Plane With 162 On Board Skids Off Turkish Runway, Nearly Falls Into Black Sea

The passenger jet of a Turkish low-cost carrier with over 160 on board slid off the slippery runway in the Turkish city of Trabzon Saturday night, leaving it precariously perched atop a cliff edge over the Black Sea, saved only by freezing mud.

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“We’re sorry to report that the Boeing 737-800 type TC-CPF registered aircraft of Pegasus Airlines Flight Number PC 8622 Ankara-Trabzon flight scheduled at 18:25 UTC tonight, had a Runway Excursion Incident during landing at Trabzon Airport (13 January 2018),” the airline said in a statement.

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“All 162 passengers, 2 pilots and 4 cabin crew have been disembarked safely from the aircraft. There has been no loss of life or injury to anyone on-board,” the company added.

According to RT, the rainy conditions made the runway surface slick, and according to data from RadarBox, the jet recorded speeds of 110 knots (204kph, 127mph) on the final third of the runway at which point it skidded out. The airport was closed until 9am local time Sunday.

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“We’ve taken all necessary measures. We will reopen the airport to air traffic as soon as possible,” Trabzon Governor Yücel Yavuz said Saturday night, as cited by Yeni Safak, adding that a crisis desk had been set up following the incident and that an investigation into the circumstances of the accident had already begun. He confirmed that there were no reported issues with the runway.

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Russia To Discuss Possible Exit From OPEC Deal

Authored by Zainab Calcuttawala via OilPrice.com,

Russia may be on its way out of the OPEC output reduction deal, according to the country’s Energy Minister, Alexander Novak.

 

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Reuters reports that Novak might discuss the country’s potential exit from the pact in Oman next week. Russia had vowed to cut output by 300,000 barrels per day under the agreement as part of a group of non-OPEC producers who elected to coordinate the bloc’s market stabilization initiative.

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 “We see that the market is becoming balanced. We see that the market surplus is decreasing, but the market is not completely balanced yet and, of course, we need to continue monitoring the situation,” Novak said.  Russian oil majors have been complaining about the deal and how it is creating stumbling blocks on the road towards the industry’s expansion plans.

Brent barrel prices are currently approaching $70 a barrel, suggesting crude markets are rebalancing as we approach June, when the deal is set for “review” – a process with little description in the full text of the OPEC deal’s renewal, which was agreed upon in November.

As far as OPEC members are concerned, the deal could carry on beyond the end of 2018. Speaking to CNBC, the United Arab Emirates’ energy minister, Suhail al-Mazrouei said: “I am expecting that this group of countries that stood and have become responsible for helping the market to correct, (that) there is a very good chance that they could stick together and put a shape around that alliance.”

His statement comes amid a variety of scenarios on how the deal might come to an end, featuring civil unrest in Venezuela and Iran that may lead to supply disruptions; Russia pulling out of the pact in June; OPEC members and other parties to the deal starting—or continuing—to cheat; and oil prices rising too high.

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US Resumes Accepting DACA Applications As Trump Rages On Twitter

With just days left until the latest government shutdown deadline, which looms ominously as negotiations over the treatment of DACA and immigration in general have broken down following Trump’s “shithole” outburst (see “‘Shithole’: The Word That Could Shutdown A $4 Trillion Federal Government“), late on Saturday the Trump administration said that it would resume accepting renewal applications for the Deferred Action for Childhood Arrivals program, bowing – for now – to a federal court ruling that blocked an effort to end the Obama-era policy.

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In September, President Trump said that he was ending DACA, which gives safe harbor from deportation and work permits to about 690,000 undocumented immigrants who were brought to the U.S. as children, known as Dreamers. He challenged Congress to replace the program with legislation offering similar protections, but lawmakers have so far been unable to agree on how. Then, last Tuesday, a San Francisco federal judge temporarily blocked the move, responding to multiple lawsuits challenging the decision. U.S. District Judge William Alsup said that until the cases are completed, the administration must consider renewal applications from immigrants who were enrolled in the program on Sept. 5, when Trump announced its end.

The lawsuits challenging DACA argue that the rescission of the program violates administrative procedures and is unconstitutional. Mr. Trump’s supporters point out that President Barack Obama created the program using executive authority and argue that it can be ended using that same authority.

Trump complained on Twitter about the court ruling after it was issued and predicted that the decision would be overturned. “It just shows everyone how broken and unfair our Court System is when the opposing side in a case (such as DACA) always runs to the 9th Circuit and almost always wins before being reversed by higher courts,” he wrote. The ruling was issued by the U.S. Court of Appeals for the Ninth Circuit, which is based in San Francisco. Conservatives often complain that the court has liberal leanings.

However, on Saturday, the U.S. Citizenship and Immigration Services said on its website that it would comply with the decision and “until further notice” would resume accepting renewal applications from those people. As a result, “Dreamers” who previously received a grant of protection under the Deferred Action of Childhood Arrivals (DACA) may apply for a renewal under the terms in place before it was rescinded in September.

“Due to a federal court order, USCIS has resumed accepting requests to renew a grant of deferred action under DACA,” the agency, part of the Homeland Security Department, said in an update posted on its website according to the WSJ.

