Obama DHS Chief Says 2020 Democrats Have “Unworkable” And “Unwise” Immigration Positions

Democratic presidential candidates have “unworkable” and “unwise” immigration policies, according to Obama administration Homeland Security chief Jeh Johnson.

“That is tantamount to declaring publicly that we have open borders,” Johnson told the Washington Post on Tuesday, referring to a push to decriminalize illegal immigration. “That is unworkable, unwise and does not have the support of a majority of American people or the Congress, and if we had such a policy, instead of 100,000 apprehensions a month, it will be multiples of that.”

Johnson’s comments follow sharp criticism of the 2020 Democratic contenders, who all raised their hands during the second night of debates when asked if illegal immigrants should receive taxpayer-funded health insurance (let’s not forget that Obamacare penalized American citizens who weren’t covered). 

On Tuesday, Sen. Cory Booker (D-N.J.) said he would “virtually eliminate immigration detention” by executive order. During last week’s debate, presidential candidate Julián Castro proposed decriminalizing illegal border crossings — a position other Democrats in the race rapidly adopted. –Washington Post

Meanwhile, Johnson on Friday pointed out that the “cages” housing detained migrants weren’t built by President Trump, noting “Chain link barriers, partitions, fences, cages, whatever you want to call them, were not invented on January 20, 2017, OK?” 

Jeh Johnson touring detention facility during Obama administration

“But during that 72 hour period, when you have something that is a multiple, like four times of what you’re accustomed to in the existing infrastructure, you’ve got to find places quickly to put kids. You cant just dump 7-year-old kids on the streets of McAllen or El Paso. And so these facilities were erected …they put those chain link partitions up so you could segregate young women from young men, kids from adults, until they were either released or transferred to HHS.” (via Daily Caller). 

 

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Blain: When The Crunch Comes, Markets Will Freeze And Every Corporate Bond On The Planet Will Be “Locked”

Blain’s Morning Porridge, submitted by Bill Blain of Shard Capital

“I know of no country in which there is so little independence of mind and real freedom of discussion as in America.”

Happy birthday America! This morning’s intro-quote is over 170 years old – and I could only use it on a day when all good Americans will be on holiday. Extra points to anyone who can name the author sans Google.

Interesting markets y’day. European bonds were off to the races, perceiving new ECB head Christine Legarde as QE lower-for-longer dove who will continue to ease, ease and ease like Draghi. Bunds at -0.40%! Even Italian 2-year notes dipped below zero percent as the EU dropped threats to take action against the deficit. Some day we shall shake our heads in disbelief at that price…

In the States, the Dow hit a new high, and Trump tweeted it as a personal triumph. He is not so stupid as to mistake the stock market as a proxy for economic health – but he is making idiots of the American people by telling them it is. To keep up the illusion, he’s nominated new names to the Fed likely to toe his dovish line. Much comment on the private networks y’day about Trump’s latest nominations to the board – Judy Shelton being a particularly intriguing choice as Fed critic and gold standard advocate. For the Fed to lose credibility doesn’t just need Powell to surrender – packing the board will be just as effective.

The bottom line is financial assets remain absolutely distorted by QE asset inflation. While its been great news for the market, the real economy remains deflated. That’s what Jerome Powell and Christine Lagarde should be thinking about as they play with the monetary policy toolbox.

Meanwhile, back in the real world, the chance of achieving real returns are getting more and more difficult. I had the same conversation with 3 different fund managers yesterday. They all went along the lines of:

Bill: “Hi! What’s up, what you looking at..?”

Fund Manger: “Well I’ve got to buy assets, but yields are too low, spreads are too tight and market so thin. Any ideas?”

B: “Excellent, we need to talk about some of my alternative investments- what about something you can fully due diligence with a proper risk/return profile 8% return and secured on solid performing aircraft assets used by decent credit airlines? Or, how about a 10% convertible based on monetising proven technology with a definite Green angle?”

