Canadian Supreme Court Lets Police Conduct Warrantless Cell Phone Searches of Arrestees

In
June 2014 the U.S. Supreme Court unanimously held that police
officers who search the cell phones of arrested individuals without
first obtaining a search warrant are in violation of the Fourth
Amendment. “Our answer to the question of what police must do
before searching a cell phone seized incident to an arrest is
accordingly simple,” declared Chief Justice John Roberts in
Riley v. California:
“get a warrant.”

The Canadian Supreme Court, by contrast, has decided to give its
country’s police officers much more room to maneuver. In a decision
handed down this week, Canada’s high court ruled that a warrantless
cell phone search incident to arrest is perfectly legitimate under
Canadian law. Sean Fine of Toronto’s Globe and Mail

has the story
:

In a crime ruling that earned it rare praise from the federal
government, the Supreme Court of Canada said police may search
cellphones without a warrant when they make an arrest.

Cellphones are the bread and butter of the drug trade, the
majority said in a 4-3 ruling. It said police have been given the
“extraordinary power” to do warrantless searches during an arrest,
under common-law rules developed by judges over centuries, because
of the importance of prompt police investigations. Until now, those
searches typically included purses and briefcases….

“Prompt access by law enforcement to the contents of a cellphone
may serve the purpose of identifying accomplices or locating and
preserving evidence that might otherwise be lost or destroyed,”
Justice Thomas Cromwell wrote for the majority, joined by Chief
Justice Beverley McLachlin and Justices Richard Wagner and Michael
Moldaver.

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Rider Aimed at Stopping Marijuana Legalization in Washington, D.C., Reflects Prohibitionist Weakness

The omnibus spending bill making its way through
Congress includes a provision that aims to keep marijuana illegal
in Washington, D.C., contrary to the wishes of the District’s
residents. In my latest Forbes column, I argue that
what looks like a victory for pot prohibitionists is actually a
sign of their weakness. Here is how the piece starts:

The omnibus spending bill that Congress is expected to
approve this week includes a rider aimed at blocking marijuana
legalization in Washington, D.C. Whether it actually will do that
is a matter of debate, and the way this provision was passed
suggests that pot prohibitionists are in a weaker position than
ever before.

The rider, introduced by Rep. Andy Harris (R-Md.), says
“none of the funds contained in this Act may be used to enact any
law, rule, or regulation to legalize or otherwise reduce penalties
associated with the possession, use, or distribution of any
schedule I substance.” House Appropriations Committee Chairman Hal
Rogers (R-Ky.), another ardent drug warrior, claims this
spending restriction “prohibits both federal and local funds
from being used to implement a referendum legalizing recreational
marijuana use in the District.” But that is not quite
accurate, since the rider refers to enactment, not
implementation.

By contrast, an earlier version of the Harris rider dealt with
spending to “enact or carry out” decriminalization or legalization
of any Schedule I drug. Eleanor Holmes Norton, the District of
Columbia’s congressional delegate, says that difference
could prove crucial, because Initiative 71, the D.C. ballot
measure legalizing marijuana possession, home cultivation, and
sharing, “was enacted when it was approved overwhelmingly by voters
in November.” The initiative’s elimination of penalties for
specified marijuana-related activities is “self-executing,” Norton
says, requiring no additional legislation by the D.C. Council or by
Congress. In other words, the event Harris seeks to prevent has
already happened.


Read the whole thing
.

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The GPIF Has A Warning For Japan’s Citizens: Abenomics Better Work, Or Your Pensions Are Toast

Once upon a time, the world’s biggest government pension fund, Japan’s $1.1 trillion Government Pension Investment Fund, or GPIF, was apolitical, and merely focused on preserving the people’s wealth.

Then everything changed, and with the reckless abandon of a junkie on a crack cocaine binge, aka Abenomics, the GPIF management was kicked out, and its entire mandate was flipped from preserving wealth, to gambling on #Ref! P/E stocks, in hopes of recreating the wealth effect of the super-rich (the only problem: Japan has reached its breaking point and the higher the USDJPY, and thus the Nikkei rises, the more the BOJ directly destroys its economy with an already record number of bankruptcies due to the plunging Yen getting recorder).

Worst of all, the GPIF became nothing short of the latest political pawn in what is now the the first failed Keynesian state, Japan.

Here is why this is bad. As the WSJ reports, “Japan’s $1.1 trillion government pension fund is betting that a long-term recovery and rising corporate profits will push Tokyo stock prices higher, helping the fund increase returns for the nation’s retirees.”

Mr. Abe has pushed for the fund to become a more aggressive and sophisticated investor. The fund decided in October to shift its portfolio to seek higher returns, slashing its target allocation to domestic bonds almost in half while nearly doubling that of domestic and foreign equities.