The judge didn’t require that the administration accept new applications, and USCIS made clear that it won’t. More from the WSJ:

Advocates began spreading the word Saturday to those affected, advising them to submit applications. If the court decision is overturned, the agency may cease processing renewals once again.

“Until further notice, if you already applied for #DACA and it was expiring, this is your chance to reapply,” tweeted California Attorney General Xavier Becerra, who led the legal challenge on behalf of his state.

Meanwhile, Congress is debating whether or not to write new legislation that would grant legal status to these immigrants that were brought to the U.S. as children and remain illegally. The topic has emerged as a major sticking point in ongoing government funding negotations.

Trump’s decision to end the program sparked a major immigration debate in Congress, and a major controversy for the president. In Congress, Republicans have insisted that any DACA protections be accompanied by more enforcement, including funding for Mr. Trump’s border wall, or fence, with Mexico and new limits on legal immigration.

On Thursday, a deal over DACA was reportedly finalized “in principle”, when a bipartisan group of senators agreed to a package, but Trump and some conservative Republicans rejected it. It was during a meeting about this proposal that Mr. Trump referred to African nations as “shithole countries” and questioned why the U.S. would want to admit Haitians, sparking condemnation at home and abroad.

* * *

Following the CIS announcement, Trump unleashed another fiery tweetstorm on Sunday morning, lashing out at democrats, and stating “DACA is probably dead because the Democrats don’t really want it, they just want to talk and take desperately needed money away from our Military.”

He then added “I, as President, want people coming into our Country who are going to help us become strong and great again, people coming in through a system based on MERIT. No more Lotteries! #AMERICA FIRST.

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Prince Alwaleed Moved To Highest Security Saudi Prison After Refusing To Pay $6 Billion For Freedom

Goodbye Ritz Carlton. Saudi Arabia’s billionaire prince Alwaleed Bin Talal, has been carted off to Al Ha’ir prison – the Kingdom’s highest security prison – after refusing to pay  a reported $6 billion to Crown Prince Mohammed Bin Salman to secure his freedom, following a massive consolidation of power on November 4, 2017 in which over 300 princes, ministers and other elites were rounded up in an “anti-corruption” purge.

Sources told the news site that nearly 60 detainees were transferred to the most high security prison in the Kingdom. The prisoners include Prince Al-Waleed Bin Talal as Prince Turki Bin Abdullah and a number of government officials who refused to make the large financial payments for their release. –Middle East Montior

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Al’hair prison

Among those arrested on allegations of corruption is Prince Alwaleed Bin Talal, the Saudi King’s nephew who is worth more than $17bn according to Forbes, and owns stakes in Twitter, Lyft and Citigroup. According to a Daily Mail source, the crown prince had lulled Alwaleed into a false sense of security, inviting him to a meeting at his Al Yamamah palace, then sent officers to arrest him the night before the meeting.

‘Suddenly at 2.45am all his guards were disarmed, the royal guards of MBS storm in,’ said the source.

‘He’s dragged from his own bedroom in his pajamas, handcuffed, put in the back of an SUV, and interrogated like a criminal.

‘They hung them upside down, just to send a message.

Purged princes and the like were taken to the Riydah Ritz Carlton Hotel, where they have reportedly been allowed to buy their freedom by giving up their billions in oil wealth for their lives.

 

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Purged Royals inside Riydah Ritz Carlton

As the Daily Mail reported in November, mercenaries purportedly employed by Academi – a successor to infamous US security contractor Blackwater, have been stringing up some of MBS’s “guests” at the Riyadh Ritz Carlton by their feet and savagely beating them during interrogations. The claims have spread rapidly on Arabic-language social media, and even Lebanon’s president Michel Aoun has accused MbS of using mercenaries.

Meanwhile, none of Prince Alwaleed’s powerful friends appear to be coming to his defense. As CNBC points out:

One of the most stunning aspects of bin Talal’s detention is how quiet his long list of influential friends have been about it. This week brought at least some mention of his plight with a statement from two former French presidents who expressed concern over Alwaleed’s status. But let’s face it: a few words from a couple of French ex-presidents is peanuts.

So now we have bin Alwaleed in an actual prison, with a government aggressively taking cash and assets, and still no significant outcry from his foreign friends.

Bin Salman came to power last summer after King Salman changed the order of succession and made Bin Salman crown prince. In addition to his “anti-corruption” puge to consolidate power and wealth, the country has embarked on an ambitious plan called “Vision 2030“- which aims to modernize Saudi Arabia and break its dependence on oil production, as well as combat human rights violations.

 

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In late September,  Saudi Arabia took the unprecedented step of allowing women to drive“The royal decree will implement the provisions of traffic regulations, including the issuance of driving licenses for men and women alike,” the Saudi Press Agency said, according to Al Aribaya

Meanwhile, A Saudi Government panel has asked that all marriage contracts for girls under the age of 18 be approved by family courts – the latest step in a series of sweeping reforms under the lead of their new Crown Prince, Mohammad bin Salman. While falling short of outlawing child marriage, the request marks the first major legislation involving the long-standing practice primarily overseen by Saudi clerics and local judges – not family courts.

The proposed legislation was part of a series of recommendations by the Committee of Islamic and Judiciary Affairs last Monday, which also called for “competent” family courts to oversee premarital virginity tests for girls under 18.

