“Worst Market In 30 Years” – 400,000 Commodity Railcars Sit Idle Amid Industrial Recession 

“Worst Market In 30 Years” – 400,000 Commodity Railcars Sit Idle Amid Industrial Recession 

Wells Fargo, Citigroup, PNC Financial Service Group, and CIT Group accumulated hundreds of thousands of commodity hauling railcars in North America over the last decade. These banks believed railcars carrying coal, grain, and other commodities were going to be highly profitable but have recently turned out to be a major headache as many cars are now in storage because of new regulations and demand woes brought on by fluctuating commodity markets. 

David Nahass, president of Railroad Financial Corp., which provides advisory services to railroad firms, told The Wall Street Journal that “the industry is suffering, there are no two ways about it. Lease rates are down, and there’s not a source of hope about when it will start to improve.”

The Journal, citing the Association of American Railroads (AAR), said about 400,000 railcars currently sit in storage with no use at all, and many are bank-owned. 

CIT estimated railcar lease rates fell 10% to 15% in 2019 over the prior year. GATX Corp., a nonbank lessor, said specific car lease rates crashed 20% in 3Q Y/Y as an industrial recession worsened. 

Wells Fargo is the largest railcar lessor in the US, with 175,000 total cars under management. The Journal provided no details on how many railcars from the bank were sitting idle. 

The railroad crisis has hit certain types of railcars the hardest. For instance, coal shipments have plunged since 2011, which diminished the demand for coal hopper cars.

“It’s the worst market I’ve seen in my 30-plus years in the industry,” railcar appraiser Patrick Mazzanti told the Journal.

Mazzanti said new regulations have also been the reasoning behind many oil cars sitting idle, as these cars must be retrofitted with modern technology to meet new federal requirements.

Rail-leasing units at major banks are a tiny fraction of their overall balance sheets and won’t make or break the banks. 

AAR’s report last month of plunging rail traffic and intermodal container usage could be a sign that the slowing industrial economy will continue to weigh on the rail industry and force banks to idle more cars in 2020.

Transportation is a barometer of how well the real economy is doing. And it just keeps getting worse as investors hope for “green shoots” next quarter.

 


Tyler Durden

Sun, 12/29/2019 – 08:45

via ZeroHedge News https://ift.tt/357IOhJ Tyler Durden

Warning: French Culture In Danger

Warning: French Culture In Danger

Authored by Mike Shedlock via MishTalk,

France, already in the midst of a 4-week transportation strike has a new activist complaint against Sunday shopping.

Sacred Sundays

Besieged by online rivals, retailers are staying open Sunday afternoons with automated cashiers. Critics see an invasion of American-style consumerism.

Please consider Self-Checkout in France Sets Off Battle Over a Day of Rest.

French labor rules prohibit most shops from employing workers past 1 p.m. on Sundays. But as e-commerce and online giants like Amazon usher in an era of round-the-clock spending, retailers are amping up the use of automated cashiers to help them compete.

The move has caused an outcry in France, where Sundays are traditionally a rest day for workers and families. While self-checkout machines are often used alongside cashiers, labor unions say that tilting toward fully cashierless operations threatens the French way of life by encouraging American-style consumerism and automation, putting thousands of jobs at risk.

Sundays are sacred,” said Patrice Auvinet, the head of the General Confederation of Labor union in Angers, a midsize city in western France. “If they change that, it will change French society. And if automated cashiers become normalized, it will have a catastrophic impact on workers.”

At the Angers store, which employs 115 in a working-class neighborhood, Groupe Casino is having salaried employees clock out as usual at 12:30 p.m. on Sundays, then bringing in security guards, hired through another company, to keep the store open through evening. Groupe Casino had been operating 130 smaller stores in Paris and other cities using self-checkout machines to let consumers shop until midnight or even around the clock.

Chaos mounted when the protesters were joined by local members of the Yellow Vest movement, which arose last year to protest stagnating wages and declining living standards. Denouncing what they said was an erosion of workers’ living standards, they charged through the store, dumping produce in the aisles and heckling customers who were using the automatic checkout machines.

Fourth Week of Transportation Strikes

DW reports Christmas Transport Disrupted by Prolonged Strike.

Travelers in France faced frustrations on Wednesday, as the transport strike extended into its fourth week and coincided with the Christmas holiday.

Thousands of trains were cancelled or delayed, while taxis, ride-sharing services and car rental agencies were overwhelmed by demand. The underground metro in Paris was shut down, except for two lines.

At the center of the labor dispute, which sparked widespread protest and strikes lasting over two weeks, are reforms that would do away with 42 different pension schemes and replace them with a points-based system.

Additionally, the reforms seek to set 64 as the age until which people must work to earn a full pension. That is two years beyond the current official retirement age in France.

Even Paris Opera workers, who can retire at 42, joined the strike. On Tuesday, some 40 dancers performed Swan Lake to passers-by on the steps outside the opera house with banners warning: “Culture in danger.”

Warning – Culture in Danger

Indeed.

And it’s about time too.

Meanwhile, I suggest France Should Take a Lesson From Ronald Reagan: Fire the Strikers.


Tyler Durden

Sun, 12/29/2019 – 08:10

Tags

via ZeroHedge News https://ift.tt/2Zxl6Ku Tyler Durden

China On Verge Of Decoupling From US GPS Network 

China On Verge Of Decoupling From US GPS Network 

China announced Friday that it was nearing completion of its new global positioning system (GPS) network as it prepares to dominate the world’s next generation of telecommunications services and further decouple from the US’ GPS network, reported Nikkei Asian Review.

China’s Beidou network of satellites is expected to be completed at the end of 1H20 when the last two of 35-satellites will be launched.

