UMN Professor Lectures On “The Violence Of Whiteness”

Authored by Toni Airaksinen via Campus Reform,

The University of Minnesota has invited a professor dedicated to “dismantling whiteness” to speak next week on how whiteness is an “existential threat” to the United States. 

The Elephant in the Room: A ‘Grown Up’ Conversation about Whiteness” will be presented by Lisa Anderson-Levy, an Anthropology professor at Beloit College whose teaching philosophy is predicated on the belief that “teaching is a political act.” 

During her lecture, Anderson-Levy is slated to speak on a number of issues, including “the violence of whiteness” and how colleges and universities in the United States may be complicit in perpetuating this violence. 

“This presentation explores the ubiquity and violence of whiteness and the ways in which academic institutions are poised to either reproduce or interrupt these discourses,” writes Anderson-Levy, referring to herself in the third person. 

“She argues that whiteness poses an existential threat to social, political, and economic life in the U.S. and proposes that decentering whiteness is one of the most urgent social dilemmas of our time and demands our immediate attention,” the abstract adds. 

Anderson-Levy will also speak on how college administrators can “decenter whiteness” at their institutions, “including in our budgets, our curricula, our disciplinary genealogies, our interactions with students, and our relationships with each other as colleagues.”

Though the lecture appears geared towards college administrators, students are welcome to attend, and UNM spokeswoman Emmalynn Bauer confirmed to Campus Reform that the university is indeed sponsoring the lecture. 

“The ICGC Alumni Lecture Series is an opportunity to highlight successful alumni and allow current students to engage with them,” Bauer said in a statement. 

Campus Reform reached out to Anderson-Levy multiple times for comment, but did not receive a response in time for publication. In her post at nearby Beloit College, her academic interests include “feminist anthropology” and “activist anthropology.”

She is also the co-leader on a $600,000 project to foster “diversity, inclusivity, and equity” at Beloit College, which was funded by the Andrew W. Mellon Foundation. 

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Steel Output Surge Saves Chinese Economy Despite Credit Impulse Collapse

Despite all the discontinuities that the lunar new year causes in China’s macro data, the global synchronous recovery narrative is fading fast, but while retail sales missed, China’s Industrial Production surged in February (thanks to Steel production).

China’s macro data has been disappointing for a couple of months…

And as Bloomberg’s Enda Curran notes, it’s China data day, but with a catch.

Today’s numbers will cover a period when the economy more or less shut down for the annual New Year holidays which means it’s a tricky time of the year for gauging the economy’s true strength. We’ll have to wait for the March and April numbers to get a better handle.  

And so what did the data look like…

  • Retail Sales YTD YoY MISS +9.7% vs 9.8% exp vs 10.2% prior
  • Industrial Production YTD YoY HUGE BEAT +7.2% vs 6.2% exp vs 6.6% prior
  • Fixed Asset Investment YTD YoY HUGE BEAT +7.9% vs 7.0% exp vs 7.2% prior

Amid all the tariffs, it seems Steel saved China…

  • China Jan.-Feb. Steel Product Output Rises 4.6% to 159.03M Tons
  • China Jan.-Feb. Crude Steel Output Rises 5.9% to 136.82M Tons

And Iron Ore inventories are surging…

Iris Pang at ING has some interesting observations on industrial production. Even though factories were closed, the tech boom  boosted output. Here’s some numbers:

“That growth will probably come from high-tech sectors, including industrial robots (+68.1 percent in 2017), new energy cars (+51.1 percent) and integrated circuits (+18.2 percent).

The cold winter is also likely to increase production of electricity. These areas will probably cushion the loss of production from capacity-cuts in cement, coke and crude oil.”

The figures do somewhat cut against the overarching narrative of a slowdown in the old-industrial drivers and a switch to consumption.

Meanwhile, Chinese stocks managed to scramble back into the green for the year after the lunar new year’s celebration, but are rolling over once again…

As foreign investors fled in February…

All of which happening as the lagged impact of the collapse of China’s credit impulse filters through…

 

And don’t expect it to resurge anytime soon as Xi – now emperor for life – cracks down on leverage and debt across society (for now).

