Dogecoin Sors After Musk Tweets “Working With Doge Developers To Improve System Efficiency”

Dogecoin Sors After Musk Tweets “Working With Doge Developers To Improve System Efficiency”

Just when you thought things couldn’t get any more surreal after the past 24 hours, moments ago Elon Musk, who last night rejected bitcoin because its mining is “bad for the environment” as it consumes a lot of electricity (just wait until Elon discovers how all those rare earth metals that are in every electric car are mined, or what those electric cars run on), moments ago Musk poked the hornets nest again, and shortly after tweeting that ‘it’s high time there was a carbon tax’…

… because billionaires are so fond of giving advise on how to tax others, and an hour after saying that he “strongly believe in crypto, but it can’t drive a massive increase in fossil fuel use, especially coal”, perhaps unaware that the biggest end-market for his cars also happens to be the world’s biggest polluter…

… Musk decided to go back to the crime scene and sparked a sharp rally in the literal joke of a cryptocurrency, Dogecoin, saying that hs is “working with Doge devs to improve system transaction efficiency. Potentially promising.”

The tweet sent Dogecoin sharply higher as yet another round of hapless Tesla fanatics rushed in, making Musk – whose behavior has gotten dangerously erratic in recent weeks –  instantly richer by a few more billion.

Alas, there was nobody to tell said fanatics that because Dogecoin is by definition- a joke – there are no developers because unlike Ethereum, it is not meant to be a platform. Meanwhile, the one crypto that is – ether – tumbled on the news, sliding over $100 in minutes because some were disappointed that Musk did not name Ethereum his preferred currency of choice. Here’s why he didn’t – he would have to actually have some idea what he is doing or talking about. Clearly he did not with Bitcoin if it took him a $1.5 billion purchase to realize that it is actually – gasp – mined. So for the sake of all those long ETH, be grateful this grtoesque cartoon character refuses to touch it.

Tyler Durden
Thu, 05/13/2021 – 19:07

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The QE Endgame: A Big Problem Is Emerging For The Fed

The QE Endgame: A Big Problem Is Emerging For The Fed

For the second time in three weeks, the US Treasury sold $40BN in 4-week bills at a price of 100.000% representing a rate of 0.00%.

To be sure, Bills had printed at 0.000% at auction previously, but that was largely during the reserve glut days of 2015.

So why now? The same reason usage of the Fed’s Reverse Repo facility has soared in recent weeks from zero to over $100 billion at the end of April, hitting a whopping $235 billion today…

…as investors choose to directly transact with the Fed – where only positive rates are allowed – rather than the open market where collateral rates have frequently been negative in recent weeks as Curvature’s Scott Skyrm explained in this note from April 26:

Overnight rates are low. Too low by all normal standards. The fed funds rate is well below the mid-point of the fed funds target range and the Repo GC rate is at zero; often trading negative. Zero percent interest rates are forcing billions of dollars of cash into the Fed’s RRP facility.

While this This is a delightful case of deja vu irony – the Fed is taking Treasurys out of the market through QE purchases and putting them right back in via the RRP – it is also distorting the Repo market, and although the Fed can fix this aberration by hiking the IOER or RRP rates, it has so far refused to do so. 

But the ongoing surge in reverse repo usage masks a far bigger problem in store for the Fed, and it’s why Curvature’s Skyrm writes that “now is a pretty good time to start talking about the size of the SOMA portfolio, even if some people don’t want to talk about it.”

Why is the surge in reverse repo linked to tapering? Skyrm explains, by posting a rhetorical question:

“What are the next steps for tapering purchases and what will the SOMA portfolio look like when we’re done? What will the market look like?”

The repo strategist then reminds us that even when the Fed starts tapering, the Fed balance sheet will continue to grow indefinitely, if at a slower pace, flooding the system with the same reserves that are now desperate to buy Bills at 0.000% or be parked at the Fed (for 0.000%).