The Beidou GPS network will be 17% larger than the current 30 satellites operated by the US-owned GPS. 

The strategic purpose of China’s new GPS is to decouple from the West’s GPS and provide service to Southeast Asia, South Asia, Africa, and Eastern Europe.

China’s rapid advances in fifth-generation wireless communications (5G) and satellite technology present a significant challenge to the US hegemony over the global telecommunications infrastructure. 

News of GPS decoupling between China and the US comes as tensions ease over trade. Still, it seems the world’s two largest economies have entered a new period of sustained competition that will result in further decoupling. 

China’s Beidou network of satellites will be able to support 70% of all Chinese smartphones. 

 Ran Chengqi, a spokesperson for the Beidou Navigation Satellite System, said the Beidou network plays a vital role in 5G, an area where Huawei Technologies is the world’s leader in development. 

“The integration of Beidou and 5G is an important sign on the path toward China’s development of information technology,” Chengqi said.

Beidou’s network coverage is expected to span across countries where the Chinese have developed Belt and Road infrastructure initiative projects. 

Beidou “has entered into a new era of global service,” he said, “benefiting ASEAN, South Asia, Eastern Europe, West Asia, and Africa in precision farming, digital construction, and smart port construction.”

Beidou and 5G will help China usher in self-driving vehicle development, a sector funded and supported by Beijing. 

The Beidou GPS network will be essential for achieving Beijing’s “Made in China 2025” plan to transition the country from the world’s factory to produce higher-value products and services.

It will also allow China to expand its global influence without relying on another country to provide satellite service. This will be crucial in times of conflict, where the US will no longer be able to shutdown down GPS to China.

The rush to decouple is occurring as a great power competition between both countries has sparked Cold War 2.0. 


Tyler Durden

Sun, 12/29/2019 – 07:35

via ZeroHedge News https://ift.tt/2Q7tzkD Tyler Durden

Germany: A “Latent Sense Of Insecurity”

Germany: A “Latent Sense Of Insecurity”

Authored by Judith Bergman via The Gatestone Institute,

“At least since the events at the Cologne cathedral square on New Year’s Eve in 2015 people apparently feel more and more unsafe,” said Oliver Malchow, the chairman of one of Germany’s two largest police unions. He was referring to the mass sexual assaults committed mainly by Arab and North African men at the Cologne cathedral square on New Year’s Eve more than four years ago. Malchow was also referring to new statistics, which show that approximately 640,000 Germans now have licenses for gas pistols — a large increase since 2014, when around 260,000 people had such a license. A gas pistol fires loud blanks or tear gas cartridges and is only potentially lethal at extremely close range.

The new statistics, according to Malchow, showed a “latent sense of insecurity” in the population. The number of real firearms owned privately also reportedly increased in 2018 — by 27,000 over the previous year. In Germany now, 5.4 million firearms are privately owned, most of them rifles.

recent annual poll, conducted in September, confirms Malchow’s estimate: Every year since 1992, R+V, Germany’s largest insurance firm, has been asking Germans what they fear most. “This year, for the first time,” according to a report in Deutsche Welle, “a majority said they were most afraid that the country would be unable to deal with the aftermath of the migrant influx of 2015”. Fifty-six percent of those polled said they were scared that the country would not be able to deal with the number of migrants. This September marked exactly four years since Chancellor Angela Merkel opened Germany’s borders and allowed in almost a million migrants. However, Ulrich Wagner, professor of social psychology at the University of Marburg told Deutsche Welle:

“It’s really got more to do with the fact that politicians and media discuss this issue a great deal — which triggers fear… For example, in the latest study, fear of terrorism has clearly gone down. We simply don’t discuss this issue as much as we used to, and that means that people feel safer.”

What the professor appears to imply is that you can solve a crucial societal issue, not by debating its ramifications and publicly seeking to find solutions to it, but by not talking about it, thereby lulling the public into a false sense of security by pretending that the problem does not exist.

The terror threat in Germany has not, in fact, disappeared. Just this March, 11 men were arrested on suspicion of planning a terrorist attack in Germany. Police told the media that the goal of the attack had been “to kill as many infidels as possible” by using firearms and vehicles. According to police, the Islamist group had already organized the rental of a large vehicle: money had been raised and weapons dealers had been approached. “The terror threat in Germany remains high,” the media reported in April. “According to security authorities, there is currently no concrete risk of an attack. But officials are prepared for any development”.

German media also reported in April that German authorities have prevented 13 terrorist attacks in Germany since 2010 and that, according to the Federal Criminal Police Office, all of them were “linked to Islamic extremism”. As recently as October, a Syrian man plowed a stolen truck into the back of a line of traffic, ramming eight cars together and injuring seven people.

Professor Wagner does have a point, however — people do talk a lot less publicly about crucial societal issues: As previously reported by Gatestone Institute, a May 2019 survey, conducted by Institut für Demoskopie Allensbach for the newspaper Frankfurter Allgemeine Zeitung, showed that discussing certain issues in Germany has become taboo. While the survey did not specifically mention terrorism, it concluded that “The refugee issue is one of the most sensitive topics for the vast majority of respondents, followed by statements of opinion on Muslims and Islam”. As an example, 71% of Germans say, according to the survey, that one can only comment on the refugee issue “with caution”.

Also, according to the annual poll on what Germans fear most, mentioned above, the level of fear in the former East Germany is more than 10% higher than in the West. According to Deutsche Welle:

“The paradox is that fewer migrants and fewer refugees actually live in the east than in the west, and yet the levels of fear are higher,” says psychologist Ulrich Wagner. He explains that people who have had personal interactions with foreigners are less likely to believe unfounded horror stories about criminal refugees. “And in the east of Germany, people simply have fewer opportunities to meet refugees and debunk those myths.”

