Category Archives: Finance

Bad new for whoever wins: Financial crisis ahead


While Democrats are nursing hopes of control of one or both houses of Congress, victory might contain a poison pill that could redound to the Donald Trump and his fellow Republicans benefit two years down the road.

Make no mistakes. The warning signs are already quite clear, as embodied in this series of 10-year graphs we’ve assembled from the marvelous resources of the Federal Reserve Bank of St. Louis:

First up, housing prices are soaring again, already reaching well above the levels of the 2007-9 Great Recession [indicated by the shaded areas of the charts], a crash triggered by shady mortgage lending by the nation’s leading banks [click on the images to enlarge]:

And as housing prices rise, so does mortgage debt, which has also topped pre-Great Recession levels as the Trump Administration slashes protection passed under the Obama administration::

Credit card debt is also soaring:

Yet another form of debt is also rising as states and the federal government slash colleges and university  funding, sending tuition rates through the roof:

The next graphs is particularly ominous.

While Donald Trump claims that under his administration, unemployment levels have hit record lows.

But that’s only because soaring numbers of folks have simply given up and dropped out of the labor force:

For our final graph we look at the growing amount of U.S. debt held overseas, trillions of dollars that could explode in the face of Donald Trump’s self-declared trade wars:

And now, with this graphic introduction we turn to a very important documentary from VPRO Backlight, a creation of producer Marije Meerman for Dutch public television and a warning of dark times ahead:

Lessons from Lehman and the Coming Crash

Program notes:

Have we learned the Lessons from Lehman and could we have predicted the Coming Crash? Ten years ago, the crash on Wall Street took us by surprise when Lehman Brothers’ bank went bankrupt. The financial crisis that followed this crash on Wall Street was like a chain reaction; a pole dancer with her five mortgages turned out to be connected to the huge gap in the Greek national budget. Is it possible to predict the coming crash? What are the lessons learned from the collapse of Lehman Brothers? Can we predict the coming crash of Wall Street by looking back to the last 10 years and take a lesson from Lehman?

Sometimes, it is important to look back in order to predict what we might be heading for. Ten years ago, we were taken by surprise when Lehman Brothers’ investment bank went bankrupt. In the followinf months, banks needed saving. Millions of tax payers money was used. Worldwide, banks, villages, cities, and even countries went bankrupt or were hanging by a thread. Few, if any, bankers were convicted. Crypto currencies like bitcoins thrived on the growing suspicion towards banks and governments. Finally, central banks around the world set up buying asset purchasing programmes in order to create cash out of nothing. A strategy to pump money into the financial system, hoping to keep it afloat. What have we learned from this crash and its consequences? Over a period of ten years, VPRO Backlight reported on the snowballing financial crisis. It turned out that a journalist, a former banker and an economist had predicted the 2008 credit crash and are now warning against a new crash. We pay them another visit to find out what they had seen, where many others were blind.

If we look hard enough, can we see why we are now in the calm before the next crash?

With: Nomi Prins [author and former banker for Goldman Sachs and Lehman Brothers], Ann Petifor [economist] and Isabella Kaminska [journalist for the Financial Times] with cameos by Jim Rogers [super investor], Roger Ver [bitcoin-evangelist], Joris Luyendijk [journalist], and Yanis Varoufakis [former Greek Minister of Finance].

Charts of the day: Billionaire wealth soars again


UBS Group AG, together with Credit Suisse, hold a legal monopoly on all private banking in Switzerland, and is one of the leading global players in private banking for much of the world’s elite.

Every year the bank issues a fascinating document called the UBS PwC Billionaires Report, detailing the growth of the fortunes of the global financial elite.

This year’s report reveals the the rich are getting richer at an accelerating rate, as exemplified in this graphic charting the growing wealth of billionaires, as comparing that acceleration with the MSCI World Index, a measure of global stock market capitalization:

From the report summary:

Billionaire wealth returned to growth in 2016 after falling the year before.

  • Billionaire wealth expanded in 2016. Globally, the total wealth of billionaires rose by 17 percent to USD 6.0 trillion, double the rate of the MSCI World Index.
  • For the first time, Asian billionaires outnumbered their US counterparts. On average, a new billionaire was created in Asia every two days, with the total number of Asian billionaires rising by almost a quarter to 637, compared to 563 in the US and 342 in Europe. The US still retains the greatest concentration of wealth, growing by 15 percent from USD 2.4 trillion to USD 2.8 trillion, driven by technological innovation, financial services and materials.

Josef Stadler, Head Global Ultra High Net Worth, UBS, said: “This year we have seen not only a return to growth for billionaire wealth, but also a significant shift in its geographic dimensions. Dramatic growth in Asian wealth shows it could overtake the US in just four years.”

But what about the rest of us?

While the rich are getting richer, the rest of us, at least in the U.S., are struggling to break even, as illustrated in this graphic from the Pew Research Center:

From the accompanying report:

The disconnect between the job market and workers’ paychecks has fueled much of the recent activism in states and cities around raising minimum wages, and it also has become a factor in at least some of this year’s congressional campaigns.

Average hourly earnings for non-management private-sector workers in July were $22.65, up 3 cents from June and 2.7% above the average wage from a year earlier, according to data from the federal Bureau of Labor Statistics. That’s in line with average wage growth over the past five years: Year-over-year growth has mostly ranged between 2% and 3% since the beginning of 2013. But in the years just before the 2007-08 financial collapse, average hourly earnings often increased by around 4% year-over-year. And during the high-inflation years of the 1970s and early 1980s, average wages commonly jumped 7%, 8% or even 9% year-over-year.

After adjusting for inflation, however, today’s average hourly wage has just about the same purchasing power it did in 1978, following a long slide in the 1980s and early 1990s and bumpy, inconsistent growth since then. In fact, in real terms average hourly earnings peaked more than 45 years ago: The $4.03-an-hour rate recorded in January 1973 had the same purchasing power that $23.68 would today.

Quotes of the day: On FDR’s unfulfilled vision


Franklin Delano Roosevelt, like Donald Trump, was born into wealth and power. While the rump wealth came from , the son of wealthy parents whose fortunes dated back to colonial days [the Roosevelts descended Dutch settlers of New Amsterdam [New York], while his mother’s family, the Delanos, arrived on the Mayflower.

A cousin of President Theodore Roosevelt, FDR, unlike Trump, grew up with a sense of noblesse oblige, the belief that haves bear an obligation toward have-nots.

Educated at all the best schools — Groton, Harvard, and Columbia Law — he abandoned a lucrative law career to enter politics, serving as New York state senator, then as Assistant Secretary f the Navy during World War I, two terms as governor of New York, and finally as the only man elected to serve four terms as President of the United States.

He entered the White House in 1933 as the Great Depression was tearing the nation apart.

Once in office, he introduced seeping reforms, embodied in his New Deal agedna, including the creation of Social Security, the Securities and Exchange Commission, the National Labor Relations Board, asnd the Federal eposit Insurance Corporation.

He lea the nation through the planets second great global conflagration, and played a seminal role in creation of the United Nations.

