Daily Digest

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Daily Digest 2/15 - Le Pen Lures French Farmers, Italy Considers Regional Bank Bailout

Wednesday, February 15, 2017, 9:07 AM

Economy

Four reasons Illinoisans can't weather another tax increase

Many parts of Illinois are already in a recession and one in five homeowners is deeply underwater on their mortgage. Local tax hikes are occurring all over the state. And tax hikes have not solved Illinois’ problems in the past, yet spending reforms remain untried.

Le Pen Lures French Farmers Angered by Worst Crisis in Decades

It didn’t net him much: Beef prices are falling too. So are grains. Menier’s small corner of Brittany is a microcosm of French farming’s deepest crisis since World War II, and that could have an impact on April’s presidential election.

Bills aim to reduce PERS costs, but opponents call them unfair, illegal (Oregon)

The unfunded liability is putting pressure on the state budget, which faces a projected $1.8 billion deficit that’s driven in part by the state’s retirement obligations to public employees at all levels of government.

China Credit Surging to Record Underscores PBOC Shift to Tighten

Two years of PBOC easing have been accompanied by increased borrowing, and the nation’s top leaders are pledging to ease financial risk and keep policy prudent and neutral. Outstanding credit at year-end was equal to about 260 percent of GDP, up from 160 percent in 2008, according to Tom Orlik, chief Asia economist for Bloomberg Intelligence.

French govt bond trading doubles as election jitters deepen -Trax

Investors are nervous that far-right leader Marine Le Pen could win this spring's election. She is running on a platform of populism and protectionism, and has pledged to take France out of the euro.

EU Bad Bank to Tackle Soured-Loan Pile May Be a Long Way Off

A European Union bad bank would go a long way toward reducing the 1.2 trillion-euro ($1.3 trillion) mountain of soured loans on lenders’ books, but that relief may be a long time coming, according to the bloc’s bank regulator.

No Laughing Matter for Kuroda With BOJ Near 40% of Bond Market

The BOJ holds more than 40 percent of Japanese government bonds, according to data compiled by Bloomberg. While its holdings of all Japanese sovereign securities -- including bonds and bills together -- are still shy of the yardstick that Kuroda mentioned with some levity in October 2014, the central bank’s stake continues to rise and rise.

Italy considers €5bn state bailout of regional banks

Latest financial stability reports show that Italy has €200bn of gross defaulted or so-called non-performing loans, which net of provisions amount to €85bn.

Gold & Silver

Click to read the PM Daily Market Commentary: 2/14/17

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

11 Comments

sand_puppy's picture
sand_puppy
Status: Diamond Member (Online)
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Posts: 1396
This Is Not About Flynn

Charles Hugh Smith has written a couple of times about the secret battles between deep state factions and the place that Trump plays as a representative the faction he is calling the "progressive" faction (that includes the military).  The Progressive faction opposes the Neoconservative-Neoliberal Global Dominance Group ("the neoons" for short) that have held, and continue to hold, ascendance.

The Saker has published Charles' Work and adds his own perspective.  He writes of the AngloZionist empire ("the neocons") for short.

Both Charles and The Saker believe that there is a battle between factions within the Deep State and that the sparks and fury we see publicly are but small reflections of the forces at play beneath the surface.

Less than a month ago I warned that a ‘color revolution ‘ was taking place in the USA.  My first element of proof was the so-called “investigation” which the CIA, FBI, NSA and others were conducting against President Trump’s candidate to become National Security Advisor, General Flynn.  Tonight, the plot to get rid of Flynn has finally succeeded and General Flynn had to offer his resignation.  Trump accepted it.

