Event: Why Millennials Aren’t Listening to You, Tues., 8/26, 6 p.m. to 8 p.m.

If you’re in the
D.C. area, come out to this Reason event tomorrow evening. Event is
free and open to the public, but
you must RSVP
.

Born between 1980 and 2000, the millennial generation dwarfs
even the baby-boom generation in numbers and is already
fundamentally remaking American politics, culture, and
business.

Millennials are widely credited with handing Barack Obama a
second term as president, with being socially tolerant and
skeptical of government invasions of privacy and personal freedoms,
and creating world-changing companies such as Facebook.

Millennials also display an admirable independent streak, with
fully one-third refusing to identify as either Democrat or
Republican. They are the politically unclaimed generation and how
they define their relationship to power will define the next 50
years or more of American life.

The October issue of Reason is devoted to millennials and
features articles discussing the rise of “the Hipster Capitalist,”
the increasingly desperate scramble among parties for the youth
vote, the millennial fondness for dystopian fiction and movies such
as The Hunger Games and Divergent, and the new language of politics
spoken by today’s post-partisan youth. This special issue of Reason
follows the release of this summer’s Reason-Rupe Poll of
millennials that was widely discussed in The New York Times
Magazine, The Washington Post, and elsewhere.

You’re invited to join Reason.com’s Nick Gillespie and Reason
Foundation Polling Director Emily Ekins for a fast-paced,
wide-ranging discussion about millennials, what they believe, and
how libertarians interested in promoting “free minds and free
markets” might best with today’s younger generation.

Light snacks, beer, wine, and soft drinks will be served.

Tuesday, August 26
6:00 p.m. – 8:00 p.m.

Reason DC HQ
1747 Connecticut Ave. NW
Washington, DC 20007


RSVP HERE

Map: http://goo.gl/maps/Xt0Fc

Questions? Contact Cynthia Bell at cynthia.bell@reason.org
or 202-986-0916

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The Latest NSA Revelation Wouldn’t Be So Scary If Agency Hadn’t Gone Bonkers

In other circumstances, a description of the search engine the
National Security Agency (NSA) invented in order to comb through
data about intelligence targets would be remarkably unremarkable.
We would expect the NSA to develop ways to access the intelligence
they’ve gathered efficiently, right? An internal search engine to
help government agencies find information they’ve all gathered
about terrorists across the world is just about the right way to
respond to the Sept. 11 attacks. Sharing more information between
agencies was supposed to be part of the solution.

Unfortunately, since that time we’ve discovered that we are
living in a world where the federal government has gathered far,
far more information about everybody on the planet, including its
own citizens, than we ever conceived. Thus, the latest news story
today originating from Edward Snowden’s treasure trove of
classified documents has a sinister slant that wouldn’t have
otherwise existed. Today The Intercept detailed the
surveillance search engine called ICREACH, which helps more than
two dozen federal agencies search through more than
850 billion records about individuals, both foreign and
domestic
:

The documents provide the first definitive evidence that the NSA
has for years made massive amounts of surveillance data directly
accessible to domestic law enforcement agencies. Planning documents
for ICREACH, as the search engine is called, cite the Federal
Bureau of Investigation and the Drug Enforcement Administration as
key participants.

ICREACH contains information on the private communications of
foreigners and, it appears, millions of records on American
citizens who have not been accused of any wrongdoing. Details about
its existence are contained in the archive of materials provided to
The Intercept by NSA whistleblower Edward Snowden.

Earlier revelations sourced to the Snowden documents have
exposed a multitude of NSA programs for collecting large volumes of
communications. The NSA has acknowledged that it shares some of its
collected data with domestic agencies like the FBI, but details
about the method and scope of its sharing have remained shrouded in
secrecy.

THEY KNOW.

The big issue is again what the heck we mean by “metadata.” NSA
officials and defenders have been downplaying the word ever since
Snowden’s leaks began, trying to convince us all it’s just basic,
non-private info. But one of the documents The Intercept has
published shows that the NSA has added 25 additional forms of
“metadata” past what used to be traditionally accepted: phone
numbers called, what time and what length of calls and the like.
The new description of metadata includes everything from unique
cellphone codes, passport and flight records, visa application
records, and cellphone location data.

