Al Gore Wouldn’t Have Invaded Iraq, Third Parties are a Threat to Democracy, and Other New York Times Delusions

Brothers of the Military Industrial ComplexAccording to Gail Collins’ latest column in The New York Times, Ralph Nader cost Al Gore the 2000 election and thus enabled the Iraq War because unlike George W. Bush, Gore would have never invaded Iraq. “Case closed,” Collins so authoritatively puts it.

While attacking 2016 Green Party presidential nominee Jill Stein for her quixotic campaign demanding recounts in crucial swing states lost by Hillary Clinton by very small margins, Collins outdoes herself in dispensing conventional wisdom that wilts under just the barest of scrutiny.

Collins muses that “it’s definitely possible” Clinton could have received every vote that instead went to Stein and seethes at Stein’s insistence that most people who voted for her would have just stayed home without the Green Party on the ballot.

Collins writes:

We had heard something similar from Ralph Nader, whose presence on the ballot in 2000 probably cost Al Gore Florida, and the presidency. On many of Nader’s issues, Gore was not great. But the point of the American system of democracy is that in the end, you often have to take the responsibility for choosing the better of two unlovely options. And if Gore had been elected, we wouldn’t have invaded Iraq. Case closed.

Hoo boy.

First off, Ralph Nader may have earned far more votes in Florida than Gore would have needed to defeat Bush (and thus, win the presidency) in the Sunshine State, but more than 12 times as many registered Florida Democrats voted for Bush than Gore, who didn’t even win his home state of Tennessee. But just like in 2000, when Democrats and sympathetic Top Men and Top Women in media refused to consider Gore ran a terrible campaign, Collins and others want to pin Donald Trump’s stunning electoral victory on disobedient voters who rejected the two-party duopoly which produced the two least popular candidates of all time.

Examining exit poll data in the wake of the 2016 election, I noted the lack of enthusiasm for either major party candidate among third party voters:

CBS News‘ exit poll posed the hypothetical question of who third party voters would support if the race were only Clinton and Trump, and both [Libertarian Party candidate Gary] Johnson and Stein supporters appeared to support Clinton over Trump by about 25 percent to 15 percent. But 55 percent of Johnson’s supporters would have just sat out the election, as would 61 percent of Jill Stein supporters. According to New York Times exit polling, a whopping 63 percent of voters who declined to cast their ballot for the two major party candidates said they would have not voted at all in a two candidate race.

Second, it’s a howler that Collins is so certain (“Case closed”) Gore wouldn’t have invaded Iraq, considering he was one of the few Senate Democrats to vote in favor of the first Gulf War, uber-hawk Joe Lieberman was his running mate, and he had spent his entire legislative career as a liberal internationalist consistently supporting military interventions on humanitarian grounds. Gore also defended air strikes in Iraq as Vice President and, as a candidate for president, supported the U.S. policy of removing Saddam Hussein from power which President Clinton made official with the signing of the Iraq Liberation Act of 1998.

Reason‘s Matt Welch also found some evidence straight from Gore’s mouth boasting of his hawkish bona fides:

In 1996, when Republican nominee Bob Dole criticized Clinton for lobbing cruise missiles into Iraq, Gore retorted, “Sometimes the U.S. has to take unilateral action when our interests are at stake.” In May 2000, speaking at the American Israel Public Affairs Committee Conference, Gore bragged on being an Iraq hawk and stressed that “it is our policy to see Saddam Hussein gone…”

We can play “alternative history” games all day, but it arguably makes less sense to insist Gore would definitely not have invaded Iraq as it would to declare the opposite.

Finally, is it really “the point of the American system of democracy” to choose “the better of two unlovely options”? If that’s the point, why not ban third parties, independent candidacies, and write-in votes altogether for the sake of preserving American democracy?

“Serious thinkers” like Collins and Rachel Maddow and Joss Whedon believe that votes cast by independent and third party voters this election rightfully belonged to the Democratic candidate whose strategy for winning them over was not to seriously consider any of their policy concerns, but instead to launch a billionaire-funded multi-million dollar ad campaign meant to shame them.

It’s more than a little ironic that Collins’ cites the Iraq War as a consequence of those pesky Nader voters in 2000, especially since non-interventionism was a major driving force behind the Libertarian and Green Party candidacies of 2016. With regards to Clinton’s campaign in particular, the former secretary of state never missed an opportunity to boast of her foreign policy experience and record of supporting every single U.S. military intervention of the past 25 years.