As for that hypothesis, it may be more likely, not that fear is higher, but that people in the former East Germany are less afraid of telling pollsters how they really feel. As the survey on German self-censorship has shown, 57 % of Germans say that “increasingly being told what to say and how to behave” is getting on their nerves. Germans from the formerly communist East complain more about this than the average German, as they have “fresh historical memories of regulation and constriction”.

August Hanning, a former president of Germany’s Federal Intelligence Service, recently confirmed that the “latent sense of insecurity” is not due to public fear-mongering. During a visit to the UK, Hanning said that Chancellor Angela Merkel had endangered security in Germany with her historic decision to allow virtually unrestricted immigration into the country by creating a “security crisis” for Germany and the other member states of the European Union.

“We have seen the consequences of this decision in terms of German public opinion and internal security – we experience problems every day.

“We have criminals, terrorist suspects and people who use multiple identities…

“While things are tighter today, we still have 300,000 people in Germany of whose identities we cannot be sure. That’s a massive security risk.

“Moreover, that decision led to the rise of the extremist right, and that’s another security risk, too…”

While Germans are afraid to speak publicly about migrants, refugees and Islam, a recent study conducted by Bertelsmann Stiftung showed that roughly every second German considers Islam to be a threat. Professor Wagner’s theory above, that not talking about certain issues makes fears go away, is, apparently, false. According to the study:

“Overall, about half of those surveyed perceive Islam as a threat. This proportion is higher in eastern Germany, at 57 percent, than in western Germany (50 percent). These findings, recorded in spring 2019, are largely similar to the results of previous Religion Monitor surveys taken in 2013, 2015, and 2017.”

According to Yasemin El-Menouar, Bertelsmann Stiftung’s expert on religion, according to the organization’s website, “Evidently, many people nowadays view Islam more as a political ideology and less as a religion and therefore not deserving of religious tolerance.”


Tyler Durden

Sun, 12/29/2019 – 07:00

via ZeroHedge News https://ift.tt/2EZdozv Tyler Durden

Meet the Grandmothers Who Rule Kenya’s Legal Drug Markets

At Soko ya Nadhif market in Garissa, Kenya, the ones who come to buy the drugs are men. They arrive early in the morning, sometimes before dawn, waiting in the hot dark air for a good deal. New white Land Cruisers pull into the market, kicking up clouds of red dust behind them. The ones who rush to offload the cargo are men, too. They toss heavy bags of leaves over their shoulders before sorting them into sections: Sareye, Khadija, Fatuma. Each bag is marked with a woman’s name. Because although almost everyone who comes to Soko ya Nadhif market is a man, the ones who sell the drugs are women.

Sareye Budul Shafat, 52, is a soft-spoken mother of 10 who favors neon technicolor hijabs. While she calls herself a businesswoman, her gold jewelry and poker face hint at something more illicit.

Shafat is the founder of the Al-Amin Women’s Group, a collective organization of 10 women—mostly single mothers and grandmothers in their 40s, 50s, and 60s—who dominate Garissa’s khat industry. Attacks on the industry come from all sides, so women in the khat business are evasive about how much money they make. Shafat claims to bring in 20,000 Kenyan shillings (about $193) per month. But her shoes, her accessories, and the size of her house, as well as the number of men and women who call her “boss,” suggest much higher earnings.

Khat—a stimulant leaf from the Catha edulis plant that is criminalized in the United States and most of Europe but wildly popular in East Africa—has somehow become women’s work. Khat leaves are usually chewed, sometimes with bubble gum or peanuts to mask the herbal taste. Although the vast majority of khat users are men, women play an unmistakably dominant role in its production and sale. The Al-Amin Women’s Group dominates the Garissa market, but women’s influence in the khat (also called miraa) industry has deep roots throughout the region. In Somaliland, a self-declared breakaway state in the Horn of Africa, an estimated 72 percent of khat vendors are women. In Ethiopia, one of the country’s richest people, Suhura Ismail, turned a roadside miraa stand into an international business empire with its own fleet of charter planes that transport the drug between Jijiga, a city in the Somali Regional State of eastern Ethiopia, and Somalia itself. (Like a boss, Suhura named the airline after herself.)

In Kenya, the economic power of khat is so huge that in 2016, when Somalia banned imports of the drug for a single week, it cost Kenyan farmers millions of dollars. Today, the khat trade brings the latter country an estimated $400,000 every day.

Shafat got into the business for the same reasons any other good entrepreneur does: instinct and need. In 1997, her husband, a former truck driver, was left unable to work by advancing glaucoma, the leading cause of irreversible blindness worldwide. Desperate to support their children, Shafat tried selling secondhand clothes. But business wasn’t good, and Shafat couldn’t even make enough to pay back her family’s 5,000 shillings ($48) in debt.

“I might stay in the [clothes] emporium and not sell anything for three days,” Shafat recalled. “I decided I would rather have a quick loss or profit than wait three, five, seven days for nothing.”

During the months she languished at the clothes market, Shafat noticed that some women would regularly come in with no husbands but an endless supply of money to spend. She decided to ask about the secret to their independent success. The industry she discovered would change her life.

Criminalization

Khat is an enigma: People can’t seem to agree whether it’s dangerous or not. It has been likened to everything from coffee to cocaine. In Hong Kong, the leaf is regarded as so risky that traffickers risk a fine of up to HK$5 million ($623,411 in U.S. dollars) and life imprisonment. Even the Netherlands, famous for its permissive drug use policies, banned khat in 2012. But in Canada, where the substance is illegal, a young woman who brought 34 kilograms of khat into the country in 2012 was able to successfully appeal her arrest on the grounds that the drug is not harmful.