And then there’s the question as to whether this massive
expansion in metadata gathering is being used not to fight
terrorists but to help secure domestic crime convictions through
“parallel construction” processes, secretly sharing this info with
local law enforcement agencies:

Parallel construction involves law enforcement agents using
information gleaned from covert surveillance, but later covering up
their use of that data by creating a new evidence trail that
excludes it. This hides the true origin of the investigation from
defense lawyers and, on occasion, prosecutors and judges—which
means the legality of the evidence that triggered the investigation
cannot be challenged in court.

In practice, this could mean that a DEA agent identifies an
individual he believes is involved in drug trafficking in the
United States on the basis of information stored on ICREACH. The
agent begins an investigation but pretends, in his records of the
investigation, that the original tip did not come from the secret
trove. Last year, Reuters
first reported
details of parallel construction based on NSA
data, linking the practice to a unit known as the Special
Operations Division, which Reuters said distributes tips from NSA
intercepts and a DEA database known as DICE.

Tampa attorney James Felman, chair of the American Bar
Association’s criminal justice section, told The Intercept
that parallel construction is a “tremendously problematic” tactic
because law enforcement agencies “must be honest with courts about
where they are getting their information.” The ICREACH revelations,
he said, “raise the question of whether parallel construction is
present in more cases than we had thought. And if that’s true, it
is deeply disturbing and disappointing.”

Read more about ICREACH at The Intercept
here
and their latest crop of related documents here.

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Raise Your Own Damn Children, Porn Edition

Noam
Millman responds
to Damon Linker and me on sex work and
people’s adult children going into it.

Linker suggested folks rethink their morally-permissive
attitudes toward porn in light of the fact that
someday their children could become porn stars
. I said the idea
that your child could wind up in porn, prostitution, or other
erotic arenas was a good argument for decriminalizing and
destigmatizing such pursuits. “You could call this a ‘moral
libertarian’ version of Rawls’s veil of ignorance,” Millman writes
of my position.  

We don’t know what our daughter might decide to do when she is
of age. She might decide to have sex for money. Therefore, we
should examine our political (and moral) attitudes with a view to
who would be most harmed by them – and the person most harmed by a
morally condemnatory attitude is the daughter who decides to have
sex for money, and would be condemned for it.

As with Rawls’s own perspective, this makes perfect sense if you
take the existing distribution is a given – in Rawls’s case, of
wealth; in Nolan Brown’s, of life choices. If you don’t assume that
– if you assume instead that redistribution of wealth will lead to
less production of wealth overall, or that a permissive moral
attitude will lead to an increase in objectively poorer life
choices – then you can’t blithely say that the only thing that
matters is harm reduction for those who make those choices. You
have to weigh the costs on all sides of the equation. This much
should be obvious.

But I still think Nolan Brown’s critique has teeth, because
she’s drawing a distinction between the daughter as thought
experiment and the daughter in reality.

Linker’s daughter-in-porn is a hypothetical. His attitude – he
would be appalled – is rooted in the fact that his daughter
is not involved in porn, and he hopes she never
is. If a grown daughter of his
actually were having sex for money, his attitude
would unquestionably change.

How would it change? I’m going to assume that this
(hypothetical) Linker would make a priority of his daughter’s
well-being, so I can rule out reactions like killing his daughter
for the sake of the family’s honor – or, for that matter, cutting
off all contact with her for the sake of protecting the virtue of a
(hypothetical) younger daughter. In other words, I’m going to
assume that if his hypothetical became actual, Linker
would actually take an approach something akin to what Nolan Brown
hypothesizes. He would likely worry about his daughter being
exploited – which might lead him to try to get her out of the
business, or might lead him to fight to make sure the business is
properly regulated, or any number of other reactions. But I
strongly suspect that revulsion, which he previously
felt, would no longer hold a place in his heart, not if he valued
his relationship with his daughter. And that change, in turn, would
change the baseline from which other people judged their own
hypothetical daughters’ choices.

