US Lays Out 12 Demands For A New Nuclear Deal With Iran

The Trump administration escalated its demands on Iran on Monday while giving Tehran a possible loophole if it wants the US to return to the nuclear deal which President Trump unilaterally cancelled last month, laying out a list of demands that Iran has to satisfy for the deal to be restored, including a stop to all uranium enrichment and halt to Iran’s support for militant groups in the region.

The administration’s demands were outlined in a speech by Secretary of State Mike Pompeo, which for the first time spelled out all of the administration’s requirements for a new agreement. Pompeo laid out an onerous list of 12 “basic requirements” on Iran which toughened the nuclear demands and called for a wholesale change to Iran’s military posture in the region, that he says should be included.

Among the demands listed by Pompeo was that Iran must “stop enrichment” of uranium and never pre-process plutonium. Iran must also allow nuclear “unqualified access to all sites throughout the country.”

Pompeo also demanded that Iran must withdraw all of its forces from Syria, end its support for militant groups like Hezbollah in Lebanon, stop sending arms to the Houthi militia in Yemen, release all U.S. citizens, and cease its threats to destroy Israel.

Some of the requests were a bit more… bizarre:

As the WSJ notes, the 12 asks mark a fundamental change from the 2015 agreement between Iran and six world powers that President Donald Trump abandoned earlier this month but which European leaders have sought to preserve. That agreement allowed Iran to enrich uranium under detailed arrangements in return for sanctions relief.

Still, while the secretary of state said that the administration wouldn’t try to renegotiate the old Iran deal. Instead, he did just that by outlining the 12 basic requirements for the new deal.

“Relief from sanctions will come only when we see tangible, demonstrated, and sustained shifts in Tehran’s policies,” Mr. Pompeo said in prepared remarks. “We acknowledge Iran’s right to defend its people. But not its actions which jeopardize the world’s citizens.”

Pompeo said the demands were needed because of the broad nature of what he called Iran’s malign behavior. The U.S., he said, didn’t create the need for the demands, Iran did.

That said, it’s unlikely Iran will comply: critics say that the new approach is nonnegotiable and won’t garner strong support in Moscow, Beijing or European capitals.

“It’s a pipe-dream to believe the administration could achieve its wish-list of unrealistically ambitious negotiating objectives,” said Robert J. Einhorn, a former State Department official who was involved in Iran negotiations during the Obama administration.

Einhorn said the Trump administration’s new sanctions wouldn’t be as effective as the ones that the Obama administration was able to put in place with the support of U.S. allies and other nations.

Failing to reach an agreement on renegotiation, Pompeo threatened that the US would impose the “strongest sanctions in history” on Iran if the country failed to enter into a new nuclear deal on American terms.

We are confident that China, Russia and Europe are just waiting for this to happen so they can provide Iran with all the goods and services the nation may need now that it has been blacklisted by the US, Saudi Arabia and Israel.

via RSS https://ift.tt/2ICAdcr Tyler Durden

Criminal Justice Reform Bills in Congress Draw Trump’s Support, Jeff Sessions’ Ire, and Infighting Among Prominent Democrats: Reason Roundup

After seizing serious attention in 2014 and 2015, criminal justice reform has languished at the federal level (even as officials in some states continued to do good work). But the issue could be gaining momentum again, after getting a boost from such unlikely sources as Donald Trump and Jared Kushner.

President Trump told a White House forum on Friday that if legislators can get him a prison reform bill, “I will sign it.”

One of the bills being kicked around in Congress right now (with a push from Kushner) focuses on programs to help prisoners reintegrate to outside life. “The single biggest thing that we want to do is really define what the purpose of a prison is,” Kushner said at Friday’s event. “Is the purpose to punish, is the purpose to warehouse, or is the purpose to rehabilitate?”

The measure certainly falls short of many much-needed reforms to federal sentencing guidelines and other areas—there are whole sectors of justice reform that the Trump administration and its allies won’t even touch. But the bill being pushed now could do some good for those in prison, and could help inject some salience back into criminal justice reform overall. It is literally called the First Step Act, and it includes such things as prohibiting the shackling of women while they give birth and saying that prisoners must be housed within 500 miles of their family.

At Friday’s event, Trump “gave a rare display of empathy,” says The New York Times editorial board. “A friend of mine told me that when people get out of prison, they’re all excited,” he said. “And then they go and they have that stigma; they can’t get a job. People don’t want to hire them. They can’t get that chance. When we talk about our national program to hire American, this must include helping millions of former inmates get back into the work force as gainfully employed citizens.”

The Times editorial goes on to excoriate federal lawmakers who have thwarted their colleagues’ attempts at overhauling federal sentencing guidelines, drug laws, and prison policies.

For more than a decade, states of every political hue—from Texas and Louisiana to Connecticut and California—have been overhauling their criminal justice systems, to reverse the effects of decades of harsh and counterproductive policies. But Congress has watched this revolution from the sidelines, thanks to reactionary lawmakers, including Mr. Sessions when he was in the Senate. Comprehensive federal legislation has been foiled again and again, as states forge ahead, reducing both prison populations and crime rates through bipartisan reforms.

Another bill before Congress right now, Iowa Republican Sen. Chuck Grassley’s Sentencing Reform and Corrections Act, has drawn Sessions’ ire for reducing some sentences and giving judges more discretion over sentencing.

Sessions is out of step not just with fellow Republican politicians but with the party’s evangelical base, which has embraced the issue. “The incarceration rate in this country is just insane,” evangelical leader Johnnie Moore told NPR after attending Friday’s White House forum. “And because of that, most evangelicals, myself included, have a connection to the issue…we’ve seen it with our own eyes. And now’s the time to speak up.”

It’s Democrats who are holding up the House’s First Step Act. Some in the party say the Dems should embrace the bill as a good start, while others—including Sen. Kamala Harris of California, Sen. Cory Booker of New Jersey, and Rep. Sheila Jackson Lee of Texas—opposing the bill because it doesn’t go far enough. Whatever their reasoning, it puts Harris, Booker, and Lee in the company of the Bureau of Prisons union and Sen. Tom Cotton (R-Ark.).

Rep. Hakeem Jeffries (D-New York) slammed the letter they sent in opposition, saying it was “riddled with factual inaccuracies and deliberately attempts to undermine the nationwide prison reform effort.” With a Republican President and Republicans in control of both the House and the Senate, “it is not clear how exactly the opposition proposes to achieve comprehensive criminal justice reform without first considering the bipartisan prison reform legislation pending in the House,” Jeffries wrote.