But his greatest vision would remain unfulfilled,m an agenda he laid out in his 1944 State of the Union Address, given on 11 January 1944.

With the war’s end in sight, he spelled out his agenda in a call for second Bill of Rights, the Economic Bill of Rights:

We have come to a clear realization of the fact that true individual freedom cannot exist without economic security and independence. “Necessitous men are not free men.” People who are hungry and out of a job are the stuff of which dictatorships are made.

In our day these economic truths have become accepted as self-evident. We have accepted, so to speak, a second Bill of Rights under which a new basis of security and prosperity can be established for all regardless of station, race, or creed.

Among these are:

  • The right to a useful and remunerative job in the industries or shops or farms or mines of the Nation;
  • The right to earn enough to provide adequate food and clothing and recreation;
  • The right of every farmer to raise and sell his products at a return which will give him and his family a decent living;
  • The right of every businessman, large and small, to trade in an atmosphere of freedom from unfair competition and domination by monopolies at home or abroad;
  • The right of every family to a decent home;
  • The right to adequate medical care and the opportunity to achieve and enjoy good health;
  • The right to adequate protection from the economic fears of old age, sickness, accident, and unemployment;
  • The right to a good education.

All of these rights spell security. And after this war is won we must be prepared to move forward, in the implementation of these rights, to new goals of human happiness and well-being.

America’s own rightful place in the world depends in large part upon how fully these and similar rights have been carried into practice for our citizens. For unless there is security here at home there cannot be lasting peace in the world.

One of the great American industrialists of our day—a man who has rendered yeoman service to his country in this crisis-recently emphasized the grave dangers of “rightist reaction” in this Nation. All clear-thinking businessmen share his concern. Indeed, if such reaction should develop—if history were to repeat itself and we were to return to the so-called “normalcy” of the 1920’s—then it is certain that even though we shall have conquered our enemies on the battlefields abroad, we shall have yielded to the spirit of Fascism here at home.

I ask the Congress to explore the means for implementing this economic bill of rights- for it is definitely the responsibility of the Congress so to do. Many of these problems are already before committees of the Congress in the form of proposed legislation. I shall from time to time communicate with the Congress with respect to these and further proposals. In the event that no adequate program of progress is evolved, I am certain that the Nation will be conscious of the fact.

After winning  a fourth term in 1944, he returned to his agenda in his final State of the Union address on 6 January 1945:

An enduring peace cannot be achieved without a strong America– strong in the social and economic sense as well as in the military sense.

In the state of the Union message last year I set forth what I considered to be an American economic bill of rights.

I said then, and I say now, that these economic truths represent a second bill of rights under which a new basis of security and prosperity can be established for all–regardless of station, race or creed.

Of these rights the most fundamental, and one on which the fulfillment of the others in large degree depends, is the “right to a useful and remunerative job in the industries or shops or farms or mines of the Nation.” In turn, others of the economic rights of American citizenship, such as the right to a decent home, to a good education, to good medical care, to social security, to reasonable farm income, will, if fulfilled, make major contributions to achieving adequate levels of employment.

The Federal Government must see to it that these rights become realities–with the help of States, municipalities, business, labor, and agriculture.

His death and replacement by the much more conservative Harry S Truman spelled the defeat of his agenda.

Our final quotation shws just how much we have failed. It comes from Lelani Farha, the United Nations Special Rapporteur to the Right to Adequate Housing in a new report focusing on one aspect of FDR’s Economic Bill of Rights, revealing just how much the U.S. has failed in the fulfillment of Roosevelt’s agenda laid out 74 years ago:

Attempting to discourage residents from remaining in informal settlements or encampments by denying access to water, sanitation and health services and other basic necessities, as has been witnessed by the Special Rapporteur in San Francisco and Oakland, California, United States of America, constitutes cruel and inhuman treatment and is a violation of multiple human rights, including the rights to life, housing, health and water and sanitation. Such punitive policies must be prohibited in law and immediately ceased. Following expressions of concern from the Human Rights Committee, the United States federal Government introduced funding incentives for municipalities to rescind by-laws that criminalize homelessness. More robust measures, however, are required.

Mapping America, the very rich, unhappy bully


We love Worldmapper, a website run by some British cartographers who look at the world in very interesting ways.

Whilst exploring their extensive collection of maps, we came across three that reveal some very interesting connections, revealing a deeply troublesome portrait of the country Donald Trump wants to “make great again.”

In fact, the nation is already great, in a deeply and very troubling way.

First, it’s the world leader, as revealed in this graphic, in which the nations of the globe are resized according to they number of their billionaire inhabitants, with America leading the way:

Billionaires 2018

“Part of the beauty of me is that I am very rich.”

— Donald Trump in ABC TV’s ‘Good Morning America’ [2011]

 In 2018, “Forbes found a record 2,208 billionaires, collectively worth $9.1 trillion. Among them are 259 newcomers who made their fortunes in everything from wedding dresses to children’s toys to electric cars.” [Quoted from the Forbes World’s Billionaires 2018 Ranking]

Another graphic shows another field another field of American greatness, with each nation resized according spending on another field dominated by Old Gory:

Military Spending 2017

The biggest spender – by far- are the United States, followed by China, Saudi Arabia, India, France and Russia. The United States spent more than double than China on military expenses. The United Kingdom, Japan, Germany and South Korea complete the top 10 spenders. Six of the top spending countries are also nuclear powers.

Some countries have no military, thus no military spending, like Iceland or Costa Rica. Iceland is a member of NATO nonetheless and contributes to NATO operations with both financial contributions and civil personnel. How much of their GDP NATO members are spending on military has always caused discussions within the alliance.

Finally, another map resizes nations according to population,shaded according to their relative happiness as reported in the New Economics Foundation’s Happy Planet Index [HPI]:

The Happy Planet Index

This map shows the results of the most recent Happy Planet Index 2016 report from the perspective of people. The gridded population cartogram, showing world resized according to the number of people living in each area, combined with the national HPI score.

The indicators that are used for calculating the HPI score cover life-satisfaction, life expectancy, inequality of outcomes and the ecological footprint. As argued in the report, “GDP growth on its own does not mean a better life for everyone, particularly in countries that are already wealthy. It does not reflect inequalities in material conditions between people in a country.” This explains, why consumption patterns are seen as more important for well-being than production. It also acknowledges that inequalities in well-being and life expectancy are important factors in the overall happiness of the population in a country.

When taking these notions into account, the rich industrialised countries score much worse in achieving sustainable well-being for all. Of the 140 countries included in the HPI, Luxembourg is the most extreme example for a wealthy nation scoring very badly: The country does well on life expectancy and well-being, and also has low inequality, but sustains this lifestyle with the largest ecological footprint per capita of any country in the world. It would require more than nine planets to sustain this way of life if every person on Earth would live the same way, showing that the standard of living comes at a high cost to the environment.

Chart of the day: Greek working class miseries


From the Hellenic Statistical Authority, the grim nrews about paychecks yunder the reign of the Austerians:

Kathermini adds some detail:

More than half of private sector employees in Greece are paid less than 800 euros per month, compared with just 11 percent in the public sector, while the real unemployment rate is more than 30 percent, the country’s biggest union claimed in its annual report published on Monday.

