Why Are American Taxpayers Propping Up Mexico’s Insolvent, Government-Owned Oil Company?

reason-pemex

As the saying goes, “You can’t teach an old dog new tricks.” Nowhere is this truth more evident than in the recent behavior of the allegedly “reformed” Export-Import Bank of the United States.

Reauthorized by Congress in December 2019 with the promise that it would suddenly change its ways and focus its firepower on fighting China, this export credit agency quickly returned to its tired routine of propping up its old and favorite customers, including—very prominently—Petroleos Mexicanos, or Pemex.

Right under Congress’ nose, Ex-Im Bank approved $400 million in financing to this Mexican government-owned oil company. This use of taxpayer funds raises several questions, not the least of which is why our federal government would subsidize a foreign state-owned company in the first place. There’s no good answer.

Moreover, Pemex is in serious financial trouble. It could very well collapse, despite its privileged position in Mexico. A pandemic-induced drop in oil prices combined with years of mismanagement have left Pemex technically insolvent. It’s already the world’s most-indebted oil company and one of the largest issuers of debt in Latin America.

In April, both Moody’s and Fitch downgraded Pemex’s bond rating to junk status, and the deputy governor of Mexico’s central bank recently said that Pemex could become an “incurable cancer” if its government doesn’t address its deep-seated structural problems. Now, thanks to Ex-Im’s decision to extend financing to Pemex, if the company collapses, it will also be a problem for American taxpayers.

Pemex has been corrupt for years. In July 2020, its former chief executive was arrested in Spain (where he had been hiding to evade a Mexican arrest warrant) and extradited. He’s now a protected witness in an expansive bribery scandal involving three of Mexico’s former presidents, four former finance ministers, two presidential challengers, two state governors and a number of legislators.

Among other offenses, the bribes were allegedly paid to ensure passage of energy-sector reforms under the prior government, in order to open the sector to foreign investment. The Wall Street Journal also reported last October that the U.S. Department of Justice and the Securities and Exchange Commission are conducting a broad investigation into corruption at Pemex.

Now Ex-Im is justifying its financing to Pemex with the go-to excuse that it “would help counter financing competition from foreign export credit agencies, including from China.” This claim is dubious. In the bill to reauthorize Ex-Im last December, Congress did include what it calls the Program on China and Transformational Exports. It specified 10 sectors for the program, such as artificial intelligence, renewable energy, water treatment and sanitation. However, the list doesn’t include oil and gas. Nearly a quarter of Ex-Im’s overall exposure is in that sector, so Ex-Im’s long-standing connections to the industry—rather than a desire to counter China—are probably why the bank continues to deepen ties with Pemex.

This brings us to another question: How can some members of Congress reconcile subsidizing so many foreign oil and gas companies in light of their stated concerns about climate-related issues? Pemex’s record on that front should particularly disturb those who so loudly proclaim their environmental interests.

Don’t be quick to blame this fiasco on President Donald Trump and his Republican political appointees alone, either. One of his political appointees to Ex-Im’s board of directors is a Democrat. And under President Barack Obama, Ex-Im happily extended the same favors to the foreign oil and gas company. In fact, Ex-Im data show that between 2007 and 2015, Pemex received over $7 billion in financing from the United States.

The overarching lesson from this mess is that Congress was unrealistic to expect Ex-Im to change its ways. The bank can assert that things will be different, or that it will now focus on fighting China, but at the end of the day, its relationship with Pemex stretches back more than 70 years—a fact about which the agency boasts in its press release.

As long as Ex-Im holds tight to its favored companies, nobody should expect major results in any so-called transformational sectors. Old dogs won’t learn new tricks. And as far as Congress’ reauthorization of the Export-Import Bank, I’m reminded of another canine aphorism: “As a dog returns to his vomit, so a fool repeats his folly.”

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Congressional Hearing Reveals US Govt’s Invisible Hand In Protests Around The World

Congressional Hearing Reveals US Govt’s Invisible Hand In Protests Around The World

Tyler Durden

Thu, 10/01/2020 – 00:00

Authored by Dave DeCamp via AntiWar.com,

Last week, the House Foreign Affairs Committee grilled Michael Pack, who President Trump recently appointed to head the US government’s state propaganda arm, the US Agency for Global Media (USAGM).

Pack was appointed in June and started a big shakeup at the US state media outlets run by the USAGM, like Voice of America and Radio Free Asia. Pack fired senior staffers, pushed out management, and froze funding.

During last week’s hearing, Democrats and Republicans on the committee teamed up to attack Pack for his purges. But what seemed more important to Congress and former USAGM officials was Pack’s move to freeze funds to the Open Technology Fund (OTF). The OTF was formed in 2012 and operated as part of Radio Free Asia for seven years. In 2019, the OTF became an independent non-profit, although it is financed by US taxpayer dollars through the USAGM.