Talk of tapering feels like when you’re getting ready for a dinner out. You’re ready and it’s time to go. You check on your spouse and they haven’t even started getting ready yet! As of last week, the SOMA portfolio stood at $7.185 trillion and the Fed continues purchases at $120 billion a month. If and when tapering starts, the purchases won’t go from $120 billion to zero in one announcement. The purchases will gradually slow – going from $120 billion, to maybe $100 billion, to maybe $80 billion, to $50 billion, to $20 billion.

Let’s look at some  rough estimates. Assuming the Fed tapers at this schedule at each FOMC meeting beginning in June, that would mean the Fed adds about another $350 billion and ends QE in November. That’s the most aggressive tapering schedule. Let’s assume the Fed doesn’t begin tapering until the end of the year. That means, roughly, another $900 billion will be added to the SOMA portfolio.

This is a problem, and Skyrm explains why: Even today there’s barely enough collateral in the Repo market right now to cover all of the cash being invested. If volume at the RRP shot up to $235 billion today, what’s going to happen when there’s $350 billion fewer securities in the market at the end of the year?

How about if it’s $900 billion?

In short, we already have a collateral shortage the likes of which are on par with what we experienced in 2015-2016. What happens in the next 18 months when we get an additional $1 trillion in reserves sloshing around? 

Tyler Durden
Thu, 05/13/2021 – 19:05

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Biden Plans Expansion Of Feds’ Army Of Snitches In “Dollars For Collars” Program

Biden Plans Expansion Of Feds’ Army Of Snitches In “Dollars For Collars” Program

Authored by James Bovard via TheAmericanConservative.com,

How the administration plans on expanding its already massive surveillance apparatus…

The Biden administration may soon recruit an army of private snoops to conduct surveillance that would be illegal if done by federal agents. As part of its war on extremism, the Department of Homeland Security (DHS) may exploit a “legal work-around” to spy on and potentially entrap Americans who are “perpetuating the ‘narratives’ of concern,” CNN reported last week. But federal informant programs routinely degenerate into “dollars for collars” schemes that reward scoundrels for fabricating crimes that destroy the lives of innocent Americans. The DHS plan would “allow the department to circumvent [constitutional and legal] limits” on surveillance of private citizens and groups. Federal agencies are prohibited from targeting individuals solely for First Amendment-protected speech and activities. But federal hirelings would be under no such restraint. Private informants could create false identities that would be problematic if done by federal agents.

DHS will be ramping up a war against an enemy which the feds have never clearly or competently defined. According to a March report by Biden’s office of the Director of National Intelligence, “domestic violent extremists” include individuals who “take overt steps to violently resist or facilitate the overthrow of the U.S. government in support of their belief that the U.S. government is purposely exceeding its Constitutional authority.” Perhaps like setting up a private informant scheme to evade constitutional restrictions on warrantless surveillance?

One DHS official bewailed to CNN:

“Domestic violent extremists are really adaptive and innovative. We see them not only moving to encrypted platforms, but obviously couching their language so they don’t trigger any kind of red flag on any platforms.”

DHS officials have apparently decided that certain groups of people are guilty regardless of what they say (“couching their language”). The targets are likely to be simply people with a bad attitude towards Washington. That will include gun owners who distrust politicians who vow to seize guns.

The latest fuzzball standards (“narratives of concern”?) fit the post-9/11 pattern of wildly expansive threat definitions. Shortly after its creation in 2002, DHS warned local law enforcement agencies to keep an eye on anyone who “expressed dislike of attitudes and decisions of the U.S. government” as potential terrorists. DHS-funded Fusion Centers have attached the  “extremist” tag to gun-rights activists, anti-immigration zealots, and individuals and groups “rejecting federal authority in favor of state or local authority”—even though many of the Founding Fathers shared the same creed. The Pentagon taught soldiers and bureaucrats that people who attend public protests are guilty of  “low-level terrorism.” An Air Force report accused women who wear hijabs of “passive terrorism.” Endless enemies lists come in handy at congressional appropriations hearings.

