What Do We Owe to People Whose Countries We Have Broken?

“You are going to be the proud owner of 25 million people. You will own all their hopes, aspirations, and problems. You’ll own it all.” According to legend, Secretary of State Colin Powell offered that pithy thought to George W. Bush in 2002 as they contemplated invading Iraq. As The Washington Post‘s Bob Woodward later wrote: “Powell…called this the Pottery Barn rule: You break it, you own it.”

Setting aside the wildly problematic idea of “owning” 25 million people, subsequent events in the region have demonstrated that Powell was onto something. In both Iraq and Afghanistan, the post-9/11 invasions were followed by yearslong slogs. The citizens of both countries have been made meaningfully worse off by ongoing American military meddling—assuming they survived at all.

We don’t “own” the people in the nations we have upended, but it’s worth asking what we owe them.

What if the best way to discharge our debt to the victims of our foreign policy is to offer them a chance to get out and start over? The idea is not without precedent in American immigration policy.

The most modest form of this is the special rule that allows civilians who might be persecuted for assisting U.S. armed forces abroad to seek refuge here. That process is cumbersome and frequently requires high-level intervention, as Joe Coon described in our November 2017 issue, recounting his efforts to get his Iraqi interpreter out of the country. But it is an option. And its very existence shows that our lawmakers already implicitly acknowledge the moral obligations we’re incurring with our foreign adventurism.

On a larger scale, we can look to the Indochina Migration and Refugee Assistance Act of 1975, a response to the chaos in Southeast Asia as the Vietnam War wound down. In the immediate aftermath of the war’s end, more than 130,000 Vietnamese who had worked with American or South Vietnamese forces were evacuated to the United States. But the region continued to fall apart after that, resulting in the eventual resettlement of hundreds of thousands of “boat people” and others in the U.S. throughout the 1980s.

Unsurprisingly, this effort was controversial. It left many in refugee-camp limbo, sometimes for years. But again, underpinning the effort was the recognition that the U.S. had in some sense broken Vietnam—and had made the lives of those who collaborated with U.S. forces there especially untenable.

This treatment stands in contrast to Washington’s more recent relations with the Kurds. This transnational population has been screwed over with special zeal by U.S. foreign policy, arguably going back to World War I. American leaders have repeatedly broken promises and left the Kurds to the mercies of more-powerful neighboring populations, most recently when Donald Trump exposed the Kurdish people to Turkey’s reprisals. Kurds who have come to the U.S. have made a good life here, including the robust Iraqi Kurdish population in Nashville that Reason profiled in October 2017, but no such offer was made this autumn to the people who had been fighting ISIS and other Islamic militants alongside American forces.

These decisions to open our doors or slam them shut were highly political, and they were made at moments of crisis—albeit totally foreseeable and predictable crisis. In fact, until 1980, refugee populations were allowed in under presidential parole power. Even today, presidents typically behave as though they are responsible for and have wide latitude in such matters. Under President Jimmy Carter, the U.S. adopted a more formal understanding of what makes someone a refugee, but such strictures typically only last until the next crisis.

It is long past time to flip the script on legal immigration in the United States to a dramatically expanded system like the one described in James Stacey Taylor’s “There Is No Line” (page 24). But even if we assume a system of continued artificial visa scarcity, people who wish to emigrate from nations we have broken have a unique claim on some of those slots.

If we could figure out how to make the Pottery Barn rule function in a more predictable and intentional way, it could create a virtuous cycle.

Many of those who favor a more aggressive foreign policy are also immigration restrictionists, a pairing most often found within the GOP. Why not yoke together some natural consequences? Automatically higher quotas for people from the nations where we have intervened would provide a useful reminder that we’d better not pick a fight unless we’re sure it will make people better off or unless we’re willing to welcome thousands or even millions of additional immigrants to our shores.

A possible corollary to the Pottery Barn rule is something voiced by 2020 hopeful Rep. Tulsi Gabbard (D–Hawaii): “Before sending our men and women into harm’s way, we’re not hearing about what is the problem that we’re trying to solve, and what is the clear, achievable goal that we’re sending them to do?” she told Reason‘s John Stossel (page 44). “Without that, we end up with the result that we have, where we have troops who are deployed in these other countries without a real understanding of what they’re there to accomplish, and at what point they’ve accomplished that and then can come home.”