“Color Revolutions”

According to former USAGM officials and OTF board members, the OTF supports protesters in other nations across the world. “In many places around the globe, OTF quietly is providing support to protesters,” said Grant Turner, the former USAGM chief financial officer, who Pack removed in August. “So the Hong Kong protesters are protecting their identities from surveillance by OTF tools; protesters in Iran; we’ve seen it in Beirut,” Turner said.

Ambassador Karen Kornbluh, who sits on the board of the OTF, also testified and spoke of how the OTF helps protest movements. “OTF has a long history of supporting internet freedom efforts, and was poised to expand its efforts in Hong Kong,” Kornbluh said. “It was going to serve support for circumvention tools and expand support for digital training.”

Kornbluh explained that the USAGM froze OTF funds before China’s national security law for Hong Kong came into effect. “And then USAGM froze, and continues to withhold, its funding – and did that just weeks before the new security laws came into effect,” Kornbluh said. “So OTF hasn’t been able to support any of these efforts.”

The frozen Hong Kong funds were first reported by Time magazine in June. According to Time, Pack froze $2 million that would have “directly benefited the pro-democracy movement in Hong Kong.” One project the OTF was working on in Hong Kong was a “cybersecurity incident response team” that would have analyzed Chinese surveillance techniques in Hong Kong. The team would have shared information with developers who would design apps for protesters to use. The freeze in funding made this project impossible to go through with.

Another OTF project hampered by the freeze was a $500,000 “rapid response fund, designed to provide fast relief for civil society groups, protesters, journalists, and human rights defenders.” According to Time, this initiative has already made several payouts to groups in Hong Kong since the civil unrest began in June 2019.

Michael Pack is the chief executive of the US Agency for Global Media, US Senate file image

The cut in funding inadvertently revealed the US government’s covert role in the Hong Kong protest movement. The US government-funded National Endowment for Democracy also provides funding for “pro-democracy” movements in Hong Kong.

Besides the US government supporting Hong Kong protesters through cutout organizations like the OTF and NED, there has been more overt interference in the city. Throughout the demonstrations, protesters were seen waving US flags and calling for Congress to pass legislation. Leaders of the movement even traveled to Washington and testified before Congress, pleading for US intervention.

President Trump signed the Hong Kong Human Rights and Democracy Act into law in November 2019. The administration has since sanctioned Hong Kong officials and changed the city’s special trade status. This US interference gave Beijing the foreign boogeyman it needed to pass the controversial national security law.

Pack was appointed to head the USAGM after the White House accused Voice of America of repeating Chinese state propaganda in its coronavirus coverage. Considering this, the damage Pack’s overhaul did to the OTF’s support for protesters in Hong Kong was likely an unintended consequence.

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Military Suicides Rise An Alarming 20% As Top Brass Blame COVID Stress

Military Suicides Rise An Alarming 20% As Top Brass Blame COVID Stress

Tyler Durden

Wed, 09/30/2020 – 23:40

Military suicides are up an average of 20% this year over the same period in 2019, according to the Associated Press, citing military officials.

Broken down by service, suicide among active duty Army is up 30%, from 88 last year to 114 this year, while the Army Guard is up 10% from 78 to 86 over the same period.

While the Pentagon would not provide 2020 suicide data, Army officials cites discussions in DoD briefings – and say that while they can’t directly attribute the rise to COVID-19, the timing coincides.

“I can’t say scientifically, but what I can say is – I can read a chart and a graph, and the numbers have gone up in behavioral health related issues,” Army Secretary Ryan McCarthy told AP.

Pointing to increases in Army suicides, murders and other violent behavior, he added, “We cannot say definitively it is because of COVID. But there is a direct correlation from when COVID started, the numbers actually went up.”

Preliminary data for the first three months of 2020 show an overall dip in military suicides across the active duty and reserves, compared to the same time last year. Those early numbers, fueled by declines in Navy and Air Force deaths, gave hope to military leaders who have long struggled to cut suicide rates. But in the spring, the numbers ticked up. –Associated Press

“COVID adds stress,” said Air Force chief Gen. Charles Brown in public remarks. “From a suicide perspective, we are on a path to be as bad as last year. And that’s not just an Air Force problem, this is a national problem because COVID adds some additional stressors – a fear of the unknown for certain folks.”

There were 98 suicides between active duty Air Force and reserves as of September 15, unchanged from from last year – which was the worst in three-decades for active duty suicides across the branch. In 2018, the Pentagon claimed in a report that the military suicide rate was roughly equivalent to the US general population “after adjusting for the fact that the military is more heavily male and younger than the civilian population.

The 2018 rate for active duty military was 24.8 per 100,000, while the overall civilian rate for that year was 14.2, but the rate for younger civilian men ranged from 22.7 to 27.7 per 100,000, according to the National Institute of Mental Health. –Associated Press

We know that the measures we took to mitigate and prevent the spread of COVID could amplify some of the factors that could lead to suicide,” said the Army’s director of resilience programs, James Helis – who said that virus-related isolation, combined with loss of childcare and financial disruptions is putting a strain on military families

Meanwhile, Army leaders also pointed to stress from the United States being at war for nearly two decades – with deployments being compounded by the virus, along with civil unrest and natural disasters.