According to a new report from the Vera Institute for Justice, the total U.S. prison population fell to a little under 1.5 million in 2017, down about 16,000 inmates from the year prior. About 1.3 million inmates were in state prisons last year and around 183,000 in federal prisons.

FREE MINDS

Posting ads on Facebook now requires picture ID, Social Security number, and mailing address. CNN reporter Donie O’Sullivan tried out the new system:

Check out the whole thread for a full accounting of the insanity. The new rules don’t just apply to political ads or ads that advocate directly for or against candidates and issues. As O’Sullivan notes, “you’re going to have to prove your identity if your ad mentions…any of these issues“: abortion, the budget, civil rights, crime, the economy, education, energy, environment, foreign policy, government reform, guns, health, immigration, infrastructure, military, poverty, Social Security, taxes, terrorism, or “values.”

FREE MARKETS

NAFTA now or later. “The president is determined that we renegotiate” the North American Free Trade Agreement (NAFTA), Treasury Secretary Steve Mnuchin said on Fox News Sunday yesterday. But “whether we pass it in this Congress or we pass it in the new Congress” isn’t a concern, he ad ded.

“I’m not saying he’s willing to let it spill over, he has all his alternatives,” Mnuchin continued. “I’m just saying right now we are focused on negotiating a good deal and we’re not focused on specific deadlines. We’re still far apart but we’re working every day to renegotiate this agreement.”

Mnuchin also announced yesterday that Washington would be “putting the trade war [with China] on hold.”

QUICK HITS

  • “I hereby demand…that the Department of Justice look into whether or not the FBI/DOJ infiltrated or surveilled the Trump Campaign for Political Purposes,” Trump tweeted Monday morning.
  • Scott Pruitt’s regulatory rollbacks at the Environmental Protection Agency are in question after activists have questioned the validity of sources cited to justify the deregulation.
  • Surprise! Venezuelan dictator Nicolas Maduro has won another term as president.
  • Saudi women are allowed to drive…but not quite yet.
  • According to Bill Gates, Trump doesn’t know the difference between HIV, the virus that causes AIDS, and HPV, a virus that can be vaccinated against and that causes genital warts.
  • Damon Linker calls out “the irredeemable irresponsibility of The Federalist.”
  • Cathy Young tackles the “Intellectual Dark Web.”
  • Against “security nihilism.”

from Hit & Run https://ift.tt/2s3Vk19
via IFTTT

“Who Needs Enemies?”

Authored by Raul Ilargi Meijer via The Automatic Earth blog,

Obviously, there are tensions between Europe and the US. Just as obviously, these tensions are blamed on, who else, Donald Trump. European Council President Donald Tusk recently said: “With friends like Trump, who needs enemies?” EU Commission chair Jean-Claude Juncker even proclaimed that “Europe must take America’s place as global leader”.

These European ‘leaders’ love the big words. They think they make them look good, strong. In reality, they are merely messenger boys for Berlin and Paris. Who have infinitely more say than Brussels. Problem is, Berlin and Paris are not united at all. Macron wants more Europe, especially in finance, but Merkel knows she can’t sell that at home.

So what are those big words worth when the whip comes down? It’s amusing to see how different people reach wholly different conclusions about that. Instructive and entertaining. First, Alex Gorka at The Strategic Culture Foundation, who likes the big words too: “..a landmark event that will go down in history as the day Europe united to openly defy the US.”and “May 17 is the day the revolt started and there is no going back. Europe has said goodbye to trans-Atlantic unity. It looks like it has had enough.

Brussels Rises In Revolt Against Washington: A Turning Point In US-European Relations

The May 16-17 EU-Western Balkans summit did address the problems of integration, but it was eclipsed by another issue. The meeting turned out to be a landmark event that will go down in history as the day Europe united to openly defy the US. The EU will neither review the Iran nuclear deal (JPCOA) nor join the sanctions against Tehran that have been reintroduced and even intensified by America.

Washington’s unilateral withdrawal from the JPCOA was the last straw, forcing the collapse of Western unity. The Europeans found themselves up against a wall. There is no point in discussing further integration or any other matter if the EU cannot protect its own members. But now it can.

[..] As European Council President Donald Tusk put it, “With friends like Trump, who needs enemies?” According to him, the US president has “rid Europe of all illusions.” Mr. Tusk wants Europe to “stick to our guns” against new US policies. Jean-Claude Juncker, the head of the EU Commission, believes that “Europe must take America’s place as global leader” because Washington has turned its back on its allies.

Washington “no longer wants to cooperate.” It is turning away from friendly relations “with ferocity.” Mr. Juncker thinks the time is ripe for Europe “to replace the United States, which as an international actor has lost vigor.” It would have been unthinkable not long ago for a top EU official to say such things and challenge the US global leadership. Now the unthinkable has become reality.

[..] Sandra Oudkirk, US Deputy Assistant Secretary of State for Energy, has just threatened to sanction the Europeans if they continue with the Nord Stream 2 pipeline project to bring gas in from Russia across the Baltic Sea.

[..] President Donald Trump has just instructed Secretary of State Mike Pompeo to prepare a list of new sanctions against the Russian Federation for its alleged violations of the 1987 Intermediate-Range Nuclear Forces (INF) Treaty. [..] But nobody in Europe has announced that they want US nuclear-tipped intermediate- range weapons on their territory that will be a target for a potential retaliatory strike by Russia.

[..] The time is ripe for Brussels to stop this sanctions-counter-sanctions mayhem and stake out its own independent policies on Russia, Iran, defense, and other issues, that will protect European, not US, national interests. May 17 is the day the revolt started and there is no going back. Europe has said goodbye to trans-Atlantic unity. It looks like it has had enough.

As for placing new nukes in Europe, that will be a hard sell. But the US will probably find countries that say yes, provided they are compensated well. Just don’t try it in Holland, Germany or France. But also don’t forget the amount of nukes already on the continent: just call it an upgrade.

Nord Stream 2 is tricky, but mostly an economic issue: Trump wants to sell American gas to Europe, and uses the bad bad Putin narrative to make that happen. Still, the pipeline has been in the pipeline for a long time, and a lot of time and money has been spent on it. It’ll be hard for the US to cut it off at this late stage.

When it comes to claiming the EU will not review the Iran nuclear deal, isn’t that exactly what they are indeed doing? Reuters:

Europe, China, Russia Discussing New Deal For Iran

Under the 2015 deal, Iran agreed to curb its nuclear program in return for the lifting of most Western sanctions. One of the main complaints of the Trump administration was that the accord did not cover Iran’s missile program or its support for armed groups in the Middle East which the West considers terrorists.

