Obama’s Border Patrol Chief: Migrant Crisis ‘Worst In The History Of The Country’

A second ex-Obama admin official has spoken up over the crisis at the southern US border. 

Mark Morgan, a career FBI official who served as Border Patrol chief during the last six months of the Obama administration told Fox Business host Maria Bartiromo on Monday that the US-Mexico border crisis has reached historic proportions and is the worst in the history of the country. 

“this isn’t just a crisis, this is a crisis like we’ve never experienced in the history of this country since we started tracking numbers,” said Morgan, who also addressed false statistics floating around comparing the numbers of migrants to those of the 1990s. 

There’s still this very false talking point out there that — well, back in the ’90s, the numbers were higher — over a million.” Well, first of all, again, you got to remember they were Mexican adults, we were moving, deporting 90 percent of them. With the broken asylum laws and other loopholes that are there, we’re seeing 65 to 70 percent increase in family units, and because of those broken laws, we’re allowing them in. This year, we’re expected to hit a million, but we’re going to let 650,000 into the country. That’s driving this crisis, driving our resources, being overwhelmed. We have to address it.

In late march, former Homeland Security Secretary Jeh Johnson said that the situation at the southern border has reached a crisis, and that the number of apprehensions has exceeded anything he encountered during his time in the Obama administration. 

 

via ZeroHedge News http://bit.ly/2DfrVGN Tyler Durden

Police Told Him To Drop His Gun, Killed Him Before He Could

Newly released body camera footage appears to show that a man in Charlotte, North Carolina, was trying to obey police’s orders to drop his weapon prior to being shot and killed.

On March 25, officers with the Charlotte-Mecklenburg Police Department responded to at least one 911 call about a man “pointing [a gun] at employees” of a local Burger King, according to CNN. When officers arrived at the scene, they encountered 27-year-old Danquirs Franklin in the parking lot. Franklin had a gun and would not obey multiple commands to drop it, police said. Eventually, one of the officers, Wende Kerl, shot and killed him.

The shooting sparked considerable controversy in the Charlotte area due to some conflicting witness statements about what happened, The Charlotte Observer reported. The shooting occurred in the same city where Keith Scott was killed by police back in 2016. Conflicting reports about whether or not Scott was armed were never really settled, and the officer who shot him did not face criminal charges.

In Franklin’s case, Kerl’s lawyer and the Mecklenburg County District Attorney’s Office did not want body camera footage to be released. A judge disagreed, ruling that the footage must be released to the public Monday.

The footage, which is below, shows police approaching Franklin, who’s squatting next to the passenger seat of a car in the Burger King parking lot. Officers, including Kerl, scream at him multiple times to put his gun down. It’s not even clear that Franklin has a weapon until his right hand slowly comes into view with what appears to be a handgun in it. Franklin was not pointing the gun at anyone; in fact, it looked as though he was trying to put it on the ground. But as soon as the gun becomes visible, Kerl fires two shots at him.

“You told me to…” Kerl can be heard saying:

Franklin was taken to a local hospital, where he died. A man with a blurred out face can be seen sitting in the passenger’s seat of the car, right next to where Franklin was kneeling. That man told WCNC that he had been praying with Franklin.

This is clearly a situation where there are many questions remaining. We don’t, for instance, know exactly what happened in the lead-up to police involvement. However, it looks as though Franklin was trying to obey their orders to put down the gun. He certainly didn’t look to be drawing the gun with the intent of firing it. Hopefully, more answers will come out in the days to come.

from Latest – Reason.com http://bit.ly/2Dfr2hr
via IFTTT

Thai Government Takes Over Seastead Near the Thai Coast

The Thai government is reportedly demolishing a seastead that briefly appeared off the coast of Phuket.

According to the Bangkok Post, the Thai government thinks the act of floating around just outside their 12-mile coastal zone breaches “Section 119 of Criminal Code. The section concerns any acts that cause the country or parts of it to fall under the sovereignty of a foreign state or deterioration of the state’s independence. It is punishable by death or life imprisonment.”

