Two Systems, One World

Authored by Joschka Fischer via Project Syndicate,

Like the twentieth-century Cold War between the United States and the Soviet Union, the new rivalry between China and the West is a contest between fundamentally incompatible political systems. And the idea that freedom and democracy will prevail can no longer be taken for granted.

With the 30th anniversary of the fall of the Berlin Wall approaching, the issue of freedom has returned to the fore in Moscow and Hong Kong, albeit under very different historical and political circumstances. We are reminded that the modern era was built on freedom, and on the recognition that all people are born equal. This radical Enlightenment idea, when it took hold, constituted a break from all previous history. But times have changed. In the twenty-first century, we are confronted with a fundamental question: Could a modernized form of authoritarianism represent an alternative to liberal democracy and the rule of law?

In 1989, the obvious answer to that question would have been no, not just in the West but around the world. Since then, however, we have witnessed the revival of nationalism in Europe, the failure of the Arab Spring, the election of US President Donald Trump, Russia’s relapse into revanchism, and the emergence of a global China. Now, all bets on liberal democracy are off.

China’s emergence as a second military, economic, and technological superpower suggests that there is now an alternative development model. In modern China, the rule of law and democracy are regarded as a threat to one-party rule. Hence, the ongoing protests for freedom and democratic accountability in Hong Kong expose a division not just between two normative frameworks, but between two systems of political power.

For a while, China appeared to have found a formula for bridging this divide. The principle of “one country, two systems” was supposed to allow for the orderly reintegration of Hong Kong and (more aspirationally) Taiwan. Should this formula now fail in Hong Kong, there will be an immediate escalation of military tensions across the Taiwan Strait, because the island’s continued special status will become impossible for the Chinese government to accept or ignore.

Still, the formula has indeed worked so far. Hong Kong has become extraordinarily important to the Chinese economy, because it provides access to global capital markets and serves as a financial gateway for inward foreign direct investment. And the relationship with Taiwan has, for the most part, remained relatively quiet.

The arrangement with Hong Kong worked because the government in Beijing showed ample consideration for the city’s semiautonomous status. But as China has grown stronger, its perception of itself as a new global superpower has produced a change in behavior. The Chinese authorities are exerting ever more influence in Hong Kong, suggesting that they want to move in the direction of “one country, one system.”

The proposed law (since suspended) to enable the extradition of people arrested in Hong Kong to mainland China was widely seen as a threat to democracy and the rule of law in the former British colony. The authorities in Beijing know perfectly well that this attempt to weaken Hong Kong’s autonomy – not covert operations by foreign intelligence services – is why millions of people have taken to the city’s streets.

Given the current power structures in China (and Russia), the mass protests this summer in Hong Kong (and Moscow) have little to no chance of success in the short term. Yet they are significant nonetheless, because they provide a foil for the democratic malaise that has spread throughout the West.

More broadly, the division of the world into two systems immediately brings back memories of the Cold War. But in that conflict, the main issue was military strength – hence the centrality of the nuclear-arms race. When it came to living standards, the Soviet Bloc never really had a chance (as was obvious in the so-called Kitchen Debate between then-US Vice President Richard Nixon and the Soviet leader, Nikita Khrushchev, in 1959).

The competition with China, however, will be precisely about the question of which system delivers more in terms of technological and material progress. China’s ascent from a poverty-stricken developing country to an economic powerhouse is one of the greatest achievements of the modern era. Millions of people have been lifted out of poverty and into a growing consumption-oriented middle class, and millions more could soon follow them.

At the same time, although China has been building up its military, it has not exerted force beyond its immediate neighborhood, unlike the Soviet Union. When China pursues its strategic interests in Africa and Eastern Europe, it does so through economic and financial means. It owes its growing global influence not to its military, but to its economy and its growing capacity for rapid technological innovation. For the West, the “Chinese Challenge,” then, is to show that its model of democracy is still better suited than Eastern-style authoritarianism for the majority of humankind.

