US Navy Proposes A “Global Show Of Military Force” As A Warning To China

The trade war between the US and China is turning into a hot war with every passing day.

As we reported on Monday, Chinese ships came to actively confronting the USS Decatur while the US ship was carrying out yet another in a series of “freedom of navigation” operations – or “freeops” – in the South China Sea. The Navy destroyer had to maneuver to avoid colliding with the Chinese destroyer Luyang that came within 45 yards of its bow while the Decatur was sailing through the Spratley Islands on Sunday in what was the closest direct confrontation between US and Chinese ships since Trump’s inauguration (after which the Navy began conducting these freeops with increasing frequency).

On Tuesday, China accused the US of violating its “indisputable sovereignty” over the Spratley islands, saying in a statement “We strongly urge the U.S. side to immediately correct its mistake and stop such provocative actions to avoid undermining China-U.S. relations and regional peace and stability.” 

Now it’s the US turn to respond, and according to CNN, the US Navy’s Pacific Fleet has drawn up a classified proposal to carry out a global show of force as a warning to China and demonstrate the US is prepared to deter and counter their military actions. The draft proposal from the Navy is initially recommending the US Pacific fleet conduct a series of operations during a single week in November.

The navy’s goal – whether with or without the White House’s prodding – is to carry out a highly focused and concentrated set of exercises involving US warships, combat aircraft and troops to demonstrate that the US can counter potential adversaries quickly on several fronts.

Even without knowing the details, one can easily see how this can go horribly wrong. It only gets worse from there.

The plan suggests sailing ships and flying aircraft near China’s territorial waters in the South China Sea and Taiwan Strait in freedom of navigation operations, to demonstrate the right of free passage in international waters. Naturally, the proposal means US ships and aircraft would operate close to Chinese forces.

One wonders if the US Navy considered how it would react if Chinese battleships were sailing in circles in “international waters” in the Gulf of Mexico, or off the California coast for example.

There’s some good news: the defense officials emphasized that there is no intention to engage in combat with the Chinese.

And while the US military carries out these types of operations throughout the year, the proposal being circulated calls for several missions to take place in just a few days, an escalation that is sure to infuriate China.

So are the US and China on the verge of a shooting war? While one official described it as “just an idea”, it is said to be far enough along that there is a classified operational name attached to the proposal, which is circulating at several levels of the military. According to CNN, officials would not confirm the name of the potential operation.

The good news is that the US at least realizes that by pursuing this kind of naval action – one which would be equivalent to sending a bull in a China sea – US officials acknowledge China often see these missions as “provocations.” They also acknowledge that the intelligence community would have to weigh in with any concerns about reactions from China.

Which, however, will not stop the US; in fact, this may simply be the latest distraction pursued by the Trump administration:

The proposal is being driven by the military but carrying it out it during November when US mid-term elections are taking place could have political implications for the Trump administration if the US troops are challenged by China.

And where this strategy goes off the rails is that instead of just provoking China in its back yard, the US intends to do it, well, everywhere around the world. While the proposal for now focuses on a series of operations in the Pacific, near China, they could stretch as far as the west coast of South America where China is increasing its investments. If the initial proposal is approved, the missions could be expanded to Russian territory, because the only thing smarter than provoking China is provoking China and Russia.

Defense Secretary James Mattis and General Joseph Dunford, chairman of the Joint Chiefs of Staff, will take into account the diplomatic implications of each mission, officials said. They will also have to consider the risk of suddenly moving forces to new areas away from planned deployments, and whether potential threat areas are being left uncovered by the military, especially in the Middle East.

The proposal – which was still being considered within the military – grew out of the Pentagon’s National Defense Strategy which focuses on the growing military challenge posed by the Chinese and Russian militaries. Mattis has urged US commanders to come up with innovative and unexpected ways to deploy forces. Currently the aircraft carrier Harry S Truman is taking the unexpected step of operating in the North Sea – sending a signal to Russia that US military forces can extend their reach to that area. Next: several aircraft carriers parked in the South China Sea… just to send China a “signal”, one which China will waste no time responding to.

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America’s Offensive Cyber Strategy

Authored by Leonid Savin via OrientialReview.com,

On September 20, 2018 the White House released the US National Cyber Strategy, which was signed by President Donald Trump.

