United We Fall, Divided We Stand

Authored by Robert Gore at Straight Line Logic blog,

Unity is not all it’s cracked up to be…

Everything I said is contained in a single word—collectivism. And isn’t that the god of our century? To act together. To think—together. To feel—together. To unite, to agree, to obey. To obey, to serve, to sacrifice. Divide and conquer—first. But then—unite and rule. We’ve discovered that one at last. Remember the Roman Emperor who said he wished humanity had a single neck so he could cut it? People have laughed at him for centuries. But we’ll have the last laugh. We’ve accomplished what he couldn’t accomplish. We’ve taught men to unite. This makes one neck ready for one leash. We found the magic word. Collectivism.

Ellsworth Toohey to Peter Keating, The Fountainhead, Ayn Rand, 1943

Countless commentators have decried disunity. They fret about our divided nation, warn of impending civil war, and implore us to come together to avert it. Unity’s desirability is taken as given, but what if the longed-for unity is that of passengers on a jet plunging into the ocean? A reappraisal of disunity is in order.

Unity was doomed with the passage of the 16th, or Income Tax, Amendment. It’s hard to feel any goodwill towards a government that forcibly relieves you of what you’ve produced, benefitting itself and those to whom it redistributes. The income tax divides the country into makers and takers, a division that cannot be bridged.

For the productive, “Unite!” is a poisonous bromide, code for: support your own slavery. For a long time they bit their tongues and holstered their weapons as perpetually expanding government and its partner in crime, the Federal Reserve, took an increasing portion of what they produced, made it increasingly difficult to produce, loaded the country with a pile of debt and unfunded liabilities that cannot be paid, and depreciated the unit of exchange. Boxed in, a shrinking minority, the country they and their productive forebears built circling the drain, some are finally realizing they are underwriting their own servitude.

With whom are the productive to unite? The politicians who believe they have first claim on all income, ignore or marginalize anyone who points out that it’s not their money, and reject accountability for how they spend it? Government employees “working” paper-shuffling sinecures? A military-industrial-intelligence complex milking perpetual war for all it’s worth? Rabid recipients demanding still more unearned benefits: higher education, health care, housing, and whatever other goodies to which they feel entitled?

If there were any goodwill—a sentiment that promotes unity—among those groups, one would expect gratitude towards those who provide their sustenance. SLL knows of no instance where a taxpayer received a thank you note from a government beneficiary. Even suggesting it would be met with derision from many of them, who believe they have a “right” to what they receive. Unity for this crowd means: “Shut up and get with the program!”

Enslavement of the producer class has not been mentioned as a decisive issue in the 2016 election. Nobody—Trump included—in the current constellation of power wants to question the servitude that pays for bullets, bombs, welfare, veterans benefits, corporate subsidies, agricultural support payments, interest on the debt, clean energy programs, infrastructure, grandma’s pension and medical care, and so on.

A few crazed libertarians whisper that people should be able to either keep what they’ve legitimately produced or voluntarily exchange it for something they value more. Everyone else has one or more cherished government programs that receive money wrested from their fellow Americans.

Yet, the producer-recipient divide is the yawning chasm in American politics. Take Trump’s signature issue, immigration. Are people who support him xenophobic racists, or do they believe that many illegal immigrants avail themselves of government-provided goods and services for which the productive must pay, and those who find employment lower wages for the rest of the labor force?

No doubt some Trump supporters are the former, and they get all the media attention, but many Trump supporters are motivated by self-interested economic considerations. The obvious truth, which elites in both the US and Europe ignore and suppress, is that an open-arms welfare state is incompatible with welcome-mat immigration. The common sense notion—if you hand out money they will come—should have stopped this nonsense before it ever began.

Who gets what and who pays for it are the questions floating over every issue in American politics. Put aside statistical noise and deliberate obfuscation and it’s clear the tired-of-paying-for-it contingent was a big factor in Trump’s victory. If the cleavage is this dramatic now, what happens when crisis hits and the debt-saturated financial system collapses?

As the bill comes due, how many producers will have either the desire or the capability to pay it? How many recipients will recognize that funding is insufficient for their “rights,” entitlements, payola, and scams and adjust to the new reality? The answers do not augur well for unity. Rampant disunity will rend a cataclysmic fissure that, in combination with fiscal exhaustion, will imperil warfare-welfare state governments.