Perhaps the Democrats could have won a few more of those Green, Libertarian, and independent voters if they hadn’t spent so much of 2016 trying to out-hawk Trump and the Republicans on matters of war and civil liberties? Collins won’t engage in such nuance, she’d rather simply declare that Stein “screwed up, big time,” while Clinton’s mistakes go unmentioned.

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Hillary Clinton Gains One Vote On First Day Of Wisconsin Recount

Submitted by  Joseph Jankowski via Planet Free Will

On the first day of the Jill Stein spawned vote recount in Wisconsin, the gap between Hillary Clinton and Donald Trump narrowed by 1 vote.

The first day’s results suggest that Stein’s efforts, which came with a hefty price of almost $3.5 million, will show a final vote tally very close to the original one.

 

Daily Caller reports:

Only Menominee County, home to the Menominee Indian Reservation, fully reported its recounted results on the first day. It found 17 extra votes for Stein and 12 for Libertarian Gary Johnson, while removing two votes from Trump and one from Clinton.

 

When putting all the results together, that means the first day of the recount narrowed the gap between Clinton and Trump by just a single vote.

Trump defeated Clinton in the state of Wisconsin by just over 22,000 votes or about 1% of the total vote.

Stein filed for a Wisconsin recount after suggesting that fraud or technological glitches may have swayed the results but has admitted that there is no concrete evidence of voter fraud.

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Deutsche Bank Stock Slides After “Cutting Off” 3,400 “Non-Strategic” Trading Clients

In September, headlines of Deutsche Bank trading clients pulling collateral sparked grave concern over the world’s most systemically dangerous bank. Today, the stock is sliding once again as WSJ reports the bank said it would cease providing some coverage for about 3,400 actively trading clients in its global markets division, according to a memo sent to equities staff.

 

The memo to equity sales, sales trading and structuring staff said the move is with “immediate effect,” according to The Wall Street Journal.

A Deutsche Bank spokesman confirmed the contents of the memo.

 

It follows a detailed review by the trading division of the German lender’s client list “to identify clients with whom it is not strategically viable for us to continue to do business,” according to the memo from Dixit Joshi.

 

The action is aimed at balancing “risk, revenue and profitability,” according to the memo. The cuts affect Institutional Client Group debt and equity sales, sales trading and equity structuring clients, according to the memo.

The question is – what knock-on effect will the liquidation of these 3,400 trading clients’ collateral have on markets… and Deutsche Bank’s risk.

We suspect this slide has further to go…

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Erdogan Demands Turks Exchange Their Dollars To Gold, Lira

Early this morning, in yet another session of panicked selling, the Turkish Lira crashed to new record lows to just shy of USDTRY 3.60, momentarily going bidless as the currency plunged nearly 400 pips in seconds, after Turkish President Recep Erdogan said the path for investors will be opened with lower interest rates, and urged the central bank to imitate Japan and U.S. where rates are low: “why should we go around with 14-15 percent?” 

The answer is simple: the currency tends to drop when an economy is seen as weak, the political regime unstable, or – yes – a central bank cuts rates, which Turkey, as shown in the chart below, can not afford if it hopes to maintain a stable economy with the lira already at all time lows.

Normally, any other country would find itself in a dilemma: how to lower rates as per the president’s demands to stimulate investment and the economy, without killing the economy… but not Erdogan. As AFP notes, the Turkish president “urged” his fellow Turks on Friday to convert their foreign currencies into gold and lira to stimulate the country’s economy as the lira continued its slide against the dollar.

“For those who have foreign currencies under the pillow, come change this to gold, come change this to Turkish lira. Let the lira win greater value. Let gold win greater value,” he said during a televised speech in Ankara.

It was not exactly clear how a few thousand Turks exchange lira for gold would “let gold win greater value”, nor how the same number of locals converting their dollars to lira would withstand another selling onslaught as soon the the Turkish central bank cut rates again, but that’s not really relevant for the Turkish president, who appears to have a far better understanding of how to wage “failed coups” than simple finance.

“What necessity is there to let foreign currency have greater value?” he asked.

There was no answer, but as he was speaking, the lira lost value against the US dollar, crashing just shy of 3.60. After his address, it stage a modest rebound at 3.55 against the greenback, a loss of over 1.5% on the day. In November alone, the lira has lost more than 10% against the dollar, and December was not starting off on the right foot either.