It probably delighted both hawks and Democrats. The former were pleased that the strategy includes new components that clearly indicate an expansionist momentum.  And the latter were gratified by the Trump administration’s renewed interest in the subject of cyberspace, since Donald Trump eliminated the position of White House cybersecurity coordinator after his election and significantly reduced spending in this area. But the president now seems to have reconsidered, as indicated by the fact that the 40-page document is in many respects a rehash of efforts from the Obama era.

US Secretary of Homeland Security Kirstjen Nielsen noted in her statement that “[t]oday’s National Cyber Strategy — the first in fifteen years — strengthens the government’s commitment to work in partnership with industry to combat those threats and secure our critical infrastructure.”

Her press release went on to say, “With respect to securing federal networks, for example, we have used our authorities to ensure agencies are updating and patching systems, strengthening their email security, and removing Kaspersky antivirus products from their systems.”

US Homeland Security Secretary Kirstjen Nielsen

Was this reference to the Russian company just a coincidence? Of course not. Even a cursory glance at this strategy drives home the point that Russia is being singled out as a militant enemy of the United States, and Washington is ready to start leaning hard on it.

It is also telling that several days before this document was released, an updated version of the US Department of Defense’s cyber strategy was published, which suggests that the Pentagon and the Trump administration are working in tandem to a certain extent. Their mutual interests are also evident from a comparison of statements from the summary of the two documents.

Here is the Pentagon’s strategy in a nutshell:

We are engaged in a long-term strategic competition with China and Russia. These States have expanded that competition to include persistent campaigns in and through cyberspace that pose long-term strategic risk to the Nation as well as to our allies and partners. China is eroding U.S. military overmatch and the Nation’s economic vitality by persistently exfiltrating sensitive information from U.S. public and private sector institutions. Russia has used cyber-enabled information operations to influence our population and challenge our democratic processes. Other actors, such as North Korea and Iran, have similarly employed malicious cyber activities to harm U.S. citizens and threaten U.S. interests. Globally, the scope and pace of malicious cyber activity continue to rise. The United States’ growing dependence on the cyberspace domain for nearly every essential civilian and military function makes this an urgent and unacceptable risk to the Nation.”

And the introduction of the US National Cyber Strategy states:

Russia, Iran, and North Korea conducted reckless cyber attacks that harmed American and international national businesses and our allies and partners … China engaged in cyber-enabled economic espionage and trillions of dollars of intellectual property theft … The Administration recognizes that the United States is engaged in a continuous competition against strategic adversaries, rogue states, and terrorist and criminal networks. Russia, China, Iran, and North Korea all use cyberspace as a means to challenge the United States, its allies, and partners … These adversaries use cyber tools to undermine our economy and democracy, steal our intellectual property, and sow discord in our democratic processes. We are vulnerable to peacetime cyber attacks against critical infrastructure, and the risk is growing that these countries will conduct cyber attacks against the United States during a crisis short of war. These adversaries are continually developing new and more effective cyber weapons.”

So, Russia is now being singled out in this very official way as an enemy of the US!

President Donald Trump walks to Air Force One on Sept. 19, 2018, at Andrews Air Force Base in Maryland.

And in order to combat these threats, both real and fictitious, the leaders of the US intend to embark upon a course of risk management, by introducing new information technologies, establishing priorities in business projects, and funneling government funds to cybersecurity contractors.

On pages 9 and 10 of the strategy, there are two subsections that refer to the global cybersecurity of maritime transportation and outer space. Since free and unfettered access to the sea, skies, and outer space is closely tied to America’s economic and national security, US control over those domains and the use of various technical means — from ships to future satellite systems — is listed as one of the priorities.

The tasks enumerated also include updates to electronic surveillance, which will enable intelligence agencies to monitor streams of data, the transfer of new powers to investigative and prosecuting agencies, and the development of new ways to prosecute individuals outside the United States (i.e., the citizens of foreign countries), as well as other active measures: “All instruments of national power are available to prevent, respond to, and deter malicious cyber activity against the United States.  This includes diplomatic, information, military (both kinetic and cyber), financial, intelligence, public attribution, and law enforcement capabilities.”