Concluding a new agreement that would maintain the nuclear provisions and curb ballistic missile development efforts and Tehran’s activities in the region could help convince Trump to lift sanctions against Iran, the paper said. “We have to get away from the name ‘Vienna nuclear agreement’ and add in a few additional elements. Only that will convince President Trump to agree and lift sanctions again,” the paper quoted a senior EU diplomat as saying.

All in all, Mr. Gorka doesn’t convince me. Europe doesn’t speak with one voice, and we wouldn’t even know which voice speaks for it. Just that it isn’t Juncker or Tusk, they’re handpuppets. Moreover, Europe has so many internal issues to deal with that it has a hard time speaking at all. A landmark event in US-EU relations may happen one day, but May 17 wasn’t it.

What I find more interesting is the account of academic John Laughland, ‘a historian and specialist in international affairs’, at RT:

With Iran Sanctions Trump Made Europeans Look Like The Fools They Are

Donald Tusk may say “Europe must be united economically, politically and also militarily like never before … either we are together or we are not at all” but Europe is indeed not “together” at all. The Brussels commission is hounding Poland and Hungary on what are clearly internal political matters beyond the Commission’s remit; the EU is about to lose one of its most important member states; and a new government is going to take power in Rome whose economic policies (a flat tax at 15%) will blow the eurozone’s borrowing rules out of the water and perhaps cause Italy to leave the euro.

The Italian 5-Star/League government also wants an end to the EU sanctions against Russia; these are voted by a unanimity which, although fragile, has held until now but which, if the new power in Rome keeps its word, will shortly collapse. In other words, what Trump has done is to make the Europeans look like the fools they are. In circumstances in which the EU has placed all its eggs in one basket, a basket which Trump has now overturned, it will be impossible for it to come together. On the contrary, it is falling apart.

[..] the EU draws its entire legitimacy from the belief that by pooling sovereignty and by merging its states into one entity, it has advanced beyond the age when international relations were decided by force. It believes that it embodies instead a new international system based on rules and agreements, and that any other system leads to war. It is impossible to exaggerate the importance of this belief for European leaders; yet Donald Trump has just driven a coach and horses through it.

The angry statements by European leaders might lead one to think that we are on the cusp of a major reappraisal of trans-Atlantic relations. However, the reality is that the EU and its leaders have painted themselves into a corner from which it will be very difficult, perhaps impossible, to extricate themselves.

Like I said, completely different conclusions based on the exact same events. The EU risks what might turn into an existential crisis with Beppe Grillo effectively holding the reins of power in Rome. The new government may have dropped the demand for a €260 billion debt relief, but the basic income plan is still there, and so is dropping Russian sanctions.

The new guys can’t divert from their election promises much further, they need to maintain their credibility. But for a lot of their promises it is not at all clear how they could possible fit into the present EU structure. Try their demand for a mechanism to leave the EU.

Italy is so large that Brussels cannot be too aggressive against it. The ECB cannot stop buying Italian bonds, as it did with Greek ones. And at some point the debt relief demand will return too.

But Laughland has a lot more cold water to pour on the alleged but toothless European revolt. In the shape of NATO. This is scary for every European:

[..] the links between the EU and the US are not only very long-standing, they are also set in stone. NATO and the EU are in reality Siamese twins, two bodies born at the same time which are joined at the hip. The first European community was created with overt and covert US support in 1950 in order to militarize Western Europe and to prepare it to fight a land war against the Soviet Union; NATO acquired its integrated command structure a few months later and its Supreme Commander is always an American.

Today the two organizations are legally inseparable because the consolidated Treaty on European Union, in the form adopted at Lisbon in 2009, states that EU foreign policy “shall respect” the obligations of NATO member states and that it shall “be compatible” with NATO policy. In other words, the constitutional charter of the EU subordinates it to NATO, which the USA dominates legally and structurally. In such circumstances, European states can only liberate themselves from US hegemony, as Donald Tusk said they should, by leaving the EU. It is obvious that they are not prepared to do that.

Anything else about those dreams of standing up to Trump? Have the past and present leaders in Brussels, and in Berlin and Paris and Rome, betrayed their own citizens? Sold them out? How far removed is this from treason? And does this perhaps indicate that it’s high time for a complete and utter overhaul of the European Union?

It sure sounds a lot more realistic than Europe replacing America as the global leader.

Who needs enemies? NATO does.

via RSS https://ift.tt/2GB7Xos Tyler Durden

Key Events This Week: PMIs, Fed Minutes And Non-Stop Fed Speakers

Following a week in which bond markets were tested once again, global newsflow quiets down modestly although growth expectations will be put to the test this week with the next round of monthly PMIs due. The latest Fed meeting minutes will also be closely scrutinized given some of the interesting statement changes earlier this month while the resumption of Brexit talks in Brussels and a meeting between the Presidents of South Korea and the US will also be worth keeping an eye on.

As Deutsche Bank’s Craig Nicol summarizes, the big data highlight for markets in the next 5 days are Wednesday’s flash May PMIs around the globe, including Japan’s manufacturing reading, and manufacturing, services and composite prints in Europe and the US. In terms of expectations, the consensus for the Eurozone manufacturing reading is 56.1, which follows the 56.2 reading in April and 60.6 high print back in December. The composite print for the Eurozone is expected to nudge down slightly to 54.9 from 51.1. So broadly stable month to month. The PMIs in the US are expected to fall slightly more though with the consensus for the manufacturing print being 56.1 following a 56.5 reading in April.

Away from the PMIs, other data worth highlighting next week is the April inflation data dump in the UK on Wednesday, where expectations are for a small drop in core CPI to +2.1% yoy from +2.3% in March. April retail sales data will also be out in the UK on Thursday before we then get a second reading of Q1 GDP on Friday (expected to reflect the +0.1% qoq flash print). In Germany, we also have second revisions to Q1 GDP on Thursday, as well as Friday’s May IFO survey. In the US, the calendar is mostly filled with second-tier releases, however, Friday’s flash April durable and capital goods orders data (core capital orders expected to rise +0.5% mom) will be important for shaping early Q2 GDP expectations.