Now let’s immediately get one thing out of the way: Flynn was hardly a saint or a perfect wise man who would single handedly saved the world.  That he was not.  However, what Flynn was is the cornerstone of Trump’s national security policy.  For one thing, Flynn dared the unthinkable: he dared to declare that the bloated US intelligence community had to be reformed.  Flynn also tried to subordinate the CIA and the Joint Chiefs to the President via the National Security Council.  Put differently, Flynn tried to wrestle the ultimate power and authority from the CIA and the Pentagon and subordinate them back to the White House.  Flynn also wanted to work with Russia. Not because he was a Russia lover, the notion of a Director of the DIA as a Putin-fan is ridiculous, but Flynn was rational, he understood that Russia was no threat to the USA or to Europe and that Russia had the West had common interests.  That is another absolutely unforgivable crimethink in Washington DC. ...

Again, Flynn was not my hero.  But he was, by all accounts, Trump’s hero.  And Trump betrayed him.

The consequences of this will be immense.  ...  It took the ‘deep state’ only weeks to castrate Trump and to make him bow ...

Dennis Kucinich speaks for the Ron Paul Institute also says, "This was not about Flynn."  It was a power-play by the neocon-MIC section of the deep state that benefits from conflict with Russia.

Former US House of Representatives Member Dennis Kucinich (D-OH) presented an urgent warning to the American people in a Wednesday Fox Business interview regarding the resignation of Michael Flynn from the position of national security advisor after information was leaked about a phone conversation Flynn had with the Russian ambassador to the United States. “At the core” of the intercepting of the then-incoming national security advisor’s phone conversation and the sharing with media of related information by US intelligence officials, Kucinich says, “is an effort by some in the intelligence community to upend any positive relationship between the US and Russia.”

But why take such an action? Kucinich answers that the effort against Flynn is part of an effort to ensure that the “military-industrial-intel axis can cash in” from the deterioration of relations between the US and Russia and, potentially, a new cold war.

Most pertinent to me was an essay by Nafeez Ahmed.  (ht to Tim Ladson)

How the Trump Regime was Manufactured by a War Inside the Deep State:  A Systemic Crisis in the Global Deep System Has Driven the Violent Radicalization of the Deep State Faction

My deep-state analysis skills are too unsophisticated to judge the accuracy of Ahmed's conclusions.  However, I find that he reviews the big factors (3Es) which is very compatible with much being discussed here at PeakProsperity.  He tells a story of

  • a shrinking global resource pie and the squabbling to hold control. 
  • a decline in the availability of cheap oil and the forced descent into use of petroleum sources with low EROI. 
  • the degradation of the environment and efforts to export environmental destruction to someone elses location. 
  • a failure of borrowing to create prosperity.  Debt saturation has reached its limit.
  • population stress.
  • of groups beginning to lookout more for their own in-group and to exclude out-groups  ("others").

He sees the Trump presidency as a battle between 1) the "white American" loyal deep state, and, 2) the neoconservative-neoliberal that is willing to sacrifice America in its global conquest.

Several themes of Michel Chossuvdosky's work "The Globalization of Poverty" are supported in this analysis: namely, that the destruction of the American middle class is baked into the globalization cake.

Ahmed concludes:

.... both the conservative and liberal polarities are being disrupted by the global systemic crisis. That the Deep State is being disrupted by the global systemic crisis. And that Trump is merely an effort by a branch of the Deep State to stave off the disruption. And that the failures of the other [neocon] branch of the Deep State are precisely what enabled and emboldened this eventuality.

The Deep State needs to renew its PP membership and read up!

saxplayer00o1's picture
saxplayer00o1
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Posts: 3837
Alaska Oil Bust Threatens Life of Few Taxes and Dividend Checks

 

Political fears spread to Europe's corporate bond market

Financial Times-1 hour ago
Its purchases of sovereign debt have smoothed out country-specific risk in much larger government bond markets, against which corporate bonds are typically ...

Dovish Swedish central bank signals no let up in easy money

euronews-4 hours ago
Negative interest rates and a hefty quantitative easing programme are looking increasingly out of sync with a Swedish economy in high gear. But the Riksbank is ...