“This is an important ruling, because it recognized that while khat is illegal in Canada, there is no empirical evidence that this drug is harmful to the individual or the community at large,” defense lawyer Mark Halfyard, who argued the appeal, told Toronto’s The Star at the time. “There is a body of scientific literature that suggests khat is significantly less harmful on an individual level and in terms of the social costs than alcohol, tobacco, or marijuana.”

But prohibition has addictive qualities, and the war on miraa is self-reinforcing. In his 2007 book The Khat Controversy, author David Anderson recounts the story of how a businesswoman named Yasmin moved from Somalia to Kenya in the 1970s and became one of the first people to export the drug to the United Kingdom. After the 2012 Dutch ban, the British government announced its own plans to criminalize the leaf. That move came despite a 2013 report from the British Advisory Council on the Misuse of Drugs that found “insufficient evidence” that khat caused health problems and “no evidence” that the leaf was linked to serious or organized crime.

“On the basis of the available evidence, the overwhelming majority of Council members consider that khat should not be controlled under the Misuse of Drugs Act 1971,” the report concluded. “Although there may be a correlation or association between the use of khat and various negative social indicators, it is not possible to conclude that there is any causal link.”

Opponents of the ban argued that, since khat was almost exclusively popular with East African and Yemeni immigrant communities, the criminalization of khat would be, in effect, the criminalization of specific ethnic minorities. But members of the British-Somali diaspora had mixed feelings about the ban: Some supported it, saying a prohibition would promote health and cultural integration.

“Khat has been slowly killing our community, but no one has paid any attention,” a U.K.-based former khat user named Abukar Awali told The Christian Science Monitor. “It’s no exaggeration to say it is preventing us from integrating. When you chew, you don’t work or meet anyone apart from Somalis.” Awali later traveled to East Africa to campaign for the British ban to be adopted elsewhere.

But the comparisons between khat and clearly legal substances such as alcohol, tobacco, and coffee were hard to ignore. One survey of British Somalis in London found that 90 percent would prefer their children use khat than alcohol, and 77 percent would prefer they use khat than cigarettes. There were also concerns that the British ban would be an economic blow to East Africa: In 2013, a group of Kenyan lawmakers led by Florence Kajuju, a member of the Parliament of Kenya, urged the British government not to “condemn” the Kenyan farmers and exporters who relied on the trade.

Prohibition

Nevertheless, it became a criminal offense to buy, sell, or chew khat in the U.K. on June 24, 2014. The loss of tax revenue has been estimated at 150 million pounds ($182 million) over 10 years, on top of the blow to jobs and businesses.

The British decision had an immediate impact on Kenya’s khat export market. Before the ban, an estimated 20 tons of the drug arrived at London’s Heathrow airport each day, most of it from Kenya. Khat had been a huge boost to that country’s economy. In 2010 alone, it was responsible for 12.7 million pounds ($15.4 million) of remittances to Kenya from the United Kingdom. For the people and communities that had relied on the British market, such as small towns in the picturesque highlands near Meru, the sixth-largest city in Kenya, the effect of the ban was devastating. One exporter told The Guardian that his monthly income plummeted from 2,100 pounds per month to 250.

The creeping criminalization of khat has become a political issue on the African continent as well. “What happens in the Somali diaspora does cycle back to East Africa,” says Neil Carrier, a lecturer in social anthropology at the University of Bristol and expert in the Kenyan khat industry. “Those debates weren’t isolated to the U.K.” In Uganda, efforts to criminalize khat—known there as mairungi—have been a source of heated debate since 2014. In Kenya, criminalization campaigns have largely happened at the local level. Lamu, a town northeast of Mombasa, for instance, has been an epicenter of attempts to ban the sale of the leaf since 2001. In May 2019, Nyandarua County Governor Francis Kimemia announced plans to prohibit sale and consumption in his county.

Drug prohibition tends to hit women who work in the industry harder than it hits men. A report from the United Nations Office on Drugs and Crime found that, globally, the proportion of women who are in prison for drug-related crimes is higher than the proportion of men—possibly because it is easier for police to target workers in lower-level stages of the drug industry, such as cultivation, who are more likely to be female. It may also be that women in the drug industry are less able to afford fines or bail.

Prohibition’s particularly insidious effect on women is evident in Kenya, too. Although khat is legal right now, a staggering 64 percent of women in the country who are currently in prison are there for brewing and selling alcohol without a license. So when local politicians call for banning khat, women in the industry worry.

“We are very concerned about prohibition,” says Isabela Gacheri, 52, who grows khat on a quarter-acre farm near Meru. The plant is so important to the economic survival of the region that even schools and churches there support themselves on the proceeds from small gardens. “They say miraa is a drug, but you cannot compare miraa to a drug like marijuana or cigarettes. It’s more like coffee or tea,” she says.

Gacheri theorizes that calls to ban khat are a specific attack on the women, like her, who support their families with the leaf. “They are jealous of the money we are getting,” she says. “They have a problem with women in the business. It scares them.”

Condemnation

Shafat, the founder of the Al-Amin Women’s Group, lives in a house that is furnished a lot like your grandmother’s house—if your grandmother were a Kenyan-Somali drug tycoon. The throw pillows are soft, the color palette is warm, and the cardamom tea is mouth-puckeringly sweet.

Shafat isn’t scary at all. But she has some scary stories. 

“We always hear threats from al-Shabab,” she said, referring to the Al Qaeda–linked terrorist group that prohibits khat under its own harsh interpretation of Sharia law. “The day before yesterday, we had to run away from the market because we heard a rumor they were going to attack.” (In 2018, five people were killed and another 10 were wounded when al-Shabab attacked a khat market 55 miles north of Mogadishu.)