In other words, responses to a cyberattack can now include the imposition of sanctions, the coordination of a propaganda campaign in the puppet media, or a missile launch.

Speaking at a press conference in Washington, the US president’s National Security Advisor, John Bolton, noted specifically that the White House had “authorized offensive cyber operations… not because we want more offensive operations in cyberspace, but precisely to create the structures of deterrence that will demonstrate to adversaries that the cost of their engaging in operations against us is higher than they want to bear.” However, America’s historical approach to geopolitical (and military) deterrence is rife with interference in the affairs of other countries, including the orchestration of bloody coups and overt intervention under contrived pretexts (Haiti in 1993 springs to mind), which are precisely the ways in which the US operates.

By shifting these tactics into cyberspace, we can assume that DDoS attacks and the introduction of malware and spyware, as well as a variety of assaults against vulnerable “enemy” sites (and those could be anything from the servers belonging to banks and cellular service providers to databases belonging to private citizens, manufacturing infrastructure, or the various systems that provide essential social services), are the least of what we can expect from the Pentagon. It is possible that a few countries that have suitable experience in cybersecurity will manage to fend off such attacks.  But it is more than likely that some states will be unable to effectively and painlessly deflect them.

And even a kinetic response is mentioned! And that is solely a military prerogative. This is why we are quoting an excerpt from the US Department of Defense’s strategy.

The Pentagon’s document clearly states how this strategy will be carried out.

“Our strategic approach is based on mutually reinforcing lines of effort to build a more lethal force; compete and deter in cyberspace; expand alliances and partnerships; reform the Department; and cultivate talent.”

The first item openly attests to these aggressive military intentions:

“Our focus will be on fielding capabilities that are scalable, adaptable, and diverse to provide maximum flexibility to Joint Force commanders. The Joint Force will be capable of employing cyberspace operations throughout the spectrum of conflict, from day-to-day operations to wartime, in order to advance U.S. interests.”

To put it more simply, the US military is now literally getting a green light to launch cyberattacks and other cyber operations around the world.  You can even forget about any formal declaration of war, because that is a rather complex procedure in the US, and for many recent years American soldiers have been sent to various destinations abroad as part of military operations that do not officially meet the criteria for either war or stabilization campaigns. But the US is up to all kinds of legal shenanigans. And given that no clear definition exists of what constitutes “malicious acts in cyberspace” and the fact that that label could thus be used to snare anyone or anything, this trend in the US military and political establishment might set a sobering precedent.

What’s more, this is a clear signal for Washington to begin applying pressure through international organizations, primarily via the UN.  Since the United Nations has for many years served as a platform for debates over the regulation of global cyberspace, and the US has clearly been on the losing side in numerous high-level discussions about national jurisdiction, sovereignty, and responsibility, Washington seems to be trying to take its revenge — now resorting to accusations and the techniques of preemptive diplomacy (i.e., threats and blackmail — the proven tools of US foreign policy).

In this regard, it is no coincidence that the Global Security website highlighted one point from that strategy, which reads: “ADVANCING AMERICAN INFLUENCE: The National Cyber Strategy will preserve the long-term openness of the internet [sic], which supports and reinforces American interests.”

But how can the openness of the Internet promote US interests? Obviously that can only happen when the Americans set the rules of the game in cyberspace, like those the US has established that govern world trade through American control over banking transactions, stock exchanges, and other tools of the globalized economy. And if some countries refuse to follow Washington’s orders, they will be once again be labeled as pariahs and accused of acting maliciously. The refusal to adopt US standards will be treated as an act of war by other means against American citizens. This is as serious as the statement made by George W. Bush after the terrorist attacks in New York in September 2001, at which time he declared, “whoever is not with us is against us.”

And unsubstantiated allegations about the interference of “Russian hackers” in the US presidential election and about China’s industrial espionage against American companies might someday look like a naive example of much ado about nothing, compared with what Washington is about to plunge into.

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FBI Report Near Completion; Senators To Access Single Copy In Senate Safe

The FBI is nearly finished with their supplemental report on sexual misconduct allegations against Supreme Court nominee Brett Kavanaugh, after which they will send a single copy to Capitol Hill where it will be held in a Senate Judiciary Committee safe, two senior Senate sources told Fox News on Wednesday. 

