Month: July 2021

The creator of the revisionist (and highly inaccurate) ‘1619 project,’ Nikole Hannah-Jones, has rejected an offer to serve as the chair of the University of North Carolina journalism department, and will instead take a similar position at Howard University, she told CBS on Tuesday.

Jones had originally been offered a contract position by UNC for what has traditionally been a tenured role, after a board member challenged her for not having a ‘traditional academic background,’ which led to a massive backlash that eventually caused the college to reverse course – voting 9-4 to accept her application last week.

“It’s a very difficult decision, not one I wanted to make,” Jones told CBS host Gayle King, adding “To be denied it (tenure) to only have that vote occur on the last possible day, at the last possible moment, after threat of legal action, after weeks of protest, after it became a national scandal, it’s just not something that I want anymore.“

JUST IN: Award-winning journalist @nhannahjones reveals on @CBSThisMorning she has declined the University of North Carolina’s offer for tenure and will be the inaugural Knight Chair in Race and Reporting at @HowardU. pic.twitter.com/w9j0gVe0cd

— CBS This Morning (@CBSThisMorning) July 6, 2021

UNC’s initial refusal to offer Jones a tenured position sparked outrage among black students. Meanwhile, faculty at the college’s Hussman School of Journalism and Media on Tuesday said they were ‘disappointed, but not surprised’ at Jones’ decision.

As the Daily Mail notes:

Hannah-Jones’ attorneys announced in late June that she would not report for work without tenure.

Earlier this year, Hannah-Jones’ tenure application was halted because she did not come from a ‘traditional academic-type background,’ and trustee Charles Duckett, who vets lifetime appointments, wanted more time to consider her qualifications, university leaders had said. 

When the vote was taken Wednesday, Duckett voted to approve her tenure application. 

Jones won a Pulitzer Price for the New York Times Magazine‘s 1619 project – for which the paper has issued major corrections – seeks to portray America as a fundamentally racist nation founded for the sole reason of oppressing black people (The Federalist). She claims that the desire to maintain a system of slavery was held by “all of” the colonists who fought in the Revolutionary War – claims which The Times was forced to retract – revising it to “some of” the colonists.

Meanwhile, historians have called out the 1619 project for other inaccuracies.

While embroiled in disputes with respected historians about the project’s historical inaccuracies, the corporate media outlet also quietly omitted the controversial “founding” claim “understanding 1619 as our true founding” from the description of the project sometime after August 2019. At the time of this revision’s discovery, Hannah-Jones tried to defend her comments as rhetorical without acknowledging the long list of previous instances where she made the same exact claim that America’s “true founding” occurred in 1619 when the first African slaves arrived in Virginia, as opposed to 1776. -The Federalist

In short – a race baiting revisionist is now going to inspire the hearts and minds of black journalists at Howard University, instead of mostly white journalists at UNC.

Iranian state media is reporting that a severe explosion has rocked an oil field in the western Ilam province which borders Iraq on Tuesday afternoon identified as the Cheshmeh Khosh field.

English language Mehr News cites “reports coming in saying that two people have been killed while another is injured” and featured a photo showing a massive fireball rising above the facility. Bloomberg subsequently cited local reports which updated to “Three oil workers killed and four injured in explosion on pipeline that transfers oil from the Cheshmeh Khosh field.”

It’s a relatively small field, with official sources estimating an average of 18,000 barrels per day of crude oil production capacity.

Iran’s oil producing regions have been known to experience occasional serious accidents and fires, but with the final rounds of nuclear negotiations happening in Vienna, and with Israel being behind past ‘sabotage’ incidents, naturally there remains the possibility of attack.

The new Tuesday incident comes after yesterday a large mysterious fire was reported outside Tehran.

“A large fire was reported at a warehouse or factory next to a highway near Tehran on Monday afternoon, with the purpose of the warehouse and the background of the incident as of yet unclear,” The Jerusalem Post reported.