The Labor Institute of the General Confederation of Greek Labor (INE-GSEE) noted in its 2016 report on the Greek economy that crisis-induced inequalities among different groups of workers and the decimation of the labor market have had a negative impact on productivity. The increase in labor market flexibility last year translated into 51.6 percent of private sector salary workers receiving less than 800 euros per month at the same time as half of all civil servants were being paid more than 1,000 euros per month.

After processing the salary data in the private sector, INE-GSEE found that net pay was up to 499 euros per months for 15.2 percent of workers, between 500 and 699 euros for 23.6 percent, and 700 and 799 euros per month for 12.8 percent. Just over one in six (17.3 percent) received between 800 and 999 euros. Meanwhile, 38.5 percent of civil servants had net earnings of between 1,000 and 1,299 euros and 15.7 percent collected more than 1,300 euros per month.

The large decline in private sector salaries and the fact that the institute’s economists estimate that the unemployment rate is much higher than the official 23.1 percent are particularly ominous developments which could erode social cohesion and lead large parts of the population into poverty.

The report highlights the increase in the rate of households unable to cover some of their basic needs from 28.2 percent in 2010 to 53.4 percent in 2015. This is due to the major decline in disposable income and the drop in savings. A rise was also noted in the rate of households delaying loan and rent payments (from 10.2 percent in 2010 to 14.3 percent in 2015). Worse, households’ inability (or unwillingness) to pay utility bills soared from 18.8 percent in 2010 to 42 percent five years later.

Life is bitter under the dominion of the Troikarchs

The Wall Street Crash that triggered the Great Recession was followed immediately by the decisions of governments, central banksters, and the money lords of the International Monetary Fund to bail out the banks, and not the lenders.

Those decisions weighed hardest on indebted nations, and proved especially onerous in Southern Europe, where reckless lending by German and other banks had undergirded economic expansion during the boom.

To ensure repayment, the European Central Bank, European Commission, and the International Monetary Fund mandated ongoing wage cuts, pension and healthcare benefit reductions, new taxes, and sellff of large sectors of public infrastructure and resources, most notably in Greece.

The measures have brought no real relief, and Greeks are continuing to pay a high price.

Woman workers hit especially hard

From Kathimerini again:

Women, especially young women, have been hit particularly hard by Greece’s economic crisis, Labor and Social Insurance Minister Effie Achtsioglou told the Parliament in Athens on Wednesday on the occasion of International Women’s Day.

Of all the registered unemployed in Greece, 61 percent are women, Achtsioglou said, noting that although joblessness has dropped 3 percentage points over the past two years of the SYRIZA-Independent Greeks coalition, more needs to be done to curb unemployment generally, and in particular among women.

Cuts in social welfare spending over the years have fallen most heavily on the shoulders of women, Achtsioglou said, adding that the current government remains determined to ease austerity as soon as possible.

And a foreclosure epidemic rocks the nation

Because of lost jobs and smaller paychecks, many Greeks are faced with a hard choice.

From Kathimerini again:

The austerity measures introduced by the government are forcing thousands of taxpayers to hand over inherited property to the state as they are unable to cover the taxation it would entail. The number of state properties grew further last year due to thousands of confiscations that reached a new high.

According to data presented recently by Alpha Astika Akinita, real estate confiscations increased by 73 percent last year from 2015, reaching up to 10,500 properties.

The fate of those properties remains unknown as the state’s auction programs are fairly limited. For instance, one auction program for 24 properties is currently ongoing. The precise number of properties that the state has amassed is unknown, though it is certain they are depreciating by the day, which will make finding buyers more difficult.

Financial hardship has forced many Greeks to concede their real estate assets to the state in order to pay taxes or other obligations. Thousands of taxpayers are unable to pay the inheritance tax, while others who cannot enter the 12-tranche payment program are forced to concede their properties to the state. Worse, the law dictates that any difference between the obligations due and the value of the asset conceded should not be returned to the taxpayer. The government had announced it would change that law, but nothing has happened to date.

Charts of the day: A look at the Greek debt burden


We have two charts from the just-published edition of The Greek Economy, a monthly update from the Hellenic Statistical Authority.

Of the many charts in the document, we picked these two because they depict to loss of national financial sovereignty in a dramatic way.

Our first chart is straightforward, showing the dramatic rise in the ratio of Greek debt to the national GDP:

The second graph charts the radical change in the nature of Greece’s debt, a changed mandated by the financial overlords of the International Monetary Fund, the European Central Bank, and the European Central Bank — the Troika — as a condition of financial aid.

In the chart, debt in the form of securities such as government bonds is represented by the broken blue line, while second broken line represents debt in the form of outright loans. The radical shift was the result of the Troika’s demands on becoming the nation’s financial overlords.

The third and constant line in the graph represents debt in the form of cash and cash deposits:

When lawmakers buy stock, the price rises


It really is the best Congress money can buy, one might reasonably conclude from the findings of a new academic study.

Yep, it seems to be one of those mysterious laws of the universe that when a member of Congress buys stock in a company, the value of that stock soon rises.

Oh, and when a member of Congress buys into a company, the business cuts back on lobbying because, presumably, their interests are financially merged.

More from the University of Arkansas [emphasis added]:

From 2005 to 2010, the average S&P 500 firm had seven members of Congress who owned stock in the firm, and some companies had closer to 100 members owning stock, according to a new study co-authored by a management professor at the University of Arkansas.

The study also found that firms in which a greater percentage of lawmakers invest in a given year performed significantly better the subsequent year.

“Each percentage of congressional membership owning stock was worth about a 1 percent improvement in return on assets,” said Jason Ridge, assistant professor of management in Sam M. Walton College of Business. “We think this suggests that it’s possible that members of Congress use their influence to benefit firms in which they invest.”

Ridge and co-authors Aaron Hill, associate professor at Oklahoma State University, and Amy Ingram, assistant professor at Clemson University, discussed these findings in a Harvard Business Review article [$36 for non-subscribers] published last week. The article was based on “The Signaling Role of Politician Stock Ownership: Effects of Lobbying Intensity,” their study that was published in the Journal of Management.

Ridge, Hill and Ingram confirmed previous research that members of Congress, on both sides of the political aisle, have substantial stock holdings in firms that are affected by their legislative actions. Ridge, Hill and Ingram wanted to understand how this works at the company level. To do this, they compared a sample of S&P 500 performance data from 2005 to 2010 with public disclosure information about Congress members’ stock holdings as compiled by the Center for Responsive Politics.

Firms are possibly using required public disclosure laws as a new way to influence lawmakers, Ridge said. For example, he and his co-authors found that firms, armed with knowledge of which members of Congress hold stock in their companies, scale back the intensity of their lobbying efforts with lawmakers, presumably because the companies assume that owning stock aligns the interests of firms with those of stock-holding lawmakers.

Ridge’s research focuses on executive leadership, compensation and political strategy.