Let’s call this the Target rule: If you absolutely must go in, you need a game plan. Otherwise, after spending much more time and money than you expected, you’ll probably end up leaving without what you came for in the first place.

Realistically, it’s probably too much to ask our policy makers and beribboned generals to become principled noninterventionists or even that they practice the most basic levels of humility. And that means the question of what to do once we’ve made the inevitable mess abroad isn’t going away.

Since formal declarations of war duly approved by Congress are now considered a quaint anachronism, determining who would be eligible for whatever special treatment we decided on would be tricky. And people from many countries are suffering not as a result of a formal military incursion but simply as a consequence of the United States’ global leadership in the brutal and pointless war on drugs.

The caravan that came to our southern border and dominated headlines for months was composed largely of people who hailed from such countries—places where violence is generated largely by the prohibition on cocaine. The long-term solution to this is clear: end the war on drugs. But in the short term, accommodations might be in order for people whose homelands are no longer hospitable thanks to Americans’ hypocrisy about chemical pleasure.

Our immigration policy—and especially our policy for those seeking refuge—has moved the wrong direction in recent years, with lower quotas, metastasizing bureaucracies, and cruel enforcement. But our foreign policy has been even worse. We are standing in Pottery Barn smashing vase after vase while promising to make a beautiful new fruit bowl with the pieces.

During a 2004 presidential debate, Sen. John Kerry amended the Pottery Barn rule to “if you break it, you fix it.” But as anyone who has ever knocked over mom’s favorite lamp knows, sometimes it’s best to ‘fess up and make amends in other ways instead of trying to fix something fragile and complex that you don’t really understand.

For many of the millions of people whose lives have been shattered by Washington’s meddlesome foreign policy, their hopes, dreams, and aspirations change when their countries explode around them. They begin to think about a new life, perhaps across the ocean or north of the Rio Grande. We owe it to them to make that a possibility.

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What Do We Owe to People Whose Countries We Have Broken?

“You are going to be the proud owner of 25 million people. You will own all their hopes, aspirations, and problems. You’ll own it all.” According to legend, Secretary of State Colin Powell offered that pithy thought to George W. Bush in 2002 as they contemplated invading Iraq. As The Washington Post‘s Bob Woodward later wrote: “Powell…called this the Pottery Barn rule: You break it, you own it.”

Setting aside the wildly problematic idea of “owning” 25 million people, subsequent events in the region have demonstrated that Powell was onto something. In both Iraq and Afghanistan, the post-9/11 invasions were followed by yearslong slogs. The citizens of both countries have been made meaningfully worse off by ongoing American military meddling—assuming they survived at all.

We don’t “own” the people in the nations we have upended, but it’s worth asking what we owe them.

What if the best way to discharge our debt to the victims of our foreign policy is to offer them a chance to get out and start over? The idea is not without precedent in American immigration policy.

The most modest form of this is the special rule that allows civilians who might be persecuted for assisting U.S. armed forces abroad to seek refuge here. That process is cumbersome and frequently requires high-level intervention, as Joe Coon described in our November 2017 issue, recounting his efforts to get his Iraqi interpreter out of the country. But it is an option. And its very existence shows that our lawmakers already implicitly acknowledge the moral obligations we’re incurring with our foreign adventurism.

On a larger scale, we can look to the Indochina Migration and Refugee Assistance Act of 1975, a response to the chaos in Southeast Asia as the Vietnam War wound down. In the immediate aftermath of the war’s end, more than 130,000 Vietnamese who had worked with American or South Vietnamese forces were evacuated to the United States. But the region continued to fall apart after that, resulting in the eventual resettlement of hundreds of thousands of “boat people” and others in the U.S. throughout the 1980s.

Unsurprisingly, this effort was controversial. It left many in refugee-camp limbo, sometimes for years. But again, underpinning the effort was the recognition that the U.S. had in some sense broken Vietnam—and had made the lives of those who collaborated with U.S. forces there especially untenable.