Federal officials insist that those who have nothing to hide have nothing to fear. FBI chief Christopher Wray perennially proclaims that the FBI never investigates Americans based solely on their ideas. But, as the Intercept reported in 2019, “Who the Justice Department decides to prosecute as a domestic terrorist has little to do with the harm they’ve inflicted or the threat they pose to human life.” But that claim is belied by the FBI’s beloved “informant loophole.” As Trevor Aaronson explained, “FBI agents must obtain supervisory approval to enter a group or gathering using an undercover agent, and to obtain that approval, the FBI must have a ‘predicate,’ or a factual basis to suspect criminal activity. But neither supervisory approval nor a predicate is required if the work is done by an informant, creating a loophole that allows the FBI to investigate Americans for virtually any reason.”

Any new informants hired by the Biden administration will operate under the same perverse incentives that have long subverted due process. Informants tend to be rewarded based on how much assets they help government seize or how many people they help prosecutors condemn. As a 2019 report by the American Bar Association noted, “The government pays cash for incriminating information and testimony. This is troubling because the financial incentive to make cases against others may be much greater than the personal integrity of the informants.” A report by the Justice Department Office of Inspector General slammed the Drug Enforcement Agency for failing to “document the reliability of informants” who helped the DEA to confiscate billions of dollars of private property. The DEA paid informants $237 million between 2010 and 2015, including $25 million shoveled out to only nine informants. DEA’s best paid informant, Andrew Chambers, Jr., was found to have given “false testimony under oath in at least 16 criminal prosecutions nationwide before he was exposed in the late 1990s,” USA Today reported in 2013. Attorney General Janet Reno banned the DEA from using him as an informant but in 2008, DEA re-hired Chambers and used him for at least the following five years.

Informants have become far more perilous to freedom and decency since the 1970s thanks to the Supreme Court effectively defining entrapment out of existence. Almost anything an informant or undercover government agent does to induce someone to violate the law is considered fair play. Craig Monteilh, an informant who was sent into mosques in southern California, was given permission by his FBI handlers to sleep with Muslim women he targeted and to secretly tape record their pillow talk. Other FBI informants browbeat their targets into discussing bombing government buildings, providing sufficient verbal rope to hang them. The vast majority of people charged with international terrorism offenses in the decade after 9/11 were not bona fide threats but were induced by the FBI or informants to behave in ways that prompted their arrest, according to Trevor Aaronson’s The Terror Factory: Inside the FBI’s Manufactured War on Terrorism.

One purpose of relying on private informants is to assure that there are no federal fingerprints when people are coaxed or shoved into breaking the law. The FBI admits that it formally entitles its army of informants to commit more than 5,000 crimes a year; there is no estimate of how many crimes are committed directly by FBI agents, who have been formally taught that “the FBI has the ability to bend or suspend the law to impinge on the freedom of others.” Thanks to the FBI’s Iron Curtain of Secrecy, we have no idea what sort of atrocities its informants may now be committing. During George W. Bush’s reign, the White House formally invoked executive privilege to block disclosure of the FBI’s sweetheart deals for Whitey Bulger, a notorious FBI informant and Irish crime boss linked to 20 murders. The FBI knew of Bulger’s role in killings but lied in court to protect him, even providing false testimony to send innocent men to prison for life to safeguard Bulger. That debacle was summarized in a 2004 congressional report titled, “Everything Secret Degenerates: The FBI’s Use of Murderers as Informants.” In 2011, a federal judge aptly labeled the FBI’s behavior in the case as “uncontrolled official wickedness.”

In 2016, Omar Mateen carried out the biggest terrorist attack since 9/11, killing 49 people at the Orlando Pulse Nightclub attack. Prior to his attack, Mateen boasted of his connections to terrorists and threatened to have Al Qaeda kill a co-worker’s family; his mosque warned authorities that he was a threat to public safety. But the FBI swayed the local sheriff’s department to drop its investigation of Mateen because a “confidential informant” assured FBI agents that Mateen was not a terrorist and would not “go postal or anything like that.” The federal case against the killer’s widow collapsed in 2018 after jurors belatedly learned that the killer’s father, an Afghan immigrant, had been an FBI informant since 2005 and may have used his influence to assure that his son was not arrested prior to his killing spree.