“The committee acceded to have those under 18 submit their marriage contracts, as well as a pre-marital tests to a competent court to determine their case” –Councilwoman Dr. Eqbal Darandari

Some Shoura members disagreed with this decision because they believed it meant we condone underage marriage,” said Darandari, adding “Others suggested that only those between the ages of 16-18 can transfer their cases to a judge, and those below 16 cannot get married. Some members demanded this be applied to underage boys, as well.

Dr. Darandari is among several Saudi legislators who believe in an an age limit for underage girls’ to marry. “Girls’ voices must be heard and their opinions taken into consideration. I don’t believe a pre-marital test is enough. In my opinion, I think we need a female committee — made of a doctor, lawyer, psychologist and social worker — that studies the girl’s state in order to assess whether or not she can get married.

She also warned of the damage which can occur to children who are forced into marriage.

Those that are fifteen or younger can undergo severe physical and psychological damage through marriageand they’re probably unequipped for it. I believe there should be sanctions to those who do not adhere to that, and in the case of a marriage during that delicate age, a girl’s right to demand a divorce if things don’t work out should be guaranteed.” –Dr. Eqbal Darandari

So there you have it – Bin Salman is attempting to modernize his country, while wrestling power from long-standing oil families. And for those who don’t comply with their cucking, it’s off to prison where the beatings shall continue until morale improves…

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Giant “Shithole” Projected Onto Trump’s D.C. Hotel

The word “shithole” graced the front of President Trump’s D.C. hotel Saturday evening, along with flying “poo” emojis in a multimedia display. 

 

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The video projection also included the “Pay Trump bribes here” “emoluments welcome,” and “we are all responsible to stand up and end white supremacy”

Watch here: 

On Thursday evening, reports broke that Trump had criticized the Gang of Six senators’ plan to reinstate TPS programs for El Salvador, Haiti, and some African nations.

“Why are we having all these people from shithole countries come here?” Trump reportedly in the White House meeting with a group of senators, including Sen. Dick Durbin, D-Ill., and Sen. Lindsey Graham, R-S.C. According to the Washington PostTrump then suggested that the United States should instead bring more people from countries such as Norway, whose prime minister he met with Wednesday. The president, according to a White House official, also suggested he would be open to more immigrants from Asian countries because he felt that they help the United States economically.

Meanwhile, the comment sparked outrage among Democrats who did not hesitate to publicly slam Trump for what many said was a racist comment.

President Trump denied the comment on Friday, tweeting “this was not the language used” during the DACA meeting. 

He then following up by claiming he “never said anything derogatory about Haitians other than Haiti is, obviously, a very poor and troubled country. Never said “take them out.” Made up by Dems. I have a wonderful relationship with Haitians. Probably should record future meetings – unfortunately, no trust!”

Despite Trump’s vehement denial, it wasn’t enough to keep enraged activists from pulling off a vulgar, poo-themed protest of the President. 

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Army Strategist Exposes The Disturbing Parallels Between US Domestic Policing & Military Tactics Abroad

Authored by Major Danny Sjursen via TheNation.com,

This…thing, [the War on Drugs] this ain’t police work… I mean, you call something a war and pretty soon everybody gonna be running around acting like warriors… running around on a damn crusade, storming corners, slapping on cuffs, racking up body counts.… pretty soon, damn near everybody on every corner is your fucking enemy. And soon the neighborhood that you’re supposed to be policing, that’s just occupied territory.”

-—Major “Bunny” Colvin, season three of HBO’s The Wire

I can remember both so well.

2006: my first raid in South Baghdad.

2014: watching on YouTube as a New York police officer asphyxiated – murdered – Eric Garner for allegedly selling loose cigarettes on a Staten Island street corner not five miles from my old apartment. Both events shocked the conscience.

 

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It was 11 years ago next month: My first patrol of the war, and we were still learning the ropes from the army unit we were replacing. Unit swaps are tricky, dangerous times. In Army lexicon, they’re known as “right-seat-left-seat rides.” Picture a car. When you’re learning to drive, you first sit in the passenger seat and observe. Only then do you occupy the driver’s seat. That was Iraq, as units like ours rotated in and out via an annual revolving door of sorts. Officers from incoming units like mine were forced to learn the terrain, identify the key powerbrokers in our assigned area, and sort out the most effective tactics in the two weeks before the experienced officers departed. It was a stressful time.

Those transition weeks consisted of daily patrols led by the officers of the departing unit. My first foray off the FOB (forward operating base) was a night patrol. The platoon I’d tagged along with was going to the house of a suspected Shiite militia leader. (Back then, we were fighting both Shiite rebels of the Mahdi Army and Sunni insurgents.) We drove to the outskirts of Baghdad, surrounded a farmhouse, and knocked on the door. An old woman let us in and a few soldiers quickly fanned out to search every room. Only women—presumably the suspect’s mother and sisters—were home. Through a translator, my counterpart, the other lieutenant, loudly asked the old woman where her son was hiding. Where could we find him? Had he visited the house recently? Predictably, she claimed to be clueless. After the soldiers vigorously searched (“tossed”) a few rooms and found nothing out of the norm, we prepared to leave. At that point, the lieutenant warned the woman that we’d be back—just as had happened several times before—until she turned in her own son.