In this larger contest, US President Donald Trump is something of a Chinese Trojan Horse. Although he is waging an aggressive trade and technology war against China, he is also doing everything he can to undermine the credibility of the Western model. In historical terms, his attacks on democracy will prove far more consequential than his tariffs. Making matters worse, Europe, with its obvious economic weaknesses and geopolitical naiveté, is also failing to marshal a defense of the Western model.

At this stage, China’s ascent cannot be prevented. The country is simply too large and too strong to be boycotted or contained; at any rate, the Chinese people’s desire to share in global prosperity is entirely legitimate. The West has little choice but to maintain good relations with the new superpower, while at the same time defending its values. The rise of China – and of the Chinese system – will inevitably create more competition, and these new rivalries must be handled peacefully at all costs. A world with eight billion people cannot afford a global conflict.

Whether China’s model of authoritarian modernization can succeed in the long term is a question for future generations of Chinese. Those with no memories of past horrors such as the Cultural Revolution may simply regard the Chinese model as a matter of course. But the modern age was built on liberty.

As we have seen in this summer in Hong Kong and Moscow, that lesson will not be forgotten anytime soon.

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

Jeanine Pirro Compared To Mass Shooter For Discussing ‘Plot To Replace American Citizens With Illegals’ 

Fox News host and longtime Trump pal Jeanine Pirro has come under fire by Media Matters and Salon for suggesting that Democrats hate Trump and his supporters because their ‘plot to remake America’ has been disrupted.

During a Wednesday appearance on “The Todd Starnes” show on Fox Nation, Pirro said:

“I’ve often wondered, who do they hate more?” Starnes asked Pirro. “Do they hate Donald Trump? Or do they hate the people who put him into office?”

“Well, they hate Donald Trump. He’s the one they want to get rid of, because people like you and me who put him into office — their plan and their plot to remake America is to bring in the illegals, change the way the voting occurs in this country, give them licenses,” said Pirro. “They get to vote, maybe once, maybe twice, maybe three times, and you know, you’ve got motor-voter registration on the day of the election. You’ve got people with — We’ve got voter rolls that haven’t been purged of dead people in years where the Democrats have resisted that.”

“Think about it,” Pirro added. “It is a plot to remake America — to replace American citizens with illegals who will vote for the Democrats.

According to Salon, Pirro’s comments were quickly spun into an ’embrace of the white supremacist “great replacement” conspiracy theory’ used by the El Paso, Texas shooter. 

Pirro’s words mirrored the rhetoric of the accused El Paso shooter, who wrote in a racist screed that “this attack is a response to the Hispanic invasion of Texas.” The shooter directly echoed President Trump‘s repeated warnings of “an invasion” at the border ahead of the 2018 midterm elections. According to this theory, which has become a core tenet of white supremacist ideology of white supremacy, nonwhite immigrants are somehow “replacing” white people.

“The [El Paso] suspect wrote that his views ‘predate Trump,’ as if anticipating the political debate that would follow the blood bath,” Peter Baker and Michael D. Shear wrote in the New York Times after the massacre. “But if Mr. Trump did not originally inspire the gunman, he has brought into the mainstream polarizing ideas and people once consigned to the fringes of American society.” –Salon

Yet another case of wrongthink. We can only imagine, applying the same logic, that Bernie Sanders is embracing the murder of tens of millions by espousing socialist views. 

Via Media Matters:

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Keep Your Powder Dry, Comey Is Not Out Of The Woods

Authored by Larry Johnson via Sic Semper Tyrannis blog,

There is no doubt that Jim Comey was part of a conspiracy to destroy Donald Trump and his Presidency. But all the evidence is not yet on the record.

There is some understandable frustration reverberating around the web that Comey is not being indicted in the wake of the latest Inspector General report detailing Jim Comey’s inappropriate and unethical handling of Government material. But that is not the role of the Inspector General. It is up to DOJ to prosecute and a careful reading of the current report makes clear that there was not adequate foundation to get an indictment and prosecute.

However, if you believe that Jim Comey is getting a pass and will get away with corrupt activity, let me suggest you are overreacting and that patience is warranted. Comey is not out of the woods.