The FBI has long relied on informants to choreograph political violence. In the 1960s, FBI informants “set up a Klan organization intended to attract membership away from the United Klans of America,” according to a 1976 Senate report. One FBI informant with the Klan, along with other Klansmen, had “beaten people severely, had boarded buses and kicked [Freedom Riders] off” and beat restaurant customers “with blackjacks, chains, pistols.” In 2006, a paid FBI informant organized and led a neo-Nazi march in a black neighborhood in Orlando, Florida. In 2017, an FBI informant masterminded a Klan rally in Charlottesville, Virginia, sharply increasing the tension and fear prior to the much larger and notorious Charlottesville Unite the Right rally the following month. There have not yet been any disclosures regarding what role, if any, that federal informants played in the January 6 clash at the Capitol.

DHS wants to enlist more private informants at the same time federal undercover operations are already out of control. At least 40 federal agencies are now conducting undercover operations involving thousands of agents. An undercover DEA agent “created a fake Facebook page from the photos of a young woman in Watertown, N.Y. — without her knowledge — to lure drug suspects,” the New York Times reported.  IRS agents are officially permitted to “pose as an attorney, physician, clergyman or member of the news media.” The Times noted in 2014 that  “the military and its investigative agencies have almost as many undercover agents working inside the United States as does the F.B.I.,” often serving on joint federal task forces of the type that will likely be expanded for the Biden extremist crackdown. A sting operation by the Alcohol Tobacco and Firearms agency swayed mentally handicapped individuals to get tattooed to help advertise its bogus gun store, violating federal laws protecting the disabled. Oversight is often a mirage: an ATF committee created to oversee undercover operations didn’t bother meeting for more than half a decade. The Times noted that “even Justice Department officials say they are uncertain how many agents work undercover.”

The Biden administration is considering unleashing a new surveillance program at a time when Americans have no idea how many federal agencies are already spying on them. Yahoo News disclosed last month that the Postal Inspection Service is running iCOP —the Internet Covert Operations Program—to sweep social media and other websites searching for any “inflammatory” postings on topics including protests against COVID lockdowns. Postal inspectors got access to private messages on Parler and Telegram, presumably with no search warrant. The iCOP program turns over its discoveries to other federal agencies. Rachel Levinson-Waldman of the Brennan Center for Justice commented that iCop “seems a little bizarre” since the surveillance included “monitoring of social media that’s unrelated to use of the postal system.” Rep. Thomas Massie (R-KY) denounced the program for violating the Constitution and asked: “The USPS has been losing money for many years… so where do they find money to run this surveillance program?” Unfortunately, federal agencies that trample the law and the Constitution in their surveillance efforts are usually punished with budget increases.

Perhaps setting up a new informant scheme to work around the Constitution is not the best response to extremists who fear government is lawless. Unfortunately, Americans are unlikely to hear about crimes committed by Biden’s new snoops until long after the damage is done, if ever.

*  *  *

James Bovard is the author of Lost RightsAttention Deficit Democracy, and Public Policy Hooligan. He is also a USA Today columnist. Follow him on Twitter @JimBovard.

Tyler Durden
Thu, 05/13/2021 – 18:50

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House GOP Introduces Bills To Combat Critical Race Theory

House GOP Introduces Bills To Combat Critical Race Theory

Authored by Li Hai via The Epoch Times (emphasis ours)

Rep. Dan Bishop (R-NC) talks with Rep. Marjorie Taylor Greene (R-GA) on the House steps at the U.S. Capitol in Washington, D.C., on March 11, 2021. (Drew Angerer/Getty Images)

Two bills will be introduced to counter critical race theory at the federal level, Rep. Dan Bishop (R-N.C.) announced with some GOP House members at a press conference in front of the Capitol on Wednesday.

