Category Archives: Corporate Welfare

A Great Awakening – Public Support for Fake “Free Trade” Deals Plunges in the U.S. and Europe

Mike Krieger
Liberty Blitzkrieg: April 21, 2016

The plethora of “free trade” deals (TPP, TTIP and TISA) being promoted by the global robber barons in power are nothing more than fascist corporate handouts (links at the end). Calling them “free trade” deals is purely for PR, and primarily serves as a means for marketing these scams to the ignorant masses.

Fortunately, I have some good news to share. The public is not as ignorant as it used to be. There’s a massive awakening happening, and it’s sweeping these United States as well as Europe.

As Reuters reports in the article, Survey Shows Plunging Public Support for TTIP in U.S. and Germany:

Support for the transatlantic trade deal known as TTIP has fallen sharply in Germany and the United States, a survey showed on Thursday, days before Chancellor Angela Merkel and President Barack Obama meet to try to breathe new life into the pact.

The survey, conducted by YouGov for the Bertelsmann Foundation, showed that only 17 percent of Germans believe the Transatlantic Trade and Investment Partnership is a good thing, down from 55 percent two years ago.

In the United States, only 18 percent support the deal compared to 53 percent in 2014. Nearly half of U.S. respondents said they did not know enough about the agreement to voice an opinion.

Those are absolutely incredible numbers, and can only really be explained by low information voters becoming educated. It reminds me of something I pointed out in last year’s post, As the Senate Prepares to Vote on “Fast Track,” Here’s a Quick Primer on the Dangers of the TPP:

Mr. McConnell could repeat the exercise with a different package, but the delay would add to the risk that the legislation stalls until after Memorial Day recess. That could weigh on the bill’s overall chances, since opponents are generating grassroots opposition across the country.

That just says it all doesn’t it? They need to pass it before the public has a chance to learn about it and oppose it. Typical Washington D.C. bullshit.

The writing was already on the wall a year ago, which is why politicians were scrambling to pass TPP fast track as quickly as possible, which, of course, they did.

So the good news is the public is clearly waking up. What’s a bit depressing is that it’s taken so many decades. Yes, decades.

As I was just entering my teenage years back in 1992, a quirky, billionaire named Ross Perot launched what remains the most successful third-party presidential bid of my lifetime. His core issue was opposition to the one-sided “trade” deal known as NAFTA, which he said would ruin the country.

Watch the video below. He predicted everything that was to come in the decades ahead.

(read the full article at Liberty Blitzkrieg

Canada plans $1.5 Billion of corporate welfare for fighter jet training

Help wanted: Top guns for dogfights with Canada’s CF-18 fighter pilots

David Pugliese
Ottawa Citizen: March 11, 2016

Canada’s top guns are in need of some top guns to fight against.

And they’ll get such adversaries by the end of the year.

The Canadian government plans to award by December a contract, estimated to be worth as much as $1.5 billion, to a fleet of fighter jets to go toe-to-toe with the military’s CF-18s.

A private company will be selected to act as the training partner for Canada’s fighter pilots, as well as provide other aircraft to act as the enemy for the Canadian army and navy.

The project, known as the Contracted Airborne Training Services or CATS, will run over an initial 10-year period, followed by the option to continue for another five years.

The Canadian-based Discovery Air Defence has been providing such services for the Canadian military since 2005. It has also expanded its operations internationally and was recently hired to do the same thing for Germany’s armed forces.

But the Canadian government wants to open the competition up potentially to other firms. Pierre-Alain Bujold, a spokesman for Public Services and Procurement Canada, said the bids for CATS went in Feb. 16. “The evaluation, which includes aircraft inspection, is expected to take up to five months,” he explained. “The contract is expected to be awarded by the end of 2016.”

Two firms have publicly acknowledged they have submitted bids: Discovery Air Defence of Montreal, and CAE, also from Quebec, which has allied itself with Draken, a U.S. firm.

Garry Venman, vice-president of business development and government relations at Discovery Air Defence, said the company pioneered the concept in Canada of such airborne services and is now considered an industry leader throughout the world.

“We’ve flown more than 55,000 hours in support of the Canadian and German militaries,” he said. “We’ve got the experience of doing it for the last 11 years.”

Discovery Air Defence traces its lineage to 2001, when it was founded by three former CF-18 pilots.

The firm has what is considered the world’s largest fleet of operational fighter jets in private hands. The company is now looking to acquire U.S.-built F-16 fighters for more advanced training.

“We’re poised for significant growth,” Venman said. “We’re doing all the things the Canadian government says it wants Canadian companies to do — creating jobs and conducting business internationally.”

(read the full article at The Province)

How Vancouver Is Being Sold To The Chinese: The Illegal Dark Side Behind The Real Estate Bubble

Zero Hedge : March 10, 2016

One month ago, when describing the latest in an endless series of Vancouver real estate horror stories, in this case an abandoned, rotting home (which is currently listed for a modest $7.2 million), we explained the simple money-laundering dynamic involving Chinese “investors” as follows.

Chinese investors smuggle out millions in embezzled cash, hot money or perfectly legal funds, bypassing the $50,000/year limit in legal capital outflows.
They make “all cash” purchases, usually sight unseen, using third parties intermediaries to preserve their anonymity, or directly in person, in cities like Vancouver, New York, London or San Francisco.
The house becomes a new “Swiss bank account”, providing the promise of an anonymous store of value and retaining the cash equivalent value of the original capital outflow.

We also explained that hundreds if not thousands of Vancouver houses, have become a part of the new normal Swiss bank account: “a store of wealth to Chinese investors eager to park “hot money” outside of their native country, and bidding up any Canadian real estate they could get their hands on.”

This realization has now fully filtered down to the local population, and as the National Post writes in its latest troubling look at the “dark side” of Vancouver’s real estate market, it cites wholesaler Amanda who says that “Vancouver seems to be evolving from a residential city into almost like a lockbox for money… but I have to live among the empty houses. I’m a resident, not just an investor.”

The Post article, however, is not about the use of Vancouver (or NYC, or SF, or London) real estate as the end target of China’s hot money outflows – by now most are aware what’s going on. It focuses, instead, on those who make the wholesale selling of Vancouver real estate to Chinese tycoons who are bidding up real estate in this western Canadian city to a point where virtually no domestic buyer can afford it, and specifically the job that unlicensed “wholesalers” do in spurring and accelerating what is currently the world’s biggest housing bubble.