FM: “Sound great, but are you reading the headlines? We can’t even think about buying illiquid assets these days…”

For the bulk of public funds, pension and insurance managers – the real money market – the doors on risk assets have been slammed shut. The well-publicised Illiquid asset problems at GAM, Woodford and  H2O has triggered all kinds of market over-reaction. All around the market Funds that have been carefully investing “patient capital” in smart alternative real assets are being told by their management to hold back from further investments, and pile into liquidity instead. Why? Because a couple of funds got it wrong? Because senior management fear regulatory backlash and client fury if they are caught making similar mistakes.

It doesn’t help that there is so much corporate dross around. Here in the UK the papers are full of stories of Funding Circle’s mounting financial woes, and comparing it to Lendy (which went bust after it’s naïve lending strategy imploded.) While the FT reports one successful student accommodation provider buying another from a major Canadian investor, it also carries the sad tale of another that funded itself from retail promising a 10% return on properties – the receivers are now chasing the individual investors for ground rents and service charges on empty student rooms. Don’t get me started about “mini-bonds” and London Capital and Finance – they give the bond market a bad name.

It’s a two-way street. There are bad investments and there are bad investors. If you are invested in risky buy higher yielding instruments – be very aware of the risks, which includes being locked in if the market turns. Don’t try to pretend otherwise. Also be aware that when markets lock – as they did for financials during the crisis – nearly every bond asset ended up performing as expect and repaid. Sure a few struggled, but generally investors that had invested well and diligently got their money and interest back when markets reopened.  

Unfortunately, it’s equally clear regulators are terribly excited about an opportunity to throw themselves into the market and chuck some more rules into the equation.  Their plan will no doubt be even stricter investment parameters dictating how liquid portfolios should be – without considering the consequences. Basically, regulators will regulate to protect investors from their decisions to invest.. You can’t regulate against stupidity – which is basically the root cause of 90% of fund collapses!  

I can’t comment on the reasons funds found themselves in trouble by investing in deeply illiquid assets. Perhaps it’s the attraction of an above market coupon, or the promise of stellar returns, or not seeing past an apparent guarantee. But every case of an investor buying an asset and then discovering it is not what they thought they were buying is an example of failed due diligence and bad decisions. It happens. I’ve seen some very clever investors buy some incredibly stupid things and walk away smarter people.  

All of which means investors are wracking their brains to work out how to generate any returns. If they buy liquidity – then they get effectively zero returns, and will be utterly reliant on Global Central  Banks continuing to ease rates to boost bond and stock prices… further hiking financial asset inflation. If you were smart enough to have bought Treasuries or European bonds back in January, you would now be sitting on huge gains as yield tightened.

But the brutal reality is no one is going to get their pension paid if European bonds carry negative yields and Treasuries just a smidge more. If you buy Treasuries, then you pretty much know they will remain a liquid investment in all circumstances. But, are regulators now going to classify corporate bonds and anything outside the FTSE or DOW as illiquid? Because that is what will happen when a market crunch comes. Markets will freeze, and just about every corporate bond on the planet will likely be “locked”.

Which will be the moment for smart money to post ridiculously low bids and start scooping bargains, secure in the knowledge the market is never as bad as it looks. It happened in 2007/9 and it will happen again.

Even better are the opportunities currently available in the alternatives space – since so many funds are now running scared on liquidity, it’s an opportunity for smart money to step in and buy. Although we advise clients alternatives will be highly illiquid, we are also talking to many accounts and generating secondary interest in even the most complex asset classes – which means there are buyers out there waiting to buy at the right price.

Now… what shall I do for the rest of this Independence Day? Who is up for lunch?

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Strongest Earthquake In Decades Rocks Southern California On July 4th

Just as Californians were out celebrating July 4th with parades and were firing up grills for barbecues, the largest earthquake in three decades rocked the southern part of the state, registered at 6.4 magnitude. 

Downtown Los Angeles

The quake lasted for about 30 seconds centered in the San Bernadino’s area’s Searles Valley, but also could be felt on Los Angeles, about 100 miles away. According to the LA Times: 

The 10:33 a.m. quake was centered in the Searles Valley, a remote area of San Bernardino County about 100 miles from Los Angeles.

