Trump’s Dr. Jekyll and Mr. Hyde Foreign Policy

President Donald Trump’s Sunday morning press conference on the killing of the murderous and evil Islamic State leader Abu Bakr al-Baghdadi was heavy on celebration but light on coherent strategy for America’s foreign policy in the Middle East. It’s clear that Trump is careening between his impulse to finally bring our troops home and an acceptance of the failed status quo of forever wars. This Dr. Jekyll and Mr. Hyde foreign policy is, in some ways, an improvement over that of recent administrations, but its inconsistency risks unnecessary escalation and makes it impossible to end endless wars.

On the positive side, Trump’s call for change in U.S. strategy hit several key points. First, the past 18 years of U.S. military intervention in the Middle East cannot be permitted to continue forever. “Look,” the president said, “we don’t want to keep soldiers between Syria and Turkey for the next 200 years.” Nor do we—or, at least, nor should we—want to keep them elsewhere in Syria or in Iraq, Afghanistan, Yemen, and beyond.

Part of the urgency of withdrawal stems from Trump’s second point, which is the futility of staying put: “They’ve been fighting for hundreds of years. We’re out.” U.S. military intervention is too often applied to problems it is incapable of resolving—problems better suited to political, religious, and diplomatic solutions implemented by people with more knowledge and interests at stake than the United States. Reactionary meddling in other nations’ affairs too often leads to failure and dangerous backlash.

Third is the enormous cost, both in dollars—”We’re in [the] Middle East now for $8 trillion,” Trump continued, referencing the long-term costs of these conflicts—and lives, with casualties numbering in the tens of thousands on the American side and the millions among civilian populations in the countries where we’re at war. “We don’t want to be there. We want to be home. I want our soldiers home,” Trump said, where they will be out of harm’s way.

Fourth is the security argument: Prolonging these wars fails to keep Americans safe while undermining American power. This is true on multiple fronts. One is that terrorist activity in the Middle East can be addressed by regional powers, all of which share the United States’ absolute opposition to ISIS and similar groups, even if we have grave differences on other matters. Russia, Syria, Iran, Iraq, Turkey are all “right there,” Trump said, and “they all hate ISIS. So we don’t—you know, in theory, they should do something.”

Likewise, America boasts strong natural defenses. “We’re 8,000 miles away” from the Middle East, Trump said, meaning terrorists face significant hurdles to attack the U.S. directly. U.S. boots on the ground in countries like Syria are bogged down policing and nation building, not deterring terror attacks, which can be planned anywhere, even outside of a territorial caliphate. And targeted raids, like the one that killed Baghdadi, can be conducted without a permanent ground presence in the Middle East.

So far, so good—but then Mr. Hyde broke out. Though the president insists “we’re out” of Syria, that simply isn’t true, as he conceded in this very press conference. “We are leaving soldiers [in Syria] to secure the oil,” Trump said. “And we may have to fight for the oil.” After announcing he wants American soldiers home, he immediately backtracked, indicating they could stay if they are “fighting something that’s meaningful.” (Local observers in Syria are already reporting U.S. forces have returned to the bases they just left.) Staying to control Syrian oil or land against claims from the Syrian regime, ISIS, or some new extremist group—or whatever else a president unilaterally deems “meaningful”—is not withdrawal. It is the opposite of withdrawal.

It does not bring an overlong war to an end; it does not stem the rising cost of intervention or prevent further bloodshed; and it does not contribute to American security. It unnecessarily keeps our soldiers from coming home, and it puts the United States at grave risk of broader conflict, including with nuclear-armed Russia.

Trump’s policy flies in the face of much of his rhetoric. For all his bluster, his foreign policy has been largely conventional. He talks like he’s taking U.S. foreign policy in a legitimately new direction, but his actions mostly stay the course.

The Baghdadi raid is an instructive example here. Its target—Baghdadi specifically, and ISIS more generally—was significantly a byproduct of U.S. foreign policy failures. Al Qaeda in Iraq, the forerunner of ISIS, emerged following the American invasion in 2003. Baghdadi’s own career in terrorism was at “every turn…shaped by the United States’ involvement in Iraq,” including through his imprisonment at a U.S. detention camp. These unintended consequences argue against military intervention and for withdrawal.

