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100+ Respected Academics Slam EU in Letter to Juncker Citing “Rule of Law”

November 4, 2017

On Thursday, over 100 well-respected academics slammed the EU in a letter sent a letter to European Commission president Jean-Claude Juncker and European Council president Donald Tusk. The academics cited the rule of law.

The open letter , signed by highly-respected academics and members of the European Parliament, cited Spain’s “undisputable abuse of power”.

We are deeply concerned that the EU’s governing bodies are condoning the systematic violation of the Rule of Law in Spain, in particular regarding the Spanish central authorities’ approach to the 1 October referendum on Catalan independence. We do not take political sides on the substance of the dispute on territorial sovereignty and we are cognizant of procedural deficiencies in the organization of the referendum. Our concern is with the Rule of Law as practised by an EU Member State.

The Spanish government has justified its actions on grounds of upholding or restoring the constitutional order.

  1. The Tribunal has violated Constitutional provisions on freedom of peaceful assembly and of speech – the two principles which are embodied by referendums and parliamentary deliberations irrespective of their subject matter. Without interfering in Spanish constitutional disputes or in Spain’s penal code, we note that it is a travesty of justice to enforce one constitutional provision by violating fundamental rights. Thus, the Tribunal’s judgments and the Spanish government’s actions for which these judgments provided a legal basis violate both the spirit and letter of the Rule of Law.
  2. In the days preceding the referendum, the Spanish authorities undertook a series of repressive actions against civil servants, MPS, mayors, media, companies and citizens. The shutdown of Internet and other telecom networks during and after the referendum campaign had severe consequences on exercising freedom of expression.

…click on the above link to read the rest of the article…

Eight Catalonia Ministers Jailed, Madrid Seeks European Arrest Warrant for Catalan Leader 

November 3, 2017

Spain, a country that supports a two-state solution in Palestine, detained eight Catalan ministers on trumped up charges of sedition. Prosecutors also seek an arrest warrant for ousted Catalan leader Carles Puigdemont.

We all knew it would come down to this: Sacked Catalonia Ministers Held by Madrid Court.

Eight sacked Catalan ministers have been remanded in custody by a Spanish high court judge over the region’s push for independence. Prosecutors had asked the judge to detain eight of the nine former regional government members who turned up for questioning in Madrid.

They are accused of rebellion, sedition, and misuse of public funds. Prosecutors are also seeking a European Arrest Warrant for ousted Catalan leader Carles Puigdemont.

The request also covers four other dismissed Catalan ministers who did not show up in court in Madrid as requested, but have been in Belgium since Monday.

Detained

  • Former Deputy Vice President Oriol Junqueras
  • Former Interior Minister Joaquim Forn
  • Former Foreign Affairs Minister Raül Romeva
  • Former Justice Minister Carles Mundó
  • Former Labour Minister Dolors Bassa
  • Former Government Presidency Councillor Jordi Turull
  • Former Sustainable Development Minister Josep Rull
  • Former Culture Minister Meritxell Borras

In a statement broadcast on Catalan TV from an undisclosed location in Belgium, Mr. Puigdemont described the detention of the eight ex-ministers as “an act that breaks with the basic principles of democracy”.

What’s Next?

If Spain’s high court judge issues a warrant, a European Arrest Warrant (EAW) will be sent to Belgian prosecutors, who have 24 hours to decide whether the paperwork is correct. If they do, they then have 15 days to arrest Mr. Puigdemont and the four others. If one or all of them appeals against it, that process could last another 15 days.

…click on the above link to read the rest of the article…

Dear Mario Draghi: About Your Victory Over Deflation Speech in March 

November 2, 2017

In March, ECB President Mario Draghi declared victory over deflation. Let’s take a look at Eurozone inflation since his victory speech.

On March 10, 2017, I reported ECB Declares Victory Over Deflation: Hallelujah!

My lead-in comment was “ECB President Mario Draghi Declares Victory Over Deflation. That’s much like shouting hallelujah when you miss the game-winning field goal.”

In the Eurozone, consumer price inflation is measured by the Harmonised Index of Consumer Prices (HICP). Harmonized means all the countries in the Eurozone use the same methodology. HICP is essentially the same as the CPI in the US.