S.Korea central bank says it plans to keep policy accommodative

Nasdaq-14 hours ago
SEOUL, Feb 15 (Reuters) - South Korea's central bank said on Wednesday it plans to keep its monetary policy accommodative as economic growth continues at ...

ECB can force hand of banks that fail to cut bad loans - Donnery

Reuters UK-6 hours ago
FILE PHOTO: The European Central Bank (ECB) headquarters is pictured in Frankfurt, Germany, January 21, 2015. REUTERS/Kai Pfaffenbach/File Photo.

If the Federal Reserve Soon Starts to Slash Its $4.5 Trillion in Assets ...

Yahoo Finance-1 hour ago
... stimulate growth; the Fed's total assets rapidly quadrupled to about $4.5 trillion. ... markets while curbing incentives for corporations to load up on cheap debt.

Le Pen is on course to be France's next president, fund manager ...

CNBC-5 hours ago
Marine Le Pen is on course to be the next president of France, according to one fund manager's big-data analysis. Arun Kant, chief executive and chief ...

Nexit, Frexit or Grexit? The countries that could leave the EU next ...

Express.co.uk-Feb 14, 2017
ANTI-EU politicians could triumph in French and Dutch elections, while cash-strapped Greece could crash out of the eurozone. Which country will leave the EU ...

Alaska Oil Bust Threatens Life of Few Taxes and Dividend Checks

Bloomberg-3 hours ago
With an economy in recession, Alaska has burned through $13 billion of ... Even so, next year's deficit in the $4.3 billion budget equates to about $4,000 per ...

Five reasons the Greek debt crisis is back

Yahoo News - ‎5 hours ago‎
The IMF disagrees with the eurozone on two key issues: economic targets and debt. On the economic targets, the IMF says those demanded by the Europeans of Greece are unrealistic. The eurozone insists that Greece can deliver a primary balance, ...
saxplayer00o1's picture
saxplayer00o1
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Worldwide Demand for Gold Increases as Distracted U.S. Buys “Top

Worldwide Demand for Gold Increases as Distracted U.S. Buys “Toppy, Trumpy” Stock Market (McAlvany)

Time2help's picture
Time2help
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No ISIS

sand_puppy's picture
sand_puppy
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Posts: 1396
Caldronization: A new and horrible vocabulary word

In reading about the machinations of the deep state I came across this new and horrible word in in the writing of arch-neocon, Michael Leeden, describing his faction's goal in the Middle East. 

"...turn the region into a caldron.  And faster please."

A bubbling, burning caldron of chaos can be fomented by arming both sides of a conflict.  The goal is to have neither side win.  To keep the fight going until nobody is left standing;  no bridge, power-station, dam or roadway remains.

“Let Them Both Bleed”

U.S. policy makers and influencers may be pursuing a chaotic policy because they want chaos. They want to, in the words of neocon Michael Ledeen, “cauldronize” the Middle East: turn the region into a boiling cauldron. Ledeen wrote in 2002 in support of invading Iraq:

"One can only hope that we turn the region into a cauldron, and faster, please. If ever there were a region that richly deserved being cauldronized, it is the Middle East today."

By supporting both sides in regional conflicts, and by shifting alliances to install some factions in power only to later overthrow them, at least some U.S. policymakers seek to divide and conquer. This may be called the Cauldron Doctrine.

An example of the Caldron process at work:  Fighting ISIS in Iraq and arming ISIS in Syria (simultaneously).

.... the following remarks recently given by President Obama on the White House lawn following the astonishingly rapid conquest of western Iraq by the terrorist group ISIS (aka ISIL):

"Indeed, across the region, we have redoubled our efforts to help build more capable counterterrorism forces, so that groups like ISIL can’t establish safe haven. And we’ll continue that effort through our support of the moderate opposition in Syria, our support for Iraq and its security forces, and our partnership with other countries across the region."

