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Degrading Newspapers’ Business Sections

Degrading Newspapers’ Business Sections

It’s alarming that there are far fewer media outlets for consumer protection news and features than there were thirty years ago. Recall the huge Phil Donahue Show, the regional radio show and TV news shows, the television networks and syndicated radio shows that would report and interview consumer advocates about the injustice, rip-offs, and harms done to the consumer by unscrupulous corporations. These shows are largely gone now. Shows marked by fluff, narcissism, trivia, and sensationalist, frenetic news bits are their replacements.

What is disturbing is that the major newspapers – the Washington Post, the New York Times, and the Wall Street Journal—are cutting back reporting on the revelations and doings of active consumers, and consumer organizations. Sure, they do occasional features that may gain them big journalism prizes. But the regular coverage of very important consumer struggles with Congress, the White House, the courts, and the state legislatures has vastly shrunken. Moreover, the media, especially TV, is dittoheading itself with the daily “big story”, as with the Trumpian escapades.

Serious readers are left with the New York Times daily Business pages (the Washington Post dropped its separate, daily business section a few years ago). Of late, the editors of the Times business section have been diluting its contents with what two former reporters called a more “business friendly” priority. My attempts to discuss this problem with their news editors have not been answered.

Last Sunday I picked up the weighty Sunday New York Times and went to the business page (business is often defined as stories about sellers, when it should include buyers and consumers). The cover page featured a huge photograph and article titled: “Tiger Is Back, Will Sponsors Follow?”

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

“Unprecedented Leak” Exposes The Criminal Financial Dealings Of Some Of The World’s Wealthiest People

“Unprecedented Leak” Exposes The Criminal Financial Dealings Of Some Of The World’s Wealthiest People

An unprecedented leak of more than 11 million documents, called the “Panama Papers“, has revealed the hidden financial dealings of some of the world’s wealthiest people, as well as 12 current and former world leaders and 128 more politicians and public officials around the world.

More than 200,000 companies, foundations and trusts are contained in the leak of information which came from a little-known but powerful law firm based in Panama called Mossack Fonseca, whose files include the offshore holdings of drug dealers, Mafia members, corrupt politicians and tax evaders – and wrongdoing galore.

The law firm is one of the world’s top creators of shell companies, which can be legally used to hide the ownership of assets. The data includes emails, contracts, bank records, property deeds, passport copies and other sensitive information dating from 1977 to as recently as December 2015.  

It allows a never-before-seen view inside the offshore world — providing a day-to-day, decade-by-decade look at how dark money flows through the global financial system, breeding crime and stripping national treasuries of tax revenues.

Here is the brief summary of how these documents have been revealed, via the Sueddeutsche Zeitung:

Over a year ago, an anonymous source contacted the Süddeutsche Zeitung (SZ) and submitted encrypted internal documents from Mossack Fonseca, a Panamanian law firm that sells anonymous offshore companies around the world. These shell firms enable their owners to cover up their business dealings, no matter how shady.

In the months that followed, the number of documents continued to grow far beyond the original leak. Ultimately, SZ acquired about 2.6 terabytes of data, making the leak the biggest that journalists had ever worked with. The source wanted neither financial compensation nor anything else in return, apart from a few security measures.

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

Presenting, “The Company That Bribed The World”

Presenting, “The Company That Bribed The World”

This won’t exactly come as a surprise: the global oil industry is corrupt.

We are, after all, talking about the most financialized commodity in the history of the world, and up until a few years ago, it was controlled by a cartel comprised entirely of nations run by caricatures and stereotypes that the Western public generally regarded as a kind of necessary evil in a world that revolves around fossil fuels.

More recently, we’ve seen how oil funds terrorism and how crude prices are manipulated by the Gulf monarchies to secure “ancillary diplomatic benefits” in the never-ending quest to perpetuate Sunni hegemony in the Arabian Peninsula.

In short, blood money and oil money are synonymous concepts and at the end of the day, any geopolitical dispute that can’t be explained by sectarianism, tribalism, or some other ancient cultural rift, can very likely be explained by a dispute over energy.