This treatment stands in contrast to Washington’s more recent relations with the Kurds. This transnational population has been screwed over with special zeal by U.S. foreign policy, arguably going back to World War I. American leaders have repeatedly broken promises and left the Kurds to the mercies of more-powerful neighboring populations, most recently when Donald Trump exposed the Kurdish people to Turkey’s reprisals. Kurds who have come to the U.S. have made a good life here, including the robust Iraqi Kurdish population in Nashville that Reason profiled in October 2017, but no such offer was made this autumn to the people who had been fighting ISIS and other Islamic militants alongside American forces.

These decisions to open our doors or slam them shut were highly political, and they were made at moments of crisis—albeit totally foreseeable and predictable crisis. In fact, until 1980, refugee populations were allowed in under presidential parole power. Even today, presidents typically behave as though they are responsible for and have wide latitude in such matters. Under President Jimmy Carter, the U.S. adopted a more formal understanding of what makes someone a refugee, but such strictures typically only last until the next crisis.

It is long past time to flip the script on legal immigration in the United States to a dramatically expanded system like the one described in James Stacey Taylor’s “There Is No Line” (page 24). But even if we assume a system of continued artificial visa scarcity, people who wish to emigrate from nations we have broken have a unique claim on some of those slots.

If we could figure out how to make the Pottery Barn rule function in a more predictable and intentional way, it could create a virtuous cycle.

Many of those who favor a more aggressive foreign policy are also immigration restrictionists, a pairing most often found within the GOP. Why not yoke together some natural consequences? Automatically higher quotas for people from the nations where we have intervened would provide a useful reminder that we’d better not pick a fight unless we’re sure it will make people better off or unless we’re willing to welcome thousands or even millions of additional immigrants to our shores.

A possible corollary to the Pottery Barn rule is something voiced by 2020 hopeful Rep. Tulsi Gabbard (D–Hawaii): “Before sending our men and women into harm’s way, we’re not hearing about what is the problem that we’re trying to solve, and what is the clear, achievable goal that we’re sending them to do?” she told Reason‘s John Stossel (page 44). “Without that, we end up with the result that we have, where we have troops who are deployed in these other countries without a real understanding of what they’re there to accomplish, and at what point they’ve accomplished that and then can come home.”

Let’s call this the Target rule: If you absolutely must go in, you need a game plan. Otherwise, after spending much more time and money than you expected, you’ll probably end up leaving without what you came for in the first place.

Realistically, it’s probably too much to ask our policy makers and beribboned generals to become principled noninterventionists or even that they practice the most basic levels of humility. And that means the question of what to do once we’ve made the inevitable mess abroad isn’t going away.

Since formal declarations of war duly approved by Congress are now considered a quaint anachronism, determining who would be eligible for whatever special treatment we decided on would be tricky. And people from many countries are suffering not as a result of a formal military incursion but simply as a consequence of the United States’ global leadership in the brutal and pointless war on drugs.

The caravan that came to our southern border and dominated headlines for months was composed largely of people who hailed from such countries—places where violence is generated largely by the prohibition on cocaine. The long-term solution to this is clear: end the war on drugs. But in the short term, accommodations might be in order for people whose homelands are no longer hospitable thanks to Americans’ hypocrisy about chemical pleasure.

Our immigration policy—and especially our policy for those seeking refuge—has moved the wrong direction in recent years, with lower quotas, metastasizing bureaucracies, and cruel enforcement. But our foreign policy has been even worse. We are standing in Pottery Barn smashing vase after vase while promising to make a beautiful new fruit bowl with the pieces.

During a 2004 presidential debate, Sen. John Kerry amended the Pottery Barn rule to “if you break it, you fix it.” But as anyone who has ever knocked over mom’s favorite lamp knows, sometimes it’s best to ‘fess up and make amends in other ways instead of trying to fix something fragile and complex that you don’t really understand.

For many of the millions of people whose lives have been shattered by Washington’s meddlesome foreign policy, their hopes, dreams, and aspirations change when their countries explode around them. They begin to think about a new life, perhaps across the ocean or north of the Rio Grande. We owe it to them to make that a possibility.

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Sell!

Sell!

Authored by Sven Henrich via NorthmanTrader.com,

How to assess risk in a risk free world? Stocks are relentlessly bid up like taped bananas on a wall with charts taking on banana like shapes: Inverted, pointing relentlessly north. “Melt-up time” is the theme and sentiment de jour.

Trapped central banks keep carpet bombing markets with liquidity and the ever present trade carrot is dangled on a daily basis especially as soon as markets drop.