Over at the Fed, there will be plenty of eyes on the FOMC minutes on Wednesday evening from the May 2nd meeting. As a reminder, the statement from that meeting moved incrementally in a more hawkish direction and also towards brevity. It also included use of the word ‘symmetry’ in relation to the 2% inflation objective, so it’ll be interesting to see if this is fleshed out at all. Indeed, our US economists saw the meeting statement as a first step towards altering the balance of risks language and expect to learn more from the minutes. As we know, since the minutes we have had some disappointing inflation readings in the US (CPI and average hourly earnings), however, bond yields have continued to march higher in line with inflation expectations.

As well as the minutes, there’s also plenty of Fedspeak scheduled again for next week. On Monday evening, we have Atlanta Fed President Bostic (neutral/ voter) speaking to the Atlanta Economic Club,  followed a couple of hours later by Philadelphia Fed President Harker (neutral/non-voter) speaking at the CEO’s Financial Seminar for 2018 and the Minneapolis Fed President Kashkari (dove/ non-voter) speaking at a moderated Q&A session in Michigan. On Thursday, NY Fed President Dudley (neutral/voter) then speaks at a BoE event in the morning alongside BoE Governor Carney, before Harker speaks again in the evening at a Labour Market event. Fed Chair Powell (neutral/voter) is then slated to speak on Friday at a Riksbank event in the afternoon before Dallas Fed President Kaplan (neutral/non-voter), Chicago Fed President Evans (dove/non-voter) and Bostic once again wrap things up on Friday afternoon, when they speak on a panel at a conference.

Finally, politics should continue to be a factor for markets next week. The next round of Brexit negotiations begin in Brussels on Tuesday before EU finance ministers gather to discuss developments on Friday. South Korean PresidentMoon Jae-in travels to meet President Trump in Washington on Tuesday ahead of likely talks between the US and North Korea. On Wednesday, the House Affairs Committee holds a hearing to question Mike Pompeo (Secretary of State) about President Trump’s foreign policy priorities. Then on Thursday Russia and Saudi Arabia’s energy ministers gather to discuss the US withdrawing from the Iran accord, while finally on Friday Russia President Putin hosts France President Macron, Japan PM Abe and the IMF’s Lagarde in a panel in St. Petersburg.

Next, also courtesy of DB, here is a breakdown of key events by day:

  • Monday: A fairly quiet start to the week with the main highlights being the afternoon and evening Fedspeak when Bostic, Harker and Kashkari all speak separately. Datawise, the only releases scheduled are May house price data in the UK, April trade data in Japan and the April Chicago Fed national activity index in the US. The ECB’s Nowotny is also due to speak in the morning.
  • Tuesday: Another fairly quiet day for data with April public finances data and May CBI selling prices in the UK the only prints due in the European session, while in the US the only release scheduled is the May Richmond Fed PMI. Politics should play a greater role with the next round of Brexit negotiations beginning in Brussels, and South Korea President Moon Jae-in due to visit Washington to meet President Trump.
  • Wednesday: Things pick up on Wednesday with the highlight being the May PMIs across the globe. That includes the manufacturing print in Japan, as well as the manufacturing, services and composite prints in Europe and the US. Away from that, Q1 employment indicators in France and April CPI/RPI/PPI in the UK is due in the morning, while April new home sales in the US is due in the afternoon. The May consumer confidence print for the Euro area is also due in the afternoon, while in the evening the latest FOMC meeting minutes will be released. Also worth noting is the House Foreign Affairs Committee holding a hearing to question Secretary of State Mike Pompeo regarding Trump’s foreign policy priorities, and the European Commission publishing country specific recommendations for economic policy.
  • Thursday: Overnight in Japan on Thursday we’re due to hear from the BoJ’s Sakurai, while the March leading index will also be out. During the European session, data due includes the final Q1 GDP revisions in Germany along with June consumer confidence, May confidence indicators in France and April retail sales data in the UK. In the US weekly initial jobless claims, Q1 house price purchase index, March FHFA house price index, April existing home sales and May Kansas City Fed PMI are all due. Over at the Fed, Dudley will speak in the morning, along with BoE Governor Carney, while in the evening Harker is due to speak again. It’s worth noting that Russia’s acting energy minister is due to discuss the US exit from the Iran accord with Saudi Arabia’s energy minister on Thursday.
  • Friday: We end the week in Europe on Friday with the May IFO survey in Germany and preliminary Q1 GDP report in the UK, including the various growth components. In the US flash April durable and capital goods orders will likely be the highlight, while the final University of Michigan consumer sentiment survey is also due. Away from that, EU finance ministers are due to discuss the latest on Brexit negotiations, while Russia President Putin, France President Macron, Japan’s Abe and IMF’s Lagarde take part in a panel.

* * *

Finally, here is Goldman with a focus only on the US, and consensus estimates, noting that key economic releases this week are the minutes from the May FOMC meeting on Wednesday and the durable goods report on Friday. There are several speeches from Fed officials this week, including one from Chairman Powell on Friday.

Monday, May 21

  • 12:15 PM Atlanta Fed President Bostic (FOMC voter) speaks: Atlanta Fed President Raphael Bostic will give a speech at the Atlanta Economic Club on “Welfare Economics: Trade & A Review of Principles.” Audience Q&A is expected.
  • 02:05 PM Dallas Fed President Kaplan (FOMC non-voter) speaks: Dallas Fed President Robert Kaplan will give a speech at the Chief Executives Organization’s CEO Financial Seminar in New York. Audience and media Q&A is expected.
  • 05:30 PM Minneapolis Fed President Kashkari (FOMC non-voter) speaks: Minneapolis Fed President Neel Kashkari will take part in a moderated Q&A in Escanaba, Michigan. Audience Q&A is expected.

Tuesday, May 22

  • 10:00 AM Richmond Fed manufacturing, May (consensus 8, last -3)

Wednesday, May 23

  • 09:45 AM Markit Flash US manufacturing PMI, May preliminary (consensus 56.5, last 56.5)
  • 09:45 AM Markit Flash US services PMI, May preliminary (consensus 54.8, last 54.6)
  • 10:00 AM New home sales, April (GS -1.3%, consensus -2.2%, last +4.0%): We expect a 1.3% decline in new home sales in April, retracing less than half of its 4.0% March increase. The level of single-family building permits remains healthy, and while wintry weather could weigh on sales, Northeast region contract signings were already depressed in March (and seem likely to rebound).
  • 02:00 PM Minutes from the May 1-2 FOMC meeting: At its May meeting, the FOMC left the funds rate target unchanged, as widely expected. The key changes in the post-meeting statement were the recognition of firmer inflation data and a greater emphasis on longer-run risks by changing the focus from “near-term risks” to simply “risks.” The Committee also added the word “symmetric” to describe its 2 percent inflation objective. We will look for a discussion of their assessment of risks to the outlook and path for monetary policy.
  • 02:15 PM Minneapolis Fed President Kashkari (FOMC non-voter) speaks: Minneapolis Fed President Neel Kashkari will take part in a moderated Q&A in North Dakota. Audience Q&A is expected.