According to Army veteran Sergio Alfaro who served for 4.5 years, fears associated with the virus amplified his PTSD and suicidal thoughts.

“It’s definitely something that’s made things a bit more chaotic, trying to plan for the future, do things together,” said the former Iraq vet who dealt with daily mortar rounds in Baghdad in 2003. “It’s almost like adding more trash on the heap.

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Fahrenheit 451 Predicted People Would Demand Tyranny

Fahrenheit 451 Predicted People Would Demand Tyranny

Tyler Durden

Wed, 09/30/2020 – 23:20

Authored by Barry Brownstein via The American Institute for Economic Research,

Even if it has been a while since you read Fahrenheit 451, you might remember Ray Bradbury’s classic for its portrayal of a dystopian future in which an authoritarian government burns books.

Read Fahrenheit 451 again to discover why people wanted their tyrannical government to burn books. Bradbury wrote Fahrenheit 451 in 1953, yet the parallels to today’s social climate for censorship are haunting.

Bradbury’s protagonist is Guy Montag, who, like all firemen in Bradbury’s future, burns books. 

In Bradbury’s dystopia, firemen became “custodians of our peace of mind, the focus of our understandable and rightful dread of being inferior; official censors, judges, and executors.”  

Today’s mainstream and social media are “custodians of our peace of mind” as they filter out “conflicting theory and thought.” Captain Beatty is Montag’s boss. Beatty explained, “If you don’t want a man unhappy politically, don’t give him two sides to a question to worry him; give him one.” 

If you don’t want people debating questions such as Covid-19 policy, Beatty has the ticket:

“Cram them full of noncombustible data, chock them so damned full of ‘facts’ they feel stuffed, but absolutely `brilliant’ with information. Then they’ll feel they’re thinking, they’ll get a sense of motion without moving.” 

Today, millions listen daily to reports of case counts of Covid-19. Like Bradbury predicted, listeners can recite the numbers but have no context to make sense of the numbers. Many have little idea that important scientists and doctors have advocated alternatives to lockdowns that could save lives and abate catastrophic impacts on economies. As in Bradbury’s world, many are working tirelessly to disparage and censor alternative views

After Montag questions his role as a book burner, he recites Dover Beach by Matthew Arnold to neighbors. His neighbors were shocked at the feelings the poem provoked. One cries out, “Silly words, silly words, silly awful hurting words… Why do people want to hurt people? Not enough hurt in the world, you’ve got to tease people with stuff like that!”

Incredibly, Bradbury anticipated today’s social climate where people claim censorship is justified because someone hurt their feelings.

Beatty explains a dominant social norm justifying censorship: Do not offend minorities. Bradbury is clear; “minorities” meant practically everyone:

“Don’t step on the toes of the dog-lovers, the cat-lovers, doctors, lawyers, merchants, chiefs, Mormons, Baptists, Unitarians, second-generation Chinese, Swedes, Italians, Germans, Texans, Brooklynites, Irishmen, people from Oregon or Mexico.”

Pretending you can “stay happy all the time” was another social norm driving popular demand for censorship in Fahrenheit 451. Beatty explains,  

“[Censorship] didn’t come from the Government down. There was no dictum, no declaration, no censorship, to start with, no! Technology, mass exploitation, and minority pressure carried the trick, thank God. Today, thanks to them, you can stay happy all the time, you are allowed to read comics, the good old confessions, or trade journals.”

In Bradbury’s dystopia, to consider conflicting theories makes for unhappiness, so Beatty lauds the fireman’s mission and justifies censorship:

“The important thing for you to remember, Montag, is we’re the Happiness Boys, the Dixie Duo, you and I and the others. We stand against the small tide of those who want to make everyone unhappy with conflicting theory and thought. We have our fingers in the dyke. Hold steady. Don’t let the torrent of melancholy and dreary philosophy drown our world. We depend on you. I don’t think you realize how important you are, we are, to our happy world as it stands now.”

In Bradbury’s future, intellectuals came under scrutiny when ideas conflicted. The word “intellectual” became a “swear word.” The public dreaded “the unfamiliar” and disdained a world where merit mattered. Again, Bradbury has Beatty explain the mindset behind such thinking: 

We must all be alike. Not everyone born free and equal, as the Constitution says, but everyone made equal. Each man the image of every other; then all are happy, for there are no mountains to make them cower, to judge themselves against. So! A book is a loaded gun in the house next door. Burn it. Take the shot from the weapon. Breach man’s mind. Who knows who might be the target of the well read man?” 

In Bradbury’s dystopia, thinking was not welcome. Even front porches were eliminated. One of Montag’s young neighbors explained why:

“People sat there sometimes at night, talking when they wanted to talk, rocking, and not talking when they didn’t want to talk. Sometimes they just sat there and thought about things, turned things over… they didn’t want people sitting like that, doing nothing, rocking, talking; that was the wrong kind of social life. People talked too much. And they had time to think.” 