Core HICP excludes food, energy, alcohol, and tobacco. In the US, core CPI excludes food and energy.

It’s been seven months since Draghi’s victory speech. Let’s investigate details from the October Fash Estimate of Eurozone HICP.

Year-over-year Inflation in services is down from 1.5% to 1.2%. The core HICP is down from 1.1% to 0.9%. Thus most of the decline in the core is due to a drop in the rate of inflation in services.

Mario Draghi, like his counterparts at the Fed, are not pleased with such results. Like all economic illiterates, the Central Banks are happiest when your money decreases in value every month.

Meanwhile, consumers are happy to see prices decline. It takes years of brainwashing to believe rising prices are a good thing.

Ministry of Truth Goes After Facebook, Twitter, Google

October 31, 2017

Facebook, Twitter and Google meet with Congress on Tuesday about Russia’s use of fake accounts and paid advertising to meddle in the 2016 election.

Facebook, Twitter, and Google are under close scrutiny as Congress is set to crack down on alleged election-ad abuses. The three tech giants meet Congress](https://www.bloomberg.com//news/articles/2017-10-31/facebook-twitter-google-to-tell-congress-how-russia-meddled) today.

Senators want to know how the companies failed to keep Russians from exploiting their networks — buying 3,000 Facebook ads mostly with rubles — and using fake accounts to spread chaos and disinformation to millions of Americans. The three companies’ general counsels will appear before a Senate Judiciary subcommittee Tuesday and the House and Senate Intelligence panels Wednesday.

“The foreign interference we saw is reprehensible and outrageous and opened a new battleground for our company, our industry and our society,” Colin Stretch, Facebook Inc. general counsel, said in prepared remarks. “We’re determined to prevent it from happening again.”

Facebook plans to tell lawmakers that 80,000 posts by 470 fake Russian accounts reached an estimated 126 million people, and that it closed 5.8 million fake accounts from all sources in October 2016 alone. Fake Russian accounts on Facebook’s Instagram posted another 120,000 pieces of content, the company will tell lawmakers.

At the same hearing, Twitter Inc. will say it has suspended 2,752 Russian-linked accounts, far more than it previously disclosed, according to testimony obtained by Bloomberg. Alphabet Inc.’s Google plans to say the impact on its sites was much smaller, with $4,700 worth of Russian-linked ads, compared to the $100,000 Facebook disclose.

Facebook head of security Alex Stamos has said using algorithms to try to cut fake news or political comments would result in the company acting as the “Ministry of Truth” — something it doesn’t want to be. But its current effort to stop misinformation, by letting neutral third parties fact-check posts flagged by users, is falling short, according to people familiar with the process.

Meanwhile …

…click on the above link to read the rest of the article…

Gold-Backed Petro-Yuan Silliness: Reserve Currency Curse? 

October 25, 2017

A massive amount of hype is spreading regarding China’s alleged ambitions to dethrone the dollar. The story this time involves China’s plan is to price oil in yuan using a gold-backed futures contract. Even if that were true, the impact would be zero. Nonetheless, CNBC is now in on the hype.

Yuan pricing and clearing of crude oil futures is the “beginning” of a broader strategic push “to support yuan pricing and clearing in commodities futures trading,” Pan Gongsheng, director of the State Administration of Foreign Exchange, said last month.

To support the new benchmark, China has opened more than 6,000 trading accounts for the crude futures contract, Reuters reported in July.

Yawn.

Jeff Brown, president at FGE, an international energy consultant has a more accurate assessment. “Most counterparties will not want anything to do with this contract as it adds in a layer of cost and risk. They also don’t like contracts with only a few dominant buyers or sellers and a government role.”

Priced-In Madness

Repeat after me: It’s meaningless what currency oil is quoted in. Once you understand the inherent truth in that statement, you immediately laugh at headlines like that presented on CNBC.

For those who do not understand the simple logic, consider the fact that one does not need to have dollars to buy oil. Currencies are fungible. In less than a second, and at ant time day or night, one can convert any currency to any other currency.