I have received this image from someone who claims the photo is for today’s fire at Shahid Sani Khani (SSK), taken by the sender himself. (the image has not geolocation info & i am not in a position to verify its authenticity). pic.twitter.com/WSkEKDybha

— Farhad Rezaei (@Farhadrezaeii) July 5, 2021

“The IRGC-affiliated Tasnim News Agency reported that the fire was near Karaj, the city where an alleged attack targeted a nuclear facility reportedly used to produce centrifuges.”

developing…

Authored by Paul Joseph Watson via Summit News,

CNN hosts Brian Stelter and Oliver Darcy asserted that “Tucker Carlson is the new Alex Jones” during Stelter’s show after they played clips where Carlson’s rhetoric was similar to Jones’ on several different issues.

After Stelter asked Darcy about the comparison, Darcy remarked, “Tucker Carlson is the new Alex Jones – if you watch Tucker Carlson’s program and you watch Alex Jones’ program – they might differ a little bit in antics and the way they deliver their message, but that message to viewers is consistent and it’s pretty identical.”

Darcy went on to claim that Carlson mirrored Jones in pushing “vaccine conspiracy theories, false flag conspiracy theories, deep state conspiracy theories.”

Stelter then pressed Darcy on whether Jones and Carlson were close friends after playing a clip where Jones said he would let Tucker tackle an issue first on his show.

“Are these two guys in cahoots? Are they friends, do they communicate…are they bros, what do we know about their relationship?” asked Stelter.

Tucker Carlson is Alex Jones. pic.twitter.com/W2xIMHhQI1

— Oliver Darcy (@oliverdarcy) July 4, 2021

“It does sound like they’re talking to each other,” responded Darcy, without explaining why in any way this would be an issue.

Darcy then complained that Tucker seemingly thinks Alex Jones voices ideas “that are legitimate and should be debated,” before labeling them “far right conspiracy theories.”

“I remember when Fox News and the Republican party mocked Alex Jones and said that guy is crazy, we’re not gonna touch that sort of stuff, but now, Fox’s face is effectively Alex Jones – the de facto leader of the Republican party is touting the same stuff that Jones touts on his show,” said Darcy.

Stelter then concluded the segment by attempting to dismiss Carlson’s claim that the NSA is spying on his emails.

Jones himself responded to the hit piece by pointing out that it is merely a ruse to amplify attempts to deplatform Tucker Carlson.

Stelter and Darcy were instrumental in lobbying for Jones to be censored when he was banned by multiple platforms back in 2018.

By asserting that Tucker Carlson is no different from Jones, CNN is hoping to pressure Fox News higher-ups and social media networks to drop the ban hammer on Carlson just like they did on Trump and Jones.

The agenda couldn’t be any clearer.

CNN has been hemorrhaging viewers since the start of the year, as experts warn of a “serious credibility problem” caused by the network’s fawning obsequiousness towards the Biden administration.

Fox News’ average viewership has been around double that of CNN during the second quarter, while Brian Stelter’s Reliable Sources show has lost a massive 56 per cent of its viewership since Biden took office.

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As stagflationary signals grow louder (after this morning’s ugly Services survey data), Treasury yields are plunging with 10Y back below 1.50% (testing the post-Fed/Bullad/Quad-Witch chaos puke lows)…

Source: Bloomberg

And 30Y yields have plunged back below 2.00%

Source: Bloomberg

And the pain may just be starting as JPMorgan’s latest Treasury survey showed the world is once again short bonds.

All of which doesn’t bode well for Small Caps (value) relative to Nasdaq (growth)…

Source: Bloomberg

As yields began to reverse so Growth has massively outperformed value…

Source: Bloomberg

After a mixed picture in Manufacturing surveys in June (PMI marginally higher, ISM marginally lower), and serially down-trending ‘hard’ data, this morning’s Services surveys show a serious and coordinated disappointment as ISM Servceis tumbled from 64.0 to 60.1 and Markit’s PMI dropped from 70.4 to 64.6…

Source: Bloomberg

Is it time to catch down to reality?