Also noteworthy is the raid itself, which is precisely the sort of counter-terror operation that the United States can conduct without an enduring ground presence in the Middle East. Those who argue that this kind of strike requires permanently policing an entire region are wrong, consigning the U.S. to perpetual war to reshape the Middle East. Those who acknowledge the last 20 years haven’t gone so well for the U.S. know better. It’s time for action, not talk, about bringing American soldiers home.

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Has California Lost ‘The Mandate Of Heaven’?

Has California Lost ‘The Mandate Of Heaven’?

Authored by Charles Hugh Smith via OfTwoMinds blog,

At that point, it’s too late: there’s no bid for overpriced decaying bungalows, overpriced tech stocks, etc.

In Chinese history, natural disasters were viewed as portents that the The Mandate of Heaven (tianming or “Heaven’s will”) had been withdrawn from the ruling dynasty. Broadening this concept a bit to regional dominance and power, we might ask: has California lost the Mandate of Heaven?

How many conflagrations does it take for it to sink in that the Golden State has lost its lustre in some profoundly karmic fashion?

How many messes of human excrement on our doorstep does it take to realize the situation will never get better, it can only get worse–much worse?

How many power blackouts, traffic gridlocks and mandatory evacuations does it take for those in denial to accept that the Mandate of Heaven has been withdrawn?

Young residents of the state have never experienced the velocity and depth of California’s famous busts. The last real spot of bother in California’s economy occurred almost 30 years ago in the early 1990s. Since then, it’s been one boom after another.

California’s cycles of enormous booms followed by equally gargantuan busts date back to the first Gold Rush. The eventual collapse of mining shares and overpriced real estate in San Francisco was epic, and Mark Twain’s account of his chest full of mining shares going from a tidy fortune to zip-zero-nada is a rueful reminder of how quickly fortunes can turn in the land of boom and bust.

It’s deceptively easy to take a pencil and ruler and extend a boom into infinity: the number of iPhones sold (always up), Apple’s quarterly earnings (always up), property tax revenues (always up) stocks’ multiple expansion ((always up) and so on.

California’s vast chattering class has ridden the IPO/VC/tech-monopoly/ stock buyback bubble for so long that it can’t believe the bubble could ever burst. This class lives in enclaves protected from human excrement, the addicted and the deranged, and in an information enclave of me-too tech/entertainment boosterism.

But as Benoit Mandelbrot showed in his book The (Mis)behavior of Markets, markets and human behavior are inherently fractal, i.e. chaotic, which means there are limits on the predictability of markets and economic trends.

Thus the chattering class has no inkling that the masses can cancel their Netflix, Disney and Apple subscriptions as easily as they signed on. Once jobs, tips, bonuses and gigs dry up, the tech-entertainment giants will find expenses are still rising while revenues are cratering. Once revenues and profits crater, it’s harder for management to justify borrowing billions more to fund more stock buybacks.

Extending booms into infinity doesn’t track reality. The last real recession circa 1990-1991 blew a $20 billion hole in the California state budget, and accounting for inflation and growth since then, we can expect a $35 – $40 billion hole being blown in the budget once the IPO / tech bubble collapses, as the state is heavily dependent on capital gains taxes for much of its income tax revenues. (There is no long-term capital gains rate in California; all capital gains are taxed as ordinary income, a rate that quickly hits 13.3%.)

Once capital gains dry up, the state is in a fiscal crisis with no solution.

And if the state can’t solve the homeless crisis with current spending in the hundreds of millions, then what will happen when the revenues dry up? What will happen if the homeless population doubles or triples? Look at the social havoc generated by the homeless population in San Francisco, which is roughly 1% of the total populace (around 9,000 homeless and a total population of 860,000.)

Phase transitions are intrinsic to systems displaying self-organized criticality such as markets and human behavior. Everything seems fine on the surface, and there’s no pressing need to sell the house and move away; there seems to be plenty of time until the phase transition kicks in and suddenly everything has changed for the worse, and so much faster than anyone expected.

At that point, it’s too late: there’s no bid for overpriced decaying bungalows, overpriced tech stocks, etc. Just like Mark Twain’s chest of mining stocks, the transition from being worth a fortune to no-bid near-worthlessness can be sudden indeed once California loses the Mandate of Heaven.

Beneath the surface, pressures are building and resilience is eroding, and when the tipping point is reached the transition will not be gradual and controllable, it will be non-linear and uncontrollable.