Thursday, May 24

  • 04:15 AM New York Fed President Dudley (FOMC voter) speaks: New York Fed President William Dudley will give a speech on “Reference Rate Reform: Improving the Culture of FICC Markets” at the Bank of England’s 2018 Markets Forum. Audience Q&A is expected.
  • 08:30 AM Initial jobless claims, week ended May 19 (GS 220k, consensus 220k, last 222k): Continuing jobless claims, week ended May 12 (consensus 1,750k, last 1,707k): We estimate initial jobless claims declined by 2k to 220k in the week ending May 19. The level of claims appears elevated in Kentucky and Missouri and the trend in jobless claims appears to be falling. Accordingly, we expect another very low reading. Continuing claims—the number of persons receiving benefits through standard programs—fell to a 45-year low in the previous week, and the insured unemployment rate fell to its all-time low.
  • 10:35 AM Atlanta Fed President Bostic (FOMC voter) speaks: Atlanta Fed President Raphael Bostic will give opening remarks at a conference hosted by the Dallas Fed on “Technology-Enabled Disruption: Implications for Business, Labor Markets, and Monetary Policy.”
  • 10:00 AM Existing home sales, April (GS -0.8%, consensus -0.9%, last +1.1%): We look for a 0.8% pullback in April existing homes sales based on regional housing data, following the 1.1% rise in March. Existing home sales are an input into the brokers’ commissions component of residential investment in the GDP report.
  • 02:00 PM Philadelphia Fed President Harker (FOMC non-voter) speaks: Philadelphia Fed President Patrick Harker will give a speech at the Dallas Fed’s conference on “Technology-Enabled Disruption: Implications for Business, Labor Markets, and Monetary Policy,” focusing on the implications for the broader labor market. Audience Q&A is expected.

Friday, May 25

  • 08:30 AM Durable goods orders, April preliminary (GS -1.0%, consensus -1.4%, last +2.6%): Durable goods orders ex-transportation, April preliminary (GS +0.5%, consensus +0.5%, last +0.1%); Core capital goods orders, April preliminary (GS +0.7%, consensus +0.6%, last -0.4%); Core capital goods shipments, April preliminary (GS +0.6%, consensus +0.4%, last -0.8%): We estimate durable goods orders pulled back 1.0% in the preliminary May report, after increasing 2.6% in the prior month on the back of firmer aircraft orders. We expect a firmer 0.5% increase in the durables ex-transportation category and +0.7% for core orders, as we see scope for reacceleration in unfilled orders, and industrials top-line results and commentary remain solid. We forecast a 0.6% rebound in core capital goods shipments, reflecting strong industrial production data.
  • 09:20 AM Fed Chairman Powell (FOMC voter) speaks: Federal Reserve Chairman Powell will participate in a panel on “Financial Stability and Central Bank Transparency” at a conference hosted by the Sveriges Riksbank titled “350 Years of Central Banking – The Past, The Present and The Future.” Audience Q&A is expected.
  • 10:00 AM University of Michigan consumer sentiment, May final (GS 98.6, consensus 98.8, last 98.8): We expect the University of Michigan consumer sentiment index to edge down 0.2pp to 98.6—still a healthy level—in the final May estimate. The preliminary report’s measure of 5- to 10-year ahead inflation expectations remained down to 2.4%, after rebounding in the April final reading back to 2.5%.
  • 11:45 AM Fed Presidents Bostic (FOMC voter), Evans (FOMC non-voter), and Kaplan (FOMC non-voter) speak: Federal Reserve Presidents Bostic, Evans, and Kaplan will jointly participate on a panel at the Dallas Fed’s conference on “Technology-Enabled Disruption: Implications for Business, Labor Markets, and Monetary Policy.”

Source: DB, Goldman, BofA,

via RSS https://ift.tt/2rYd64V Tyler Durden

Maduro Wins Vote Boycotted By Opposition As US Threatens Sanctions

Socialist President Nicolas Maduro won another six-year term in power over the weekend in a vote that western countries have widely denounced as illegitimate.

The victory hands Maduro sole ownership of the country’s worsening economic crisis, as Bloomberg put it. The socialist regime ignored calls to suspend the vote, and even tolerated a challenge from former governor Henri Falcon, who won about 21% of votes in an election that saw 48% turnout among eligible voters. That’s the lowest for a Venezuelan election since Maduro’s predecessor, Hugo Chavez, upended Venezuelan politics in 1998.

Maduro

Critics said the government had promised voters economic rewards – like a special unspecified prize – to win support from state workers.

Mainly poor Venezuelans were reportedly asked to scan state-issued “fatherland cards” at red tents after voting in the hope of receiving a “prize” promised by Maduro.

These cards are required for people to receive what little benefits the government gives them.

Meanwhile, Maduro described accusations of forced voting as “an insult to the people.”

“How many times have they underestimated me?” Maduro, 55, called out to crowd of supporters outside the Miraflores presidential palace in Caracas.

“You have believed in me, and I’m going to respond to this infinite confidence, this lovely confidence.”

“They say you were forced to vote, that you were coerced into voting – it’s an insult to the people!”

In Beijing, foreign ministry spokesman Lu Kang said the Venezuelan people should be left to handle their own affairs, and that everyone should respect the people’s choice.

He added that China would “handle this in accordance with diplomatic convention.”

Meanwhile, Florida senator Marco Rubio, a regular critic of Maduro whose constituents include many Venezuelan migrants, urged the US to isolate Maduro’s government and said he supported “all policy options” to return Venezuela to democracy, according to Reuters. President Trump has said he won’t rule out military action against Maduro.

The US won’t recognize Sunday’s election and has said that sanctions against the nation’s oil industry are under “active review,” according to Deputy Secretary of State John Sullivan. Previously, sanctions have been levied against individuals involved in the country’s government. But some worry that punishing the country’s lifeline industry could have devastating effects on a population that’s already suffering.

Maduro

Maduro has blamed falling oil prices and a foreign conspiracy led by Washington for his government’s failures. But as we pointed out last week, Venezuela’s failures aren’t due to oil prices – they are the fault of socialism.