Given the above, we weren’t at all shocked to learn that a heretofore obscue firm based in Monaco has made a killing by perfecting the art of oil market bribery and corruption. But even if the story isn’t surprising, it is nonetheless intriguing and with that in mind we present below excerpts from The Company The Bribed The World,” a collaborative piece by Huff Post and Fairfax Media.

*  *  *

From The Huffington Post

A massive leak of confidential documents has for the first time exposed the true extent of corruption within the oil industry, implicating dozens of leading companies, bureaucrats and politicians in a sophisticated global web of bribery and graft.

After a six-month investigation across two continents, Fairfax Media and The Huffington Post can reveal that billions of dollars of government contracts were awarded as the direct result of bribes paid on behalf of firms including British icon Rolls-Royce, US giant Halliburton, Australia’s Leighton Holdings and Korean heavyweights Samsung and Hyundai.

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

Turkey Shells Aleppo, Says “Massive Escalation” In Syria Imminent As Saudis Ready Airstrikes

Turkey Shells Aleppo, Says “Massive Escalation” In Syria Imminent As Saudis Ready Airstrikes

Even as all sides – including the US, Russia, Saudi Arabia, and select rebel groups – pretend to be working towards a ceasefire and a diplomatic solution to the five year conflict in Syria, actions speak louder than words, and to put it as succinctly as possible, everyone is still fighting.

In fact, the fighting is more intense than ever. Russia and Hezbollah are closing in on Aleppo, the country’s largest city and a key urban center where rebels are dug in for what amounts to a last stand. If the city is liberated by the government (and yes, “liberated” is more accurate than “falls” because occupied territory belongs to the Syrian government, not to Sunni extremists), Assad will have regained control of the country’s backbone in the west.

That would effectively mean the end of the rebellion and the Gulf monarchies, not to mention Turkey, are not happy about it. “The main battle is about cutting the road between Aleppo and Turkey, for Turkey is the main conduit of supplies for the terrorists,” Assad said in an interview with AFP on Friday.

That supply line has been severed and now, it’s do or die time for the rebels’ Sunni benefactors in Ankara, Riyadh, and Doha. Either intervene or watch as Hezbollah rolls up the opposition under cover of Russian airstrikes, restoring the Assad government and securing the Shiite crescent for the Iranians.

As we documented extensively this week, the Saudis and the Turks are now set to invade. Assad has promised to “confront them”, which of course means that the IRGC and Hassan Nasrallah’s army are set to come into direct contact with Turkish and Saudi troops, setting the stage for an all-out sectarian war that will almost invariably end up pitting NATO against the Russians.

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

Exclusive: “And It’s Gone… It’s All Gone” – The One Gold Scandal That Goes To The Very Top

Exclusive: “And It’s Gone… It’s All Gone” – The One Gold Scandal That Goes To The Very Top

Long before Turkey was flagrantly arming and funding the CIA-created “terrorist organization” known as ISIS, there was another, far more elaborate way in which Turkey was flaunting international sanctions against an ostracized state – in this case Iran – which involved an epic gold smuggling triangle of Hollywood-thriller proportions, all made possible thanks to the United Arab Emirate city of Dubai.

Best known known for its luxury shopping, ultramodern architecture including the world’s tallest building, a lively nightlife scene, and a facade of openness and decorum, what Dubai is less known for is its unprecedented seedy underbelly of corruption and untouched criminality among the handful of billionaire oligarchs, princes, sheiks and sultans, who quietly dominate the local (and global) power and financial structure.

But first, a little history.

It may seem like a distant memory now, but just a few short years ago, instead of a close ally of Barack Obama, Iran was a pariah state subject to international financial sanctions due to its nuclear program development, one which Israel had repeatedly (and famously) threatened would attack preemptively to prevent Iran from obtaining a nuclear weapon.

Iran, of course, had no choice but to find ways to keep its economy going, and in order to circumvent these sanctions, it resorted to the oldest form of trade known to man: gold. 