 

Mr. Mitani said the fund is still in the process of carrying out the changes and has a long way to go. Just under 50% of its total portfolio was in domestic bonds at the end of September, compared with its new target of 35%.

 

 

Expectations that Mr. Abe’s policies will succeed have already helped double Japan’s benchmark stock index since late 2012. Further gains would no doubt benefit GPIF’s ¥23.9 trillion ($202 billion) domestic stock portfolio.

Actually, no.

What has doubled Japan’s stock index is the collapse in the Yen. In Dollar terms the Nikkei is down for the year. Which means the only beneficiaries are those uber-rich ten or so percent who were long the Nikkei and hedged for a collapse in the Yen. For everyone else, such as the 90% of Japanese (including record number of retirement-age population) who do not participate in the market, Abenomics has so far been an absoutely epic and undisputed debacle, as confirmed not only by the soaring inflation of most products and services coupled with collapsing real wages now down for a record 16 consecutive months, but also by a misery index that is at generational highs.

Sadly, it has gotten so bad that with the BOJ at least on paper limited as to what it can buy sizewise (because the recent expansion to its QE has already been factored in by the market), means that the GPIF is now being used as a patsy that may or may not be buying more stocks in the market, just to keep the algo frontrunners at bay:

Mr. Mitani said the fund is still in the process of carrying out the changes and has a long way to go. Just under 50% of its total portfolio was in domestic bonds at the end of September, compared with its new target of 35%.

 

He declined to say whether it had already bought more stocks and foreign bonds. “I leave it up to you to imagine that,” he said.

Of course he will: after all the GPIF has more than filled its legal quotes of stock purchases by now. However, what he won’t leave to your imagination is what happens when this latest experiment in central planning fails:

“I have no doubt that the economy is in a recovery trend if you look at the long run,” GPIF President Takahiro Mitani said in an interview Friday.

Actually, no, it isn’t, unless you call a quadruple-dip recession a “recovery”.

Unfortunately, for Japan, and its tens of millions of pensioners, the only news here is simple: the entire country is now held hostage by Japan’s last-gasp attempt to prove Monetarist and Keynesian policies work. Because, said otherwise, “Abenomics better work, or else all your pensions are toast.

What happens when Abenomics inevitably fails, we leave to the civil war historians of the latter part of the 21st century.




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Oil Won’t Trade This Low Forever… And The Chinese Know It!

Barrels Oil

As we all know, the oil price has plummeted to a level we haven’t seen in more than five years and this will obviously have severe consequences for both the USA and the Eurozone as major economies. At the current oil price, a lot of the shale gas oil and gas producers are nearing the territory where they become unprofitable and might have to shut down their operations. This means that a lower oil price is both a curse and a blessing for the States. A lot of people might lose their jobs if some higher cost wells will have to be abandoned but on the other hand the lower oil price might be beneficial to other sectors of the American industrial economy.

The Federal Reserve isn’t worried yet as it said that it expects the low oil price to indeed fuel the further recovery of the American economy as the input costs will go down. The central bank expects its citizens to spend the extra money they will have at the end of the month instead of saving it. That’s an interesting thought as we would be extremely surprised to see a 1 on 1 trade-off whereby the entire amount of energy savings will be used to increase the consumption pattern. Additionally, a lower oil price will reduce the inflation rate and that might be a side effect which wouldn’t make the Federal Reserve happy as it plans to increase the benchmark interest rates from next year on.

William Dudley NY Fed

William Dudley, NY Fed. Source

The Fed is also shrugging off the jobs problem stating that for now it doesn’t think the drop in the oil price will intensify and there won’t be a near-term reduction in oil and gas investment in the USA. This might be a very optimistic point of view as several companies need a higher oil price than $65 per barrel to be viable and we wouldn’t be surprised to see quite a few job cuts in 2015 if the current oil price persists.

The impact of the low oil price is much more positive for the Eurozone as all Eurozone countries are net importers of oil. However, one cannot ignore the currency exchange rate factor (see next image). The oil price might have dropped by 40% in US Dollar, but the fall in the oil price was much less when looking at the oil price in Euro as the US Dollar continued to strengthen versus the Euro. The cheaper oil will obviously influence the inflation rate as well, and this might very well be Mario Draghi’s worst nightmare as he’s desperately trying to get the inflation rate up to its desired level of 2%. However, the falling oil price will also boost the GDP of the Eurozone and according to preliminary estimates the current drop will add roughly 0.3-0.4% to the GDP in the first year after the lowered oil price and will add approximately 0.8% over the first three years.