I returned to the FOB with an uneasy feeling. I couldn’t understand what it was that we had just accomplished. How did hassling these women, storming into their home after dark and making threats, contribute to defeating the Mahdi Army or earning the loyalty and trust of Iraqi civilians? I was, of course, brand new to the war, but the incident felt totally counterproductive. Let’s assume the woman’s son was Mahdi Army to the core. So what? Without long-term surveillance or reliable intelligence placing him at the house, entering the premises that way and making threats could only solidify whatever aversion the family already had to the Army. And what if we had gotten it wrong? What if he was innocent and we’d potentially just helped create a whole new family of insurgents?

Though it wasn’t a thought that crossed my mind for years, those women must have felt like many African-American families living under persistent police pressure in parts of New York, Baltimore, Chicago, or elsewhere in this country. Perhaps that sounds outlandish to more affluent whites, but it’s clear enough that some impoverished communities of color in this country do indeed see the police as their enemy. For most military officers, it was similarly unthinkable that many embattled Iraqis could see all American military personnel in a negative light. But from that first raid on, I knew one thing for sure: We were going to have to adjust our perceptions—and fast. Not, of course, that we did.

Years passed. I came home, stayed in the Army, had a kid, divorced, moved a few more times, remarried, had more kids – my Giants even won two Super Bowls. Suddenly everyone had an iPhone, was on Facebook, or tweeting, or texting rather than calling. Somehow in those blurred years, Iraq-style police brutality and violence – especially against poor blacks – gradually became front-page news. One case, one shaky YouTube video followedanother: Michael Brown, Eric Garner, Tamir Rice, Philando Castile, and Freddie Gray, just to start a long list. So many of the clips reminded me of enemy propaganda videos from Baghdad or helmet-cam shots recorded by our troopers in combat, except that they came from New York, or Chicago, or San Francisco.

BRUTAL CONNECTIONS

As in Baghdad, so in Baltimore. It’s connected, you see. Scholars, pundits, politicians, most of us in fact like our worlds to remain discretely and comfortably separated. That’s why so few articles, reports, or op-ed columns even think to link police violence at home to our imperial pursuits abroad or the militarization of the policing of urban America to our wars across the Greater Middle East and Africa. I mean, how many profiles of the Black Lives Matter movement even mention America’s 16-year war on terror across huge swaths of the planet? Conversely, can you remember a foreign policy piece that cited Ferguson? I doubt it.

Nonetheless, take a moment to consider the ways in which counterinsurgency abroad and urban policing at home might, in these years, have come to resemble each other and might actually be connected phenomena:

1. The degradations involved: So often, both counterinsurgency and urban policing involve countless routine humiliations of a mostly innocent populace. No matter how we’ve cloaked the terms—“partnering,” “advising,” “assisting,” and so on—the American military has acted like an occupier of Iraq and Afghanistan in these years. Those thousands of ubiquitous post-invasion Army foot and vehicle patrols in both countries tended to highlight the lack of sovereignty of their peoples. Similarly, as long ago as 1966, author James Baldwin recognized that New York City’s ghettoes resembled, in his phrase, “occupied territory.” In that regard, matters have only worsened since. Just ask the black community in Baltimore or for that matter Ferguson, Missouri. It’s hard to deny America’s police are becoming progressively more defiant; just last month St. Louis cops tauntedprotestors by chanting “whose streets? Our streets,” at a gathering crowd. Pardon me, but since when has it been okay for police to rule America’s streets? Aren’t they there to protect and serve us? Something tells me the exceedingly libertarian Founding Fathers would be appalled by such arrogance.

2. The racial and ethnic stereotyping. In Baghdad, many troops called the locals hajis, ragheads, or worse still, sandniggers. There should be no surprise in that. The frustrations involved in occupation duty and the fear of death inherent in counterinsurgency campaigns lead soldiers to stereotype, and sometimes even hate, the populations they’re (doctrinally) supposed to protect. Ordinary Iraqis or Afghans became the enemy, an “other,” worthy only of racial pejoratives and (sometimes) petty cruelties. Sound familiar? Listen to the private conversations of America’s exasperated urban police, or the occasionally public insults they throw at the population they’re paid to “protect.” I, for one, can’t forget the video of an infuriated white officer taunting Ferguson protestors: “Bring it on, you f§ § king animals!” Or how about a white Staten Island cop caught on the phone bragging to his girlfriend about how he’d framed a young black man or, in his words, “fried another nigger.” Dehumanization of the enemy, either at home or abroad, is as old as empire itself.

3. The searches: Searches, searches, and yet more searches. Back in the day in Iraq—I’m speaking of 2006 and 2007—we didn’t exactly need a search warrant to look anywhere we pleased. The Iraqi courts, police, and judicial system were then barely operational. We searched houses, shacks, apartments, and high rises for weapons, explosives, or other “contraband.” No family—guilty or innocent (and they were nearly all innocent)—was safe from the small, daily indignities of a military search. Back here in the , a similar phenomenon rules, as it has since the “war on drugs” era of the 1980s. It’s now routine for police SWAT teams to execute rubber-stamped or “no knock” search warrants on suspected drug dealers’ homes (often only for marijuana stashes) with an aggressiveness most soldiers from our distant wars would applaud. Then there are the millions of random, warrantless, body searches on America’s urban, often minority-laden streets. Take New York, for example, where a discriminatory regime of “stop-and-frisk” tactics terrorized blacks and Hispanics for decades. Millions of (mostly) minority youths were halted and searched by New York police officers who had to cite only such opaque explanations as “furtive movements,” or “fits relevant description”—hardly explicit probable cause—to execute such daily indignities. As numerous studies have shown (and a judicial ruling found), such “stop-and-frisk” procedures were discriminatory and likely unconstitutional.