A bubble which, the wholesalers themselves admit, will inevitably crash in spectacular fashion.

This is the of about Amanda, who was profiled yesterday in a National Post article showing how a “Former ‘wholesaler’ reveals hidden dark side of Vancouver’s red-hot real estate market.” Amanda quit her job allegely for moral reasons; we are confident 10 people promptly filled her shoes.

* * *

Vancouver’s real estate market has been very good to Amanda. She’s not a licensed realtor, but buying and selling property is her full-time job.

She started about eight years ago as an unlicensed “wholesaler” in Vancouver.

She would approach homeowners and make unsolicited offers for private cash deals. Amanda made a 10-per-cent fee on each purchase by immediately assigning the contract to a background investor. It is seen as the lowest job in property investment, but it is low risk and very profitable. Amanda has done so well that she now owns two homes in Vancouver and develops property in the U.S.

Unlicensed wholesaling is an illicit and predatory business that is quickly growing in Metro Vancouver because enforcement is virtually non-existent.

It’s similar to a tactic currently being examined by B.C. real estate authorities known as “assignment flipping,” which involves legally but secretly trading homes on paper to enrich realtors and circles of investors.

However, unlicensed wholesaling is completely unregulated. Amanda estimates hundreds of wholesalers are scouring Metro Vancouver’s never-hotter speculative market — not including the realtors who are secretly wholesaling for themselves.

Amanda decided to step away from the easy money for moral reasons.

She’s most concerned that wholesalers are targeting B.C.’s vulnerable seniors who don’t understand the value of their old homes. She is also worried about offshore money being laundered, and the resulting vacant homes.

Because wholesalers are unlicensed, they have no obligation to identify their background investors or reveal the source of funds to Canadian authorities who fight money laundering.

“Vancouver seems to be evolving from a residential city into almost like a lockbox for money,” Amanda said. “But I have to live among the empty houses. I’m a resident, not just an investor.”

Amanda said she believes that unethical and ignorant investors are driving B.C.’s housing market at full speed towards a crash. For these reasons, and with the condition that we not use her real name, she came forward to reveal how wholesalers operate.
[…]
“A lot of money is leaving China, so now every second day people are asking if I can go out and find places for them. They have tons of money,” Amanda said. “They are basically brokering business deals specifically for Chinese investors.”

She said the mechanics of wholesaling schemes work like this:

The investor behind the unlicensed broker targets a block, often with older homes, and gives the wholesaler cash in a legal trust.

The wholesaler persuades a homeowner to sell, offering immediate cash, no subjects, no home inspections, and savings on realtor fees.

While the wholesaler claims to represent one buyer, or in some cases to be the buyer, Amanda said three or four contract flippers are often already lined up, with an end-buyer from China who will eventually take title in most cases. These unlicensed broker deals appear to be illegal.

A veteran Vancouver realtor confirmed these types of deals. The realtors we spoke to have been asked by their brokerages not to comment to reporters, so we agreed to withhold their names.

“I work with some non-licensed flippers,” one said. “They walk on to the lawn of an older house, see the owner and yell, ‘We’re not realtors!’ The owner invites them in, thinks they’re saving a commission — which they are — and loses big-time on the actual sale. I’ve seen it first-hand.”

According to flyers obtained from across Metro Vancouver and interviews with homeowners who were solicited, wholesalers often say they have Chinese buyers willing to pay a premium for quick sales.

Homeowners in Richmond, Vancouver’s east and west sides, Surrey, Langley, Coquitlam, Burnaby, White Rock, Delta and North Vancouver confirmed such offers in interviews.

One resident of Vancouver’s west side Dunbar area said she was annoyed by wholesalers constantly soliciting her, and a man in Surrey said his elderly mother was bothered by wholesalers.

“A guy walked up and he offered $700,000 cash within a day, and he said I would save on the realtor fees,” said Zack Flegel, who lives near 119th Street and Scott Road in Delta.

“He also says he will give me $100,000 cash and move me into a $600,000 house. He said he has a bunch of properties. He was talking about my house like it was a trading card. We don’t have abandoned homes yet like Vancouver, but this is how it happens, right?”

After the offer is accepted, the wholesaler assigns the purchase contract to the investor for a 10-per-cent markup, Amanda said. But some wholesalers aren’t content with making $100,000 or more per sale.

“People were going in and offering, for example, an 80-year-old widow, she bought the house for $70,000 and it is now worth $800,000 and they were offering her $200,000,” Amanda said. “So they are making $300,000 or $400,000 (after assigning the contract).

“And you are socializing with other wholesalers, and it is hard to hear them say, ‘Oh this whole street is filled with seniors whose partners are dropping off like flies.’ Or, ‘They just want to get rid of it, they have no clue what their house is worth, and it’s the whole street.’”

Amanda said her father died recently. She pictured her mother being targeted by wholesalers and resolved never to play that role again.

“There are elements of this that are elder abuse, absolutely.”

In a recent story that deals with implications of rising property taxes rather than predatory real estate practices, the Financial Post reported that, especially in Vancouver and Toronto’s scorching markets, “it’s not uncommon for some Canadian seniors to be unaware of the value of their location.”

B.C.’s Superintendent of Real Estate, Carolyn Rogers, conceded the potential for elder abuse as reported by Amanda.

“We would welcome an opportunity to speak to (Amanda) and assuming she gives us the same information, we would open a file,” Rogers said. “The conditions in the Vancouver market right now present risks … and seniors could be an example of that.”

It is illegal for wholesalers to privately buy and sell property for investors without a licence, Rogers said. She said her officers have approached some wholesalers recently and asked them to become licensed or cease their activities.

A review of the superintendent’s website shows no enforcement orders, fines or consumer alerts filed in connection to unlicensed wholesalers making cash deals and flipping contracts.

Amanda said that over the past year she learned of new levels of “layering and complexity that I didn’t see five years ago” in wholesaling and assignment-clause flipping.

“Five years ago I didn’t see realtors wholesaling, and I didn’t see people calling me so that I would get them a property and not assign the property to them, but work as a ‘partner’ and I would attach a 10-per-cent fee.