Social distancing is today embraced as a way to keep us safe from Covid-19. Social distancing also keeps us safe from “conflicting theories and thoughts.” Chairs have been removed from social gathering places. Hallways are quiet. Nobody stands around the water cooler. People have few places to talk with each other. The parallel to porches is haunting. 

Perhaps you are sensing a shift in social norms undermining parental rights and the sanctity of the family. Bradbury foresaw a push for government-funded pre-school. Captain Beatty explains, “The home environment can undo a lot you try to do at school. That’s why we’ve lowered the kindergarten age year after year until now we’re almost snatching them from the cradle.”

Bradbury also anticipated today’s justification of looting. Some claim that rioters are merely damaging property, not people. Before he began to see the evil he was part of, Montag eased his conscience with this similar line of thinking: “You weren’t hurting anyone, you were hurting only things! And since things really couldn’t be hurt, since things felt nothing, and things don’t scream or whimper.”

Warning his readers of policies shaped by the majority, Bradbury writes, “The most dangerous enemy of truth and freedom, the solid unmoving cattle of the majority. Oh, God, the terrible tyranny of the majority.” Today, politicians claim the right to destroy freedom when they get a majority vote of the people. This dangerous reasoning is antithetical to the founding principles of this country. 

We can take a lesson from Bradbury’s character Professor Faber, who recognized the consequences of his own self-censorship:

“I saw the way things were going, a long time back. I said nothing. I’m one of the innocents who could have spoken up and out when no one would listen to the `guilty,’ but I did not speak and thus became guilty myself.”  

How ironic that today, claiming they are “woke,” progressives clamor for tyranny and censorship. In Bradbury’s world the “woke” saw through the lies of tyranny and censorship. Bradbury would exhort us to avoid expediency and speak out to prevent the worst.

In his novel, Bradbury didn’t take a deep dive into the psychology of saying nothing. My recent essay on mask mandates by businesses provoked a strong response. Many were sympathetic to my point that businesses respond to consumer demand. Yet, some believe that business policy is being shaped by a small but frightened and very vocal minority who complain loudly to managers about customers not wearing a mask. 

Going against the vocal herd takes courage. In his book The Heart Aroused, poet David Whyte, who works with businesses on organizational change issues, shares a universal story: 

“A man I know finds himself in a meeting room at the very edge of speech; he is approaching his moment of reckoning, he is looking for support from his fellow executives around the table … the CEO is pacing up and down on the slate gray carpet. He has asked, in no uncertain terms, for their opinion of the plan he wants to put through. ‘I want to know what you all think about this,’ he demands, ‘on a scale of one to ten.’” 

Whyte explains the CEO made it plain he wanted to hear “ten.” Whyte’s friend thinks the plan is terrible, and rumors are that other executives feel the same. As the CEO goes around the room, Whyte’s friend hears his colleague, one by one, say “ten.” When it is his turn, “against everything he believes, (Whyte’s friend) hears a mouselike, faraway voice, his own, saying ‘ten.’”

According to Elisabeth Noelle-Neumann’s theory of the spiral of silence, “our willingness to express an opinion is a direct result of how popular or unpopular we perceive it to be.” When we believe our belief is popular, we will make a point of signaling that we are part of the herd. Like Whyte’s friend, we will avoid expressing our point of view when we sense it will be unpopular.

If you think the public is empowered by social media to express unpopular views, you would be mistaken. As in Fahrenheit 451, people censor themselves first, even before Facebook and Twitter add their own censorship. 

In 2014, the Pew Research Center surveyed the public about their willingness to freely express their views about the 2013 Edward Snowden revelations. The survey revealed that “people were less willing to discuss the Snowden-NSA story on social media than they were in person.” Social media was not an outlet for those concerned about expressing an unpopular view. 

Consistent with the “spiral of silence” theory and compatible with Bradbury’s dystopian future, no matter what the setting, people are reluctant to share an unpopular view. A 2020 Cato survey found 62% “of Americans say the political climate these days prevents them from saying things they believe because others might find them offensive.”

Today, how many say nothing to their neighbors and colleagues about Covid-19 policies for fear of being accused of not valuing human lives? In Fahrenheit 451, silence helped pave the way for the public’s embrace of tyranny. In 2020, Fahrenheit 451 is far more than a chilling, cautionary tale. To reverse the spiral of silence we must make space for candid conversations by thoughtfully considering alternative viewpoints.

via ZeroHedge News https://ift.tt/3jmsdPc Tyler Durden

Ukraine Probes Likely Murder Of US Embassy Staffer In Kiev Park

Ukraine Probes Likely Murder Of US Embassy Staffer In Kiev Park

Tyler Durden

Wed, 09/30/2020 – 23:00

Ukrainian authorities are investigating the shocking and mysterious death of a US Embassy employee on Wednesday

So far all that is known is that a woman was found lying unconscious near railroad tracks in a park near the city center, apparently the victim of a brutal attack, given she had a head injury, according to Reuters.