Of course, as Bloomberg’s Chris Anstey concludes, from a financial-market perspective, it’s been some time since investors agonized over Chinese indicators. Most are comfortable that the hard-landing fears are in the rear-view mirror now, and have become accustomed to the idea that China is in a gradual transition from focus on quantity of growth to quality.

Of course, that complcency is there until something (like Anbang) goes boom…

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Massive X-Class Solar Storm To Slam Earth Tomorrow, Could Knockout Satellites, Power

A solar storm caused by an X-Class solar flare facing directly towards earth is likely to hit tomorrow. The brunt of the activity will be in the higher latitudes, however the aurora it generates could result in Northern Lights as far south as Michigan and Maine, as well as parts of Scotland and Northern England.

The X-class flare was the first of two, according to NASA. It is the largest in 2018, as well as one of the largest in the sun’s current cycle known as the solar minimum which began in 2007. The arrival of the storm could leave commercial flights and GPS systems vulnerable to disruption – however the storm is currently considered a G-1, or “minor geomagnetic storm,” which could become more serious depending on how the charged particles hit the earth.

Below is a visualization of a Coronal Mass Ejection (CME)

Coronal holes and coronal mass ejections (CME) visible via x-ray imaging

The storm also coincides with the formation of “equinox cracks” in the Earth’s magnetic field – which typically occur around the March 20 and September 23 equinoxes every year.

This is called the the “Russell-McPherron effect,” named after the researchers who first explained it. The cracks are opened by the solar wind itself.  South-pointing magnetic fields inside the solar wind oppose Earth’s north-pointing magnetic field. The two, N vs. S, partially cancel one another, weakening our planet’s magnetic defenses. This cancellation can happen at any time of year, but it happens with greatest effect around the equinoxes. Indeed, a 75-year study shows that March is the most geomagnetically active month of the year, followed closely by September-October–a direct result of “equinox cracks.” –Spaceweatherarchive.com

NASA and European spacecraft have detected these cracks for several years.

“We used to think the connection was permanent and that solar wind could trickle into the near-Earth environment anytime the wind was active,” said David Sibeck of the Goddard Space Flight Center in 2008. “We were wrong. The connections are not steady at all. They are often brief, bursty and very dynamic.”

 

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Krieger: “It’s Impossible To Overstate How Terrible Mike Pompeo Is

Authored by Mike Krieger via Liberty Blitzkrieg blog,

When the director of the CIA, an unelected public servant, publicly demonizes a publisher such as WikiLeaks as a “fraud,” “coward” and “enemy,” it puts all journalists on notice, or should. Pompeo’s next talking point, unsupported by fact, that WikiLeaks is a “non-state hostile intelligence service,” is a dagger aimed at Americans’ constitutional right to receive honest information about their government. This accusation mirrors attempts throughout history by bureaucrats seeking, and failing, to criminalize speech that reveals their own failings…

Words matter, and I assume that Pompeo meant his when he said, “Julian Assange has no First Amendment freedoms. He’s sitting in an embassy in London. He’s not a U.S. citizen.” As a legal matter, this statement is simply false. It underscores just how dangerous it is for an unelected official whose agency’s work is rooted in lying and misdirection to be the sole arbiter of the truth and the interpreter of the Constitution.

– From Julian Assange’s Washington Post opinion piece: The CIA Director Is Waging War on Truth-Tellers like WikiLeaks

What’s most unique about Mike Pompeo isn’t the fact he’s a terrible human being, it’s the fact he’s so transparent and shameless about it. This became crystal clear last April when I read the transcript of a speech he gave at UAE-funded think tank, the Center for Strategic and International Studies (CSIS).

I covered Pompeo’s commentary in detail in the piece, The American Empire Under Donald Trump Has Become Increasingly Desperate, Dangerous & Insecure, but let’s revisit in case some of you missed it the first time around.

First, he falsely characterized Wikileaks as a hostile non-state intelligence agency (despite lauding it during the election), and then used this false categorization to launch an attack on the First Amendment.

So we face a crucial question: What can we do about this? What can and should CIA, the United States, and our allies do about the unprecedented challenge posed by these hostile non-state intelligence agencies?

While there is no quick fix—no foolproof cure—there are steps that we can take to undercut the danger. First, it is high time we called out those who grant a platform to these leakers and so-called transparency activists. We know the danger that Assange and his not-so-merry band of brothers pose to democracies around the world. Ignorance or misplaced idealism is no longer an acceptable excuse for lionizing these demons.