We saw some of this this week following an 850 point drop in the $DJIA which immediately prompted renewed trade optimism headlines.

Global risk factors such as mounting corporate debt are ignored as are now steepening yield curves coming from inversion, non confirmation signals such as weakening transports, negative divergences, vast technical extensions, and lack of evidence of accelerating growth.

None have mattered so far as the simple matter of fact is this:

But there is risk of quantitative failure and the latest rounds of stimulus not producing much other than temporary asset price inflation.

Few appear to be selling right now save for the occasional down day here and there, the drive to buy each tiny dip and chase ever higher prices remain the predominant aspect of the market structure and many are wanting to hold off until January to lock in any gains cognizant of the yearly tax window.

Still, last week was a warning. The bid can disappear suddenly and it requires massive amounts of liquidity and jawboning to keep the bid going. That in itself should give pause. This circus like atmosphere is what it takes.

Be clear: Melt-ups are dangerous, they defy reason, sense and prudence. Markets historically don’t top during December and with global liquidity continuing to flush through the system the run may well continue into 2020 especially if a trade deal actually does get concluded.

Tops are processes and so is selling and selling is hard, very hard.

So why bother making a sell case? Because nobody is and in my opinion a balancing view is needed as risks, while currently ignored as they were in 2007, are building and these risks can be found in the charts.

For further background and a run through what the charts are saying please see this week’s video below (and yes I need to get a better mic and will for 2020, so hang in there):

*  *  *

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Tyler Durden

Mon, 12/09/2019 – 05:00

via ZeroHedge News https://ift.tt/2s7SNWw Ty

Africom Confirms Russian Air Defense System Shot Down US Drone Over Libyan Capital  

Africom Confirms Russian Air Defense System Shot Down US Drone Over Libyan Capital  

U.S. Africa Command (Africom) has confirmed that an unarmed American drone over the Libyan capital last month was shot down by Russian air defenses, reported Reuters.

Africom dropped three headlines via Reuters in the overnight, revealing how the surveillance drone was shot down over Tripoli. 

  • EXCLUSIVE-U.S. MILITARY BELIEVES UNARMED US DRONE REPORTED LOST NEAR LIBYA’S CAPITAL LAST MONTH WAS SHOT DOWN BY RUSSIAN AIR DEFENSE SYSTEMS

  • EXCLUSIVE-U.S. MILITARY’S AFRICA COMMAND SAYS IT IS DEMANDING RETURN OF US DRONE WRECKAGE

  • EXCLUSIVE-U.S. MILITARY SAYS AIR DEFENSES WERE OPERATED EITHER BY RUSSIAN CONTRACTORS IN LIBYA OR HAFTAR’S “LIBYAN NATIONAL ARMY”

The headlines specify Russian military contractors have operated alongside east Libya-based commander Khalifa Haftar in Libya’s bloody civil war. The contractors used Russian missile defense systems last month to shoot down a US drone. 

Africom’s Gen. Stephen Townsend told Reuters in a statement that he believes the Russian air defense operators “didn’t know it was a US remotely piloted aircraft when they fired on it.”

“But they certainly know who it belongs to now and they are refusing to return it. They say they don’t know where it is, but I am not buying it,” Townsend said.

Africom’s spokesman Air Force Col. Christopher Karns told Reuters that either Russian military contractors or Haftar’s Libyan National Army were operating Russian missile launchers at the time the incident was reported around Nov. 21.

Karns said Africom believes air defense operators accidentally shot down the US drone after “mistaking it for an opposition” aircraft.

Townsend also said Russia’s increasing presence in Oil-rich Libya had alarmed Africom. 

“This highlights the malign influence of Russian mercenaries acting to influence the outcome of the civil war in Libya, and who are directly responsible for the recent and sharp increase in fighting, casualties and destruction around Tripoli,” Townsend said.

Libya was thrown into civil war nearly a decade ago when NATO forces overthrew Moammar Gadhafi. It’s been another great blunder for Western military forces who’ve spent the last several decades crusading around the Middle East.

The latest outbreak of fighting has been based in Tripoli. Since about 2015, Libya has seen its government splintered into two, one based in Tripoli and the other in the country’s east. The eastern government forces have been attempting to recapture Tripoli since April, and fierce fighting in the capital continues into the late year.  


