Zuesse: How The New York Times Lies About Lies – Obama Vs Trump

Authored by Eric Zuesse via The Strategic Culture Foundation,

Although the New York Times says that President Donald Trump lies vastly more than did President Barack Obama, the definite liar in that comparison – based on the factual record, to be presented here – is the New York Times itself.

It lies in alleging this, which isn’t to say that either President lies more frequently than the other, but instead, that the Times’s calculation fails to count, at all, but instead altogether ignores, some of President Obama’s very worst lies – ones that were real whoppers. These were lies that were essential to his maintaining support among Democrats (such as the owners of this corporation, the NYT, are), and that would keep Democrats’ support only if they failed to judge him by his actual decisions and actions (such as the NYT’s owners do — or else they secretly know the truth on this, but prevent this truth from being published by their employees). Even to the present day, Obama is evaluated by Democrats on the basis of his lies instead of on the basis of his actions. He’s admired for his stated intentions and promises, which were often the opposite of what his consistent actual decisions and actions turned out to be on those very same matters, on which he had, in retrospect, quite clearly lied (though that was covered-up at the time — and still is). 

For example, among the list of lies that the NYT counts from Obama, is excluded Obama’s having asserted on 20 May 2009, at the signing into law of both the Helping Families Save Their Homes Act and the Fraud Enforcement and Recovery Act: “This bill nearly doubles the FBI’s mortgage and financial fraud program, allowing it to better target fraud in hard-hit areas. That’s why it provides the resources necessary for other law enforcement and federal agencies, from the Department of Justice to the SEC to the Secret Service, to pursue these criminals, bring them to justice, and protect hardworking Americans affected most by these crimes. It’s also why it expands DOJ’s authority to prosecute fraud that takes place in many of the private institutions not covered under current federal bank fraud criminal statutes — institutions where more than half of all subprime mortgages came from as recently as four years ago.”

Also not counted, but excluded, by the NYT, as having been an Obama lie, was his 24 January 2012 State of the Union Address assertion: “Tonight, I’m asking my Attorney General to create a special unit of federal prosecutors and leading state attorneys general to expand our investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis. (Applause.) This new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many Americans. Now, a return to the American values of fair play and shared responsibility will help protect our people and our economy.”

But both statements were lies. The Inspector General of the U.S. Department of Justice issued on 13 March 2014 its “Audit of the Department of Justice’s Efforts to Address Mortgage Fraud,” and reported that Obama’s promises to prosecute turned out to be just lies. DOJ didn’t even try; and they lied even about their efforts. The IG found: “DOJ did not uniformly ensure that mortgage fraud was prioritized at a level commensurate with its public statements. For example, the Federal Bureau of Investigation (FBI) Criminal Investigative Division ranked mortgage fraud as the lowest criminal threat in its lowest crime category. Additionally, we found mortgage fraud to be a low priority, or not [even] listed as a priority, for the FBI Field Offices we visited.” Not just that, but, “Many Assistant United States Attorneys (AUSA) informed us about underreporting and misclassification of mortgage fraud cases.” This was important because, “Capturing such information would allow DOJ to … better evaluate its performance in targeting high-profile offenders.”

Privately, Obama, early in his Administration, had told Wall Street executives that he would protect them. That statement, made in private to the leaders of Wall Street, turned out to have been honest. Though he lied often to the public, he never (so far as the available public record has shown) did so in private (except that he lied in private to Vladimir Putin, but neoconservatives such as the NYT’s owners and executives and editors don’t mind that at all — but they also don’t count it, at all). 

On 27 March 2009, Obama assembled the top executives of the bailed-out financial firms in a secret meeting at the White House, and he assured them that he would cover their backs; he promised them “My administration is the only thing between you and the pitchforks”. It was never on the White House website; it was leaked out, which is one of the reasons Obama hates leakers (such as Chelsea Manning, Edward Snowden, and Julian Assange). What the DOJ’s IG indicated was, in effect, that Obama had kept his secret promise to them.

Here is the context in which he had said that (from page 234 of Ron Suskind’s 2011 book, Confidence Men, with boldfacings by me):

“My administration is the only thing between you and the pitchforks.”

It was an attention grabber, no doubt, especially that carefully chosen last word.