*  *  *

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*  *  *

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Tyler Durden

Tue, 10/29/2019 – 18:05

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

Trump’s Dr. Jekyll and Mr. Hyde Foreign Policy

President Donald Trump’s Sunday morning press conference on the killing of the murderous and evil Islamic State leader Abu Bakr al-Baghdadi was heavy on celebration but light on coherent strategy for America’s foreign policy in the Middle East. It’s clear that Trump is careening between his impulse to finally bring our troops home and an acceptance of the failed status quo of forever wars. This Dr. Jekyll and Mr. Hyde foreign policy is, in some ways, an improvement over that of recent administrations, but its inconsistency risks unnecessary escalation and makes it impossible to end endless wars.

On the positive side, Trump’s call for change in U.S. strategy hit several key points. First, the past 18 years of U.S. military intervention in the Middle East cannot be permitted to continue forever. “Look,” the president said, “we don’t want to keep soldiers between Syria and Turkey for the next 200 years.” Nor do we—or, at least, nor should we—want to keep them elsewhere in Syria or in Iraq, Afghanistan, Yemen, and beyond.

Part of the urgency of withdrawal stems from Trump’s second point, which is the futility of staying put: “They’ve been fighting for hundreds of years. We’re out.” U.S. military intervention is too often applied to problems it is incapable of resolving—problems better suited to political, religious, and diplomatic solutions implemented by people with more knowledge and interests at stake than the United States. Reactionary meddling in other nations’ affairs too often leads to failure and dangerous backlash.

Third is the enormous cost, both in dollars—”We’re in [the] Middle East now for $8 trillion,” Trump continued, referencing the long-term costs of these conflicts—and lives, with casualties numbering in the tens of thousands on the American side and the millions among civilian populations in the countries where we’re at war. “We don’t want to be there. We want to be home. I want our soldiers home,” Trump said, where they will be out of harm’s way.

Fourth is the security argument: Prolonging these wars fails to keep Americans safe while undermining American power. This is true on multiple fronts. One is that terrorist activity in the Middle East can be addressed by regional powers, all of which share the United States’ absolute opposition to ISIS and similar groups, even if we have grave differences on other matters. Russia, Syria, Iran, Iraq, Turkey are all “right there,” Trump said, and “they all hate ISIS. So we don’t—you know, in theory, they should do something.”

Likewise, America boasts strong natural defenses. “We’re 8,000 miles away” from the Middle East, Trump said, meaning terrorists face significant hurdles to attack the U.S. directly. U.S. boots on the ground in countries like Syria are bogged down policing and nation building, not deterring terror attacks, which can be planned anywhere, even outside of a territorial caliphate. And targeted raids, like the one that killed Baghdadi, can be conducted without a permanent ground presence in the Middle East.

So far, so good—but then Mr. Hyde broke out. Though the president insists “we’re out” of Syria, that simply isn’t true, as he conceded in this very press conference. “We are leaving soldiers [in Syria] to secure the oil,” Trump said. “And we may have to fight for the oil.” After announcing he wants American soldiers home, he immediately backtracked, indicating they could stay if they are “fighting something that’s meaningful.” (Local observers in Syria are already reporting U.S. forces have returned to the bases they just left.) Staying to control Syrian oil or land against claims from the Syrian regime, ISIS, or some new extremist group—or whatever else a president unilaterally deems “meaningful”—is not withdrawal. It is the opposite of withdrawal.

It does not bring an overlong war to an end; it does not stem the rising cost of intervention or prevent further bloodshed; and it does not contribute to American security. It unnecessarily keeps our soldiers from coming home, and it puts the United States at grave risk of broader conflict, including with nuclear-armed Russia.

Trump’s policy flies in the face of much of his rhetoric. For all his bluster, his foreign policy has been largely conventional. He talks like he’s taking U.S. foreign policy in a legitimately new direction, but his actions mostly stay the course.

The Baghdadi raid is an instructive example here. Its target—Baghdadi specifically, and ISIS more generally—was significantly a byproduct of U.S. foreign policy failures. Al Qaeda in Iraq, the forerunner of ISIS, emerged following the American invasion in 2003. Baghdadi’s own career in terrorism was at “every turn…shaped by the United States’ involvement in Iraq,” including through his imprisonment at a U.S. detention camp. These unintended consequences argue against military intervention and for withdrawal.