Third, we have to recognize that we can no longer allow Assange and his colleagues the latitude to use free speech values against us.To give them the space to crush us with misappropriated secrets is a perversion of what our great Constitution stands for. It ends now…

Julian Assange and his kind are not the slightest bit interested in improving civil liberties or enhancing personal freedom. They have pretended that America’s First Amendment freedoms shield them from justice. They may have believed that, but they are wrong.

Pompeo went even further in the Q&A stating:

A little less Constitutional law and a lot more of a philosophical understanding. Julian Assange has no First Amendment privileges. He is not a U.S. citizen. What I was speaking to is an understanding that these are not reporters doing good work to try to keep the American Government on us. These are actively recruiting agents to steal American secrets with the sole intent of destroying the American way of life.

That is fundamentally different than a First Amendment activity as I understand them. This is what I was getting to. We have had administrations before that have been too squeamish about going after these people, after some concept of this right to publish.

Glenn Greenwald responded to this assertion with the following:

Pompeo’s remarks deserve far greater scrutiny than this. To begin with, the notion that WikiLeaks has no free press rights because Assange is a foreigner is both wrong and dangerous. When I worked at the Guardian, my editors were all non-Americans. Would it therefore have been constitutionally permissible for the U.S. Government to shut down that paper and imprison its editors on the ground that they enjoy no constitutional protections? Obviously not. Moreover, what rational person would possibly be comfortable with having this determination – who is and is not a “real journalist” – made by the CIA?

Meanwhile, Pompeo spent a lot of his speech demonizing Julian Assange as someone who cozies up to dictators, saying stuff like the following.

We know this because Assange and his ilk make common cause with dictators today. Yes, they try unsuccessfully to cloak themselves and their actions in the language of liberty and privacy; in reality, however, they champion nothing but their own celebrity. Their currency is clickbait; their moral compass, nonexistent. Their mission: personal self-aggrandizement through the destruction of Western values.

It’s takes some nerve for Pompeo to say that considering the following, via Glenn Greenwald at The Intercept:

So how could Mike Pompeo – fresh off embracing and honoring Saudi tyrants, standing in a building funded by the world’s most repressive regimes, headed by an agency that for decades supported despots and death squads – possibly maintain a straight face as he accuses others of “making common cause with dictators”? How does this oozing, glaring, obvious act of projection not immediately trigger fits of scornful laughter from U.S. journalists and policy makers?

The reason is because this is a central and long-standing propaganda tactic of the U.S. Government, aided by a media that largely ignores it. They predicate their foreign policy and projection of power on hugging, supporting and propping up the world’s worst tyrants, all while heralding themselves as defenders of freedom and democracy and castigating their enemies as the real supporters of dictators.

Try to find mainstream media accounts in the U.S. of Pompeo’s trip to Riyadh and bestowing a top CIA honor on a Saudi despot. It’s easy to find accounts of this episode in international outlets, but very difficult to find ones from CNN or the Washington Post. Or try to find instances where mainstream media figures point out what should be the unbearable irony of listening to the same U.S. Government officials accuse others of supporting dictators while nobody does more to prop up tyrants than themselves.

This is the dictatorship-embracing reality of the U.S. Government that remains largely hidden from its population. That’s why Donald Trump’s CIA Director – of all people – can stand in a dictator-funded think tank in the middle of Washington, having just recovered from his jet lag in flying to pay homage to Saudi tyrants, and vilify WikiLeaks and “its ilk” of “making common cause with dictators” – all without the U.S. media taking note of the intense inanity of it.

If that’s not enough for you, on a separate occasion Pompeo called Edward Snowden a traitor who should be brought back to the U.S. and executed.

That’s your new Secretary of State, America.

Unfortunately, it gets worse. Much worse. For all his flaws, Rex Tillerson had a surprisingly sane take on the Middle East, at least relatively. He was known for being against the idiotic Saudi-UAE attempt blockade of Qatar, as well as in favor of keeping the Iran deal active. Pompeo shares no such sentiments.

As CNBC reported:

Pompeo, named as his pick for secretary of state by Trump on Tuesday shortly after he announced Tillerson’s departure on Twitter, has taken a notoriously tough stance on Iran in the past in his erstwhile role as director of the CIA.