It is long overdue. Governments are colossal, cancerous carbuncles whose malignant purposes and practices threaten the wellbeing and lives of those who pay for them. Their calls for unity are thinly veiled threats to accept its depredations. The or else has arrived and will become increasingly tyrannical, until the tyrants have figuratively, and in many cases literally, killed the geese laying their golden eggs.

Governments are collectivism and control—unity under tyranny. According to IRS data for 2015, the latest year available, 45 percent of American households paid no taxes, the top 50 percent by income paid 97.2 percent, and the top 1 percent, with 21 percent of the nation’s income, paid 39 percent. Those statistics are a clarion call for disunity. If producers decided en masse, a la Atlas Shrugged, to secede from current arrangements, those arrangements would collapse.

If you’re footing the bill, isn’t that the desired outcome? Most divorces would be more amicable if they began earlier, after it was obvious the divorce was inevitable but while there was still some comity between the parties. Right now, before the inevitable collapse, a managed process of dissolution, managed disunity if you will, would be more desirable than the messy break-up that’s coming.

There’s nothing sacrosanct about political arrangements whereby fifty states send a good share of their production to a federal government that grows ever more powerful, intrusive, and repressive. But because the government and its political support depend parasitically on that production, managed dissolution will never happen. Imagine a split of the US between its maker and taker regions into two nations. How long would the latter last?

So is producers’ secession a pipe dream? Not at all, because crisis and unmanaged dissolution will happen. The pipe dream is that the government’s roughly 3.4 million civilian and 1.4 million military personnel will be able to suppress, manage, or contain uprisings fueled by an appreciable portion of the rest of country’s 325 million people. Yes the government has bullets, bombs, surveillance, data bases, and prisons. Insurrectionists of all stripes will have their own bullets and bombs, sheer numbers, anger, desperation, hackers, and guerrilla warfare, which numerous foreign engagements have demonstrated the US military’s inability to quell. Chaos is the betting favorite.

The shattering will present producers with our best opportunity since the American Revolution (the US disuniting from Great Britain) to defend territory and set up political arrangements based on liberty, individual rights, honest production, and voluntary exchange. In the meantime, we must reject our oppressors’ calls for unity. It isn’t free and we’re paying for it. Disunity is our path to freedom.

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“Separatists Are Not People”: Explosive AP Footage Of Ukrainian Far-Right “Summer Camp” For Kids

Years after a wave of independent media articles and analysts began detailing the neo-Nazi roots and ideology of some of the chief Ukrainian paramilitary groups behind the Kiev putsch in 2014, a rare Associated Press article has spotlighted a Ukrainian summer camp that teaches kids to hate and kill pro-Russian Ukrainians

The AP story begins shockingly enough:

The campers, some clad in combat fatigues, carefully aim their assault rifles. Their instructor offers advice: Don’t think of your target as a human being.

So when these boys and girls shoot, they will shoot to kill.

AP journalists and photographers observed the far-right “summer camp”. via AP

The Ukrainian far-right party ‘Svoboda’ is hosting the camp called the “Temper of Will” where children as young as eight receive weapons training while being indoctrinated against “Russian aggression” as well as the “perversions” of the West like diversity and multiculturalism. Among the slogans the AP documented the children being exposed to include “White Europe is Our Goal.”

But perhaps the only truly shocking thing is that the mainstream would actually dive deep on a subject that exposes some of the very groups that receive both political and in some cases military support from the United States and Europe.

After all, the very militia running what is essentially a neo-Nazi and anti-Russian xenophobic camp is under a political party that holds seats in the Ukrainian parliament, while Andrey Parubiy – political leader of Svobada is the parliament’s chairman.

“We never aim guns at people,” instructor Yuri “Chornota” Cherkashin was quoted by the AP as teaching the campers. “But we don’t count separatists, little green men, occupiers from Moscow, as people. So we can and should aim at them.” The AP observed instructors explicitly teaching children that they should seek to wipe out pro-Russian Ukrainian separatists. 

Campers endure military boot camp style drills with formal survivalist classes and nationalist lessons in between, which further involves at times being woken in the middle of the night with blasts from stun grenades, and being expected to carry heavy AK-47 assault rifles all day. 