Oil Price Chart

Source

That’s obviously very encouraging as a higher economic growth rate might be much better for the public finances of the member states of the Eurozone as well as helping those countries to keep its Debt/GDP ratio under control. It looks like the Eurozone is gearing up for a positive perfect storm. A cheaper Euro will be good for the export of goods and services whilst the lower oil price will reduce the initial production cost of several export-related goods. If you throw the lower interest rates into the mix as well, you’d almost start to think the Eurozone might be ready to benefit tremendously from the low oil price.

Another country which is taking advantage of the oil price is China. The country has stated it wanted to more than double its strategic reserves of oil inside China, and we have heard several reports from inside the sector that China is effectively stepping up the plate and is buying huge amounts of crude oil at fire sale discounts. This is clearly visible in the charter rates of oil tankers which have increased exponentially.

Per Reuters Africa:


Average VLCC earnings on the Middle East-Japan route this
year are at the highest level since 2010, said Ralph
Leszczynski, head of research at Italian shipbroker Banchero
Costa.


 “Average earnings on the Middle East-Asia route so far in
2014 are $22,000 per day, against $32,000 per day in 2010. But
this is still way better than the last three years,” he told
Reuters on Friday

 

There’s a binary outcome for the current oil price. Either you panic or you try to see the advantage and opportunity of the low-cost oil. China is taking advantage of the situation and even the inflation-minded currency blocks like the USA and the Eurozone are seeing the advantages. Just like a falling gold price, a dropping oil price could be something to take advantage of during the tax loss selling season.

>>> Check Out Our Latest Gold Report!

Sprout Money offers a fresh look at investing. We analyze long lasting cycles, coupled with a collection of strategic investments and concrete tips for different types of assets. The methods and strategies from Sprout Money are transformed into the Gold & Silver Report and the Technology Report.

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All London Airspace Closed Due To Computer “Power Outage”

As Bloomberg reports,

  • *LONDON AIRSPACE AFFECTED BY COMPUTER FAILURE: EUROCONTROL
  • *HEATHROW SAYS FLIGHTS CURRENTLY EXPERIENCING DELAYS
  • *LUTON AIRPORT CITES POWER OUTAGE AT AIR TRAFFIC CONTROL CENTER

Heathrow has become a parking lot…

  • *EUROCONTROL WARNS OF “POTENTIALLY SEVERE” LONDON FLIGHT DELAYS
  • *ALL LONDON AIRSPACE CLOSED, EUROCONTROL SAYS

*  *  *

*  *  *

Is the BTFD computer too busy to handle air traffic control too?




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Ronald Bailey Challenges John Kerry’s Claim that Climate Change Is a Great Investment Opportunity

John KerryLima, Peru – Secretary of State
John Kerry jetted down today for the 20th Conference of
the Parties (COP-20) of the United Nations Framework Convention on
Climate Change (UNFCCC). In his climate change pep talk, Kerry
warned that unmitigated man-made global warming will lead to
“tragedy.” But looking on the bright side, the Secretary claimed
that “climate change presents one of the greatest economic
opportunities of all time on earth.” Kerry added that the trillion
dollar infotech boom of 1990s will pale in comparison with the six
trillion dollar cleantech boom that an ambitious climate agreement
in Paris would spark. If climate change is such a great investment
opportunity, Reason Science Correspondent Ronald Bailey
wonders why a vast complicated global treaty is necessary to force
people to participate?

View this article.

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Proudly introducing the newest superhero in town: the Bureaucrat Man

Bureaucrat Man Introduction Proudly introducing the newest superhero in town: the Bureaucrat Man

December 12, 2014
Santiago, Chile

In the Grand Bazaar in Istanbul during the Ottoman Empire it was a familiar site to see a muhtesib or “market inspector” making his way through the stalls.

They were in charge of making sure that everything in the marketplace adhered to state regulations.

Accompanied by some members of the police force, every day they went around, carefully inspecting the activities of each seller to ensure that they were complying with the rules.

If they weren’t in compliance, the muhtesib would set his police thugs on them.

From regulation on the production and distribution of goods, to building codes, and price controls, these average people had their every action controlled by the government.

It didn’t take long for the Ottoman Empire to lose its competitive edge under the weight of these massive bureaucratic burdens.

This has happened to dozens of formerly dominant empires throughout history. And it’s happening in the Land of the Free today.

We may not have the same traditional market square with the imposing presence of the muhtesib. But don’t be fooled, he’s there.

The Competitive Enterprise Institute estimates that the total cost of complying with America’s federal regulations last year was $1.86 trillion.

That’s about $15,000 per household, more than what the average household pays on food, clothing, or shelter each year.

And the number of regulations is rapidly rising.

You might be rather surprised to know that there are a whopping 10,610 bills and resolutions currently before the 113th United States Congress.

But it’s more than that.

What a lot of people don’t realize is that executive agencies have their own ‘rule making’ authority.

