The ragged Keynesian excuse that all will be well in Japan once the jump in the consumption tax from 5% to 8% is fully digested is false. Here’s the problem: this is just the beginning of an endless march upwards of Japan’s tax burden to close the yawning fiscal gap left after the current round of tax increases, and to finance its growing retirement colony. There is no possibility that Abenomics will result in “escape velocity” Japan style and that Japan can grow its way out of it enormous fiscal trap. Instead, nominal and real growth will remain pinned to the flatline owing to peak debt, soaring retirements, a shrinking tax base and a tax burden which will rise as far as the eye can see. Call that a Keynesian dystopia. It is a cautionary tale for our times. And Japan, unfortunately, is just patient zero.
Today's story of the day just took a major turn for the bizarre...
If you don’t understand the concept of “order out of chaos,” then you’ll never understand a thing. Each supposed disintegration of global unity has eventually led to greater centralization, and this is something the skeptics seem to forget. The progression of crises suggests that the next war will lead to total globalization under the dominance of a minority of elitists posing as "wise men" who only wish to bring peace and harmony to the masses. In the meantime, the skeptics will continue to mindlessly debate in the face of all reason that the whole thing was a fluke, an act of random mathematical chance, leading coincidentally to the one thing the establishment rulers crave: total global totalitarian micromanagement.
While ISIS has issued direct threats against the US in the past week now that the US is officially droning and "humanitarianly advising" it (after having armed it for the past year), until now it was largely broad, diffuse statements. That changed in the last few hours when ABC reported a photo has emerged via Twitter which shows a hand holding up an image of a flag for ISIS, displayed on a smartphone, on Pennsylvania Avenue in front of the White House fence, an area which is frequented by thousands of tourists every day. The photo was tweeted from an apparently pro-ISIS Twitter handle @sunna_rev on Aug. 9.
- Police fire tear gas, stun grenades at Missouri protesters (Reuters)
- Putin’s Pipeline Bypassing Ukraine at Risk Amid Conflict (BBG)
- Russia's Largest Oil Company Seeks $42 billion to Weather Sanctions (WSJ)
- Shells hit central Donetsk, Russian aid convoy heads towards border (Reuters)
- U.S. Tightens Sanctions, Putting More Russian Companies at Risk (BBG)
- How to Blindly Score 43% Profit Overnight in China Stocks (BBG)
- Tears guaranteed: San Diego Pension Dials Up the Risk to Combat a Shortfall (WSJ)
- Euro Recovery Halts as Germany Shrinks, France Stagnates (BBG)
- Billionaire Found in Middle of Bribery Case Avoids U.S. Probe (BBG)
- Hillary Clinton, Barack Obama 'Hug It Out' on Martha's Vineyard (WSJ)
The US is clearly now pushing Russia towards war. But if you read the signs correctly, Russia has been preparing for exactly this outcome for many years.
Obama Plans "Non-Boots-On-The-Ground Humanitarian-Adviser-Marines-Led" Yezidi Rescue Mission In IraqSubmitted by Tyler Durden on 08/13/2014 13:18 -0400
Last night we nearly exploded when the adminstration tried to explain how the 130 Marines (military advisers) were non-combat troop 'boots-on-the-ground' in Iraq. Today, the State Department, Pentagon, and White House are all out with mind-numbing propaganda to reassure an anxious America that a planned rescue mission of 'thousands' of Yezidi will be entirely supported by non-combat troops.
Corporate "inversion" transactions already looked like a potential catalyst for tax reform over the medium term, but an uptick in deal activity seems to have increased the probability of near-term policy activity as well. Goldman's expectation is that such changes might be announced shortly after Congress recesses for the election in early October. Overall, it appears unlikely that Congress or the Treasury will make changes this year that eliminate the tax benefits of inversion, but the probability of incremental changes has increased.
Gosh, isn’t that what we spent eight years, 4,500 lives, and $1.7 trillion doing? And how did that work out? The Iraq war is just like the US financial system. The people in charge can’t imagine writing off their losses. Which, from the policy standpoint, leaves the USA pounding sand down so many rat holes that there may be no ground left to stand on anywhere.
"You give me this office, and in turn, my fears, doubts, insecurities, foibles, need for sleep, family life, vacations, leisure is gone. I am giving myself to you. The American people should have no patience for whatever is going through your head because you have a job to do. You don't make that decision unless you are prepared to make that sacrifice, that tradeoff. Those who make mistakes in the president's office make them because they haven't fully thought through the dimensions of that choice."
- Barack Hussein Obama
... Who America and Her Close Allies SUPPORT (the Terrorists, That Is) ...
While the US is alternating between bombing the north of Iraq, and occasionally paradropping MREs and jugs of water to keep up the "noble" facade of intervention, it is very much unclear if Iraq currently has a government and in fact, who is in charge. As reported yesterday, current PM al-Maliki, seemingly unhappy with relinquishing power when a new Prime Minister, Haider al-Abadi was chosen, decided to conduct what many described as a military coup and encircled the residence of the president. Since then things have gotten quite confusing.
Clinton told ABC’s Diane Sawyer in a June interview, “We came out of the White House not only dead broke, but in debt.” If being “dead broke” means dropping $100k on a 3-week rental in the Hamptons, then we’d like to be dead broke too.
Although the US seems intent in playing the drums of war, perhaps realizing that its economic power is slowly headed for oblivion, to join the likes of Japan and the UK, American firms waving international flags don’t have the appetite for war that neocon elitists in the State Department or star-studded bellicosarians in the halls of the Pentagon have. Not at all! And here is where the feared industrial-military complex hopefully falls apart as globalist firms give their overall support to peace as a preferred alternative to the specter of a nuclear holocaust. Russia doesn’t want any military confrontation, nor does China, nor do American and European corporate entities that see no future in suicide. Americans need not drink the kool-aid offered by John McCain and his ilk in the Pentagon, Congress or the State Department; nor should they listen to the sad sack windmill-mouthpiece they have enlisted in the White House: Barack Obama.
While the biggest geopolitical news of the past week was Obama's announcement he would become only the fourth president in a row to order military action in Iraq, explicitly targeting the ISIS jihadists, the far bigger question are the developments that spurred the administration to finally act. Here are, courtesy of Vice News, the first two parts of a series looking at life in the Islamic State caliphate. Vice News reporter Medyan Dairieh spent three weeks embedded with the Islamic State, gaining access to the group in Iraq and Syria as the first and only journalist to document its inner workings.