Also noteworthy is the raid itself, which is precisely the sort of counter-terror operation that the United States can conduct without an enduring ground presence in the Middle East. Those who argue that this kind of strike requires permanently policing an entire region are wrong, consigning the U.S. to perpetual war to reshape the Middle East. Those who acknowledge the last 20 years haven’t gone so well for the U.S. know better. It’s time for action, not talk, about bringing American soldiers home.

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Boeing Backlash: India’s IndiGo To Order 300 Jets From Airbus

Boeing Backlash: India’s IndiGo To Order 300 Jets From Airbus

It was only last week when we reported Florida-based Spirit Airlines bought 100 new Airbus SE A320neos. The low-cost air carrier was contemplating between Airbus SE A320neo and Boeing 737 Max planes, but since the 737 Max has been grounded across the world for nearly eight months due to severe design flaws, Spirit went with Airbus. 

As we noted last week, the backlash has begun, Boeing’s name is a disgrace to American aerospace, nevertheless, the company cannot be trusted due to its shady practices and negligence behind the Maneuvering Characteristics Augmentation System (MCAS), a flight control computer of the plane,  that malfunctioned in two separate crashes, one on October 2018 and the other March 2019. 

Reuters reported Tuesday morning that Indian budget airline IndiGo “is close to placing a near-record order for over 300 Airbus A320neos.” 

Sources told Reuters that the deal is expected to be worth $33 billion, which is roughly $110 million per plane.

The order includes Airbus’s most high-tech passenger plane, the long-range version of the A320 called the A321XLR.

The deal would be the largest-ever order Airbus has ever received from a carrier. Most importantly, it represents how global carriers are abandoning Boeing for Airbus after the 737 Max crisis.

IndiGo is quickly expanding across the Indian market. One reason behind the large order is that the carrier expects to outperform its closest competitor SpiceJet, an airline in the country that mainly operates Boeing planes. 

IndiGo has also ditched American engine supplier, United Technologies unit, Pratt & Whitney, for French-U.S. engine maker CFM for 600 engines to power the Airbus planes. 

The Boeing backlash is only in the beginning innings. We expect more carriers around the world to continue ditching 737 Max orders for A320neos. 

 


Tyler Durden

Tue, 10/29/2019 – 17:45

via ZeroHedge News https://ift.tt/2q4gZYy Tyler Durden

Warning! Interest Rates, Inflation, & Debt Do Matter

Warning! Interest Rates, Inflation, & Debt Do Matter

Authored by Bruce Wilds via Advancing Time blog,

With our national debt blowing past 23 trillion dollars nothing is as sobering as looking at future budgets. We should be worried. Central banks across the world claim the lack of inflation is the key force driving their QE policy and permitting it to continue, however, the moment inflation begins to take root much of their flexibility will be lost. This translates into governments being forced to pay higher interest rates on their debt. For years the argument that “This Time Is Different” has flourished but history shows that periods of rapid credit expansion always end the same way and that is in default. This also underlines the reality that any claims Washington makes about the budget deficit being under control is a total lie.

Click (Here) To View National Debt Clock

America is not alone in spending far more than it takes in and running a deficit. This does not make it right or mean that it is sustainable. Much of our so-called economic growth is the result of government spending feeding into the GDP. This has created a false economic script and like a Ponzi scheme, it has a deep relationship to fraud.

Global debt has surged since 2008, to levels that should frighten any sane investor because debt has always had consequences. Much of the massive debt load hanging above our heads in 2008 has not gone away it has merely been transferred to the public sector where those in charge of such things feel it is more benign. A series of off-book and backdoor transactions by those in charge has transferred the burden of loss from the banks onto the shoulders of the people, however, shifting the liability from one sector to another does not alleviate the problem.

When the 2018 financial year budget was first  unveiled it was projected to be $440 billion. An under-reported and unnoticed later report painted a far bleaker picture. The report titled the “Mid-Session Review” forecast the deficit much higher than originally predicted. The newer report predicted the deficit would come in at $890 billion which is more than double what they predicted in March of 2017.

Such a miss would bring up the question of whether the discrepancy in the 2018 budget is an outlier or a sign of incompetence. This is especially troubling because what was projected as a total budget deficit of $526 billion for 2019 Fiscal Year has now been revised to a staggering $1.085 trillion. Not only should the sheer size of these numbers trouble us but we should remember that until recently some Washington optimists were forecasting that deficits would begin to decline in 2020 and that we would even have a small surplus of 16 billion in 2026. The updated revisions have washed away this glimmer of hope and replaced it with more trillion-dollar deficits going forward.