As a counter-thought-experiment, Millman asks how people would
feel about an actress daughter getting a big break on the TV
show Game of Thrones—and appearing fully nude, in a
simulated sex scene: 

Do you have qualms now? If you don’t, then I’d say all we’re
doing is haggling over the price. … If you do have qualms, then
clearly you should recognize that your private judgments
are not universal. There are just too many
actresses competing for those kinds of parts, and too many of those
actresses have fathers. You should be open to the possibility that
our “morally libertarian” moment has already significantly changed
what we actually feel to be base, and may change it further. And so
you can’t just use your gut as a guide either to whether we’re all
acting in bad faith, nor to what is “essentially” base or
noble.

It’s also terrible policy to make laws based on what you would
want for your own offspring because, as
Adam Ozimek points out at Forbes
, “this is a country
of free people,” not millions of your kids. 

Whether you’d want your kid to do something is a terrible,
selfish, and self-centered way to think about policy. You hear
this kind of argument when it comes to drug use too. “Do you really
want your kid to be able to smoke pot?” But the laws of this
country aren’t the rules of your household. Stopping your kid from
smoking pot or becoming a prostitute isn’t our job, it’s
yours. 

Hear, hear! But while Millman seems to agree on this front, he
suggests that the level of exploitation and danger he imagines in
the porn industry may justify trying to discourage its existance.
Sure, “questions of exploitation are relevant to all
industries–even high paying ones,” he acknowleges,
but “consent to sex is more fraught and more fragile than
consent to being a forklift operator.”

This, however, depends on how you define “fraught and fragile.”
I’m guessing not many people take forklift-driving positions
because they just adore the work. People take jobs as forklift
drivers for the same reason people take jobs in porn—to make a
living—and we don’t hear complaints that this situation exploits
forklift drivers because they are under economic pressure to accept
dangerous work. Yet according to the Occupational Safety and Health
Administration, there are
about 85 deaths and 34,900 serious injuries
related to
forklifts each year, with 42 percent of these involving the
forklift operator being crushed by a tipping vehicle. How many
people are killed each year by porn?

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Government Policies Made the Economy Worse – and They’re Still Impeding the Recovery

Why
has the U.S. job market stayed so lousy for so long? The impact of
the recession explains part of it, but it’s not the whole story,
according to a paper unveiled Friday by economists Steven J. Davis
and John Haltiwanger. Davis, of the University of Chicago, and
Haltiwanger, of the University of Maryland, looked at employment
trends across the country in recent years and concluded that a
significant chunk of the problem predated the economic
downturn.

The issue is a reduction in labor market fluidity. Essentially,
older people are staying put in the jobs they have, creating less
turnover and less movement. So one of the consequences is that
younger people are having trouble getting their foot in the
door.

That has ripple effects for years to come. The longer it takes
for someone to get his or her first job, and the lower-paying that
initial job is, the harder it is to gain skills and connections
that allow someone to move up the ladder. Basically, the part of
the labor market that already has work (older workers) is less
fluid. As a result, there are fewer opportunities for the part of
the labor market that doesn’t have work (younger people who want to
work). They can’t get jobs, can’t accumulate “human
capital”—everything from concrete skills to personal connections to
a conceptual understanding of how their markets function—and so
have a harder time getting started. It’s a vicious cycle. Younger
workers and men, the economists say, are hit the hardest.

Part of what makes Davis and Haltiwanger’s conclusion so
interesting is that in many ways it contradicts the conventional
wisdom that economy has become to unsteady, too uncertain, and too
volatile. What they’re saying, in contrast, is that the economy
isn’t volatile enough. 

Why is the economy more rigid than it used to be? The economists
have a few ideas,
via
The New York Times:

Mr. Davis and Mr. Haltiwanger attribute some of this decline to
the aging of the work force; as people get older, they tend to
change jobs less frequently. The decline in the creation of new
companies is also playing a role. In effect, companies are getting
older, too. This has been particularly pronounced in the retail
sector, where giants like Walmart and McDonald’s offer relatively
stable employment.

The paper argues that economic policy also plays an important
role. The cost of training workers has increased, partly because
the share of all workers who require government licenses has grown
by one estimate from about 5 percent in the 1950s to 29 percent in
2008. This discourages hiring. So do legal changes that have made
it more difficult to fire employees, the paper says. It also
mentions health insurance as a reason that employees may stay
put.