But then Obama’s flat tone turned to one of support, even sympathy. “You guys have an acute public relations problem that’s turning into a political problem,” he said. “And I want to help. But you need to show that you get that this is a crisis and that everyone has to make some sacrifices.” According to one of the participants, he then said, “I’m not out there to go after you. I’m protecting you. But if I’m going to shield you from public and congressional anger, you have to give me something to work with on these issues of compensation.”

No suggestions were forthcoming from the bankers on what they might offer, and the president didn’t seem to be championing any specific proposals. He had none: neither Geithner nor Summers believed compensation controls had any merit.

After a moment, the tension in the room seemed to lift: the bankers realized he was talking about voluntary limits on compensation until the storm of public anger passed. It would be for show.

Obama said “Everyone has to make sacrifices,” but he was talking to people who simply refused to be included in that “everyone.” As the mega-crooks who had been profiting from the crimes that had brought about the global economic collapse, those “sacrifices” should have been life-imprisonments. Only by means of such accountability, would their successors not try anything of the sort that these banksters had done. But such was not to be the case. So, the crimes continued.

Obama kept his word to them. The banksters got off scot-free, and kept their personal hundreds of millions of dollars ‘earned’.

He had been lying to the public, all along. Not only would he not prosecute the banksters, but he would treat them as if all they had was “an acute public relations problem that’s turning into a political problem.” And he thought that the people who wanted them prosecuted were like the KKK who had chased Blacks with pitchforks before lynching. According to the DOJ, their Financial Fraud Enforcement Task Force (FFETF) was “established by President Barack Obama in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.” But, according to the Department’s IG, it was all a fraud: a fraud that, according to the DOJ, itself had been going on since at least November 2009.

The IG’s report continued by pointing out the Obama-appointed Attorney General’s lies, noting that on 9 October 2012, “the FFETF held a press conference to publicize the results of the initiative,” and:

“The Attorney General announced that the initiative resulted in 530 criminal defendants being charged, including 172 executives, in 285 criminal indictments or informations filed in federal courts throughout the United States during the previous 12 months. The Attorney General also announced that 110 federal civil cases were filed against over 150 defendants for losses totaling at least $37 million, and involving more than 15,000 victims. According to statements made at the press conference, these cases involved more than 73,000 homeowner victims and total losses estimated at more than $1 billion.

“Shortly after this press conference, we requested documentation that supported the statistics presented. … Over the following months, we repeatedly asked the Department about its efforts to correct the statistics. … Specifically, the number of criminal defendants charged as part of the initiative was 107, not 530 as originally reported; and the total estimated losses associated with true Distressed Homeowners cases were $95 million, 91 percent less than the $1 billion reported at the October 2012 press conference. …

“Despite being aware of the serious flaws in these statistics since at least November 2012, we found that the Department continued to cite them in mortgage fraud press releases. … According to DOJ officials, the data collected and publicly announced for an earlier FFETF mortgage fraud initiative – Operation Stolen Dreams – also may have contained similar errors.”

Basically, the IG’s report said that the Obama Administration had failed to enforce the Fraud Enforcement and Recovery Act of 2009. This bill had been passed overwhelmingly, 92-4 in the Senate, and 338-52 in the House. All of the votes against it came from Republicans. (Perhaps Obama was secretly a Republican.) The law sent $165 million to the DOJ to catch the executive fraudsters who had brought down the U.S. economy, and it set up the Financial Crisis Inquiry Commission, and had been introduced and written by the liberal Democratic Senator Patrick Leahy. President Obama signed it on 20 May 2009. At that early stage in his Presidency, he couldn’t afford to display publicly that he was far to the right of every congressional Democrat, so he signed it.

Already on 15 November 2011, Syracuse University’s TRAC Reports had headlined “Criminal Prosecutions for Financial Institution Fraud Continue to Fall,” and provided a chart showing that whereas such prosecutions had been running at a fairly steady rate until George W. Bush came into office in 2001, they immediately plunged during his Presidency and were continuing that decline under Obama, even after the biggest boom in alleged financial fraud cases since right before the Great Depression. And, then, on 24 September 2013, TRAC Reports bannered “Slump in FBI White Collar Crime Prosecutions,” and said that “prosecutions of white collar criminals recommended by the FBI are substantially down during the first ten months of Fiscal Year 2013.” This was especially so in the Wall Street area: “In the last year, the judicial District Court recording the largest projected drop in the rate of white collar crime prosecutions — 27.8 percent — was the Southern District of New York (Manhattan).” On 29 July 2015, Syracuse University’s TRAC Reports headlined “Federal White Collar Prosecutions At 20-Year Low,” and linked to their full study, which showed that, whereas in fiscal year 2004-2005, under George W. Bush, “Bank Fraud” had been the #1 most-prosecuted of all ”white collar crime matters,” it was, in the latest fiscal year, 2014-2015, only #3.