Two days before the rumored attack at the Garissa market, Shafat says, one of her distributors, a middle-aged man named Abdi Hirig, was abducted by the terrorist group in Somalia. “My phone rang, and they said: ‘Don’t bother sending his miraa today. He has been taken.'”

In some ways, those terrorist threats are less worrying to women in the khat industry than are standard religious objections to the drug—and to the subverted gender roles that the women who sell it represent. Many influential Islamic leaders regard the leaf as makruh (detested or discouraged) or haram (forbidden). That stigma trickles down to women in the industry. In Eastleigh, Nairobi’s predominantly Somali neighborhood, there is a rumor that when a woman who had made her fortune in the khat business tried to make a charitable donation to the local mosque, she was turned away.

“Women involved in crime are more stigmatized than men in society,” says Heidi Grundetjern, an assistant professor of sociology and criminology at Villanova University who specializes in women’s roles in drug markets. “We often say that they are doubly deviant: Not only are they breaking the law and receive stigma related to that, but they also break with society’s normative expectations of what it means to be a woman.” In Kenya, that often means that miraa money is considered “dirty,” and so are the women who support their families with it.

“Islamically, [the drug] is haram,” said Halima Haji, 53, a mother of six and anti-khat activist in Garissa. “The women who work in that business don’t even care that they’re spoiling other people’s kids, so long as they get the money. Nobody likes them.” This year, Haji successfully campaigned to get a popular Garissa khat garden called “The Shade” shut down. The garden had previously hosted roughly 50 customers a day in a beer garden–like atmosphere.

To an extent, Haji is correct to assume that some of the women in the khat industry don’t worry about the drug’s effect on kids. “Miraa doesn’t spoil anything,” says Shafat, scoffing at the implication. “I’ve got five boys and five girls, and none of them chew. It’s all about how you raise them. Miraa doesn’t spoil people—people spoil themselves.” Shafat says she is proud of the way khat has enabled her to provide for her family, including paying for a university education for all of her kids, without needing to rely on her disabled husband.

“I hail single mothers who work in this business and take care of their children,” she says. “We do everything. We pay the kids’ school fees. We cook their food. We do everything.”

Regional politics also pose a threat. In 2019, as disputes between Kenya and Somalia over their maritime boundary escalated, the Kenyan khat export industry took a hit. According to a statement from Kimathi Munjuri, the spokesman for the Nyambene Miraa Traders Association, khat flights from Kenya to Somalia dropped to a low of four per day from the usual 20. He added that new Kenyan tax laws have provoked a shift in the Somali market toward khat exporters in Ethiopia.

Competition

In addition to competition from Ethiopian farmers and exporters, in recent years muguka—a different variety of the Catha edulis plant—has emerged to challenge khat’s formerly unquestioned dominance as Kenya’s social drug of choice. Muguka is cheap, strong, and trendy—so trendy, in fact, that the mostly middle-aged and senior women who sell miraa say they can’t diversify into muguka. People just won’t buy it from them.

“It’s not a job for elderly women,” says Khadija Dabar, 52, another mother of 10 and the current chairwoman of the Al-Amin Women’s Group. “Muguka has taken Garissa by storm, but it’s a job for youth.”

But Shafat, the businesswoman who built an empire from nothing, refuses to fail. She has already launched a new collective of female entrepreneurs, called the Upendo Women’s Group. This time, they specialize in soap, bleach, and disinfectant. Every month, Shafat reinvests 10,000 Kenyan shillings ($96) of her khat profits into the soap business—just in case.

“You know what women are like,” she says. “Even if miraa goes down, we won’t.”


Additional reporting was provided by NASIBO KABALE, a reporter with the Nation Media Group, the biggest media house in East and Central Africa. This article was reported in partnership with the Fuller Project.

from Latest – Reason.com https://ift.tt/2u3OPPL
via IFTTT

Meet the Grandmothers Who Rule Kenya’s Legal Drug Markets

At Soko ya Nadhif market in Garissa, Kenya, the ones who come to buy the drugs are men. They arrive early in the morning, sometimes before dawn, waiting in the hot dark air for a good deal. New white Land Cruisers pull into the market, kicking up clouds of red dust behind them. The ones who rush to offload the cargo are men, too. They toss heavy bags of leaves over their shoulders before sorting them into sections: Sareye, Khadija, Fatuma. Each bag is marked with a woman’s name. Because although almost everyone who comes to Soko ya Nadhif market is a man, the ones who sell the drugs are women.

Sareye Budul Shafat, 52, is a soft-spoken mother of 10 who favors neon technicolor hijabs. While she calls herself a businesswoman, her gold jewelry and poker face hint at something more illicit.

Shafat is the founder of the Al-Amin Women’s Group, a collective organization of 10 women—mostly single mothers and grandmothers in their 40s, 50s, and 60s—who dominate Garissa’s khat industry. Attacks on the industry come from all sides, so women in the khat business are evasive about how much money they make. Shafat claims to bring in 20,000 Kenyan shillings (about $193) per month. But her shoes, her accessories, and the size of her house, as well as the number of men and women who call her “boss,” suggest much higher earnings.

Khat—a stimulant leaf from the Catha edulis plant that is criminalized in the United States and most of Europe but wildly popular in East Africa—has somehow become women’s work. Khat leaves are usually chewed, sometimes with bubble gum or peanuts to mask the herbal taste. Although the vast majority of khat users are men, women play an unmistakably dominant role in its production and sale. The Al-Amin Women’s Group dominates the Garissa market, but women’s influence in the khat (also called miraa) industry has deep roots throughout the region. In Somaliland, a self-declared breakaway state in the Horn of Africa, an estimated 72 percent of khat vendors are women. In Ethiopia, one of the country’s richest people, Suhura Ismail, turned a roadside miraa stand into an international business empire with its own fleet of charter planes that transport the drug between Jijiga, a city in the Somali Regional State of eastern Ethiopia, and Somalia itself. (Like a boss, Suhura named the airline after herself.)