In other words, policy makes a difference, especially when the
marginal effects are allowed to build up over time and gum up the
works. Licensing and training requirements make it more expensive
to put people to work. Policies that make it harder to fire
inevitably make it harder to hire too. And our half-century old
policy of tying health insurance to employment through favorable
tax treatment has likely made it harder, at the margins, for
workers to move from job to job. 

Part of this, then, is a story about how the government got in
the way. As time went on, the cumulative effects of multiple bad
employment policies helped make for a bad job market. And recovery
could be harder and longer than we think, because even after the
effects of the recession wear off, those problematic policies will
still be dragging us down.

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US Furious After Source Of “Mystery” Libya Bombing Raids Revealed

Over the past week a new geopolitical mystery emerged: an “unknown” party was launching airstrikes against Libya, which is already reeling in its latest political crisis where headlines such as this have become the norm:

  • MILITIA MEN SET HOUSE OF LIBYAN PM THENI ABLAZE: ARABIYA
  • LIBYA’S NEIGHBOURS AGREE NOT TO INTERVENE IN LIBYAN AFFAIRS, CALL FOR NATIONAL DIALOGUE

The strikes puzzled all media outlets, including Reuters which just over the weekend reported that “Unidentified war planes attacked positions of an armed faction in the Libyan capital Tripoli on Saturday, residents and local media said. Local channel al-Nabaa said the planes had attacked four positions of the Operation Dawn, an umbrella of Islamist-leaning forces from Misrata which has been trying to expel brigades from Zintan, also located in western Libya.” This follows a similar report when on Monday, the government said unknown fighter jets had bombed positions from armed factions in Tripoli, an attack claimed by a renegade general in Benghazi.

Turns out the renegade general was lying, and merely trying to take credit for another party’s intervention. That party, or rather, parties has been revealed as Egypt and the United Arab Emirates, which as the NYT reports, “have secretly teamed up to launch airstrikes against Islamist-allied militias battling for control of Tripoli, Libya, four senior American officials said, in a major escalation between the supporters and opponents of political Islam.”

But what is surprising is not the intervention: after all, hardly a day passes now when there isn’t some small to medium political invasion taking place somewhere, in a world in which newsflow no longer affects anything. It is that both countries decided to roundly ignore advising the one country which previously had made it quite clear it has explicit national interests in Libya: the United States.

The United States, the officials said, was caught by surprise: Egypt and the Emirates, both close allies and military partners, acted without informing Washington or seeking its consent, leaving the Obama administration on the sidelines.

It gets worse: Egyptian officials explicitly denied the operation to American diplomats, the officials said. It is almost as if the theme of ignoring and/or mocking US superpower status exhibited most recently by both China and Russia, is gradually spreading to even the more “banana” republics around the world. Because while one can debate the pros and cons of any previous administration, it is very much improbably that any regime, especially ones as close to the US as the UAE, and to a lesser extent Egypt, would have conducted such military missions without preclearing with the Pentagon first.

So now that the “mysterious” owners of the punitive bombing raids has been revealed, the next question is: why? The answer is simple – to keep Islamists in check. And since the US can no longer be relied on to do the bidding of formerly key petrodollar allies, the UAE decided to take the law into its own hands.

The strikes are another high-risk and destabilizing salvo unleashed in a struggle for power that has broken out across the region in the aftermath of the Arab Spring revolts, pitting old-line Arab autocrats against Islamists. Since the military ouster of the Islamist president in Egypt one year ago, the new Egyptian government, Saudi Arabia and the United Arab Emirates have formed a bloc exerting influence in countries around the region to rollback what they see as a competing threat from Islamists. Arrayed against them are the Islamist movements, including the Muslim Brotherhood, backed by friendly governments in Turkey and Qatar, that sprang forward amid the Arab spring revolts.

And while “old-line Arab autocrats” may see the military invasion as justified (they can simply point to what the US is doing in Iraq), that doesn’t mean that the US is happy in being ignored. In fact, quite the contrary: the US is “fuming” (perhaps because it is not the one conducting the airstrikes?)

Libya is the latest, and hottest, battleground. Several officials said that United States diplomats were fuming about the airstrikes, believing they could further inflame the Libyan conflict at a time when the United Nations and Western powers are seeking a peaceful resolution.

 

“We don’t see this as constructive at all,” said one senior American official.