Chad Elwartowski, one of the seastead’s two former inhabitants, writes in a Facebook post: “This is ridiculous. We lived on a floating house boat for a few weeks and now Thailand wants us killed.” The “wants us killed” likely refers to that potential punishment for violating Section 119.

“We had to go underground because our contact warned us before this came out,” Elwartowski adds. He also insists that he and his Thai companion Nadia Summergirl were merely tenants of the seastead and were not responsible for designing or building or placing it directly.

“We were hoping to bring tourism to Phuket with an underwater restaurant, floating hotels and medical research, tech jobs, etc,” he writes. “We had 3 wealthy entrepreneurs in the past week tell us they were coming to live in Phuket because they were excited about the project. We love Thailand. Nadia is a proud Thai. She is a proud Buddhist who does not support violence. I am a pacifist who would not harm a fly.”

Elwartowski’s post calls for legal help in negotiating with the Thai government regarding any possible punishment he and Summergirl might face.

“We just wanted to be free,” he writes. “If just for one day.”

Ocean Builders’ post on the crackdown says that the seastead is “in the process of being demolished by the Thai navy” and reiterates that although “Chad and Nadia are safe for now…understand that Thailand is currently being run by a military dictator. There will be no trial if they are caught. They already demonstrated that by being judge jury and executioner of the historic very first seastead.”

The Thai government apparently claims that the seastead was a hazard to shipping lanes. Ocean Builders’ response: “The seastead is 6 meters wide. It has a very bright anchor beacon and has a registered AIS beacon which can be detected by any boat with any sort of navigation in the vicinity.” The group further says that the seastead was in a “heavy fishing area with many many fishing boats trawling the water there daily. The fishing boat captains used to wave at Nadia and Chad as they passed by. They were in no way bothered by the floating home. The seastead takes up less space in the shipping lane than a fishing boat.”

Plans to sell and build new seasteads around Thailand are on hold. Elwartowski has told me in the past that by his understanding, the law did not require them to get the Thai government’s permission to be where they were doing what they did. Apparently the Thai government disagrees.

Patri Friedman, founder of the Seasteading Institute and co-author of the book  Seasteading: How Floating Nations Will Restore the Environment, Enrich the Poor, Cure the Sick, and Liberate Humanity from Politicians, has written a Facebook post describing the mistakes he feels Elwartowski’s team made. While their location was 12 nautical miles out from Thailand, he notes, it is still in what is legally considered that country’s “‘Contiguous Zone,’ where a state has many rights, several of which seem likely to pertain here.” He adds that even being 200 miles from land does not necessarily create “a magical realm of freedom where you can just plant a flag and be an independent polity. There are many rules and regulations that apply—including the need to plug into international law through the flagging system (for a vessel) or coastal state approval (for a fixed structure).”

Friedman also writes that anyone trying that strategy needs to be aware they would be outside all human systems of legal rights, with “ZERO rights, other than what you yourself can enforce with your diplomatic, economic, and military power, against anyone (like a nation-state) who you bother in any way.”

Until seasteading “is big enough to change the system,” Friedman concludes, “our beliefs about what international law should be, our imagined individual rights, our perception that the nation-state cartel is unjust, are all irrelevant to present strategy. We need to acknowledge the system in which we’ll be working for the next 10-30 years, because only with a clear understanding of the present can we create our desired future.”

from Latest – Reason.com http://bit.ly/2VSgJY1
via IFTTT

Useful Idiots On Parade

Authored by James Howard Kunstler via Kunstler.com,

Anyone interested in glimpsing the Wokester media mentality in full intellectual-yet-idiot smuggery might check out Slate’s Political Gabfest (i.e. podcast) from this past Saturday, titled “The Wahoo Edition.” The Gabfest’s three regulars, David Plotz, Emily Bazelon, and John Dickerson go after Julian Assange as if they were three college dormitory RAs dissecting the character of an unpopular freshman.