Senate Democratic Whip Dick Durbin (Il), a member of the Judiciary Committee, said that preparations are underway to review the report on Thursday, while Republicans are putting strict limits on the viewing. 

According to Durbin, the one copy will be taken from the safe and made available to senators – with each party taking turns viewing it in one-hour increments. 

“Get this — one copy! For the United States Senate,” he said. “That’s what we were told. And we were also that we would be given one hour for the Dems, one hour for the Republicans. Alternating.

“We tried to reserve some time to read it. That is ridiculous,” he said. “One copy?!”

“Bizarre, it doesn’t make any sense,” he added. –The Hill

A senior Democratic aide confirmed the restrictive viewing conditions to The Hill, which notes that if all 100 senators decide to review the document and it takes each senator 30 minutes to read it, it could take up to 50 hours for the entire chamber to examine it. 

“Do the math,” said Durbin. “That’s a lot of time.”

Senator Bob Corker (R-TN) says that Senators will be able to view the FBI report in the “secure compartmented information facility” in the Capitol Visitor Center, which is large enough to hold a large group of senators. Corker has urged Senate Judiciary Committee Chairman Chuck Grassley (R-IA) to make several copies. 

Republican aides, however, say that alternating a single copy of an FBI background report between parties is typical practice for judicial nominees. 

Judiciary Committee Republicans on Tuesday tweeted out a 2009 memorandum of understanding stating that photocopying or other reproduction of the FBI background reports is prohibited.

It also states that notes and memoranda derived from the contents of the FBI background investigation reports may be made and shall be destroyed or secured in the same manner as the reports themselves.

Reports are considered confidential Senate Judiciary Committee documents and unauthorized disclosure of them is subject to punishment under the Senate rules. –The Hill

It is unclear whether any of the FBI report will be made public, however Senator John Thune (R-SD), the third-ranking Republican in the Senate, told Fox News that “some of it will probably make its way out into the public and into the mainstream.” 

“But most importantly, at least right now, is that all senators who are going to have the responsibility to vote on this nomination have an opportunity to review it, assess it and come to their own conclusions about what’s in there.”

And regardless of what the FBI concludes, we anticipate it won’t satisfy Democrats, who are already up in arms over the fact that the agency didn’t interview Kavanaugh accuser, Christine Blasey Ford or Kavanaugh as part of the probe, with sources saying that their congressional testimony last week was sufficient. 

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Georgetown Responds Amid Blacklash, Twitter Ban Of Prof’s “Rep Senators Deserve Miserable Deaths” Tweet

Authored by Zachary Petrizzo and Abigail Marone via Campus Reform,

Twitter suspended and removed verification from Georgetown University Distinguished Associate Professor Christine Fair‘s account on Tuesday, following a string of tweets in which she suggested that white Republican senators “deserved miserable deaths while feminists laugh” and that people should “castrate their corpses and feed them to swine.”

A Twitter spokesperson told Campus Reform that the professor’s account was suspended in error the first time. The account was restored hours later and the professor wasted no time in further expressing her views on the platform.

Fox News Failed to silence me.  Thank you all for sending @Twitter messages of support. I do NOT and NEVER have condoned violence. My tweet, as I have explained, was an attempt to make YOU as UNCOMFORTABLE as I am using the language of the abuse I receive[d] by the hundreds,” Fair tweeted on Tuesday afternoon.

“And let’s be very clear: Fox News says it cares about ‘campus safety’ while DELIBERATELY stoking angry herds to threaten the very safety of the same. Fox News and its minions is a mouthpiece of this anti-woman, racist, xphobic, bigoted regime,” Fair added.

Not long after Fair’s account was restored, however, it was once again suspended. Twitter did not return a request for comment from Campus Reform when asked why the account was suspended, restored, and then suspended again.

Fair’s Twitter suspension followed a tweet she sent over the weekend in which she suggested that Republican senators “deserve miserable deaths.” 

“Look at thus [sic] chorus of entitled white men justifying a serial rapist’s arrogated entitlement,” Fair tweeted on September 27, referencing a video of “Lindsey Graham’s tirade” during Thursday’s hearing with Judge Brett Kavanaugh.