The U.A.E. has not commented directly on the strikes. But on Monday an Emirati state newspaper printed a statement from Anwar Gargash, minister of state for foreign affairs, calling questions about an Emirati role “an escape” from the recent election that he suggested showed a desire for “stability” and a rejection of the Islamists. The allegations about the U.A.E. role, he said, came from a group who “wanted to use the cloak of religion to achieve its political objectives,” and “the people discovered its lies and failures.”

Most important, however, is that as the NYT notes, this latest escalation in direct political intervention in a sovereign state, means the middle-east is no longer a playground for proxy wars: after all, who needs to beat around the bush when one can directly bomb a proximal country without fears of repirsals by the international community, as Abu Dhabi and Cairo have done:

Officials said that the government of Qatar has already provided weapons and support to the Islamist aligned forces inside Libya, so the new strikes represent a shift from proxy wars —where regional powers playout their agendas through local allies —to direct involvement.

All of this ignores whether or not the strikes have actually achieved their objective of halting the militants’ progress. They haven’t.

The strikes have also proved counterproductive so-far: the Islamist militias fighting for control of Tripoli successfully seized its airport the night after they were hit with the second round of strikes.

 

American officials said Egypt had provided bases for the launch of the strikes. President Abdel-Fattah el-Sisi of Egypt and other officials have issued vigorous but carefully worded public statements denying any direct involvement inside Libya by Egyptian forces. In private, officials said, their denials had been more thorough.

American officials said the success of that earlier raid may have emboldened Egypt and the U.A.E. to think they could carry off the airstrikes without detection. Or the brazenness of the attack may reflect the vehemence of their determination to hold back or stamp out political Islam.

The biggest irony in all of this is that, just like in the case of ISIS, the U.A.E. is said to have one of the most effective air forces in the region, and is now using it to engage its own enemies directly, all of which is possible excluslively thanks to American aid and training.

Which means that at this point one can start the countdown until the US, seemingly in aattempt to halt the progress of another ascendent regional hegemon, will now arm the very Islamists that it was backing in Egypt before the whole Morsi fiasco, in the process making even more enemies, while the rest of the world awaits as the latest batch of weapons are used either against US interests in the region, or, as ISIS has shown, against the US itself.

Clearly, however, what is needed, is even more US intervention in a region which is rapidly bacoming nothing but rubble thanks to US weaponized “assistance and training”, which benefits nobody except a few US military/industrial conglomerates, and the global money-laundering banking consortium of course.




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Dumb & Dumber – Scientific Proof That People Are Getting ‘Stupider’

Submitted by Michael Snyder of The American Dream blog,

Are people dumber than they used to be?  Were previous generations mentally sharper than us?  You may have suspected that people are getting stupider for quite some time, but now we actually have scientific evidence that this is the case.  As you will read about below, average IQs are dropping all over the globe, SAT scores in the U.S. have been declining for decades, and scientists have even discovered that our brains have been getting smaller over time.  So if it seems on some days like you woke up in the middle of the movie “Idiocracy”, you might not be too far off.  Much of the stuff that they put in our junk food is not good for brain development, our education system is a total joke and most Americans are absolutely addicted to mindless entertainment.  Fortunately we have a lot of technology that does much of our thinking for us these days, because if we had to depend on our own mental capabilities most of us would be in a tremendous amount of trouble.

Sadly, this appears to be a phenomenon that is happening all over the planet.  As a recent Daily Mail article explained, IQ scores are falling in country after country…

Richard Lynn, a psychologist at the University of Ulster, calculated the decline in humans’ genetic potential.

 

He used data on average IQs around the world in 1950 and 2000 to discover that our collective intelligence has dropped by one IQ point.

 

Dr Lynn predicts that if this trend continues, we could lose another 1.3 IQ points by 2050.

One IQ point does not sound like a lot, but when you go back even further in time the declines become a lot more dramatic.  For example, a psychology professor at the University of Amsterdam named Jan te Nijenhuis has calculated that we have lost a total of 14 IQ points on average since the Victorian Era.

And we don’t need a professor to tell us that this is true.  Just go back and read some of the literature from that time period.  Much of it is written at such a high level that I can barely even understand it.