She succumbed to her wounds at a nearby hospital, after which investigators found her ID, indicating she was employed by the US embassy in the Ukrainian capital of Kiev. The US Embassy-Kyiv subsequently confirmed an American member of its staff has died under unknown circumstances.

US Embassy in Kiev file image, via Kyiv Post/Ukrafoto

A criminal investigation is underway, according to Interior Ministry spokesman Artem Shevchenko, who issued a statement in English saying it “may be a crime”. He followed with: “But may be an accident too. Body was found on railway in earphones during the jogging.”

“The unconscious woman was admitted to a hospital where she subsequently died. During the examination of the victim’s belongings, an identity card of an employee of the U.S. Embassy in her name was found,” Ukrainian police said.

Police say the investigation is focused on suspected murder and that they are seeking a suspect based on possible eyewitness accounts, described as follows:

Police are looking for a dark-haired man of 30-40, dressed in dark shorts and a T-shirt. 

Within hours after the news breaking, the US Embassy-Kyiv issued confirmation.

Central Kiev, via iStock

Little is known as to the identify of the woman, other than she was an American citizen. American embassies abroad also typically employ dozens of local workers within the host country, but the confirmation suggests she could be US diplomatic personnel, or part of another high level agency.

“We are heartbroken to report the death of an American member of the U.S. Embassy Kyiv community,” an official US Embassy statement said. “Officials from U.S. Embassy Kyiv are currently working with authorities to determine the circumstances of the death.”

US embassies also host a multitude of federal agencies, some in covert or clandestine capacities. Though the majority of personnel are State Dept. Foreign Service, such as diplomats, usually CIA and others like the Defense Intelligence Agency (the DoD’s civilian intelligence arm that works closely with the Pentagon) also operate out of foreign embassies.

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Escobar: China Deploys Sun Tzu To Prevail In The Chip War

Escobar: China Deploys Sun Tzu To Prevail In The Chip War

Tyler Durden

Wed, 09/30/2020 – 22:40

Authored by Pepe Escobar via The Saker blog, originally posted at The Asia Times,

Beijing has a plan to become the indispensable tech core of East Asia, linking ASEAN, Northeast Asia and even both Koreas…

Let’s cut to the chase: with or without a sanction juggernaut, China simply won’t be expelled from the global semiconductor market.

The real amount of chip supply Huawei has in stock for their smart phone business may remain an open question.

But the most important point is that in the next few years – remember Made in China 2025 remains in effect – the Chinese will be manufacturing the necessary equipment to produce 5 nm chips of equivalent or even better quality than what’s coming from Taiwan, South Korea and Japan.

Conversations with IT experts from Russia, ASEAN and Huawei reveal the basic contours of the road map ahead.

They explain that what could be described as a limitation of quantum physics is preventing a steady move from 5nm to 3nm chips. This means that the next breakthroughs may come from other semiconductor materials and techniques. So China, in this aspect, is practically at the same level of research as Taiwan, South Korea and Japan.

Additionally, there is no knowledge gap – or a communication problem – between Chinese and Taiwanese engineers. And the predominant modus operandi remains the revolving door.

China’s breakthroughs involve a crucial switch from silicon to carbon. Chinese research is totally invested in it, and is nearly ready to transpose their lab work into industrial production.

In parallel, the Chinese are updating the US-privileged photo-lithography procedure to get nanometer chips to a new, non-photo lithography procedure capable of producing smaller and cheaper chips.

As much as Chinese companies, moving forward, will be buying every possible stage of chip manufacturing business in sight, whatever the cost, this will proceed in parallel to top US semiconductor firms like Qualcomm going no holds barred to skirt sanctions and continue to supply chips to Huawei. That’s already the case with Intel and AMD.

Huawei’s game

Huawei for its part is investing deeply in a very close R&D relationship with Russia, recruiting some of their best tech talent, notoriously strong in math, physics and rigorous design work. An example is Huawei’s purchasing of Russian face recognition company Vocord in 2019.

Some of the best tech brainpower in South Korea happens to be Russian.

Huawei has also established a “5G ecosystem innovation center” in Thailand – the first of its type in ASEAN.

In the medium term, Huawei’s strategy for their top notch smart phones – which use 7nm chips – will be to hand over the business to other Chinese players such as Xiaomi, OPPO and VIVO, collect patent fees, and wait for the inevitable Chinese chip breakthrough while keeping production of 5G equipment, for which it has sufficient chips.

Huawei’s Harmony OS is considered by these IT experts to be a more efficient system than Android. And it runs on less demanding chips.

With the expansion of 5G, most of the work on smart phones can be handled by cloud servers. By the end of 2020, at least 300 cities across China will be covered by 5G.

Huawei will be concentrating on producing desktop computers and digital displays. These desktops will come with a Chinese processor, the Kunpeng 920, and run by a Chinese Unified Operating System (UOS).

UOS is a Linux system developed by China’s Union Tech and commissioned by Beijing to – here’s the clincher – replace Microsoft Windows. These desktops will not be sold to the general public: they will be equipping China’s provincial and national administrations.