These were extremely serious crimes: they crashed the world’s economy in 2008. But there was no White House interest in pursuing them. Instead, the Obama Administration blocked any such prosecutions, or even investigations into specific cases.

So: if these sorts of lies weren’t outright frauds against the American public, then what could possibly be?

But that’s not all of what belongs in the “whopper” or “Big Lie” category from Obama: he lied constantly about Ukraine, and about Syria, and about Russia and about his intentions toward Russia, and about his proposed international-trade treaties: TPP. TTIP, and TISA. 

None of these whoppers was included in the listing that the NYT presented in their 14 December 2017 article “Trump’s Lies vs. Obama’s”.

I am nonpartisan toward persons and toward political parties, and consider all of America’s Presidents since 1981 (if not since 1968, but with the exception of Carter) to be and have been loathsome people (not even well-intentioned), but ‘news’media such as the New York Times aren’t any more trustworthy (nor more honest) than these Presidents have been, and the pontifications from such ‘news’media (in both their ’news’-reporting and opinion-pieces) are just propaganda, mixtures of truths with lies — and more and more of the public are coming to recognize this disgusting fact, so these media’s pretenses to honesty and trustworthiness are having fewer and fewer believers. But these media claim that fake ‘news’ comes only from their non-mainstream competitors (some of which are actually far more honest than they). Preserving their cartel is crucial to them. And it’s crucial to the people who benefit from this cartel.

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Fiat Currency Always Ends In Collapse

Authored by Tom Lewis via GoldTelegraph.com,

Throughout history, many commodities have been used as currency. Cows, beads, and seashells have all been used in trade. Paper currency is simply more convenient when buying a pack of gum at Walgreens, but it isn’t money. The US government has designated the dollar as currency, while at the same time arbitrarily attributing some type of value to that dollar. Your dollar could be worth X today and Y next month. The US dollar has lost 90 percent of its value since 1950. But it’s still the same dollar.

The Federal Reserve, like most global central banks, continues to print fiat currency at unprecedented speed. As these dollars flood the economy, the value declines. Fiat money has been around for hundreds of years, and many of them have vanished due to hyperinflation.

Precious metal, especially gold and silver, is the only real money. When currency loses its value (for anyone paying attention, the Venezuelan bolivar has lost 96 percent of its value in just one year), gold remains what it has always been: real money and a genuine medium of exchange. Gold always has been and always will be an asset. During the Weimar Republic, the Deutschmark had less value than toilet paper, mostly due to the manipulations of the German central bank. Gold is outside the aegis of any government, although many governments attempt to keep a supply of the precious metal in reserve.

When the fiat currency in your wallet collapses in value, gold will remain a hedge against inflation and other economic chaos. Today’s central banks have created unprecedented global debts that do not bode well for future economic health. Many countries, including the US, are at the brink of financial disaster. These governments will attempt to solve the problem by printing more fiat currency and devaluing it even more.

The value of gold may fluctuate, according to the value of fiat currency, but it cannot be devalued at the whim of the Federal Reserve. Gold is a genuine commodity with real value. It is recognized worldwide as real money. Fiat currency is a crap shoot, depending on how the winds of government blow.

The only time the price of gold changes is when the amount of fiat currency needed to buy gold changes. The value of the currency changes; the value of gold remains the same.

We have never seen a national debt as we have it today. When the Federal Reserve frantically prints more paper dollars to pay off this debt, the dollar will lose considerable value. You will have diminished buying power, because the shampoo you bought for $5.00 last week will cost you $8.50 next week.

That is why gold is the only real money. It doesn’t fluctuate, diminish, or devalue. It is a constant. And it’s the one thing you can rely on during economic disaster.