Not only has Pompeo likened Iran to the Islamic State (ISIS) militant group, calling the country a “thuggish police state” in a speech in October, he has also promised to constrain Iran’s investment environment and “roll back” its 2015 nuclear deal.

“Thuggish police state.” Similar to Saudi Arabia then, which Pompeo had no problem bestowing with a CIA medal last year.

But there’s more…

In November 2016, when Pompeo was appointed to lead the CIA, he warned that Tehran is “intent of destroying America” and called the nuclear deal “disastrous.” He added that he was looking forward to “rolling back” the agreement.

Differences of opinion over how Iran should be treated are said to be the source of discord between Trump and Tillerson, whose firing followed a clash over the nuclear deal, the president said Tuesday.

“If you look at the Iran deal I think it’s terrible and I guess he thought it was OK … We weren’t really thinking the same,” Trump said in a statement outside the White House. He said he and Tillerson got on “quite well” but had “different mindsets.”

Iran has been increasingly marginalized during the Trump administration, which has sided with Saudi Arabia in the regional battle for influence in the Middle East.’

Here’s the bottom line. As I outlined multiple times last year, Trump is determined to have a war with Iran and Rex Tillerson was standing in the way. Putting unhinged war hawk Pompeo in place as Secretary of State is simply Trump getting his ducks in a row ahead of confrontation. Watch as the sales pitch for another war in the Middle East picks up considerably in the months ahead.

I believe this forthcoming war against Iran will have almost no international support. Probably just autocratic regimes in the Middle East like Saudi Arabia and the UAE, as well as Israel and possibly the UK depending on who’s Prime Minister when it gets going. The rest of the world will be against it, which will lead to spectacular failure.

It’s become increasingly clear that a huge military error, such as a new major confrontation in the Middle East is what will spell the end of the U.S. empire. Such a confrontation is now increasingly likely with Tillerson out of the picture

Oh, and the person Trump picked to head the CIA to replace Pompeo is Gina Haspel, a 33-year CIA careerist who ran a torture black site in Thailand.

Donny boy sure has a strange way of “draining the swamp.”

*  *  *

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The Democrats’ Russian Hysteria Summarized In 2 Pelosi Press Statements

Having been thoroughly embarrassed by their brazen flip-floppery over former FBI Director James Comey:

Democrats were enamored with Comey over the summer of 2016 when when he famously recommended against pressing charges in the Clinton email investigation.

Then, they soured on Comey after he reopened the investigation a little over a week before the election, demanding he resign.

And then they vehemently defended the honorable FBI Director, shocked and horrified when Trump fired him.

The Democratic leadership then shortened their flip-flopping time horizon to a few short hours around the time Rod Rosenstein was confirmed as deputy attorney general:

0944ET: Schumer “What should happen now, what must happen now, is that Mr. Rosenstein appoints a special prosecutor to oversee this investigation.”

1500ETSchumer “I have serious doubts over Rosenstein’s impartiality…  he shouldn’t appoint the special prosecutor.

And now none other than Nancy Pelosi has exposed the utter lack of any morals as she hypocritically attacks Rex Tillerson, when it suits her and her party’s agenda; and then defends him a year later…

On December 13th 2016, Nancy Pelosi issued a statement on the Nomination of Rex Tillerson for Secretary of State…

“Our nation has always needed a wise and experienced Secretary of State who has the judgement and the skill to protect our national security, strengthen our alliances, and advocate for human rights.

Choosing an oil executive friendly with Vladimir Putin as Secretary of State sends a disturbing signal about President-elect Trump’s priorities.

Rex Tillerson’s cozy relationship with the Kremlin is especially alarming in light of his attitude toward sanctions over Russia’s aggressive behavior in Europe, while at the same time the President-elect continues to side with Russia over the judgment of the U.S. intelligence community. President-elect Trump’s priorities.

“The Secretary of State should champion American values, American security and American interests. Fawning over Putin is poor preparation for being the top diplomat of the United States of America.”

And now, fast forward to today and Nancy Pelosi’s reaction to President Trump firing his Secretary of State Rex Tillerson:

“Secretary Tillerson’s firing sets a profoundly disturbing precedent in which standing up for our allies against Russian aggression is grounds for a humiliating dismissal.