The AP captured raw footage of the youth training at the camp in western Ukraine:

One camper told the AP his purpose at the Svoboda sponsored camp was to “To study how to protect myself and my loved ones.” The AP confirmed that such camps have received official funding from the government’s Ministry of Youth and Sports in order to receive a “national patriotic education” (more American tax dollars at work perhaps?).

Attempting to distance itself from the outright neo-Nazi slogans and ideology advanced at such camps, Ministry spokeswoman Natalia Vernigora claimed the money was distributed by a panel which looks for “signs of xenophobia and discrimination, [but] it doesn’t analyze activities of specific groups.”

Camp courses include preaching against the “decadence” of the West, according to the AP footage:

The timing of the AP’s rare coverage is interesting as it comes at a moment when Washington is quietly increasing the quantity the lethal weapons and military supplies given to Ukraine.

Unfortunately, however, we don’t expect such a bombshell story to continue driving headlines or make it onto prime time CNN coverage. 

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Pound Rallies As Key Cabinet Ministers Begrudgingly Back May’s Brexit Plan

After nearly two years of painstaking negotiations, UK Prime Minister Theresa May appears to have finally secured a Brexit deal that has received the begrudging support of her cabinet. The pound rallied Tuesday evening, breaking above $1.30 as traders’ swallowed their doubts and embraced what, if accurate, could be a groundbreaking report from the Sun’s chief political correspondent, Tom Newton Dunn.

According to Dunn, Brexit Secretary Dominic Raab, Foreign Secretary Jeremy Hunt, Home Secretary Sajid Javid, Environment Secretary Michael Gove, Transport Secretary Chris Grayling and Commons Leader Andrea Leadsom have all begrudgingly agreed to back May’s 500-page plus revised Brexit plan after the prime minister pleaded with them to acquiesce “in the national interest.”

Prepping the ground, The Sun has learned that Mrs May told the Cabinet’s regular weekly meeting [Tuesday] morning: “We will have to sit there as a Cabinet and consider what is in the national interest”.

A senior No10 source added that the PM will tell today’s showdown that the negotiation “has been pushed as far as it can go” and that the UK “cannot get any better deal than this one”.

The source added: “The PM is firmly of the view that the deal will not be improved by dragging it out any longer”.

[…]

They included Brexit Secretary Dominic Raab, Foreign Secretary Jeremy Hunt, Home Secretary Sajid Javid, Environment Secretary Michael Gove, Transport Secretary Chris Grayling and Commons Leader Andrea Leadsom.

The Sun understands that none of the key players are expected to resign today, with all grudgingly agreeing to go along with her plan at least for now.

The news sent the pound rallying Tuesday evening: GBP/USD climbed as much as 0.5% to 1.3036, breaching its 55-day moving average and nearing its Nov. 7 high of 1.3175.

GBP

While many members of May’s conservative party, including avowed Brexiteers like Jacob Reese-Mogg, remain opposed to the current iteration of the so-called Brexit “backstop” – which calls for the entirety of the UK to remain inside the EU Customs Union until an agreement on a new trade deal can be reached, something Reese-Mogg and Boris Johnson have said risks transforming the UK into a vassal state – it appears May might finally have enough votes to push the deal through parliament.

May

Of course, resorting to the hard-sell approach of demanding votes in “the national interest” has always been part of May’s plan, as details from May’s strategy for selling the (then still unfinished) deal showed late last month.

Apparently, enough of May’s allies agree, as the rhetoric circulating around Westminster was that, though May’s draft deal “isn’t perfect”, it did include some key wins.

But Mrs May’s allies claimed that while the deal is not perfect, it was “the best anyone could get”, and she has pulled off some key wins.

They include throwing out a Brussels bid to enforce a customs border down the Irish Sea, and an independent panel to arbitrate over if the Irish border backstop should end when either side stops acting in good faith.

Theresa May last night pleaded with tortured Cabinet ministers to act in “the national interest” and back her compromise Brexit deal with the EU.

After meeting with her key cabinet ministers one by one on Tuesday, May successfully persuaded them to support the deal during a grueling three-hour meeting. If the cabinet formally approves the deal on Wednesday, then EU chief negotiator Michel Barnier will call for a meeting of the 28 EU leaders on Nov. 25 to finalized the draft agreement. After that, it will be put up for a vote in the House of Commons.