Plotz kicked it off by introducing Mr. Assange as “the eminence greasy of Wikileaks,” a cute twist on the French phrase éminence grise (gray eminence, i.e. an elder statesman, pronounced eminence greez, and he knows it). Bazelon offered her explanation for Ecuador’s eagerness to be rid of Mr. Assange:

“He was acting like a big jerk. They were tired of him skateboarding all over the residence and scuffing up the walls and not cleaning his bathroom. He wore out his welcome on hospitality grounds.”

Note: Emily Bazelon is a lawyer. No one mentioned the fact that Ecuador was promised debt relief from the US-controlled International Monetary Fund within hours of expelling Mr. Assange.

Plotz quickly added: “He didn’t clean up after his cat, which, as a cat owner, that is grounds for expulsion.”

Dickerson weighed in: “The big problem is he’s not an appealing man… he’s clearly a narcissist. He’s unpleasant. In addition to messing with our election, he’s basically on Team Russia.”

Plotz said of Wikileaks: “It’s acting as an agent for a foreign governments, as it has with Russia.”

Some people in this sore beset republic get hooked on opiates or crystal meth.

Wokesters get hooked on The Narrative: That Russia “stole” the 2016 election from Hillary Clinton by hacking the Democratic National Committee’s emails, with the collusion of the Trump campaign. The latter point has been authoritatively invalidated by Mr. Mueller, of course, but the Wokester’s cling to their hope that some as-yet-concealed mischief in the Mueller Report will somehow contradict Mr. Mueller’s own conclusions.

As for the alleged hacking per se, you realize of course that neither the FBI nor Mr. Mueller’s “team,” nor anyone in the DOJ before the retirement of Jeff Sessions made any effort to secure and examine the very DNC computer servers at issue. Rather, they relied on a private company called CrowdStrike, hired by Hillary and the DNC itself, to analyze the alleged hacking. Can you imagine anything more arrantly dishonest or more legally irregular?

The Slate Gabfest crew never engages in these dark issues. Nor do they mention the fact that the Mueller “team” (or any other US law enforcement agency) never indicted Mr. Assange for “collusion” with Russia, nor even attempted to interview him and hear what he had to say about it. On his own, Mr. Assange has stated that Russia was not the source of the DNC emails he received and subsequently released to the US news media, including The New York TimesThe WashPo, and the Cable TV News networks, who happily ran with the story. There is a pretty good theory though, advanced by William Binney, a former National Security Agency official-turned-whistleblower, and other Intel Community associates, that he DNC data was “leaked,” not hacked, “by a person with physical access” to the DNC’s computer system. Meaning, someone inside the DNC downloaded the info onto a thumb drive. The data transfer rates prove that, they say.

There is probably a good reason that US government authorities did not essay to make Mr. Assange a witness on-the-record: because his testimony would have prevented Mr. Mueller from bringing his bullshit charges against the Russian internet trolls he indicted — who will never have to come to trial in the USA in any case, and thus never refute The Narrative so earnestly promoted by the Mueller team — until it all fell apart on March 24.

But these are not terms that the Slate Political Gabfest chose to follow in their analysis of Julian Assange and his activities. Rather we got the following, transcribed verbatim:

Bazelon: “Assange is so detestable it’s really tempting to get as far away from him as possible. One look at him and I feel that way about him.”

Plotz: “Do you think Joe Biden would get a little handsy with him?”

Bazelon: “He’s far creepier.”

Dickerson: “You don’t find that Dickensian beard alluring?”

Bazelon: “It’s awful. But I always thought he was clean-shaven yucky.”

