement can be seen using armored vehicles (MRAPs), shotguns, assault rifles, riot gear, tear gas, and helicopters to disperse the protesters.</strong> The police have turned peaceful prayers and acts of civil disobedience into a what now resembles a war zone. The Morton County Sheriff&rsquo;s department confirmed to <em>Anti-Media</em> that 21 water protectors were arrested Wednesday. Several water protectors at the scene said a plane was used to drop tear gas &mdash; or some other form of crowd dispersants &mdash; on the group, though the Morton County Sheriff&rsquo;s department has&nbsp;<a href="http://heavy.com/news/2016/09/dakota-access-pipeline-protests-dapl-armored-truck-police-plane-arrests-weapons-videos-photos-vehicles-militarized-military-latest-standing-rock/">denied</a> these allegations.</p> <p>&nbsp;</p> <blockquote class="twitter-tweet" data-lang="en"><p dir="ltr" lang="en">Crop duster with large fan emission &amp; the plane from today. <a href="https://twitter.com/hashtag/NoDAPL?src=hash">#NoDAPL</a> <a href="https://t.co/lDq8ZCNcT3">pic.twitter.com/lDq8ZCNcT3</a></p> <p>&mdash; Martie Simmons (@msimmons444) <a href="https://twitter.com/msimmons444/status/781283877411172352">September 29, 2016</a></p></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script><p>&nbsp;</p> <p><strong>The protests are rooted in the Standing Rock Sioux tribe&rsquo;s concerns that the Dakota Access Pipeline would pollute the area&rsquo;s water supply and violate tribal treaties</strong>. Hundreds of Native American tribes have joined the blockade in solidarity. Landowners also joined the ongoing demonstrations after their land was seized through eminent domain to build the pipeline.</p> <p>The protests <a href="http://www.cnn.com/2016/09/09/us/dakota-access-pipeline/" target="_blank">received</a> mainstream news coverage after the Department of Justice ordered a halt to construction on land owned by the Army Corps of Engineers. <strong>However, construction continues outside that area, and <a href="http://theantimedia.org/media-silent-dakota-access-pipeline-iowa/" target="_blank">protests are growing</a>&nbsp;more frequent and direct.</strong></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="743" height="298" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20161001_DAPL.jpg?1475338482" /> </div> </div> </div> http://www.zerohedge.com/news/2016-10-01/caught-tape-militarized-police-turn-peaceful-native-american-protest-war-zone#comments Department of Justice Twitter Twitter Sat, 01 Oct 2016 17:20:00 +0000 Tyler Durden 573695 at http://www.zerohedge.com Spot The Odd One Out http://www.zerohedge.com/news/2016-10-01/spot-odd-one-out <p><em>"Safe"?</em></p> <p><em><br /></em></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/09/28/20161001_spot.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/09/28/20161001_spot_0.jpg" width="600" height="418" /></a></p> <p><a href="http://michaelpramirez.com/safety.html"><em>Source: MichaelPRamirez.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="1080" height="753" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20161001_spot.jpg?1475337530" /> </div> </div> </div> http://www.zerohedge.com/news/2016-10-01/spot-odd-one-out#comments Sat, 01 Oct 2016 16:45:00 +0000 Tyler Durden 573694 at http://www.zerohedge.com In Hacked Fundraiser Recording, Hillary Mocks Bernie Supporters "Living In Their Parents’ Basement" http://www.zerohedge.com/news/2016-09-30/hacked-recording-hillary-mocks-bernie-supporters-living-their-parents%E2%80%99-basement <p>The reason why the Trump campaign has been so eager to find transcripts and recordings of the private speeches Hillary Clinton has delivered during her extensive, lucrative speaking career, is because it is there that she reveals that rare glimpse into what she truly thinks, or at least what $250,000 per hour will get her to believe. One such example is a recently hacked recording of Hillary Clinton, where in a private conversation with campaign donors in February, Clinton distanced herself from progressive goals like “free college, free healthcare” and described her place on the political spectrum as spanning from the center-left to the center-right.</p> <p>The newly disclosed comments first <a href="https://theintercept.com/2016/09/30/hillary-clinton-center-right/">noticed by the Intercept</a>, came in audio from hacked emails revealed this week by the <a href="http://freebeacon.com/national-security/clinton-privately-opposed-nuclear-upgrade/">Washington Free Beacon</a>. Clinton was speaking at a Virginia fundraiser hosted by Beatrice Welters, the <a href="http://www.guardian.co.tt/news/2012-11-11/orphan-us-ambassador">former U.S. ambassador to Trinidad and Tobago</a>, and her husband <a href="http://blackivygroup.com/twelters/">Anthony Welters</a>, the executive chairman of an investment consulting firm founded by former Clinton aid Cheryl Mills.