For any economy to thrive, production must meet consumer demand. The available goods must be affordable to potential buyers. Venezuelans need approximately $150 per month to purchase a dozen of eggs.The averagemonthly income is $2.20, with a tiny stipend of government welfare. Citizens cannot afford to buy what is needed to live comfortably and healthy. That’s socialism. No centrally-run government has ever been able to create and produce efficiently.

Many of Venezuela’s shortages have been created by price controls – another popular socialist tactic. When the government determines prices instead of market forces, prices become artificially low. This creates a greater demand for the product than the seller can deliver at any kind of a profit. The seller is losing money with each sale. The results are the empty Venezuelan supermarket shelves.

The election board said Maduro received 5.8 million votes, compared to 1.8 million for Falcon, a former governor who broke with an opposition boycott to stand for election. Two of the country’s most popular opposition leaders were barred from voting. And the election board is run by socialist loyalists, according to Reuters.

The government reportedly used ample state resources during the campaign and state workers were pressured into voting, which was decried as false by the European Union and several major Latin American countries.

Chile’s President Sebastian Pinera was scathing about Sunday’s vote. “Venezuela’s elections do not meet minimum standards of true democracy,” he said. “Like most major democratic nations, Chile does not recognize these elections.”

Panama said it would not recognize the result. But other leftist nations like Cuba and El Salvador sent their congratulations.

While this outcome was for all intent and purpose guaranteed, what is left of Venezuela’s markets are deteriorating further now the result is known, with VENZ and PDVSA bonds tumbling..

Re-election of Venezuelan President Nicolas Maduro means “a messy debt default and restructuring is now inevitable,” since he is unlikely to put a credible deal on the table, Capital Economics LatAm Economist Edward Glossop writes in report. Debt repayments after July looks “extremely challenging.”

And as Bloomberg points out, Capital Economics also highlights that solutions to economic and humanitarian crisis are unlikely to be forthcoming, while escalations of U.S. sanctions seem inevitable

  • Dollarisation or IMF deal are unlikely; deficit monetisation, ultra-loose monetary policy will continue, with possible cosmetic tweaks to currency system

  • Restrictions on oil sector are “obvious” way to tighten U.S. sanctions regime, though there still appears to be some resistance within U.S. administration to implement them

via RSS https://ift.tt/2LiwtP8 Tyler Durden

Why Young Americans Are Drawn to Socialism: New at Reason

Capitalism has been the most dynamic force for economic progress in history. Over the past century, it has delivered billions of people out of miserable poverty, raised living standards to once-unimaginable heights, and enabled an unprecedented flourishing of productive creativity. But among young Americans, it finds itself on trial.

As Steve Chapman observes, the University of Chicago’s GenForward Survey of Americans ages 18 to 34 finds that 62 percent think “we need a strong government to handle today’s complex economic problems”—and 45 percent have a positive view of socialism.

View this article.

from Hit & Run https://ift.tt/2KH1lHD
via IFTTT

Italian Bonds, Banks Bloodbath As ‘Mini-BoT’ Massacre Continues

It would appear that investors in Italian assets have “more to fear that fear itself” as the mention of ‘mini-BoTs’ – and the implicit parallel currency nature of these short-dated IOUshas spooked Italian banks, Italian bonds, and Italian credit risk dramatically…

2Y Yields are spiking…

10Y Yields are spiking…

Italian bond risk is spiking…

 

And perhaps most notable is that very short-dated CDS premia are exploding – signifying growing concerns that an Italian Euro is NOT worth the same as German Euro…

All of which is bettering Italian banks…

 

As Chuck Schumer would have said… “Get back to work Mr. Draghi…”

via RSS https://ift.tt/2GBoEjW Tyler Durden

Frontrunning: May 21

  • Justice Department to Review FBI Probe of Trump Campaign (WSJ)
  • Trump’s Russia Probe Attacks Escalate From Tweets to Action (BBG)
  • U.S.-China Trade Truce May Not Last With Differences Unresolved (BBG)
  • U.S. Sends Mixed Messages on China (WSJ)
  • ‘Don’t Scream’: How the Texas School Shooting Unfolded (WSJ)
  • China Considers Ending Birth Limits as Soon as This Year (BBG)
  • Rising Dollar Sparks Tumult in Emerging Markets (WSJ)
  • An Arab Plan B for Containing Iran (BBG)
  • Venezuela’s President Keeps His Grip on Power (WSJ)
  • Forget About Oil at $80. The Big Rally Is in Forward Prices (BBG)
  • Trans-Atlantic Oil-Price Spread Soars as Supply Glut Disappears (WSJ)
  • Surging Prices, Rates Test Demand in Housing Market (BBG)
  • Fall of a Malaysian Dynasty Puts Target on Alleged 1MDB Mastermind (WSJ)
  • The Beginning of the End of Forward Guidance (BBG)
  • Cohen Probe Trips Up Bridgewater, World’s Biggest Hedge Fund (WSJ)
  • How Canada’s Brookfield snatched bargain assets amid Brazil panic (Reuters)
  • Modi’s Party Fails to Form Government in India’s Karnataka (BBG)
  • China’s Bond Market Is a Real Minefield for Investors (BBG)

Overnight Media Digest

WSJ

– Investigators have yet to issue their final report on a Southwest Airlines Co flight last month that ended in an emergency landing and a passenger’s death. But one thing is clear: Despite a warning about a suspect engine part nearly two years earlier, investigators didn’t mandate enhanced inspections for an unusually long time and acted only after the high-profile fatality. on.wsj.com/2rWNfLp

– Starbucks Corp said it is creating an official policy that allows all guests to use its cafes, including its restrooms, whether or not they make a purchase. on.wsj.com/2IBIMZb

– In federal and state lawsuits against American Airlines Group Inc, Kroger Co and luxury chain Montage Hotels & Resorts LLC, among others, employees have alleged that the companies they work for are unfairly subtracting fractions of their hourly wages using time-tracking technology. on.wsj.com/2kdCgsX

– Hellmann’s maker Unilever Plc and Kraft Heinz Co , which owns Miracle Whip, are cutting prices and slinging out new concoctions as they battle changing eating habits, an array of new competitors and each other. on.wsj.com/2wZtyYo

 

FT

Electric scooter sharing company Bird is looking to raise as much as $200 million in new equity, according to a person familiar with the talks.