In Kenya, the economic power of khat is so huge that in 2016, when Somalia banned imports of the drug for a single week, it cost Kenyan farmers millions of dollars. Today, the khat trade brings the latter country an estimated $400,000 every day.

Shafat got into the business for the same reasons any other good entrepreneur does: instinct and need. In 1997, her husband, a former truck driver, was left unable to work by advancing glaucoma, the leading cause of irreversible blindness worldwide. Desperate to support their children, Shafat tried selling secondhand clothes. But business wasn’t good, and Shafat couldn’t even make enough to pay back her family’s 5,000 shillings ($48) in debt.

“I might stay in the [clothes] emporium and not sell anything for three days,” Shafat recalled. “I decided I would rather have a quick loss or profit than wait three, five, seven days for nothing.”

During the months she languished at the clothes market, Shafat noticed that some women would regularly come in with no husbands but an endless supply of money to spend. She decided to ask about the secret to their independent success. The industry she discovered would change her life.

Criminalization

Khat is an enigma: People can’t seem to agree whether it’s dangerous or not. It has been likened to everything from coffee to cocaine. In Hong Kong, the leaf is regarded as so risky that traffickers risk a fine of up to HK$5 million ($623,411 in U.S. dollars) and life imprisonment. Even the Netherlands, famous for its permissive drug use policies, banned khat in 2012. But in Canada, where the substance is illegal, a young woman who brought 34 kilograms of khat into the country in 2012 was able to successfully appeal her arrest on the grounds that the drug is not harmful.

“This is an important ruling, because it recognized that while khat is illegal in Canada, there is no empirical evidence that this drug is harmful to the individual or the community at large,” defense lawyer Mark Halfyard, who argued the appeal, told Toronto’s The Star at the time. “There is a body of scientific literature that suggests khat is significantly less harmful on an individual level and in terms of the social costs than alcohol, tobacco, or marijuana.”

But prohibition has addictive qualities, and the war on miraa is self-reinforcing. In his 2007 book The Khat Controversy, author David Anderson recounts the story of how a businesswoman named Yasmin moved from Somalia to Kenya in the 1970s and became one of the first people to export the drug to the United Kingdom. After the 2012 Dutch ban, the British government announced its own plans to criminalize the leaf. That move came despite a 2013 report from the British Advisory Council on the Misuse of Drugs that found “insufficient evidence” that khat caused health problems and “no evidence” that the leaf was linked to serious or organized crime.

“On the basis of the available evidence, the overwhelming majority of Council members consider that khat should not be controlled under the Misuse of Drugs Act 1971,” the report concluded. “Although there may be a correlation or association between the use of khat and various negative social indicators, it is not possible to conclude that there is any causal link.”

Opponents of the ban argued that, since khat was almost exclusively popular with East African and Yemeni immigrant communities, the criminalization of khat would be, in effect, the criminalization of specific ethnic minorities. But members of the British-Somali diaspora had mixed feelings about the ban: Some supported it, saying a prohibition would promote health and cultural integration.

“Khat has been slowly killing our community, but no one has paid any attention,” a U.K.-based former khat user named Abukar Awali told The Christian Science Monitor. “It’s no exaggeration to say it is preventing us from integrating. When you chew, you don’t work or meet anyone apart from Somalis.” Awali later traveled to East Africa to campaign for the British ban to be adopted elsewhere.

But the comparisons between khat and clearly legal substances such as alcohol, tobacco, and coffee were hard to ignore. One survey of British Somalis in London found that 90 percent would prefer their children use khat than alcohol, and 77 percent would prefer they use khat than cigarettes. There were also concerns that the British ban would be an economic blow to East Africa: In 2013, a group of Kenyan lawmakers led by Florence Kajuju, a member of the Parliament of Kenya, urged the British government not to “condemn” the Kenyan farmers and exporters who relied on the trade.

Prohibition

Nevertheless, it became a criminal offense to buy, sell, or chew khat in the U.K. on June 24, 2014. The loss of tax revenue has been estimated at 150 million pounds ($182 million) over 10 years, on top of the blow to jobs and businesses.

The British decision had an immediate impact on Kenya’s khat export market. Before the ban, an estimated 20 tons of the drug arrived at London’s Heathrow airport each day, most of it from Kenya. Khat had been a huge boost to that country’s economy. In 2010 alone, it was responsible for 12.7 million pounds ($15.4 million) of remittances to Kenya from the United Kingdom. For the people and communities that had relied on the British market, such as small towns in the picturesque highlands near Meru, the sixth-largest city in Kenya, the effect of the ban was devastating. One exporter told The Guardian that his monthly income plummeted from 2,100 pounds per month to 250.

The creeping criminalization of khat has become a political issue on the African continent as well. “What happens in the Somali diaspora does cycle back to East Africa,” says Neil Carrier, a lecturer in social anthropology at the University of Bristol and expert in the Kenyan khat industry. “Those debates weren’t isolated to the U.K.” In Uganda, efforts to criminalize khat—known there as mairungi—have been a source of heated debate since 2014. In Kenya, criminalization campaigns have largely happened at the local level. Lamu, a town northeast of Mombasa, for instance, has been an epicenter of attempts to ban the sale of the leaf since 2001. In May 2019, Nyandarua County Governor Francis Kimemia announced plans to prohibit sale and consumption in his county.

Drug prohibition tends to hit women who work in the industry harder than it hits men. A report from the United Nations Office on Drugs and Crime found that, globally, the proportion of women who are in prison for drug-related crimes is higher than the proportion of men—possibly because it is easier for police to target workers in lower-level stages of the drug industry, such as cultivation, who are more likely to be female. It may also be that women in the drug industry are less able to afford fines or bail.