Yet another update on the ongoing Greek Crisis


Greece, the European nation hardest hit by the Great Recession, continues to struggle, weighed down by massive loan debt, accumulated during the pre-crash boom and amplified by bailouts in the years since.

Much of the Greek debt is held by vulture funds, specializing in swooping in toe feed off the cheaply priced debt of stricken economies, then demand payment in full as the national economy struggles to recover.

Much of the Greek debt is held any Germans backs which financed Greek military purchases from German munitions companies — many of them induced by bribes from the German corporateers.

The Troika — the coalition of the European Central Bank, the European Commission, and the International Monetary Fund have insisted on full repayment, with the price of rebellion being the education of Greece from the common currency, a move that would force Greece to drop the Euro and go back to the drachma.

And while Germany booms, Greeks are subjected to pay and pension cuts healthcare reductions, and sell off of national power and transportation grids, as well as the sale of ports and islands.

The resulting deprivation has distorted the Greek economy, evident in these two charts from the Hellenic Statistical Authority.

First, a chart of the ten top-selling industrial products manufactured in Greece [click on the images to enlarge]:

blog-greeceNext, the top-sellers for the European Union as a whole:

blog-greece-2But more misery lies ahead, , ,

We begin with this from China Daily:

Greece will likely need a fourth bailout program, according to Cypriot economist and 2010 Nobel laureate Christoforos Pissarides.

“I am afraid there will be a fourth memorandum,” 69-year-old Pissarides said in an interview with local SKAI television’s program “Weekend with Action”.

“The crisis and austerity will end when Greece will be able to return to international financial markets,” Pissarides said, adding that in his view it was rather unlikely to happen before the end of the current bailout in August 2018.

The expert called for more reforms with no delays to attract investment in order to exit the seven-year debt crisis.

And Germany won’t stand for debt relief

There’s no relief in sight for the Greeks, as Germany, the dominant economic power in the European Union and chief player in the central bank, insists that all loans be paid in full.

From Kathimerini:

Greece must not be granted a “bail-in” that would involve creditors taking a loss on their loans, Germany’s deputy finance minister said in an interview broadcast on Sunday, reiterating the German government’s opposition to debt relief for Athens.

“There must not be a bail-in,” Jens Spahn told German broadcaster Deutschlandfunk, according to a written transcript of the interview.

“We think it is very, very likely that we will come to an agreement with the International Monetary Fund that does not require a haircut,” he said, referring to losses that Greece’s creditors would have to take if debt was written off.

The IMF has called for Greece to be granted substantial debt relief, but this is opposed by Germany, which makes the largest contribution to the budget of the European Stability Mechanism (ESM), the eurozone’s bailout fund.

Greece and its creditors agreed on February 20 to further reforms by Athens to ease a logjam in talks with creditors that has held up additional funding for the troubled eurozone country.

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Border wall moves ahead; Mexican resistance stirs


Yep, the border wall is moving ahead.

From the Chicago Tribune:

U.S. Customs and Border Protection said Friday that it plans to start awarding contracts by mid-April for President Donald Trump’s proposed border wall with Mexico, signaling that he is aggressively pursuing plans to erect “a great wall” along the 2,000-mile border.

The agency said it will request bids on or around March 6 and that companies would have to submit “concept papers” to design and build prototypes by March 10, according to FedBizOpps.gov, a website for federal contractors. The field of candidates will be narrowed by March 20, and finalists must submit offers with their proposed costs by March 24.

The president told the Conservative Political Action Conference on Friday that construction will start “very soon” and is “way, way, way ahead of schedule.”

The agency’s notice gave no details on where the wall would be built first and how many miles would be covered initially. Homeland Security Secretary John Kelly has sought employees’ opinions during border tours of California, Arizona and Texas.

Announcement comes a day after cross-border meeting

The wall wasn’t even mentioned when two cabinet members traveled south of the border the day before the announcement.

From NBC News:

There were promises of cooperation, of closer economic ties, and frequent odes to the enduring partnership between the U.S. and its southern neighbor. But there were no public mentions of that massive border wall or President Donald Trump’s plan to deport non-Mexicans to Mexico as top U.S. officials visited the Mexican capital.

Instead, U.S. Homeland Security Secretary John Kelly and Secretary of State Rex Tillerson played it safe, acknowledging generally that the U.S. and Mexico are in a period of disagreement without putting any specific dispute under the microscope. It fell to their hosts, and especially Mexican Foreign Secretary Luis Videgaray, to thrust those issues into the spotlight.

“It is an evident fact that Mexicans feel concern and irritation over what are perceived as policies that may hurt Mexicans and the national interest of Mexicans here and abroad,” Videgaray said Thursday after meeting with Kelly and Tillerson.

The Americans focused instead on putting to rest some of the fears reverberating across Latin America – such as the notion that the U.S. military might be enlisted to deport immigrants in the U.S. illegally en masse. Not so, said Kelly. He said there would be “no mass deportations” and no U.S. military role.

Sure, Mexico can trust anything that comes out of an administration headed by a man who can’t even keep his own lies straight, then flies into a rage any time anyone dares point that out.

Trump may do the impossible for Peña

Mexican President Enrique Peña Nieto has been polling at all-time lows, earning an abysmal 12 percent approval rate in one recent survey., making Trump’s current 42 percent approval rating look like a rave review.

But Trump may prove a boost for the beleaguered Mexican President is Agent Orange continues with his self-serving racist rants, especially now that Peña’s administration is showing a little resistance.

From teleSUR English:

The U.S. wants to pressure Mexico into keeping migrants and refugees as they await trial, forcing Mexico to deport them instead. Mexico isn’t falling for it.

Mexico will reject the remaining funds of the Merida Plan if they’re used by the U.S. to coerce the country on immigration policy, said Interior Minister Miguel Angel Osorio Chong on Friday.

The US$2.6 billion security assistance package on the drug war has been almost been entirely distributed since 2008, mostly on military equipment like helicopters and training for its security forces.

The plan has been widely criticized for worsening, rather than improving, violence and disappearances in the country and being partly responsible for the disappearance of the 43 student-teachers in Ayotzinapa. It already contains a proviso to withhold funds if Mexico doesn’t improve its rule of law or human rights abuses, though the U.S. has never enacted this demand.

Besides now taking into account U.S. President Donald Trump’s plan to build a border wall, the aid may be dependent on Mexico hosting undocumented immigrants from third countries as they are awaiting processing of their deportation trials in the U.S.

“They can’t leave them here on the border because we have to reject them. There is no chance they would be received by Mexico,” said Osorio Chong on Friday, speaking with Radio Formula after a cool reception of U.S. Secretary of State Rex Tillerson and Homeland Security Secretary John Kelly, who visited on Thursday.

Mexico already deports hundreds of thousands of Central Americans apprehended at its southern border, but cities like Mexico City are among the largest receptors of refugees deported from the U.S.

Mexico hints at a trade war

A not-so-veiled threat was issued Thursday at the same time Trump administration officials were meeting with their Mexican counterparts.