President Trump’s actions show that every official in his Administration is at the mercy of his personal whims and his worship of Putin.”

Simply put:

Pelosi (2017): Rex Tillerson is “too cozy” with Putin, he’s a Russian puppet.

Pelosi (2018): Rex Tillerson was fired because he stood up to Russia.

Which is it Nancy? Or is everything you say just utter bullshit?

h/t @JohnLeFevre

*  *  *

As CNS News reports, today’s narrative that Trump fired Tillerson over differences on Russia seems at odds with the view held by some Russia experts that the man Trump has named to lead the State Department, CIA Director Mike Pompeo, has historically been firmer on Russia than has Tillerson.

“Pompeo’s views on Russia are actually tougher than Tillerson’s, and he is more aware of the intelligence/covert action threats coming from Russia,” said Ariel Cohen, senior fellow at the Atlantic Council’s Global Energy Center and Eurasia Center.

“While Tillerson paid lip service to criticism of Russia, I expect Pompeo to be much tougher on the Kremlin than his predecessor,” he said.

“Pompeo has a sober view of Russia and has consistently spoken out against Russian aggression,” said Brookings Institution fellow Alina Polyakova.

“He also seems to have the president’s ear and trust in a way that Tillerson did not,” she said. “It’s likely that he will advocate for a strong policy to deter Russia.”

But we are sure that unless he demands a nuke is dropped on Moscow, he will remain puppet of Putin in the paranoid narrative of the Democrats.

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Not The Onion: Elon Musk Poaching “The Onion” Staffers For Secret Project

Elon Musk has a secret project and has hired several former top staffers and writers of satirical news site The Onion to work on it, according to The Daily Beast

Former Onion editor in chief Cole Bolton and executive editor Ben Berkley left the publication last year due to differences with the company’s management. Since then, the two have been in Los Angeles working on the Musk project, and they recently poached three of the site’s writers and a longtime editor to join them, sources confirmed. -The Daily Beast

Musk’s new venture has been described as a “comedy project,” while The Onion is known for its deadpan delivery of intentionally fake news. For example:

as

as

 “We can confirm that we have learned nothing from prevailing trends in media and are launching a brand-new comedy project,” Bolton and Berkley told The Daily Beast. It’s unclear, however, what exact project the team is building.

Bolton and Berkley kept many of their former colleagues and friends in the dark, said sources—several of whom speculated the project will likely be another written satirical-news property or website. Multiple sources familiar with the project emphasized that Musk would not have editorial oversight of the project, and that he is not involved in its day-to-day operations. –Daily Beast

When asked about the project, Musk told The Daily Beast that he has an interest in comedy.

as

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With 20% Of Precincts Reporting, Democratic Candidate Leads In Pennsylvania’s 18th District

The polls have officially closed in Tuesday’s special election in Pennsylvania’s 18th district – a patch of coal and steel country in southwestern Pennsylvania that includes swaths of suburban Pittsburgh surrounded by many far more rural areas.

Once a reliably Democratic district, President Trump carried the 18th by 20 percentage points – blowing out Hillary Clinton and even far surpassing the 12-point lead captured by Mitt Romney back in 2012.

Lamb

But most polls of likely voters show 33-year-old Democrat Conor Lamb, a Marine veteran who has pledged not to support Nancy Pelosi, and also to oppose gun control, against Republican state House member Rick Saccone, a staunch Christian conservative.

Trump has twice visited the district – most recently on Saturday night, when he unveiled his 2020 campaign slogan “Keep America Great” to uproarious cheers. And senior Trump surrogates, including Kellyanne Conway and Donald Trump Jr. have also made appearances.

Trump

The race the race was triggered when former GOP Congressman Tim Murphy resigned after reportedly urging his mistress to have an abortion.

Saccone, widely considered a weak candidate with a lackluster local fundraising operation, has benefited from a flood of outside money. Lamb, who is running in a district where Democrats didn’t even field a candidate to oppose Murphy, has been successful raising money locally, and hasn’t received as much help from the Democratic establishment. Indeed, Lamb comes from a prominent local political family: His grandfather was a prominent Democratic politician in the Pennsylvania, and his uncle holds a senior city job in Pittsburgh.