One bill is Combat Racist Training in the Military Act, a House companion bill to the bill introduced by Senator Tom Cotton (R-Ark.) in the Senate. The bill prohibits the United States military from promoting critical race theory.

The second bill is called Stop Critical Race Theory Act. Bishop called it “the most comprehensive legislation” to restrict the spread of the quasi-Marxist ideology.

The bill would codify an executive order by former President Donald Trump signed last year, which banned critical race theory from federal agency training. The bill would also ban any federal funds from being used to promote critical race theory.

Both bills will have 31 co-sponsors when introduced, Bishop said.

Critical Race Theory is a divisive ideology that threatens to poison the American psyche,” Bishop said during the conference. “The roots of this ideology are unmistakable. Just as Karl Marx advocated a social critical ethic of societal classism—oppressor versus oppressed—this is Neo Marxist ideology, Cultural Marxism masquerading as history and designed to mislead.”

Critical race theory redefines America’s history as a struggle between “oppressors” (white people) and the “oppressed” (everybody else), as was done with Marxism’s reduction of human history to a struggle between the “bourgeoisie” and the “proletariat.” It labels institutions that emerged in majority-white societies as “systemically” or “structurally” racist.

“Cancel culture is one of its weapons; mob-like attacks on free expression, intimidation. For the sake of our children’s future, we must stop this effort to cancel the truth of our founding,” Bishop continued.

Former Director of the Office of Management and Budget (OMB) Russ Vought gave three examples of how critical race theory impacts the country at the press conference.

Russ Vought, Acting Director of the Office of Management and Budget, speaks at the CPAC convention in National Harbor, Md., on Feb. 29, 2020. (Samira Bouaou/The Epoch Times)

He said that third-graders in California have been made to deconstruct their racial identity and rank themselves according to their power and privilege in school. Teachers told them that they shouldn’t be living in a culture dominated by white middle class, cisgender, educated, able-bodied, Christian, English speakers.

In another example, Vought said that the U.S. Sandia Labs—a contractor to the U.S. Department of Energy’s National Nuclear Security Administration—held a reeducation class for white male employees, forcing them to write apology letters to people of color and women.

In a third example, Vought said that the U.S. Department of Homeland Security had run micro-aggression training and claims that individualism, the Protestant work ethic, capitalism, monotheism, the written tradition, and believing that the most qualified person should get the job are racist attributes.

This is real,” he said. “It’s impacting our schools, our institutions, our employers. We’re seeing it across the country.

“This is the beginning of the federal effort to continue the work that President Trump did with the executive order to make sure that it is defunded throughout the federal government,” he added.

As the former OMB director, Vought led the Trump administration’s efforts to confront the ideas of critical race theory within federal agencies.

Rep. Chip Roy (R-Texas), Rep. Lauren Boebert (R-Colo.), Rep. Marjorie Taylor Greene (R-Ga.), Rep. Andy Biggs (R-Ariz.), Rep. Ted Budd (R-N.C.), and Rep. Ralph Norman (R-S.C.) also spoke at the event.

Rep.-elect Lauren Boebert (R-Colo.) in Washington on Dec. 4, 2020. (Tal Atzmon/The Epoch Times)

“I charge the men and women at home watching this: Get involved. Get involved at the local level, show up to your school board meetings, listen to what is taking place, have an opinion on the curriculums that are being taught to our children,” Boebert said at the conference. “Our children are so valuable, their future is so valuable, and we cannot lose it to something like this racist critical race theory.”

Rep. Madison Cawthorn (R-N.C.) and Rep. Virginia Foxx (R-N.C.) are also planning to introduce a bill to prevent federal funding from going to a recent Department of Education proposal aimed at teaching critical race theory in schools, Fox News reported.

Last month, the Department of Education proposed a new rule to prioritize funding education programs that incorporate the New York Times’ 1619 Project and critical race theory ideas.

Petr Svab contributed to this report.