From Reuters:

Mexico’s economy minister said on Thursday that applying tariffs on U.S. goods is “plan B” for Mexico in trade talks with the United States if negotiations aimed at achieving a new mutually beneficial agreement fail.

Economy Minister Ildefonso Guajardo told local broadcaster Televisa that he expected North American Free Trade Agreement negotiations with both the United States and Canada to begin this summer and conclude by the end of this year.

And promptly takes the first step

Guajardo’s warming was accompanied by action as well,

From teleSUR English:

Amid trade tensions with the United States, Mexico plans to send a delegation next month to visit Brazilian corn, beef, chicken and soy producers as an alterative to U.S. suppliers, its representative in Brazil said on Friday.

Mexican chargé d’affaires Eleazar Velasco said Brazil is uniquely positioned to expand agricultural commodity sales to Mexico if trade with the United States is disrupted because it is closer than other potential suppliers like Australia.

“The United States unilaterally wants to change the established rules of the game,” Velasco told Reuters. “This will evidently lead us to rebalance our trade relations.”

Mexican Agriculture Secretary Jose Calzada was due to visit Brazil last week but had to postpone his trip until March due to scheduling issues, Velasco said.

Calzada will bring Mexican food industry executives to do deals with Brazilian exporters, the diplomat said. The trip is part of a drive to lessen dependence on U.S. exports as President Donald Trump threatens to upend long-standing free trade between the two countries.

And Mexico acts on the financial front as well

The country has been engaged in a massive buttressing of its currency.

From CNNMoney:

Mexico’s currency, the peso, is one of the best performers in the world in February, up over 5%.

Before the U.S. election, the country’s central bank started implementing what its governor, Agustin Carstens, called a “contingency plan.” Carstens says Trump’s potential policies would hit Mexico’s economy like a “hurricane.”

For ordinary Mexicans, the peso’s momentum doesn’t mean much. Gas prices rose as much as 20% in January while economic growth and wages continue to be sluggish. Life is getting more expensive.

Still, it’s a swift turnaround for a country and currency facing an uncertain future with the U.S.

Since November, Mexico’s central bank has raised interest rates three times and sold U.S. dollars to international investors. Among other efforts, it’s all meant to buoy the peso that’s been weighed down by Trump’s threats.

Things are starting to get interesting. . .

Greek misery continues, no crash recovery yet


We begin with a dramatic graphic from Kathimerini, dramatic evidence that despite three rounds of bailout loans an ever-harsher austerity measures, the European economy hardest hit by the Great Recession is showing no signs of recovery as yet still more austerity is demanded:

blog-greece

The Greeks were left holding the string when the bubble popped, unable to pay loans to foreign banksters a lot of them in Germany. And the lenders wanted their money, even though the economy had crashed, unemployment skyrocketed, and the Greek industrial machine had ground to a halt.

To enable Greece pay the loans back, a Troika formed of the European Central Bank, th European Commission, and the International Monetary Fund imposed harsh austerity measures perfectly designed to ensure that the Greek people were reduced to serfs, sacrificing layoffs, pay, pension, and healthcare cuts for those lucky enough to keep their jobs.

Then there was the massive selloff of national assets, ranging from transit and power grids to ports and islands.

And still the troika wants more in exchange for another round of bailout loans.

From the London Telegraph:

Greece will need a fourth bailout as its debts remain utterly unsustainable despite years of austerity and attempted reforms, according to George Papaconstantinou, a former Greek finance minister.

A “radical liberalisation of the economy” is also necessary as the country needs to attract foreign investment because Greece lacks the domestic resources needed to grow its industries, he told an audience at the London School of Economics.

“Pretty much everyone agrees that Greek debt is not sustainable,” he said. “Is there a prospect of a fourth bailout? Yes. Even in the best case… I doubt that Greece will be able to stand on its own feet.”

Mr Papaconstantinou, who was Greece’s finance minister from 2009 to 2011, said that these measures have to be accompanied by serious economic reforms.

“Radical liberalization of the economy”?

Translate that as “more misery for the average Greek.”

The IMF lays down the law

Before taking the helm at the IMF, Lagarde served as Finance Minister for French President Nicolas Sarkozy.

In December a French court found her guilty of criminal negligence in her old job for arranging a payout of more than $400 million for businessman Bernard Tapie’s share of Addidas under questionable circumstances — though the court declined to impose either a jail sentence or a fine, rendering the guilt verdict moot.

The affair didn’t seem to bother either the French government or the IMF, so Lagarde kept her job.

More on her stance on the latest Greek bailout round from Bloomberg:

IMF Managing Director Christine Lagarde signaled that Greek debt restructuring can wait and the country should focus on overhauling its economy for the duration of its latest bailout, which expires in 2018.

Speaking in a German television interview after meeting Chancellor Angela Merkel in Berlin, Lagarde said “the volume of restructuring will clearly depend on how much reform, how much progress, how strong the Greek economy is” when the aid program ends.

What will probably be needed is a “significant” extension of maturities on Greek bailout loans and a “significant interest rate capping,” Lagarde told ARD television on Wednesday. “That will have to be discussed in greater detail later on” and “implementation of the debt restructuring will have to take place at the end of the program.”

The Washington-based fund is demanding additional debt relief measures as a condition for participating in the Greek bailout. Its participation, in turn, is a condition set by Germany when it agreed to help underwrite the latest aid package in 2015.

So who benefits?

Therein lies the rub.

Because much of the money won’t go to the banks who lent it to Greece.

Any of those lenders sold off their delinquent funds at a deep discount to that unique breed of banksters called “vulture funds,” speculators who buy up sovereign debt, then set about collecting it using all the ruthless ploys they can martial.

From the Committee for the Abolition of Illegitimate Debt:

The experience of the Greek debt restructuring of 2012 serves as a good example to show how vulture funds operate and the costs they can impose in a country and its population. The Greek case is quite interesting as not only involved the first major debt restructuring in Europe since 1953 but also it was the largest operation of its kind. The remarkable aspect of this episode is that the country decided to continue paying holdout creditors, and specifically vulture funds, in full. This was the case even though the process was organized with the support of the official creditors of the country. In this regard, it created yet another damaging precedent regarding the viability of the profits by litigation strategy followed by vulture funds.

>snip<

Just a month after the debt restructuring was completed, the government made an initial payment of 436 million Euros to a group of holdout investors led by Dart Management. This hedge fund, which had a long story of suing governments to get paid in full going back to the Brady plan in Latin America in the late 1980s, made a massive profit as it had bought the bonds on prices estimated between 60 to 70 cents on the Euro. By making that initial payment, the Greek government set a negative precedent as the rest of the holdouts were now able to use that decision to claim for equal treatment under a foreign court. The payments to holdouts continued uninterrupted afterwards parallel to the implementation of harsh austerity measures. For example, during 2013 the country paid a total of 1.7 billion Euros to holdout creditors. To date, most of the holdout claims have been paid in full by Greece. It is estimated that private investors currently have a total of 36 billion euros in government bonds that were either issued under the debt exchange of 2012 or in the debt issuance that took place in 2014.