My only previous experience with Bill Barr was the role he played in making sure that the two guys who planted the bomb on Pan Am 103 were prosecuted. Barr was a straight shooter and would not cut corners. I also am friends with a person who worked directly for him during that period. That person insists that Barr is not going to let Comey and Brennan and Clapper off the hook. But that person also has reminded me that Barr will do it by the book and do it fairly.

With that predicate, I want you to focus on the core of yesterd=day’s Inspector General report. It is very simple and concise:

The focus of the OIG’s investigation was to determine whether Comey violated Department or FBI policies, or the terms of his FBI Employment Agreement, in his handling of the Memos during and after his tenure as FBI Director.

Memos 2 and 7 contained small amounts of information classified at the “CONFIDENTIAL” level. The FBI designated Memos 4, 5, and 6 as unclassified, “For Official Use Only.”

Comey was removed as FBI Director on May 9, 2017, Comey still had copies of Memos 2, 4, 6, and 7 in his personal safe at home.

[t]he Inspector General Act of 1978, the OIG provided a copy of [these] factual findings to the Department for a prosecutorial decision regarding Comey’s conduct. . . After reviewing the matter, the Department declined prosecution.

As described in this report, we conclude that Comey’s retention, handling, and dissemination of certain Memos violated Department and FBI policies, and his FBI Employment Agreement.

I repeat, Comey violated Department of Justice and FBI policies and violated his FBI Employment Agreement. If he had taken classified memos home and stored them then he would have been indicted. But he did not engage in criminal activity with respect to classified information. He consciously and deliberately took steps to not keep classified information at his house. This is quite different from the conduct of Hillary Clinton, who knowingly and intentionally kept classified information on her unclassified, private server.

Jim Comey is stupidly taking a victory lap over this report and insisting that he is vindicated. I once considered Comey to be a smart person. Clearly he is not. He just pretends to be. His behavior today reveals an immaturity and hubris that confirms why he was fired in the first place as FBI Director.

This is the second Inspector General report that blasts Comey for unprofessional and unethical conduct. Being unprofessional and unethical is not illegal and does not guarantee a prison term.

The Inspector General is building a clear body of evidence that Jim Comey routinely and frequently violated Department of Justice and FBI policies and procedures. I want you to recall what the Inspector General said about Jim Comey and his July 2016 press conference on the Hillary Clinton investigation:

We determined that Comey’s decision to make this statement was the result of his belief that only he had the ability to credibly and authoritatively convey the rationale for the decision to not seek charges against Clinton, and that he needed to hold the press conference to protect the FBI and the Department from the extraordinary harm that he believed would have resulted had he failed to do so.

While we found no evidence that Comey’s statement was the result of bias or an effort to influence the election, we did not find his justifications for issuing the statement to be reasonable or persuasive. We concluded that Comey’s unilateral announcement was inconsistent with Department policy and violated long-standing Department practice and protocol by, among other things, criticizing Clinton’s uncharged conduct. We also found that Comey usurped the authority of the Attorney General, and inadequately and incompletely described the legal position of Department prosecutors.

The same conclusion with respect to Comey’s handling of the Weiner laptop:

We found no evidence that Comey’s decision to send the October 28 letter was influenced by political preferences…

Much like with his July 5 announcement, we found that in making this decision, Comey engaged in ad hoc decisionmaking based on his personal views even if it meant rejecting longstanding Department policy or practice. We found unpersuasive Comey’s explanation as to why transparency was more important than Department policy and practice with regard to the reactivated Midyear investigation while, by contrast, Department policy and practice were more important to follow with regard to the Clinton Foundation and Russia investigations.

Comey’s description of his choice as being between “two doors,” one labeled “speak” and one labeled “conceal,” was a false dichotomy. The two doors were actually labeled “follow policy/practice” and “depart from policy/practice.

…we found it extraordinary that Comey assessed that it was best that the FBI Director not speak directly with the Attorney General and Deputy Attorney General about how best to navigate this most important decision and mitigate the resulting harms, and that Comey’s decision resulted in the Attorney General and Deputy Attorney General concluding that it would be counterproductive to speak directly with the FBI Director.