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“How Do You Not Re-Elect This Guy?” CNBC’s Jane Wells Reminds Americans: “It’s The Economy, Stupid”

CNBC commentator Jane Wells, whose son is a Marine stationed in Japan, told Fox affiliate KTTV this weekend that she could see a clear path to a 2020 re-election victory for President Donald Trump based on the economy, stupid!

As The Daily Caller’s Virginia Kruta reports, Wells explained that despite the media furor over a possible trade war on multiple fronts, the impact on the day to day economy might not be felt in the way that some were predicting.

She said:

“We do have a trade war, prices will probably go up on a few things. At the same time U.S. Steel is just firing up a defunct plant in the U.S. because the demand for domestic steel is up because of these tariffs.

She also noted that if the overall economic impact of the Trump administration was good, there would likely be a greater number of Americans who were willing to look past their dislike of the president and vote instead for self-preservation.

“I am the sort of person that says you may not like this president, he has broken the mold, but if by 2020 we have GDP growth near 4 percent, we’ve got a market like this, we’ve got record low unemployment, we got more jobs than job applicants… and maybe we have peace in Korea. How do you not re-elect this guy, even if you think he’s a buffoon?”

Another member of the panel asked, “what about the racism?” and Wells kept going. She explained:

People are gonna say, ‘I don’t like him, he’s a racist, he’s a misogynist, poor illegal immigrants, but I’m doing better than I was four years ago, America is safer than it was four years ago, the economy is doing better, there are more jobs,’ and I just don’t know how that gets defeated – because it’s the economy, stupid.

We hope this does not lead to a boycott Jane Wells ‘movement’ among the resisting many.

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Monday Humor: Jeff Bezos Explains How Customers Can Delete Alexa’s Secretly-Stored Audio

Jeff Bezos Announces Customers Can Delete All Of Alexa’s Stored Audio By Rappelling Into Amazon HQ, Navigating Laser Field, Uploading Nanovirus To Servers

SEATTLE – Responding to news of the digital assistant recording users’ conversations without their knowledge, Amazon CEO Jeff Bezos assured critics Tuesday that Alexa’s stored audio can be deleted by simply rappelling into company headquarters, maneuvering through an intricate laser field, and destroying every server with a nanovirus.

“We take privacy concerns seriously, and I want our valued customers to know they can erase all the information their Amazon Echo has gathered just by being dropped from a helicopter over one of our towers, using a diamond-tipped glass cutter to carve out a hole in a 32nd-story window, and then employing advanced cyberwarfare techniques to compromise our data centers,” said Bezos, who added that users merely need to have their demolitions expert blow through a 7-foot steel barrier and reach Amazon’s highly complex cloud storage system to access the audio captured by Alexa.

“If, by this point, you haven’t been detected by our surveillance system and attracted the attention of our CIA-trained super soldiers, you’ll only have to wait while your team’s martial arts expert silently neutralizes several armed guards and cuts out one of their eyeballs to open the doors secured by retina scanners. Then, assuming you’ve trained for months in a full-scale model of our headquarters that you built in an old warehouse to plan your exact path through this labyrinth, it’s a relatively straightforward matter of uploading the nanovirus and shooting your way out of a building that is rigged to self-destruct within 60 seconds of a data breach.

Bezos added that once customers complete this process, they will still need to erase the backup copies of their Echo data stored in the drive he wears around his neck, a task that requires finding him in Amazon’s caverns miles below Seattle and fighting him to the death.

Source: The Onion

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US Futures Plunge After Trump Calls For $200 Billion More Tariffs On China

Just minutes after the US Senate passed its ZTE-Deal-killing amended-bill, President Trump hit China with a potential double whammy as he directed the U.S. Trade Representative to identify $200 billion worth of China goods for additional 10% tariffs.

“Further action must be taken to encourage China to change its unfair practices, open its market to United States goods and accept a more balanced trade relationship with the United States,” Trump said in a statement.

US Equity markets tumbled on the headlines erasing the day’s exuberance rebound…

At the same time, China’s offshore Yuan broke below its 200DMA…

Further warning China that after these new measures are in place – on top of existing tariffs on USD 50 billion in Chinese imports –  punitive measures on another USD 200 billion of Chinese goods would go forward “if China increases its tariffs yet again.”

“These tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced.”