As in my experience in Iraq, so here on the streets of so many urban neighborhoods of color, anyone, guilty or innocent (mainly innocent) was the target of such operations. And the connections between war abroad and policing at home run ever deeper. Consider that in Springfield, Massachusetts, police anti-gang units learned and applied literal military counterinsurgency doctrine on that city’s streets. In post-9/11 New York City, meanwhile, the NYPD Intelligence Unit practiced religious profilingand implemented military-style surveillance to spy on its Muslim residents. Even America’s stalwart Israeli allies—no strangers to domestic counterinsurgency—have gotten in on the game. That country’s Security Forces have been training American cops, despite their long record of documented human rights abuses. How’s that for coalition warfare and bilateral cooperation?

4. The equipment, the tools of the trade: Who hasn’t noticed in recent years that, thanks in part to a Pentagon program selling weaponry and equipment right off America’s battlefields, the police on our streets look ever less like kindly beat cops and ever more like Robocop or the heavily armed and protected troops of our distant wars? Think of the sheer firepower and armor on the streets of Ferguson in those photos that shocked and discomforted so many Americans. Or how about the aftermath of the tragic Boston Marathon Bombing? Watertown, Massachusetts, surely resembled Army-occupied Baghdad or Kabul at the height of their respective troop “surges,” as the area was locked down under curfew during the search for the bombing suspects.

Here, at least, the connection is undeniable. The military has sold hundreds of millions of dollars in excess weapons and equipment—armored vehicles, rifles, camouflage uniforms, and even drones—to local police departments, resulting in a revolving door of self-perpetuating urban militarism. Does Walla Walla, Washington, really need the very Mine Resistant Ambush-Protected (MRAP) trucks I drove around Kandahar, Afghanistan? And in case you were worried about the ability of Madison, Indiana (pop.: 12,000), to fight off rocket propelled grenades thanks to those spiffy new MRAPs, fear not, President Trump recently overturned Obama-era restrictions on advanced technology transfers to local police. Let me just add, from my own experiences in Baghdad and Kandahar, that it has to be a losing proposition to try to be a friendly beat cop and do community policing from inside an armored vehicle. Even soldiers are taught not to perform counterinsurgency that way (though we ended up doing so all the time).

5. Torture: The use of torture has rarely—except for several years at the CIA—been official policy in these years, but it happened anyway. (See Abu Ghraib, of course.) It often started small as soldier—or police—frustration built and the usual minor torments of the locals morphed into outright abuse. The same process seems underway here in the as well, which was why, as a 34-year old New Yorker, when I first saw the photos at Abu Ghraib, I flashed back to the way, in 1997, the police sodomized Abner Louima, a Haitian immigrant, in my own hometown. Younger folks might consider the far more recent case in Baltimore of Freddie Gray, brutally and undeservedly handcuffed, his pleas ignored, and then driven in the back of a police van to his death. Furthermore, we now know about two decades worth of systematic torture of more than 100 black men by the Chicagopolice in order to solicit (often false) confessions.

UNWINNABLE WARS: AT HOME AND ABROAD

For nearly five decades, Americans have been mesmerized by the government’s declarations of “war” on crime, drugs, and – more recently – terror.

In the name of these perpetual struggles, apathetic citizens have acquiesced in countless assaults on their liberties. Think warrantless wiretapping, the Patriot Act, and the use of a drone to execute an (admittedly deplorable) American citizen without due process.

The First, Fourth, and Fifth Amendments – who needs them anyway? None of these onslaughts against the supposedly sacred Bill of Rights have ended terror attacks, prevented a raging opioid epidemic, staunched Chicago’s recordmurder rate, or thwarted America’s ubiquitous mass shootings, of which the Las Vegas tragedy is only the latest and most horrific example. The wars on drugs, crime, and terror – they’re all unwinnable and tear at the core of American society.

In our apathy, we are all complicit.

Like so much else in our contemporary politics, Americans divide, like clockwork, into opposing camps over police brutality, foreign wars, and America’s original sin: racism. All too often in these debates, arguments aren’t rational but emotional as people feel their way to intractable opinions. It’s become a cultural matter, transcending traditional policy debates. Want to start a sure argument with your dad? Bring up police brutality. I promise you it’s foolproof.

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These Are The States With The Best (and Worst) Credit Scores, Household Incomes

In its latest visualization of the dominant economic trends across the disparate geographical regions of the US, HowMuch.com has created a color-coded map that displays a state’s average credit score compared with its average income.

As the map clearly shows, there’s a correlation: States with higher median incomes tend to have higher average credit scores.