Why in the world does Jim Comey celebrate being known as the FBI Director who routinely departed from DOJ and FBI policy and practice. He did not follow the rules. He made up rules to suit his personal fancy. The fact that Comey thinks this is a worthy trait tells us everything we know about his lack of character and integrity.

Another critical Inspector General report on Russiagate is still pending and Comey faces great danger on this front. This one will cover the FBI’s conduct with respect to the FISA warrant process. There is no doubt that Jim Comey lied to the FISA court in asserting that the information derived from the Steele Dossier was true and verified. But he will not be alone in this finding. Lying to a Federal court is a charge with weight and teeth. That is still hanging over Comey’s head.

I think DOJ did the right thing in not trying to prosecute Comey over the memo’s he drafted. It is a nuanced process crime and would be tough to present to a jury. Lying about the FISA warrant is completely different and more profound.

Barr’s Department of Justice should prosecute Comey and others on that issue. If they do not, then the cause of justice in our Republic will be dead. It is that simple. Justice is supposed to be blind in terms of not having a preconceived conclusion about guilt or innocence. This also means that your status and wealth should not provide you protection against being held accountable for illegal acts. The jury remains out with respect to what Attorney General Barr will do. I still give him the benefit of the doubt.

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

“Things Are Going To Get Worse” – Florida Gas Shortages Intensify As Dorian Becomes Category 3 Hurricane

Hurricane Dorian strengthened to a Cat 3 storm Friday afternoon with 115 mph winds as Florida Gov. Ron DeSantis promised state troopers would escort trucks of fuel to areas along the east coast that could be directly in the storm’s path amid worsening fuel shortages, ABC News reported.

Following several seriously damaging hurricane seasons in recent years, stores and gas stations were already reporting outages of critical supplies like bottled water and gas on Thursday, and the situation only got worse on Friday, as even more gas stations reported running out of fuel.

Gasoline price-tracking app GasBuddy estimated that 31% of retail gas sellers in the Orlando-Daytona Beach-Melbourne area were dry as of Friday morning, according to Bloomberg.

Despite being the third-most-populous state in the country, Florida doesn’t have a single fuel pipeline. The nearest one is a Colonial line that delivers to Bainbridge, Georgia. From there, gas is loaded onto trucks and shipped to gas stations. The state also relies on tanker deliveries for fuel, which could create serious problems if the storm leaves the state’s ports shut for days, BBG reports.

Florida Petroleum Marketers Association executive director Ned Bowman said trucks were lined up at wholesale fuel terminals. Two tankers carrying refined petroleum products were heading to a port in the Everglades near Fort Lauderdale. Despite this, Bowman said the supply situation was still “pretty good.” 

Still, as one analyst said, the impact of Dorian would likely be an event that would impact almost every driver in the state.

“I don’t want to be the one to say things are going to get worse, but this is going to be an event that the average driver is going to notice,” said Patrick DeHaan, senior petroleum analyst at GasBuddy. “There is going to be a kink in the hose” of Florida’s gas supply, he added.

One gas clerk attendant told BBG that although the supply shortages at his station were definitely “an inconvenience,” customers “all came back” once the gas station had received another shipment of fuel.

“We just go with the flow around here,” the attendant told BBG. “I think it will get pretty busy soon.”

Meanwhile, satellite imagery shared by NOAA, a US federal agency charged with tracking hurricanes, showed the eye of the storm beginning to form over the Atlantic.

Other clips making the rounds on social media showed offered other mesmerizing views of Dorian from space.

According to the latest update from the National Hurricane Center, Dorian is now officially a “major hurricane.”