Source: Bloomberg

Most ISM components plunged.

The IHS Markit U.S. Composite PMI Output Index posted 63.7 in June, down from May’s recent high of 68.7. The overall upturn eased following slower output expansions across both the manufacturing and service sectors. Nonetheless, the rate of growth in activity was substantial and the second-fastest on record.

Contributing to the softer upturn in output was a slight moderation in the rate of new business growth during June.

At the same time, cost pressures remained marked in June. Further raw material shortages and hikes in supplier and fuel costs reportedly pushed input prices higher, according to panellists. The rate of cost inflation was the second-quickest on record. Firms passed on greater costs to clients via the secondsharpest increase in average selling prices for goods and services since data collection began in 2009.

Commenting on the latest survey results, Chris Williamson, Chief Business Economist at IHS Markit, said:

“June saw another month of impressive output growth across the manufacturing and services sectors of the US economy, rounding off the strongest quarterly expansion since data were first available in 2009.

“The rate of growth cooled compared to May’s record high, however, adding to signs that the economy’s recovery bounce peaked in the second quarter.

“Some of the easing in the rate of expansion reflects payback after especially strong expansions in prior months as the economy opened up from pandemic-related restrictions, especially in consumer-facing companies. However, many firms reported that business activity had been constrained either by shortages of supplies or difficulties filling vacancies. Backlogs of uncompleted orders are consequently rising at a rate unprecedented in the survey’s history, underscoring how demand is outstripping supply of both goods and services.

“These capacity constraints are not only stifling growth, but also driving prices sharply higher. June saw the second-steepest rise in average prices charged for goods and services in the survey’s 12-year history, though some encouragement can be gleaned from the rate of inflation easing in the service sector compared to May.”

All of which turns the “Stagflation” anxiety dial up to 11…

Source: Bloomberg

What are you going to do Mr.Powell?

By Michael Every of Rabobank

The Great Greek Gamble

Back in 2017, when the Fed was pressing ahead with its last hiking cycle under FOMC Chair Yellen, we referred to it as ‘The Great Gamble’: it could pay off handsomely; but if it failed, we would end up in a world where central banking was seen to have failed in the eyes of populists, and talk would be of fiscal policy, MMT, universal basic income, protectionism, and geopolitics. One global pandemic later, here we are; and yet markets are again focused on the next Fed hiking cycle, on even more fragile foundations, and with more ridiculous global liquidity to be removed. 

Except it’s not even true that the global pandemic is in the past. Yes, media have largely stopped putting it on the front pages: vaccinations are up; cases are down; deaths are sharply down; people are rightly frustrated and bored of reasonable and totally unreasonable restrictions for many good reasons; and the socio-economic damage has not even begun to be properly tallied. However, and very regrettably, it seems another great gamble is underway here too.

The vast majority of mankind has NOT been vaccinated. I am not talking about refuseniks in the West, but around 90% of global population – and not just in the poorest countries: Thailand and Indonesia are both being hit very hard by Covid at present, and both lag on the vaccine front. So is Australia, albeit in splendid isolation, and with intermittent lockdowns to prevent outbreaks. This leaves not only massive human suffering, but an equally-massive human ‘petri dish’ within which Covid can keep mutating, to what end we do not yet know. There are already suggestions the so-called Lambda variant from Latin America may be vaccine-resistant – and there are plenty of Greek letters left in the alphabet before we get to our Omega.

The two leaders in public vaccinations, the UK and Israel, are also both seeing an acceleration of growth in cases of the dangerous Delta variant. Israeli data suggests over 40% of those now seriously ill in its hospitals are aged over 60 and are fully vaccinated with Pfizer; and that the vaccine only offer 64% protection from all illness – though importantly the figure remains at 93% in terms of avoiding hospital and critical illness. Nonetheless, this is a step back from where we looked to be a few months ago: once again, the elderly and unhealthy *may* be vulnerable even if vaccinated, so trade-offs need to be made. Israel is now looking at reintroducing some of the virus controls it recently removed, while controls on international travel destinations remain.