Such are the Deep Thoughts of America’s leading Wokester political analysts. One also might ask why Mr. Assange has not been charged by the US with espionage, if that’s what their beef with him really is. In the meantime, behold the disgraceful episode of American journalists pimping for the leviathan state’s privilege to suppress the free flow of news and their own freedom of the press. Imagine them subjecting Daniel Ellsberg to such a hazing.

via ZeroHedge News http://bit.ly/2IzN6Xi Tyler Durden

Bernie Sanders Is a Millionaire. That’s Great!

If I had a dollar for every time Bernie Sanders has inveighed against “millionaires and billionaires,” I’d be…well, still probably not as rich as Bernie Sanders, who revealed last week that he is now a millionaire. Sanders’ newfound wealth is due in part to the success of his book, Our Revolution, which earned him roughly $885,000 in 2017 after hitting number three on the New York Times best-seller list, a fact about which Sanders is justly pleased.

“I wrote a best-selling book,” he said, explaining how he ended up at the high end of America’s wealth spectrum. “If you write a best-selling book, you can be a millionaire, too.”

That’s right—and that’s how it should be.

Sanders spent years building himself and his name into a successful national brand by identifying and filling a relatively unique niche in the market for national politics. Based on the success of that brand, he then negotiated a deal with a publisher to bring a product—his book—to market. The product sold well, and Sanders, who had invested a significant amount of personal time in conceiving and producing the product, reaped the financial rewards. Now he’s better off, and I suspect that he, at least, would argue that the people who bought his book are better off too. Everyone wins.

Sanders, in other words, was acting as an entrepreneur, a person who made something new in the world, something for which there turned out to be considerable market demand. And Sanders clearly feels no shame about earning a large return on his labor as a result.

Folks, that’s capitalism. Whether he means to or not, Bernie is making an argument for the existence of rich capitalists, and for the value they bring to the world. And it’s an argument that both could and should extend beyond book writing to, say, the founders and inventors behind some of the nation’s most successful businesses, some of whom have made a lot more than $885,000. If, just for example, you start an online bookstore that eventually revolutionizes the entire retail sector, making it incredibly easy to download Sanders’ book to a convenient digital device for just a few bucks, you can be a multi-billionaire too. (Sanders, who blasted Amazon for paying low wages to its distribution center workers, probably made a significant chunk of his book earnings off of Amazon sales.)

But wait a minute—is Sanders really arguing against the existence of millionaires and billionaires? Maybe not explicitly. But by repeatedly singling them out, he was certainly implying that there was something unsavory, something vaguely illegitimate about their existence. And some of Sanders’ fellow democratic socialists have certainly suggested that the very existence of a billion-dollar personal fortune is a moral problem, or a “policy failure.” (The Sanders brand was, in many ways, first to market. But as with many popular products, his success has led to a legion of imitators.)

Maybe, then, there’s a difference between millionaires and billionaires, with the former being a little less objectionable? It’s hard to make a coherent argument that there’s a clear line at which some amount of wealth suddenly becomes unacceptable—that at some point, you’ve sold so many books, and made so much money from doing so, that it’s immoral.

For Sanders, at least, that line seems to be moving. As the folks at ThinkProgress recently noticed in a video, Sanders appears to have become less focused on millionaires and more interested in the problems with billionaires at the same time his own income increased. Perhaps that’s just a coincidence. (Sanders objected to the ThinkProgress video, suggesting it was influenced by corporate money.)

In any case, I think it’s genuinely great that Bernie Sanders is a millionaire, and that in becoming a millionaire, our nation’s most well-known democratic socialist has, however inadvertently, started defending one of the core tenets of capitalism—that if you come up with an idea for a product, make that product a reality in the world, and sell it to lots of willing buyers, it’s perfectly just and reasonable for you to earn a lot of money as a result. One can only hope that there are more best-sellers, and more millions, in Sanders’ future.

from Latest – Reason.com http://bit.ly/2UImH17
via IFTTT

YouTube Mistakenly Tags Notre Dame Fire Video As ‘9/11 Conspiracy’

Demonstrating just how poorly designed its algorithms intended to filter out ‘conspiratorial’ content can be, particularly when reacting in real time to a breaking news event, YouTube has apologized after its recently launched conspiracy-filtering feature accidentally tagged a livestream of the devastating fire at Notre Dame cathedral as a ‘9/11 conspiracy’ video.