As the Greek population continues to struggle under the imposition of harsh austerity measures and the debt burden of the country remains “highly unsustainable”, as the IMF characterizes it, it is evident that the decision to continue paying the holdouts was a mistake. It represented nothing short of rewarding dangerous speculators while transferring the costs of their actions on to the Greek people. Even more troublesome is the fact that the relationship between Greece and the vulture has not ended yet. In the aftermath of the debt restructuring of 2012, it is estimated that hedge funds have bought nearly 15 billion Euros in government bonds. As a new debt restructuring, or even unilateral default, is simply a matter of time is worth nothing that the country can still set a precedent against the actions of vulture funds. The country could begin by enacting a law, similar to that adopted in Belgium in 2015, to limit the actions of vulture funds. Furthermore, given the dire social situation in the country, it should declare the non-application of the 3rd memorandum and non-payment of all illegal, odious, illegitimate and unsustainable debts. After all it is never too late to state that sovereignty and the respect of human rights will always precede debt.

So the troika is really all about making sure predatory speculators collect their pound of flesh.

Greek crisis deepens; bad loan rate spikes


Greece, the nation hardest hit by the Great Recession, continues to stagger under the burdens imposed by the European Central Bank, the European Commission, and the International Monetary Fund.

The Troika, operating as the European Stability Mechanism, has imposed onerous pay and pension cut, mandated layoffs, forced the sale of billions in national assets [including power grids, healthcare institutions, toll roads, railways, ports, and even islands], while Greeks continue to suffer from massive unemployment.

And now the crisis is getting worse.

From Kathimerini:

Nonperforming loans last month posted a major spike of almost 1 billion euros, reversing the downward course set in the last few months of 2016. This has generated major concerns among local lenders regarding the achievement of targets for reducing bad loans, as agreed with the Single Supervisory Mechanism (SSM) of the European Central Bank for the first quarter of this year.

Bank sources say that after several months of stabilization and of a negative growth rate in new nonperforming exposure, the picture deteriorated rapidly in January, as new bad loans estimated at 800 million euros in total were created.

This increase in a period of just one month is considered particularly high, and is a trend that appears to be continuing this month as well. Bank officials attribute the phenomenon to uncertainty from the government’s inability to complete the second bailout review, fears for a rekindling of the crisis and mainly the expectations of borrowers for extrajudicial settlements of bad loans.

Senior bank officials note that a large number of borrowers will not cooperate with their lenders in reaching an agreement for the restructuring of their debts, in the hope that the introduction by the government of the extrajudicial compromise could lead to better terms and possibly even to a debt haircut.

Headlines of the day: More TrumpLandia™ Turmoil


We begin with the New York Times:

Republican Congress, Stuck at Starting Line, Jogs in Place

  • Republican lawmakers and President Trump have yet to deliver on any of the sweeping legislation they promised.
  • Disagreements, a lack of clarity from the White House and a slow confirmation process have stymied their plans.

Two from the Washington Post, starting with this:

Flynn saga shifts balance of power between president, Congress

  • In the wake of Michael Flynn’s resignation as national security adviser, Republican senators are vowing more aggressive oversight of the new administration, and Democrats are seizing an opportunity to ask pointed questions about President Trump’s ties to Russia.

And then this:

Trump looking at billionaire to lead review of U.S. spy agencies

  • Stephen A. Feinberg has been a major donor to Republican candidates and has served on Trump’s economic advisory council.

Next up, this from the Guardian:

Deutsche Bank examined Donald Trump’s account for Russia links

  • Bank looked for evidence of whether loans to president were underpinned by guarantees from Moscow, Guardian learns

Finally this inevitable TrumpTweetstorm™ subject-to-be from BBC News:

Israel-Palestinian conflict: UN warns Trump over two-state reversal

  • The UN chief has warned Donald Trump against abandoning the idea of a two-state solution to the Israeli-Palestinian conflict, saying there is “no alternative”.
  • It comes after Mr Trump went against decades of US policy, saying he would back whatever formula led to peace.
  • Palestinians reacted with alarm to the possibility that the US could drop support for Palestinian statehood.

Panama Papers law firm founders arrested


Once in a while a single event provides a juncture between two ongoing stories we’ve been following.

First up, the legislative coup that ousted Brazilian President Dilma Rousseff and the subsequent criminal indictments filed against the coup participants as the result of a massive bribery investigation.

The second story is the Panama Papers leaks, the documents proving the existence of and participants in a vast network of “black flag” operation concealing a great deal of the planet’s wealth.

From teleSUR English:

The two founders of Panamanian law firm Mossack Fonseca were arrested on Saturday, the attorney general’s office said, after both were indicted on charges of money-laundering in a case allegedly tied to a wide-ranging corruption scandal in Brazil.

Firm founders Jurgen Mossack and Ramon Fonseca were detained because of the risk they might try to flee the country.

Attorney General Kenia Porcell told reporters on Saturday that the information collected so far “allegedly identifies the Panamanian firm as a criminal organization that is dedicated to hiding assets or money from suspicious origins.”

Mossack Fonseca is also at the center of a separate case known as the Panama Papers, which involved millions of documents stolen from the firm and leaked to the media in April 2016.

The fallout from the leaks provoked a global scandal after numerous documents detailed how the rich and powerful used offshore corporations to hide money and potentially evade taxes.

Fonseca, a former presidential adviser in Panama, has previously denied that the firm had any connection to Brazilian engineering company Odebrecht, which has admitted to bribing officials in Panama and other countries to obtain government contracts in the region between 2010 and 2014.

Austerians threaten more cutbacks in Greece


This is one of those good news/bad news stories.

Greece was the European nation hardest hit by the greed of Wall Street banksters who brought the world to its knees eight years ago, triggering a Great Recession which still hasn’t ended and threatens to worsen yet again, as the United Nations noted in a report last month:

Although a modest global recovery is projected for 2017-18, the world economy has not yet emerged from the period of slow growth, characterised by weak investment, dwindling trade and flagging productivity growth, according to the United Nations World Economic Situation and Prospects (WESP) 2017 report launched today.

The report states that the world economy expanded by just 2.2 per cent in 2016, the slowest rate of growth since the Great Recession of 2009. World gross product is projected to grow by 2.7 per cent in 2017 and 2.9 per cent in 2018, a slight downward revision from the forecasts made last May.

For Greece, that means an unparalleled crisis may be imminent as the nation and its citens are still reeling from the current crisis the onerous costs of the current bailout.

The bailout package from the troika — the International Monetary Fund, the European Central Bank, and the European Commission — has eased the impacts on Greece, though at a huge price. The nation’s ports, transportation infrastructure, and energy grid have already been sold off to multinationals, pay and pensions have been slashed repeatedly, healthcare benefits cut, and much, much more.

And employment, though improved, still reaches staggering levels, especially for young workers, as indicated in the latest numbers from the Hellenic Statistical Authority:

blog-greece

The current bailout isn’t done, and the troika is demanding still more cuts, though a deal may be near.