After turning slightly south on Friday, Dorian is now forecast to make landfall near Jupiter, Fla. early Tuesday as a Category 4 storm with winds up to 145 mph. This could make Dorian one of the most powerful storms in the state’s history. Dorian would be only the ninth hurricane to make landfall with winds north of 140 mph since record-keeping began in 1851. This means people will at least have time to enjoy their long holiday weekend while they batten down the hatches and stock up on emergency supplies. Following Gov. DeSantis’s own state-wide declarations, President Trump on Friday issued a federal state of emergency declaration for Florida on Friday, USA Today reported, which could grant the state access to federal disaster-relief resources more quickly once Dorian makes landfall.

via ZeroHedge News https://ift.tt/2ZEFvM7 Tyler Durden

Feminist Thought-Leader Claims Milking Cows Is The Same As Rape

Authored by Simon Black via SovereignMan.com,

Welcome to our Friday roll up, where we highlight the most interesting, absurd, and concerning stories we are following this week.

Local tax collector ruins children’s entrepreneurship event

Every summer, a Utah non-profit agency called the Libertas Institute holds an entrepreneurship event for children.

It’s a wonderful idea– children as young as 5 gather together in a marketplace to buy and sell products and services that they’ve created to one another.

And parents are strongly encouraged to step back and let their kids be in charge– advertise, negotiate, count money, and make the sale. So it really is children doing business with other children. Obviously no one is getting rich from this; the larger point is to start cultivating the desire within the next generation to build and grow their own companies.

The Libertas Institute held one such event at Spanish Fork, Utah a few weeks ago on August 7. And for the first time since they’ve been holding these, the local tax collectors showed up, demanding that the kids pay city sales tax on the day’s transactions.

Moreover, the tax collectors insisted that even kids who didn’t make a single sale that day should still file tax forms with the state government.

Click here for the full story.

San Francisco continues reinventing the English language

The City of San Francisco is back at it. A few weeks ago we told you they were ‘gender neutralizing’ the English language, changing words like “manhole” into “maintenance hole”.

They’re terrified that someone might be offended by words like “manhole”, so they’ve cleansed the dictionary and demanded that all city workers and agencies begin using the new gender-neutral language.

Now they’re extending their sensitivities to even more groups.

The word “felon” will henceforth be replaced with “justice involved person”. Because we’d hate for felons to be offended.

And a convict going back to prison will now be a “returning resident.”

I can’t even imagine how that will sound in a courtroom: “That justice involved person is going to be a returning resident!”

Click here for the full story.

Cop tries to shoot innocent teenager, misses, and hits another innocent bystander

On the morning of February 10, 2015, a cop saw a group of teenagers a few blocks from their school. One of them was holding a toy gun– the kind with a giant, bright orange tip on it..

So without any warning, or any request to drop the weapon, he shot at the kid with the toy gun.

But the bullet missed the intended target, and instead hit another one of the teenagers.

Despite this appalling blunder, the cop handcuffed and detained the students for five hours– probably in a desperate attempt to try to find something to pin on them to take the focus off the fact that he just shot an innocent, unarmed kid.

The student that was accidentally shot has tried to sue the police officer.

But a federal appeals court has just thrown out the case, ruling that the police officer ha ‘qualified immunity’.

In other words, the cop cannot be sued for something he did in the performance of his official duties… even when his official duties involved shooting at a bunch of teenagers with no warning.

Click here for the full story.

Got Milk? You’re a rapist.

Humans have been herding and breeding livestock for their milk for about 10,000 years.

That likely played a huge role in developing an advanced human society.

But we are now such an advanced species that proponents of feminist theory now claim artificial insemination of cows is rape, and milking them is sexual abuse.

In a paper called “Readying the Rape Rack: Feminism and the Exploitation of Non-Human Reproductive Systems,” one such enlightened thinker argues that feminists need to incorporate non-humans females into their movement.

And the paper demands that women should challenge the “outdated stereotype about women being caretakers and most importantly child-bearers [which] remains consistent in the dairy industry.”

Sounds like comparing dairy farming to rape might be insensitive to actualrape victims… But what do I know, I’m just a patriarchal oppressor.

Click here for the full story.

Cop and Paramedic assault a 76-year old man trying to help

A self-described frail 76-year-old man, Freddie Judd, heard his friend’s store was burning down.

So Judd drove to the scene and saw firefighters struggling to open the main door to the store.