This, in itself, is not surprising. What is surprising is how and with whom Iran collaborated to breach the international embargo in order to obtain this valuable and much needed gold, which it could then barter with other countries – notably those along the Pacific Rim – in exchange for any and all needed products and services.

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

In Latest Sign Of EM Chaos, Turkey’s FX Reserves Fall Below Key Threshold Ahead Of Pivotal Elections

In Latest Sign Of EM Chaos, Turkey’s FX Reserves Fall Below Key Threshold Ahead Of Pivotal Elections

One of the key things to understand about the veritable meltdown that’s unfolded across emerging markets is that there’s more to the story than the headline risk factors.

That is, while the list of proximate causes that includes a decelerating China, collapsing commodity prices, and uncertainty over when or even if the Fed will hike goes a long way towards explaining the carnage that’s unfolded across EM, each country has its own set of unique circumstances to grapple with. Indeed, the idiosyncratic political risks playing out across emerging economies have taken center stage as Brazil attempts to navigate congressional gridlock, Malaysia struggles with the 1MDB scandal, and Turkey faces new elections in November.

While there’s no question that the political situation in Brazil is particularly troubling, it would be difficult to imagine a more precarious scenario than that which exists in Turkey, where President Recep Tayyip Erdogan has managed to subvert the democratic process by starting a civil war, and thanks to the strategic significance of Incirlik, the effort is co-sponsored by the US and NATO.

Of course extreme political uncertainty, a bloody civil war, and an unfolding proxy war just across the border do not inspire much confidence, which helps to explain the fact that Turkey’s FX reserves have now fallen below $100 billion for the first time since 2012:

And here’s an updated look at the lira which is in the midst of a rather epic decline (which threatens to destabilize inflation) thanks to everything noted above combined with a central bank that either i) doesn’t understand the gravity of the situation, or ii) is loathe to hike rates going into the election:

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

Germany Reintroduces “Border Controls” With Austria, Sends Riot Police As Refugee Crisis Spirals Out Of Control

Germany Reintroduces “Border Controls” With Austria, Sends Riot Police As Refugee Crisis Spirals Out Of Control

Two weeks ago, in what was the first official shot across the bow to Europe’s long-standing “Schengen” customs union, we reported that the Italian province of Bolzano across from the Austrian border announced it is willing to “temporarily suspend Schengen” and “restore border controls” following a request by the German state of Bavaria.

Today, none other than Europe’s master state, Germany itself, is about to launch an ICBM at Schengen when, as BBC reports, “Germany is to reintroduce some form of controls on its border with Austria to cope with the influx of migrants, German and Austrian media report.” While the BBC said that it is not clear what measures would be introduced, it is likely that a full return to the pre-Schengen era, with extensive customs checks of every border crosser is imminent.

BBBC further reports that”more than 13,000 migrants arrived into Munich alone on Saturday. Germany’s vice-chancellor said the country was “at the limit of its capabilities”. Germany’s Bild newspaper and Austria’s Kronen Zeitung said controls would be in place on the Bavaria-Austria border. Germany expects 800,000 migrants to arrive this year.”

Also, according to Germany’s Spiegel, German Interior Minister, Thomas de Maiziere, would make an announcement in the coming hours. Since last month, Mr de Maiziere said the Schengen agreement, which allows free movement between a large number of European countries, could be suspended, it is quite likely that as of today, Europe’s customs union will officially be halted if only temporarily.

Kronen Zeitung said that Bavarian police will begin to carry out checks “to determine immediately who is entitled to asylum”, but it is not clear how such checks would be made.

Earlier on Sunday, Germany’s Vice-Chancellor Sigmar Gabriel, who is also economy minister, warned the country was being stretched to its limits by the new arrivals.