“And then they would assign it to their boss and attach 10 per cent, and then that person’s boss would attach 10 per cent. I’ve been watching over the last month, and it has got astounding.”

Amanda said some wholesale deals involve only unlicensed brokers and pools of offshore cash organized informally, and some appear to involve realtors and brokerages hiding behind unlicensed wholesalers.

“I’ve seen it from the back end. We have friends in the British Properties and the realtor said he will buy their property for $2 million. And then six months later it was sold for $3.5 million. When I’m looking at that, it is a pretty clear wholesale deal.”

Darren Gibb, spokesman for Canada’s anti-money-laundering agency, FINTRAC, confirmed that unlicensed property buyers have no obligation to report the identity or sources of funds of the buyers they represent.

However, Gibb said, if realtors are involved in “assignment flipping” it is mandatory that they and unlicensed assistants make efforts to identify every assignment-clause buyer and their sources of funds.

Vancouver realtors confirmed that money laundering is a big concern in assignment-flipping deals, whether organized by an unlicensed wholesaler or a realtor.

“When you are a non-realtor broker you no longer have to play by any rules,” one Vancouver realtor said.

“There is a role for assignments, but nobody is asking where the money came from. We are creating vehicles for money laundering.”

“No person in their right mind wants to buy your house once, and sell it three more times in a small window of opportunity, unless they have a whole pool of people lined up trying to get their money out of the country. The higher the prices go, these vehicles to get money out of the country get bigger and bigger.”

NDP MLA David Eby and Green MLA Andrew Weaver commented that allegations of unlicensed brokers targeting seniors and participating in potential money-laundering schemes call for direct action from Victoria and independent investigation, because these concerns fall outside the jurisdiction of the B.C. Real Estate Council and its current ongoing review of real estate practices.

“It is very troubling to me,” Eby said, “that not only do we have a layer of real estate agents that are acting improperly and violating the rules, but there might be this additional layer who are not bound by any rule and have explicitly avoided becoming agents for that reason.

“This unscrupulous behaviour is targeting seniors who need money for retirement. What kind of society is that?” Weaver said.

Read the full article at: Zero Hedge/National Post

Obama seeks corporate welfare funds for Zika vaccine

Roberta Rampton and Ben Hirschler
Reuters : February 8, 2016

White House seeks $1.8-billion in emergency funds for Zika virus

Barack Obama will ask the U.S. Congress for more than $1.8 billion in emergency funds to fight Zika at home and abroad and pursue a vaccine, the White House said on Monday, but the president also said there is no reason to panic over the mosquito-borne virus.

Zika, spreading rapidly in South and Central America and the Caribbean, has been linked to severe birth defects in Brazil and public health officials’ concern is focused on pregnant women and woman who may become pregnant.

Obama’s request to Congress includes $200 million for research, development and commercialization of new vaccines and diagnostic tests for the virus.

In addition, the London-based European Medicines Agency (EMA), Europe’s drugs regulator, said it has formed an expert task force on Zika to advise companies working on vaccines and medicines against the virus.

There are no vaccines or treatment for Zika and none even undergoing clinical studies, as the disease had previously been viewed as relatively benign. Most infected people develop either no symptoms or mild ones like a fever and skin rashes.

(read the full article at The Globe & Mail

RELATED:
Zika Outbreak Epicenter in Same Area Where GM Mosquitoes Were Released in 2015

Vancouver’s Housing Market Money Laundering Fraud

AlternativeFreePress.com

what is happening is quite simple:

Chinese investors smuggled out millions in embezzled cash, hot money or perfectly legal funds, bypassing the $50,000/year limit in legal capital outflows.
They make “all cash” purchases, usually sight unseen, using third parties intermediaries to preserve their anonymity, or directly in person, in cities like Vancouver, New York, London or San Francisco.
The house becomes a new “Swiss bank account”, providing the promise of an anonymous store of value and retaining the cash equivalent value of the original capital outflow.
Then the owners disappear, never to be heard from or seen again.

As more Chinese scramble to engage and repeat if only the first three steps, the price of local housing, which is merely a store of value to price indiscriminate foreign buyers, soars while it makes home purchases for the domestic population prohibitively expensive and virtually impossible.

These Vancouver Homes Sold For Millions In 2011 And Have Been Vacant And Rotting Since: Here’s Why

Interviews conducted by B.C. Securities Commission investigators and read into evidence in a Securities Commission fraud hearing against Ayaz Dhanani reveal a complex real estate transaction with connections to alleged fraud and organized crime players. …

NDP MLA David Eby, B.C.’s opposition housing critic, said facts gathered by The Province provide perhaps unprecedented detail and corroboration of similar allegations reported to his office concerning offshore buyers and local realtors.

“I was really troubled by the facts in your case,” Eby said in an interview. “And I’m concerned this is not a one-off situation, and this could be a systemic, regular practice. There is enough information to raise red flags for investigations.”

Follow the money: Evidence submitted at fraud probe points to concerns about Vancouver real estate market

“It has come to light that institutions have been, I would say inadvertently, making mortgages to people whose income has been falsified,” said Jeremy Rudin, superintendent of financial institutions.

Mortgage fraud a key threat to Canada’s financial system


Vancouver Real Estate Goes Full-Retard; Average Home Price Now $1.8 Million

Properties are traded one or more times before a deal closes – legal but controversial flipping that creates opportunities for agents to make multiple commissions and investors to profit tax-free from houses that are not yet technically in their possession.

Because assignment sales are rarely listed publicly, they have created a thriving grey market that is accessible largely to investors, speculators and real estate agents who have insider information.

What’s more, the assignment market appears to reward neither the original seller nor the ultimate buyer, despite pushing prices higher and higher: Sellers receive less for their properties than what buyers are finally willing to pay at the end of the chain. And buyers – many of them foreign or backed by foreign investors – pay more than they would have to if the middlemen weren’t involved.

The resulting distortions threaten to strain the public’s trust in the real estate brokerage business, according to some in the profession, while others openly question the sustainability of a market they are heavily invested in – and helped create.

“It worries me a lot that this could all come crashing down. I worry about it all the time,” said one Re/Max agent, Khalid Hasan, who said he owns or co-owns 15 to 20 properties, all destined for resale.