The quake was the largest in Southern California since the 1994 6.6 Northridge quake, which killed dozens and caused billions of dollars in damage. But the Northridge quake hit in the center of a populated area, while Thursday’s quake was located far from the metropolitan Los Angeles area.

Local reports from the L.A. area suggest it was “slow and steady” and reports of major home damage have emerged within the direct vicinity of the earthquake’s center. 

The July 4th earthquake center, via the LA Times.

The aftershocks which reached the LA metropolitan area were felt by people for an extended time but were not reported as violent or causing severe damage to homes.

However, the emergency lines were flooded. “We are very much aware of the significant earthquake that just occurred in Southern California. Please DO NOT call 9-1-1 unless there are injuries or other dangerous conditions. Don’t call for questions please,” the LAPD said in a statement.

Local reports say over 30 aftershocks were felt across southern California in the aftermath. 

According to CBS Los Angeles

The earthquake was followed by multiple aftershocks in the Ridgecrest and Searles Valley areas, measuring anywhere from magnitude 2.9 to 4.2.

The quake was felt all across the Southland, as far south as Orange County, according to USGS.

According to earthquake expert Dr. Lucy Jones, CalTech received a 48 second warning that the quake was coming, she said at a news conference in Pasadena.

Live Feed:

developing…

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Meet the New President of the Foundation for Economic Education, America’s Oldest Free-Market Think Tank

In the beginning, there was the Foundation for Economic Education.

Founded in 1946 by Leonard Read, FEE is the oldest free-market think tank in the United States and one of the most storied. Its long-running publication The Freeman introduced generations of high-school and college students to the ideas of capitalism, classical liberalism, and libertarianism. FEE published the massively popular essay “I, Pencil,” which explained how capitalism coordinated all the disparate activities necessary to bring complex goods to market, and gave voice and support to economists such as Ludwig von Mises, Friedrich Hayek, and Milton Friedman at crucial points in their careers.

On today’s Reason podcast, Nick Gillespie talks with Zilvinas Silenas, who recently became the 11th president of FEE. A native of Lithuania, he formerly served as the head of the Lithuanian Free Market Institute, whose successes included creating an economics textbook currently being used by 80 percent of Lithuanian high schoolers. Silenas talks about his childhood growing up during the tail end of the Cold War, his plans for FEE, and what he sees as the primary challenges for libertarians in the 21st century.

Audio production by Ian Keyser.

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Meet the New President of the Foundation for Economic Education, America’s Oldest Free-Market Think Tank

In the beginning, there was the Foundation for Economic Education.

Founded in 1946 by Leonard Read, FEE is the oldest free-market think tank in the United States and one of the most storied. Its long-running publication The Freeman introduced generations of high-school and college students to the ideas of capitalism, classical liberalism, and libertarianism. FEE published the massively popular essay “I, Pencil,” which explained how capitalism coordinated all the disparate activities necessary to bring complex goods to market, and gave voice and support to economists such as Ludwig von Mises, Friedrich Hayek, and Milton Friedman at crucial points in their careers.

On today’s Reason podcast, Nick Gillespie talks with Zilvinas Silenas, who recently became the 11th president of FEE. A native of Lithuania, he formerly served as the head of the Lithuanian Free Market Institute, whose successes included creating an economics textbook currently being used by 80 percent of Lithuanian high schoolers. Silenas talks about his childhood growing up during the tail end of the Cold War, his plans for FEE, and what he sees as the primary challenges for libertarians in the 21st century.

Audio production by Ian Keyser.

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Clothing Line Releases Betsy Ross Flag-Themed Sneakers As Nike Recall Theirs

As the backlash to Nike’s decision to abandon its limited-edition Betsy Ross flag-themed sneakers grows, another company has released a set of sneakers featuring the Betsy Ross flag-themed design, the Daily Caller reports.