... it was precisely such U.S. support for ISIS’s allies in a war against ISIS’s mortal enemy, Syrian ruler Bashar al-Assad that enabled ISIS to conquer large parts of Syria, which served as the safe haven from which they launched their conquest of western Iraq in the first place. As political science professor David C. Hendrickson recently wrote:

[U.S.] orchestration of external support for the Syrian revolution and the overthrow of Bashar al-Assad, in which Washington has been a key player, has undoubtedly redounded to the benefit of ISIS.

The emerging strategic reality was given pungent expression by Ayad Jamal al-Din, a liberal Iraqi cleric and politician: “The war in Syria and the war in Iraq are one and the same,” he said on June 10. “Both in Syria and in Iraq, it is a war against ISIS. The United States strives to weaken the Syrian regime, and this benefits ISIS, but in Baghdad, it supports the regime against ISIS. This is suspicious and perplexing, to tell you the truth.”

As a result, in both Iraq and Syria, the conflicts are locked in a bloody stalemate-without-peace. In Iraq, as Hendrickson said, “neither side seems positioned to gain a victory in Iraq; they can kill but not conquer the other.”

The Problem with Caldrons

The Cauldron Doctrine is not only utterly demonic, but suicidally stupid. The thing about cauldrons is that they bubble over. It is herculean hubris if U.S. and Israel policymakers think they can turn Israel’s near abroad, and the Muslim world in general from Mali to Pakistan, into a boiling sea of violence and chaos, and that they will be able to surf that sea while it submerges and boils all their rivals.

This RED/BLUE approach to the world violates my own deepest values.  I do not support it.

Cornelius999's picture
Cornelius999
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Posts: 286
Thanks for reminding us of

Thanks for reminding us of the magnitude of the inhuman forces that are out there Sandpuppy.  I'll happily use " evil incarnate " to describe them rather than the Fed. It does help explain why there are so many zones of conflict.

sand_puppy's picture
sand_puppy
Status: Diamond Member (Online)
Joined: Apr 13 2011
Posts: 1396
Oops. Sorry to misspell Cauldron

Darn spell checker.....

sand_puppy's picture
sand_puppy
Status: Diamond Member (Online)
Joined: Apr 13 2011
Posts: 1396
Full Blown Mutiny Afoot

Full Blown Mutiny Afoot

The mutiny continues.  I have absolutely no question that this is a major power faction war within the government / deep state.  I will leave it to the more educated to explain what the battle-lines are exactly and what the price of the battle will be to the peons.  (The Saker suggests that the Neocons hold power in the CIA and Pentagon (and NYT and WaPo) and they are pit against the more nationalistic faction that backs Trump.)

"He Will Die in Jail"--Intelligence Community Ready to Go Nuclear on Trump

On the Verge of Treason:  Spies Withhold Intelligence From Trump

WSJ:  Spies Keep Intelligence From Donald Trump On Leak Concerns.  Decision to withhold information underscores deep mistrust between intelligence community and the president

Time2help's picture
Time2help
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Posts: 2490
Re: Full Blown Mutiny

Thoughts on the FBM from "The Sane Progressive".

Dennis Kucinich interview starts at 8:30.

Where this ends is anyone's guess.  

Michael_Rudmin's picture
Michael_Rudmin
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Posts: 709
T2H, do you want to pull some biometrics?

Look up Sgt. Sherwood Russell Baker, and measure what you see there for facial biometrics, versus the mugshot of Abu ("son of") Bakr ("Baker") al Baghdadi (of Baghdad). Please report back to us names of the ratios (nose height to eye-to-chin-height) etc. with the ratios to perhaps 3 digits. You can get measurements by using pixel locations read off Microsoft Paint.

Since you're dealing with 2-D pictures, you also have to be careful to measure co-linear ratios, and use points that cannot be faked:  the front of the ear may not change, but the ears themselves can be pulled in or pushed out.  Mouth corners can go up and down; etc.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2490
Re: Biometrics

No. Thank you.

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