 

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Immediately, three regional groupings become clear: One group stretches from the Northwest across the Northern Great Plains, all the way to the Great Lakes. All of these states have similar credit scores over 685 and decent-sized incomes, with Minnesotans in the lead with a score of 722 and a median income of $63,217. There’s another pocket of rich states in the Northeast, the richest being Massachusetts at 706 and $70,954. And finally, there’s a large group of states across the Deep South where people on average have very bad credit scores. Mississippians post the worst scores in the country (648) while on average earning just $40,528.

Here’s a list off the top 10 states ranked by average credit score, together with the median household income.

1. Minnesota: 722 and $63,217

2. North Dakota: 713 and $59,114

3. Vermont: 713 and $56,104

4. New Hampshire: 712 and $68,485

5. South Dakota: 711 and $52,078

6. Wisconsin: 710 and $54,610

7. Iowa: 708 and $54,570

8. Massachusetts: 706 and $70,954

9. Washington: 704 and $62,848

10. Hawaii: 702 and $71,977

Since a good income makes it easier to pay the bills, it follows that families with higher earnings have better credit scores.

However, there is one exception to this: Alaska.

Alaskans enjoy some of the highest incomes in the country ($74,444) thanks to the energy industry, but the state has an average credit score of 675.

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The Strange Case Of The Falling Dollar – And What It Means For Gold

Authored by Alt-Market’s Brandon Smith via Birch Gold Group,

Trillions of dollars in uncontrolled central bank stimulus and years of artificially low interest rates have poisoned every aspect of our financial system. Nothing functions as it used to. In fact, many markets actually move in the exact opposite manner as they did before the debt crisis began in 2008. The most obvious example has been stocks, which have enjoyed the most historic bull market ever despite all fundamental data being contrary to a healthy economy.

 

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With a so far endless supply of cheap fiat from the Federal Reserve (among other central banks), as well as near zero interest overnight loans, everyone in the economic world was wondering where all the cash was flowing to. It certainly wasn’t going into the pockets of the average citizen. Instead, we find that the real benefactors of central bank support has been the already mega-rich as the wealth gap widens beyond all reason.  Furthermore, it is clear that central bank stimulus is the primary culprit behind the magical equities rally that SEEMS to be invincible.

To illustrate this correlation, one can compare the rise of the Fed’s balance sheet to the rise of the S&P 500 and see they match up almost exactly. Coincidence? I think not…

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Another strangely behaving market factor that has gone mostly unnoticed has been the Dollar index (DXY). Beginning after the global financial crisis in 2008, the dollar’s value in reference to other foreign currencies initially moved in a rather predictable manner; collapsing in the face of unprecedented bailout and stimulus programs by the Fed, which required unlimited fiat creation from thin air. Naturally, commodities responded to fill the void in wealth protection and exploded in price. Oil markets in particular, which are priced only in the US dollar (something that is quickly changing today), nearly quadrupled. Gold witnessed a historic run, edging toward $2,000.

In the past few years, central banks have initiated a coordinated tightening policy, first by tapering QE, then raising interest rates, and now by decreasing their balance sheets. I would note that while oil and many other commodities plummeted in relative value to the dollar after tightening measures, gold has actually maintained a strong market presence, and has remained one of the best performing investments in recent years.

Something rather odd, however, has been happening with the dollar…

Normally, Fed tightening policies should cause an ever-increasing boost to the dollar index. Instead, the dollar is facing a swift plunge not seen since 2003.

 

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What is going on here? Well, there are a number of factors at play.

First, we have a growing international sentiment against US treasury bonds (debt), which may be affecting overall demand for the dollar, and in turn, dollar value.  For example, one can see a relatively steady decline in US treasury holdings by Japan and China over the course of 2016, with China being the most aggressive in its move away from US debt:

We also have a subtle, yet increasing, international appetite for an alternative world reserve currency. The dollar has enjoyed decades of protection from the effects of fiat printing as the world reserve, but numerous countries including Russia, China, and Saudi Arabia are moving to bilateral trade agreements which cut out the US dollar as a mechanism. This will eventually trigger an avalanche of dollars flooding into the US from overseas, as they are no longer needed to execute cross-border trade. And, in turn the dollar will continue to fall in relative value to other currencies.

There is also the issue of coordinated fiscal tightening by central banks around the world, with the ECB and even Japan moving to cut off stimulus measures and QE.  What this means is, other currencies will now be appreciating in terms of Forex market value against the dollar, and in turn, the dollar index will decline further.  Unless the Federal Reserve acts more aggressively in its interest rate hikes, the dollar’s decline will be brutal.

Finally, we also have the issue of nearly a decade of Fed stimulus that has gone without audit (except for the limited TARP audit, which shows tens of trillions in money/debt creation). We truly have no idea how much fiat was actually created by the Fed – but we can guess that it was a massive sum according to the seemingly endless rise in equities from a point of near total breakdown, funded by quantitative easing and stock buybacks. You cannot conjure a market rebound merely with debt. Eventually, that currency creation and the consequences will have to set a foot down somewhere, and it is possible that we are witnessing the results first in the dollar, as well as the Treasury yield curve, which is now flattening faster than it did just before the stock market crash in 2008.

A flat yield curve is generally a portent of economic recession.