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

 

 

 

Powder Kegs Exploding: Violence Escalates In Turkey, Yemen As Mid-East Tips Towards Chaos

Powder Kegs Exploding: Violence Escalates In Turkey, Yemen As Mid-East Tips Towards Chaos

On Friday we checked in on two of the world’s most important conflicts: 1) that which is unfolding in Turkey where President Recep Tayyip Erdo?an has effectively granted Washington access to Incirlik (you know, for “anti-terror” sorties) in exchange for NATO’s acquiescence to a brutal crackdown on the Kurds as AKP looks to usurp Turkey’s fragile deomcracy, and 2) that which is unfolding in Yemen, where a Saudi-led coalition isfighting to restore the government of Abd Rabbuh Mansur Hadi.

In Turkey, Erdogan has successfully undermined the coalition building process necessitating new elections in November when he hopes the escalation of violence across the country will prompt voters to restore AKP’s parliamentary majority allowing the President to rewrite the constitution and consolidate his power. Journalists are being arrested, a terror “tip line” has been set up, a 24-hour Erodgan Presidential TV channel is in the works, and the country has, for all intents and purposes, been plunged into civil war with ISIS acting as a smokescreen for Erdogan’s power grab.

As for Yemen, the Iran-backed Houthis have been driven back by Saudi and UAE troops but the problem, asWSJ noted last week, is that the ragtag militia in Aden is “a motley group that spans the spectrum from southern secessionists to ultraconservative Salafi Islamists to supporters of al Qaeda.” In other words, it doesn’t seem all that far-fetched to suggest that should restoring Hadi ultimately prove to be impossible, an independent South Yemen could end up falling into the hands of extremists, which would be ironic not only for the fact that it would represent the latest example of US foreign policy gone horribly awry, but also because according to at least one source, the Saleh government – whose fighters are now allied with the Houthis – for years worked with AQP while accepting US anti-terror funding. Notably, were Yemen to split in two, it would also effectively create a permanent Iranian colony on Saudi Arabia’s southern border.

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

 

 

Greek Capital Controls Begin: Greek Banks, Stock Market Will Not Open On Monday

Greek Capital Controls Begin: Greek Banks, Stock Market Will Not Open On Monday

Update 2: Greece’s Skai reports that if/when banks reopen (supposedly on Tuesday), a 60€ withdrawal limit will be imposed.

Update: In a televised address to the nation, Greek PM Alexis Tsipras assured Greeks that their deposits are safe despite an upcoming bank holiday and despite the fact that Greek stocks will not open for trading on Monday. Tsipras also said Athens has re-applied for a bailout extension and urged Greeks to “remain calm” in the face of what is sure to be a turbulent week.

  • GREEK PRIME MINISTER SAYS GREEK PEOPLE SHOULD REMAIN CALM
  • GREEK PM: BANK OF GREECE PROPOSED BANK TRANSACTION RESTRICTIONS
  • GREEK PRIME SAID GREECE RE-APPLIED FOR BAILOUT EXTENSION
  • GREEK PRIME MINISTER SAYS DEPOSITS ARE COMPLETELY SAFE

Earlier:

Despite the reassurances from any and all elected (and unelected) officials, given the run on bank ATMs in Greece has turned into a stampede, it is not surprising that:

  • GREEK BANKS TO REMAIN CLOSED FROM MONDAY FOR A WEEK: PIRAEUS BANK CEO
  • PIRAEUS BANK CEO THOMOPOULOS SPEAKS TO REPORTERS IN ATHENS

The announcement was made when Piraeus Bank CEO Anthimos Thomopoulos told reporters after a meeting of the government’s financial-stability panel on Sunday. The launch of capital controls just as the Greek summer tourism season starts, is sure to be the final crushing blow to Greece, whose entire economy will now grind to a halt.

At the same time, Finance Minister Yanis Varoufakis said an announcement would be made after a Cabinet meeting due to start imminently in Athens. Which is ironic considering just earlier today Varoufakis said he is opposed to the “very concept” of capital controls:


Capital controls within a monetary union are a contradiction in terms. The Greek government opposes the very concept.

Banks will remain shut until at least after a July 5 referendum called by Prime Minister Alexis Tsipras on whether to accept austerity in exchange for a European bailout, Kathemerini newspaper reported, citing unnamed sources.

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

 

 

Olduvai IV: Courage
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