Tyler Durden
Thu, 05/13/2021 – 18:13

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Video: Rand Paul Continues Fauci Feud; “He Could Be Culpable For The Entire Pandemic”

Video: Rand Paul Continues Fauci Feud; “He Could Be Culpable For The Entire Pandemic”

Authored by Steve Watson via Summit News (emphasis ours)

Senator Rand Paul continued to slam White House medical advisor Thursday, saying that Anthony Fauci could be culpable for the entire coronavirus pandemic.

Paul was attacked by leftist media Wednesday for merely questioning Fauci’s extensive role in granting funding to the Wuhan Institute of Virology at a Senate hearing.

CNN’s Anderson Cooper declared that Paul should “have more respect at least for medical science.”

Paul hit back, noting that Fauci is lying about the NIH’s involvement in funding of the Wuhan lab.

Now in a further appearance on Fox And Friends, Paul has gone even deeper, accusing Fauci of being personally to blame for the global pandemic.

The person they hired to investigate the lab for the WHO perspective is the guy who gave the money,” Paul urged.

So NIH gave the money to EcoHealth. The head of EcoHealth – they got him to investigate whether Wuhan was doing anything inappropriate in their lab. But if they were then wouldn’t he be culpable?” The Senator questioned.

Doesn’t he have a self interest in smoothing things over,” Paul continued, adding “I’m not saying he did cover things up but you wouldn’t appoint someone who is in the line of the supply chain of giving the money to them.”

“Ultimately here’s the rub. I don’t know whether it came from the lab. But who could be culpable? Dr. Fauci could be culpable for the entire pandemic!” Paul emphasised.

 

As Infowars reported in April 2020, the NIH awarded a $3.7 million grant to the Wuhan Institute of Virology to conduct coronavirus gain of function research.

Additionally, the results of the US-backed gain of function research at Wuhan was published in 2017 under the heading, “Discovery of a rich gene pool of bat SARS-related coronaviruses provides new insights into the origin of SARS coronavirus.”

Fauci has come under increased scrutiny as the NIH’s involvement with the Wuhan lab is being called into question.

Tyler Durden
Thu, 05/13/2021 – 15:00

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Daily Briefing: Making Sense of Yesterday’s Sell-Off — What’s Next?

Daily Briefing: Making Sense of Yesterday’s Sell-Off — What’s Next?

Real Vision managing editor Ed Harrison welcomes Tommy Thornton, founder of Hedge Fund Telemetry, to contextualize yesterday’s sell-off and whether it is indicative of longer-term market troubles. Thornton will update his thinking concerning what sectors he has his eye on and how he’s positioning his trades since a full re-opening in the U.S. is almost here.

Tyler Durden
Thu, 05/13/2021 – 14:00

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Expectations Matter Most When It Comes To Inflation

Expectations Matter Most When It Comes To Inflation

By Laura Cooper, Bloomberg reporter and Markets Live commentator

Inflation expectations matter when it comes to central-bank policy, with scope for markets to ramp up hedging bets as price uncertainty extends – and more potential shock-and-awe CPI prints add conviction to the debate.

While investor fears of runaway price pressures may yet prove overblown, as evidence of inflationary impulses builds, demand for hedges against the widening tail risk of sustained pressures can extend.

The Federal Reserve is steadfast in its resolve to focus on employment but a de-anchoring of inflation expectations can prompt a rates guidance about-turn. Fed members have stated as much, monitoring transitory pressures that could prove persistent.

An anchoring of inflation expectations equates to forward-looking gauges that are relatively insensitive to incoming data, according to former Fed Chair Ben Bernanke. Expectations may be harder to contain against rising commodity prices, producer supply constraints, and labor shortage anecdotes that risk durable supply-side wage pressures.

The Fed may further struggle to anchor expectations given the ambiguity around its average-targeting mandate. An inflation overshoot is welcome as it allows the economy to run hot, yet the implicit period of inflation variability – and uncertainty – can have investors seeking greater compensation for tail risks.