Interestingly, the summery that begins on page one of the Mid-Session Review comes across as a promotional piece using terms like MAGAnomicics that praise and tout the Trump administration for its vision and great work. This is a time when it would be wise to remember numbers don’t lie but the people using them do. This report is an example of how they re-frame a colossal train wreck into something more palatable. The report even goes so far as to assure us that the deficit will fall to 1.4 percent of the GDP in 2028, from its current 4.4 percent. As a result of the American economy having survived with little effect what was years ago described as a financial cliff we have become emboldened and now enjoy a false sense of security. Today instead of dire warning we hear news from Washington and the media how the stock market continues to push into new territory and all is well.

National Debt Now At 23 Not 12 Trillion dollars

The chart to the right predicted that by 2019 the national debt would top 12 trillion dollars, not the current 23 trillion. Projections made by the government or any group predicting budgets based on events that may or may not happen at some future date are simply predictions and not fact. This means that such numbers are totally unreliable. The ugly truth many people ignore is that starting last year entitlements became the driving force that will carry the deficit higher and higher into nosebleed territory. Even though we have seen deficits reach unprecedented levels the deficits in our future will be dramatically worse.

It is very disturbing that so many people have forgotten or never taken the time to learn recent financial history. By recent, I’m referring to the last fifty to one hundred years. The path that Fed Chairman Paul Volcker set right decades ago has again become unsustainable and many people will be shocked when this reality hits. Do not underestimate the value of insight gained from decades of economic perspective. It tells us the economy of today is far different from the way things have always been.

Back in September of 2012, I wrote an article reflecting on how the economy of today had been greatly shaped by the actions that took place starting around 1979. Interest rates, inflation, and debt do matter and are more significant than most people realize. Rewarding savers and placing a value on the allocation of financial assets is important. It should be noted that many Americans living today were not even born or too young to appreciate the historical importance and ramifications of the events that took place back then. The impact of higher interest rates had a massive positive impact on corralling the growth of both credit and debt acting as a crucial reset to the economy for decades to come. Below is a copy of that article.

A Time For Action, 1980?

In his book “A Time For Action” written in 1980 William Simon, a former Secretary of the Treasury tells how he was “frightened and angry”.  In short, he sounded the trumpet about how he saw the country was heading down the wrong path. William Simon (1927 – 2000) was a businessman and a philanthropist. He became the Secretary of the Treasury on May 8, 1974, during the Nixon administration and was reappointed by President Ford and served until 1977.

I recently picked up a copy of the book that I had read decades ago and while re-reading it I reflected on and tried to evaluate the events that brought us to today. As often the future is unpredictable, looking back, it is hard to imagine how we have made it this long without finding long-term solutions and addressing the concerns that Simon wrote about so many years ago. Back then it was about billions of dollars of debt, today it is about trillions of dollars. It appears that something has gone very wrong.

Do Not Underestimate The Importance Of The Reset By Paul Volcker In 1980

By the end of the 70s inflation started to soar. Only by taking interest rates to nosebleed levels was then Fed Chairman Paul Volcker able to bring inflation back under control. Paul Volcker, a Democrat was appointed as Federal Reserve chairman by President Carter and reappointed by President Reagan. Volcker is widely credited with ending the stagflation crisis where inflation peaked at 13.5% in 1981. He did this by raising the fed fund rate which averaged 11.2% in 1979 to 20% in June of 1981.  This caused the prime rate to hit 21.5% and slammed the economy into a brick wall. This also affected and shaped the level of interest rates for decades

Rates Today Are Ready To Fall Off The Chart!

This action and the increased interest rates in following years is credited by many to have caused  Congress and the President to eventually balance the budget and bring back some sense of fiscal integrity and price stability to America.  As the debt from the Vietnam war and soaring oil prices became institutionalized we moved on. Interest rates slowly dropped and the budget came under control. In recent years spending has again started to grow and at the same time taxes have been cut. This has slowly occurred over years and been ingrained in the system.

With our debt at 23 trillion and growing the path has again become unsustainable and many people will be shocked when the reality hits. As our debt climbs some Americans feel just as frightened and angry as Simon did so many years ago. America has kicked the can down the road, failing time and time again to face the tough decisions. Part of the problem is the amount of debt has grown so large that we can no longer imagine or put a face on it. The day of reckoning may soon be upon us, how it arrives is the question. Many of us see it coming, but the one thing we can bank on is that when it arrives many will be caught totally off guard.