Anyone who now claims that this is not a ‘trade war’ is kidding themselves – this is Trump’s retaliatory trade tariffs due to China’s retaliatory trade tariffs which were due to Trump’s trade tariffs which he imposed due to China’s non-fair trade.

As an ominous reminder,  Goldman recently warned  that…

 “it is unlikely that the White House can convince trading partners that tariff threats are credible without also convincing financial markets.”

In other words, for Trump’s trade negotiations to be successful, and for US trade partners to take a flip-flopping Trump credibly, the market has to crash. 

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ZTE Crashes After Senate Passes Trump-Deal-Killing Bill

As we detailed last week, a group of senators successfully attached an amendment that would effectively kill the Trump administration’s deal with Chinese telecoms firm ZTE to a “must-pass” defense authorization bill. The amendment to kill the deal, which was first unveiled a week ago shortly after Commerce Secretary Wilbur Ross announced the administration had worked out a deal to save ZTE, would reimpose the White House’s original ban on ZTE buying components from US firms (what some have described as a “death sentence” for the company).

ZTE

Tonight, the US Senate passed the “must-pass” $707.7b defense policy bill for FY19 – that includes the provision that would reimpose penalties on ZTE – setting up a clash with the White House, which aims to ‘fix’ the provision in negotiations.

The Vote on H.R. 5515 was 85-10, and, as The Wall Street Journal reports, President Trump is now expected to turn his attention to persuading congressional negotiators to strip the ZTE sales ban out of the final version of the defense authorization bill.

The House has already passed its own version of the legislation without the sales ban, and the chamber’s top negotiator has said he aims to reconcile any differences with the Senate by the end of July.

The two chambers must pass identical legislation before Mr. Trump signs a defense measure into law – or uses his veto powers.

Mr. Trump had personally negotiated with Chinese President Xi Jinping to get ZTE back in business by overriding a decision by his own Commerce Department to block sales to the telecom company.

ZTE – which was already down hard after re-opening for trading last week – is now down another 15%, down almost 50% from pre-ban levels…

Despite Commerce Secretary Wilbur Ross’s insistence that the ZTE deal was “quite separate” from China’s trade talks (and North Korea), we suspect it is close to top of mind for China’s President Xi and therefore will rapidly get on Trump’s agenda in the negotiations.

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Minimum Wages Might Mean Fewer Benefits, So Let’s Not #Fightfor15

Authored by Art Carden via Forbes.com,

A recent working paper from the National Bureau of Economic Research by the economists Jeffrey Clemens, Lisa B. Kahn, and Jonathan Meer should make us pause and question the wisdom of higher minimum wages. The economists explore how minimum wages affect the probability of employer-provided health coverage and find that a chunk of the increased earnings for workers who get higher wages will be offset by a reduction in employer-provided health coverage.

There are a lot of ways minimum wages can hurt the people they’re supposed to help. By raising the price of something in a competitive market, people will demand less of it. And while there is some mixed evidence, it does appear to be the case that minimum wages reduce employment.

In the simplest versions of the labor market, we assume that workers work for one thing and one thing only: wages. We know this isn’t strictly true, but it’s a good enough approximation that brings us some important insights into how labor markets work.

Of course, there’s a lot more to a job than wages. People want work that is meaningful or enjoyable. They might especially value safety, comfort, or flexibility. People can also get a lot of non-wage benefits like health coverage, scholarship opportunities, and paid vacation. Workers can (and do) “buy” these perks by accepting lower wages than they would require if the job weren’t as pleasant, meaningful, or safe or if the fringe benefits weren’t as good.

In short, workers don’t live on wages alone, and minimum wages might not change what workers get paid but rather how they get paid. Minimum wages mandate that cash wages take up a bigger part of employee compensation.

The mandated higher wages won’t be a free lunch. Consider someone who earns $12 per hour in total compensation but only $8 per hour in wages (the rest is things like health benefits and things like pleasantness of the job, safety of the workplace, flexibility, and so on). A minimum wage of $10 per hour doesn’t cost her her job, but it changes how she is compensated: instead of $8 in cash wages and $4 in benefits, she gets $10 in cash wages and $2 in benefits.

The effect doesn’t show up in fewer hours worked or a lost job, but she is worse off. It goes in other directions, too: if she is required to take part of her compensation in health insurance, she then gets lower wages or adjustment on some other margin.