There is other evidence that people are getting stupider as well.  For instance, SAT scores in the United States have fallen significantly in recent years…

There appears to be a disturbing trend in American high schools. If we judge the quality of education by the scores that students get on their SATs, then it appears that things are getting worse.

 

Since 2006, the overall average SAT score has fallen by 20 points, dropping from 1518 to 1498 in 2012. Scores are also down in each of the three categories tested, with reading dropping 9 points, mathematics dropping 4 points, and writing falling 9 points. It’s a fair bet that students aren’t becoming less intelligent, so exactly what is going on?

And this decline in SAT scores is not just limited to the past few years.  As the following chart from Zero Hedge demonstrates, SAT scores have been declining in America for decades…

SAT Scores declining - Zero Hedge

There are even some scientists that are convinced that this decline in the mental ability of humans goes back for thousands of years.  Some blame genetic mutations for this decline, and others point to the fact that our brains have been getting smaller.  For example, just check out what one study conducted at Cambridge University concluded…

An earlier study by Cambridge University found that mankind is shrinking in size significantly.

 

Experts say humans are past their peak and that modern-day people are 10 percent smaller and shorter than their hunter-gatherer ancestors.

 

And if that’s not depressing enough, our brains are also smaller.

 

The findings reverse perceived wisdom that humans have grown taller and larger, a belief which has grown from data on more recent physical development.

 

The decline, said scientists, has happened over the past 10,000 years. They blame agriculture, with restricted diets and urbanization compromising health and leading to the spread of disease.

Most of us today just assume that people are smarter than they ever have been before.

Most of us today look down on our ancestors and mock them for being so primitive.

But the truth is that if we had to go up head to head against them in mental challenges, we might find ourselves greatly humbled.

At the end of this article, I have posted an eighth grade exam from 1912 that was donated to the Bullitt County History Museum in Kentucky.

As you can see, it is far more difficult than anything that eighth grade students have to do today.  In fact, most eighth grade students today are doing pretty good if they can point out the United States on a map of the world and can string a few sentences together.

I should know – for a short period of time I once taught eighth grade students.

So when I first came across the exam posted below, I was amazed at how difficult it was.

Could you pass such an exam?

I don’t know if I could.

But these are the kinds of questions that eighth grade students were expected to be able to answer back in 1912…

-Through which waters would a vessel pass in going from England through the Suez Canal to Manila?

 

-How does the liver compare in size with other glands in the human body?

 

-How long of a rope is required to reach from the top of a building 40 feet high to the ground 30 feet from the base of a building?

 

-Compare arteries and veins as to function. Where is the blood carried to be purified?

 

-During which wars were the following battles fought: Brandywine, Great Meadows, Lundy’s Lane, Antietam, Buena Vista?

A full copy of the exam is posted below.  Please notice the absence of multiple choice questions where a student can guess by circling an answer.  In the old days, kids were actually expected to be able to think and to be able to write…

Eighth Grade Exam

So what do you think about all of this?

Do you believe that people are actually getting stupider?

And is “stupider” actually a word?




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Ukraine President Dissolves Parliament, Announces It On Twitter

Last week we were intrigued when the Ukraine Central Bank announced its FX market intervention plans not via ‘trader sources” or Bloomberg but through its Facebook account (which later failed as the Hryvnia pushed on to record lows). Today, we hear perhaps even more important news – that Ukraine President Poroshenko has dissolved parliament. This was not entirely surprising news given recent political breakdowns but his chosen medium to disseminate this crucial (and potentiall detsabilizing) news… his Twitter account.

The crucial Twitter account to follow for all Ukrainians…

 

Bloomberg notes:

  • *UKRAINIAN PRESIDENT POROSHENKO DISSOLVES PARLIAMENT
  • *UKRAINIAN PRESIDENT POROSHENKO CALLS ELECTIONS FOR OCT. 26




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The Japanification Of Europe

According to the 1990s Japan script, European QE is just what the doctor ordered to raise growth and inflation expectations… oh wait…

 

Presenting the Japanification of Europe…

 

As a gentle reminder – Japan QE1 began March 2001… The Nikkei 225 fell 62% in the ensuing 2 years

 

h/t @Schuldensuehner




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The MOAMOPE by James C. McShirley