Tyler Durden

Tue, 10/29/2019 – 17:25

via ZeroHedge News https://ift.tt/2JxYq6h Tyler Durden

Is California’s Second Biggest Utility On Verge Of Collapse Next: Edison Plunges After Saying It May Be Responsible For Deadly 2018 Fire

Is California’s Second Biggest Utility On Verge Of Collapse Next: Edison Plunges After Saying It May Be Responsible For Deadly 2018 Fire

With California’s largest utility, PG&E,  now bankrupt after starting the deadliest fire in California history, and cutting power to its customers at the mere hint of a windstorm that could leave it exposed to more multi-billion lawsuits, leaving millions in the dark, California’s second largest utility, Edison, may soon be insolvent too.

The stock of Edison International, which is California’s second biggest electricity provider through its Southern California Edison subsidiary, which distributes electricity to 5.1 million customers in central, coastal, and southern California, collapsed after the close when the company reported in its earnings call that California investigators concluded equipment owned by Edison International’s utility caused one of the most destructive fires in state history, which killed three people and burned down entire sections of Malibu.

California county fire officials said that the Woolsey Fire, which raged for weeks in Los Angeles and Ventura counties in November 2018, was sparked by the utility’s electrical equipment, Edison CEO Pedro Pizarro said in a call with investors on Tuesday.

EIX shares plunged as much as 19% to $52.75 in after-hours trading before modestly recovering some losses to trade at $62.95. Edison investors had expected the company would be blamed for the fire.

The finding comes as California grapples with a wildfire crisis that’s pushed the state’s largest utility, PG&E Corp., into bankruptcy.

While the company said earlier this year that it believed equipment owned by its Southern California Edison utility may be cited as the cause, and it took a $4.7 billion charge in connection to wildfires in 2017 and 2018, the question now is whether that charge will be sufficient, and whether the company may in fact follow PG&E into the abyss of insolvency as it scramble to file for protection from mounting lawsuits.

As Bloomberg notes, California Governor Gavin Newsom prodded lawmakers to pass legislation over the summer designed to prevent another utility from spiraling into Chapter 11 by setting up a $21 billion utility fire insurance fund for future claims.
Edison had warned that it faced downgrades into junk status without the fund.

The Woolsey Fire broke out Nov. 8 and ripped through nearly 100,000 acres, forcing Malibu to be evacuated before being contained. It destroyed about 1,600 structures and was the seventh-most destructive wildfire in state history, according to Cal Fire.

Edison, based in the Los Angeles suburb of Rosemead, had reported a power failure on its system near the fire’s origin, where it found a loose wire had come in contact with one of its power lines.

Earlier this year, investigators said Edison’s equipment started the 2017 Thomas Fire, the 10th most destructive in state history. Edison has contested part of that finding. The California attorney general is probing Edison’s role in both blazes.


Tyler Durden

Tue, 10/29/2019 – 17:08

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

Student Charged With Manslaughter for Texting Boyfriend to ‘Go Die’

Massachusetts prosecutors persist in attempting to hold young women responsible for the conduct of troubled young men. This week, the Suffolk County District Attorney’s Office announced criminal charges against 21-year-old Inyoung You, for allegedly being so mean to her boyfriend that he committed suicide. 

You has been indicted on charges of involuntary manslaughter. Her case echoes the 2017 prosecution of Bristol County, Massachusetts, teenager Michelle Carter, who was convicted of involuntary manslaughter after she sent pro-suicide messages to her depressed boyfriend, who later killed himself. She was 17 and he was 18 at the time.

In the present case, 22-year-old Alexander Urtula committed suicide this past May, on the same day he was supposed to graduate from Boston College. Urtula and You had been dating for 18 months, according to Suffolk District Attorney Rachael Rollins. In the months leading up to his death, You allegedly sent Urtula 47,000 text messages, including some that said things like “go kill yourself” and “go die.”

Rollins accused You of making “demands and threats” and having “complete and total control over Mr. Urtula both mentally and emotionally.” 

You, a South Korean national who was also studying at Boston College, is currently back in her native country. Rollins said prosecutors were talking with attorneys about her coming back voluntarily but would start extradition proceedings otherwise. 

That’s right—a prosecutor is willing to extradite You back from South Korea for supposedly texting her boyfriend to death. 