</p> <p>The hacked audio provides another peek into the ideological chameleon that Hillary is on a day to day basis. As the Intercept notes, "Clinton has been inconsistent in the past about espousing political labels. She has at times touted herself as stalwart liberal. For instance, <a href="https://www.theguardian.com/us-news/2015/jul/04/clinton-on-defensive-new-hampshire-iowa">she said last July</a>: “I take a backseat to no one when you look at my record in standing up and fighting for progressive values.” But a few months later, she <a href="http://www.cnn.com/2015/09/10/politics/hillary-clinton-democrat-progressive/">told a group in Ohio</a>: “You know, I get accused of being kind of moderate and center. I plead guilty.”</p> <p>In one segment of the leaked audio, Hillary focused on her opponent at the time, Bernie Sanders, was pointed to successful programs in Scandinavia which provide universal daycare, family leave, and government sponsored healthcare and college education, as policies that he would seek to adopt. "Progressive" Hillary mocked the compared idea of "free college, free healthcare" to the "extreme" ideas promulgated by the right, which include "populism, nationalism and xenophobia."</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>It is important to recognize what’s going on in this election. Everybody who’s ever been in an election that I’m aware of is quite bewildered because there is a strain of, on the one hand, <strong>the kind of populist, nationalist, xenophobic, discriminatory kind of approach that we hear too much of from the Republican candidates.</strong> And on the other side, there’s just a <strong>deep desire to believe that we can have free college, free healthcare, that what we’ve done hasn’t gone far enough</strong>, and that we just need to, you know,&nbsp; go as far as, you know, Scandinavia, whatever that means, and half the people don’t know what that means, but it’s something that they deeply feel. So as a friend of mine said the other day,<strong> I am occupying from the center-left to the center-right. </strong>And I don’t have much company there. Because it is difficult when you’re running to be president, and you understand how hard the job is —&nbsp; I don’t want to overpromise. I don’t want to tell people things that I know we cannot do. </p> </blockquote> <p>Recording below::</p> <p><iframe src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/285455638&amp;auto_play=false&amp;hide_related=false&amp;show_comments=true&amp;show_user=true&amp;show_reposts=false&amp;visual=true" width="500" height="100" frameborder="no" scrolling="no"></iframe></p> <p>&nbsp;</p> <p>Clinton then went on to explain why she felt so many Democratic voters, many of whom "live in their parents' basement" were gravitating to Sanders. Ironically, for a presidential candidate that touts the economic recovery the US is going through, she admits these "children of the Great Recession" don't see much of a future...</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Some are new to politics completely. They’re children of the Great Recession. <strong>And they are living in their parents’ basement</strong>. They feel they got their education and the jobs that are available to them are not at all what they envisioned for themselves. And they don’t see much of a future. </p> </blockquote> <p>... and with an entire generation unexpectedly finding itself in a dead-end economy, it provides a perfect incubator for what according to Hillary is an army of Bernie supporters: "if you’re feeling like you’re consigned to, you know, being a barista... <strong>then the idea that maybe, just maybe, you could be part of a political revolution is pretty appealing."</strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>I met with a group of young black millennials today and you know one of the young women said, “<strong>You know, none of us feel that we have the job that we should have gotten out of college. And we don’t believe the job market is going to give us much of a chance.</strong>” So that is a mindset that is really affecting their politics. And so if you’re feeling like you’re consigned to, you know, being a barista, or you know, some other job that doesn’t pay a lot, and doesn’t have some other ladder of opportunity attached to it, <strong>then the idea that maybe, just maybe, you could be part of a political revolution is pretty appealing</strong>.