Judd went up to an officer to try to give her the keys to the front door.

According to court documents, the officer then threw Judd to the ground and handcuffed him, at which point a nearby paramedic came over to help beat him.

Judd did not resist, but he was still beaten, and sustained a broken elbow.

Click here for the full story.

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Virtue-Signaling Canadians Love Carbon Initiatives…Until They Have To Pay For Them

Canadians are super environmentally friendly – until they have to pay for it.

 

According to new data released by the Public Policy Forum’s Digital Democracy Project, Canadian voters rank the environment as their second greatest political concern – voicing widespread support for reducing Canada’s greenhouse gas emissions.

That support quickly melts, however, when voters are asked to personally pay more to combat climate change, according to The Star.

It’s a general human phenomenon that we don’t align personal sacrifice with personality priorities. I mean, that’s why people don’t exercise, right?,” said University of Toronto political science professor and survey lead for the Digital Democracy Project, Peter Loewen. 

“I think what’s happening here, frankly with the carbon tax, is the government has chosen an instrument that’s very visible, in which the cost can be expressed and the cost can be exaggerated, but the cost is very understandable to citizens.”

The environment and climate change are expected to be central issues in the upcoming federal election campaign. The Liberal government has brought in a carbon levy of $20 per tonne of emissions this year, rising to $50 per tonne in 2022. 

Prime Minister Justin Trudeau has attempted to walk a line between action on climate change and support for the country’s natural resources sector, notably through the purchase of the Trans Mountain pipeline.

The Conservatives oppose the carbon levy and, while they promise to crack down on heavy industrial emitters, are offer no targets for emission reductions.

The good news for the Liberals is that not only is the environment a major political issues for Canadians — with 17 per cent of respondents saying it’s the most important issue to them — but there is strong support for reducing greenhouse gas emissions. –The Star

While 74% of respondents said they are in favor of Canada reducing emissions – mostly through renewable energy subsidies (72%), just 36% said they would support increasing the carbon tax

What’s more, the survey revealed that Canadians are extremely sensitive to increases in the carbon price by breaking respondents up into three groups; “one group told a carbon tax would increase the cost of gasoline by five cents a litre, another group by 10 cents, and the final group by 15 cents.” 

At five cents, 42 per cent of respondents are estimated to oppose a carbon tax, but this rises to 51 per cent at 15 cents per litre,” the survey reveals. “This finding illustrates the political perils of using carbon taxes to secure emissions reductions needed to meet Canada’s international obligations.” 

Opposition to raising the carbon price was clearly split along partisan lines. A majority of Conservative voters opposed the carbon price at any cost, while supporters of the left-leaning Liberals, New Democrats, Greens and Bloc Québécois were unresponsive to a hike in the price. –The Star

 
“This lack of responsiveness to the price could possibly be because these respondents are more willing to accept sacrifices needed to reduce emissions,” the report reads. “(But) non-partisans appear to behave more like right-leaning partisans. At five cents, they share a similar level of opposition to the carbon tax as left-leaning partisans (41 per cent each). However, they move toward majority opposition at 15 cents (53 per cent).”

1,554 voting-aged Canadians were surveyed between Aug 17 and Aug 23 – and the results were weighted by region, age and gender. 

via ZeroHedge News https://ift.tt/30NcwqS Tyler Durden

Dear Trump Advisors: Prop The Market Up & Lose In 2020, Or Let It Crash Now And Win In 2020

Authored by Charles Hugh Smith via OfTwoMinds blog,

The Everything Bubble has topped out, and trying to push it higher for the next 14 months is a sure way to increase the damage next year.

One of the more reliable truisms is that Americans vote their pocketbook: if their wallets are being thinned (by recession, stock market declines, high inflation/stagnant wages, etc.), they throw the incumbent out, even if they loved him the previous year when their wallets were getting fatter. (Think Bush I, who maintained high approval ratings but ended up losing the 1992 election due to a dismal economic mood.)

As a result, politicians try to time the economy to align with elections. Get any economic pain over with early in the election cycle, then prime the fiscal pump in Year 3 to boost the economy in Year 4 (election year).