Every single business day, in fact, dozens of new rules and regulations are proposed, almost none of which ever become public.

Just today alone, the current issue of the US government’s daily journal of rules (called the Federal Register) is 214 pages. And that’s actually pretty slim for Uncle Sam.

Over the last few days, we’ve seen new regulations about proper handling of Irish potatoes and toy magnet sets. It’s absurd.

For even the tiniest issue, bureaucrats and politicians jump to the rescue.

They “protect” us from bad haircuts, ugly interior designs, and slow-speaking auctioneers (just three examples of the over 1,000 occupations that require government licenses in the Land of the Free).

It’s as if they’re some kind of superhero here to save us from ourselves.

I can just picture it now—Bureaucrat Man! Swooping in to save the day with yet another regulation or piece of legislation!

Smashing anyone who tries to rent his/her apartment on Airbnb, Bureaucrat Man saves the citizens of New York from becoming victims of “greedy landlords”.

In San Francisco he makes sure that you’re qualified enough to—walk dogs, demanding that anyone walking more than four dogs have a valid ($375) permit.

In Florida, Bureaucrat Man ensures that giving food to the homeless is done according to rules and regulations; otherwise you get arrested for your act of indecency, just like a 90-year old man was recently.

Heck of a job, Bureaucrat Man. Noble in his intentions, incompetent in his actions, and ruthless in his enforcement.

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UMIch Consumer Confidence Goes Euphoric – Highest Since Dec 2006

The last time Americans were this full of shits and giggles was December 2006 – according to UMich latest survey of consumer sentiment. The indicator has risen for 5 straight months accelerating each time with the biggest surge since the mid-2011 US downgrade crash. At 93.8, smashing expectations of just 89.5 by the most since March 2013, for a 5-standard-deviation beat. Inflation expectations rose (as inflation plunges) and while both current and outlook indices rose markedly, it is the hope-strewn ‘economic outlook’ that exploded.

 

A picture paints a thousand words…

 

 

Biggest beat in 21 months…

 

A Euphoric Goldilocks Surge to 8 year highs…

 

We think this 140-character-or-less tome explains it all….




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The Financialized-Oil Dominoes Are Toppling

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

The drop in oil revenues has triggered a self-reinforcing feedback dynamic.

Oil is not just something that is refined into fuel–it is capital, collateral, debt and risk. In other words, it is intrinsically financial. As I noted in The Oil-Drenched Black Swan, Part 2: The Financialization of Oil, oil has been financialized to the point that few outside the industry understand the dominoes that are currently toppling.
 
Let's start with the obvious fact that the impact of lower oil is financial, political and geopolitical. Lower oil revenues are negatively impacting:
 
1. Oil-exporters’ revenues
2. Monetary policy of central banks
3. Trade flows
4. Global financial markets
 
Lower revenues are pressuring oil-dependent governments such as Russia, Venezuela and Iran, and destabilizing the geopolitical order as weakened oil exporters sink into recession and political turmoil.
 
Lower revenues are also kicking the financial supports out from under the debt-dependent, enormously capital-intensive oil exploration and development projects in North America.
 
Simply put, the sharp drop in oil revenues has knocked over a line of financial dominoes whose end is not yet in sight. These issues have been addressed by a number of analysts; here is a small selection of recent stories:
 
Why US Shale May Fizzle Rather Than Boom (research by Mason Inman)
 
 
 
 
 
 
The drop in oil revenues has triggered a self-reinforcing feedback dynamic. As the financial dominoes fall, there is less capital available to maintain production, so oil output falls, further reducing income. As the collateral,income and impaired debt dominoes topple, risky debt in sectors completely unrelated to oil start falling as institutions trim risk throughout their holdings.
 
Gordon T. Long and I discuss the highlights of this complex set of issues in this video program, The Oil-Drenched Black Swan (28 minutes):




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‘Sit on Santa’s Face,’ and Other Scenes from the U.K. #PornProtest

Earlier this week, I blogged about an event taking place in London today to protest
the U.K.’s new regulations for online porn. The censorship-happy
British government is attempting to ban a range of erotic acts from
web porn depiction, including bondage, strangulation, female
ejaculation, “water sports,” and face-sitting. For more on the
new regs, see here. For a glimpse of the scene
in front of Parliament today, scroll on… 

Do yourself a favor and watch this one with the sound
on: 

Sit-In:

First, they came for the squirters…

All I want for Christmas is…

Because you know it’s in your head already
anyway

The stuff nightmares or dreams are made of? Different
strokes for different folks…

Author Nichi Hodgson with feminist porn director Petra
Joy

Oh, the Britishness of it all!

True story:

Can’t stop, won’t stop

Fuck state censorship, in all it’s forms

See more under the #PornProtest hashtag on Twitter.

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