Made in the USA – How the Ukrainian Government is Giving Away Citizenships so Foreigners Can Run the Country

Screen Shot 2014-12-03 at 11.50.14 AMI hadn’t written a single piece on the U.S.-Ukraine-Russia quagmire for the entirety of 2014, until Monday when I published: Tensions Between the U.S. and Russia Are Worse Than You Realize – Remarks by Foreign Minister Sergey Lavrov. Now I can hardly think of anything else.

The reason the geopolitical hot zone has so captured my attention is because I think we are much closer to a serious escalation than most people want to admit. I hope I’m wrong, but when I take a step back and look at what is being said and done under the surface, an incredibly dangerous tinderbox is now firmly in place and ready to be lit. We know from history that relatively minor catalysts can lead to unimaginable horrors. I fear the stage is set for some real nastiness, and hope cooler heads can prevail on both sides.

Claims that the new government in the Ukraine is nothing more than a Western puppet Parliament have been swirling around consistently since February. Nevertheless, I think it’s very significant that the takeover is now overt, undeniable and completely out in the open. Nothing proves this fact more clearly than the recent and sudden granting of citizenship to three foreigners so that they can take top posts in the government.

At the top of the list is American, Natalie Jaresko, who runs private equity fund Horizon Capital. She will now be Ukraine’s Finance Minister, and I highly doubt she will be forced to pay the IRS Expatriation Tax (one set of laws for the rich and powerful, another set of laws for the peasants). For Economy Minister, a Lithuanian investment banker, Aivaras Abromavicius, will take the reigns. Health Minister will be Alexander Kvitashvili of Georgia.

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Thomas Friedman’s Favorite Dictatorship Bans Puns

Thomas Friedman,
wealthy dispensor
of
statist conventional wisdom
, once ruminated on Meet the
Press
that he
has “fantasized”
about how much better off the United States
would be if it briefly ditched representative democracy for China’s
authoritarianism:

What if we could just be China for a day? I mean, just, just,
just one day. You know, I mean, where we could actually, you know,
authorize the right solutions, and I do think there is a sense of
that, on, on everything from the economy to environment. I don’t
want to be China for a second, OK, I want my democracy to work with
the same authority, focus and stick-to-itiveness. 

The “authority, focus and stick-to-itiveness” of the People’s
Republic of China also includes
crackdowns on dissidents
, the destruction of homes
standing in the way of Olympic stadium progress, and now,
forbidding
the scourge of puns

Ain't gonna make it with anyone anyhow.

As reported by The Wall Street
Journal
, China’s State Administration of Press,
Publication, Radio, Film and Television (SAPPRFT) has outlawed puns
and wordplay in advertising and broadcasts because they are
“contradictory in spirit to the promotion and continuance of
excellent, traditional Chinese culture.” The Journal also
reports:

As part of an antipun rationale, authorities also cited the need
to improve China’s soft power abroad. Building soft power, the
regulator said, required creating more cultural awareness and
confidence.

“Confident Culturally Aware Soft Power” sounds like a possible
title for a future Friedman
column
, but China’s one-party communist government extends its
soft power much further than outlawing attention-grabbing fun with
language. According to
Business Insider
, China has
banned hundreds of words and phrases
. Here are some
highlights:

“Victoria” (Weiduoliha)

In Roman mythology, Victoria was the goddess of victory. So does
Weibo block the name because of that? The lingerie models? No, it’s
blocked for Hong Kong’s Victoria Park. 

Every June 4, Victoria Park acts as the site for a candlelight
vigil commemorating those who died in Tiananmen Square in 1989.
Other demonstrations frequently use the park as a home base,
too. 

“May 35” (Wuyue sanshiwu)

Since May has 31 days, the date “May 35” would technically be
June 4 — the day the army arrived in Tiananmen Square in Beijing in
1989 to deal with demonstrators. 

Since June 4 is obviously blocked on Weibo, users found other
ways to discuss the date: “day four,” “the beginning of June,” and
even phonetic translations of the words “six” and “four.” All of
them have been, or still are, blocked.

“Meow” (mimi)

Known to Westerns as the sound a cat makes (or an oboe-like folk
instrument), “meow” in Chinese is roughly the equivalent to “tits”
in English. 

The banned phrases span from subtle political protest to silly
sexual innuendos to words like “wifi,” which the Chinese government
views as a creeping Western threat to the aforementioned “soft
power.” 

Headline writers have
had a blast
wielding “the lowest form of
humor
” while reporting on the pun ban and
c
omparisons to the fictional government and its
“Newspeak” language depicted in George Orwell’s
1984
are obvious. But for big idea-thinkers like Friedman, this
latest Chinese action serves as a helpful reminder that Big Brother
also never lacked for “stick-to-itiveness.”