“A lot of people are just assigning and flipping in this market – because they can make more money,” said Mr. Hasan, who said he’s bought several properties through assignments. “We witness assigning all the time – crazy assignments.”

The real estate technique fuelling Vancouver’s housing market

Clinton Emails Confirm NATO Destroyed Libya to Prevent African Gold-Backed Currency

CoNN
ANONHQ : January 29, 2016

Hillary’s emails truly are the gifts that keep on giving. While France led the proponents of the UN Security Council Resolution that would create a no-fly zone in Libya, it claimed that its primary concern was the protection of Libyan civilians (considering the current state of affairs alone, one must rethink the authenticity of this concern). As many “conspiracy theorists” will claim, one of the real reasons to go to Libya was Gaddafi’s planned gold dinar.

One of the 3,000 Hillary Clinton emails released by the State Department on New Year’s Eve (where real news is sent to die quietly) has revealed evidence that NATO’s plot to overthrow Gaddafi was fueled by first their desire to quash the gold-backed African currency, and second the Libyan oil reserves.

The email in question was sent to Secretary of State Hillary Clinton by her unofficial adviser Sydney Blumenthal titled “France’s client and Qaddafi’s gold.”

From Foreign Policy Journal:

“The email identifies French President Nicholas Sarkozy as leading the attack on Libya with five specific purposes in mind: to obtain Libyan oil, ensure French influence in the region, increase Sarkozy’s reputation domestically, assert French military power, and to prevent Gaddafi’s influence in what is considered ‘Francophone Africa.’

“Most astounding is the lengthy section delineating the huge threat that Gaddafi’s gold and silver reserves, estimated at “143 tons of gold, and a similar amount in silver,” posed to the French franc (CFA) circulating as a prime African currency.”

And here is the section of the email proving that NATO had ulterior motives for destroying Libya:

“This gold was accumulated prior to the current rebellion and was intended to be used to establish a pan-African currency based on the Libyan golden Dinar. This plan was designed to provide the Francophone African Countries with an alternative to the French franc (CFA).

“(Source Comment: According to knowledgeable individuals this quantity of gold and silver is valued at more than $7 billion. French intelligence officers discovered this plan shortly after the current rebellion began, and this was one of the factors that influenced President Nicolas Sarkozy’s decision to commit France to the attack on Libya. According to these individuals Sarkozy’s plans are driven by the following issues:

a. A desire to gain a greater share of Libya oil production,

b. Increase French influence in North Africa,

c. Improve his internal political situation in France,

d. Provide the French military with an opportunity to reassert its position in the world,

e. Address the concern of his advisors over Qaddafi’s long term plans to supplant France as the dominant power in Francophone Africa)”

Ergo as soon as French intel discovered Gaddafi’s dinar plans, they decided to spearhead the campaign against him- having accumulated enough good reasons to take over.

Sadly, Gaddafi had earlier warned Europe (in a “prophetic” phone conversations with Blair) that his fall would prompt the rise of Islamic extremism in the West. A warning that would go unheeded; what’s a few lives in France and Libya, if the larger goal lines the pockets of politicians and the elite so much better after all?

SOURCE: ANONHQ(cc)

Central bankers don’t have things under control

Doug Noland
Credit Bubble Bulletin : January 23, 2016

Global markets were too close to dislocating this week. Wednesday saw the S&P500 trade decisively below August lows. Japan’s Nikkei 225 Index sank to test November 2014 lows. Emerging stocks fell to six-year lows, with European equities at 13-month lows. Wednesday also saw WTI crude trade below $27 (sinking almost 7%), boosting y-t-d losses to 25%. Credit spreads were blowing out, and currency markets were increasingly disorderly. Early Thursday trading saw the Russian ruble down 5.3% (at a record low vs. dollar), with Brazil’s real also under intense pressure. The Hong Kong dollar peg was looking vulnerable. The VIX traded to the highest level since the August “flash crash,” while the Japanese yen traded to one-year highs (vs. $). De-risking/de-leveraging dynamics were quickly overwhelming global markets.

Something had to be done…

Bloomberg adjusted its original Friday morning headline, “Global Stocks Charmed by Draghi Effect as Oil Rallies With Ruble,” to “Global Stocks Charmed by Central Banks as Oil Jumps, Bonds Fall.” Draghi did have some help. The People’s Bank of China (PBOC) injected $61 billion of liquidity into the system, the “most in three years.” China’s Vice President assured the markets that Beijing will “look after” Chinese stock investors. There was also talk of added stimulus from the Bank of Japan (BOJ) and a much more dovish Fed. The markets interpreted a feistily dovish Draghi as evidence that global central bankers had assumed crisis-management mode.

The markets will now have six-weeks to ponder whether Draghi can deliver. Even assuming that he successful drags ECB hawks along, it’s not easy to envisage how an additional $10 billion or so of QE will have much impact on (bursting) global Bubble Dynamics. An emphatic Draghi was, however, certainly capable of reversing global risk markets that were increasingly positioned/hedged for bearish outcomes. Over the years we’ve witnessed powerful short squeezes take on lives of their own, repeatedly giving the global Bubble an extended lease on life. And while bear market rallies tend to be the most spectacular, at this point I expect nothing beyond fleeting effects on the unfolding global Bubble unwind. Draghi is a seasoned pro at punishing speculators betting against Europe.

The media fixates on “corrections,” “bottoms” and “bear markets.” Of late, there’s been some comparison of the current backdrop to previous periods, most notably 2008/09 and 2000. I have no desire to try to leapfrog other bearish commentary. My objective is always to present an analytical framework that assists in understanding the extraordinary world in which we live and operate.

Going back to 2009, I’ve referred to the “global government finance Bubble” as the “Granddaddy of All Bubbles.” I am these days more fearful than ever that this period has indeed been the terminal phase of decades of serial Bubbles. Bubble excess made it to the heart of contemporary “money” and Credit – central bank Credit and government debt. This period also saw a historic Bubble engulf the emerging markets, including China. It encompassed stocks, bonds, derivatives and financial assets generally – virtually everywhere. Central bankers “printed” Trillions out of thin air.