It’s no wonder a steady rumor in IT circles is that the best bet ahead would be to put money in a Chinese Chip Investment Fund – expecting to collect big time when major tech breakthroughs happen before 2025.

The East Asian tech core

Whatever the trials and tribulations of the chip war, the inescapable trend ahead is China positioned as the indispensable tech core of East Asia – encompassing ASEAN, Northeast Asia, and Eastern Siberia linked to both Koreas.

This is the hard node of the incoming Regional Comprehensive Economic Partnership (RCEP) – the biggest free trade deal in the world – which is bound to be signed by 2021.

India has opted for self-exclusion from RCEP – which in geoeconomic terms condemns it to a peripheral role as an economic power. Compare it to South Korea, which is boosting its integration with ASEAN and Northeast Asia.

East Asia’s tech core will be at the heart of a global production chain integrating the very best in science and technology conception and the very best production specialists scattered around all nodes of the global supply chain.

That’s a natural consequence, among other factors, of East Asia introducing patent applications at a multiple of 3.46 times the US.

And that brings to the very special Samsung case. Samsung is increasing its R&D drive to in fact bypass US-branded technologies as soon as possible.

When South Korea’s President Moon turbo-charges his appeal for the official end of the Korean War that should be seen in tandem with Samsung eventually reaching a wide-ranging tech cooperation deal with Huawei.

This pincer movement graphically spells out South Korean independence from the American bear hug.

It does not escape the Beijing leadership’s attention that the emergence of South Korea as a stronger and stronger geopolitical and geoeconomic actor in East Asia must be inextricably linked to access by China to the next generation of chips.

So a crucial geopolitical and geoeconomic process to watch in the next few years is how Beijing progressively attracts Seoul to its area of influence as a sort of high-tech tributary power while banking on the future of what would be a Korea Federation.

This is something that has been discussed every year, at the highest level, at the Eastern Economic Forum in Vladivostok.

Wang Huiyao of the Beijing-based Center for China and Globalization notes how China and South Korea already have a free trade agreement and “will start the second phase of negotiations to establish a new mechanism for China-South Korea economic cooperation, which is developing fast.”

The next – immensely difficult – step will be to set up a China-Japan free trade mechanism. And then a closer, interconnected China-Japan-South Korea mechanism. RCEP is just the first step. It will be a long sail all the way to 2049. But everyone knows which way the wind is blowin’.

via ZeroHedge News https://ift.tt/2GhwDs2 Tyler Durden

More Than 500 JPMorgan Employees Inexplicably Got Emergency Virus Relief Funds

More Than 500 JPMorgan Employees Inexplicably Got Emergency Virus Relief Funds

Tyler Durden

Wed, 09/30/2020 – 22:20

Three weeks ago, when we first reported that JPMorgan – the bank that this week was slammed with a record settlement of nearly $1 billion when it admitted it had manipulated and spoofed the gold and Treasury markets – was probing its employees’ role in abuse of PPP funds following reports of “instances in which Covid-relief funds were misused by customers and is probing employees’ involvement in the potentially illegal activities”, we said that it was about time the role of banks was put under the microscope because ” while it was easy to blame the administration for rushing to hand out hundreds of billions in grants/loans (without which the US economy would still be in a depression), a key question is how and why did the private banks that were gatekeepers for all this capital, allow such abuse to take place.

A few days later, we also found out that not only did JPM employees allegedly enable fraud by clients when obtaining PPP loans, the largest US bank also found that some of its employees themselves “improperly applied for and received”, i.e. stole, Covid-relief money that was intended for legitimate U.S. businesses hurt by the pandemic.

The bank discovered the actions, which were tied to the Economic Injury Disaster Loan program, “after noticing that suspicious amounts of money had been deposited into checking accounts owned by bank employees.” The findings prompted an unusual all-staff message from JPMorgan Tuesday which according to Bloomberg “puzzled many across the industry for its candid admission of potentially illegal acts by some of its own while not describing what they had done.”

At the time, JPMorgan sent a memo to its roughly 256,000 employees in which senior leaders said they had seen “instances of customers misusing Paycheck Protection Program Loans, unemployment benefits and other government programs” and that some employees had fallen short on ethical standards, too.

JPMorgan tried to mitigate this discovery by claiming that only a handful of its employees were abusing the program.

Well, fast forward to today, when we learn that more than 500 JPMorgan employees got assistance from taxpayers aimed at helping businesses through the pandemic “and dozens of them shouldn’t have”, according to Bloomberg.

The discovery that so many people at the largest and most profitable U.S. bank had tapped the Economic Injury Disaster Loan program raised suspicions inside the company and set off a hasty probe, the full extent of which hasn’t been previously reported.

Upon discovering that “hundreds of employees” – clearly not the brightest ones as they used checking accounts operated by their employer into which they deposited funds meant for struggling Americans – had received government funds in their accounts, JPMorgan “began scrutinizing director-level employees and workers who received certain amounts.” Of almost two dozen in that first group, the bank found that at least five – none of them director-level employees – had improperly tapped the program, one of the people said. We say at least because every update on this issue reveals that more and more employees had illegally tapped the taxpayer-funded program.