And no, he wasn’t joking: as Hurriyet reported moments ago, Turkey’s main stock exchange, Borsa Istanbul, became the first institution to convert all of its cash assets into the Turkish Lira a few hours after President Recep Tayyip Erdo?an called on people and institutions to back the struggling currency against the U.S. dollar.  Borsa Istanbul said in a written statement on Dec. 2 that it would convert all of its cash assets into lira and keep them in lira accounts.

Erdogan also warned that there were forces “playing games” against Turkey, which Turks could counter by changing their money. He did not say whom he was referring to. “Don’t worry, in a short while, we will destroy this game“, clearly referring to “evil speculators” who could be destroyed if only mom and pop exchanged the dollars in their mattress for the local currency.

As noted above, the Lira was also reacting to Erdogan’s repeated insistence on lowering interest rates because, he claims, there is “no other remedy”. He referred to the United States, Japan and Europe as examples of where rates are low and questioned why Turkey still had such high rates.

In a surprise to some, after several months of rate cuts, the central bank stepped in with an unexpected hike of 50 basis points in its leading rate last month. This prompted many to wonder how long Erdogan will tolerate the insolence of his central banker who clearly has defied his decree. 

To be sure, concerns over Turkey’s political instability, including the government’s race to expand Erdogan’s powers, as well as its cracking relationship with the European Union meant a rally in the lira was shortlived after the bank’s announcement.

Worries over Erdogan’s influence grew after Prime Minister Binali Yildirim said on Thursday the government would bring a bill to parliament next week which proposes to change the constitution and give greater powers to the president. Considering Erdogan’s track record, it is only a matter of time before he appoints himself central bank head too, at which point the Turkish Lira and the Venezuela Bolivar will begin a race which one can reach a value of 0 faster.

Incidentally, anyone who does convert their dollars into gold can simultaneously start a countdown how long it will take for the “authorities” to come knocking and confiscate said gold.

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Defensive Stocks Bounce — Led Higher by Gold Stocks

For gold traders, it has been a long month of the ‘Trump-trade’ completely decimating their lives — disrupting their austere lifestyles with harrowing losses. In the shadow of soon to be great again America, gold stocks plummeted by more than 15% over the past month — knee capping an otherwise spoiled rotten investor base who’ve been enjoying magnanimous gains throughout 2016 — even though they’ve mostly done it under the pretext of waiting for an end of days scenario to unfold.

 

In addition to gold, bonds and anything defensive, like consumer staples, utilities and REITs got hammered — as Joe Blow blew his wad into high beta, psychotic energy, and aluminum stocks — gleefully and flippantly tossing money at bank stocks too because the yield curve blew out.

 

If only for today, the defensive plays are back in vogue, reminiscent of the days when the deflationary vortex reigned supreme and people, literally, feared for their lives and the future of their nation. Gold and silver stocks are higher by 4%, REITs by 2.5% Utilities by 1% and Goldman is down 1.6%.

 

Recent underperformers in the biotech space are participating in the rally — as a general malaise wistfully sweeps through Wall Street — exuberant about any and all best case scenarios. Traders, as always, are ignoring all of the negative aspects of sharply higher sovereign borrowing costs and an administration whose central campaign promise was to bring China to its knees — reversing decades of unfair currency manipulation and one sided trade deals. Judging by the sharp rise in basic materials, especially copper, none of that is being priced into stocks. 

 

Once again, Trump is not being taken seriously. 

 

If recent history is of any use, investors will soon learn about the seriousness of Trump’s policies and how upsetting the apple cart isn’t exactly a seamless transition into mindless rallies — based solely on hope.

 

Content originally generated at iBankCoin.com

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Oil Market Theory Discussion (Video)

By EconMatters


We discuss oil market mechanics and overall theory in this video, adding some color, or fleshing out some of our previous comments on the market. The big question is do we get a move down in markets and the oil market early in 2017? As an aside: I meant we tested the $50 level of support in WTI early in the morning, not $40 – it was a late night.

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Ask Brian Doherty Everything You Ever Wanted to Know About the Libertarian Movement

Brian Doherty is the historian of the libertarian movement in America. His big, honking book Radicals for Capitalism: A History of the Modern American Libertarian Movement (PublicAffairs) is the definitive volume on the subject. He has spent the last year keeping tabs on Gary Johnson, Bill Weld, and the Libertarian Party posse, and will continue to be Reason‘s point man on all things libertarian and Libertarian.