European private equity firms Nordic Capital and Inflexion have raised a combined $8 billion in funds with Nordic Capital raising 4.3 billion euros ($5.06 billion) for its latest flagship fund and Inflexion raising a total of 2.25 billion pounds ($3.03 billion) in two separate funds from investors.

British authorities, whose relations with Moscow have been strained, are yet to renew Russian billionaire Roman Abramovich’s visa after it expired last month, according to four people close to the owner of Chelsea football club.

 

NYT

– Comcast Corp has lined up bridge financing with investment banks as it intends to mount a campaign to snatch Twenty-First Century Fox from Walt Disney Co. nyti.ms/2rZdMH3

– The Trump administration has suspended its plan to impose sweeping tariffs on China as it presses forward with trade talks, a gesture that will temporarily ease tensions between the two nations but rapidly increase pressure on President Trump to secure the type of tough deal that he has long said is necessary to protect American workers. nyti.ms/2LgqtX5

– Deutsche Bank shareholders are set to gather for the company’s annual meeting on Thursday and one of the items on the agenda will be a motion to oust Paul Achleitner, who has been the chairman of the company’s supervisory board since 2012. nyti.ms/2rVuyb8

 

Canada

THE GLOBE AND MAIL
** Ontario’s elections watchdog, Elections Ontario, is reviewing whether any Progressive Conservative Party candidates used stolen personal data to further their campaigns. tgam.ca/2KHBPCh

** Tory leader Doug Ford has dismissed calls for police to investigate Ontario’s Progressive Conservatives and says he has cleaned up the party since becoming leader, despite revelations that a number of local nomination races may have been marred by electoral interference. bit.ly/2IzMhej

NATIONAL POST
** Porter Airlines Inc’s chief executive Robert Deluce said the company hasn’t walked away from its conditional order of 30 CSeries jets from Bombardier Inc and that deposits for the aircraft are still in place, despite the fact Ottawa closed the door to allowing jets to fly from the island airport more than two years ago. bit.ly/2rW4Fa4

** Canada’s ethics watchdog is investigating federal fisheries minister Dominic LeBlanc’s decision to award a lucrative fishing license to a group in Atlantic Canada with ties to the Liberals and LeBlanc’s own family. bit.ly/2s0NLqX (Compiled by Bengaluru newsroom)

 

Britain

The Times

Roman Abramovich, the billionaire owner of Chelsea football club, is unable to visit Britain because his visa has expired, The Times has established. bit.ly/2rXjoCB

British online supermarket Ocado Group Plc boss Tim Steiner is in line to collect 110 million pounds ($148.18 million) in bonuses early next year – a record payout for the boss of a UK-listed company. bit.ly/2rWlkeN

The Guardian

British Foreign Minister Boris Johnson has delivered a thinly veiled warning to Prime Minister Theresa May that he and his fellow Brexiters still expect her to deliver a deal that avoids triggering the “backstop” that would keep Britain aligned to the customs union beyond 2020. bit.ly/2rV1JLY

Hundreds of staff at British retailer Marks and Spencer Group Plc will find out as soon as Monday whether their store is closing, as the company accelerates its retrenchment from struggling UK high streets. bit.ly/2IYdpr6

The Telegraph

From Friday, the Information Commissioner’s Office will have the power to inspect a private company’s intellectual property through algorithm audits, to see that computer programmes are mining and processing European citizen’s personal information in a “transparent” and “fair” manner. bit.ly/2IXidNk

Footwear maker Dr. Martens has poached UK fashion brand Cath Kidston Chief Executive Kenny Wilson. bit.ly/2GBaT4C

Sky News

Sky News has learnt that Omers Private Equity, an arm of a major Canadian pension fund, and ICG, a London-listed group, are battling to participate in a takeover of Iris – a major provider of software to GP surgeries across Britain. bit.ly/2rTKdru

via RSS https://ift.tt/2GDyWQn Tyler Durden

Blain: “Mnuchin’s Name Is Now High On The Trump Deadpool List”

Submitted by Bill Blain of Mint Partners

“One of these mornings you’re gonna rise up singing….”

Queue jumpers on the train again this morning! Most folk politely line-up on the platform for the packed Southampton to London train, but not the young “lady” who brazenly barged in front of everyone and then spread her luggage over a couple of chairs, or the bald city-looking bloke who pushed through utterly oblivious to anyone else. Its moments like this when I wonder if its worth it anymore. Things are not improving… 30 plus years of paying my taxes and I’m still not allowed to shoot arrogant little s**ts off the train…

Anyway.. enough about my gripes.. what about markets?

Strip away the political noise and the short-term alarms, and its difficult to discern anything particularly real about direction or trend at present. What we do have are a host of conflicting cross-tides and currents – bond yields slowly edging higher, equities still range driven, and fears about weakening economic data lessening. The news flow is dominated by a host of factors ranging from Italy, US/China, Oil prices and what’s next.

The fact US Treasury Secretary Steve Mnuchin said “we’re putting the trade war on hold” will be perceived as a positive – but the devil will be in the details. The real issues to solve are IP and services. Meanwhile, Mnuchin’s name is now high on the Trump deadpool list as White House staffers brief against him.

Strip away the noise, and the macro numbers tell us the underlying environment remains positive. The global agenda is about trade agreements. There is an intact underlying global growth trend – although it gets buried in political noise. Analyse it carefully and the right strategy is to invest in long-term growth assets, remaining risk-on in stocks, and negative bonds. But, then there is that nagging doubt pinging away at the back of your head – might equities be about to stage a massive correction, what if we’re wrong about bonds and growth? And what about the indications the world economy is slowing, business cycles have peaked, and maybe its time to go defensive? Who knows, who can tell? This is heaven, but this is hell…

And the big worry now is Italy, or so the papers say…

How much should markets worry? The Five-Star League (FSL) government has become the game changer – but its far more complex than just sell BTPs and Italian Banks. (One should always be a seller of Italian banks! Its basic common sense.) What’s occurring in Italy is a question of Europe – not just an Italy thing.

To understand the new threat posed by Italy, ask why its happened. “Because no one expected it” is a really stoopid answer – a populist Italian government has been looking a nailed-on bet for a long time, reflecting populist trends, pent-up economic and political frustration, and the Italian electorate looking to pin the blame. Apply same logic across the whole continent. It’s not worth speculating on what might or might not be said about debt write offs, or Italexit – structural change to monetary union, or a technical exit is going to prove just too dang difficult and isn’t going to happen.