Amusingly, the bank concluded that of the hundreds of deposits many were “probably” legitimate – providing funds, for example, to side businesses run on workers’ own time, although how a JPM banker would have a “side” business that suddenly needs emergency funding is probably left best for the upcoming Congressional hearings.

JPM’s findings of illegal employee activity come amid a broader sweep of individual accounts that received business aid. On July 22, the SBA warned banks to be on the lookout for suspicious deposits or activity as part of the EIDL program. The SBA’s inspector general has also flagged evidence of fraud in the program, saying it identified more than $250 million in aid given to potentially ineligible recipients as well as $45.6 million in possibly duplicate payments. A Bloomberg analysis of SBA data last month identified $1.3 billion in suspicious payments.

As a result, prosecutors have brought charges against more than 20 businesses for fraud under the CARES Act, which authorized the PPP loan program, and a recent report by the House Committee on Oversight suggested that there could have been billions of dollars worth of fraud in the PPP program. Rep. James Clyburn, a Democrat from South Carolina, called on the inspectors general of the U.S. Treasury Department and SBA to investigate the program.

“The SBA does not comment on individual borrowers. Evidence of waste, fraud, and abuse with any of SBA’s loan programs is not tolerated and should be reported. … The SBA successfully distributed 5.21 million loans and $525 billion to small businesses in an unprecedented amount of time, through the Paycheck Payment Program,” the SBA said, misstating the name of the Paycheck Protection Program.

“This is going to be the biggest fraud in government history, the magnitude of which we will not know for many years to come,” said Vic Hartman, a former FBI agent and author of a 2019 book about fraud based on lessons from his career.

In retrospect, it’s most surprising that only 500 JPMorgan bankers were involved.

 

via ZeroHedge News https://ift.tt/30mlwVz Tyler Durden

Face Masks Are The Mob’s “Dumbo’s Feather”

Face Masks Are The Mob’s “Dumbo’s Feather”

Tyler Durden

Wed, 09/30/2020 – 22:00

Authored by Jeff Harris via The Ron Paul Institute for Peace & Prosperity,

I remember watching Walt Disney’s film Dumbo’s Feather as a kid. Released in 1941 the story is about a cute baby elephant born with huge ears and forced to perform as a Circus clown. Dumbo is befriended by a mouse who confidently proclaims Dumbo can use his big ears to fly if he will only hold a magic feather in his trunk.

Leaping off the high-dive platform with his magic feather Dumbo indeed flies! But he soon discovers the feather isn’t magic at all because he could fly without it.

So what does this have to do with the mobs obedient wearing of face mask to ward off the “deadly” Covid virus? You know, that deadly virus that is so incredibly virulent that according to the CDC 99.8% of those exposed to it survive

It’s true, I’m not a psychiatrist, I don’t even play one on TV. I’m throwing this out there as a kind of thought experiment for your consideration. The mask mandates have been in force for about six months. Instead of giving ostensibly “free” people the option of choosing to wear face mask of their own volition (as in Sweden) the politicians totally ignored citizen’s rights and ordered lockdowns, social distancing, sheltering in place, and the public humiliation of worthless face masks.

Now you don’t have to be a psychiatrist to simply observe the behavior of the masses. At least in my neck of the woods virtually everyone in public places is obediently wearing a face mask. We were initially told this was to “flatten the curve” and would only be necessary for a few weeks.

But somehow, those few weeks have been extended and extended by power mad governors and mayors into six long months. Interestingly the CDC, WHO and other “experts” proclaimed people shouldn’t wear face masks early on, but then bizarrely changed their minds all of a sudden?

Back to Dumbo

So what does this have to do with Dumbo’s Feather? Well think about it. Human beings are a superstitious lot and made more so when the mainstream media pumps 24/7 fear porn about an invisible “deadly virus” that is all around us! “Millions will die if they don’t obey the expert’s guidance!”

It stands to reason that for many people who’ve obediently worn their face masks and haven’t gotten sick, they could easily assume the mask is their “magic feather” that’s protecting them and saving their very lives! “See, I’ve been wearing my mask and haven’t gotten sick; it must work!”

Just like a lucky rabbit’s foot, or a four leaf clover tucked in one’s pocket, I suspect face masks have become a psychological crutch for the masses. This is psychological terrorism by government criminals! Human’s forced to endure extended traumatic experiences are much easier to manage as was discovered by government scientist back in the 1950’s and 60’s.

Omnipresent, debilitating fear is the primary tool governments use to control the masses. The mask is a highly valuable tool in the fear arsenal as it’s a ubiquitous, visual reminder that death lurks all around us! “Don’t take any chances, wear your mask, obey the rules, do what you’re told and everything will be OK.”

That’s the message. After all, these government folks are only interested in what’s best for us, right? Well no, they do NOT have our best interests at heart, only their power, control and the wealth they can wring out of us.