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Syria Goes Dark

Submitted by Pater Tenebrarum via Acting-Man blog,

Syria Then and Now

“Arab Spring” situations have an inexorable tendency to go pear-shaped (Tunisia, the first country to experience one is the lone exception, but even there the “old guard” is reportedly making a comeback, so the whole thing was essentially for nothing in the end). In Egypt, the revolution went from bringing an Islamist to power whose economic policies were either useless or were sabotaged by the organization that actually owns Egypt (the army controls 40% of the economy), back to someone who suspiciously looks like the old boss, with the only difference that he’s even worse. Nothing about the situation even remotely resembles democracy at this juncture. Getting jailed and tortured in Egypt and getting sentenced to death in mass show trials is once again par for the course.

Libya has disintegrated into a so-called “failed state” and is wracked by an ongoing civil war between the same factions that faced each other in Egypt: Islamists and the army, whereby in Libya there is also a dash of warlordism in play. The official government doesn’t even control the capital.

Syria however is arguably the worst case. The country, fought over by once again the very same types of factions (the army of a secular tinpot dicator and Islamists) has been rendered a pile of rubble in many places. We were reminded of a picture we have recently come across that illustrated this fact rather starkly. It shows a satellite image of Syria at night, before and after the civil war:

 

war in syria

The lights have gone out in Syria’s largest cities. Click to enlarge photo.

 

The only other places on earth that look comparably desolate in terms of lighting are either natural wastelands, the poorest regions in Africa or North Korea. Note that even before the civil war, light was concentrated in inhabitable areas – a lot of Syria consists of desert. Still, the difference is striking.

Aleppo’s Cultural Heritage Destroyed

We want to direct your attention specifically to Aleppo, once the largest city in the Levant. Today it looks like they are using two or three candles there at night. Here are two panoramas of Aleppo from before the war, from different perspectives:

 

BEFOREALEPPO.SKYLINE.2006.fin2_.AP06031706603

Aleppo before the war – in the background one can see its famous citadel.

 Photo credit:dapd

 

BEFOREsyria-aleppo

A different view of Aleppo from before the war.

 Photo credit: dbajurin

 

Aleppo is one of the world’s oldest cities. Archeologists found the remains of a temple to the Bronze Age storm god Adda (5000 BC) during excavations in Aleppo’s citadel. Aleppo was always one of the Middle East’s cultural and religious melting pot cities. It is e.g. not only home a great many antique mosques and other Islamic buildings (like the Dar-al-Ifta shown further below), but also to quite a large number of once beautiful Christian Maronite churches and cathedrals, as well as a few ancient synagogues (including the remains of a 2000 years old one). We must qualify the word “is” at this point. In a great many cases the appropriate term is “was”, because many of these buildings have been destroyed.

Below are a few pictures of Aleppo as it looks today. First pictures of residential areas, then a few “before and after” pictures of the irreplaceable cultural heritage destroyed by bombings and artillery.

 

 

aleppo-strike-852-04013259

Residential area in Aleppo

 Photo credit:AP / Author unknown

 

 

SYRIA_2359237b

Another residential area

 Photo credit: dpa

 

 

St.Kevork Church Aleppo

Inside the St. Kevork church (St. George church) in Aleppo

 Photo credit:AFP / STR

 

 

Dar-al-ifta-Aleppo-before-after

The Dar-al-Ifta, before and after (the “House of Fatwa Issuance”)

 Image via cicero.de / Author unknown

 

 

aleppo-khan-al-wazeer-before-after-fsa-decided-to-liberate-jpg

The Souq Khan al-Wazeer, before and after.

 Image via: un.org / Author unknown

 

Umayyad Mosque in Aleppo

And finally, the ancient Ummayyad mosque, above pictured in 2012, below in 2013.

 Image via: ifamo-blog.blogspot.co.at / Author unknown

 

 Conclusion:

War is hell and it has been unleashed in Syria to terrible effect on the lives of its people and its cultural heritage. The bombing was (so far) mainly Assad’s doing, and as can be seen above, he was quite thorough. Anyone bombing Syria now is mainly facing leftovers, and will presumably transform bigger pieces of rubble into slightly smaller pieces of rubble.




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Put/Call Ratio Surges To Highest Since May 2012

The various interpretations of put/call ratios are as diverse as the number of traders who view them. Typically they are used contrarian-wise, a high Put/Call ratio signals an over-cautious investor universe and thus is bullish (and vice versa) but in recent years that has been much less evident. Currently, the index-based put/call ratio is at 1.80 – the highest since May 2012, having been notably above 1 (i.e. more puts than calls) for most of the days since the Bullard lows.