&nbsp;</p> </blockquote> <p>One wonders whose fault it is that millions of young people are stuck in dead end jobs, living in their parents basement, while both Obama and Hillary make TV appearances touting the strength of the economic recovery.</p> <p>But the punchline was what Hillary, who has been scrambling to secure the much-needed Millennial vote in recent weeks, truly thought about about the millions of young people whose vote she is trying to win: a diatribe of mockery, in which she describes the concept of a political revolution as a "false promise" which has attracted all these disillusioned and disheartened young people "living in their parents' basement." Does Hillary have anything to offer them? No, but she desperately needs their vote, even if behind the scenes at generously paid private functions, she mocks them in front of all those present. </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>We should all be really understanding of that and should try to do the best we can not to be, you know, a wet blanket on idealism. We want people to be idealistic. We want them to set big goals... <strong>But those of us who understand this, who've worked in it know that it's a false promise. But I don't think you tell idealistic people, particularly young people that they've bought into a false promise</strong>. </p> </blockquote> <p>Especially when you are trying to secure their votes? </p> <p>Then again, considering the eagerness with which Bernie Sanders has endorsed Wall Street's favorite candidate, it is quite clear that the real "false promise" here was Sanders' "revolution" all along.&nbsp; We wonder if in light of this hack, if Bernie Sanders would care to make some statement why he is endosing the candidate who behind closed doors, openly mocks everything that his supporters believe in. </p> <p> <iframe src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/285459161&amp;auto_play=false&amp;hide_related=false&amp;show_comments=true&amp;show_user=true&amp;show_reposts=false&amp;visual=true" width="500" height="100" frameborder="no" scrolling="no"></iframe></p> <p>Clinton has been accused numerous times in the past of patronizing young Sanders supporters. On <a href="http://thehill.com/blogs/ballot-box/presidential-races/275089-clinton-i-feel-sorry-for-young-people-who-believe-sanders">Meet The Press </a>in April, Clinton said she said “I feel sorry sometimes for the young people” who believe Sanders’s claims about her <a href="http://www.huffingtonpost.com/entry/hillary-clinton-bundlers-fossil-fuel_us_55a8335ee4b04740a3df86c5">taking money </a>from the fossil fuel industry.</p> <p>During her remarks, she reiterated her belief that politics is the art of the possible, dismissing the more aspirational approach of Sanders and his supporters. “I want to be very clear about the progress I think we can make,” she said. There was no discussion of her view that the ideology of millions of progressive, young people is a false promise. </p> <p>And while America's young voters will be given an opportunity to respond to Hillary in just over 5 weeks time, one wonders what, in a world where Donald Trump's every word is brutally attacked by the pro-Clinton media. would emerge if even a handful of Hillary's Wall Street speech transcripts were the finally emerge. </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="1308" height="678" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/bernie%20hillary.jpg?1475287933" /> </div> </div> </div> http://www.zerohedge.com/news/2016-09-30/hacked-recording-hillary-mocks-bernie-supporters-living-their-parents%E2%80%99-basement#comments Bernie Sanders Meet The Press Nationalism None Ohio Recession recovery Sat, 01 Oct 2016 16:23:10 +0000 Tyler Durden 573686 at http://www.zerohedge.com The Biggest Heist In Human History http://www.zerohedge.com/news/2016-10-01/biggest-heist-human-history <p><a href="http://www.counterpunch.org/2016/09/30/the-biggest-heist-in-human-history/"><em>Submitted by Mike Whitney via Counterpunch.org,</em></a></p> <p>Here&rsquo;s your economics quiz for the day:</p> <p><em><u><strong>Question 1&ndash; What&nbsp;do you think would happen if you put&nbsp;$3 trillion into the financial system?</strong></u></em></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>a&ndash;Stock prices would rise</p> <p>b&ndash;Stock prices would&nbsp;fall</p> <p>c&ndash;Stock prices would stay the same</p> </blockquote> <p><u><em><strong>Question 2&ndash; What do you think would happen if you put $3 trillion into the economy? (Via fiscal stimulus for&nbsp;infrastructure projects, extended unemployment benefits, food stamps, etc)</strong></em></u></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>a&ndash;Activity would increase and the economy would grow</p> <p>b&ndash;Activity would slow&nbsp;and the economy would shrink</p> <p>c&ndash;Activity&nbsp;would stay the same, so growth&nbsp;would remain&nbsp;unchanged</p> </blockquote> <p>If you picked &ldquo;a&rdquo;&nbsp;for both questions, then&nbsp;pat yourself on the back because you got the right answers.