The company ‘Out of Line’ apparently scrambled to release its “Boss Like Ross” sneakers on Tuesday following reports that Nike had recalled a shoe with a similar design after brand ambassador Colin Kaepernick, famous for taking a knee during the National Anthem, reportedly told Nike that the Betsy Ross flag was offensive because it was a relic from the ‘slavery’ era of the US’s history, and because it has become associated with ‘White Nationalist’ groups (remember: so have polo shirts, allegedly).

Nike’s decision immediately elicited a backlash, and even prompted the governor of Arizona to pull the state’s financial support for the company.

Ross

The company’s founder, Carly Reed, said her shoe is intended to spark a conversation about Ross’s contribution to American history.

“She [Betsy] did it and that’s my point to Nike,” she told the Daily Caller. “Their [motto] is just do it, but Betsy did it. She did it all on her own. In a time where it wasn’t easy, as well.”

The company that released the shoes said they weren’t intended as a ‘political statement’, but as a way to change peoples’ perspective on Ross.

“These shoes aren’t about knocking Nike or Kaepernick,” Reed told the DCNF. “It was a great idea by Nike, and I respect anyone who stands up for what they believe in. I believe in women. Women that are getting ‘Out of Line’ and paving their own path, just like Betsy Ross.”

 

“…They were made to change people’s perspective,” Reed continued. “A perspective that is built around hate and is now erasing a key figure in American history. You can be patriotic and support equality. That is the foundation of America.”

Reed started Out of Line two years ago when she was a 22-years-old who had recently graduated as a student-athlete from the University of North Carolina. Again, she insisted that the shoes are not “about” Kaepernick.”

She hopes that the “Boss Like Ross” sneakers will put the focus back on Betsy Ross and show people that this flag can be viewed in a positive way.

“Colin Kaepernick’s name is everywhere,” Reed told the Daily Caller. “As much as I respect him and everything, this isn’t really about him. You can take something and see it however you want, and I’m choosing to see this flag in a positive way.”

Anybody who wants a pair can order them here.

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Paul Craig Roberts: Some Unhappy Thoughts For The Fourth Of July

Authored by Paul Craig Roberts,

The human race, being a collection of stupids, continues to make decisions that imperil itself.

For example, a simple mistake in a warning system about incoming ICBMs can end all life on earth.  The supersmart idiots who invented nuclear weapons did not think about the possible unintended consequences of their handiwork.  They wanted to defeat the Nazis, and that was the limit of their imagination.

If you don’t like that example, consider this one.  The digital revolution has made us dependent on communications and control systems, such as those that operate power systems, that can be fried by superflares, which the sun on which we depend has every 2 or 3 thousand years, and shut down by hackers. 

As I understand it, the same thing can happen from a nuclear blast in the atmosphere.  When power systems go down, nuclear reactors can overheat and produce Fukushima meltdowns.  Try to image the consequences of a large number of such meltdowns.  Yet, we have adopted a technology that subjects us to these kind of risks as well as to an Orwellian police state existence.

Why?  Because the human race is mindless.  Unlike highly intelligent non-human animals who are capable of rational decisions, humans can’t see beyond the end of their noses. The smell of money is what they respond to.

And there are health risks of technology, such as those associated with the rollout of 5G.

Nevertheless, 5G is rolling out as it serves material interests, that is, corporate profits.  The external costs of these profits, if the many dissenting scientists and medical professionals are correct, will greatly exceed in medical bills, infertility, anguish, shortened life spans, and so forth, the totality of profits from 5G.  

But don’t think your government, or the 5G corporations care.

Americans take their soma in the form of brainwashing and have become brainwashed sheep.  As far as I can tell, they will remain brainwashed sheep until they are beat into non-existence. Are brainwashed people capable of rebellion?

No one today, the 4th of July, will call for an uprising against our easily identified oppressors.  The reason is that everyone allowed to speak publicly is in the pay of our oppressors.

Americans are so firmly locked into The Matrix that it is doubtful that they can be rescued.