…click on the above link to read the rest of the article…

Dear Spain, Mainstream Media: A Majority of Catalans Want Independence (Stop Saying Otherwise)

October 24, 2017

Even though 92% of voters in the Catalonia election voted for independence, mainstream media keeps repeating the lie that a majority in Catalonia were against independence. Here’s the real math.

Mainstream Media Lies

Yesterday, the Wall Street Journal repeated this frequently stated lie “A majority of Catalonia’s 7.5 million inhabitants don’t support independence, recent polls show.”

Today, ABC news repeated the stale news we have heard so many times before: “Until this crisis erupted, polls showed about 70 per cent of Catalans wanted to vote in an independence referendum. But only 41 per cent were actually in favour of cutting ties with Spain.”

These media outlets all parrot each other. Lies get repeated over and over and over. The Guardian and countless other places made the statement. No one bothers to link to or even cite the date of the “recent poll”.

I believe the allegedly “recent” poll was taken in July. Regardless, it was superseded by a more recent poll.

Most Recent Poll

The most recent poll was taken October 1. The results are as posted above. Counting ballots confiscated by Madrid, the real turnout was 57%.

Some may dispute the number of confiscated ballots. Don’t blame me, blame Madrid. If Madrid did not confiscate ballots and prevent people from voting, that reporting issue would not be in play.

It’s a certainty those confiscated ballots were overwhelmingly in favor of independence. In addition to the confiscated ballots, many who wanted to vote were forced away by Madrid police.

Its likely that yes had an outright majority from the 770,000 stolen votes alone. Add in other suppressed votes and its a certainty yes had an outright majority.

Dear mainstream media, the majority of Catalonia wanted independence. Please stop your lies.

Uncharted Territory, Spain to Take Over Catalonia Government: What’s the Libertarian Position? 

October 20, 2017

Madrid will suspend Catalonia autonomy on Saturday after Carles Puigdemont, the Catalan president, refused to back down from a declaration of independence. What happens next is unknown. Spain fears violence but it may force new regional elections nonetheless. This is uncharted territory.

The Spanish government is to suspend Catalonia’s autonomy and impose direct rule after the region’s president refused to abandon the push for independence that has led to Spain’s biggest political crisis for 40 years.The announcement of the unprecedented measure came after the Catalan president, Carles Puigdemont, threatened a unilateral declaration of independence if the Spanish government did not agree to talks on the issue.According to article 155, which has never been used, the Spanish government will need to lodge a formal complaint with Puigdemont, then submit its proposals to the senate for debate and approval. As a result, it will be at least a few days before concrete steps are taken.Tensions in the already fraught impasse rose further this week after a judge at Spain’s national court denied bail to two prominent Catalan independence leaders who are being investigated for alleged sedition.

Spain Moves to Suspend Autonomy

Spain is to start suspending Catalonia’s autonomy from Saturday, as the region’s leader threatens to declare independence. The government said ministers would meet to activate Article 155 of the constitution, allowing it to take over running of the region.Catalonia’s leader said the region’s parliament would vote on independence if Spain continued “repression”.Some fear the latest moves could spark further unrest after mass demonstrations before and since the ballot on 1 October. However, the central government wants to minimise the risk of large-scale demonstrations, our correspondent says.

…click on the above link to read the rest of the article…

Nonsensical Global Worries Over Subdued Inflation: Yellen, Draghi, Kuroda

October 16, 2017

Central bank presidents at the Fed, the ECB, and Bank of Japan are all concerned over low inflation. The Fed wants to hike anyway, but the Bank of Japan will keep pursuing aggressive monetary easing. Meanwhile, asset prices are in the biggest ever bubble.

Bank of Japan

Bank of Japan Governor, Haruhiko Kuroda, says the BOJ Will Keep Pursuing Aggressive Monetary Easing.

“The Bank of Japan will consistently pursue aggressive monetary easing with a view to achieving the price stability target at the earliest possible time,” Mr. Kuroda said at a meeting of the Group of 30 in Washington.

“Achieving the 2% target is still a long way off,” Mr. Kuroda said.