The global economy and the credit cycle aren’t always so pliable or predictable. Oil can soar due to geopolitical tensions, or a speculative financial bubble can burst (subprime mortgages in 2008, dot-coms in 2000), torpedoing the economy.

The intuitive strategy is to prop up the economy and stock market by any means available heading into the election cycle: if we can just keep this over-valued pig of a market aloft until November of next year, so the thinking goes, we’ll likely win the election (or at least we won’t lose because stocks and the economy tanked).

But this strategy is a loser when the credit cycle has run past its expiration date: most credit-based expansions last at most seven years, and here we are in Year Ten. Credit exhaustion is setting in, speculative bets are maxxed out and the global economy is rolling over.

Trying to prop a speculative, over-valued market up for another 14 months is like shoveling sand against the tide. All that this will accomplish is the well-deserved market decline will be pushed forward so it will occur just before the election, destroying the incumbent’s chances to win re-election. In sum: gravity eventually wins and the pig falls to Earth.

At the end of the cycle, the counter-intuitive plan is the winning strategy: crash the market now so a recovery can be engineered going into the election season. The ideal moment to crush the stock market is now: push it over the cliff and let it wallow for a few months, then ride to the rescue with some hope-inspiring coups (a China Trade Deal, for example) that re-start “animal spirits” a few months before electioneering gets serious.

Trying to stop the financial tides at the end of the cycle is a guaranteed way to lose an election. Timing is everything in trading and politics, and the time to push the stock market over the cliff is now. Keeping this over-valued pig aloft much longer will guarantee there won’t be enough time to engineer a recovery before the election–even if the recovery is only of sentiment.

The Everything Bubble has topped out, and trying to push it higher for the next 14 months is a sure way to increase the damage next year. The winning move here is get the pain of a market crash over with now while there’s still time to let the conflagration burn all the dead wood and set up conditions for a reversal in sentiment from gloom-and-doom to hope for fatter wallets tomorrow.

Trump’s advisors would be wise to heed the lessons of history: when the economy and stock market tank in Year Four of the election cycle, the incumbent loses. If the pain is taken in Year Three and a “recovery” is cobbled together in Year Four, the incumbent usually wins re-election.

The Democratic candidate would be ideally served by the Everything Bubble hanging on by a thread into 2020 and then collapsing in a heap.

Again, the winning strategy is counter-intuitive: the Democrats should be pulling out all the stops to prop up the Everything Bubble and keep the economy from succumbing to gravity for another few quarters, so the whole shebang will collapse under its own weight at the point where there is no time left for the incumbent to engineer a recovery.

*  *  *

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Trump 2020 Website Error Page Trolls “President Hillary”

President Trump’s official 2020 reelection campaign website has a fun easter-egg, not so carefully hidden.

When users are unable to reach a page, the default 404 error page mocks 2016 Democratic presidential nominee Hillary Clinton by showing her as the commander in chief:

“Oops! This is awkward,” the error page reads.

“You’re looking for something that doesn’t exist…”

Awkward indeed, or perhaps a moment of levity amid the nastiness of DC politics in recent years.

We are sure many on the left will be ‘triggered’ by this and demand whoever provides hosting services take the site down, blaming sexism or racism, or some other ism… Happy Labor Day Weekend!

via ZeroHedge News https://ift.tt/2HydYG8 Tyler Durden

Yuan Crashes Most In 25 Years As August Ends With Bonds & Bullion Bid

Well that was quite a month…

High(Low)lights…

  • China’s Renminbi suffered its biggest monthly loss since 1994

  • EM FX tumbled to a record low, worst month in a year

  • US Treasury yields plunged in August by most since Sept 2011 (to record low yields at the long-end)

  • US Yield Curve flattened most in August since Jan 2016 (to its flattest since 2007)

  • Bund yields tumbled 26bps to record lows – the biggest monthly drop since June 2016 (Brexit vote)