The advent of computer generated trading algorithms heralded a quantum leap forward in the quest for 24/7 control of markets. No longer were humans beings required to do such unseemly things as man trading desks or worry a whit if free markets were, if even infrequently, attempting to function. Algo precision has made even the blackest of black swan events seem to turn lily white in their utter non-eventfulness. No more significant Dow or bond crashes, and best of all, no gold rallies exceeding (exactly) 1.00%, or the occasional 2.00%. Algo sentinels now stand in a permanent state of vigilance, keeping MOPE alive. (MOPE is what Jim Sinclair refers to as “management of perspective economics”.) Market manipulations and control of gold trading are what I have documented now for over 15 years. Many of these manipulations are well-worn, tried and true. Nearly all have intensified over the past 3 years. It seems as if one could throw a dart on a trading dartboard and hit an anomalous trading pattern nearly every time. Even with that said, I was stunned to stumble on to the biggest trading anomaly of all: the MOAMOPE – the mother of all management of perspective economics.

MOAMOPE is quite simply the stunningly high percentage of lower opens on the 6:00 PM silver access trade open. Perhaps some have noticed the oddity in the form of a Kitco 3 day chart.

Look familiar? It should, it’s happened 621 times in the past 3 years.

Virtually every evening for the last 3 years at precisely 6:00 PM EST something very odd has happened: Comex silver offers swamped the bids to the tune of a 3-10 cent decline. For this to happen for three consecutive weeks would be strange. If it were to happen for three straight months it would be bizarre. MOAMOPE can only describe when it occurs for three straight years. It’s a veritable Algopalooza! Silver has had a near-iron clamp imposed on it commencing with the access trade reopen. How severe is this iron clamp? From September 1, 2011 to the present, 621 out of the 744 6:00 PM access trade opens have been lower. All manipulation denialists take note: that’s an astounding 83.5%.

Legitimate hedging? Yeah, right. Ya think maybe deep pockets with algo sophistry?

The pattern is consistent, pervasive, and relentless. For 36 straight months not ONE month has had a greater number of higher opens than lower. Amazingly 35 out of 36 were between 80-95% lower, and the lone outlier “only” had 67% lower openings. The pattern was irrespective of rising or falling silver prices. From January 1st to February 28th of 2012, for example, silver rose $9.28, going from $27.86 to $37.12. That’s a whopping 33% gain! During that time, however, 34 out of 42, or 81% of the 6:00 PM access trade opens were lower. It was a bull market in silver in the context of a raging bear market in access trade opens. The MOAMOPE was in all its glory!

Selling the 5:30 PM access trade close MOC and then covering 2-4 minutes after the 6:00 PM reopen has been a license to print fiat money for those willing to shadow cartel behavior. Even a 1-lot trade over 3 years could have netted someone $70-100k on a measly 3 cent scalp. The unusually high percentage of lower access opens is actually far worse than it looks, since the few higher opens for the most part faded as the evening wore on.

The trend of lower silver access opens has actually accelerated in 2014, with 134 lower openings vs. only 14 higher openings, a 90.5% probability. More recently 80 out of the past 84 have been lower, with the past 24 in a row having been lower. This despite silver being virtually unchanged from January 1st to the present.

Only 14 higher openings in all of 2014 – with silver virtually unchanged from Jan. 1!

There have also only been 4 significant gaps higher on the 6:00 access trade open since the beginning of 2013 – all of which quickly faded. Why the lockdown on silver? Why such extreme treatment for a seemingly minor commodity market? Why has silver been constantly bludgeoned to death with the CME’s margin hammer? Why the silence on such blatant manipulation? The only logical answer is that to NOT do it would be tantamount to disaster for “the force”, or the “resolute sellers”, or whatever the hell the polite crowd is calling it lately. Call me impolite, but I’ll just call it the MOAMOPE.

Time researching the MOAMOPE: 20+ hours.
Compensation: Zilch.
Satisfaction proving once more that manipulation denialists are disingenuous phonies: Priceless.

A denialist reporting on gold and silver trading.