</p> <p>Now try to answer&nbsp;this one,&nbsp;last &ldquo;bonus&rdquo; question:</p> <p><u><em><strong>Question 3&ndash; If adding money to the financial system boosts asset prices, and adding money to the economy boosts growth, then why did&nbsp;the Fed add $3 trillion to the financial system expecting the economy to grow?</strong></em></u></p> <p><strong>Is the Fed confused about how the economy works? Is the Fed confused about how the financial system works?</strong></p> <p>Probably not. There&rsquo;s probably some other explanation altogether, after all, why would someone put gas in their radiator when the gas-tank&nbsp;is empty.&nbsp;That&rsquo;s not going to provide fuel for the engine, is it? The same rule applies to stimulus.&nbsp;&nbsp;The only way&nbsp;stimulus can work is if&nbsp;its put&nbsp;where it&rsquo;s needed. And we can now say with 100 percent certainty, that the Fed&rsquo;s stimulus wasn&rsquo;t put where it was&nbsp;needed which is why it hasn&rsquo;t worked.</p> <p>How do we know that?</p> <p>Just take a look at GDP. Second Quarter GDP came in at a dismal 1.2 percent even though interest rates&nbsp;are still locked at&nbsp;near-zero&nbsp;and the Fed is still recycling the&nbsp;cash from maturing bonds into more government debt.</p> <p>Do you&nbsp;know what&nbsp;1.2 percent GDP means?</p> <p>It means that spending is weak, business investment is anemic, personal consumption is in the toilet&nbsp;and credit growth is kaput.&nbsp; It means that the&nbsp;economy has basically stopped breathing, been taken off the respirator and is being rushed&nbsp; to the morgue for embalming before rigor mortis sets in. It means that the people who are assigned the task of managing the system either don&rsquo;t know how the system&nbsp;works or have an ulterior motive for the policies they&rsquo;re using.</p> <p><strong>So, which is it? Is the Fed a moron or a liar?</strong></p> <p>Now we&rsquo;ve all heard the expression,&nbsp;&ldquo;The definition of insanity is doing the same thing over and over again, and expecting a different result&rdquo;.</p> <p>Well, the Fed has been doing the same thing for the last&nbsp;seven years &mdash;&nbsp;dumping money into the financial system&nbsp;while&nbsp;predicting&nbsp;stronger growth. That would seem to suggest that the Fed is insane, but is the Fed insane?</p> <p>No, in fact, the members of the FOMC are extremely-bright, well-educated professionals who have a solid grasp&nbsp;of the economy and the many intricacies of the financial system. These are smart guys, real smart.&nbsp;So, maybe they have an ulterior motive. Maybe that&rsquo;s why they&rsquo;ve stuck&nbsp;with the same failed policies&nbsp;all these years.</p> <p><strong>But if they have an ulterior motive,&nbsp; then what is it?&nbsp; What are they trying to achieve?</strong></p> <p>The easiest way to answer that question is by simply following the money. We&rsquo;ve already seen that QE and zero rates have done nothing for growth, so &ndash;the question is&ndash; where have these policies&nbsp;had the greatest impact?</p> <p><u><strong>Why, the stock market, of course!</strong></u></p> <p>Did you know that the Dow Jones Industrials (DJIA) bottomed on March 9, 2009 at 6,507.&nbsp; As of Thursday (9-15-16), the Dow finished the day at 18,211 nearly three times higher.&nbsp; The same goes&nbsp;for the S&amp;P 500 which slipped to 676 in March 2009, but rebounded to 2,147 as of yesterday afternoon. Then there&rsquo;s the Nasdaq which fared even better bouncing back from an abysmal 1,268 in 2009 to a lofty 5,249 yesterday.</p> <p><em><strong>Now if stocks rise due to fundamentals, then that&rsquo;s just great because it means the underlying strength&nbsp;of the economy is driving prices higher.&nbsp; But if stock prices rise because&nbsp;the people who are supposed to be the&nbsp; referees (The Fed)&nbsp;are gaming the system by printing up trillions of dollars&nbsp;and sticking it in the financial markets so&nbsp;their crooked friends can send their kids to Ivy League schools&nbsp;and&nbsp;drive around in Lamborghinis, then it&rsquo;s not so great.</strong></em></p> <p>When the Fed pumps liquidity directly into the financial system, that liquidity cannot accurately be called &ldquo;monetary stimulus&rdquo;.&nbsp;&nbsp;It&rsquo;s not stimulus anymore than if the Fed put a billion&nbsp;bucks into your fledgling-Podunk&nbsp;&nbsp;landscape business.&nbsp; It&rsquo;s&nbsp;a subsidy, a gift, a handout.