In this case, as with Carter, the cruel messages certainly don’t speak highly of the sender. Urging a depressed loved one to kill themselves rather than seek help is appalling—and perhaps Carter and You are both just monsters. But it’s not unimaginable that urging a suicidal partner to go through with it could be a misguided attempt at compassion, if the sender was also struggling with depression or heartbroken at watching a loved one’s long suffering. (Carter’s lawyers blamed her behavior in part on antidepressants.) 

Dealing with someone close to you in the throes of serious mental illness can be a hugely taxing and confusing situation even for seasoned adults—and in these instances, we’re talking about 17 to 22 year olds.

Do we really want to start criminally prosecuting people for not handling these situations so well? Or to start locking people up for cruel words if the receiver happens to do something drastic? 

We don’t know the state of You and Urtula’s relationship and we don’t know what kinds of things he had been saying to her when she told him to “go die.” 

But phrases like that aren’t uncommon during nasty breakups. They can be (and usually are) rhetorical. A heat-of-the-moment response to some sort of provocation. The bitter pushback of someone treated poorly by a partner for too long. A plea to be left alone. A means of belittling. Or a horrid instruction. In short: highly contextual. Not the kind of thing folks like police and prosecutors have a great history with sorting out.  

It’s perhaps telling that so far, the two people charged for these pro-suicide text crimes are young women in relationships with male partners. The prosecutions of Carter and You play into tropes about young seductresses and the cruel sway they can have over helpless male targets. In both cases, the state has portrayed the young women as purely evil narcissists and wielders of unimaginable power over poor, enraptured young men. 

It’s a worrying trend.

Cases like these make criminals out of troubled teens and young adults, run counter to our current legal understandings of free speech, and represent a ridiculously over-punitive reaction. Which means that, unfortunately, they’re right in keeping with our country’s general attitude toward anything involving young people, relationships, and technology. 

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WTI Unimpressed By Small Crude Build, Cushing Draw

WTI Unimpressed By Small Crude Build, Cushing Draw

A weaker dollar and Saudi Arabia reportedly signaling support for trimming production further sparked a bounce intraday for oil prices but WTI ended the day lower.

“We’ll need to wait until closer to the next OPEC+ meeting to really know the lay of the land instead of relying on preemptive headlines,” said Michael Loewen, director of commodities strategy at Scotiabank in Toronto.

But, all eyes will be on inventories tonight after last week’s surprise crude drawdown and following the Genscape reports this morning

“The Genscape thread running through the industry, that says we’re going to get a good build of Cushing, that kind of tanked the market,” said Bob Yawger, futures division director at Mizuho Securities in New York.

API

  • Crude +592k (+2.5mm exp)

  • Cushing -846k

  • Gasoline +1.599mm (-2.5mm exp)

  • Distillates +1.998mm (-2.4mm exp)

After last week’s inventory draw, crude saw a small build (less than expected) while products saw notable builds (against the recent trend of draws as refinery maintenance season may be coming to an end)…

“We’re still in shoulder month so it makes sense we are a little bit ahead of ourselves,” said Jay Hatfield, CEO at InfraCap in New York. “It’s normal for oil to be weak for October.“

WTI bounced from a $54 handle intraday (sparked by reports of a $1.5mm build at Cushing by Genscape), holding around $55.40 ahead of the API print and barely budged on the data…

“We did catch a bit off equities because it serves as a demand indicator,” said Bob Yawger, futures division director at Mizuho Securities in New York. “If S&P and the economy is doing good enough, so will crude oil.”

 

 


Tyler Durden

Tue, 10/29/2019 – 16:55

via ZeroHedge News https://ift.tt/31VO1Yc Tyler Durden

Student Charged With Manslaughter for Texting Boyfriend to ‘Go Die’

Massachusetts prosecutors persist in attempting to hold young women responsible for the conduct of troubled young men. This week, the Suffolk County District Attorney’s Office announced criminal charges against 21-year-old Inyoung You, for allegedly being so mean to her boyfriend that he committed suicide. 

You has been indicted on charges of involuntary manslaughter. Her case echoes the 2017 prosecution of Bristol County, Massachusetts, teenager Michelle Carter, who was convicted of involuntary manslaughter after she sent pro-suicide messages to her depressed boyfriend, who later killed himself. She was 17 and he was 18 at the time.