“All of them deserve miserable deaths while feminists laugh as they take their last gasps. Bonus: we castrate their corpses and feed them to swine? Yes,” Fair concluded the tweet. 

“GOP doesn’t care about women,” Fair tweeted a week earlier. “We knew this. Fuck them.”

Campus Reform contacted Fair following both tweets. She responded by personally attacking both reporters on her blog site, the “Tenacious Hellpussy.” She describes the page as “A NASTY WOMAN POSTING FROM THE FRONTLINES OF FUCKERY.”

In her post, “When ‘Aunt Lydia’ of Campus Reform Tried to Launch Another Harassment Campaign: This is what she got,” Fair compared a female Campus Reform correspondent to Aunt Lydia from the Handmaid’s Tale. Aunt Lydia is a female character in the novel and show who works for the men to help them abuse other women.

“And you, Aunt Lydia, are a potential victim of this war as well even though you shill for those persons and institutions who sustain it and seek to perpetuate it,” Fair said in the post.

“Do you think your potential assailant will care that you enable the patriarchal structures that devalue our lives and the work we do and construct legal structures that privilege the attacker? Do you think complicit women and lousy men will be less likely to slut shame you because you are one of their paid-keyboards? No, Aunt Lydia.”

In a separate post, “When Campus Reform Tried to Bully Me: The ‘Reporter’ got This Response,” Fair accused another Campus Reform correspondent of “bullying” her in response to an email asking for clarification and comment regarding one of the professor’s tweets.

“You know what you’ll never see? A room full of man-hating female (cis or trans) legislators sitting around a table discussing coverage for your Viagra, your Cialis, your prostate preventative care, your prostate cancer, your gynecomastia (moobs if you will) if it becomes cancerous, etc.” she wrote in response to a request for comment from Campus Reform.

Amelia Irvine, a senior at Georgetown University, responded to Fair’s conduct in a statement to Campus Reform.

“It’s laughable that Twitter recognizes that Christine Fair’s comments were outside the bounds of civil discourse, while Georgetown University refuses to do so,” Irvine said.

“Why won’t Georgetown clearly tell professors and students that calling for violence against others is unacceptable?” 

“Georgetown urges members of our community to engage in robust, but respectful dialogue,” a Georgetown spokesman told Campus Reform

“While we protect speech and expression, we condemn uncivil and disrespectful discourse that is inconsistent with our values.”

“The views of faculty members expressed in their private capacities are their own and not the views of the University. Our policy does not prohibit speech based on the person presenting ideas or the content of those ideas, even when those ideas may be difficult, controversial or objectionable. While faculty members may exercise freedom of speech, we expect their classrooms and interaction with students to be free of bias and geared toward thoughtful, respectful dialogue.

In a separate statement, Georgetown University President John DeGioia added “we can and do strongly condemn the use of violent imagery, profanity, and insensitive labeling of individuals based on gender, ethnicity or political affiliation in any form of discourse. Such expressions go against our values.”

Nicole Neily, president of Speech First, offered a different perspective. Neily recalled the fact that Georgetown has adopted a version of the Chicago statement, which states, in part, “it is not the proper role of a university to insulate individuals from ideas and opinions they find unwelcome, disagreeable, or even deeply offensive. Deliberation or debate may not be suppressed because the ideas put forth are thought by some or even by most members of the University community to be offensive, unwise, immoral, or ill-conceived.”

Neily then added:

“Were Dr. Fair’s comments offensive, unwise, and ill-conceived? Yes. Should she be censured, suspended, fired, or otherwise punished for them? I don’t think so.”

A spokeswoman for University of Detroit Mercy President Dr. Antoine Garibaldi, who serves on Georgetown’s Board of Directors, told Campus Reform that Garibaldi “would not be comfortable commenting [for the story] because this is a Georgetown matter.”

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Yuan Tumbles, Tests Critical Support As Gold’s Golden Week Pattern Repeats

With most of China on holiday as Golden Week is in full swing, offshore yuan is plunging tonight – back near yesterday’s mini-flash-crash lows…

 

Testing critical support levels above the cycle lows from August…

Obviously there has been no fix this week by the PBOC but one wonders, amid the dollar strength and panic-selling of UST bonds, if The National Team will step in to support the yuan’s slide, or is this another subtle message for President Trump?