  • Treasury ‘VIX’ spiked most in August since May 2009

  • Iron Ore Futures (Singapore) suffered their worst month ever…

  • Gold has the best August dollar gains since Feb 2016

  • Silver had best August percentage gain since June 2016 (Brexit vote)

 

Stocks

US and Chinese stocks are surprisingly aligned YTD (both up around 16/17%) with Europe lagging (+13%)…

Source: Bloomberg

But on the month, all major regions saw stocks lose a similar 1.5 to 2.0%…

Source: Bloomberg

 

US equities ended the month lower with Trannies and Small Caps worst, Dow and S&P the least worst…

Source: Bloomberg

 

Only The Dow Industrials and Transports are green from last week’s Trump tantrum (S&P unch)…

NOTE – last minute panic-buying

 

Defensives dominated the month…

Source: Bloomberg

The Dow managed to get back above its 100DMA but faded into it at the close today…

 

Buybacks saved stocks numerous times this month…

Source: Bloomberg

And while short-squeezes were used to keep stocks afloat, their surges were weaker and weaker…

Source: Bloomberg

And… as @TaviCosta notes, another one bites the dust. This beauty was the #2 performer in the S&P 500 since March of ’09! Just broke down from multi-year support line as well.

Source: Bloomberg

 

Bonds

Treasury yields utterly collapsed in August (30Y was down over 60bps at its lowest)… The biggest monthly drop in the long-bond’s yields since Sept 2011

Source: Bloomberg

30Y ended the week below 2.00% for the first time ever…

Source: Bloomberg

A bloodbath for bond bears…

Source: Bloomberg

And the yield curve collapsed (3m10Y) holding its inversion for

Source: Bloomberg

And 2s10s closed the week inverted (biggest 2-month flattening since Jan 2015)…

Source: Bloomberg

And before we leave bondland, we note that 30% of global IG corporate debt is now trading at a negative yield!!

Source: Bloomberg

FX

The Dollar rallied in August helped by Yuan weakness slightly offset by Yen strength…

Source: Bloomberg

The broad trade-weighted dollar is at an all-time record high…

Source: Bloomberg

EURUSD tumbled back below 1.10 for the first time since May 2017

Source: Bloomberg

Emerging Market FX tumbled to record lows…

Source: Bloomberg

Cryptos ended in the red for the month after yesterday’s plunge (Litecoin the biggest loser)…

Source: Bloomberg

With Bitcoin back below $10k…

Source: Bloomberg

 

Commodities

Silver’s best month since the Brexit vote (June 2016) and Gold rallied but crude and copper were clubbed like baby seals…

Source: Bloomberg

Cotton fell for a fifth straight month in August, the worst such run in more than 14 years, as slowing demand feeds expectations for a global surplus.

Iron Ore Futures (Singapore) suffered their worst month ever…

Source: Bloomberg

Silver led the precious metals but Platinum had a big month (up most since Jan 2017)

Source: Bloomberg

Gold ended the week unchanged but well up from Trump’s tantrum…

 

But Silver dramatically outperformed (up for the 7th week of the last 8)…

Source: Bloomberg

With Silver at its highest since April 2017

Source: Bloomberg

Gold continues to track the surge in negative-yielding debt volumes almost perfectly…

Source: Bloomberg

 

Finally, bonds and stocks had a very different month, you decide which you trust more…

Source: Bloomberg

Will it be 1998 or 2013?

Source: Bloomberg

While August saw a flood into safe-havens like bond and bullion, volatilities are notably divergent in Treasuries and Gold relative to other asset classes…

Source: Bloomberg

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

Twitter CEO Jack Dorsey’s Twitter Account Hacked

It is probably not a good look for a company that claims it has its countless privacy issues under control, to have the twitter account of its CEO, Jack Dorsey, hacked as appears to have been the case this afternoon.

At 3:44pm ET, the @Jack account inexplicably tweeted “Shoutout Debug, Corey, NuBLoM, Joe, Owen, & Aqua #ChucklingHella”, which would suggest that either @Jack lost it, or, perhaps just as bad, the account of Twitter’s CEO was hacked.

Twitter has yet to comment on this embarrassing situation.

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