Clemens, Kahn, and Meer are limited by available data, so they can’t measure everything comprehensively. They narrow their focus to the relationship between minimum wages and employer-provided health coverage and find that for Very Low wage workers (e.g. food service), about 9% of increase in earnings due to a $1 per hour increase in the minimum wage is offset by the lower probability of employer-provided health coverage. For Low Wage workers (e.g. retail sales), its 16%. For Modest Wage workers ( clerks and food service supervisors), it’s 57%—which is unsurprising since workers with higher wages get a smaller bump from minimum wage increases.

Henry Hazlitt, author of Economics in one Lesson, wrote that

“The art of economics consists in not merely looking at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”

In the case of the minimum wage, the art of economics also consists in identifying all of the important effects and not just those that are most politically salient. In this case, we would do well to try to measure all of the important effects on things like insurance coverage, job quality, fringe benefits, schedule flexibility, and so on before we decide that it’s wise to “#FightFor15.”

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Musk Accuses Mystery Employee Of “Extensive And Damaging Sabotage”

It wasn’t the first time there was a fire reported at a Tesla facility: as we noted at the time, there was another one just two months ago…

It was, however, the first time that Elon Musk directly blamed the Tesla fire, which supposedly took place at the company’s paint shop on Sunday night, on corporate sabotage.

According to CNBC, in an email sent to all employees on Monday morning about the fire, Musk referenced possible sabotage. But it gets better.

The Tesla CEO, who one month ago had a historic earnings call meltdown in which he cut off not one but two sellside analysts for asking “boring questions” (what they really wanted to know is what was the cancellation rate on Model 3s), also sent an e-mail to Tesla employees at Tesla late on Sunday night not only alleging, but also detailing that he has discovered a saboteur in the company’s ranks.

That said, there is very little disclosed of said mystery saboteur, except that it was a “he”:

I was dismayed to learn this weekend about a Tesla employee who had conducted quite extensive and damaging sabotage to our operations. This included making direct code changes to the Tesla Manufacturing Operating System under false usernames and exporting large amounts of highly sensitive Tesla data to unknown third parties.

The full extent of his actions are not yet clear, but what he has admitted to so far is pretty bad. His stated motivation is that he wanted a promotion that he did not receive. In light of these actions, not promoting him was definitely the right move.

Casually noting that “there are a long list of organizations that want Tesla to die” including “Wall Street short-sellers, who have already lost billions of dollars and stand to lose a lot more”, Musk said that this person had conducted “quite extensive and damaging sabotage” to the company’s operations, including by changing code to an internal product and exporting data to outsiders.

The rant, which was borderline paranoid, continued, hinting that the saboteur could have from virtually any in a countless number of enemies that Tesla has:

Then there are the oil & gas companies, the wealthiest industry in the world — they don’t love the idea of Tesla advancing the progress of solar power & electric cars. Don’t want to blow your mind, but rumor has it that those companies are sometimes not super nice. Then there are the multitude of big gas/diesel car company competitors. If they’re willing to cheat so much about emissions, maybe they’re willing to cheat in other ways?

It gets better, because as the dude said, “this is a very complicated case. You know, a lotta ins, lotta outs, lotta what-have-you’s. And, uh, lotta strands to keep in my head, man.”

And here is Musk:

there may be considerably more to this situation than meets the eye, so the investigation will continue in depth this week. We need to figure out if he was acting alone or with others at Tesla and if he was working with any outside organizations.”

Maybe for Musk’s next distraction he will kidnap himself?

For now, however, Musk is merely building up the tension as he juxtaposes the lone crusader company against the entire world:

Most of the time, when there is theft of goods, leaking of confidential information, dereliction of duty or outright sabotage, the reason really is something simple like wanting to get back at someone within the company or at the company as a whole. Occasionally, it is much more serious.

Musk, who recently wanted to purchase the pravudh.com domain to take on the press for their “fake news” then had some advice to his workers: if you see something, immediately rat someone out say something.

Please be extremely vigilant, particularly over the next few weeks as we ramp up the production rate to 5k/week. This is when outside forces have the strongest motivation to stop us.

If you know of, see or suspect anything suspicious, please send a note to [email address removed for privacy] with as much info as possible. This can be done in your name, which will be kept confidential, or completely anonymously.