Prohibition’s particularly insidious effect on women is evident in Kenya, too. Although khat is legal right now, a staggering 64 percent of women in the country who are currently in prison are there for brewing and selling alcohol without a license. So when local politicians call for banning khat, women in the industry worry.

“We are very concerned about prohibition,” says Isabela Gacheri, 52, who grows khat on a quarter-acre farm near Meru. The plant is so important to the economic survival of the region that even schools and churches there support themselves on the proceeds from small gardens. “They say miraa is a drug, but you cannot compare miraa to a drug like marijuana or cigarettes. It’s more like coffee or tea,” she says.

Gacheri theorizes that calls to ban khat are a specific attack on the women, like her, who support their families with the leaf. “They are jealous of the money we are getting,” she says. “They have a problem with women in the business. It scares them.”

Condemnation

Shafat, the founder of the Al-Amin Women’s Group, lives in a house that is furnished a lot like your grandmother’s house—if your grandmother were a Kenyan-Somali drug tycoon. The throw pillows are soft, the color palette is warm, and the cardamom tea is mouth-puckeringly sweet.

Shafat isn’t scary at all. But she has some scary stories. 

“We always hear threats from al-Shabab,” she said, referring to the Al Qaeda–linked terrorist group that prohibits khat under its own harsh interpretation of Sharia law. “The day before yesterday, we had to run away from the market because we heard a rumor they were going to attack.” (In 2018, five people were killed and another 10 were wounded when al-Shabab attacked a khat market 55 miles north of Mogadishu.)

Two days before the rumored attack at the Garissa market, Shafat says, one of her distributors, a middle-aged man named Abdi Hirig, was abducted by the terrorist group in Somalia. “My phone rang, and they said: ‘Don’t bother sending his miraa today. He has been taken.'”

In some ways, those terrorist threats are less worrying to women in the khat industry than are standard religious objections to the drug—and to the subverted gender roles that the women who sell it represent. Many influential Islamic leaders regard the leaf as makruh (detested or discouraged) or haram (forbidden). That stigma trickles down to women in the industry. In Eastleigh, Nairobi’s predominantly Somali neighborhood, there is a rumor that when a woman who had made her fortune in the khat business tried to make a charitable donation to the local mosque, she was turned away.

“Women involved in crime are more stigmatized than men in society,” says Heidi Grundetjern, an assistant professor of sociology and criminology at Villanova University who specializes in women’s roles in drug markets. “We often say that they are doubly deviant: Not only are they breaking the law and receive stigma related to that, but they also break with society’s normative expectations of what it means to be a woman.” In Kenya, that often means that miraa money is considered “dirty,” and so are the women who support their families with it.

“Islamically, [the drug] is haram,” said Halima Haji, 53, a mother of six and anti-khat activist in Garissa. “The women who work in that business don’t even care that they’re spoiling other people’s kids, so long as they get the money. Nobody likes them.” This year, Haji successfully campaigned to get a popular Garissa khat garden called “The Shade” shut down. The garden had previously hosted roughly 50 customers a day in a beer garden–like atmosphere.

To an extent, Haji is correct to assume that some of the women in the khat industry don’t worry about the drug’s effect on kids. “Miraa doesn’t spoil anything,” says Shafat, scoffing at the implication. “I’ve got five boys and five girls, and none of them chew. It’s all about how you raise them. Miraa doesn’t spoil people—people spoil themselves.” Shafat says she is proud of the way khat has enabled her to provide for her family, including paying for a university education for all of her kids, without needing to rely on her disabled husband.

“I hail single mothers who work in this business and take care of their children,” she says. “We do everything. We pay the kids’ school fees. We cook their food. We do everything.”

Regional politics also pose a threat. In 2019, as disputes between Kenya and Somalia over their maritime boundary escalated, the Kenyan khat export industry took a hit. According to a statement from Kimathi Munjuri, the spokesman for the Nyambene Miraa Traders Association, khat flights from Kenya to Somalia dropped to a low of four per day from the usual 20. He added that new Kenyan tax laws have provoked a shift in the Somali market toward khat exporters in Ethiopia.

Competition

In addition to competition from Ethiopian farmers and exporters, in recent years muguka—a different variety of the Catha edulis plant—has emerged to challenge khat’s formerly unquestioned dominance as Kenya’s social drug of choice. Muguka is cheap, strong, and trendy—so trendy, in fact, that the mostly middle-aged and senior women who sell miraa say they can’t diversify into muguka. People just won’t buy it from them.

“It’s not a job for elderly women,” says Khadija Dabar, 52, another mother of 10 and the current chairwoman of the Al-Amin Women’s Group. “Muguka has taken Garissa by storm, but it’s a job for youth.”

But Shafat, the businesswoman who built an empire from nothing, refuses to fail. She has already launched a new collective of female entrepreneurs, called the Upendo Women’s Group. This time, they specialize in soap, bleach, and disinfectant. Every month, Shafat reinvests 10,000 Kenyan shillings ($96) of her khat profits into the soap business—just in case.

“You know what women are like,” she says. “Even if miraa goes down, we won’t.”


Additional reporting was provided by NASIBO KABALE, a reporter with the Nation Media Group, the biggest media house in East and Central Africa. This article was reported in partnership with the Fuller Project.

from Latest – Reason.com https://ift.tt/2u3OPPL
via IFTTT

‘Mass Stabbing’ At Jewish Hannukah Celebration In New York, At Least 5 Injured

‘Mass Stabbing’ At Jewish Hannukah Celebration In New York, At Least 5 Injured

At least 5 people have been stabbed after a black male entered Rabbi Rottenburg’s Shul, located in the Forshay neighborhood in Monsey, New York, and pulled out a machete.

