Thursday, July 9, 2015

Today's Links

It’s the same problem the U.S. experienced in the 1930s, as explained at the time by President Franklin D. Roosevelt:
 “…our basic trouble was not an insufficiency of capital. It was an insufficient distribution of buying power coupled with an over-sufficient speculation in production. While wages rose in many of our industries, they did not as a whole rise proportionately to the reward to capital, and at the same time the purchasing power of other great groups of our population was permitted to shrink. We accumulated such a superabundance of capital that our great bankers were vying with each other, some of them employing questionable methods, in their efforts to lend this capital at home and abroad. I believe that we are at the threshold of a fundamental change in our popular economic thought, that in the future we are going to think less about the producer and more about the consumer. Do what we may have to do to inject life into our ailing economic order, we cannot make it endure for long unless we can bring about a wiser, more equitable distribution of the national income.”

Wealthiest Tenth (10%) of Americans Own 75% of America; They Draw 40% of All U.S. Income.
Wealthiest Hundredth (1%) of Americans Own 43% of America; They Draw 20% of All U.S. Income
Wealthiest Thousandth (0.1%) of Americans Own 22% of America; They Draw 8% of All U.S. Income.
Wealthiest Ten-Thousandth (0.01%) Own 11.2% of America; They Draw 5% of All U.S. Income.

2--Hillary on Iran deal

Hillary noted on CNN, “We have tried [the interventionists’] version of strength—invading Iraq; invading Libya; occupying Afghanistan for more than a decade; arming, training, and funding various jihadis in Syria and all across the Middle East. And all it has brought us is damage to ourselves.
“The real strength would be, just like Nixon and Kissinger went to China and accepted the People’s Republic of China, we need to go to Tehran, as we wrote in our book, and make our peace with Iran. It will help us. It will resurrect our position in the Middle East and around the world. And if we don’t, we will see ourselves continue to flail across the Middle East and around the world…

“The Islamic Republic of Iran is here to stay, like the People’s Republic of China. What we need to recognize is that rising Iran, just like rising China, is a strong, independent power. And we need to work with them, not constantly try to bring them down and align with other countries like Saudi Arabia that get us into strategic disaster after strategic disaster.”
But that is precisely what Obama has been unwilling  to do. Could the United States still “walk away” from the process?

As Hillary said on CNN, “A decision by the United States to ‘walk away,’ to cut off talks with Iran would be just as strategically damaging, if not more so, to the United States than the decision to invade Iraq. It would have enormously devastating consequences for the United States in the Middle East, keep us on a trajectory to get into one never-ending, unwinnable war after another. And it would have repercussions for us globally, in economic terms and military terms.”

3--Chinese Media Blames Soros, "Hostile" Foreigners For Stock Bloodbath
4--Suspected hostile short-selling behind sell-off in China markets

5---Nigel Farage Destroys EU Group-Think: "There's A New Berlin Wall... And It's Called The Euro"

6---BRICS Summit Marks Transformation of Old World Order Into New Reality

Despite all obstacles, the BRICS economies have demonstrated impressive results: according to the International Monetary Fund (IMF) data, the BRICS countries' contribution to the world's economy has grown to 50 percent in the past decade.
Furthermore, the share of the BRICS counties as a part of global GDP has reached 30 percent, according to Russian Minister of Economic Development Alexei Ulyukayev. It is worth mentioning that the BRICS countries also saw a tremendous increase in multilateral trade in 2014 — more than 70 percent — reaching $291 billion...

Our countries accounted for over 17 percent of global trade, 13 percent of the global services market and 45 percent of the world's agricultural output [in 2014]," Alexei Ulyukayev stressed during his speech at the Meeting of the BRICS Trade Ministers in Moscow on July, 7.

The BRICS will now be bolstered by their own institutions that are intended to operate parallel to the US led order created at Bretton Woods in 1944," Cynthia Roberts emphasized, explaining that the present Bretton Woods system has obviously failed to meet the needs of the emerging powers, since Washington and its European allies do not want to cede their dominant economic positions to BRICS nations.