“Once price increases become widespread, medium- to long-term inflation expectations for firms and households are expected to rise gradually and actual inflation will increase toward 2%,” he said.

ECB

‘It’s going to take time. We have got to be persistent with our monetary policy,” Draghi said on the sidelines of the meetings of the International Monetary Fund and World Bank in Washington, reported The Wall Street Journal.

Draghi gave an upbeat outlook on the 19-nation eurozone economy, but said inflation remains too weak, possibly due to subpar wage growth, he said. The ECB’s program of buying 60 billion euros ($70.9 billion) of bonds a month is set to expire in December. Policy makers are expected at a meeting on Oct. 26 to announce plans to begin scaling down the monthly purchases next year, but Draghi suggested the decision could be delayed again, the report said.

Fed

…click on the above link to read the rest of the article…

King Dollar is Dead? Biggest Paradigm Shift in 100 Years: China and Electric Cars at Forefront 

October 14, 2017

Steen Jakobsen, Saxo Bank Chief Economist and CIO, says the biggest change in 100 years is underway. He points to events in China and with electrification of cars.

This is a guest post by Jakobsen.

Macro Digest: The 19th Party Conference – The biggest Paradigm shift in 100 years?

I think next week’s 19th China Communist Party’s Conference is the single biggest event this year – a confirmation a true paradigm shift

China leads world in credit creation, growth and now in most technology fields… My take remains that President Xi will focus on quality over quantity, that pollution reducing is the number one social issue and that The Party is taking more and more control. The net output will be:

  • Lower than expected growth next 18 month (while China converts economy from export engine to one of productivity gains – President Xi wants 2010 GDP per Capita doubled (Rule of 72= 72/7% GDP per year = 10 years) which means objective of 7% growth per year, but most of this will be productivity driven which means investment first (hence lower growth) then higher
  • Reduction of pollution = Electrification of cars – BDY says by 2030 100 pc of cars will be EV – this catapult China to leadership in battery, E-engines, and pollution reduction (Don’t forget that from 1900 to 1910/13 the US went from 100% horse carriages to 100% cars!)
  • High ratio of R&D and innovation to gain leadership China is already, but will be even more dominant in E-commerce, payments and Fintech. (See Mckinsey report below)
  • Slow gradual openness in capital account, more access to market for foreigners and BIG FOCUS on converting global trade from US$ to CNY [Yuan vs Dollar]
  • Weaker CNY post conference
  • Big negative credit & growth impact on rest of the world

…click on the above link to read the rest of the article…

Rajoy Boxed In With Losing Options: Catalonia Suspends Independence Declaration, Posts Guards at Parliament, Seeks Mediation

October 10, 2017

Rajoy Boxed In With Losing Options: Catalonia Suspends Independence Declaration, Posts Guards at Parliament, Seeks Mediation 

The Catalan parliament met Tuesday afternoon. Catalonia president Carles Puigdemont asked parliament to suspend the effects of Catalonia voting “yes” for independence to hold talks with Spain.

However, Puigdemont still maintains the legality of the October 1 referendum in Catalonia, stating Catalans had “won their right to become an independent country.”

For now, Puigdemont seeks dialogue with Madrid.

Catalonia Suspends Declaration of Independence

The Independent reports Catalonia Suspends Declaration of Independence From Spain

The Catalan government has said it is suspending its declaration of independence from Spain and wants to de-escalate the tension in the country.

Premier Carles Puigdemont made the announcement in a highly-anticipated speech to the regional parliament in Barcelona where he said he would seek to enter into negotiations with the Spanish government to move the case for independence forward.

The Catalan leader maintained the legality of the October 1 referendum in Catalonia, and said Catalans had “won their right to become an independent country” but said he will first seek to open a dialogue with Madrid.

CNBC reports Puigdemont Asks Parliament to Suspend Results of Independence Referendum.

Puigdemont said in a speech Tuesday the current relationship between Catalonia and Spain is unsustainable. He asked for parliament to suspend the effects of Catalonia voting “yes” for independence to hold talks with Spain.

Catalan police have been posted outside parliament in Barcelona, sealing off the grounds to the public.