As Bloomberg pointed out, shortly after the fire broke out, several news organizations launched  live streams of the horrific blaze on YouTube. 

Below a stream from France24 and several other channels, a box of text appeared bearing a snippet from Encyclopedia Britannica about the 9/11 attacks, indicating that the footage had been mistakenly labeled a 9/11 conspiracy video.

Notre Dame

YouTube introduced the text boxes last year, but in recent months has taken steps to suppress content it deems ‘conspiratorial’, filtering them out of search results for related topics to prevent the content from corrupting the minds of unsuspecting users.

A YouTube spokesman apologized for the error and said these labels are assigned by algorithms that occasionally make mistakes.

“We are deeply saddened by the ongoing fire at the Notre-Dame cathedral,” said a YouTube spokesman. “These panels are triggered algorithmically and our systems sometimes make the wrong call. We are disabling these panels for live streams related to the fire.”

The mistake was widely mocked on Twitter.

And as one reporter astutely reported, YouTube’s new tool meant to filter out false information is doing the exact opposite.

But sure – let’s continue to allow tech firms to decide what information is fit for public consumption. Because clearly they’re doing such a great job.

via ZeroHedge News http://bit.ly/2v3qwOY Tyler Durden

Foreigners Dump A Record $205BN In US Stocks In Past 12 Months

Led by selling from Belgium (often discussed as a proxy for China), down $10.1 bn…

…foreign central banks dumped Treasuries for the 5th consecutive month (-$157bn), and 10th of last 11 months (-$252bn)…

After the biggest selling since May 2016 last month, Saudis resumed buying USTs in February.

China and Japan were also buyers of USTs…

But away from the bond market, TIC data confirms foreigners sold US stocks for a record 10th consecutive month…

The aggregate $205 billion drop in the last 12 months is the largest liquidation of US equities on record.

Luckily, global money supply is holding US equities up for now…

via ZeroHedge News http://bit.ly/2XiMA4n Tyler Durden

How Trump Could Save Obama’s Lawyer

President Trump calls the indictment of President Obama’s White House counsel, Gregory Craig, “a really big story.”

That it is, but probably not precisely in the way that Trump means it.

Craig is a pillar of the Washington establishment. He’s a graduate of Phillips Exeter Academy; of Harvard, where he was chairman of the student government and graduated Phi Beta Kappa; and of Yale Law School, where he was in the same class as Bill and Hillary Clinton. He was a partner at two top law firms, first Williams and Connolly and then Skadden, Arps. He did stints as an aide to Senator Edward Kennedy and as director of policy planning in Madeleine Albright’s State Department. He helped defend Bill Clinton during impeachment.

So it’d be easy to read this as a story about the corruption of our liberal elites.

The more you get into it, though, and the more it looks like a story about overly zealous prosecutors and FBI agents, and laws drafted in ways that allow such prosecutors and FBI agents enormous discretion to depict routine, non-criminal activities as somehow sinister. It’s the sort of thing that Trump, in other contexts, has described as a witch hunt or a perjury trap.

“This prosecution is unprecedented and unjustified,” Craig, who has pleaded not guilty, said in a YouTube statement.

What was Craig’s supposed crime? According to the indictment, his crime wasn’t doing legal work that was paid for by an individual from Ukraine. That’s legal—American lawyers do legal work for foreign clients all the time. It wasn’t even failing to register that legal work with the U.S. government. Such registration isn’t required by law unless it crosses the line into “political activities” or “public relations counsel.” No, the supposed crime here, at least in part, is that Craig, according to the indictment, was less than completely forthright in telling his law firm colleagues and the government about his dealings with two reporters, David Sanger and David Herszenhorn, who wrote a news article about the legal work for The New York Times. Sanger is Craig’s neighbor in Washington’s Cleveland Park neighborhood.