Tyler Durden

Mon, 12/09/2019 – 04:15

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Brickbat: Drink Up

A Berkeley, California, law will require restaurants to charge customers 25 cents for a single-use cup starting in January. A similar law will take effect in Palo Alto in 2021, and San Francisco Supervisor Aaron Peskin has introduced a bill that would require restaurants to charge for disposable cups. Supporters say these laws will reduce waste, but advocates for the disabled say those with limited movement or sensation in their hands may find it hard to lift glass or ceramic cups. Berkeley is trying to find a way to exempt the disabled from having to pay for paper cups. But so far, hasn’t found an answer. “You don’t want a customer to have to say, ‘Hi, I’m disabled, give me a free cup,'” said Sophie Hahn, the council member who introduced the law. “By the same token, you don’t want a worker to have to say, ‘Well, what kind of disability do you have and how do you prove it?'”

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Brickbat: Drink Up

A Berkeley, California, law will require restaurants to charge customers 25 cents for a single-use cup starting in January. A similar law will take effect in Palo Alto in 2021, and San Francisco Supervisor Aaron Peskin has introduced a bill that would require restaurants to charge for disposable cups. Supporters say these laws will reduce waste, but advocates for the disabled say those with limited movement or sensation in their hands may find it hard to lift glass or ceramic cups. Berkeley is trying to find a way to exempt the disabled from having to pay for paper cups. But so far, hasn’t found an answer. “You don’t want a customer to have to say, ‘Hi, I’m disabled, give me a free cup,'” said Sophie Hahn, the council member who introduced the law. “By the same token, you don’t want a worker to have to say, ‘Well, what kind of disability do you have and how do you prove it?'”

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Ilargi: Assange And Auschwitz

Ilargi: Assange And Auschwitz

Authored by Raul Ilargi Meijer via The Automatic Earth blog,

When I read that Angela Merkel visited Auschwitz this week (for the first time ever, curiously, after 14 years as Chancellor, and now it’s important?), my first thought was: she should have visited Julian Assange instead. I don’t even know why, it just popped into my head. And then reflecting on it afterwards, of course first I wondered if it’s acceptable to compare nazi victims to Assange in any way, shape or form.

There are many paths to argue it is not. He is not persecuted solely for being part of a group of people (we can’t really use “race” here). There are not millions like him who are being tortured and persecuted for the same reasons he is. There is no grand scheme to take out all like him. There is no major police or army force to execute any such scheme. These things are all obvious.

But I grew up in Holland, where unlike in Merkel’s Germany, the aftermath of WWII and the Holocaust was very much present. I looked it up, and it’s already almost 10 years ago that I wrote Miep Gies Died Today, in which I explained this. Miep Gies was a woman who worked for Anne Frank’s father Otto, helped hide the family in the annex, and after the war secured Anne’s diary (or we would never have known about it) and handed it to Otto Frank.

So accusing me of anti-semitism for comparing the Holocaust to what is being done to Assange is not going to work. Why then did Merkel never visit Auschwitz before this week, and when she did, said how important it is to German history? And why did she not visit Assange instead?

Unlike the people who died in Auschwitz and other concentration camps (Anne Frank died in Bergen Belsen from typhoid), Julian Assange today, as we speak, IS being persecuted, he IS being tortured, and he IS likely to die in a prison. What does Angela Merkel think that Anne Frank would have thought about that? Would she have written in her diary that it was okay?

Would all those millions of Jewish and Roma and gay victims have thought that? There are 75+ years that have gone by. We can not get these victims back, we can not magically revive them. But we CAN make sure that what happened to them, torture and murder, doesn’t happen to people today. “Never Again”, right? Well, it IS happening again.

Are we all supposed to go say “I didn’t know” -“Ich hab es nicht gewüsst”- like the Germans did, and all those who collaborated with them across Europe?

There are victims who are dead, and there are victims who are -barely- alive. And if you claim you wish to honor the dead victims, you must ask what they would have felt about the ones like them who are still alive. Otherwise, you’re not honoring them, you’re just posing and acting and, in the end, grossly insulting them.

Julian Assange is not in a German prison, true, but Angela Merkel is still the uncrowned queen of Europe, and if she would visit Julian in his Belmarsh torture chamber it would make a huge difference. That she elects to visit Auschwitz instead, does not only make her appear hollow and empty, it is a grave insult to the likes of Anne Frank and all the other nazi victims.