 

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I believe that this is just the beginning of troubles for the dollar and for US bonds. Which raises the question, how will the Fed react to a dollar market that is so far completely ignoring their tightening policies?

Here is where things get interesting.

Throughout 2017, I warned that the Fed would continue to raise interest rates (despite many people arguing to the contrary) and would eventually find an excuse to increase rates much faster than previously stated in their dot plots. I based this prediction on the fact that the Fed is clearly moving to pop the enormous fiscal bubble it has engineered since 2008, and that they plan do this while Donald Trump is in office (whether or not Trump is aware of this plan is hard to say). Trump has already taken credit on several occasions for the epic stock rally, and thus, when the plug is pulled on equities life support, who do you think will get the blame? Definitely not the banking elites who inflated the bubble in the first place.

Even the mainstream financial media has admitted at times that Trump will “regret” his campaign demands that the Fed hike rates and stop pumping up stock markets, as he will be inheriting a fiscal punch in the gut.

The Fed, as well as the mainstream, have also planted the notion that the Fed “will be forced” to raise interest rates faster if the Trump Administration pursues its plans for Hoover-style infrastructure development.

But, on top of this, the “problem” of the falling dollar also introduces a whole new rationale for speedy interest rate hikes. I believe that soon after Janet Yellen leaves as Fed chair and Jerome Powell transitions in, the Fed will begin an exponential increase in rates and will speed up their balance sheet reductions. And, they will blame the unusual decline in the dollar index as well as falling Treasury demand as the cause for more extreme action.

Powell has already backed “gradual rate hikes” in 2018, and, a few members of the Fed expressed a need for “faster hikes” in the minutes of the last meeting in December. I predict this sentiment will expand under Powell.

A small number of Wall Street economists are also warning of more rate hikes in 2018, and that this could cause considerable shock to the virtual stock rally in play right now.

That might be the Fed’s plan. The central bankers need a scapegoat for the eventual bursting of the market bubble that they have produced. Why not simply allow that bubble to finally implode in the near term, blaming the Trump administration and, by extension, all the conservatives that supported him? To do this, the Fed needs an excuse to hike rates swiftly; and they now have that excuse with the dollar dropping like a stone (among other reasons).

But how will this affect gold?

So far, gold has actually spiked along with Fed rate increases, which might seem counter intuitive, but so is the dollar falling along with rate increases.

 

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I do think that there will be an initial and marginal drop in gold prices if the Fed increases the frequency of rate hakes. That said, eventually reality will set into stock markets that the party is over, the punch bowl is being taken away, and Trump’s tax reform will not be enough to offset the loss of access to trillions in cheap fiat dollars from the central bank.

Once stocks begin to collapse in the wake of Fed hikes and balance sheet reductions (and they will), and uncertainty in the fate of the dollar swells, gold will bounce back stronger than ever. In the meantime, I would treat any drop in precious metals as a major buying opportunity. Gold is one of the few assets that always does well during times of crisis.

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The Chinese Are Now Spending As Much As Americans

In the US, the latest batch of data, released this week, showed retail sales climbed in December for the sixth straight month – though they missed expectations, with growth slowing to 0.3% MoM.

 

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With the personal savings rate at a 10 year low, the US consumer is now fully tapped out: This latest uptick in spending has presumably been fueled by debt, as credit-card borrowing has reached an all-time high.

But another milestone in the history of global consumerism passed last month: As the  Washington Post  points out, China tied the US in 2018 in terms of domestic retail sales – according to data compiled by Mizuho.

 

WaPo

In some important categories, China has overtaken the US: With 17.6 million vehicles sold in the US in 2016, for example, but that was far below the 24 million passenger cars sold in China. US automakers account for about one out of every five cars sold in China, even though the communist party placed a 10% tax on luxury cars and trucks imported from the United States.

This economic heft has made the problem of confronting China intractable: China is now responsible for 20% of sales for some of the largest US corporations. This is making it difficult for Trump to confront Xi Jinping.

Any restrictions on Chinese access  to the US market would be met with barriers to American companies selling in China.

“China is one of the most important markets for many U.S. multinational companies,” Shen says. “This should lend China immense bargaining power.”

One area where there’s a lot of agreement across the political spectrum is to go after China’s theft of US intellectual property. Over the summer, Trump ordered an investigation by the US Trade Representative Robert Lighthizer to examine China’s IP policies. That investigation is ongoing, and could lead the US to file a WTO dispute. Unilateral actions might include duties or import restrictions.

As the new year begins, it’s likely consumer spending in China will quickly surpass that in the US as more newly minted middle class Chinese discover consumer electronics, cars and fashion.

 

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Paul Craig Roberts Rages At The Persecution Of Julian Assange

Authored by Paul Craig Roberts,

“We need a political intervention to make this situation end. He (Assange) is the only political prisoner in Western Europe.” Juan Braco

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The persecution of Julian Assange, the founder of Wikileaks, is now seven years old. Ecuador has protected Assange for the past half decade from being turned over to Washington by the corrupt Swedish and British for torture and prosecution as a spy by giving Assange political asylum inside the Ecuadorian Embassy in London. Ecuador has now given citizenship to Assange and attempted to provide his safe transit out of England by giving him diplomatic status, but the British government continued in its assigned role of jailer by rejecting Ecuador’s request for diplomatic status for Assange, just as the most servile of Washington’s puppet states rejected the order by the UN Committee on Arbitrary Detention to immediate release Assange from his arbitrary detention.