Whatever you like it or not, BRICS "has emerged as a powerful financial and political voice in the emerging multipolar world that is unlikely to be ignored," W.P.S. Sidhu, a senior fellow for foreign policy at Brookings India, admitted.
7--US Administration Proposes to Sell Oil From Strategic Reserve

8--Trump redoubles racist invective against Mexican immigrants

9--China share rout hits global markets

Overall, more than $3 trillion in market capitalisation has been wiped out and the markets are down more than 30 percent from their peak a month ago. The amount of money that has disappeared is more than the market capitalisation of the French and Spanish markets combined, and almost equivalent to the gross domestic product of Germany, the world’s fourth largest economy....

For the Chinese Communist Party regime, the inability of the government and financial regulators to stop the market crash is rapidly turning into a political disaster. In November 2013, in an effort to find a new growth path for the Chinese economy, President Xi Jinping announced that henceforth, the government would emphasise “the decisive role of market forces.”

The plan was to increasingly open up the financial sector to international capital, and to encourage share trading by better off individuals in the country’s middle classes. Seeking to cultivate this layer as an important social base, it actively lured them into share market activity.
The government’s plan, based on “market forces” that are now wreaking havoc, has blown up in its face. It not only faces the hostility of millions of small traders, who have lost out in the stock market plunge, but also the prospect of social and political struggles by the working class, as the economy slows down.

10--1929 redux?
Retail investors now make up 80 to 90 percent of the Chinese stock market, according to the Financial Times. They are heavily margined, just as the unsophisticated retail investors were in the U.S. market crash of 1929. And in a further similarity to 1929, where the guys shining shoes were giving out hot stock tips to their customers, the Wall Street Journal reported yesterday that a Chinese woman had invested on a tip from her hairdresser. Yesterday evening, CNBC described an Uber taxi driver in China who was trading from his car.
During 1929, brokerage firms, in hopes of drumming up more retail customer business, lined up chairs in their offices so that customers could drink coffee, eat donuts, watch the ticker tape and make trades. Photos are now coming out of China showing brokerage firms with dozens of stock market computers lined up in their offices for the retail investor

11--Combative new star of the French right

"We both could see that if we were to de-demonise the party, we had to talk about more than just immigration and security. We needed to have a global vision. Which we do now - a vision built on retaking control of national sovereignty."
On the economy that means a "concerted dissolution" of the euro, and protectionism to boost French jobs and businesses.
"How can we fight in a globalised world when we have competitors who control their budgets and monetary policy - and we do not?" he asks.

But according to Philippot: "Frankly we do not care. They are all the same: Valls, Hollande, Sarkozy, Juppe. Federalist, immigrationist, ultra-liberal."...

Today Philippot says that the attacks "leave me totally indifferent. Or rather they make me laugh, because he is becoming the worst caricature of his own self. What he has said about me as well as Marine is deeply insulting, but he dishonours only himself.
"For Marine, the episode has made her free. Her father used to create constant anxiety. He was destroying everything she built. It was unbearable for her, psychologically, to have this constant shadow pressing down on her. Now she is liberated."

12--A Bunch of Major US Foundations Are About to Be Booted out of Russia
The “stop list” includes 12 organizations, among them the Soros Foundation, the National Endowment for Democracy, the MacArthur Foundation, the Freedom House and the East European Democratic Center.

13---Do Russia Sanctions Still Exist?

BP buys 20% of Rosneft-owned oil reserves in E.Siberia, in a $700 million deal, creating new Asian-bound oil partnership
• Rosneft and Indian state-run Oil and Natural Gas Corp signed long-term deals.
• Gazprom and Royal Dutch Shell are building a global alliance
• Gazprom signed an agreement with the Greek government to pursue its Turkish Stream Pipeline
• Gazprom signed a 300 million euro loan with Unicredit Bank of Austria
• Gazprom held discussions with Engie (formerly GDF Suez) over gas pipelines to France
The capper came at the St Petersburg Economic Forum, where the Saudis arrived, offering to be a full-fledged finance partner in Russia’s energy development, in exchange for Russian nuclear expertise and military arms. Two weeks later, the Saudis raised the bet with a five-year, $10 billion investment in Russia’s agriculture, retail, and real estate sectors.


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