 

And while yuan is tumbling, as a reminder, Golden Week has a very predictable pattern in the precious metals markets. Here is what it did in 2017…

 

Who could have seen this coming?

Are traders front-running it this year?

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Honda Invests $2.75 Billion In GM’s Self-Driving Unit

Honda will invest $2.75 billion for a 5.7 percent stake in GM’s Cruise self-driving car unit, according to BloombergThe deal will consist of a $750 million equity investment up front, followed by $2 billion over 12 years to jointly develop self-driving vehicles for use in ride services fleets around the world. 

The new partnership is set to boost the global reach of GM’s self-driving technology, while accelerating deployment of autonomous Honda vehicles. GM will manufacture the electric vehicle, according to President Dan Ammann, however the two companies haven’t settled on the type of vehicle they will build. Ammann added that GM is still racing to deploy self-driving cars in ride-hailing applications next year based on the company’s Chevrolet Bolt. 

GM shares jumped after the investment from Honda, which will get a 5.7 percent stake in Cruise. The U.S. carmaker is a serious contender along with Waymo, Alphabet Inc.’s Google autonomous-vehicle unit. Analysts at Morgan Stanley have pegged the potential enterprise value of Waymo — widely perceived to be a leader in the space — at $175 billion. –Bloomberg

“It’s a clear indicator that market consolidation has begun,” said Grayson Brulte, co-founder of Brulte & Co. – an autonomy consulting firm. “The autonomous ecosystem is not a winner takes all scenario and we don’t need 20 different autonomous systems. Partners will have to be on the same team with a common goal of deploying multiple types of autonomous vehicles based on consumer wants and needs.” 

GM’s share price jumped as much as 5.3% Wednesday – its largest intraday jump since May 31, after GM’s Cruise division got a $2.25 billion investment from SoftBank Vision Fund in May. 

That said, the GM-Honda deal is exclusive according to Honda COO Seiji Kuraishi, which raises questions over Honda’s plans to work with Google offshoot Waymo. The two companies announced in late 2016 that they were in discussions, however there has been no follow-up, and Kuraishi wouldn’t discuss the situation. 

The investment by Honda brings the Cruise division’s value up to $14.6 billion, up from $11.5 billion when SoftBank made its investment. GM acquired Cruise for $581 million in cash around two years ago. According to Bloomberg, the deal was said to have actually cost the company closer to $1 billion when factoring in bonuses and other payments to key employees. 

Honda and GM are already partners on battery technology and hydrogen fuel cells, which suggests that their self-driving car might even use said technology. It would make sense according to GM’s executive VP of product development, Mark Reuss, who says that hydrogen refueling stations are perfect for cars with a set route in a limited area, such as ride-sharing vehicles. Since fuel cells can refuel much faster than electric car batteries, it might be the perfect solution. 

“The pieces are all there,” Reuss said. “The refueling times would be much smaller.”

GM Cruise and Waymo are often described as leading the pack of technology and auto companies competing to create self-driving cars and integrate them into ride services fleets.

Honda executive Seiji Kuraishi said: “This investment is based on a shared vision and their (GM’s and Cruise’s) superior technologies in this area.” –Reuters

GM’s Cruise unit has a test fleet of more than 100 self-driving versions of the Bolt AV, rebadged as the Cruise AV. 

Other manufacturers meanwhile have been teaming up for similar projects, with Ford and BMW planning on a self-driving vehicle by 2021, and Daimler and Renault pairing up to possibly expand their cooperation on batteries, self-driving vehicles and mobility services.  

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JGB Market Enters “Uncharted Territory” As Bond Rout Goes Global

After today’s US Treasury rout which sent the 10Y yield as high as 3.20%, all eyes have turned to Japan where the BOJ has been already actively signaling it is tapering purchases on the long end following several announcements that it is shrinking the size of the 25 year+ rinban bucket.