Which brings me to another Assange-related issue. The Guardian’s editor, Katharine Viner, launched an appeal yesterday for people to donate money to her paper’s “climate emergency” fund. That in itself is fine. If people think they need to help save the planet with their savings, sure.

Though I will always have suspicions about all these things. From where I stand, I see too many people claiming to save the planet, oil CEOs and billionaires first, and too much money being invited to join their funds. If you want to donate something for the cause, why do it via a newspaper? But even with that in mind, yeah, whatever, it’s Christmas time. Who cares how effective the money will be?

My problem with Katharine Viner and the Guardian is that they have played a very active role in the smearing and persecution of Julian Assange. They’ve published articles that were proven to be 100% false, and never retracted them, or apologized, or attempted to make things right. The Guardian is a major reason why Julian is where he is. It has accommodated, make that encouraged, the British people’s “Ich hab es nicht gewüsst”.

You can donate to the Guardian’s climate emergency fund, if you believe they don’t run it to make you think they really care about the planet more than about their bottom line, but be careful: you will also be supporting the further smearing and persecution of Julian Assange. Are you sure you want to do that?

See, the headline for Katharine Viner’s article is: The Climate Crisis Is The Most Urgent Threat Of Our Time. And it’s not. The most urgent threat is that to Julian Assange’s health. That is today, not in 5 or 10 or 100 years. After all, what is the use of saving the planet if we allow the smartest and bravest among us to be tortured to death? What do we think Anne Frank would have said about that?

*  *  *

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Tyler Durden

Mon, 12/09/2019 – 03:30

via ZeroHedge News https://ift.tt/38mr0C8 Tyler Durden

NATO Seeking To “Dominate The World” & Eliminate Competitors: Russia’s Lavrov

NATO Seeking To “Dominate The World” & Eliminate Competitors: Russia’s Lavrov

Russian Foreign Minister Sergei Lavrov has charged NATO with wanting to “dominate the world” a day after 70th anniversary events of the alliance concluded in London.

“We absolutely understand that NATO wants to dominate the world and wants to eliminate any competitors, including resorting to an information war, trying to unbalance us and China,” Lavrov said from Bratislava, the capital of Slovakia, while attending the 26th Ministerial Council of the Organization for Security and Cooperation in Europe (OSCE).

He seized upon NATO leaders’ comments this week, specifically Secretary General Jens Stoltenberg, naming China as a new enemy alongside Russia. Stoltenberg declared at the summit that NATO has to “tackle the issue” of China’s growing capabilities.

Image via AFP

Lavrov told reporters Thursday: “I think that it is difficult to unbalance us and China. We are well aware of what is happening. We have an answer to all the threats that the Alliance is multiplying in this world.” He also said the West is seeking to dominate the Middle East under the guise of NATO as well.

The new accusation of ‘world domination’ comes at a crisis moment of growing and deep divisions over the future of the Cold War era military alliance, including back-and-forth comments on Macron’s “brain death” remarks, and looming questions over Turkey’s fitness to remain in NATO, and the ongoing debate over cost sharing burdens and the scope of the mission. 

“Naturally, we cannot but feel worried over what has been happening within NATO,” Lavrov stated. “The problem is NATO positions itself as a source of legitimacy and is adamant to persuade one and all it has no alternatives in this capacity, that only NATO is in the position to assign blame for everything that may be happening around us and what the West dislikes for some reason.”

Russian Foreign Minister Sergei Lavrov, via AFP.

A consistent theme of Lavrov’s has been to call for a “post-West world order” but that NATO has “remained a Cold War institution” hindering balance in global relations where countries can pursue their own national interests.

NATO still exists, according to Lavrov, in order to “eliminate competitors” and ensure a West-dominated global system in search of new official enemies. 


Tyler Durden

Mon, 12/09/2019 – 02:45

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Christmas Election: A Step Nearer To Brexit?

Christmas Election: A Step Nearer To Brexit?

Authored by Steven Guinness,

Having closely followed Brexit since Article 50 was first triggered in March 2017, what has become apparent to me is how each subsequent extension to the withdrawal process has been met with increased political instability.