Aside from Reese-Mogg and BoJo, who appear to be digging in their heels, many of the Brexiteers have finally acquiesced, perhaps sensing that they had few alternatives aside from a “no-deal” Brexit. However, Democratic Unionist Party of Northern Ireland, upon whom May depends for 10 votes in Parliament, remains opposed to the draft agreement (though the text of the deal won’t be released until it’s formally approved by the cabinet, the highlights have already leaked).

DUP leader Arlene Foster, whose 10 MPs’ votes are crucial to Mrs May, last night declared that any new trade barriers between Northern Ireland and the UK are “not acceptable.”

It would also be “democratically unacceptable” for Northern Ireland trade rules to be set by Brussels, she added.

Issuing an ominous warning to the PM, Ms Foster added: “These are momentous days and the decisions being taken will have long-lasting ramifications.

“The Prime Minister must win the support of the Cabinet and the House of Commons. Every individual vote will count.”

If May fails to win support for the deal, either from her cabinet, or from Parliament, she could face a leadership challenge as simmering resentments against her administration break out into open hostility. And while the Sun and May would like us all to believe that this time is different – that she finally has a deal that might pass muster in the House of Commons – this wouldn’t be the first time we’ve heard that, only for a “finalized” deal to collapse. Just remember: It’s not over until the vote totals are in.

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Progressives Zero-In On Exit-Tax On Illinois Wealth

Authored by Mark Glennon via Wirepoints.com,

Eureka! They figured out a way to tax wealthy folks trying to flee Illinois: A progressive real estate transfer tax, and the idea seems to be getting popular.

An Op-Ed yesterday in the Chicago Sun-Times by Daniel Kay Hertz of the Center for Tax Budget Accountability and Marisa Novara of the Metropolitan Planning Council made the case for it in Chicago. Evanston already voted in favor of it Tuesday.

Chicago today has a real estate transfer tax of $5.25 per $500 of property value, but the city should stick pricey homes with a higher rate, say the authors.

They weren’t specific about what rates they favor, but the ballot measure passed in Evanston, as Crain’s reported, calls for a transfer tax increase of 40 percent to establish a new rate of $7 for every $1,000 of value for sales between $1.5 million and $5 million and an increase of 80 percent to establish a new rate of $9 for every $1,000 of value for sales over $5 million. Evanston’s current rate is $5 for every $1,000 of value.

If the concept flies, nobody knows where the rates will eventually end up.

You may remember a recent proposal by three Chicago Federal Reserve bank economists to establish a statewide property tax. Their express reasoning was that property can’t flee, so that’s what Illinois should tax. Proponents of progressive transfer taxes don’t say it, but their true rationale undoubtedly is similar. Think you’re going to sell your expensive home and move to Tennessee? Sorry, that will cost you.

The statewide property tax idea set off a firestorm of objections. Our article on it alone had over a million pageviews, and preemptive ballot measures opposing it passed overwhelmingly in a number of Illinois areas on Tuesday. The general public doesn’t like the idea of the statewide property tax, but a transfer tax only on the wealthy? Why not? Maybe that’s why Evanston Now reported their city may “start a trend.”

Mayor Rahm Emanuel has already opposed the idea, but he will be gone next year. A proposed Chicago ordinance is pending to put the idea on the Feb. 26 election ballot, as a referendum question. And Hertz’s comrade at the CTBA, Ralph Martire, is on the budget committee of Governor-elect Pritzker’s transition team. So, we’ll have to see how far this goes.

This is scary stuff – seizure of property before it can escape.

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Malaysian Prime Minister Fumes “Obviously We Have Been Cheated By Goldman Sachs”

Goldman Sachs famously avoided liability after the Libyan Investment Authority accused the bank of squandering more than $1.5 billion belonging to the country’s sovereign wealth fund after the bank plied employees of the fund with “hookers and five-star hotels” before losing all of their money in complex derivatives trades. But as the DOJ ramps up an investigation into the bank’s role in the sprawling 1MDB scandal (the federal government believes Goldman helped now-jailed former Malaysian Prime Minister Najib Razak siphon $4.5 billion from the fund), it’s looking like the bank (and possibly its ex-CEO Lloyd Blankfein, whose involvement in the scandal was recently revealed by Bloomberg) may not escape culpability this time.