And sure enough, it didn’t take long for JGBs to get routed, with the 10Y bond yield first rising to 0.145%, the critical support level that was hit on August 2 when  when Japanese bonds were sent on a wild rollercoaster ride, culminating with the BOJ surprise offer to buy JPY 400BN worth of bonds. And as panicked traders looked on, hoping for some Kuroda to step up, there was no intervention tonight, and predictably yields resumed moving higher, rising as high as 0.153%.

Today’s push higher in Japanese yields also came after 10-year debt rolled over to a new benchmark following an auction Tuesday and amid continued selling pressure for long-end JGBs ever since the BOJ unexpectedly cut buying in bonds due in more than 25 years on Sept. 21.

Commenting on the morning’s move, Toru Suehiro, senior market economist at Mizuho Securities in Tokyo said that Japan’s bond yields are entering an “uncharted territory.”

According to Suehiro, the only limiting factor on tonight’s bond rout out is the expectation that the BOJ may intervene, otherwise yields could have risen more considering the sell-offs in Treasuries. The strategist said that should the central bank decide to step into the market on Thursday, it’s probably “safe” for BOJ to conduct an unscheduled normal purchase operation – the same one it did on August 2 – rather than a fixed-rate buying which could get market participants too fixated on a certain level.

And while the Mizuho analyst is confident that even if there’s no operation, “the market is unlikely to sell into a steep sell-off” although we disagree, and the higher in “uncharted” territory yields go without a BOJ intervention, the faster the selling, until the benchmark 10Y yield hits the BOJ’s 0.20% upper barrier. What happens then is unclear, because with the BOJ already engaging in tapering and contemplating normalization of the bond market, it will be forced to defend the bond market just as local and foreign institutions finally press the central bank, testing its true resolve – and capability – to defend the Japanese bond market from a full blown collapse.

Meanwhile, as Bloomberg’s Mark Cranfield notes, “Kuroda isn’t suddenly going to turn into a policy hawk”, so JGB yields will only drift higher amid a regular dose of dovish comments when he speaks to Japan’s parliament. As such, curve steepening at the super-long sector is likely to be the most visible sign bond bears are in charge.

 

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Surveillance State: Those Signs Showing Your Speed May Be Spying On You

Authored by Mac Slavo via SHTFplan.com,

Those signs that show you how fast you are traveling may be a part of a United States government surveillance program. That sign might not only be there to remind you what the speed limit is but a part of a dystopian “Big Brother” spy network.

“There used to be an old police saying, ‘If you robbed a bank, please drive carefully,’” former NYPD Detective Sergeant and Bronx Cold Case Squad commander Joseph Giacalone told Quartz. Giacalone that if a getaway driver didn’t do anything to attract the attention of police and get pulled over, they usually had a half-decent chance of fleeing.

“But that’s no longer in effect because you can drive slow, you can stop at every red light, but these license plate readers and surveillance cameras track your every movement.”

According to recently released US federal contracting data, the Drug Enforcement Administration will be expanding the footprint of its nationwide surveillance network with the purchase of “multiple” trailer-mounted speed displays “to be retrofitted as mobile LPR [License Plate Reader] platforms.” The DEA is buying them from RU2 Systems Inc., a private Mesa, Arizona company.  But that’s not all.  Two other related contracts have been found, as reported by Quartz.

The two contracts show that the DEA has hired a small machine shop in California, and another in Virginia, to conceal the readers within the signs. An RU2 representative said the company providing the LPR devices themselves is a Canadian firm called Genetec. The DEA’s most recent budget describes the program as “a federation of independent federal, state, local, and tribal law enforcement license plate readers linked into a cooperative system, designed to enhance the ability of law enforcement agencies to interdict drug traffickers, money launderers or other criminal activities on high drug and money trafficking corridors and other public roadways throughout the U.S.” But focuses primarily along the southwest border region, and the country’s northeast and southeast corridors.

The problem, however, is a big one.

What is, on the one hand, a game-changing crime-fighting tool, is also, on the other hand, a privacy overreach of near-existential proportion to innocents. License plate readers, which can capture around 2,000 plates a minute, cast a privacy-trampling wide net that has made it far easier for cops to catch serious criminals. But that requires the real-time collection, along with the storage of the data of innocents by authorities for later data mining and is highly alarming to privacy advocates.