In the present case, 22-year-old Alexander Urtula committed suicide this past May, on the same day he was supposed to graduate from Boston College. Urtula and You had been dating for 18 months, according to Suffolk District Attorney Rachael Rollins. In the months leading up to his death, You allegedly sent Urtula 47,000 text messages, including some that said things like “go kill yourself” and “go die.”

Rollins accused You of making “demands and threats” and having “complete and total control over Mr. Urtula both mentally and emotionally.” 

You, a South Korean national who was also studying at Boston College, is currently back in her native country. Rollins said prosecutors were talking with attorneys about her coming back voluntarily but would start extradition proceedings otherwise. 

That’s right—a prosecutor is willing to extradite You back from South Korea for supposedly texting her boyfriend to death. 

In this case, as with Carter, the cruel messages certainly don’t speak highly of the sender. Urging a depressed loved one to kill themselves rather than seek help is appalling—and perhaps Carter and You are both just monsters. But it’s not unimaginable that urging a suicidal partner to go through with it could be a misguided attempt at compassion, if the sender was also struggling with depression or heartbroken at watching a loved one’s long suffering. (Carter’s lawyers blamed her behavior in part on antidepressants.) 

Dealing with someone close to you in the throes of serious mental illness can be a hugely taxing and confusing situation even for seasoned adults—and in these instances, we’re talking about 17 to 22 year olds.

Do we really want to start criminally prosecuting people for not handling these situations so well? Or to start locking people up for cruel words if the receiver happens to do something drastic? 

We don’t know the state of You and Urtula’s relationship and we don’t know what kinds of things he had been saying to her when she told him to “go die.” 

But phrases like that aren’t uncommon during nasty breakups. They can be (and usually are) rhetorical. A heat-of-the-moment response to some sort of provocation. The bitter pushback of someone treated poorly by a partner for too long. A plea to be left alone. A means of belittling. Or a horrid instruction. In short: highly contextual. Not the kind of thing folks like police and prosecutors have a great history with sorting out.  

It’s perhaps telling that so far, the two people charged for these pro-suicide text crimes are young women in relationships with male partners. The prosecutions of Carter and You play into tropes about young seductresses and the cruel sway they can have over helpless male targets. In both cases, the state has portrayed the young women as purely evil narcissists and wielders of unimaginable power over poor, enraptured young men. 

It’s a worrying trend.

Cases like these make criminals out of troubled teens and young adults, run counter to our current legal understandings of free speech, and represent a ridiculously over-punitive reaction. Which means that, unfortunately, they’re right in keeping with our country’s general attitude toward anything involving young people, relationships, and technology. 

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JPMorgan Is Now Giving Its Coders Licenses To Deal In Equities

JPMorgan Is Now Giving Its Coders Licenses To Deal In Equities

The line between coders and traders at investment banks is starting to blur even further.

And leading the charge is JP Morgan, whose coders have now obtained licenses to deal in equities, according to Bloomberg

The bank got regulatory approvals this month for two of its coders in London and New York to trade cash equities. JP Morgan is targeting eight more licenses for coders, globally, by the end of the year. 

Jason Sippel, the bank’s head of global equities, said: “This is about convergence of the trader and quant. It’s moving at warp speed and re-inventing what the trading floor looks like.”

The move comes at a time when the largest investment banks have shelled out billions to automate trading while competition heats up. JP Morgan plans to deploy more than $11 billion just on technology initiatives alone this year. CEO Jamie Dimon has said that keeping up with technology is “critical” to the bank’s mission of gaining market share. 

As such, JP Morgan is placing even more faith into its quants. 

The bank has an  “Analytics, Automation & Optimization” team that it set up years ago that is focused on using data across sectors like prime brokerage, derivatives and cash trading within its equities unit. The team is led by Hans Buehler and has grown to about 180 employees, from 86, in just three years. Employees dedicated to cash equities have doubled to 36. 

Sippel continued: “We are hiring coders for equity sales who can tap into the reams of data we have to provide ideas.”

Sippel says his unit is also working on developing machine-learning based tools for the trading floor, like “RoboTrader”, a new tool that allows the company to automate pricing and hedging of equity options. 

JP Morgan is the top ranked bank for equity derivatives trading as of 2018 and, in September, the bank said it had reached $500 billion in prime brokerage balances, ranking it in second. In Q3, the bank posted a surprise 5% decline in equity trading revenue to $1.5 billion.

Sippel concluded: “Looking forward, we will have much more automation.”


Tyler Durden

Tue, 10/29/2019 – 16:45

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