By contrast, UK PM Johnson has announced that ‘Freedom Day’ to roll-back virus measures will go ahead on July 19 – despite the government stating virus case numbers could rise to 50,000 daily by that point, and BoJo admitting many deaths will follow; furthermore, international travel without quarantine for anyone who has been double-jabbed is on the cards. The strategy, if that is the right word given the track record so far, is again now to “live with it”; to open up for the summer…and keep fingers crossed this will not mean disaster in the autumn/winter. As the government’s own scientific advisors note, if a more pathogenic variant emerges when case numbers are high and have to be brought down “then restrictive measures would be required for much longer.”

So, a great gamble on Covid and rates. For markets, however, it’s all upside. Either the bet pays off and we open up -bullish!- or we can’t, and so get free liquidity forever – bullish! The risk of society and the economy freaking out if the virus comes back stronger and/or vaccine resistant is not being focused on; neither is that of the Fed hiking too much.

Yet markets have other high stakes too. China’s Caixin services PMI yesterday was a major downside surprise at 50.3 vs. 55.1 in May and the 54.9 expected. Consider that as Bloomberg publishes an article today (“When Will China Rule the World? Maybe Never”) echoing what we published back in 2017 on the risk of a new Cold War: there is no guarantee China’s economy will ever be larger than the US. Yes, China could overtake the US in nominal dollar terms by 2031; or it may level off as a permanent number two given its population is shrinking, its capital stock is already over-built/supplied, and its tech sector is likely to be increasingly isolated, hitting productivity. On which, are Americans going to continue to gamble with China tech IPOs after the latest state crackdown on Didi and two other tech platforms? And when the Wall Street Journal reports Chinese regulators had suggested that Didi executives delay the IPO “but Didi pushed ahead, under pressure to reward shareholders.”? Meanwhile, Facebook, Twitter, and Google warn they may halt operations in Hong Kong if proposed legislation is introduced that will make them directly responsible for any comments or content users might post/tweet/share.

Call this US-China gamble right and it will pay off handsomely: call it wrong and lose your stake.

Which is a nice segue to EU president – sorry, I mean French president Macron – and EU Chancellor Merkel -sorry, I mean German Chancellor Merkel (for another few months anyway)- holding another video chat with China’s Xi Jinping yesterday. The rest of the EU will be delighted at this latest Franco-German diplomatic outreach, especially the two EU presidents who squabble over sofas. The meeting saw a Chinese offer of high-level dialogue on trade, tech, and climate; of “fast track” personnel exchanges; a request for support for the Beijing winter Olympics; and a Quadrilateral (a new Quad!) offer for France and Germany (alone) to join China in developing infrastructure in Africa. M&M asked for more passenger flights to China and more open Chinese markets for EU firms. In short, M&M are being wooed; and both like being wooed because it feeds their “global strategic autonomy” dreams.

As the White House will note, this comes just weeks after France and Germany announced at the G7 that they would stand behind a US-led effort for a green, democratic “B3W” alternative to China’s Belt and Road. Ultimately M&M -and the EU if they get a voice- may still need to decide which strategic road to go down; or if they will just to do the catering for the rest of the world and have no real say on anything. That is also a truly great gamble – and from one leader who is shortly to be handed her chips.

Allow me to finish by tying all the above threads together via the following conclusion from an expert on green energy transitions – which the EU (and US) are so very big on:  

“…Governments need proactively to anticipate energy security risks surrounding market concentration, critical minerals and an increased reliance on electricity systems, including their vulnerability to cyber attack: in 2050, almost 50% of global energy would be used in the form of electricity, up from 20% in 2020. This will necessitate a huge increase in the production of lithium, cobalt, nickel, graphite, rare earths and copper, whose supplies must be secured by individual nations. As the mining or processing of these resources is concentrated in only a few countries, potential geopolitical problems seem almost inevitable.”