Today’s predicament is becoming increasingly apparent: as the current global Bubble deflates and risk aversion takes hold, there is both a lack of sources of reflationary Credit and insufficient economic growth potential necessary to inflate an even bigger reflationary global Bubble. With confidence in central banking waning and the monstrous Chinese Bubble faltering, there is confirmation in the thesis that a most prolonged period of inflationary financial Bubbles is drawing to a close.

The collapse of the Soviet Union coupled with the Greenspan Fed’s push into activist central banking ushered in what was almost universally accepted as an epic victory for free-market capitalism. Too much of this was a quite powerful illusion. U.S. finance was becoming increasingly state-directed. The Fed manipulated interest-rates and the shape of the yield curve. The Washington-based GSEs moved to completely dominate mortgage Credit. The massive U.S. “too big to fail” financial conglomerates came to dictate securities and derivatives-based finance – and market-based finance monopolized the real economy. And each faltering Bubble ensured more aggressive central bank “activism” – lower rates, greater market intervention and increasingly outlandish talk of “helicopter money” and the government printing press.

With the bursting of the mortgage finance Bubble, the Fed and global central banks resorted to desperate measures – reckless “money” printing, manipulation and market liquidity backstops. Along the way, virtually the entire world adopted U.S.-style market-based finance and policymaking. The process culminated with communist China adopting U.S.-style finance. So long as inflating financial markets were supportive of central planner objectives, everyone could pretend it was a move toward free markets.

What began with Greenspan’s early-nineties covert bank recapitalization evolved into Bernanke’s foolish policy to openly inflate risk markets with new central bank Credit. Amazingly, U.S. inflationism took the world by storm.

The issue today goes much beyond a stock market correction, a bear market or even global financial crisis. Contemporary central banking has failed. Theories have failed. Doctrine has failed. The inability to spur self-sustaining economic recovery has been a major issue. Yet, from my perspective, the critical failure has been the incapacity to generate general price inflation. The delusion has been that central bankers would always enjoy the capacity to inflate away excessive debt levels. Bubbles needn’t be feared, not with central banks “mopping” up with reflationary monetary stimulus. And for quite a while it seemed that “enlightened” contemporary inflationist doctrine had it all figured out.

Central bankers and market-based finance are a dangerous mix. Over the years, I have referred to market-based finance as the most powerful monetary policy transmission mechanism in the history of central banking. Greenspan could inflate the markets – and the entire system – with inklings of a 25 bps rate cut. Later it took Dr. Bernanke Trillions – the dawn of “whatever it takes,” and markets rejoiced.

Central banks around the world abused their newfound power and the power of financial markets. And for seven years egregious monetary inflation has been used specifically to inflate global securities markets. And “shock and awe,” “whatever it takes,” and “push back against a tightening of financial conditions” all worked to ensure the markets that central bankers would no longer tolerate crises, recessions or even a bear market.

For seven long years, risk misperceptions and market price distortions turned progressively more severe. Inflating securities markets around the globe became, as they do, self-reinforcing. “Money” flooded into the markets – especially through ETFs and derivatives. Trillions flowed into perceived safe equities index and corporate debt instruments. With central bankers providing a competitive advantage for leveraging and professional speculation, the hedge fund industry swelled to $3.0 TN (matching the $3 TN ETF complex). Wealth effects and the loosest financial conditions imaginable boosted spending, corporate profits, incomes, investment, tax receipts and GDP – not to mention M&A, stock repurchases and financial engineering.

But this historic wealth illusion has been built on a foundation of false premises – that central bank monetization can inflate price levels and spur system inflation necessary to grow out of debt problems; that securities markets should trade at higher multiples based upon contemporary central banker capacities to spur self-reinforcing economic recovery and liquid securities markets; that 2008 was “the hundred year flood.” In reality, central bankers inflated history’s greatest divergence between global securities prices and economic prospects.

Global markets have commenced what will be an extremely arduous adjustment process. Markets must now confront the harsh reality that central bankers don’t have things under control. Risk premiums must rise significantly – which means the destabilizing self-reinforcing dynamic of lower securities prices, faltering economic growth, uncertainty, fear and even higher risk premiums. This means major issues for global derivatives markets that have inflated to hundreds of Trillion on misperceptions and specious assumptions. I’ll assume Draghi, Kuroda, Yellen, the PBOC and others resort to more QE – and perhaps they prolong the adjustment period while holding severe global crisis at bay. But the global Bubble has burst. And if QE has been largely ineffective in the past, we’ll see how well it works as confidence in central banking withers. Perhaps this helps explain why global financial stocks now trade like death.

Excerpted from credit bubble bulletin

15 News Stories from 2015 You Should Have Heard About But Probably Didn’t

Carey Wedler
theAntiMedia.org : December 30, 2015

In 2015, the iron fist of power clamped down on humanity, from warfare to terrorism (I repeat myself) to surveillance, police brutality, and corporate hegemony. The environment was repeatedly decimated, the health of citizens was constantly put at risk, and the justice system and media alike were perverted to serve the interests of the powers that be.

However, while 2015 was discouraging for more reasons than most of us can count, many of the year’s most underreported stories evidence not only a widespread pattern that explicitly reveals the nature of power, but pushback from human beings worldwide on a path toward a better world.

 1. CISA Pushed Through the Senate, Effectively Clamping Down on Internet Freedom: For years, Congress has attempted to legalize corporate and state control of the internet. In 2011, they attempted to pass PIPA and SOPA, companion bills slammed by internet and tech companies and ultimately defeated after overwhelming public outcry. Then they passed  CISPA — which the president threatened to veto, having caught wind of the public’s opposition to heavy regulation of the internet (earlier this year, Obama reversed his position). However, corporate interests, like Hollywood’s studio monopoly, kept lawmakers’ tenacity afloat.

In October, Congress passed CISA, the Cybersecurity Information Sharing Act, but as the Electronic Freedom Foundation explained: “CISA is fundamentally flawed. The bill’s broad immunity clauses, vague definitions, and aggressive spying powers combine to make the bill a surveillance bill in disguise. Further, the bill does not address problems from the recent highly publicized computer data breaches that were caused by unencrypted files, poor computer architecture, un-updated servers, and employees (or contractors) clicking malware links.” Just before Christmas, Congress went even further, adding an amendment to the annual omnibus budget bill that strips CISA’s minimal privacy provisions even more. That budget bill was approved, though Representative Justin Amash of Michigan has vowed to introduce legislation to repeal the CISA provisions when Congress reconvenes.