The Fed’s preferred gauge, expected inflation over the 5-year period that begins five years from today, is already upending the downtrend since 2013. While both a steeper nominal and flatter TIPS curve look needed to spur it sustainably beyond 2.4%, momentum matters – all else equal, if markets expect inflation to rise by 1ppts, actual price pressures tend to follow in-step.

The new Index of Common Inflation Expectations is taking greater prominence on the Fed’s dashboard. While it came in around 2% in 1Q-2021, should it “drift up persistently,” policy may be adjusted, according to Fed members Richard Clarida and Lael Brainard. Of the 21 variables in the index, expectations derived from 5-year and 10-year TIPS have the greatest weight.

Other market-based measures are likely to stoke further upside: signs of wage pressures before the labor market recovery is effectively complete, for example. Other metrics are already elevated with the latest Survey of Consumer Expectations revealingthe highest one-year forward print since 2013.

A simple model of 10-year breakeven rates run off of nominal yields and macro drivers such as credit spreads suggests elevated bets already. Yet given heightened uncertainty, captured in the Minneapolis Fed’s market-implied probability of 3%+ inflation in coming years rising above 30%, rates can climb as pricing near-term risks extends further out

Of course, it’s hard to have conviction that we are witnessing a regime shift after a prolonged period of tepid price pressures. Secular disinflationary forces likely remain, core PCE drivers point to subdued longer-term trends and ultimately, an overshoot of inflation bets, most evident in the unusually inverted 5y-10y breakeven spread, can be pared back

Yet with more months of inflation conviction ahead – and core prints above 3% – expectation risks are skewed higher. That could be what is needed to prompt that policy pivot – after all, there is a risk in expecting the future to replicate the past after all.

Tyler Durden
Thu, 05/13/2021 – 17:40

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Rockets Fired At Israel From South Lebanon As Fears Grow Hezbollah To Enter Conflict

Rockets Fired At Israel From South Lebanon As Fears Grow Hezbollah To Enter Conflict

A big lingering unknown is whether Israel’s powerful archenemy Hezbollah will open up a northern front to bog down Israel’s military as it continues striking Gaza, and as preparations are underway for a potential Israeli Defense Forces (IDF) ground invasion into the Hamas-controlled strip.

Late Thursday at least three rockets were fired from southern Lebanon toward Israel, which the IDF military spokesman confirmed

And moments after, a new wave of rockets were launched from Gaza, the IDF said.

Given the rockets fired into northern Israel, the immediate question remains whether Hezbollah was responsible, and if the Shia paramilitary organization supported closely by Iran will initiate its own aggression. This would constitute a monumental escalation for Israel, assuring major regional war.

So far international reports are saying it’s “unclear” who was responsible for the attack from Lebanon.

The rockets were believed launched from near the border with Israel, in Lebanon’s Qlayleh area, near Naqoura. There are also Palestinian militant factions in the area, with Lebanon’s Daily Star quickly in the aftermath pointing to these Palestinian groups operating in Lebanon – and not Hezbollah.

The Lebanese outlet is reporting that “Lebanese Army intelligence detains Palestinian involved in firing rockets at Israel.”

Meanwhile rockets fired from Gaza continue reaching deep into central Israel…

Israel media is now widely reporting that the Defense Ministry is putting plans in place for “all-out war”.

The reports come after on Wednesday Defense Minister Benny Gantz threatened “Gaza will burn”. He said: “If citizens of Israel have to sleep in shelters” due to Hamas rocket attacks “then Gaza will burn.”

Tyler Durden
Thu, 05/13/2021 – 17:24

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“You Can’t Do That To People”: Virginia Gas Station Charges Almost $7 Per Gallon

“You Can’t Do That To People”: Virginia Gas Station Charges Almost $7 Per Gallon

Hours after Virginia governor Ralth Northam declared a state of emergency, one BP gas station was caught charging extortion-level prices on Tuesday amid the lamest ‘gas crisis’ in recent memory caused by the Colonial Pipeline hack.

One customer, Lether Kerney, wasn’t paying attention when she pulled up to the BP gas station on Williamsburg Road – which was charging $5.99 per gallon – shortly before it jumped another dollar to $6.99 per gallon.