Musk’s final words to his remaining workers – as a reminder last week he fired 9% of the Tesla workforce just before he bought $25MM in TSLA stock on margin in the premarket in hopes of starting another short squeeze – were somewhat more optimistic…

Looking forward to having a great week with you as we charge up the super exciting ramp to 5000 Model 3 cars per week!

… but of course, if the “super exciting ramp to 5000 Model 3 cars per week” fails, well now one can just blame a saboteur.

Musk’s letter immediately prompted various comments from skeptics:

Finally, let’s recall that it’s not the first time that when faced with adversity, Musk promptly blamed event on… sabotage:

And as this farce continues, we fully expect TSLA stock to squeeze even higher tomorrow, surpassing its previously all time high.

* * *

The full Musk letter is below, courtesy of CNBC:

From: Elon Musk

To: Everybody

Subject: Some concerning news

June 17, 2018

11:57 p.m.

I was dismayed to learn this weekend about a Tesla employee who had conducted quite extensive and damaging sabotage to our operations. This included making direct code changes to the Tesla Manufacturing Operating System under false usernames and exporting large amounts of highly sensitive Tesla data to unknown third parties.

The full extent of his actions are not yet clear, but what he has admitted to so far is pretty bad. His stated motivation is that he wanted a promotion that he did not receive. In light of these actions, not promoting him was definitely the right move.

However, there may be considerably more to this situation than meets the eye, so the investigation will continue in depth this week. We need to figure out if he was acting alone or with others at Tesla and if he was working with any outside organizations.

As you know, there are a long list of organizations that want Tesla to die. These include Wall Street short-sellers, who have already lost billions of dollars and stand to lose a lot more. Then there are the oil & gas companies, the wealthiest industry in the world — they don’t love the idea of Tesla advancing the progress of solar power & electric cars. Don’t want to blow your mind, but rumor has it that those companies are sometimes not super nice. Then there are the multitude of big gas/diesel car company competitors. If they’re willing to cheat so much about emissions, maybe they’re willing to cheat in other ways?

Most of the time, when there is theft of goods, leaking of confidential information, dereliction of duty or outright sabotage, the reason really is something simple like wanting to get back at someone within the company or at the company as a whole. Occasionally, it is much more serious.

Please be extremely vigilant, particularly over the next few weeks as we ramp up the production rate to 5k/week. This is when outside forces have the strongest motivation to stop us.

If you know of, see or suspect anything suspicious, please send a note to [email address removed for privacy] with as much info as possible. This can be done in your name, which will be kept confidential, or completely anonymously.

Looking forward to having a great week with you as we charge up the super exciting ramp to 5000 Model 3 cars per week!

Will follow this up with emails every few days describing the progress and challenges of the Model 3 ramp.

Thanks for working so hard to make Tesla successful,
Elon

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Satisfaction With Life In America Is Just 38%… And That’s A 12-Year High

Great news America…

According to the latest poll from Gallup, you not been this ‘satisfied’ since September 2005 – which was right after Hurricane Katrina caused catastrophic damage along the Gulf Coast, California Senate passed the first bill to allow gay marriage, Israeli troops infamously shoot dead a Palestinian teenager, and perhaps most ironically – North Korea agrees to drop all nuclear weapons programs and return “at an early date” to the Nuclear Non-Proliferation Treaty.

However, before you celebrate your aggregate exuberance, the percentage of Americans that are actually satisfied – albeit a 12 year high – was just 38%!

As Gallup notes, satisfaction with the nation is now back to the historical average of 37% for this trend, which was first measured in 1979, but is far below the majority levels reached in the economic boom times of the mid-1980s and late 1990s.

But, while Republicans and Independents saw a 14pt and 11pts increase in satisfaction in the last 6 months, Democrats’ satisfaction was unchanged at just 13%.

 

And as “satisfaction” pushes higher, President Trump’s approval rating is back at it highest of his presidency…

Gallup concludes by noting that though the vast majority of Americans have expressed pride in their country in polls stretching back more than 30 years, their pride has not meant they were satisfied with the way things were going. This has been especially true during times of economic duress — though measuring the public’s satisfaction with the nation encompasses far more than economics.