When the world faces “the Great American Democracy,” the world faces a brainwashed public in the grip of material interests who are backed up by nuclear weapons, controls over the use of which have been consistently removed since the Clinton regime.

On the Fourth of July brainwashed Americans will wave the flag and chant: USA, USA, USA.

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Turkey Says S-400s To Arrive Next Week; Erdogan Slams F-35 Cutoff As US “Theft”

A top Turkish official has confirmed that Russian delivery of its deadly S-400 air defense systems, anticipation of which over the past year has caused an unprecedented breach in US-Turkey relations, is expected imminently. 

The president of Turkish Defense Industries, Ismail Demir, confirmed that a huge development is expected next week: “I will not tell the exact date now, but you will see in the second week of July,” Demir was quoted as saying by private Turkish broadcaster NTV.

Addressing fears that it could radically alter the military balance in the Mediterranean, and amid accusations that the deal solidifies Russian influence over the Levant, the Turkish defense industries chief added, “However, we can use any weapon in our hand anywhere in Turkey whenever necessary.”

Amid threats of US sanctions on its NATO ally, and following Turkish counter threats of sanction on Washington which most western pundits have brushed off as unrealistic and laughable, President Recep Tayyip Erdogan repeatedly insisted over the past months that it is “a done deal,” pledging Ankara is moving forward “no matter what the consequences will be” — and despite the disruption of Turkey’s Lockheed purchased F-35 stealth fighter jets. 

This month is where it all appears to be coming to a head: the S-400s will be delivered, and the Pentagon last month established July 31 as the cutoff date for ejecting Turkey from the F-35 program

Of the F-35 issue, directly linked to the S-400s due to US fears its advanced stealth fighter’s capabilities could be compromised in the presence of Russian S-400 technicians who will be involved in training and initial operation, Erdogan slammed US policy as sheer “theft” based on violating terms of the contract. 

“If you are looking for a customer, if you have one, and if this customer had made its payments with no delay, how can you refuse to hand over the customer their goods? This means theft,” Hürriyet quoted Erdogan as saying upon return to Turkey from an official visit to China. 

Meanwhile, Turkish media reports have identified Akıncı Air Base, also known as Mürted, as the expected deployment site of the first S-400s.

Via Turkish media reports: “S-400 units, command and control vehicles, and radars will deploy at the airbase and will operate separately from NATO radar network.”

The symbolism of this location is significant to Erdogan, given that uring the July 2016 failed coup d’état attempt the air base was used by pro-coup soldiers, resulting in Akıncı being bombed by loyalist planes. 

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Mad Magazine Is Dead

The comics community is abuzz with the news that Mad magazine will, after two more issues, cease publication of original material and abandon newsstand distribution, becoming a reprint title available only in comic book shops (with the exception, Hollywood Reporter reports, of one special issue a year of new content).

Mad began life as a comic book in 1952, the brainchild of then-obscure New York cartoonist Harvey Kurtzman, published by William Gaines’ E.C. Comics. Through his work in Mad‘s formative years and at later humor magazines he launched—Trump (published by Kurtzman superfan Hugh Hefner, and not related to Donald), Humbug, and Help!—Kurtzman became a culture god to a generation of baby boomers who eagerly lapped up a brilliant, acrid, prickly adult with a fresh, warbly-wicked cartooning style to solidify and reify their inchoate sense that aspects of adult American culture were more absurd, more ersatz, sometimes even reprehensible, than their parents, schools, churches, or leaders wanted them to know.

Mad‘s influence on baby boomer humor and general sense of life is one of those cultural truisms that now sounds like a dull cliche that some Mad-level parodist should josh. But Richard Corliss of Time was not wrong when he wrote that Kurtzman “virtually invented what would become the era’s dominant tone of irreverant self-reference,” nor was The New Yorker‘s Adam Gopnik when he wrote that “Almost all American satire today follows a formula that Harvey Kurtzman thought up.” (Both quotes from Bill Schelly’s indispensable 2015 Kurtzman biography, Harvey Kurtzman: The Man Who Invented Mad and Revolutionized Humor in America.)