&nbsp; Even so, $3 trillion is a lot of money, enough money to light a fire under stocks and send them into the stratosphere. Which it has. &nbsp;But let&rsquo;s not kid ourselves,&nbsp;&nbsp;&nbsp;stocks didn&rsquo;t triple&nbsp;because production, earnings and growth are all going great-guns. That&rsquo;s not it at all, in fact, they&rsquo;re all unusually weak.&nbsp; Stocks are&nbsp;in record territory because the Fed&rsquo;s relentless interventions have kept them elevated,&nbsp;which has propped&nbsp;up the insolvent banking system and generated gigantic profits for Wall Street.</p> <p>And while rising stock&nbsp;prices&nbsp;don&rsquo;t necessarily prove that the Fed has an ulterior motive; identifying the people who&nbsp;benefit from those inflated prices&nbsp;certainly does. After all, who owns stocks and bonds?</p> <p>We can break these people up into three separate groups; The pretty rich, the very rich and the filthy rich.&nbsp;&nbsp;These are the people who own stocks and&nbsp;who benefit from&nbsp;the Fed&rsquo;s policies.</p> <p><u><strong>So what does this tell us about the Fed&rsquo;s&nbsp;&ldquo;full employment, price stability&rdquo; mandate?</strong></u></p> <p><strong>It tells us its baloney.</strong> It tells us its&nbsp;public relations-hype designed to bamboozle the sheeple who can&rsquo;t see what&rsquo;s going on right beneath their noses.. It tells us the Fed has a secret mandate to assist the profit-accumulation process for the Kleptocrat class of&nbsp; ivy league moochers.&nbsp;(Wall Street) It tells us that the Fed&rsquo;s real job is implement the policies that best facilitate the upward distribution of wealth.&nbsp;&nbsp;It tells us that the Fed&rsquo;s so called &ldquo;independence&rdquo; is a complete and utter fraud&nbsp;&nbsp;and that if Janet Yellen&nbsp;or any of her&nbsp;meat-puppet-colleagues on the FOMC&nbsp;ever veered&nbsp;as much as a&nbsp;centimeter&nbsp;to the left of her corporate marching orders&ndash;&nbsp;they&rsquo;d find themselves&nbsp;wrapped in plastic-sheeting and gasping for air&nbsp;at the bottom of the East River in a pair of cement booties.</p> <p><strong>The whole idea that the mousy Ms Yellen is calling the shots for the world&rsquo;s most powerful financial institution is the most ridiculous thing I&rsquo;ve ever heard.&nbsp;Does anyone actually believe that rubbish?</strong></p> <p>Yellen is a public relations invention, a small but critical part of a larger charade that is intended to conceal the manner by which the vast bulk of the nation&rsquo;s wealth is transferred from one class to another. Let&rsquo;s call it The Great Central Bank Policy Swindle, because that&rsquo;s what it is. The Fed is merely an apparatchik agency that keeps its thumb on the scale to make sure all the loot goes to its bloodsucking constituents. That&rsquo;s how&nbsp;the system works.&nbsp; Here&rsquo;s a little background from an article at the WSWS:</p> <p>&ldquo;A new report issued by the Swiss bank Credit Suisse finds that global wealth inequality continues to worsen and has reached a new milestone, with the top 1 percent owning more of the world&rsquo;s assets than the bottom 99 percent combined.</p> <p>Of the estimated $250 trillion in global assets, the top 1 percent owned almost exactly 50 percent, while the bottom 50 percent of humanity owned collectively less than 1 percent. The richest 10 percent owned 87.7 percent of the world&rsquo;s wealth, leaving 12.3 percent for the bottom 90 percent of the population.&rdquo; (&ldquo;<a href="http://www.wsws.org/en/articles/2015/10/14/weal-o14.html">Top 1 percent own more than half of world&rsquo;s wealth</a>&ldquo;, World Socialist Web Site)</p> <p>But it&rsquo;s not just the fact that&nbsp;half of everything is owned by a handful of obscenely-wealthy, money-grubbing loafers. This same voracious crew of miscreants is&nbsp;pulling down the lions-share of the yearly income too.&nbsp; Check it out:</p> <p>&ldquo;The census data also reveals that income inequality in America remained virtually unchanged from 2014, with the wealthy in the top fifth of the population taking in about half of all household income, while the bottom fifth earned only 3.4 percent.&rdquo;&nbsp; (&ldquo;<a href="https://www.wsws.org/en/articles/2016/09/14/cens-s14.html">Despite increase in 2015, US household income still lags behind pre-recession levels</a>&ldquo;, Kate Randall, World Socialist web Site)</p> <p>So&nbsp;&ndash;not only do the&nbsp;plutocrats&nbsp;own half of everything on planet earth&ndash; their share of the booty is actually increasing every year. Nice, eh?</p> <p>The point is,&nbsp; none of this is accidental. These outcomes are the direct result of policy, the Fed&rsquo;s policies.