Delay Move Expected

This move is exactly as many expected. A declaration of independence would have triggered article 155 with Spain sending in military police or army troops.

Last evening Eurointelligence commented:

…click on the above link to read the rest of the article…

Oil Back Below $50: End of Inflationary Jump?

October 7, 2017

Oil Back Below $50: End of Inflationary Jump? 

Crude oil is back below $50 and production is up. Hedge funds are reducing positions. Is this the end of an inflationary jump?

Crude Weekly Chart

Oil’s Stint Above $50 Ends

Bloomberg reports Oil’s Stint Above $50 Ends.

I do not know where Bloomberg got that caption from. Crude is not at its lowest price since December 20003. I show crude at $2605 in January of 2016.

I show crude at $26.05 in January of 2016.

Hedge Funds Pare Positions as Stockpiles Soar

It doesn’t help that U.S. crude stockpiles remain above their five-year average by more than 70 million barrels at a time when refineries are starting to shut for maintenance. Meanwhile, the top American shale plays, led by the Permian and Eagle Ford basins in Texas, are set to produce a record amount of crude this month.

Hedge funds reduced their WTI net-long position — the difference between bets on a price increase and wagers on a drop — 1 percent to 249,323 futures and options in the week ended Oct. 3, U.S. Commodity Futures Trading Commission data show.

As for Brent, the net-long position on the global benchmark declined 0.9 percent to 504,263 contracts, after reaching an all-time high the previous week, according to data from ICE Futures Europe.

“Oil’s had a heck of a run for the month of September,” Thummel said. “The continued concerns in the market that keeps the shorts active: Is OPEC compliance waning? Will their compliance start to be less? Will they start to cheat more?”

Crude Monthly Chart

CPI Energy

Year-over-year the CPI energy index is up nearly 12%. Although it’s October, the latest CPI is for August.

End of Inflationary Jump?

I don’t know if this is the end of the move over $50 or not, but fundamentals are poor just as hedge funds plowed into crude futures.

A move back towards $40 seems likely.

If so, inflation pressures may be peaking to the consternation of the Fed.

World’s Biggest Ever Junk Bond Bubble in Pictures: What Hath Draghi Wrought?

October 5, 2017

World’s Biggest Ever Junk Bond Bubble in Pictures: What Hath Draghi Wrought? 

In regards to ECB QE bond purchases, inquiring minds may be asking: What hath ECB president Mario Draghi wrought?

I can explain in one picture.

The answer in words: The world’s biggest junk bond bubble.

I prefer gold.

On August 4, I commented on the Bubblicious Debate: Greenspan Says “Bond Bubble About to Break”, No Stock Market Bubble

There’s a bond bubble for sure, but it’s in corporate bonds, not treasuries.

This also isn’t the first time Greenspan has expressed concern about a bond bubble. Two years ago, when the 10-year Treasury yield was 2.44% and the CPI was 0.2%, he told Bloomberg TV that “we have a pending bond market bubble.” In a Bloomberg TV interview July 2016, he expressed concerns about stagflation and said “we’re seeing the very early signs of inflation beginning to tick up.” He also said with the 10-year Treasury yield pushed down to 1.50% by Brexit concerns, that he was “nervous” bond prices were too high.

“No Irrational Exuberance in Stocks”

“There is no irrational exuberance that I can see. In fact, it is just the opposite at this stage.”

Greenspan the Contrarian Indicator

Major comments by Alan Greenspan, widely portrayed by the media are most likely perfect contrarian indicators.

He has been calling the bond market a bubble for years but only recently did he say there was no stock market bubble.

With Greenspan, one needs to be careful. He is frequently correct about some things. However, the things about which he is correct are either never widely published, or they are widely disputed.

…click on the above link to read the rest of the article…

Mariano Rajoy, You are a Disgrace to Spain and the World, Please Resign: Catalonia Has Spoken Loud and Clear

October 2, 2017

Mariano Rajoy, You are a Disgrace to Spain and the World, Please Resign: Catalonia Has Spoken Loud and Clear

Spanish prime minister Mariano Rajoy, the man who said there would not be a vote, now has to face the facts: 90% Voted for Independence.