In a Reason feature in May, I wrote about how everything anyone loves about the modern explosion of adult, intelligent arty, self-expressive comics has direct lineage from the work in the 1960s–’80s of Robert Crumb and his cohorts in the first wave of American underground comix. Since the article was not a detailed history of influence in comics history, it did not step back to discuss the ur-influence that lay behind Crumb and other underground comix artists around him, which was Mad magazine.

Art Spiegelman was blown away by Crumb, and through his Pulitizer Prize-winning Maus and his tireless cheerleading for comics in mainstream publishing, museums, and culture is a linchpin of modern art comics. He spoke for himself, Crumb, and nearly all the first-wave underground comix maniacs when he said that “Seeing Harvey Kurtzman’s work when I was a kid was what made me want to be a cartoonist in the first place. Harvey Kurtzman has been the single most significant influence on a couple of generations of comics artists.” (And not just comics artists on paper—Monty Python‘s Terry Gilliam’s formative job as a young man was as Kurtzman’s assistant on Help! in the early 1960s.)

As Bill Griffith, underground comix creator of Zippy the Pinhead and partner with Spiegelman in editing the mid-’70s underground comix magazine Arcade, put it, “Mad was a life raft in a place like Levittown, where all around you were the things that Mad was skewering and making fun of…Mad wasn’t just a magazine to me. It was more like a way to escape. Like a sign, ‘This Way Out.; That had a tremendous effect on me.”

For those of us who grew up in the world Mad made, it’s bracing and peculiar to read Crumb and his epigones discuss the explosion of consciousness it caused in them to see the structures, mores, entertainment, and business of the adult world burlesqued, warped, questioned, and mocked. That wasn’t normal then. Thanks to Mad, it is.

Everyone doing interesting work in comics, even if they never had a childhood dalliance with Mad, should aim a joyous and respectful Don Martin-esque PHLBTTTT!! in the direction of Kurtzman and all the usual gang of idiots who occupied the pages of the magazine he created for the past 67 years.

To its very first wave of fans, the golden age of Mad was short. When the comics code and the wave of anti-comics fervor of the mid-1950s drove E.C. out of the comics business per se, it shifted its bestseller Mad with its 24th issue to the magazine format it retained ever since. (E.C. ran ads puckishly playing on regnant McCarthyism and suggesting that the people most likely to want to censor comics were likely Communists.)

Gaines sold E.C. in 1961 and a few sales and mergers later it became part of the Warner Bros. empire, more recently officially part of Warner’s D.C. Comics. Kurtzman, aware the magazine’s comedy DNA was his own, had in 1956 asked publisher Gaines to cede 51 percent ownership of the magazine to him. Gaines refused, and Kurtzman walked. It remains one of comic fandom’s cautionary tales of business exploiting art that Gaines pushed out the genius who created Mad and continued to profit from the reputation and style Kurtzman created.

Still, even generations who missed Kurtzman’s era in real time continued to have their minds blown and sensibilities tickled by iconic artists and writers such as Al Jaffee, Wally Wood, Dave Berg, Don Martin, Mort Drucker, Sergio Aragones, and Jack Davis who kept the magazine going under successor editor Al Feldstein, who guided it through the late Boomer and early Gen X eras until 1984. Until 2001, Mad carried no paid advertising in an implied promise to its readers that no other considerations came between them and telling the sordid and/or ridiculous truth about the world they were growing up in.

If you were ever a fan, your golden age was usually the first year or so you read it, likely between the ages of 10–13. Mad was diligent about regurgitating its legacy in reprint special issues and paperback books, so if you wanted to check out its past you could. I’ve been re-reading a lot of old Mad myself lately, and while one cannot say that it “holds up” to an aging mind in 2019—it’s more a magazine to absorb and leave behind in adolescene than a lifelong companion—it still manages to provide both interesting insights into old culture and the occasional laugh.