Regardless of who wins tonight, their tenure in Congress may be short-lived. The 18th district is set to disappear thanks to a Pennsylvania Supreme Court decision forcing the state to redraw its districts. Whoever wins will need to make a difficult choice about which district they will run in.

So far, with 21% of precincts reporting, Lamb leads with a 15 percentage-point lead over Saccone. In terms of votes, Lamb is up 23,558 to 17,437.

 

 

* * *

Even if the Democrats triumph tonight, for some, it will feel like a Pyrrhic victory.

The Bernie Sanders-loving progressive wing of the Democratic Party will be horrified to learn that, if Lamb wins, more Democrats in Trump-positive districts will seek to mimic Lamb’s approach – i.e. run as conservative Democrats who oppose the party leadership, gun control and abortion.

With that in mind, we’re certain the good people over at Emily’s List will be thrilled to welcome Lamb into the House.

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The Last Breakout…

Authored by Lance Roberts via RealInvestmentAdvice.com,

Well, I jinxed it.

In this past weekend’s missive I wrote:

“There are generally two events that happen every year – somebody forgets their coat, goggles or some other article of clothing needed for skiing, and someone visits the emergency clinic with a minor injury.”

The tradition continues as my wife fell and tore her ACL. The good news is she tore the right one three years ago, and after surgery is stronger than ever. Now she will get to do the left one.

But, while I was sitting in the emergency clinic waiting for the x-rays to be completed, I was sent a chart of the technology sector with a simple note: “Chart Of The Year.”

Chart Of The Year?

Yes, the technology sector has broken out to an all-time high. Yes, given the sector comprises roughly 25% of the S&P 500, it suggests that momentum is alive and well keeping the “bullish bias” intact. (We removed our hedges last week on the breakout of the market above the 50-dma on a weekly basis.)

This is why we are currently only slightly underweight technology within our portfolio allocation models as shown below.

But why “the chart of the year” now? As shown below the technology sector has broken out to all-time highs several times over the last 18-months. What makes this one so special?

The Last Breakout

As stated, breakouts are indeed bullish and suggest higher prices in the short-term. This time is likely no different. However, breakouts to new highs are not ALWAYS as bullish as they seem in the heat of the moment. A quick glance at history shows there is always a “last” break out of every advance.

1999-2000

2007-2008

As I discussed yesterday, the technology sector is once again the darling of “Wall Street” just as it was at the peak of the previous two bull-markets.

“When we compare the fund to Shiller’s CAPE ratio, not surprisingly, since Technology makes up a quarter of the S&P 500 index, there is a high correlation between Technology and overall market valuation expansion and contraction.”

“As was the case in 1998-2000, the fund exploded higher as exuberance over the transformation of the world was occurring before our eyes. Investors globally were willing to pay “any price” to “get in on the action.”  Currently, investors are once again chasing returns in the “FANG” stocks with little regard to underlying value. The near vertical ramp in the fund is reminiscent of the late 1990’s as valuations continue to escalate higher.”

I am not suggesting the current breakout is “THE” last breakout, and from a “trading perspective” the breakout is certainly bullish and should be bought.

However, from a long-term investing viewpoint, the problem is knowing the difference in a “breakout” and “the last breakout.”

In both previous instances, there were no warnings, no fanfare, or any glaring impediment to the technology sector, or the markets. Investors were bullishly optimistic, fully invested, margined, and willing to overlook fundamental valuation problems on the “hope” that “reality” would soon catch up with the price.

They were wrong on both previous occasions and suffered large losses of capital not soon thereafter.

Once again, we are witnessing the same mistakes being played out in “real time.”

But there is a “difference this time” as noted by the brilliant Harold Malmgren yesterday;

The importance of the point should not be overlooked as it has been the key source of liquidity pushing markets higher since 2009.

But that is now coming to an end via ZeroHedge:

“Yet the time of this unprecedented monetary experiment is coming to an end as we are finally nearing the point where due to a growing shortage of eligible collateral, the central bank support wheels will soon come off (the ECB and BOJ are still buying massive amounts of bonds and equities each month), resulting in gravity finally regaining control over the market’s surreal trendline.

It’s not just central banks, however: also add the one nation which 5 years ago we first showed has put the central bank complex to shame with the amount of debt it has injected in the global financial system: China.