Govern. Generalitat ✔@govern

📊 Resultats del Referèndum de

  • 90% of the 2.26 million Catalans who voted on Sunday voted in favour of independence, according to preliminary results released by the region’s government. The region has 5.3 million voters. Officials said 770,000 votes were lost due to disruption which resulted in polling stations being raided by Spanish police.
  • Carles Puigdemont, Catalan’s leader, announced in a televised statement that the region had earned the right to become an independent state and that results would be passed the region’s parliament in the coming days.

This video of Madrid thugs stomping on people attempting to vote is worth a replay

WikiLeaks ✔@wikileaks

Catalonia says ‘Yes’ to independence from Spain with %90.09 of the vote. Around 80% of polling stations managed to stay open.

Dear PM Rajoy, Here are the Results

  • Despite the hundreds of thousands of police goons you sent in to stop the vote, a vote did indeed take place.
  • With 90% of the vote in, over 2,020,144 voted for independence.
  • Only 176,565, were against.
  • Your thugs seized another 770,000 ballots, the vast majority of which were undoubtedly in favor of independence.
  • 5.3 million were eligible to vote, and over 50% tried, despite your thug actions.

Dear PM Rajoy, Please Resign

Dear Rajoy, your career is over. Please resign before you are booted out.

But before you go, please take a look at For All the World to See: Police Brutality Videos and Images in Catalonia, then apologize.

Financial Hell: 57% in Australia Cannot Afford An Extra $100 if Interest Rates Rise, Stress in Wealthiest Areas

September 30, 2017

Financial Hell: 57% in Australia Cannot Afford An Extra $100 if Interest Rates Rise, Stress in Wealthiest Areas

A new study shows 57% of Australia mortgage holders could not handle a $100 increase in their loan repayment.

Stress has turned up in even the wealthiest cities.

But who is truly wealthy? Paper profits on homes with enormous mortgages does not constitute wealth.

Please consider $100 Tipping Point for 57% of Mortgage Holders.

A staggering 57% of mortgage holders could not handle a $100 increase in their loan repayments, according to new research by Finder.com.au.

This additional $100 is equivalent to an interest rate rise of just 0.45% based on the national average mortgage of $360,600. This means the average standard variable rate of 4.83% would only have to rise to 5.28% to put more than half of mortgage holders in stress.

“The typical mortgage holder will begin to struggle once interest rates reach around 5.28% – that’s a pretty small window before borrowing costs start to hurt,” she said.

With the research also showing that 39% of all mortgages are interest-only, this highlights why the Reserve Bank of Australia (RBA) and the Australian Prudential Regulation Authority (APRA) have shown some concern, she added.

Comparing genders, 63% of women and 50% of men would struggle to repay their mortgages with an increase of less than $100 per month.

Across the states, South Australian borrowers were the worst placed with 70% saying they could not handle an increase of less than $100 per month. This figure was lower in New South Wales, Tasmania and Western Australia at 59% and further dropped to 51% in Victoria.

Stress in Wealthiest Areas

Also consider Severe mortgage stress is cropping up in some of Australia’s richest suburbs.

…click on the above link to read the rest of the article…

Hello Rachel Maddow, MSNBC, USA Today, CNN, Washington Post, Slate: Another Major Russia Story Falls Apart

September 29, 2017

Hello Rachel Maddow, MSNBC, USA Today, CNN, Washington Post, Slate: Another Major Russia Story Falls Apart

The biggest purveyors of  “fake news” and irresponsible journalism are the news media outlets complaining most about it.

MSNBC’s Rachel Maddow is at the forefront of the latest fake news on Russia.

Maddow’s Rant

Maddow Blog ✔@MaddowBlog

DHS didn’t bother to tell the 21 states Russia tried to hack during the election until this afternoon.

The story went viral of course.

Maddow Blog ✔@MaddowBlog

DHS didn’t bother to tell the 21 states Russia tried to hack during the election until this afternoon. http://snpy.tv/2fH2Atn 

Jayne Partridge @JaynePart

Took a pic!🤓pic.twitter.com/rtwguSq2Uo

View image on Twitter

…click on the above link to read the rest of the article…

 

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