The focus in late ’50s issues on such parody subjects as barbeques, weights and measures, box cameras, and fake backdrops to add versimilitude to adult fibs shows a magazine that wanted to elevate the cultural and behavioral sightlines of youngsters who might be reading it. Mad was the youth league version of the same boomer humor that adults were seeing in nightclubs with Mort Sahl and Lenny Bruce and on TV with Ernie Kovacs and set the stage for National Lampoon, Saturday Night Live, and everything that follows them.

However Mad old or new reads to me now, I can’t forget how, when I finally saw Stanley Kubrick’s masterpiece Barry Lyndon on the big screen a couple of years back, I was seeing every frame through the jokes, references, and look of the Mort Drucker–drawn parody in the first issue of Mad I convinced mom to toss in the cart at the supermarket, where it appeared as—what else?—Borey Lyndon. Mad‘s goofy jokes have been many generation’s deeply embedded truths about culture, politics, and business, and that has been a wonderful thing.

The magazine relaunched last year with a new issue number one and the offices relocated from New York to Burbank with a whole new staff, but the new version apparently didn’t catch enough fire with paying readers to keep going.

Freighting it with nothing but socio-political-historical weight, doesn’t capture all of Mad‘s magic, which could be as much about goofy silliness. Among the ones that have stuck for life in my mind include the cop in Issue 11’s “Dragged Net” announcing a “Stake out!” with a hideous close up of his open mouth with a clichéd cartoon steak laying complete in his maw, and the comic strip musical to the tune of “It Ain’t Necessarily So” which goes in part: “Flash Gordon, he flies to the stars! Flash Gordon, he flies to the stars! But I know he’s lyin’, cause folks who’ve been tryin’, can’t even reach Venus or Mars!”

You encounter stuff like this at the right age and it sticks; for another example my image of the hippie era as I learned about it in history will forever be shaped by Dave “Lighter Side of” Berg’s evocations of their goofy rangy deluded self-righteous insouciance, right or wrong. Mad‘s antic “don’t take this seriously” style works for youngsters who think they are clever, and youngsters just ready to have expectations upset or notions upended with the magic of unpretentious silliness. It made the world a jollier, more winsome place; we’ve always needed as much of that sort of popular art as we can get, especially when done as it usually was with Mad with skill, verve, and a basic respect for a reader’s intelligence.

Mad continued to deal with real presidents and real issues, and it had been hitting Donald Trump regularly and hard in its newest iteration. Trump insulted Democratic presidential candidate Pete Buttigieg by tweeting that America wasn’t ready to elect Alfred E. Newman (Mad‘s goofy mascot who came to appear on every cover) president; Buttigieg purported in his youthful way to not have any idea who Trump was talking about, marking Mad as hopelessly irrelevant.

If one were in the mood to argue with comic book satire you could insist it wasn’t fair, didn’t deal with issues in a well-rounded way, was anti-Middle America, embued with that smarty-pants mentality of the New Yorker who invented it. Editor Feldstein was proud to believe much of the mentality of the draft-card and bra-burning ’60s radical generation was shaped by his magazine.

But Mad‘s meta-point—that entertainment, marketing, business, politics, middle-class mores, often failed to live up to their own standards or pretentions—was eternal. Even if new issues with new content are no longer being published regularly, the Mad mentality has sunk its roots everywhere in our culture and can never be extirpated, thank Newman. It’s as true a case as any of “Mad is dead, long live Mad.”

Like most old fans, I stopped picking up new issues a long time ago. But I’ll miss it for the world it represented, when a well-conceived periodical package of words and cartooning on paper could not only be supported by an enthusiastic audience but shape the culture in a funnier, zestier, freer direction.

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Rabobank: “Houston, We Have A Problem – Here Come The Fireworks”

Submitted by Michael Every of RaboBank

It’s 4 July – and, yes, there are fireworks.

Firstly, US equity markets are at a new record high. Up, up, and up they go into the firmament. At the same time, US bond yields go down, down, and down. In fact, the entire US curve is now inverted, standing below the level of Fed Funds. As such, the Fed MUST act this month, surely. In which case, hooray, stocks can keep going up, up, and up! Indeed, “We’ll get to 30,000 on the Dow if we pass USMCA, we cut interest rates and we move forward with the Trump-growth agenda,” said Trump economic advisor and China hawk Navarro in an interview with Bloomberg Television.