From Kathimerini:

Representatives of the country’s international creditors are expected to return to Athens this week for a resumption of bailout talks despite continuing tensions between Greece and its lenders, highlighted by Prime Minister Alexis Tsipras over the weekend.

In a speech before SYRIZA’s central committee on Saturday, Tsipras lashed out at Greece’s creditors, calling on them to revise their “irrational demands” of Greece.

“We will not agree to demands that are not backed up by logic and numbers,” he said.

He called on the International Monetary Fund in particular to revise its recent assessments of Greece’s economic prospects so that stalled bailout negotiations can resume at the technical level.

Tsipras also called on German Chancellor Angela Merkel to rein in Finance Minister Wolfgang Schaeuble and his “constant hostility” towards Greeks, accusing him of trying to create a “two-speed eurozone” and comparing him to a “pyromaniac… playing with matches in a warehouse full of explosives.”

More from Deutsche Welle [emphasis added]:

The new agreement would release a new tranche from its 86 billion euro ($91.5 billion) bailout fund. That, in turn, would enable Greece to meet a major debt repayment of 7.2 billion euros that is due this summer.

EU and IMF lenders want Greece to make 1.8 billion euros — or 1 percent of gross domestic product — worth of new cuts by 2018 and another 1.8 billion euros after that on measures focused on broadening the tax base and on pension reductions.

New cuts — especially to pensions, which have already been reduced 11 times since the start of the crisis in 2010 — are difficult to sell to a public worn down by years of austerity.

>snip<

Breaking the deadlock in the coming weeks is considered paramount, with elections in the Netherlands on March 15 and in France in the spring threatening to make a resolution even more difficult.

But [Eurogroup chief Jeroen] Dijsselbloem warned that the next meeting of eurozone ministers on February 20, which is seen as an unofficial deadline ahead of the votes, would still be too early for a breakthrough.

The billionaire who gave Trump millions, Bannon


And so much more.

Two journalists look at Robert Mercer, a late-arriving big money donor to the Trump campaign, a billionaire who had bankrolled Ted “The Grand Inquisitor” Cruz before the convention, then came to Trump’s rescue just as things were falling apart, contributing both millions in cash and a cast of personnel, including Steve Bannon and Kellyanne Conway.

Mercer, who made his pile running a hedge fund, holds nightmarish beliefs and considerable cunning. And he’s succeeded in creating a powerful, covert institution designed to create a dystopian world, run by the best crew money can by.

In this report from The Real News Network, reporters Thomas Hedges of the Center for Study of Responsive Law, where his beat is the role of money in politics, and Carrie Levine, who covers the same beat for the Center for Public Integrity, take a close look at Mercer and his agenda:

The Bizarre Far-Right Billionaire Behind Bannon and Trump’s Presidency


From the transcript:

THOMAS HEDGES: The fuel behind Mercer’s influence are the absurd sums of money he approves at the investment company he runs, Renaissance Technologies, based on Long Island. Its famed Medallion Fund is one of the most successful hedge funds in investing history. Averaging 72% returns before fees, over more than 20 years. A statistic that baffles analysts, and outranks the profitability of other competing funds, like the ones George Soros and Warren Buffet run.

In 2015, Mercer had single-handedly catapulted Cruz to the front of the Republican field. Throwing more than $13 million into a super PAC he created for the now failed candidate. But with the Trump campaign faltering, and struggling for support, there’s a second chance for the Mercers to make a big bet.

The Trump campaign is well aware of this, in fact, sources within Mercer’s super PAC would later tell Bloomberg News that shortly after Cruz drops out of the race, Ivanka Trump and her wealthy developer husband Jared Kushner, approach the Mercers, asking if they’d be willing to shift their support behind Trump. The answer is an eventual, but resounding yes.

In the months leading up to Trump’s presidential win, the Mercers would prove a formidable force. Beginning after the disastrous Republican Convention in July, they would furnish the Trump campaign with millions of dollars, and new leadership, but they would also furnish it with something more — a vast network of non-profits, strategists, media companies, research institutions and super PACs that they themselves funded and largely controlled.

CARRIE LEVINE: I think what you’ve seen is a lot of these organizations in this network come out to play a role in the 2016 elections.

HEDGES: With the Mercer family in the picture, the post-convention shake-up starts to make sense. Take Steve Bannon. He and Robert Mercer have been close for years, and Mercer is a top investor at Breitbart News, where Bannon was Chief Editor.

Kellyanne Conway also comes out of this network. Before becoming co-manager of Trump’s campaign, she headed up operations for Robert Mercer’s super PAC when it was still supporting Ted Cruz. And as for Deputy Campaign Manager, David Bossie, he was president of Citizens United, an organization Mercer has heavily funded since at least 2010.

Cambridge Analytica, the mysterious data-mining firm that received grudging praise after predicting the race’s outcome more accurately than any other polling company, is also heavily funded by Robert Mercer, and was employed by the Cruz campaign before Mercer switched over to Trump. In fact, the Mercers’ political infrastructure is so entrenched, that Rebecca Mercer herself sits on the 16-person executive committee of Trump’s transition team.

Mercer’s foray into the White House may seem to have been born partly out of luck, especially with Trump, instead of Cruz, as a stalking horse. But his rise to power was systematic, and it was years in the making.

The web of connections Mercer’s built over the last decade is vast and complex. It includes efforts to dismantle tax law, and weaken the IRS.

It’s about funding quack scientists and conspiracy theorists, who blame the government for, among other things, playing a role in the San Bernardino Massacre. Or of colluding with the United Nations, and using climate change as an excuse to implement environmental laws meant to depopulate America’s Midwest. It’s about pouring money into the neo-conservative John Bolton super PAC, which props up candidates who ascribe to Bolton’s hawkish foreign policy.

But one of Mercer’s earliest activist ventures was financing a slew of fringe documentary projects that have helped raise the profiles of people like Sarah Palin, Michelle Bachman and most notably, the director of those films, Steve Bannon.

Bannon, who was previously a naval officer and Goldman Sachs investment banker, made his first documentary in 2004 about Ronald Reagan. It retold his biography, using washed out black and white archival footage of the Hollywood actor. Painting him as a brave protector of Western democracy from the threat of Communism.

Citizens United lawyer seeks state law overthrow


Since the infamous Citizens United decision, corporations have been handed a blank check to buy federal elections, and now the attorney who led that legal battle is taking aim at state campaign laws.

If he  wins, laws blocking corporate  contributions in nearly half the nation’s states could be overturned.

And so it becomes clear, in part at least, why the GOP block Obama’s nomination of Merrick Garland to the Supreme Court.

They want it all.

From the Associated Press:

A case involving political “dark money” and the founder of an organization tied to President Donald Trump’s accusations of voter fraud could lead to a crush of anonymous cash infiltrating elections in the country’s second-largest state, a Democratic lawyer warned the Texas Supreme Court on Tuesday.

The nine Republican justices on Texas’ highest civil court heard arguments involving the legality of the state’s ban on corporate contributions, disclosure requirements for political action committees and the question of when a politically active nonprofit should have to disclose its donors like a traditional PAC. Some believe that the case ultimately could wind up before the U.S. Supreme Court and potentially reshape campaign finance regulations nationwide.