James C. McShirley
August 23rd, 2014




via Zero Hedge http://ift.tt/1l9mvjQ lemetropole

The MOAMOPE by James C. McShirley

The advent of computer generated trading algorithms heralded a quantum leap
forward in the quest for 24/7 control of markets. No longer were humans beings
required to do such unseemly things as man trading desks or worry a whit if
free markets were, if even infrequently, attempting to function. Algo precision
has made even the blackest of black swan events seem to turn lily white in
their utter non-eventfulness. No more significant Dow or bond crashes, and
best of all, no gold rallies exceeding (exactly) 1.00%, or the occasional 2.00%.
Algo sentinels now stand in a permanent state of vigilance, keeping MOPE alive.
(MOPE is what Jim Sinclair refers to as “management of perspective economics”.)
Market manipulations and control of gold trading are what I have documented
now for over 15 years. Many of these manipulations are well-worn, tried and
true. Nearly all have intensified over the past 3 years. It seems as if one
could throw a dart on a trading dartboard and hit an anomalous trading pattern
nearly every time. Even with that said, I was stunned to stumble on to the
biggest trading anomaly of all: the MOAMOPE – the mother of all management
of perspective economics.

MOAMOPE is quite simply the stunningly high percentage of lower opens on the
6:00 PM silver access trade open. Perhaps some have noticed the oddity in the
form of a Kitco 3 day chart.


Look familiar? It should, it’s happened 621 times in the past 3 years.

Virtually every evening for the last 3 years at precisely 6:00 PM EST something
very odd has happened: Comex silver offers swamped the bids to the tune of
a 3-10 cent decline. For this to happen for three consecutive weeks would be
strange. If it were to happen for three straight months it would be bizarre.
MOAMOPE can only describe when it occurs for three straight years. It’s a veritable
Algopalooza! Silver has had a near-iron clamp imposed on it commencing with
the access trade reopen. How severe is this iron clamp? From September 1, 2011
to the present, 621 out of the 744 6:00 PM access trade opens have been lower.
All manipulation denialists take note: that’s an astounding 83.5%.


Legitimate hedging? Yeah, right. Ya think maybe deep pockets with algo sophistry?

The pattern is consistent, pervasive, and relentless. For 36 straight months
not ONE month has had a greater number of higher opens than lower. Amazingly
35 out of 36 were between 80-95% lower, and the lone outlier “only” had
67% lower openings. The pattern was irrespective of rising or falling silver
prices. From January 1st to February 28th of 2012, for example, silver rose
$9.28, going from $27.86 to $37.12. That’s a whopping 33% gain! During that
time, however, 34 out of 42, or 81% of the 6:00 PM access trade opens were
lower. It was a bull market in silver in the context of a raging bear market
in access trade opens. The MOAMOPE was in all its glory!

Selling the 5:30 PM access trade close MOC and then covering 2-4 minutes after
the 6:00 PM reopen has been a license to print fiat money for those willing
to shadow cartel behavior. Even a 1-lot trade over 3 years could have netted
someone $70-100k on a measly 3 cent scalp. The unusually high percentage of
lower access opens is actually far worse than it looks, since the few higher
opens for the most part faded as the evening wore on.

The trend of lower silver access opens has actually accelerated in 2014, with
134 lower openings vs. only 14 higher openings, a 90.5% probability. More recently
80 out of the past 84 have been lower, with the past 24 in a row having been
lower. This despite silver being virtually unchanged from January 1st to the
present.


Only 14 higher openings in all of 2014 – with silver virtually unchanged from
Jan. 1!

There have also only been 4 significant gaps higher on the 6:00 access trade
open since the beginning of 2013 – all of which quickly faded. Why the lockdown
on silver? Why such extreme treatment for a seemingly minor commodity market?
Why has silver been constantly bludgeoned to death with the CME’s margin
hammer? Why the silence on such blatant manipulation? The only logical answer
is that to NOT do it would be tantamount to disaster for “the force”,
or the “resolute sellers”, or whatever the hell the polite crowd
is calling it lately. Call me impolite, but I’ll just call it the MOAMOPE.

Time researching the MOAMOPE: 20+ hours.
Compensation: Zilch.
Satisfaction proving once more that manipulation denialists are disingenuous
phonies: Priceless.


A denialist reporting on gold and silver trading.

James C. McShirley
August 23rd, 2014




via Zero Hedge http://ift.tt/1AOdK2q lemetropole