But Houston, we have a problem. Not only is there no point in spending good money on “Dow 27,000!”, “Dow 28,000!”, and “Dow 29,000!” baseball caps if so, missing out on lots of potential production, but WHY are the Fed cutting rates? Does that reason presage something good for corporate earnings vs. multiple extensions and cheaper buybacks? How many times in recent decades have we seen the bond market and the stock market sending these duelling signals? And how many times have stocks been right relative to bonds, with a lag?

But we had more coloured gunpowder to gaze up at in awe. US President Trump warmed up for the big party today by tweeting: “China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA. We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games – as they have for many years!”

That’s as open an attempt to jaw-bone the USD lower as one will ever see – and perhaps a threat to do more than jawbone. Yet Houston, we have a dollar problem. The Fed is about to cut rates, showing they don’t know what they are doing. The US fiscal deficit is enormous and growing. The US is insulting trade partners around the world, apparently threatening a boycott of US Treasuries. The president is both publicly belittling the Fed more than I do, openly introducing doves to its board, and speaks of open currency manipulation. There is open chatter of de-dollarization even the mainstream financial media.

AND YET THE DOLLAR IS NOT SLUMPING

Yes, it is off its recent highs vs. AUD, CNH, etc.; yes, some EM have seen some recovery too; and, yes, JPY continues to grind higher. But when you look at the staggering blows the USD is taking, and see that it only takes a half-step back, stop and think what the potential surprise upside movement is should the next phase of the global fireworks kick in.

For example, now that Iran has officially announced that from Sunday it will begin enriching uranium to any level it sees fit above the agreed limits set in the 2015 nuclear deal: in response Trump has replied: “Be careful with the threats, Iran. They can come back to bite you like nobody has been bitten before.” The only way to interpret that as ‘risk on’: is to (1) believe Trump is bluffing again; (2) believe the Iranians are bluffing; or (3) believe that central banks will just cut rates more anyway so regardless of what happens it’s all good.

Actually, rumours are flying round that there are more biting US sanctions in the work targeting the Iranian Supreme Leader’s own businesses. If so, we continue to raise the stakes in this dangerous poker game without either side calling. However, while that game is being played, global observers won’t want to be leaving too many USD on the table…which is one of the reasons the greenback just won’t go down.

Of course, it’s more than Houston who has a problem. Europe is seeing the equivalent of a box of cheap indoor fireworks unleashed to celebrate the arrival of a new ECB president. Markets are so enthusiastic about the growth outlook under Lagarde that they are happy to lose 78bp to lend money to Germany for 2 years and nearly 40bp to lend to it for 10 years. Then again, they will also now lend to Italy–who does not control its own currency and is run by increasingly-popular populists–for 10 years at 1.58%, nearly 40bp lower than they will lend to the US. You don’t like that deal? How about lending to Austria for 100 years at around 1%? The same Austria who 100 years ago was just emerging from the wreckage of the Austro-Hungarian Empire and WW1, underlining how much can happen in a century. And against that backdrop European stocks still aren’t at record highs yet. Is that an opportunity or a threat?

Meanwhile in China overnight SHIBOR is now down to 0.88%, lower than during what was a kind-of-but-officially-not Chinese recession in 2015. So no shortage of liquidity at big banks – but not so much for smaller banks or the private firms and SMEs who continue to struggle for credit. That’s as both official and Caixin PMIs sit below 50 for manufacturing, indicating the pressures being felt across the economy above and beyond the trade war.

Sorry, but when one looks at what looks like a fresh global easing cycle from already ridiculously low levels of rates, and trade wars underway, and open calls to FX wars too, and fears of hot wars in several places, one really has to rain on this particular 4 July parade.

via ZeroHedge News https://ift.tt/2xuCja6 Tyler Durden