But CISA wasn’t the only attack on citizens’ privacy this year. Though lawmakers touted the USA Freedom Act as a repeal of the mass surveillance state, in reality, it simply added a bureaucratic step to the process by which government agencies obtain private information. Further, a hack on Italian security firm, aptly called Hacker Tools, revealed that various agencies — including the DEA, NSA, Army, and FBI — possess software that enables them to, as Anti-Media reported, “view suspects’ photos, emails, listen to and record their conversations, and activate the cameras on their computers…” At the same time, the United Kingdom and France moved to tighten their already comprehensive surveillance apparatuses in the wake of multiple terrorist attacks. Though governments claim systematic surveillance is necessary to protect citizens — and Snowden’s leaks endangered that safety — the United States government has been unable to produce sufficient evidence the programs work. Instead, the documents the Department of Defense released this year as proof of the alleged endangerment were entirely redacted.

2. CIA Whistleblower Sent to Prison for Revealing Damning Information to a Journalist: While the government has no problem invading the privacy of its citizens, it offers swift backlash for those who attempt to violate its own clandestine operations. Jeffrey Sterling, a former CIA agent, had his first altercation with the CIA when he sued for racial discrimination in 2001. He was subsequently fired. Years later, the CIA filed espionage charges against him for speaking with New York Times journalist, James Risen. Sterling had revealed a botched CIA scheme, Operation Merlin, to infiltrate Iranian intelligence that ultimately worsened the situation, gave Iran a nuclear blueprint, and was deemed by some to be espionage, itself. Rather than acknowledge the woeful misstep, the CIA arrested him, charged him, and ultimately sentenced him to 42 months in prison. The trial was reportedly biased, but nevertheless, was severely underreported by the media. Sterling’s conviction reflects the ongoing war on whistleblowers, which Obama has successfully expanded during his presidency. Sterling joins the ranks of Edward Snowden, Chelsea (formerly Bradley) Manning, and others, including a whistleblower who worked for OSHA’s Whistleblower Protection Program and was fired for exposing dysfunction and incompetence within the ranks.

3. Press Freedom Continued to Deteriorate: An annual report from the World Press Freedom Index saw the United States slip 29 spots from last year, landing 49th out of 180 total. In January, journalist Barrett Brown was sentenced to five years in prison for exposing the findings of hacker Jeremy Hammond. Brown was charged with obstructing justice, aiding and abetting, and separate charges of allegedly threatening the FBI in a rant. Hammond, who exposed severe violations of privacy on the part of Stratfor, a CIA contractor, was sentenced to ten years in prison. Brown’s experience was not an isolated incident. Journalists around the world, like several journalists who were killed while investigating ISIS in Turkey, faced increased danger. One small-town journalist in India was burned alive after exposing a corrupt politician.

4. Multiple Activists Arrested, Charged with Felonies for Educating Jurors About Their Rights: In an ongoing trend, otherwise peaceful, non-violent individuals were harassed by police and courts — not for exposing secret information, but for providing information to potential jurors about their rights in the courtroom. One Denver jury nullification activist, followed by another, was charged with multiple felonies for handing out pamphlets that explain a juror’s right to vote “not guilty” in a verdict, even if the defendant is clearly guilty. This right was established to allow jurors to vote with their conscience and question the morality of laws, from the 19th century’s Fugitive Slave Act to Prohibition, both of alcohol in the 1920s and of marijuana today. The Denver activists are awaiting trial, while more recently, a former pastor was charged with a felony for the same reason.

In other unjust convictions and failings of the “justice” system, an African-American man was sentenced to seven years in prison for barking at a police dog, a Kansas mother faces decades in prison for using marijuana to treat her debilitating Crohn’s disease, and a mentally ill man died in jail after being held for stealing five dollars worth of snacks from a convenience store. He had inexplicably been waiting months to be transferred to a medical facility. Ross Ulbricht, founder of the dark web marketplace, the Silk Road, was sentenced to life in prison in spite of the fact that he committed no violent crimes — though the FBI attempted to paint a false picture that he did, albeit without filing formal charges. The prosecution was rife with corruption and scandal; two FBI agents involved in the case were charged with stealing Bitcoin during the investigation. In July, one admitted to stealing $700,000 worth of the digital currency.

5. Six-Year-Old Autistic Boy Killed by Police: 2015 established not only that the justice system remains broken, but the the enforcement class — police officers — continues to terrorize citizens. In one underreported case, a six-year-old boy was fatally caught in the crossfire of a police shootout against his father, who was unarmed. In another case, an African-American motorist was shot and killed by University of Cincinnati police over a missing front license plate. While high-profile cases of misconduct, including Freddie Gray and Sandra Bland, rightly dominated the news cycle, many more cases of police brutality received little attention. In fact, in 2015, it was revealed not only that the media-propagated “War on Cops” in America was a myth, but that American police kill exponentially more people in weeks than other countries’ police kill in years. On the bright side, many police officers did face charges — and even prosecution — in 2015, including one repeat rapist who recently cried upon being convicted of his crimes. The officers involved in the shooting of the six-year-old boy were also charged with murder.

6. Earth Enters Sixth Mass Extinction: 2015, like many years before, was disastrous for the environment. Researchers from Stanford University, University of California, Berkeley, and Princeton determined Earth is entering its sixth mass extinction, reporting that species are disappearing at a rate 100 times faster than the normal rate between mass extinctions. Further, thanks, in part, to the widespread use of Monsanto’s glyphosate-based Roundup herbicide, populations of bees and Monarch butterflies dwindled — though, happily, the Monarchs appear to have bounced back. Polar bears also met continued endangerment.

The much-anticipated Paris Climate Conference yielded what many environmental activists deemed weak, if not fraudulent, solutions. Meanwhile, man-made environmental catastrophes endangered humans. In Flint, Michigan, lead levels in the water led to increased rates of contamination in children’s blood, prompting the mayor to declare a state of emergency. A massive methane gas leak in the San Fernando Valley, located just north of Los Angeles, has sickened residents and forced countless families to relocate. Authorities have been unable to stop the leak.