In case that wasn’t enough for you, he’s also the author of This is Burning Man (Little, Brown), Gun Control on Trial (Cato), and Ron Paul’s Revolution: The Man and the Movement He Inspired (HarperCollins/Broadside). So ask him about desert pyrotechnics, guns, or Pauls!

Hit him up over at his Twitter account for an hour today starting at noon eastern, using the #askalibertarian hashtag. And then donate!

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Clinton & Trump Aides Forum Devolves Into Screaming Match – “I Would Rather Lose Than Win The Way You Did”

How was this ever going to end well? An election post-mortem forum erupted into a shouting match as top strategists of Hillary Clinton’s campaign accused their Republican counterparts of fueling and legitimizing racism to elect Donald Trump. Clinton communications director Jennifer Palmieri exclaimed "I would rather lose than win the way you guys did," to which Kellyanne Conway, Trump’s campaign manager, fumed "I can tell you are angry, but wow… Will you ever accept the election results?" And it went down-hill from there…

As NBC News reports, a Harvard panel that traditionally writes the first draft of presidential campaign history devolved into a shouting match between Trump and Clinton aides on Thursday in a raw, emotional display echoing the divisive campaign.

 Jennifer Palmieri, who was Hillary Clinton's communications director, zeroed in on Steve Bannon, the incoming chief strategist for President-elect Donald Trump who once ran the web site Breitbart.

 

"If providing a platform for white supremacists makes me a brilliant tactician, I am proud to have lost," said Palmieri, one of six Clinton aides who sat across tables from top Trump campaign staff at a forum moderated by three journalists, NBC News' Andrea Mitchell among them. "I would rather lose than win the way you guys did."

 

Kellyanne Conway, who managed Trump's campaign, was visibly angry and indignantly interrupted. "Do you think I ran a campaign where white supremacists had a platform?"

 

"You did, Kellyanne. You did," Palmieri said, as other Clinton aides chimed in in the affirmative. With only two microphones allowed to be open at any given time, the shouting match was so heated it became difficult to follow.

 

"Do you think you could have just had a decent message for white, working-class voters? How about, it's Hillary Clinton, she doesn't connect with people? How about, they have nothing in common with her? How about, she doesn't have an economic message?" Conway said.

 

"There were dog whistles," said Clinton strategist Joel Benenson at one point.

 

Said Conway: "Guys, I can tell you are angry, but wow. Hashtag he's your president…will you ever accept the election results? Will you tell your protesters that he's their president, too?"

Exposing a somewhat stunning level of cognitive dissonance, seemingly blaming the media, The Washington Post reports that Clinton’s campaign aides insisted, again and again, that their candidate had been held to a different standard than the other contenders — as evidenced by the controversy over her use of a private email server while secretary of state.

Palmieri said that many political journalists had a personal dislike for the Democratic nominee and predicted that the email issue will go down in history as “the most grossly overrated, over-covered and most destructive story in all of presidential politics.”

 

“If I made one mistake, it was legitimizing the way the press covered this story line,” Palmieri said.

 

Mook added that Trump deftly used his rally speeches to “switch up the news cycle.”

 

“The media by and large was not covering what Hillary Clinton was choosing to say,” Mook said. “They were treating her like the likely winner, and they were constantly trying to unearth secrets and expose.”

 

For instance, Mook posited that the media did not scrutinize Trump’s refusal to release his tax returns as intensively as the issue of Clinton’s private email server.

 

Conway retorted: “Oh, my God, that question was vomited to me every day on TV.”

Joel Benenson, Clinton’s chief strategist, meanwhile, served notice that the election may be over but that the battles it spawned are not.

“You guys won, that’s clear,” Benenson said. “But let’s be honest. Don’t act as if you have a popular mandate for your message. The fact of the matter is that more Americans voted for Hillary Clinton than for Donald Trump.”

 

At which point Conway turned to her side and said: “Hey, guys, we won. You don’t have to respond. He was the better candidate. That’s why he won.”

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Vice President-Elect Mike Pence on the Carrier Deal: ‘The Free Market Has Been Sorting It Out and America’s Been Losing.’