Appropriately, this central bank handoff is also the topic of the latest presentation by Matt King, in which the Citi credit  strategist once again repeats that “it’s the flow, not the stock that matters“, a point we’ve made since 2012, and underscores it by warning – yet again – that “both the world’s leading marginal buyers are in retreat.” He is referring to central banks and China, the world’s two biggest market manipulators and sources of capital misallocations.”

With markets heavily leveraged, global growth beginning to show signs of deterioration, breakeven inflation rates falling, and liquidity support being removed – the markets have yet to recognize the change.

So, yes, the breakout in the Technology sector may indeed be the “Chart Of The Year” for 2018. But not for the reason as touted by the overly optimistic “hopefuls,” rather because this could very well mark the “last breakout” of this particular bull market cycle.

Just something to consider.

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NYC Housing Becoming More Affordable Amid Growing Vacancies And Flood Of New Inventory

On Tuesday we noted that Manhattan apartment sales have plummeted to a 6-year low amid a 20.1% drop in co-op and condo sales. 

Today, the Wall St. Journal reports that housing in New York City is becoming more affordable in general – pointing to an increase in inventory and rising incomes. 

A new U.S. Census Bureau survey shows a record amount of new housing, while the rental-vacancy rate is at its third highest level since the bureau began its survey in 1965. 

Driving the changes is a surge of construction in the last few years and a strong economy in which the growth of jobs has outpaced the increase in rents. The economic gains are beginning to benefit lower-income groups, economists said.-WSJ

 “A nearly decade-long rising economic tide really is starting to lift all boats,” said James Parrott, an economist at the Center for New York City Affairs at The New School. “The trends are all positive and encouraging and bode well for improved rental housing affordability.”

The survey reports 3.47 million housing units in New York – an increase of 117,000 in seven years. Over 35,000 rental apartments and 15,000 condominiums are also due to open in 2018 and 2019 according to Nancy Packers Data Services. 

Vacancy rates are also high right now: 

The vacancy rate was 3.63% across the city, the report found. The two higher vacancy rates recorded since 1965 included a peak rate of 4.01% in 1996, as the city was recovering from a steep local recession. By contrast, the current figure comes amid a sustained period of economic growth.

In Manhattan, the vacancy rate was 4.73%, the highest it has been in at least a decade. For all private rental housing, it was 6.07% and 8.74% for apartments renting for $2,500 or more. These were also at their highest rates in years. -WSJ

“Rising vacancy rates citywide are a sign that, overall, the housing supply is starting to catch up with demand, helping to relieve the upward pressure on housing costs,” said Mark Willis, a NYU Furman Center senior policy fellow.

That said – NYC vacancy rates vary by borough, with the Bronx at just 2.71%. 

Meanwhile, household income among NY Renters rose 11% over three years, while rents rose just 8.2%. According to the census report, the median household income among renters was $47,200 and $57,500 for all households in 2016. 

In rent-controlled areas, incomes rose an average of 7% while rents were up just 2.6%. 

Still unaffordable at the bottom

Despite higher vacancies, NYC housing commissioner Maria Torres-Springer said that “the city is still facing a dire affordability crisis” despite rising incomes, and that the administration will continue to strengthen rent laws while increasing inventory of affordable homes. 

Oksana Mironova, a housing-policy analyst with the Community Service Society, which often advocates for lower-income tenants, said there were “definitely some positive things in the report” but she wondered whether the higher income figures reflect higher-income tenants moving into newer luxury buildings that under city rules are covered by rent regulation. -WSJ

Landlord groups, meanwhile, are arguing that the Census data shows such a robust housing market that the City Council should remove certain categories of housing from rent control – in particular, Manhattan apartments renting for $2,000 or more. Current law requires localities to abandon rent regulation if vacancy rates exceed 5%. 

The city council is set to adopt legislation on March 21 to extend current regulations for three more years. 

Jack Freund, executive vice president of the Rent Stabilization Association, which represents 25,000 owners and managers of rent regulated housing, noted that the 5% standard is within the survey margin of error of the 4.73% vacancy rate Manhattan. The vacancy rate for apartments renting for $2,000 to just under $5,000 is 5.2%. WSJ

That said, with Manhattan apartment sales at a six-year low, vacancies at recent highs, and interest rates on a steady course higher – one has to wonder if New York real estate is about to become much more affordable. 