“License plate readers are inherently a form of mass surveillance,” investigative researcher Dave Maass of the nonprofit Electronic Frontier Foundation told Quartz.

“You look at something like a wiretap and most of the time it’s looking for a specific person and capturing specific conversations with that person. But here they are collecting information on everybody, not all of whom have been accused of a crime, in case they may one day commit a crime. This is un-American.

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Top FBI Lawyer Flips: Russia Probe Was Handled In “Abnormal Fashion” And Rife With “Political Bias”

James Baker, a former top FBI lawyer, told congressional investigators on Wednesday that the Russia probe was handled in an “abnormal fashion” and was rife with “political bias” according to Fox News, citing two Republican lawmakers present for the closed-door deposition. 

“Some of the things that were shared were explosive in nature,” Rep. Mark Meadows, R-N.C., told Fox News. “This witness confirmed that things were done in an abnormal fashion. That’s extremely troubling.”

Meadows claimed the “abnormal” handling of the probe into alleged coordination between Russian officials and the Trump presidential campaign was “a reflection of inherent bias that seems to be evident in certain circles.” The FBI agent who opened the Russia case, Peter Strzok, FBI lawyer Lisa Page and others sent politically charged texts, and have since left the bureau. –Fox News

Baker, who worked closely with former FBI Director James Comey, left the bureau earlier this year. 

Lawmakers did not provide any specifics about the interview, citing a confidentiality agreement signed with Baker and his attorneys, however they said that he was cooperative and forthcoming about the beginnings of the Russia probe in 2016, as well as the FISA surveillance warrant application to spy on former Trump campaign aide Carter Page. 

“During the time that the FBI was putting — that DOJ and FBI were putting together the FISA (surveillance warrant) during the time prior to the election — there was another source giving information directly to the FBI, which we found the source to be pretty explosive,” said Rep. Jim Jordan, R-Ohio.

Meadows and Jordan would not elaborate on the source, or answer questions about whether the source was a reporter. They did stress that the source who provided information to the FBI’s Russia case was not previously known to congressional investigators. –Fox News

 Developing… 

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Democratic Staffer For Sheila Jackson Lee Arrested In GOP Doxing

A 27-year-old intern for Rep. Sheila Jackson Lee (D-TX) has been arrested by the US Capitol Police for posting private, identifying information (Doxing) of several Senators to Wikipedia, according to the USCP, after the personal information of Republican Senators Lindsey Graham, Mike Lee and Orrin Hatch was posted to Wikipedia Thursday during the hearing of Supreme Court nominee Judge Brett Kavanaugh, which included home addresses and phone numbers. 

The suspect, Jackson A. Cosko of Washington D.C. has initially been charged with witness tampering, threats in interstate communications, unauthorized access of a government computer, identity theft, second degree burglary and unlawful entry. 

Cosko, who was fired after his arrest, previously worked for Sen. Maggie Hassan (D-NH) and Barbara Boxer (D-CA). 

Notably, Sheila Jackson Lee handed the attorney for Kavanaugh accuser Christine Blasey Ford a mysterious envelope right around the same time her staffer was allegedly doxing the GOP senators.  

As a result of the information being made public, Sen. Hatch’s wife “has been receiving calls nonstop ON HER BIRTHDAY and their home address was made public,” according to Caleb Hull, director of content at the Republican technology firm Targeted Victory. 

The IP address used to “doxx” the Senators was quickly traced back to the House of Representatives… 

It was initially reported to be traced back to a staffer for Rep. Maxine Waters (D-CA), who immediately denied the charge – saying she is “utterly disgusted by the spread of the completely false, absurd, and dangerous lies and conspiracy theories that are being pedaled by ultra-right wing pundits, outlets, and websites who are promoting a fraudulent claim that a member of my staff was responsible for the release of the personal information of Members of the United States Senate on Wikipedia.”

Waters also claimed that “the United States Capitol Police and our internal IT specialist have determined that the IP address in question does not belong to my office or anyone on my staff. The member of my staff – whose identity, personal information, and safety have been compromised as a result of these fraudulent and false allegations – was in no way responsible for the leak of this information. My office has alerted the appropriate authorities and law enforcement entities of these fraudulent claims.”

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