Back in May I published an article on Nigel Farage’s Brexit Party just after they had won the UK leg of the EU elections. I wrote about how the rise of the party had coincided – by coincidence or otherwise – with Article 50 having been extended on two occasions.

Briefly, the birth of the party originated prior to the first Article 50 deadline of March 29th. The day after the withdrawal process was extended, Farage was pronounced leader of the Brexit Party. When the second extension of just two weeks was ratified, this time on April 11th for a further six months, twenty four hours later Farage officially launched the party – on the same day Britain had been due to leave the EU.

What has happened since, all within six months, has been threefold.

  • Firstly, Theresa May confirmed that she would step down as Prime Minister on June 7th. The announcement came just a couple of days before the Brexit Party were shown to have won the EU elections with over 30% of the vote.

  • Secondly, with May having resigned, it paved the way for Boris Johnson – the so called ‘populist‘ candidate – to become the next Prime Minister. When Parliament reconvened following the summer recess, MP’s voted to compel Johnson to request an extension to Article 50 until at least January 31st 2020 should the Commons fail to pass a withdrawal agreement by October 19th. After weeks of theatrics with the EU, Johnson brought back to Parliament a modified version of the deal that Theresa May had first negotiated. MP’s supported giving it a second reading, but it was ultimately pulled after the government’s timetable for getting it through Parliament inside just a few days to avoid another extension was rejected by MP’s. This made a further extension to the process inevitable.

  • Finally, the EU granted a three month extension with the option of leaving sooner should the Commons ratify a deal before January 31st. On the day they did this – October 29th – MP’s voted in favour of supporting a snap general election to be held on December 12th. This will, of course, take place inside the new extension window.

The trend of increased political disorder in conjunction with extensions to Article 50 is irrefutable. What is not yet clear is the scale of upheaval that may be about to occur over the next eight weeks.

We know that on the same day the election takes place on the 12th, the European Council will begin their final two day conference of the year. During the immediate aftermath of the election on the 13th, the council will be discussing Brexit and ‘preparations for the negotiations on future EU-UK relations after the withdrawal.’ There remains an air of finality in regards to the EU’s position on Brexit, insomuch that they expect the UK to shortly leave the union. The tone of central bankers within the EU is similar. Governor of the Bank of France, François Villeroy de Galhau, is now openly speaking about ‘beyond Brexit‘ and towards a ‘new European financial architecture‘ (which includes the vision of central bank digital currencies).

The Bank for International Settlements are also in conference on the 12th for the fourth workshop on ‘Research on global financial stability: the use of BIS international banking and financial statistics.’ The conference is in collaboration with the Committee on the Global Financial System (CGFS), who’s members include central bank deputy governors and other senior officials. According to the BIS, the CGFS ‘monitors developments in global financial markets for central bank Governors.’ Whilst the timing of this meeting may be a coincidence, I mention it because when the original EU referendum took place in 2016 the BIS were gathering in Basel for their annual meeting. They were also in session on the same day the U.S. election was held several months later.

As for how the election might pan out, I believe there are two leading scenarios, both of which could pave the way towards an eventual disorderly exit from the EU.

The first is a Conservative majority which gives Boris Johnson the numbers to ratify the withdrawal agreement prior to January 31st, meaning no further extension to Article 50. Instead, the Brexit process would advance to the transition period that is set to run until the end of December 2020. Between now and then the UK and the EU would attempt to negotiate a trade deal as part of the ‘future relationship‘. The transition could be extended beyond the end of 2020, but only if both sides agree to do so by July 1st. Unlike with Article 50, Parliament would not have the authority to intervene to force the government into extending the transition. Therefore a Tory majority would potentially set up a no deal scenario a year from now.

If by the time we arrived at December 31st 2020 there was no agreed extension and no trade agreement in place, the transition period would end and the UK would be completely out of the EU and all its institutions on ‘no deal‘ terms (no deal in the sense of no trade deal). December 31st is significant for another reason, as it marks the end of the EU’s seven year budget cycle that began in 2014. So far a further seven year budget has not been agreed.

A potentially ominous sign that the transition period could be used to manipulate a no deal eventuality is how Boris Johnson recently declared that the possibility of no trade deal with the EU ‘simply will not happen.’ This is the man who pledged ‘do or die‘ to the UK leaving the EU on October 31st. The EU themselves have raised misgivings about the limited time available in signing off on a trade deal before 2021. The preparatory narrative for a no deal event in twelve months has gradually been developed.