Malay

Yesterday, Goldman shares cemented their largest two-day drop since 2010, crashing to a two-year low after Malaysian Finance Minister Lim Guan Eng demanded a “full refund” of the $600 million in fees that Goldman charged Malaysia for the three 1MDB bond offerings underwritten by the bank. Eng also demanded that Goldman repay the “interest-rate differential” that Malaysia paid, which was 100 basis points over the benchmark rate. Goldman has argued that it demanded such high fees because it took many of the unrated bonds on to its balance sheet, increasing its exposure, because Malaysia said it wanted the money “right away” for “development projects”. Of course, Goldman had sold the local currency bonds long before 1MDB defaulted in April 2016.

And on Tuesday, Malaysia turned up the heat when the country’s 93-year-old Prime Minister Mahathir Mohamad accused Goldman bankers during an interview with CNBC of “cheating” Malaysia (though he also said the country wanted to “see the results” of the DOJ’s investigation).

“There is evidence that Goldman Sachs has done things that are wrong,” Mahathir said.

“Obviously we have been cheated through the compliance by Goldman Sachs people,” he said, without specifying details.

The bank’s compliance controls “don’t work very well,” he added.

A Goldman spokesman in Asia declined to comment on Mahathir’s comments.

Meanwhile, Mahathir’s appointed successor Datuk Seri Anwar Ibrahim told the Malaysian parliament that it needed to take “more aggressive measures” to reclaim the fees and losses “due to the effects on Malaysia’s image”.

Former Prime Minister Najib Razak will get a fair trial: Malaysia’s Mahathir from CNBC.

Speaking on Tuesday, Lim reiterated that Malaysia wanted to reclaim the fees paid to Goldman Sachs, and added that the country would seek damages as well.

“The Malaysian government will want to reclaim all the fees paid, as well as all the losses including the interest rate differential,” he said.

Lim did not say how Malaysia would pursue repayment, other than that he would leave it up to the country’s attorney general. Though Reuters reported back in June that the country was considering asking the DOJ to force Goldman to repay Malaysia.

Considering that the DOJ has already seized hundreds of millions of dollars’ worth of assets allegedly purchased with stolen money, most of which were purportedly bought by Jho Low, the free-spending Malaysian financier at the center of the scandal, it’s very possible that the DOJ might honor this request. But with prosecutors reportedly taking a close look at the role played by the bank’s former co-head of investment banking Andrea Vella, per the FT, one thing is clear: This is far from over. And although Goldman has set aside hundreds of millions of dollars in legal reserves, investors will increasingly find themselves asking: Will this be enough?

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Peter Schiff Warns A Divided Congress Means Even Bigger Deficits

Authored by Mac Slavo via SHTFplan.com,

Economic advisor Peter Schiff has long been warning of the false stability and phony prosperity we are seeing the markets. He’s now saying that since the elections, it is about to get much worse, as a divided Congress means even bigger deficits.

It’s difficult to imagine the United States government spending even more money than they already do.  But Schiff says this is the new reality under a politically divided Congress, according to Seeking Alpha.  The blue wave, which turned out to be more like a blue ripple, will force gridlock in the government, which is great news for anyone favoring smaller government and less interference in their everyday lives by the sociopaths claiming the right to rule over them.  But a divided government also means larger deficits because Democrats don’t want to do anything about the government’s spending problem.

Peter believes that president Donald Trump will actually do substantial harm to the economy by working with House Democrats to pass some kind of economic stimulus in 2019.  That major disaster will see the economy begin to slow down.

I think the next fiscal stimulus is going to be more of a spending stimulus – an infrastructure plan. Just more money spent to kind of prime the pump Keynesian-style.” Peter Schiff

This wouldn’t be at all out of character for the Trump, either. He talked frequently about an enormous infrastructure plan during his campaign. He certainly wouldn’t have much trouble convincing Democrats that this level of spending is a good idea. The Republican-controlled Senate might be a little tougher sell, but Trump likely raised his stock among Republicans with the elections and will probably have even more pull than he did during his first two years.

I think Trump is going to try to position himself as a guy that can cross the aisle and work with the other side, especially going into the 2020 elections… so we’re probably going to get big increases in government spending.” –Peter Schiff

That’s horrific news considering the Federal Reserve has plans to continue to raise interest rates too. Schiff also said that he feels that there may some middle-class tax cuts to help relieve some of the economic pain, but those won’t impact the broader economy.