&nbsp; And the Fed is not alone either. This greatly-accelerated class war is a now global phenom.&nbsp; Just look at this tidbit&nbsp;I picked up&nbsp; from an article at CNBC:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;Data from JPMorgan shows that the top 50 central banks around the world have cut rates 672 times since the collapse of Lehman Brothers, a figure that translates to an average of one interest rate cut every three trading days. This has also been combined with $24 trillion worth of asset purchases.&rdquo; (&ldquo;<a href="http://www.cnbc.com/2016/08/26/qe-infinity-are-we-heading-into-the-unknown.html?view=story&amp;%24DEVICE%24=native-android-mobile">QE Infinity: Are we heading into the unknown?</a>&ldquo;, CNBC)</p> </blockquote> <p><u><strong>$24 trillion!</strong></u></p> <p><u><strong>$24 trillion represents the biggest freaking&nbsp;bank heist&nbsp;in&nbsp;human history, and what do we have to show for it?</strong></u></p> <p>A big fat nothing, that&rsquo;s what! All the data is sagging and global growth has&nbsp;slowed to a crawl.&nbsp;It&rsquo;s like all the dough that was supposed to&nbsp;strengthen the fictitious recovery&nbsp;just vanished into thin air. Poof!</p> <p>So why hasn&rsquo;t that&nbsp; $24 trillion had more of an impact?&nbsp; Why isn&rsquo;t their more inflation, more activity, more spending, more consumption and more growth???</p> <p>It&rsquo;s because everywhere the global bank cartel has its tentacles, the same policies of austerity and QE have been adopted. (Japan, UK, EU, US etc) Everywhere you look it&rsquo;s caviar and Dom Perignon for the investor class and thin gruel and table scraps&nbsp;for&nbsp;everyone else. Everywhere economies are being gutted, looted, hollowed out by financial parasites who seek greater gain by holding down wages, slashing benefits and retirement, and eviscerating standards of living for ordinary working&nbsp;slobs while the big money honchos are living the life of Riley. Everywhere it&rsquo;s starve the beast but&nbsp;gorge the rich.</p> <p><u><strong>This is political economy writ large. Trump is right, the Fed is the most political institution in government. It IS the government, and it has an absolute stranglehold on the economy.</strong></u></p> <p>Is it any wonder why owners of wealth are no longer using their&nbsp;money to invest in future production or growth or retooling or building factories or anything. Instead, they&rsquo;re&nbsp;buying back&nbsp;their own shares, issuing fat dividends on&nbsp;droopy earnings, and shrinking their businesses in&nbsp;the relentless pursuit of short-term gain.</p> <p><strong>This type of destructive behavior didn&rsquo;t just appear out of the&nbsp;ether. </strong>Heck, no. The Fed&rsquo;s easy money policies created irresistible incentives for this reckless, suicidal behavior. That means the Fed is 100 percent responsible for the fragile condition of the financial system and the ginormous asset-price bubble that&rsquo;s headed lickety-split for the powerlines.</p> <p>But now it&rsquo;s all coming to a head. Now all the bigtime global institutions (IMF, BIS, WTO, OECD)&nbsp;are warning that a &ldquo;Hard Rain&rsquo;s a-gonna Fall&rdquo; and that the day of reckoning may be at hand. According to a recent report by the Organization for Economic Co-operation and Development (OECD), GDP-per-capita will grow only 1% in 2016, &ldquo;which is half the average in the two decades preceding the crisis.&rdquo;</p> <p>As it happens, the OECD report is no more apocalyptic then the others, it&rsquo;s just more explicit in what it expects to transpire.&nbsp;&nbsp; Here&rsquo;s more on the report from Wolf Street:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><u><em><strong>&ldquo;Financial instability risks are rising, including from exceptionally low interest rates and their effects on financial assets and real estate prices.&rdquo;&hellip;</strong></em></u></p> </blockquote> <p>Share prices have risen significantly in recent years in advanced economies, notably in the United States. By contrast, the growth of profits for non-financial companies has recently slowed to a modest pace, following a post-crisis recovery&hellip;</p> <p>A reassessment in financial markets of interest rates could result in substantial re-pricing of assets and heighten financial volatility even if interest rates were to remain below long-term averages&hellip;.&rdquo;</p> <p><em>(&ldquo;<a href="http://wolfstreet.com/2016/09/21/oecd-warns-fed-boj-ecb-of-asset-bubbles-risks-to-financial-stability-pinpoints-us-stocks-real-estate/">OECD Warns Fed, BOJ, ECB of Asset Bubbles, &ldquo;Risks to Financial Stability,&rdquo; Pinpoints US Stocks &amp; Real Estate</a> &ldquo;, Wolf Street)</em></p> <p>Okay, let&rsquo;s summarize: The global economy is slowing, corporate profits are tanking, monetary stimulus has lost its mojo, and financial instability risks are rising.