Should globalists want the UK to leave the EU as I suspect, prolonging the process through a transition period would bring it directly into line with the 2020 U.S. election, where Donald Trump may secure a second term just as Brexit is about to happen. Both Brexit and Trump have been couched within the terms of right wing ‘populism‘ and ‘resurgent nationalism‘ ever since 2016. In their communications central bankers continue to single out the rise in ‘protectionism‘ as one of the main risks to global financial stability. And rather tellingly, they are talking up the prospect of introducing central bank issued digital currency as a future necessity in order to combat a global downturn and fulfil their goals for an economic ‘new world order.’

The second scenario for the election is a hung parliament with the Conservatives as the largest party. Brexit Party leader Nigel Farage has quietly been campaigning in Labour constituencies that voted to leave the EU over three years ago. Every opinion poll throughout the campaign has indicated that the party will win no seats in the election. But polls have proved a notoriously unreliable indicator since the EU referendum. Farage’s own prediction is for a low turnout, a small Tory majority and a ‘Brexit Party voice to try and keep Boris honest.’

Assuming Farage is wrong about the Tory majority, we would then have a scenario where Boris Johnson would again fall short of gaining sufficient support in parliament for ratifying the government’s withdrawal agreement. Of interest to me will be the parliamentary dynamic after the election. When Article 50 was extended back in September, the bill requiring the Prime Minister to seek delay had a majority of 28 MP’s. But if the Brexit Party did manage to defeat Labour candidates in the north, the dynamic could quickly shift the other way.

Right now the House of Commons is regarded as a ‘remain parliament‘. If Johnson does not secure a majority, the overriding expectation is for Article 50 to be extended again prior to January 31st. This is possible but not assured. I would expect a minority Conservative government to try and fail to push their deal through parliament following the election. A Brexit Party presence in Westminster could in the end prevent the deal from passing. Whilst on first glance this would set the Tories and the Brexit Party into conflict, where they would likely be united is in preventing any further extension to Article 50.

If the group of remain MP’s that return to parliament no longer had the numbers over leave MP’s, then a no deal outcome would become a genuine possibility next month.

In the end it comes down to whether the UK’s exit from the EU is a short or longer term objective for globalists. Whichever might prove the case, I would fully expect the process to persist under a Conservative government and by extension a right wing identity. As I have spoken about before, the moment Britain leaves the EU will be seen as a political decision, led by the supposed ‘populist‘ Boris Johnson. That decision could be taken either through rejection of extending Article 50 or through no trade agreement by the end of a transition period.

Whatever the outcome, the UK economy remains feeble and has on several occasions since the EU referendum been skirting with recession. I have no doubt that a volatile exit from the EU would be used to identify the next major economic downturn as the ‘Brexit Recession‘, and serve to protect the central banking community from any culpability.


Tyler Durden

Mon, 12/09/2019 – 02:00

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The Next Pearl Harbour? China’s Gold-Backed Crypto Currency Will Blindside US Dollar

The Next Pearl Harbour? China’s Gold-Backed Crypto Currency Will Blindside US Dollar

“A date which will live in infamy.” 

Indeed, this weekend marks the 78th anniversary of the attack on Pearl Harbor in Hawaii, which opened the door for the United States to enter World War II. Turn on your TV and you will see military mavens rambling on, pontificating about ‘the defense of the realm’, all the while completely aloof and unaware of the American empire’s real Achilles heel.

Recent, financial pundit and TV host Max Keiser outlined such a scenario, and warned that the US will be blind-sided the day that China introduces its gold-backed crypto currency – an absolute game changer which would create a “catastrophic trapdoor opening underneath the US economy,” said Keiser.

Not surprisingly, very few mainstream financial pundits in the West are willing to admit that China possesses gold reserves in excess of 20,000 tons, and by introducing a gold-backed cryptocurrency, it has the ability to “kill the US dollar deader than a door nail …. a new Pearl Harbor-type event and it’s coming in the next six to nine months.”

Watch:

Source: 21stCenturyWire.com


Tyler Durden

Mon, 12/09/2019 – 01:00

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