That article appeared in the Times under the headline, “Failings Found in Trial of Ukrainian Ex-Premier.” It began, “In a report commissioned by the government of Ukraine, a team of American lawyers has concluded that important legal rights of the jailed former prime minister, Yulia V. Tymoshenko, were violated during her trial last year on charges of abusing her official power, and that she was wrongly imprisoned even before her conviction and sentencing.”

By the federal prosecutors’ bogus logic, legal work for a foreign client is legal so long as the American public doesn’t know about it. If the lawyer dares talk to a New York Times reporter about the work or provide the reporter with a copy of it, though, all of a sudden, the lawyer had better file as a “foreign agent” or else pack his toothbrush for a stay in the federal penitentiary.

The indictment claims that Craig “withheld information regarding his contacts” with the Times reporters “from a number of attorneys” at Skadden, where he was then a partner. Even if this were true, not every dispute between law firm partners about information-sharing or candor rises to the level of a federal crime.

The indictment makes reference to “an interview conducted by the Special Counsel’s Office,” but the charges came not from Robert Mueller but from the U.S. Attorney’s Office for the District of Columbia.  The press release says the case “is being investigated by the FBI’s New York Field Office,” but the charges are brought not in New York but in Washington, D.C.

The first count on which Craig is charged is Title 18, United States Code, Section 1001. That’s the same section to which Trump’s national security adviser, Michael Flynn, pleaded guilty to violating, and also to which Trump’s campaign manager, Paul Manafort, pleaded guilty to violating. It provides or a fine or up to five years in prison for anyone who “knowingly and willfully” makes any materially false statement or representation “in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the United States.” The provision also is the one that James Comey used against Martha Stewart, and the one that prosecutors used during the George W. Bush administration against Vice President Cheney’s aide Lewis “Scooter” Libby, who was pardoned by Trump.

Justice Ruth Bader Ginsburg has accurately warned of the “sweeping generality” of Section 1001, writing, “the prospect remains that an overzealous prosecutor or investigator—aware that a person has committed some suspicious acts, but unable to make a criminal case—will create a crime by surprising the suspect, asking about those acts, and receiving a false denial.”

The second count on which Craig is charged is violating the Foreign Agents Registration Act. That’s a law passed in 1938 amid anxiety about Nazi influence in America on the eve of World War II. It’s so broadly written that it could conceivably require the Times itself to register as a foreign agent of Mexican investor Carlos Slim.

These issues aren’t ones that I have only suddenly discovered following the indictment of Craig. I’ve been writing about Section 1001 since the 2004 New York Sun editorial “Martha Stewart and the Law.” In a 2017 column, I suggested that it was time for Congress or Congress to revisit the Foreign Agents Registration Act “with an eye toward narrowing its scope or even repealing it altogether.”

The whole situation is an opportunity for Trump to display some presidential leadership. He could do this by exercising his constitutional authority over the Justice Department and encouraging them to use their prosecutorial discretion to decline to prosecute this one. He could do it by using his pardon power in cases where there have been or will be convictions. Or the president can ask Congress to repeal or substantially narrow these provisions. Trump could then sign new legislation into law.

Perhaps the one redeeming feature of the Craig indictment is that, because Craig is a Democrat who served Clinton and Obama, it could allow Trump to take such corrective action while seeming not partisan or self-serving but, rather, principled.