“In other words, these tax cuts won’t even create the appearance of growing the economy. They’re simply going to grow the debt and lead to higher inflation. It is going to feed the stagflationary fire that will be burning. This is going to be negative for the dollar. This is going to be positive for gold. This is going to be very positive for investments outside the United States.” –Peter Schiff

Schiff also warns that the household debt situation, which is worsening in the United States, will play a role in the next economic downturn.

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Silver Cheapest To Gold In 25 Years – Watch China

With decelerating global (most notably Chinese) economic growth curbing industrial demand for silver just as gold benefits from financial market volatility-inspired safe-haven appeal – amid tightening tightening financial conditions – Silver is the cheapest to gold since 1993 as slowing economic growth clouds the outlook for metals with industrial uses.

Spot silver has tumbled 17 percent this year to close at an almost three-year low on Monday, while gold’s lost less than 8 percent after turmoil in world equity markets boosted prices in October.

However, another commodity is rapidly losing value against silver in recent weeks…

Oil reached what appears to be some limit around 5 oz of silver per barrel in early October and has plummeted in value relative to silver since. Makes one wonder if there is some underlying petrodollar-peg that keeps oil trading between 2.5 and 5 ounces of silver per barrel?

And amid today’s carnage, WTI gave up all its relative gains to gold for the year…

There has certainly been an odd ‘peg’ to Gold this year in yuan terms…until China briefly lost control in October…

But since President Trump was elected in Nov 2016, gold has been far more stable in Yuan terms than in dollars…

Indeed, as Goldman Sachs recently noted, post-November 2016 Swiss gold exports to China have become much more sensitive to both the dollar gold price and the CNY exchange rate.

The change in gold purchasing pattern coincided with the election of President Trump, who promised to get tough on China during his election campaign. Given that our economists don’t expect the US China trade tensions to go away anytime soon we would expect the CNY sensitivity of Chinese gold purchases to remain elevated.

As Goldman concluded, our Fear and Wealth framework suggests solid fundamentals for gold. A low and falling US unemployment rate combined with slowing growth and rising inflation should boost “fear” related DM gold demand. A rebound in EM dollar GDP increases their gold demand through the “wealth” channel. On top of this, rising geopolitical tensions create upside risk to central bank gold demand.

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Pat Buchanan Blasts Macron: “What Country Do You Put First?”

Authored by Patrick Buchanan via Buchanan.org,

“Patriotism is the exact opposite of nationalism; nationalism is a betrayal of patriotism.”

As for Trump’s policy of “America first,” Macron trashed such atavistic thinking in this new age:

“By saying we put ourselves first and the others don’t matter, we erase what a nation holds dearest, what gives it life, what makes it great and what is essential: its moral values.”

Though he is being hailed as Europe’s new anti-Trump leader who will stand up for transnationalism and globalism, Macron reveals his ignorance of America.

Trump’s ideas are not ideological but rooted in our country’s history.

America was born between the end of the French and Indian War, the Declaration of Independence in 1776 and the ratification of the Constitution in 1788. Both the general who led us in the Revolution and the author of that declaration became president. Both put America first. And both counseled their countrymen to avoid “entangling” or “permanent” alliances with any other nation, as we did for 160 years.

Were George Washington and Thomas Jefferson lacking in patriotism?

When Woodrow Wilson, after being re-elected in 1916 on the slogan “He Kept Us Out of War,” took us into World War I, he did so as an “associate,” not as an Allied power. U.S. troops fought under U.S. command.

After that war, the U.S. Senate rejected an alliance with France. Under Franklin Roosevelt, Congress formally voted for neutrality in any future European war.

The U.S. emerged from World War II as the least bloodied and least damaged nation because we remained out of the war for more than two years after it had begun.

We did not invade France until four years after France was occupied, the British had been thrown off the Continent, and Josef Stalin’s Soviet Union had been fighting and dying for three years.

The leaders who kept us out of the two world wars as long as they did — did they not serve our nation well, when America’s total losses were just over 500,000 dead, compared with the millions other nations lost?

At the Armistice Day ceremony, Macron declared, “By saying we put ourselves first and the others don’t matter, we erase what a nation holds dearest … its moral values.”

But Trump did not say that other countries don’t matter. He only said we should put our own country first.

What country does Emmanuel Macron put first?

Or does the president of France see himself as a citizen of the world with responsibility for all of Europe and all of mankind?