At the tail end of 2008, Mike Pence, then a Republican congressman from Indiana, appeared on Fox News to state his strong personal opposition to a bailout to the Detroit auto industry. “As the American people know,” he said, “we can’t borrow and spend and bail our way back to a growing economy or a healthy domestic automotive industry.” At the same time, he also declared his opposition to the Troubled Asset Relief Program that came in the wake of the financial crisis, writing a letter to congressional colleagues insisting that government should not intervene to protect businesses from failure. “We now have a deal that promises to bring near-term stability to our financial turmoil, but at what price?” he wrote. “Economic freedom means the freedom to succeed and the freedom to fail.” On Fox, Pence stressed not only his own opposition, but the large number of Republican legislators who stood unified in opposition to the deal. He was acting as a representative of the party’s stance.

In the eight years since, Pence appears to have changed his mind.

At a press conference yesterday Pence, now the governor of Indiana and the Vice President elect, announced that he and President elect Trump had brokered a deal with air-conditioning maker Carrier to keep about 800 jobs in the United States that had previously been set to go to Mexico. In exchange for keeping some jobs in the U.S., Carrier would receive $7 million in incentives from the state of Indiana.

At the conference, Pence defended the arrangement by declaring that “the free market has been sorting it out and America’s been losing.” After which, according to The New York Times, President-elect Donald Trump cut in to agree, saying, “Every time, every time.”

Trump’s enthusiastic dismissal of free market mechanisms should come as little surprise. As a businessman, he built his real estate empire on crony capitalist dealmaking, repeatedly urging government officials to give him special treatment so that his own projects would succeed. On the presidential campaign trail, he was frequently disdainful of the free movement of goods and workers across borders.

But the statement from Pence, who is the Trump administration’s closest link to conventional Republican politics, should be taken as a declaration of intent for the GOP as a political institution. Although Republicans have frequently and sometimes flagrantly acted in opposition to basic free market principles, the party has typically maintained a surface pretense of adhering to a pro-market understanding of the world. The GOP wasn’t exactly a free-market party, but it often pretended to be.

Even President George W. Bush, when announcing his administration’s response to the financial crisis, framed his lack of orthodoxy as an exception necessary to uphold the larger idea, saying that he has “abandoned free-market principles to save the free market system.” Even a break from free-market ideas had to be framed as a defense of free-market philosophy.

In announcing the Carrier deal, Pence has made it clear that the party has abandoned free-market principles, period. Under Trump, the GOP has dropped the pretense.

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Since 2014 The US Has Added 571,000 Waiters And Bartenders And Lost 34,000 Manufacturing Workers

As another month passes, the great schism inside the American labor force get wider. We are referring to the unprecedented divergence between the total number of high-paying manufacturing jobs, and minimum-wage food service and drinking places jobs, also known as waiters and bartenders. In October, according to the BLS, while the number of people employed by “food services and drinking places” rose by another 18,900, the US workforce lost another 4,000 manufacturing workers.

This is the fourth consecutive month of declining manufacturing workers, and the 7th decline in the past 10 months.

The chart below puts this in context: since 2014, the US had added 571,000 waiters and bartenders, and has lost 34,000 manufacturing workers.

While we would be the first to congratulate the new American waiter and bartender class, something does not smell quite right. On one hand, there has been a spike in recent restaurant bankruptcies or mass closures (Logan’s, Fox and Hound, Bob Evans), which has failed to reflect in the government report. On the other hand, as the National Restaurant Association’s Restaurant performance activity index showed in October, overall industry sentiment is the worst since the financial crisis, due to declines in both same-store sales and customer traffic, suggesting that restaurant workers should now be in the line of fire for mass layoffs.

 

 

However, what we find more suspect, is that according to the BLS’ seasonally adjusted “data”, starting in March of 2010 and continuing through September of 2016, there has been just one month in which restaurant workers lost jobs, and alternatively, jobs for waiters and bartenders have increased in 80 out of the past 81 months, with just one month of job losses, something unprecedented in this series history.

Putting this divergence in a long context, since the official start of the last recession in December 2007, the US has gained 1.8 million waiters and bartenders, and lost 1.5 million manufacturing workers. Worse, while the latter series had been growing, if at a slower pace than historically, it has now clearly rolled over, and in 2016, some 60,000 manufacturing jobs have been lost.

Like last month, we remain curious what this “data” series will look like after it is revised by the BLS shortly after the NBER declares the official start of the next recession.

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