Thankfully, some measures to help the environment were taken in 2015, including creative solutions to stop animal poaching, the first flight of a solar-powered plane, the launch of a solar-powered airport in India, and Costa Rica’s successful effort to draw 99% of its energy from renewable sources.

7. Civilian Casualties in Western Wars Continue: Though ISIS and other terrorist groups were rightly condemned for killing civilians in 2015, the West pointed fingers while committing the same crimes. In fact, one U.N. report released in September found U.S. drone strikes have killed more civilians in Yemen than al-Qaeda. Another analysis released this year concluded Obama’s ongoing drone wars have killed more people than were murdered during the Spanish Inquisition. Though the U.S. military’s bombing of a Doctors Without Borders (MSF) hospital received global attention and outrage, many other incidents went underreported. In May, one U.S. airstrike on Syria killed 52 civilians in one fell swoop. Additionally, U.S.-backed coalitions have bombed civilian populations, like in Yemen, where Saudi Arabia killed at least 500 children, not to mention two thousand more adult civilians. In other egregious misdeeds, it was revealed that the U.S. military sanctions pedophilia in Afghanistan.

8. Insurrection at the Pentagon’s Defense Intelligence Agency Over Misleading Reports on ISIS: Over the summer, dissent grew within the ranks of the DIA, the Pentagon’s internal intelligence agency. In September, news broke that 50 intelligence analysts filed a report with the Department of Defense’s Inspector General to expose their superiors’ alleged manipulation of intelligence. The intention of the coverup was reportedly to downplay the threat of ISIS and the U.S.’s losing effort to fight it, all to maintain the Obama administration’s narrative the bombing campaigns have been successful.

Similar mishandlings of foreign affairs plagued 2015. It was revealed that the Pentagon had no idea what it did with $8.5 trillion, lost track of $500 million worth of weapons and equipment, and spent $43 million on a single gas station in Afghanistan. A DIA report released in June intimated the military was aware of the rising threat of ISIS, and not only allowed it, but welcomed it. The program to train moderate rebels in the fight cost half a billion dollars but yielded only four or five fighters. Further, multiple generals spoke out this year about the U.S. military’s role in creating ISIS. Additionally, news broke in 2015 that one ISIS recruiter had previously been trained by infamous Iraq War profiteer, Blackwater.

9. Activists Inch a Small Step Closer to Exposing the Actors Behind 9/11: Though few Americans heard about it, in August, a New York judge allowed a trial to move forward that could expose a potential government cover-up in the notorious terrorist attack. The ruling was tepid, allowing a 60 to 90 day window for the case to be dismissed or proceed. A later ruling hindered the effort, citing a lack of evidence; but activists have not stopped fighting for the release of 28 redacted pages from the 9/11 commission report that allegedly implicate Saudi Arabia (a majority of the hijackers on 9/11 were of Saudi origin).

Whatever the truth may be, 2015 witnessed growing doubts about the Saudi government, which beheaded more people than ISIS this year. It also sentenced a poet to beheading for writing poetry about his experience as a refugee from Palestine, sentenced a young man, Ali al-Nimr, to crucifixion for participating in anti-government protests, attempted to issue 350 lashings to a British man in possession of wine (though the U.K. intervened on his behalf, and that of al-Nimr; neither will be punished), and initiated a punishment of 1,000 lashings for a pro-democracy blogger, Raif Badawi.

10. The FDA Approved OxyContin for Use in Children: Though the approval of the powerful, addictive painkiller for use in 11-year-olds and younger children was unsurprising to those who follow the agency’s track record, the FDA’s justification was shocking. After lawmakers wrote a letter expressing concern to the FDA, the agency’s spokesperson, Eric Pahon, said the news was, in fact, not that serious because it was already standard practice. It’s important to stress that this approval was not intended to expand or otherwise change the pattern of use of extended-release opioids in pediatric patients,” Pahon said. “Doctors were already prescribing it to children, without the safety and efficacy data in hand with regard to the pediatric population.

However disturbing, the FDA’s decision comported with other related events this year: President Obama appointed a pharmaceutical lobbyist Deputy Commissioner of medical and tobacco products, a study found swaths of heroin users graduate from prescription painkillers, and similarly, 75% of high school students who used heroin had previously abused pharmaceuticals.

In other stories regarding the misconduct of agencies tasked with keeping people safe, the FDA continued to allow meat companies to use a pharmaceutical additive banned in 150 countries, while whistleblowers at the USDA revealed several plants were producing pork products filled with fingernails, hair, bile, and feces.

11. The Federal Government Admitted Cannabis May Help Fight Brain Cancer: Though the government has long known about the medical benefits of cannabis — it holds patents on several medicinal qualities — the National Institute on Drug Abuse made waves this year when it published a document acknowledging the healing properties of cannabidiol, a non-psychoactive endocannabinoid. In particular, it noted “[e]vidence from one animal study suggests that extracts from whole-plant marijuana can shrink one of the most serious types of brain tumors.” Though more research is needed, the government’s admission was unexpected, albeit welcomed by many cannabis enthusiasts. Other studies this year suggested cannabis may help heal broken bones and is associated with lower rates of obesity.

Though many Americans still faced criminal prosecution for treating themselves and their children with cannabis, 2015 demonstrated the long-term trend of decriminalization and legalization will not be reversed. Nations around the world, from Ireland to Costa Rica to Canada laid groundwork to legalize marijuana to various degrees, while a majority of Americans now support legalization.

12. Nestle Paid $524 to Plunder the Public’s Water Resources: This year, Anti-Media reported on the insidious relationship between Nestle and the Forest Service in California. The investigation found not only that Nestle was using an expired permit to turn exponential profit on 27 million gallons of water, but that a former Forest Service official went on to consult for the company.

While corporate exploitation ran rampant in 2015, many countries around the world fought back. India sued Nestle after finding one of its products contained lead, while nations around the world banned Monsanto and GE products. Scotland, Denmark, and Bulgaria, among others, all moved to ban GE crops, while multiple lawsuits, highlighted the serious potential health consequences of the widespread use of pesticides (though the EPA disputed that glyphosate, the key ingredient in Monsanto’s Roundup, was an endocrine disrupter in June, in November, news broke that the majority of studies the EPA used to make its decision were funded by industry). Though corporate power remains all but monolithic, 2015 saw humans across the world rise up to resist it. Most recently (and comically), a proposed initiative in California is about to enter the next phase — signature gathering — to place it on the 2016 ballot. If placed on the ballot and passed, it will force California legislators to wear the logos of their top ten donors while they participate in legislative activities. The effort has drawn widespread praise and enthusiasm.