“I had half a tank of gas, so when it got to $25, I started looking to see what was going on. And after I got to $30, I was like, ‘oh my God! I spent $35.45 to fill up my tank. Six gallons of gas for $35. That’s absolutely ridiculous,” she said, adding “Usually, it’s under $3.00. This BP service station has always been the cheapest, and I didn’t even look at the price before I started pumping.

Another customer who goes by ‘Cha Cha’ told KMOV4 that she lives blocks away from the gas station and watched as the price continued to rise.

“I live two blocks from here, and it was $4.99,” she said. “So, then I drove up the road to get gas at a $2.99 gas station, came back through here, it was $5.99. And now it’s $6.59.”

A few minutes later, it was $6.99.

You can’t do that to people,” said Cha Cha.

 When the station went to the gas station to follow up, the sign was turned off and they said they were completely out of gas.

Tyler Durden
Thu, 05/13/2021 – 17:00

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The Infernal Revenue Service

The Infernal Revenue Service

Authored by Cal Thomas. op-ed via The Epoch Times,

Thanks to the beneficence of the Internal Revenue Service—and the fallout from COVID-19—we half of Americans who pay federal income taxes have been given until May 17 to file.

Since I began earning enough to file Form 1040 and associated forms, I have only known one person who prepared his own taxes. That was Bill Archer, a Texas Republican who formerly headed the House Ways and Means Committee. I once asked Archer why he prepared his. His reply was that not only did he think it was fun, but because he helped write the tax code, he felt a responsibility to demonstrate competence in filling out the forms.

These days, the forms are so complicated, hardly anyone I know understands them. The instructions need instructions.

I have again filed jointly with my wife (more than 70 pages). She owns a business, so it is more complicated than if we filed separately. Still, the forms require translating a language I have never studied and wouldn’t want to. If you call the IRS and ask for help, you are still responsible for interest and penalties if they give the wrong advice.

How complicated is it? Here are just a few examples. Right off the top, I am threatened with prison should I knowingly fudge information on the form. The federal government does threats very well, including those read by flight attendants. Refuse to wear a mask, even if vaccinated, and you risk arrest. Don’t even think of tampering with the smoke detector. Even the post office is now spying on us.

How’s this for clarity from the estimated tax worksheet:

“Add lines 2a and 2b. Subtract line 2c from line 1. Figure your tax on the amount on line 3 by using the 2021 Tax Tables. Caution: If you will have qualified dividends or a net capital gain or expect to exclude or deduct foreign earned income or housing, see worksheets 2-5 and 2-6 in Pub. 505 to figure the tax.”

Got that?

There are schedules and forms for everything. They are nearly as numerous as the growing list of gender identities. Under Schedule D, Profits and Losses, there is this gibberish:

“Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b.”

Say what?

No civilized society should force its citizens to go through this annual torture.

According to WorldAtlas.com, 12 countries have easier ways for their people to pay taxes than the United States. Britain has a pay-as-you-earn system (but also a nasty value added tax). The Tax Policy Center notes:

“At last count, 36 other countries, including Germany and Japan permit return-free filing for some taxpayers.”

The U.S. government takes in record amounts of revenue. The Biden administration wants more. The problem has never been revenue, but spending.

Not only do we need a simplified tax system, we also should invite an outside auditor to recommend the elimination of unnecessary, useless, outdated, and unconstitutional programs, agencies, and spending.

The problem is that those who write these abominable and indecipherable laws do so to give breaks to favored individuals and corporations. They contribute to their campaigns, corrupting many of them as they remain in office long past their “sell-by” date.

I would like to see members of Congress who write these tax laws forced to fill out the forms without help from an adviser. Put it on C-SPAN so we can watch them waste their time trying to figure it all out as many of the rest of us must do.

Now THAT would be fun.

Tyler Durden
Thu, 05/13/2021 – 16:45

via ZeroHedge News https://ift.tt/3hosv9P Tyler Durden