As VosIzNeias.com reports, the alleged assailant pulled off the cover and stabbed at least 3 people. One of the victims was stabbed in the chest.

The perpetrator then ran out and escaped in a vehicle. His plates were spotted before he left, and the police are currently searching for him.

Videos of the stabbing attack began disseminating on social media.

Motti Seligson, director of media for Chabad.org, told The Jerusalem Post that the congregants, Hassidim, were gathered for a Hanukkah party and confirmed the preliminary details of the event.

The Orthodox Jewish Public Affairs Council said five people, all Hasidic, were transported to local hospitals with stab wounds. 

“We are closely monitoring the reports of multiple people stabbed at a synagogue in Monsey, NY (Rockland County),” a representative of the New York City Police Department Counterterrorism Bureau tweeted.

Hatzalah emergency response team is on scene and victims have been transferred to the hospital.

As JPost.com notes, this is the second stabbing attack in Monsey in the last two months. In November, a man jumped out of his car in stabbed a father on his way to synagogue, gauging his eye. In the last week, a spate of antisemitic crimes has swept the city.

 

 

 


Tyler Durden

Sat, 12/28/2019 – 23:27

via ZeroHedge News https://ift.tt/2SBpGGi Tyler Durden

These Are The 10 Worst States For Millennials

These Are The 10 Worst States For Millennials

Even the most curmudgeonly boomer would probably agree that the millennial generation is struggling. Though they have no great wars to fight (in the West, wars are now fought by volunteers), millennials are facing enormous loads of student debt, stagnant wages, and an entrenched sense that the future looks bleak. Whatever skills they have learned will likely be rendered unmarketable thanks to AI, and anybody who isn’t programming the machines and computers who will run our future society should fear them.

As a group, those aged 23 to 38 earn less and have fewer assets than their parents. But across the US, there’s a pretty wide variance in living conditions, and for millennials who need to watch every penny, certain states make more hospitable homes than others.

In a recent research project, Zippia.com determined the 10 worst states/territories for millennials. They are:

  • District of Columbia
  • Georgia
  • New York
  • Florida
  • North Carolina
  • California
  • South Carolina
  • Alabama
  • Louisiana
  • Mississippi

As a region, the south is the most heavily represented on this list, accompanied by states with expensive urban enclaves where young people flock seemingly to live in penury while they follow their dreams chasing those entertainment and media jobs that will seemingly never provide a realistic paycheck (the share of millennials in their 20s and even into their 30s who depend on financial support from parents has never been higher).

To arrive at its rankings, the researchers assigned number values for each of four categories: millennial unemployment rate, average student loan debt load, millennial home ownership and the percentage of millennials living in poverty.

Which brings us to No. 1…

Washington DC:

Unemployment: 6%

Home Ownership: 18.38%

Poverty Rate: 25%

Student Loan Debt: $60,039

A city known for its ridiculous housing prices, one in four millennials in our nation’s capital live in poverty. They also have the highest average student loan debt in the nation.

Georgia:

Unemployment: 8%

Home Ownership: 31.61%

Poverty Rate: 20%

Student Loan Debt: $37,284

Though housing is relatively affordable in Georgia, and the student-debt burden is much lower than Washington DC, roughly one in five millennial Georgians live in poverty, which is enough to secure the No. 2 spot on this list.

New York

Unemployment: 7%

Home Ownership: 24%

Poverty Rate: 19%

Student Loan Debt: $38,734

Low home ownership rates coupled with brutally high rents make New York a no-brainer for the No. 3 spot. Millennials also face high poverty rates and burdensome student debt loads.

Florida

Unemployment: 7%

Home Ownership: 29%

Poverty Rate: 19%

Student Loan Debt: $35,709

The state best known as a sunny place for shady people, one in five of the state’s millennials live in poverty. Setting the numbers aside, the proximity to Florida Man can’t be easily quantified, but it definitely sucks.

North Carolina

Unemployment: 7%

Home Ownership: 32%

Poverty Rate: 20%

Student Loan Debt: $36,246

The issues with North Carolina is low home ownership and high unemployment, coupled with a high student debt burden.

California

Unemployment: 7%

Home Ownership: 23%

Poverty Rate: 17%

Student Loan Debt $34,449

Piss-poor policymaking in Sacramento has saddled Californians with expensive housing prices (because endless environmental regs make building so expensive), while nature is punishing the state with wildfires and a brutal drought that finally ended this year. Homeownership is simply out of reach for all but the wealthiest tech industry drones.

South Carolina

Unemployment: 7%

Home Ownership: 36%

Poverty Rate: 22%

Student Loan Debt: $37,249

Alabama

Unemployment: 8%

Home Ownership: 37%

Poverty Rate: 23%

Student Loan Debt: $34,861

Alabama is very similar to the other southern states on this list: High unemployment and poverty.

Louisiana

Unemployment: 8%

Home Ownership: 37%

Poverty Rate: 26%

Student Loan Debt: $33,860

Things aren’t easy for millennials down by the bayou. Like Alabama before it, young people face high rates of poverty and unemployment. But at least they can drink their troubles away in the Big Easy.

Mississippi

Hardly a surprise. One of the only Southern states that’s entirely devoid of a large urban commercial center (the largest city is the capital, Jackson, and it’s the only municipality in the state with a population of over 100,000 people), Mississippi is known for grinding rural poverty in communities where jobs, solid housing and even basic services like supermarkets can be hard to come by.

If your state isn’t listed above, you can see where it fell on the list here.


Tyler Durden

Sat, 12/28/2019 – 23:00

via ZeroHedge News https://ift.tt/2QxJ7gi Tyler Durden