Assange got into trouble with Washington, because his news organization, Wikileaks, published files released by Bradley Manning. The files were a tremendous embarrassment to Washington, because they showed how Washington conspires against governments and betrays its allies, and the files contained an audio/video film of US military forces murdering innocent people walking down a street and then murdering a father and his two young children who stopped to give aid to the civilians the American soldiers had shot. The film revealed the heartlessness and criminal cruelty of the US troops, who were enjoying playing a real live video game with real people as their victims.

It was Manning who suffered, not the troops who committed murder. Manning was held for two years in conditions that experts said constituted torture while a case was framed against him. Some believe the harsh conditions affected his mind. Manning was convicted by a kangaroo court and sentenced to 35 years in prison, but Obama in an act of humanity unusual for Washington pardoned Manning.

Washington wanted Assange as well, and the chance came when two Swedish women, attracted to Assange by his celebrity status, seduced him. The two women had not secured the cooperation they wanted from Assange in the use of condoms and, brainwashd by HIV fears, wanted Assange to join them in being tested.

Assange, misreading the extent of their fears, was too slow to comply, and the women went to the police to see if he could be required to be tested. According to the women, the police made up the charge of rape. The women themselves disavow the charge.

The charges were investigated, and the chief Swedish prosecutor Eva Finne dismissed the charges, saying “there is no suspicion of any crime whatsoever.”

Mysteriously, the case was reopened by another prosecutor, Marianne Ny, who many suspect was operating at the behest of Washington. On November 30, two days after Assange began publishing the Cablegate materials leaked by Bradley Manning, Ny issued an Interpol “red alert” arrest warrant for Assange. This was an unusual request as no charges were outstanding against Assange, and hitherto extradition from one country to another on an arrest warrant required actual charges, whereas Ny said she wanted Assange for questioning. Most everyone in the know understood that Washington had ordered Sweden to get its hands on Assange and to turn him over to Washington.

Assange challenged the legality of the arrest warrant in British courts, but the British court, many believe following Washington’s orders, ruled against the law and in favor of Washington. Assange assented to the arrest and presented himself to a British police station. He was placed in solitary confinement at Wandsworth prison. If memory serves, the daughter of Sir James Goldsmith paid his bond and he was placed under house arrest. When it became clear that the Swedish prosecutor wanted Assange for Washington, not for any charges against him in Sweden, Ecuador give him asylum, and he fled to the embassy in London.

Where he has been ever since.

Sweden has closed the case a second time, and Assange is no longer wanted for questioning in Sweden. Therefore, there is no longer any reason for the British to hold him for Sweden. But the British government never were holding Assange for Sweden. The British were holding him for Washington. And they still are. Even though Sweden has closed a case based on a false report by police and have no basis for any charges against Assange, the British government says it will grab him the minute he steps outside the embassy.

The British are so desperate to serve their Washington master that once they even declared that they were going to violate diplomatic immunity and invade the Ecuadorian Embassy and seize Assange.

The British excuse for a once proud government’s continuing servitude to Washington as Assange’s jailer is that by taking asylum in the embassy Assange jumped bail and therefore the British have to arrest him for not surrendering a second time to the police for an investigation that has been closed.

Stefania Maurizi, an Italian investigative journalist for La Repubblica, smelling the stench of fraud that covers the entire case, has been trying for two years to get her hands on the correspondence between the UK, US, and Swedish governments pertaining to the case in order to pull back the shroud of the Washington-orchestrated propaganda that colors the case. A British tribunal refused to release any documents on the grounds that it had to protect the British Prosecution Service’s relationship with foreign authorities.

That tells you all you need to know. Julian Assange has lost seven years of his life because stinking dirty Washington wanted revenge on Assange for exercising the US Constitution-protected right of a free press, and the stinking dirty governments of Sweden and Britain did Washington’s dirty work. What we know for certain is that Assange is totally innocent and that there is no honor and no integrity in the US, Swedish, and British governments. Law means nothing to the scum that misrule these countries.

In the US and probably throughout Europe, politicians and feminists, with the exception of Katrin Axelsson and Lisa Longstaff, used the presstitute media to paint Assange as a rapist and as a spy. The feminists cared nothing about any truth; they just wanted a man to demonize. Truth was the last thing on politicians’ minds. They just wanted to divert attention from Washington’s crimes and betrayals of allies by portraying Assange as a threat and traitor to America. They were unconcerned that Assange could not be a traitor to America as he is not an American citizen. In actual fact, there is no basis in law for any US claim against Assange. Yet because of Washington and its servile British puppet state, Assange remains interred in the Embassy of Ecuador in London. Clearly, honor and respect for law reside in Ecuador, not in the US, UK, or Sweden.

But facts, along with law and civil liberty, have ceased to mean anything in the Western world. The corrupt US Attorney General Jeff Sessions said that the arrest of Assange is a “priority.” The British police, mere lackeys of Washington, said that they would still arrest Assange, despite the case being dropped, if he left the embassy.

For the British, serving Washington is a higher calling than the honor of their country.

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