Ira Stoll is editor of FutureOfCapitalism.com and author of JFK, Conservative.

from Latest – Reason.com http://bit.ly/2PbEpDX
via IFTTT

Greenback Gains But Banks, Bitcoin, Bullion, & Bond Yields Slide

As Stocks rise, Volumes slide…

Trade appropriately…

 

China was ugly overnight with ChiNext down once again…

 

Europe ended the day practically unchanged after a solid open for Italy and Spain…

 

US markets more mixed with Small Caps and Trannies worst. S&P, Dow, and Nasdaq all levitated back towards unch in the last hour…

 

Goldman’s results disappointed, erasing all of Friday’s gains and the rest of the banks slumped…

 

And judging by the yield curve, financials still have a long way to go…

 

After tagging an 11 handle on Friday, VIX bounced up to 13 intraday before leaking lower…

 

Treasury yields edged lower today – in a tight range – after Friday’s surge…

 

Having blow above 2.50% on Friday, 10Y Yields drifted very modestly lower today…

 

Following Friday’s slump, the dollar index rebounded notably today, seemingly bid as US markets opened…

 

And while VIX was flashing an 11 handle – FX Vol collapsed to a 5 year low…

 

Cryptos suddenly lurched lower as Bloomberg reported on algos gone wild…

 

Which sent Bitcoin down to $5000, before bouncing back…

 

Commodities drifted lower for most of the last 24 hours, rebounding after US markets opened with silver ending best – unchanged…

 

Gold remains below $1300…

 

Finally, US Macro data is at its weakest since July 2017 as Chinese macro data surges to its best since May 2018 – but we have seen this kind of sudden divergence before…

Don’t forget though – its not the economy, it’s central banks stupid!

via ZeroHedge News http://bit.ly/2UjXV25 Tyler Durden

Did Russia Just Call The End Of The OPEC Deal?

Authored by Julianne Geiger via Oilprice.com,

OPEC and heavyweight Russia may fight America for its share of the oil market, Russia’s Finance Minister Anton Siluanov told TASS on Saturday, even if it means quitting the OPEC deal and lowered oil prices.

OPEC and Russia have tapered oil production according to the agreed upon production cut deal, but the United States continues to increase its production and is picking up market share in the process – market share formerly held by OPEC members and the other non-OPEC signatories to the deal including Russia.

Any failure in the production cut deal, however, will have a negative impact on prices, and could theoretically plunge prices into the $40 per barrel territory. This, in turn, would squeeze US oil producers and hurt new investments, Siluanov said.

“(If the deal is abandoned) the oil prices will go down, then the new investments will shrink, American output will be lower, because the production cost for shale oil is higher than for traditional output.”

Siluanov’s comments came in tandem with warnings of a looming global economic recession.

“The risks of an upcoming global recession are very high,” the Finance Minister said.

“We are ready for a change in global energy prices – we have prepared the budget, the reserves, the balance of payments. We have created this kind of system.”

Russia has been the wildcard in the OPEC+ production cut deal, and has long sent mixed messages regarding their all-in-ness of the deal. And as US production increases and its market share expanding, OPEC’s clout is waning, highlighting the importance of its relationship with Russia.

OPEC’s production has fallen to levels below its commitment. The United States, however, continues to increase production, and currently sits at an all-time-high of 12.2 million bpd, according to the EIA. Before the original production cut deal was established in December 2016, US oil production sat at 8.77 million bpd—a significant increase that undoubtably puts pressure on any of the countries who have tapered production.

President Vladimir Putin on Tuesday, however, assured markets that Russia would continue its cooperation with OPEC.

“We will closely monitor the market, but we will continue cooperation with OPEC,” Putin told TASS, following it up with a more ambiguous chaser.

“If the market situation develops in such a way that reserves increase dramatically, or the US seizes Venezuelan oil and quickly increases its accessibility on the world markets, or something positive happens in Libya in terms of the political situation, and Libya enters the global market, or someone thinks that it is necessary to stop putting pressure on Iran and Iran enters the market with additional volumes, then we will have to take all this into account and make the appropriate decision.”

Under the terms of the production cut deal forged with OPEC, Russia agreed to shave 230,000 bpd to reach 11.191 million bpd.

via ZeroHedge News http://bit.ly/2Gd4YVi Tyler Durden