Houston tea party group King Street Patriots, started by Catherine Engelbrecht, has been the focus of a longstanding lawsuit by the Texas Democratic Party accusing the organization of violating state campaign finance laws by engaging in political behavior when it dispatched poll watchers on behalf of the Texas Republican Party during the 2010 election.

But the nonprofit, represented by Indiana attorney James Bopp Jr. — architect of the landmark Citizens United case that opened the door for corporations and unions to make unlimited independent expenditures in U.S. elections — has fired back with a counterclaim challenging numerous provisions of Texas campaign finance law.

Twenty-two states currently prohibit corporations from contributing money to campaigns and candidates, according to the National Conference of State Legislatures. Texas has no limit on what individuals or political committees can donate to candidates. Corporations statewide, however, are barred from giving money directly to a campaign, though they are allowed to contribute to a political committee set up for a ballot measure or to a state-level Super PAC, which is only allowed to make expenditures independent of candidates.

Advertisers stage a massive Breitbart exodus


It may be the preferred brand in the Trump White house, what with all those appointments, but other folks are shunning the website, including some of its biggest advertisers.

From the Independent:

Hundreds of advertisers are pulling away from ultra-conservative news website Breitbart, and campaigners are confident the backlash is snowballing.

According to a database from grassroots campaign group Sleeping Giants, a total of 818 companies have pledged to remove Breitbart from their media plan so far.

In the last few months, giant corporations such as Kelloggs, BMW, Visa, T-Mobile, Nordstrom and Lufthansa have all severed ties with the company.

And in the same week that President Donald Trump has threatened to pull funding from the University of California, Berkeley after it cancelled a speech by Breitbart editor Milo Yiannopoulos, two universities in Canada have also signed up to the advertising ban.

Emma Pullman, lead campaign strategist at separate campaign group SumOfUs, told The Independent most of the companies were pre-existing advertisers while some have put the website on their black list, as Breitbart has been accused of writing misogynist and racist articles.

Headlines of the day: It really is a family business


Two of those tell-it-all headlines from the London Daily Mail, starting with this:

Trump hosts top CEOs with Ivanka and tells them he will cut taxes and bank regulations

  • President Donald Trump met with his executive council at the White House
  • He vowed to slash taxes and the Dodd-Frank banking regulations enacted after the financial crisis 
  • Said there is ‘nobody better’ than JP Morgan CEO Jamie Dimon to talk to about banking regulations, promising cut back
  • Says he tried to get additional people who ran ‘massive’ businesses onto the council, only to be rebuffed by billionaire Blackstone exec Stephen Schwarzman
  • ‘He’s a corporate raider – these people don’t want to be sitting with corporate raiders!’
  • Hails panel member BlackRock investment company CEO Larry Fink

And then this indication of problems the the famly brand::

First daughter fire sale: Ivanka Trump merchandise on clearance markdowns at Nordstrom one day after store announced they are dropping the brand as downcast first daughter surfaces at CEO summit

  • On Friday, just a handful of severely marked down shoes are all that remain of Ivanka Trump’s clothing line on the Nordstrom and Nordstrom Rack websites 
  • The department store announced on Thursday that it was dropping the brand due to poor sales
  • It’s believed that the poor sales were caused by a boycott of Trump brands by those unhappy with the election’s outcome 
  • Following the Nordstrom news, Ivanka’s line has completely disappeared from the Neiman Marcus website  
  • As the final items in her line were put on clearance, the first daughter looked downcast as she attended a meeting with business leaders at the White House

Austerity forces Greeks to sell assets abroad


We have consistently held that the whole purpose of austerity regimes implemented and enforced by the world’s institutional lenders has but one goal: The concentrate wealth at the top.

The latest example comes from Greece, where the Troika of the International Monetary Fund, European Central Bank, and the European Commission have forced the sales of nationally owned transportation systems, healthcare programs, the electric power grid, ports, islands, and other assets.

The austerity regime also forces Greeks to pay more in taxes and fees, while mandating public and private sector pay, pension, and benefit cuts.

So it should come as now surprise that Greeks are being forced to sell their homes, businesses, and other assets to foreing buyers,

From Kathimerini:

The mergers and acquisitions (M&A) chart of Greece in 2016 that PricewaterhouseCoopers presented on Wednesday showed that foreigners have been acquiring assets in Greece while Greeks have generally been selling.

In total last year assets with a combined value of 4.4 billion euros changed hands in 38 transactions. The value level is about two-and-a-half times that recorded in 2015. Sixty-two percent of that amount came from National Bank’s sale of Finansbank in Turkey.

Last year’s M&A crop was dominated by what PwC dubbed “divestment of the systemic banks from their non-core assets.” This divestment fetched about 3.3 billion euros, or 75 percent of all transactions’ value. When the 500 million euros from privatizations (Piraeus Port Authority, Astir Palace etc) are added, then 2016 can be seen as the year of almost compulsory divestment. Without that, the M&A transaction volume would have come to just 600 million euros.

In recent years the M&A cycle has been “incoming,” with PwC analysts noting that foreign buyers are trying to take advantage of the drop in the value of Greek assets, as three in five transactions last year concerned acquisitions of Greek assets by foreign investors.

Quote of the day: The rush to kiss Trump’s ass


The day Littlefingers became president of the united States also brought down the curtain on the 2017 World Economic Forum Annual Meeting, the gathering of 2,500 leading corporate moguls, banksters, elected officials, economists, celebrities [George Clooney attended this year], and media figures in the elite Swiss resort town of Davos.

One of those in attendance was former World Bank Chief Economist, U.S. Treasury Secretary, and Harvard University President Lawrence Summers, a man who played a central role in the deregulation of American banking and the unleashing of the derivatives market.

In of the other words, he bears much of the responsibility for bringing on the Crash of 2008 and the ongoing global Great Recession.

But even he abhors the rush to embrace President Pussygrabber by his fellow Davos elites, as he writes in Financial Times [subscription only]:

I am disturbed by (i) the spectacle of financiers who three months ago were telling anyone who would listen that they would never do business with a Trump company rushing to praise the new administration; (ii) the unwillingness of business leaders who rightly take pride in their corporate efforts to promote women and minorities to say anything about presidentially sanctioned intolerance; (iii) the failure of the leaders of global companies to say a critical word about US efforts to encourage the breakup of European unity and more generally to step away from underwriting an open global system; (iv) the reluctance of business leaders who have a huge stake in the current global order to criticise provocative rhetoric with regard to China, Mexico or the Middle East; (v) the willingness of too many to praise Trump nominees who advocate blatant protection merely because they have a business background.

>snip<

My objection is not to disagreements over economic policy. It is to enabling if not encouraging immoral and reckless policies in other spheres that ultimately bear on our prosperity. Burke was right. It is a lesson of human experience whether the issue is playground bullying, Enron or Europe in the 1930s that the worst outcomes occur when good people find reasons to accommodate themselves to what they know is wrong. That is what I think happened much too often in Davos this week.