Charles de Gaulle was perhaps the greatest French patriot in the 20th century. Yet he spoke of a Europe of nation-states, built a national nuclear arsenal, ordered NATO out of France in 1966, and, in Montreal in 1967, declared, “Long live a free Quebec” — inciting French Canadians to rise up against “les Anglo-Saxons” and create their own nation.

Was de Gaulle lacking in patriotism?

By declaring American nationalists anti-patriotic, Macron has asserted a claim to the soon-to-be-vacant chair of Angela Merkel.

But is Macron really addressing the realities of the new Europe and world in which we now live, or is he simply assuming a heroic liberal posture to win the applause of Western corporate and media elites?

The realities:

In Britain, Scots are seeking secession, and the English have voted to get out of the European Union. Many Basques and Catalans wish to secede from Spain. Czechs and Slovaks have split the blanket and parted ways.

Anti-EU sentiment is rampant in populist-dominated Italy.

A nationalism their peoples regard as deeply patriotic has triumphed in Poland and Hungary and is making gains even in Germany.

The leaders of the world’s three greatest military powers — Trump in the U.S., Vladimir Putin in Russia and Xi Jinping in China — are all nationalists.

Turkish nationalist Recep Tayyip Erdogan rules in Ankara, Hindu nationalist Narendra Modi in India. Jair Bolsonaro, a Trumpian nationalist, is the incoming president of Brazil. Is not Benjamin Netanyahu an Israeli nationalist?

In France, a poll of voters last week showed that Marine Le Pen’s renamed party, Rassemblement National, has moved ahead of Macron’s party for the May 2019 European Parliament elections.

If there is a valid criticism of Trump’s foreign policy, it is not that he has failed to recognize the new realities of the 21st century but that he has not moved expeditiously to dissolve old alliances that put America at risk of war in faraway lands where no vital U.S. interests exist.

Why are we still committed to fight for a South Korea far richer and more populous than a nuclear-armed North? Why are U.S. planes and ships still bumping into Russian planes and ships in the Baltic and Black seas?

Why are we still involved in the half-dozen wars into which Bush II and Barack Obama got us in the Middle East?

Why do we not have the “America first” foreign policy we voted for?

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Crude Carnage Kills Equity Dead-Cat-Bounce, Bond Yields Tumble

Chatter of a commodity fund liquidation did nothing to help what everyone hoped would be an excited dip-buying opportunity in stocks today…

 

China stocks extended Monday’s buying panic with CHINEXT now up over 5% in two days…

 

European stocks were higher on the day (though markets closed a long time before the Italian budget headlines hit)…

 

Quite a significant China outperformance in the last week…

 

With everyone primed for a bounce (pre-market futures signaled it after China’s exuberance and trade headlines), it didn’t happen…

 

Trannies managed to get back to even on the week briefly before fading fast after Europe closed…

 

The liquidation in crude certainly did not help stocks…

 

Small Caps suffered a ‘death cross’ today… (the last death cross was Sept 2015, which did not end well for the bulls)…

 

The Dow managed to cling on above its 200DMA, but all the other major US indices are below that key technical level…

 

AAPL tumbled back below its 200DMA…

 

GE stock had its best day in 9 years today… but GE bonds did not…

 

FANG Stocks bounced off the opening drop but ended unch…

 

Having taken the day off to remember Veterans yesterday, bond traders were back and they were buying… The belly of the curve outperformed…

 

10Y Yield tumbled to two-week lows…non-stop slide since The Fed

 

Inflation Breakevens collapsed further, catching down to WTI…

 

The dollar drifted lower on the day…breaking a 3-day winning streak

 

Cable popped and dropped as hopes for a Brexit deal once again crashed on the shores of reality…

 

Offshore Yuan squeezed higher on the day after tagging 6.97 and headlines of big banks dumping dollars (under orders of PBOC)…

 

Spot the odd one out in commodity-land…

As UBS points out:

“There are also speculations that the move lower could have been caused by redemption ahead of the year-end cut off of the 15th November and that a large hedge fund had about 50k lots to liquidate. Considering that the sell off resumes as I write, it might have just be the product of someone’s imagination.”