Put/call ratio (rebased around 1 for clarity) is at its highest since May 2012…

 

Of course, there is one difference now… no QE (in the USA)

 

Chart: Bloomberg




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This Is The Body Camera That All NYPD Officers Will Soon Wear

As part of the final solution to inner city social unrest across America, President Obama has put forward recommendations that all police offers wear body cameras… this is what the ‘eyes-are-always-on-you’ NYPD police camera will look like. What ever happened to Google Glass privacy concerns?

 

 

The NYPD body camera program will increase trust building between the police & community.

The body camera program is launching in 6 commands. Training has started today at the new NYPD Academy.

This pilot program will take around 3 months to learn from the officers so we can equip other officers.

 

And here is Mayor De Blasio’s Press Conference on the matter (fwd to 43:45 for start)

 

Source: @NYPDNews




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“Obama Is Positively Allergic To Compromise”

One of the recurring topics during Obama’s speech to the Business Roundtable taking place today, aside from Obama’s clear revulsion against any sort of pessimistic thought – although we admit there is still time for an executive order that makes only Optimistic thought legal, or a brand new Federal Department of Optimism with a $1 trillion annual budget – has been Obama’s fear and loathing of another government shutdown. The issue, you see, is that Republicans are simply unwilling to compromise. Because, apparently, Obama is, about everything… except taxes, immigration or healthcare.

And while everyone knows Obama’s position and stance on everything which is either his way or the potholeway, here is how the other side sees Obama’s inability to lead, i.e., reach a consensus.

As The Hill reported, Sen. John Cornyn (R-Texas) blasted President Obama for killing a bipartisan tax deal. “The president seems to be positively allergic to compromise and good faith negotiations,” Cornyn said on the Senate floor Tuesday. “His actions are dividing the country.”

Senate Majority Leader Harry Reid (D-Nev.) and House leadership had negotiated a long-term deal to extend some tax breaks, but the president said the deal benefited only corporations instead of middle-class families.

 

Cornyn said this is just the latest example of Obama’s “take it or leave it” attitude.

 

Congress will now be forced to pass a one-year tax extension before the end of the year instead of dealing with the issue long-term.

Of course, nobody is worried that the government will actually do its job: after all there is a Fed to mask peak Congressional incompetence. One does wonder however, just which biotech stock is about to go up 2000% upon announcing it has found a way to cure Obama’s “compromise allergy.” Actually in retrospect, there is no risk of short being crushed by that particular announcement.




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The new exodus: 700,000 young people have left home looking for work abroad

Francisco Pizarro New World The new exodus: 700,000 young people have left home looking for work abroad

December 3, 2014
Santiago, Chile

When Francisco Pizarro returned to Spain from the New World in 1528, he told King Charles I of the vast material riches that were found in abundance on Peru’s shores.

He petitioned for permission to conquer the new lands in the name of the crown, and was granted governorship over a vast amount of territory as long as he succeeded in conquering it.

Hungry to get their hands on Incan gold, some 168 Spaniards joined him on the conquest.

In the first battle, the Incans lost 2,000 men while the Spanish lost only 5.

In subsequent battles against the Spaniards, Incan troops were massacred in horrific numbers due in large part to Spain’s technological superiority.

(It also didn’t hurt that the Incan empire was undergoing a civil war at the time.)

The Spaniards would go on to conquer the rest of Incan lands over the next 40 years, which included parts of modern day Argentina, Bolivia, Chile, Colombia, Ecuador and Peru.

And over the next few centuries the Spanish empire would grow to encompass a significant portion of the Americas, some parts of Africa and the East Indies.

Spain was, in fact, the greatest power in Europe during a significant chunk of the renaissance, and she had her overseas dominions to prove it.

How times have changed. Today Spain is in financial straits, and most of her former colonies are in far better economic shape.

And as the gloomy economic landscape in Europe has dried up opportunities for young Spaniards, many have started to look to South America to start new careers.

Between 2008 and 2012 an estimated 700,000 Spaniards have left home in search of greener pastures, choosing to go to places like Colombia, Peru, and Chile.

Unencumbered by a language barrier and without much culture shock, they’re finding that they’re able to rise up the career ladder much more quickly than they could back home.

The shortage of skilled labor and advanced training in these countries means that foreigners are able to obtain higher paying jobs than they could back home.

Some recent college grads find themselves occupying senior level positions after just a few years because there is no one else around qualified for the job.

Even folks who are not with a large corporation or hold an advanced technical degree still have valuable skills.

Just by virtue of being a consumer in the West, for example, you know much more about proper customer service than people in countries that aren’t constantly exposed to such high standards.