Or, just carry on as if they aren’t, Mr Market and Mrs Merkel: there’s a great gamble for you!

Another day, another big-tech buying-panic and small-cap puke…

And this tumble in small caps has erased all its gains relative to Nasdaq for the year…

As 10Y Yields tumbled back below 1.40%!

“Stagflationary” future pricing in.

Readers of Zero Hedge know that we have been tracking Elon Musk’s fading relationship with the Chinese Communist Party for the better part of the last 18 months. And while we can barely guess what the temperature of the ever-changing relationship is today, one thing seems to be certain: Musk and the Chinese government are growing closer. 

And for proof of that, look no further than a new Bloomberg Businessweek article profiling Elon Musk’s struggles in China. While the content of the article isn’t entirely new – our readers are likely very familiar with the story – one portion of the report was stunning: Musk, in true CCP form, reportedly asked the Chinese government to censor the company’s critics.

In speaking about how Tesla is trying to create relationships with journalists in China, Bloomberg buried the lede in dropping this bomb:

Previously focused on state-run media, Tesla is now trying to build relationships with auto-industry publications and influencers on platforms such as Weibo and WeChat, for example by inviting them on factory tours, and conducting group “discussion sessions” with policymakers, consumers, and media outlets. According to people familiar with the matter, it’s also complained to the government over what it sees as unwarranted attacks on social media, and asked Beijing to use its censorship powers to block some of the posts.

It appears to be more proof positive not only that Musk is working closely with the CCP, but also that Musk may be adopting their tactics for “holding the narrative together”. 

Recall, we were first, with the help of well-known short seller Montana Skeptic to ask in April of 2020 whether or not Musk risked becoming a Chinese asset, due to how much of a necessity China was becoming to Tesla’s business operations.

Things were mostly quiet until the beginning of 2021, when in January, Musk called the Chinese government “more responsible” to its citizens than the U.S. government. In March we noted how Musk continued to kiss the ass of the CCP, singing the praises of the country and its government. 

Then, in April 2021, a spat emerged between Musk and the CCP, supposedly after a protestor at the Shanghai Auto Show in April “went viral” after standing on top of a Tesla vehicle and decrying the car’s brakes. This led to intense shaming by Chinese media, who called Tesla’s handling of the situation a “blunder” and suggested it could “inflict serious damage” on Tesla with the Chinese market. 

Since then, we noted that the Chinese government still didn’t seem amused by Musk until May of this year, when Musk made a public about-face on Bitcoin and was then immediately praised by China’s state owned Global Times. In fact, the Global Times then published a piece stating that “work at Tesla’s Shanghai Gigafactory is going smoothly,” just days after it was reported that Tesla was halting its expansion in China, seen as key to its plans to export from its Asia headquarters. 

As of July, deliveries in China have picked back up and Musk is back to his old self, praising China, even in response to Chinese state-owned media:

In case anyone was wondering who is pulling the strings: https://t.co/9WAAkwI1PA

— Quoth the Raven (@QTRResearch) July 1, 2021

Recall, our initial April 2020 report on China and Musk referenced Montana Skeptic’s blog called “Tesla’s Transformation Into A Chinese Company Seems Unstoppable”, which sought to critically examine why the company’s Shanghai factory could be a negative for Tesla, how Tesla’s China operation could ultimately compete with Fremont and what the Chinese may ultimately gain from having Musk as an ally. 

The article first addressed the questions of:

• Who calls the shots at Tesla Shanghai?

• What are the interests of the Chinese leadership?

• Whom does the Shanghai factory actually benefit?

• How will Shanghai affect Tesla’s operations elsewhere?

• When will Tesla’s security filings reflect the economic reality?

And now it looks like the mainstream media is getting around to asking these very same questions. We can’t wait for the answers…