13. Establishment Caught Manipulating News to Fit Narratives: Following the death of Freddie Gray in Baltimore, contentious protests broke out, eventually resulting in limited rioting and looting. However, while the media attempted to paint protesters as aggressive, it failed to report officers’ prolonged prohibition of their physical movement, to say nothing of the riot gear police showed up wearing. After being unable to move, a brick was thrown, but the media failed to report the instigation and discrimination law enforcement imposed that ultimately led the students and protesters to grow unruly.

In other manipulations, it was revealed that one Fox News contributor lied about his experience as a CIA agent; he had never been employed at the agency, and only obtained later national security jobs by lying about his CIA experience. Further, CBS edited out comments from Muslims, who discussed U.S. foreign policy as a driver of Islamic extremism during a televised focus group.

A study by fact checker, Politifact, revealed that all the major outlets surveyed — Fox News, CNN, and MSNBC— consistently report half-truths and lies. It is little wonder, then, that another survey found only 7% of Americans still harbor “a great deal of trust” in the mainstream media.

Still, it wasn’t just the media that lied. On multiple occasions, government employees were caught attempting to distort facts. In March, news emerged that an IP address linked to the NYPD had attempted to edit the Wikipedia page on Eric Garner. Computers inside Britain’s parliament were linked to attempted edits on pages detailing sex scandals, among other transgressions. In a related story, the FBI reported it had foiled yet another terrorist plot, and once again, it was revealed the culprits were provided support from an informant working for the bureau. Further, in August, Wikileaks released cables that showed an American lobbyist for Saudi Arabia organized a $6 million ad campaign against the president’s nuclear deal with Iran, all through a well-funded group called the “American Security Initiative.” The lobbyist, Norm Coleman, is a former Republican senator.

14. TPP: In one of the most widely-contested pieces of legislation in recent memory, the Trans-Pacific Partnership moved forward, often in secret. The TPP has been condemned as a corporate power grab that ensures profit for pharmaceutical companies, among many other loathed industries. From clamping down on internet freedom to effectively sanctioning sex trafficking, TPP signals an ominous fate for the future of freedom.

15. Sharp Uptick in Islamophobia: Amid the carnage of the Paris terror attacks, the recent shooting in San Bernardino, and the surge in Syrian refugees seeking asylum in Western nations, attacks against Muslims skyrocketed in 2015. In the United States, Muslims have been attacked for praying in public, wearing traditional head scarves, and for simply being out in public. Sikhs have been caught in the crossfire for the crime of being brown and wearing cloth on their heads — and thus being confused with Muslims — while at least one Christian has been terrorized as a result of the unmitigated hate currently permeating modern society. Many European nations and U.S. states have rejected the influx of refugees from war-torn Syria.

Amid the increased hate against Muslims, however, has come an outpouring of love and tolerance. Muslim groups across the world have condemned terror attacks, raised money to help the families of victims, and promoted programs to discourage extremism. At the same time, citizens across Europe, Canada, and even parts of the United States have welcomed Syrian refugees with open arms.

2015 was a year of chaos, violence, hate, and an ongoing struggle of freedom versus oppression. In many ways, it was like the years, decades, and even centuries and millenia that came before. But amid the conflict and often discouraging headlines, humanity has continued to persevere, offering resistance to seemingly all-powerful forces and paving the way for, if nothing else, potential peace, freedom, and respect for human life.

The Anti Media (cc)

Trudeau nearly triples Harper’s climate corporate welfare commitment

AlternativeFreePress.com

A couple weeks ago Prime Minister Justin Trudeau made an additional five-year $2.65-billion contribution to help multinational corporations develop countries under the guise of fighting climate change. The $2.65-billion is in addition to the $1.5 billion of corporate welfare contributed by the previous Conservative government.

While Trudeau campaigned on a slogan of “real change”, so far it’s billions in handouts to corporations, as usual.

The climate change fund is a scam, positioned as channeling money “to poor countries to help them adapt to climate change”, it may sound nice, but typically this money is loaned to poor countries with significant strings…

In Confessions of an Economic Hit Man, John Perkins describes how he would convince the government leaders of underdeveloped countries to accept huge loans they could never pay off. He explains how those countries were then pressured politically so much that they were effectively neutralized and their economies crippled. Perkins describes the role of an Economic Hit Man as “a highly paid professionals who cheat countries around the globe out of trillions of dollars. They funnel money from the World Bank, the U.S. Agency for International Development (USAID), and other foreign “aid” organizations into the coffers of huge corporations and the pockets of a few wealthy families who control the planet’s natural resources. Their tools included fraudulent financial reports, rigged elections, payoffs, extortion, sex, and murder. They play a game as old as empire, but one that has taken on new and terrifying dimensions during this time of globalization.”

These international agreements seek to destroy nations sovereignty, they attempt to override laws of local, regional and national governments.

While we do need to take our impact on the planet seriously, we can’t allow ourselves to be manipulated… In 1990 The Club of Rome published The First Global Revolution, where they outlined how they would create or exaggerate environmental threats with the intention of manipulating the public into giving up their sovereignty to one world government:

The common enemy of humanity is man.
In searching for a new enemy to unite us, we came up
with the idea that pollution, the threat of global warming,
water shortages, famine and the like would fit the bill. All these
dangers are caused by human intervention, and it is only through changed attitudes and behavior that they can be overcome. The real enemy then, is humanity itself.

This climate agreement is being presented under the guise of rich countries helping countries in need, but really it is countries already in debt, getting into more debt, in order to get other countries into debt.

The “rich” countries are not really rich when you consider their debt, every dollar of aid given is borrowed with interest owing and compounding. Increasing debt and devaluing the dollar.

The “developing” countries can certainly use help, but the strings attached to this type of help will leave them with more debt than they can handle. This will leave them vulnerable to exploitation and allow corporations to pillage resources.

This article borrowed heavily from our previous article:
Harper commits Canada to contribute corporate welfare

Written by Alternative Free Press
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