I see the same situation in dozens of countries all over the world as I travel. There are many places where local talent and skills simply aren’t catching up fast enough with economic growth.

They are hungry for skilled labor and the entrepreneurially-minded.

This bespeaks a greater trend of our times: some of the best opportunities are abroad. And in uncertain times, you have to carve an independent path to achieve success.

I was always told growing up that if I studied hard and worked my way up the corporate food chain that I’d become successful. Did they tell you that lie too?

That entire premise is fundamentally broken.

But the good news is that it’s never been easier to venture abroad in search of some of the most enticing opportunities out there.

And the transition is not nearly as treacherous as it might seem.

Our ancestors spent months on a boat with a good chance of never coming back. Today we can hop on an airplane and wake up on the other side of the planet.

We can communicate with friends and family with a mouse click. And we can even meet people and conduct research before we arrive.

All the tools and technology exist to make the transition abroad extremely smooth.

It just takes independence of mind to break out of the current mold and embrace the tremendous opportunity you can find overseas.

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Stephanie Slade on Whether the Tide of Conservative Support for the Death Penalty is Finally Changing

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A New Mexico penitentiary.Once upon a time, former Rep. Ron Paul was solidy
in favor of capital punishment. Now he’s helping to lead the charge
for a commutation of the sentence of Texas death row inmate Scott
Panetti, who was set to be executed tonight. Minutes ago, a court
of appeals announced that the execution would be stayed to allow it
“to fully consider the late arriving and complex legal questions at
issue in this matter.”

We can’t be sure that attitudes are headed for a tipping point.
Some three out of four Republicans still say they’re in favor of
the death penalty, and many of the conservative leaders who joined
Paul in asking for a stay of Panetti’s execution did so because
they believe he’s mentally ill, not because they believe capital
punishment is inherently wrong.

But conservatives should be skeptical of empowering
government—the same government the GOP routinely blasts as
incompetent—to decide who’s truly insane and who’s just faking it,
writes Stephanie Slade.

View this article.

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New US Oil Well Permits Collapse 40% In November, Fed Still “Not Worried”?

Houston, we have a problem-er. With a third of S&P 500 capital expenditure due from the imploding energy sector (and with over 20% of the high-yield market dominated by these names), paying attention to any inflection point in the US oil-producers is critical as they have been gung-ho "unequivocally good" expanders even as oil prices began to fall. So, when Reuters reports a drop of almost 40 percent in new well permits issued across the United States in November, even The Fed's Stan Fischer might start to question his lower oil prices are "a phenomenon that’s making everybody better off," may warrant a rethink.

 

As Reuters reports,

Data provided exclusively to Reuters on Tuesday by industry data firm Drilling Info Inc showed 4,520 new well permits were approved last month, down from 7,227 in October.

 

The pullback was a "very quick response" to U.S. crude prices, which settled on Tuesday at $66.88 CLc1, said Allen Gilmer, chief executive officer of Drilling Info.

 

New permits, which indicate what drilling rigs will be doing 60-90 days in the future, showed steep declines for the first time this year across the top three U.S. onshore fields: the Permian Basin and Eagle Ford in Texas and North Dakota's Bakken shale.

 

Gilmer said last month's pullback in permits was more about holding off on drilling good locations in a low-price environment than breaking even on well economics.

 

"I think in this case this was just a quick response, saying 'there are enough drill sites in the inventory, let's sit back, take a look and see what happens with prices,'" he said.

The specifics are intriguing given the cost curves…

The Permian Basin in West Texas and New Mexico showed a 38 percent decline in new oil and gas well permits last month, while the Eagle Ford and Bakken permit counts fell 28 percent and 29 percent, respectively, the data showed.

 

In addition to the Permian, Eagle Ford and Bakken, about 10 other regions tracked in Drilling Info's data showed declines as well. The Niobrara shale in Colorado and Wyoming saw a 32 percent decline in new permits, while the Granite Wash in Oklahoma and Texas and Mississippian Lime in Oklahoma and Kansas retreated 30 percent and 27 percent, respectively.

 

 

*  *  *

This is a precursor to more pain…

Gilmer said the pullback in new permits is a precursor to a decline in rigs. The U.S. land rig count has been largely flat since September, hovering around 1,860 oil and gas rigs, according to Baker Hughes Inc.

 

"This will show up," he said. "I expect we'll start seeing rig impact in a couple of months."

*  *  *

Of course, this should all be ignored because – like the NRF's reporting of a double-digit decline in Black Friday sales and slowing Cyber Monday – it would break the narrative for the US economic recovery, lower oil prices are "unequiviocally good" narrative!

 

Chart: Barclays




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