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Globalists Or Nationalists: Who Owns The Future?

Authored by Patrick Buchanan via Buchanan.org,

Robert Bartley, the late editorial page editor of The Wall Street Journal, was a free trade zealot who for decades championed a five-word amendment to the Constitution: “There shall be open borders.”

Bartley accepted what the erasure of America’s borders and an endless influx or foreign peoples and goods would mean for his country.

Said Bartley, “I think the nation-state is finished.”

His vision and ideology had a long pedigree.

This free trade, open borders cult first flowered in 18th-century Britain. The St. Paul of this post-Christian faith was Richard Cobden, who mesmerized elites with the grandeur of his vision and the power of his rhetoric.

In Free Trade Hall in Manchester, Jan. 15, 1846, the crowd was so immense the seats had to be removed. There, Cobden thundered:

“I look farther; I see in the Free Trade principle that which shall act on the moral world as the principle of gravitation in the universe — drawing men together, thrusting aside the antagonisms of race, and creed, and language, and uniting us in the bonds of eternal peace.”

Britain converted to this utopian faith and threw open her markets to the world. Across the Atlantic, however, another system, that would be known as the “American System,” had been embraced.

The second bill signed by President Washington was the Tariff Act of 1789. Said the Founding Father of his country in his first address to Congress: “A free people … should promote such manufactures as tend to make them independent on others for essential, particularly military supplies.”

In his 1791 “Report on Manufactures,” Alexander Hamilton wrote, “Every nation ought to endeavor to possess within itself all the essentials of national supply. These comprise the means of subsistence, habitat, clothing and defence.”

This was wisdom born of experience.

At Yorktown, Americans had to rely on French muskets and ships to win their independence. They were determined to erect a system that would end our reliance on Europe for the necessities of our national life, and establish new bonds of mutual dependency — among Americans.

Britain’s folly became manifest in World War I, as a self-reliant America stayed out, while selling to an import-dependent England the food, supplies and arms she needed to survive but could not produce.

America’s own first major steps toward free trade, open borders and globalism came with JFK’s Trade Expansion Act and LBJ’s Immigration Act of 1965.

By the end of the Cold War, however, a reaction had set in, and a great awakening begun. U.S. trade deficits in goods were surging into the hundreds of billions, and more than a million legal and illegal immigrants were flooding in yearly, visibly altering the character of the country.

Americans were coming to realize that free trade was gutting the nation’s manufacturing base and open borders meant losing the country in which they grew up. And on this earth there is no greater loss.

The new resistance of Western man to the globalist agenda is now everywhere manifest.

We see it in Trump’s hostility to NAFTA, his tariffs, his border wall.

We see it in England’s declaration of independence from the EU in Brexit. We see it in the political triumphs of Polish, Hungarian and Czech nationalists, in anti-EU parties rising across Europe, in the secessionist movements in Scotland and Catalonia and Ukraine, and in the admiration for Russian nationalist Vladimir Putin.

Europeans have begun to see themselves as indigenous peoples whose Old Continent is mortally imperiled by the hundreds of millions of invaders wading across the Med and desperate come and occupy their homelands.

Who owns the future? Who will decide the fate of the West?

The problem of the internationalists is that the vision they have on offer — a world of free trade, open borders and global government — are constructs of the mind that do not engage the heart.

Men will fight for family, faith and country. But how many will lay down their lives for pluralism and diversity?

Who will fight and die for the Eurozone and EU?

On Aug. 4, 1914, the anti-militarist German Social Democrats, the oldest and greatest socialist party in Europe, voted the credits needed for the Kaiser to wage war on France and Russia. With the German army on the march, the German socialists were Germans first.

Patriotism trumps ideology.

In “Present at the Creation,” Dean Acheson wrote of the postwar world and institutions born in the years he served FDR and Truman in the Department of State: The U.N., IMF, World Bank, Marshall Plan, and with the split between East and West, NATO.

We are present now at the end of all that.

And our transnational elites have a seemingly insoluble problem.

To rising millions in the West, the open borders and free trade globalism they cherish and champion is not a glorious future, but an existential threat to the sovereignty, independence and identity of the countries they love. And they will not go gentle into that good night.

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