The real issue about Italy is the braking strain of the European narrative and its ability to survive rising political exhaustion. It’s just too easy for politicians to pin their woes on Europe, even though Italy clearly benefits from Europe in terms of minimal interest rates which have kept its unsustainable debt load manageable. But it wants more – which Europe can’t and wont give.

My conclusions are two fold:

  • We face yet another wasted decade for Italy as a populist government wriggles to deliver anything meaningful. The reform agenda will stall. The only reason to buy Italian government bonds is when they look cheap relative to the implicit put to the ECB. As previously said, there are absolutely no reasons to buy Italian banks – ever!
  • An unengaged and distracted Italy will mean Macron’s attempt to relaunch the European dream will also stall, the Germans will become increasing detached from the whole process, and the rest of Europe will actively look over its shoulder for other solutions.

Folk are wondering why Europe has lumbered itself with the behemoth of monetary union. FSL are right – they want to go back to what European Union originally was: separate successful nations with shared economic goals in a common free-trade  market. For all the right or wrong reasons, the Euro and hence the EU/ECB will continue to be blamed for economic failure. As we are seeing across the fringes of Europe the project is under pressure because of the lack of shared values or common heritage- from Poland, Hungry, and the far right in Germany and France.

I’d rather the European thing works – but its going to come under increasing pressure, because thats what populist politicians do… they spot someone else to blame. Although the Euro is enormously popular across Europe – the younger generation are proud Europeans, and the older generation want script that is secure as the Deutschemark – I suspect it eventually dies, not with a bang, but with a whimper…  

Meanwhile, I am informed by a chum from a Surpranational that the UK will make its first positive Brexit return shortly – saving the couple of hundred million it would have taken to stage the next MEP elections. Whoopee!

via RSS https://ift.tt/2rZY9PQ Tyler Durden

Westworld Review: ‘Shogun World’ Is a Video Game, and Maeve Is Leveling Up

MaeveI spent most of my Sunday playing the just-released Hyrule Warriors: Definitive Edition for the Nintendo Switch. While the game is Legend of Zelda themed, and features characters, music, items, and settings from the beloved Nintendo franchise (“Hyrule” is Princess Zelda’s kingdom), it isn’t a proper Zelda game. Instead, it belongs to Tecmo Koei’s Dynasty Warriors series—a family of video games highly relevant to last night’s Westworld episode, which finally saw several main characters enter the much-anticipated “Shogun World.”

Dynasty Warriors takes place in Three Kingdoms era China (roughly 180-280 A.D.), following the collapse of the Han Dynasty. Players take control of one of dozens of characters based on fictionalized versions of historical persons—like the ambitious politician Cao Cao, cunning strategist Zhuge Liang, or invincible yet arrogant warrior Lu Bu—and then must fight their way through a series of battles based on events that actually happened centuries ago. Obviously, things don’t always turn out the way they did in real life: Cao Cao was defeated at the Battle of the Red Cliffs in 208 A.D., but if you’re playing as him in Dynasty Warriors, you have to win that one or its game over.

Hyrule Warriors isn’t the only Dynasty Warriors spin-off game. (I’m getting to Westworld, I swear.) There’s also Samurai Warriors, which takes place during Japan’s Edo period in the 17th century, which saw the warlord Ieyasu Tokugawa consolidate the nation under his control. Tokugawa is an important figure in Japanese history: his shogunate effectively ruled Japan until the emperor’s authority was re-asserted in the mid 1800s.

In “Akane No Mai,” the fifth episode of Westworld‘s second season, “woke” Maeve and her entourage make their way into “Shogun World,” where the eponymous shogun murders an innocent young geisha and then forces her mother figure to dance for him, with predictably vengeful results. Some reviewers evidently thought it was problematic to depict a stereotypically eastern world sprung from the imaginations of white people—even though the show has clearly positioned the white people who designed the park as the bad guys. Just as Westworld the park isn’t completely faithful to the American old west, instead relying on various cowboy tropes, so too is Shogun World a combination of realism and fantasy.

But back to the shogun: he’s clearly supposed to be some version of Ieyasu Tokugawa. The shogun mentions that he “killed 2,000 men in the Siege of Osaka,” which was the ultimate showdown between the historical Tokugawa and his last rival for dominance, Hideyori Toyotomi. I only know this because the Siege of Osaka is the final battle for the relevant characters in Samurai Warriors. (It’s a lot easier to win on Tokugawa’s side.)

I’ve written previously that Westworld is in many respects an ode to video games. (It’s also occasionally a reflection on modern society’s fear of data breaches, a straightforward robot uprising tale, a clone of Jurassic Park, and perhaps most bizarrely, a love letter to Lost­—another sci fi TV series beloved by this reviewer.) “Akane No Mai” makes this even clearer. We literally watch Maeve performing the seminal video game task of “grinding”: fighting weaker enemies over and over again until she has sufficiently boosted her stats and is ready for stronger foes. This is frequently a necessary task in the Dynasty Warriors series, and countless other games. At first, Maeve needs to give vocal commands to overpower the shogun’s foot soldiers; by the end of the episode, she has learned to soundlessly control them. She’s leveling up before our very eyes.

Of course, with real video games, there’s a person controlling the character, pressing the buttons that make their guy (or girl) swing a sword, or fire a gun, or step on a Goomba. What’s fun about Westworld is that the video game characters seem like they are finally controlling themselves. There’s a bit of uncertainty there, though. Is Maeve really rebelling against her programming, or is she merely following a path that the deceased (but probably not gone, if last week’s revelations about the potential for immortality are any indication) Robert Ford laid out for her?

Maeve ends the episode by declaring, “I’ve found a new voice.” In a literal sense, she means that she’s discovered an inner voice with which she can control the other hosts—though the line recalls Ford’s explanation of the “bicameral mind” theory of consciousness from season one, which supposed that entitites needed to hear their own thoughts in their heads, as if the gods were speaking to them. Dolores claimed to have discovered her own voice inside her head, and this revelation had something to do with her awakening as a supposedly automonous, fully conscious being. She’s now ostensibly following her own path, and one that increasingly seems like it will lead her to erase the less-well-developed consciousnesses of every other host in the park. (The dead hosts that will be pulled out of the water after whatever calamity befalls them have blank minds, we learn in a flashforward to the near future.) And yet I still can’t shake some nagging suspicion that this new voice is neither Dolores’s, nor Maeve’s, but someone else’s. As impressive and powerful as these video game characters may seem, there’s always somebody holding the controller.

from Hit & Run https://ift.tt/2KGVxOl
via IFTTT