WTI Crude collapsed for the 12th day in a row – another new record – crashing on Saudi production data (biggest daily drop since Jan 2015)…

Brent is down 24% from October highs…

Bloodbath…

In case $54.75 (lows today) is too rich still for your blood – how about some Western Canada Select Crude – which traded at a $15 handle today…

 

And notably WTI priced in silver has tumbled at key resistance…

 

And Silver at its cheapest to gold since 1993…

 

In case you’re thinking of buying the dip in WTI? It has never, ever, been more oversold…

And oil vol has exploded…

 

And finally, in case you missed it last night, Japan has managed to break another record for extreme monetary policy malarkey – with the BoJ balance sheet now bigger than the country’s GDP…

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Schumer And Nelson Accuse Rick Scott Of Trying To “Bully” His Way To Victory; Demand Immediate Recusal

Democratic Senators Chuck Schumer (NY) and Bill Nelson (FL) demanded at a Tuesday press conference that Nelson’s GOP opponent, Florida Governor Rick Scott, recuse himself from the recount process that will determine the winner of their race. 

“President Trump and Governor Scott seem dead set against counting every vote. Why? Because they’re worried that if every vote is counted, Bill Nelson will be reelected as Senator from the great state of Florida.

Trump and Scott are attempting to bully the election officials in Florida out of doing their jobs, in an attempt to win this election. It’s just plain wrong. It’s un-American. Attempts to bully, threaten and cajole officials into not counting every vote is a large and dangerous step away from the democracy we all cherish. Trump and Scott must stop now.”  -Chuck Schumer

On Monday, Nelson accused Scott, of “using his power of governor to undermine the voting process,” and has called on Scott to “remove himself” from the recount process that will determine the winner of their race.

It’s “obvious that Scott cannot oversee this process in a fair and impartial way,” Nelson said in a two-minute video released by his campaign.

“And, thus, he should remove himself from any role in the recount process so the people can have confidence in the integrity of the election. Given his efforts to undermine the votes of Floridians, this is the only way that we can ensure that the people’s votes are protected.” –NBC News

“He’s stood on the steps of the governor’s mansion and tried to use the Florida Department of Law Enforcement to investigate the Broward elections chief,” Nelson said. “He’s filed lawsuits to try to stop votes from being counted and to impound voting machines. The reason he’s doing these things is obvious: He’s worried when all the votes are counted, he’ll lose the election.”

A spokesperson for Scott responded to Nelson’s claims Monday, saying in a statement: “The recount is being managed by the individual and independent Supervisors of Elections in all 67 counties,” adding. “If Bill Nelson has an issue with the way the recount is being run, he should take it up with them.”

Scott’s filed several lawsuits against Broward and Palm Beach County election officials last week, demanding in one that law enforcement seize and safeguard voting machines and ballots “when they are not in use,” after claims of potential malfeasance. On Monday, Scott dropped that motion after a judge said he could find no evidence for the improper activities that would justify doing so. 

In another complaint, Scott accused Broward County Elections Supervisor Brenda Snipes of counting ballots after the Saturday noon deadline. The campaign is filing two other lawsuits against Snipes and Palm Beach County Elections Supervisor Susan Buchner asking that the election equipment be seized when not being used for recounts, which were ordered by Florida’s secretary of state on Saturday. Recounts were ordered in Scott’s senate race against Nelson and Democrat Andrew Gillum’s narrow loss to Republican Ron DeSantis, as well as in the race for Florida Agriculture Commissioner. In the lawsuits, Scott asked that both supervisors be required to preserve all ballots and records connected with the 2018 election. Suspicious voting patterns have been detected in Broward County as more than 20,000 ballots left the lines for governor blank while voting in down ballot races.

Scott has accused Nelson of wanting fraudulent ballots and those cast by noncitizens to count – noting that Nelson’s lawyers objected to a provisional ballot being rejected in Palm Beach which was cast by a noncitizen

***

As we reported Saturday, Broward County Supervisor of Elections, Brenda Snipes, missed a court ordered 7PM Friday deadline to allow for the immediate inspection of mysteriously found ballots

The court was asked to intervene in a tight race for US Senate between Democratic incumbent Sen. Bill Nelson and Republican Gov. Rick Scott, after tens of thousands of ballots mysteriously appeared in Broward County, and another 15,000 in Palm Beach. 

Lawyers for Snipes have argued that such a quick response would interfere with the count, while Rep. Bill Nelson has accused Republicans of trying to deny him a seat which he believes he will keep once all the votes are counted. 

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