</p> <p>Oh, and did you catch the part about&nbsp;&ldquo;a substantial re-pricing of assets&rdquo;.&nbsp;&nbsp;That&rsquo;s financial jargon for &ldquo;a crash&rdquo;, a big, thundering, cataclysmic, earth-shattering CRASH.&nbsp; The author is&nbsp;simply stating&nbsp;the obvious, that Central Banks have brought us to the brink of another&nbsp;gut-wrenching downward spiral&nbsp;followed by another excruciating financial crisis.</p> <p><strong>And it&rsquo;s all by design, the unavoidable result of the Fed&rsquo;s destabilizing, wealth-shifting policies.</strong></p> <p><u><em><strong>How many times are we going to go through this drill before we disband the Fed and start from scratch?</strong></em></u></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="500" height="272" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20161001_heist.jpg?1475337151" /> </div> </div> </div> http://www.zerohedge.com/news/2016-10-01/biggest-heist-human-history#comments B+ BIS Central Banks Credit Suisse ETC Global Economy Janet Yellen Japan Lehman Lehman Brothers NASDAQ None Personal Consumption Real estate recovery Unemployment Unemployment Benefits Volatility Sat, 01 Oct 2016 16:10:00 +0000 Tyler Durden 573693 at http://www.zerohedge.com And The Most Complained-About Nation In The World Trade Organization Is... http://www.zerohedge.com/news/2016-10-01/and-most-complained-about-nation-world-trade-organization <p><strong>Protectionist sentiment is running high in the US, </strong>with both presidential candidates citing the need to shield workers from the alleged harmful effects of foreign trade. So it is perhaps ironic that <em><strong>the nation that has the most complaints against it for violating trade agreements is...</strong></em></p> <p><span style="text-decoration: underline;"><strong>USA USA USA...</strong></span></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/09/28/20161001_trade.jpg"><img height="556" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/09/28/20161001_trade_0.jpg" width="600" /></a></p> <p><em>Chart: Goldman Sachs</em></p> <p>So USA has almost 4 times more complaints against it for violating agreements that Chynaa.. Protectionist That!</p> <p>As Goldman&#39;s Marina Grushin notes,<strong> public opinion seems to stand behind this view, as Pew surveys have found that roughly half of Americans believe trade destroys jobs and lowers wages, compared to only about 20% who think the opposite</strong>. Perhaps more surprising, a review of research on trade, jobs, and wage inequality over the last 25 years shows that economists are also increasingly emphasizing the costs that trade can impose on US workers.</p> <h3><u>Early days: Think tech, not trade</u></h3> <p><strong>Economic theory predicts that, in aggregate, trade benefits all parties</strong>; by importing goods that a trading partner can produce more efficiently, countries increase their consumption and welfare. But economists have also long recognized that trade leads the prices of labor to converge across borders. <strong><em>For developed countries, that pressures less-skilled workers, who find themselves effectively competing with cheaper foreign labor, and who face challenges in transitioning to more competitive parts of the economy.</em></strong></p> <p>As trade flourished in the 1970s and 1980s, its effects on labor markets attracted increasing attention. Between 1970 and 1990, goods trade rose from 8% to 15% of US GDP, while the share of manufacturing workers in US employment declined from 25% to 16%. Wage inequality increased, with the &ldquo;premium&rdquo; for a college vs. a high school graduate growing from around 45% to 60%. Economists agreed that blue-collar workers were being squeezed; the question was how much of it was due to trade.</p> <p><strong>For most researchers, the answer at the time was very little. </strong>Skill-biased technological change (e.g., the automation of routine tasks) and related productivity gains were generally deemed more important. Robert Lawrence and Matthew Slaughter (1993), for example, concluded from shifts in traded goods prices that trade contributed little to rising wage inequality. Paul Krugman (1994, 1995) similarly assigned trade a &ldquo;quantitatively minor&rdquo; role, and estimated that trade with less developed countries accounted for only around 10% of the increase in US wage disparity over the prior 20 years. Effects on employment were also deemed modest. By the estimates of Jeffrey Sachs and Howard Shatz (1994), trade with developing economies between 1978 and 1990 reduced US demand for lower-skilled manufacturing jobs by just 6.2%.