Now, at the midpoint of 2018, as the United States continues to enjoy a nine-year-long economic expansion, the number of Americans finding satisfaction in the country’s direction is on the rise. This reflects more than a growing comfort with Donald Trump as president; growth in satisfaction has outstripped growth in Trump’s approval rating. And it is more than economic good news — the percentage satisfied has risen more over the past two months than the percentage who think the economy is in good shape or the percentage who think it’s a good time to find a quality job.

As the nation moves toward November’s midterm elections, as the Mueller investigation continues to unfold, as Trump continues to surprise both friends and foes with his actions, there are a multitude of possibilities for news that could affect satisfaction significantly in either direction.

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Paul Tudor Jones: “The Next Recession Will Be Frightening”

With outgoing Goldman CEO Lloyd Blankfein clearly in a whimsical mood these days and happy to moonlight as a talk show host, in today’s “Talks at Goldman Sachs”, the hirsute CEO of the world’s biggest incubator of central bankers interviewed hedge fund investing legend Paul Tudor Jones.

After a brief conversation about the early days of Jones’ career, the conversation turned toward distortions in modern capital markets – of which there are plenty as Blankfein’s own top trader warned over the weekend – which Jones said will likely trigger the next recession and attendant market crash, a far more pessimistic assessment than his CNBC interview last week when he told Andrew Ross Sorkin to expect a melt-up spike in stocks before the end of the year.

As Jones unveiled his view of how derivatives markets are masking the true extent of the debt in present the financial system, his commentary sounded surprisingly similar to famous permabear Albert Edwards, as he leveled the blame squarely at central bankers for creating “dubious”, “unsustainable” asset prices.

Paul Tudor Jones

Early in the discussion, both men joked about how they were turned down for jobs at Goldman early in their careers: “what is it with these Goldman guys? They’re so stuck up,” Blankfein joked, prompting a smattering of laughs in the audience. 

Then Blankfein couldn’t help but ask: “Do you see a lot of excesses in the current market?” to which Jones answered in the affirmative, saying that compared with history, real interest rates are so unbelievably low, that clearly the current monetary policy regime is “just crazy.” In a way, history is repeating itself, as Jones compared the Fed’s interventionist policies to a period of “manipulation” in the 1950s and 1960s that made investors accustomed to low real rates…before the dawn of stagflation hammered markets and the US economy.

But this time around, much of the danger is balled up in the derivatives market, which Jones blamed for February’s “volocaust.”

“That one week in February that was derivative-inspired. Some of the greatest financial crises of the last 30 years…they all are derivative inspired because that’s where all the leverage is”, PTJ warned, echoing Warren Buffett’s famous “weapons of mass destruction” analogy.

“Right now, when you look at any asset price, you have to be thinking that this is a highly dubious sustainable price. First and foremost, I don’t think that the way monetary policy is conducted is sustainable over time. If you think of history, the normal real 10-year rate is 200 basis points and right now we’re probably negative 30 or 40…the normal real short-term rate is probably 120 basis points and we’re probably negative 40 right now…so interest rate policy is crazy right now…you know rates aren’t sustainable.”

When asked about his long-term view on asset prices, Jones was clear: prices are going down:

“We’re gong to be at 4% this year, add a half a percentage point every year, we’ll be at 7% in three years…you look at The prices of stocks, real estate everything…you know in the long run we’re going to need to mean revert to a real rate of interest with a normal term premium that’s existed for 250 years…and that probably means that the price of assets will go down in the very long run.”

There was better news for the “medium term” when PTJ says “we’re going to be pouring lighter fluid on a fire…we’re going to be jacked up and ready to go.”

This is what Jones previously called the “all roided up” market.

However, as Blankfein points out, there are two problems with that. One is, you need flares, and two is you don’t have any lighter fluid left when you really need it. Asked where PTJ thinks he will be when the next recession comes – PTJ had a very scary forecast:

“The next recession is really frightening because we won’t have any stabilizers. We’ll have monetary policy which we’ll exhaust really quickly, but we won’t have any fiscal stabilizers and in 2000, the last time we were at 3.8% unemployment we had a 2.5% budget surplus.”

At which point Blankfein butts in again, pointing out that “the hope is that the rate of growth grows to the point that it solves the problem” – at which time the two men shared a laugh: “You could’ve said that to me when Reagan was president.”

Of course, while the Kafkaesque state of markets is surely good for a laugh today, we are not so sure the two billionaires will be laughing when the “frightening recession” finally comes.

Watch the full interview below:

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