H. L. Mencken, the witty American Journalist hit the nail on the head over half a century ago:

“The whole aim of practical politics is to keep the populace alarmed – and hence clamorous to be led to safety – by menacing it with an endless series of hobgoblins, all of them imaginary.”

I suspect that even if by some miracle the “authorities” suddenly announced Covid was contained and we could return to normal life, millions would willingly continue wearing their mask. When humans have been deeply traumatized by fear of an untimely death they don’t get over it quickly.

The scars are deep and for many will never heal. How ironic that the mask is not only a visual cue to remain fearful but also a beacon of hope for those who equate it with their avoiding illness to date; their magic Dumbo’s Feather.

In a free country one gets to choose for themselves if they want to wear a mask, stay home, stop working, quit attending church or take baths in bleach water for that matter! So is the USA a free country; I think not! I will not comply!

via ZeroHedge News https://ift.tt/3jm66rZ Tyler Durden

Coinbase Has A New Plan For Dealing With Office SJWs: Pay Them To Leave

Coinbase Has A New Plan For Dealing With Office SJWs: Pay Them To Leave

Tyler Durden

Wed, 09/30/2020 – 21:40

The CEO of Coinbase, Brian Armstrong, has devised an interesting strategy for getting rid of crusading SJW employees, like the rebellious workers creating headaches for Facebook CEO Mark Zuckerberg for not being “woke” enough.

Pay them to leave.

Citing an internal email to employees, CNBC’s Kate Rooney reports that Armstrong offered employees severance packages of 4-6 months if they felt uncomfortable with the company’s policy of political neutrality in the workplace. In the note, Armstrong cited “internal strife” at companies like Facebook and Alphabet as a threat to “value” at Coinbase.

“While I think these efforts are well-intentioned, they have the potential to destroy a lot of value at most companies, both by being a distraction, and by creating internal division,” Armstrong said.

The announcement comes after Armstrong clarified the company’s stance on office activism, saying that he preferred employees left political discussions and activities to their off-hours.

For anybody who absolutely can’t tolerate this arrangement (or simply wants a few months of free pay, at the cost of losing their job in the middle of an economic downturn) the company is offering severance packages, so that anyone “who doesn’t feel comfortable with this new direction” can simply leave.

Pay packages will range between 4 to 6 months, depending on seniority of the employee. That’s not bad, but not great, as far as Silicon Valley exit packages go. But it’s certainly enough to last a skilled engineer until they land a new gig.

He finished with a positive spin: “Life is too short to work at a company that you aren’t excited about,” Armstrong said in the email, which was previously reported by The Block. “Hopefully this package helps create a win-win outcome for those who choose to opt out.”

As CNBC pointed out, the approach stands in stark contrast to the prevailing sentiment in Silicon Valley, which is to encourage employees to speak their mind, even when it might endanger the company’s bottom line.

Will Coinbase’s policy catch on? Or will they need to follow Peter Thiel and (maybe) Elon Musk out of the Bay Area.

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

Teaching Seila Law v. CFPB

Today I taught Seila Law v. CFPB for the first time. Teaching a case helps bring the opinion’s reasoning into focus. In class, I am less concerned with whether the case is correct as an original matter. Rather, my focus is on helping my students understand the decision. This was a tough case to teach. The Chief rewrote modern removal power jurisprudence. Indeed, he surgically sliced it into four categories. And he didn’t even admit what he was going. (Kagan’s dissent is devastating on this point). As a normative matter, I like Roberts’s framework. But he did not acknowledge, even for a moment, how he was departing from precedent.

There are four relevant precedents that concern Congress’s power to impose tenure protections: U.S. v. Meyers, Humphrey’s Executor v. U.S.Morrison v. Olson, and Seila Law v. CFPB. I think modern doctrine now follows these four categories:

  1. For tenure protections of “purely executive” principal officers, follow Chief Justice Taft’s framework from Meyers. In this category, for-cause tenure protections are unconstitutional. The President has an “unrestrictable power . . . to remove purely executive officers.”
  2. For tenure protections of “quasi-legislative” and “qausi-judicial” principal officers on multi-member boards, follow Humphrey’s Executor. In this category, for-cause tenure protections are constitutional. The FTC commissioners fall into this category.
  3. For tenure protections of inferior officers, follow Morrison v. Olson. In this category, for-cause tenure protections are constitutional, unless they “unduly interfere with the functioning of the Executive Branch.” Morrison itself did not limit this test to inferior officers. But the Chief added this restriction.
  4. For tenure protections of “quasi-legislative”/”quasi-judicial” principal officers who are not on multi-member boards, do not follow Humphrey’s Executor. Rather, under Seila Law, you follow the Meyers standard–even though Humphrey’s limited Meyers to “purely executive” principal officers. In other words, Seila Law overruled Humphrey’s limitation on Meyers. But don’t tell the Chief! Roberts wrote that “Humphrey’s Executor reaffirmed the core holding of Myers.” The single CFPB director falls into this fourth category.

Does this sound right? Please email me with any corrections.

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