</p> <p><strong>Some researchers did find more substantial effects. </strong>Translating the US trade deficit into an effective increase in the supply of less-skilled labor, George Borjas, Richard Freeman, and Lawrence Katz (1992) showed that trade accounted for up to 25% of the widening US wage gap between 1980 and 1985. And Adrian Wood (1994), contending that most studies understated the labor displaced by imports, concluded that trade reduced unskilled manufacturing employment in developed economies by 21.5%, more than three times the Sachs/Shatz estimate. Still, these views were in the minority; among more than 30 studies on wage inequality reviewed by William Cline (1997), most found that the adverse impacts of trade were minimal to modest. In short, the research acknowledged some losses from foreign trade, but emphasized overall gains.</p> <h3><u>The new view: A bigger role for trade</u></h3> <p>Between 1990 and 2010, developing economies&rsquo; share of world trade roughly doubled, to 38%, driven in large part by EM Asia and China&rsquo;s 2001 entry into the WTO. In the US, the college wage premium approached 80%, while the trade deficit widened well beyond prior extremes. These shifts prompted economists to revisit the conclusions of the 1990s with new data. <strong>Krugman wrote in 2008 that it was &ldquo;no longer safe&rdquo; to argue that trade&rsquo;s impact on inequality in developed economies was insignificant.</strong></p> <p>Indeed, the work that followed often pointed to greater costs from trade. In an update of Krugman&rsquo;s 1995 model, Josh Bivens (2013) estimated that trade with less developed countries accounted for one-third of the rise in US wage inequality between 1979 and 2011&mdash;and more than 90% of it after 1995. In another example, Michael Elsby, Bart Hobijn, and Aysegul Sahin (2013) found that import exposure could account for 85% of the 3.9pp decline in US workers&rsquo; share of national income over the prior 25 years.</p> <p><strong>Recent research has also highlighted the spillovers from pressure on US manufacturing. </strong>In one such study, Avraham Ebenstein and colleagues (2014) found that trade was pushing workers out of generally higher-paying manufacturing jobs and into lower-paying positions in other parts of the economy. Using census data on individual workers across industries, the authors estimated that people who switched occupations due to trade or offshoring saw their real wages fall 12-17% between 1984 and 2002.</p> <p><strong>China has played an important part in these developments, having increased its share of US imports to 21% in 2015 from only 6% in 1995.</strong> MIT&rsquo;s David Autor and other researchers (2013, 2016) mapped the exposure of 700+ US labor markets to this surge based on initial industry composition, and concluded that workers in more-exposed regions faced lower lifetime earnings, particularly if they were already at the lower end of the pay scale. By Autor&rsquo;s estimates, Chinese imports cost the US up to 2.4mn jobs between 1999 and 2011, of which nearly 1mn were in manufacturing. Others have found evidence of US jobs effectively &ldquo;moving&rdquo; abroad: Ebenstein et al (2012) noted that US job losses have corresponded with Chinese gains in the same sectors. That these shifts occurred even for routine tasks suggests, in their view, that US workers are being displaced by trade rather than technology.</p> <h3><u>When the facts change, I change my mind</u></h3> <p>The recent research has not invalidated earlier findings; indeed, the trade landscape has changed considerably since the &ldquo;first wave&rdquo; of analysis. More importantly, economists remain proponents of free trade (and, to be sure, some maintain that trade is not an important driver of wage inequality). However, the tone around trade appears to be shifting toward a greater acknowledgment of concentrated losses rather than an affirmation of overall gains. In the words of Harvard University&rsquo;s Dani Rodrik, <em><strong>&ldquo;The populist rhetoric on trade may be excessive, but few deny any longer that the underlying grievances are real.&rdquo;</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="202" height="119" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20161001_trade1.jpg?1475335887" /> </div> </div> </div> http://www.zerohedge.com/news/2016-10-01/and-most-complained-about-nation-world-trade-organization#comments China goldman sachs Goldman Sachs Krugman Paul Krugman Trade Deficit World Trade Sat, 01 Oct 2016 15:35:00 +0000 Tyler Durden 573692 at http://www.zerohedge.com