Australia’s Treasurer: Loose monetary policy has made the rich richer

Joe Hockey Australia Australia’s Treasurer: Loose monetary policy has made the rich richer

October 28, 2014
Region VII, Chile

The Treasurer of Australia (equivalent to the Secretary of the Treasury in the US, or Finance Minister in most European countries) has made a stunning admission.

Joe Hockey stated that the policy of ultra-low interest rates hasn’t spurred economic growth; instead it has mainly had one effect—making rich people richer.

“Loose monetary policy has done its work and unfortunately made the rich richer through rising asset values.”

Even those in charge are recognizing and admitting what devastating effects the voodoo magic of money printing and manipulating the price of money has.

Mr. Hockey also admitted that the alternative of ramping up government spending was limited as well because most countries around the world did not have the money or the ability to “put it on the credit card for ever.”

He said the only way to generate growth in the future was by having “a more competitive world with deregulated labor markets,” reduced barriers to trade and budget reform.

At least someone gets it.

Years of ultra-low interest rates by central banks of US, Japan, UK, Europe etc. have pushed bond and stock markets to record levels, even though the underlying economy is still flat.

Those on top are doing great, the middle class is being squeezed out, and the standards of living for average people are decreasing.

People are starting to understand what kind of charade this is.

They realize that the world’s largest debtor cannot be entrusted anymore with the role of the world’s reserve currency.

The whole world is screaming for a change. Even “friends” are looking for a way out of dependency on the US dollar. The French Finance Minister said recently that an alternative to the dollar is urgently needed.

The European Central Bank is now considering holding some of its reserves in Chinese renminbi, while UK just became the first Western country to issue government bonds denominated in renminbi.

The Europeans, the Chinese, the Russians, the Canadians, the Koreans, the Singaporeans… everyone is recognizing what’s going on. And they’re preparing for a new system.

This is happening. Even the establishment is pushing for it.

Of course, nothing happens overnight. Right now we’re seeing an orderly exit from the US dollar based system.

Just as with bankruptcy, this happens gradually, then suddenly.

Bottom line—we have a front row seat to experience this. The solutions are out there for people who recognize the trend. As with most things in life, it’s better to be years early than a moment too late.

from SOVEREIGN MAN http://www.sovereignman.com/trends/australias-treasurer-loose-monetary-policy-has-made-the-rich-richer-15475/
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You Look Too Calm. What Are You, a Terrorist? Now You Look Nervous, Terrorist.

Look too calm, you’re
suspicious. Look too nervous, you’re suspicious. These
contradictory assumptions are just several transportation
guidelines on “reporting suspicious activity,” revealed by an
American Civil Liberties Union (ACLU) Freedom of Information Act
(FOIA) request.

They comes from an
employee document
for Amtrak, which is publicly funded. These
are signs that you should be paranoid of your fellow Americans, and
call the police on them:

  • Evasive path through train station
  • Carrying little or no luggage
  • Last minute reservation
  • Traveling by an unusual itinerary (multi-changes in
    reservations)
  • Carrying unusually large amount of currency
  • Purchase of tickets in cash
  • Purchase tickets immediately prior to boarding
  • Unusual nervousness of traveler
  • Unusual calmness or straight ahead stare
  • Looking around while making telephone call(s)
  • Position among passengers disembarking (ahead of, or lagging
    behind passengers)

So, Amtrak travelers, make sure you walk straight, travel
straight, look straight ahead but dont look
straight ahead, keep pace with the rest of us, carry just the right
amount of clothes, and wipe that look of fear or curiosity or
contentment off your face, or else the terrorists win.

The ACLU
explains
that it made this FOIA request because it “has
received reports from individuals wrongfully searched and arrested
on Amtrak trains,” and wanted to know what policies led to these
arrests.

Amtrak has a “See Something, Say Something” campaign like the
Department of Homeland Security, and like the Transportation
Security Agency, Amtrak’s “broad categories of ‘suspicious’
behavior is problematic because it almost always results in racial
and religious profiling, as well as the targeting of perfectly
innocent activity. Most importantly, building mountains of
irrelevant data is ultimately an ineffective law enforcement
tactic.”

The ACLU points out several stupid cases that make no one safer:
one woman was arrested for talking to loudly, and a photographer
was arrested while participating in Amtrak’s annual “Picture our
Train” competition. 

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Biderman Blasts “Either Obama Is Ignorant, Or He Is Hiding The Truth”

According to the official government data, the United States asserts its future obligations, as of Q2 2014, are $16.5 trillion. However, TrimTabs founder Charles Biderman says that is wrong, the actual figure of the country’s future obligations, which is $98 trillion. “This does not bode well for future generations,” Biderman warns, adding “either Obama is ignorant of future US government obligations or he is hiding the truth.”

 

Charles Biderman, founder of TrimTabs Investment Management Float Shrink (TTFS) says the U.S. gives its future obligations, as of Q2 2014, as $16.5 trillion.  But, in fact, Biderman says, the actual number is $98 trillion.

 

 

“Either Obama is ignorant of future US government obligations or he is hiding the truth,” slammed Biderman.

“If the United States were a public company and was hiding the truth that the present value of future obligations was $98 trillion – not just $16.5 trillion– the president of that company would be guilty of criminal fraud.”

Biderman said the actual figure of the country’s future obligations, which is  $98 trillion, is in the 2013 OASDI (Old Age, Survivor’s and Disability Insurance) Trust Funds, a combination of Social Security and Medicare Trustee Reports.

As Biderman concludes:

“This does not bode well for future generations when the U.S. can’t afford to fund benefits including Medicare.”




via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/P8Loe6FQeQw/story01.htm Tyler Durden

Texas Prosecutor Responds to Reason’s “Purple Zone Raid” Article/Video

On October 21, 2014 Reason.com published “Sex,
Spice, and Small-Town Justice: The Purple Zone Raid
,” my
article and video that showed how “a rogue prosecutor makes the
drug war personal.” 

Brewster County (TX) District Attorney Rod Ponton took issue
with the piece and wrote us a letter listing what he characterizes
as the “top ten reasons” the article is “a blatant lie.”


Click here or below to read
Ponton’s letter in its original
form, followed by my point by point rebuttal. 

View this article.

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Despite “Healthy” Stress Test, Deutsche Bank Replaces CFO With Goldman Sachs Partner

Deutsche Bank executives are dropping like flies. Just days after receiving a clean bill of health from Europe’s oh-so-stressful stress-tests, Deutsche Bank has decided that longtime finance chief Stefan Krause needs to be replaced. Perhaps most interesting is the bank that faces ‘serious financial reporting problems’ in the US and has a derivatives book literally the size of (actually 20 times bigger) than Germany, has decided the right man for the job is an ex-Goldman Sachs partner. Marcus Schenck, according to WSJ, will replace Krause, having worked at German utility E.ON until last year when he joined Goldman.

 

As WSJ reports,

Deutsche Bank AG is replacing its longtime finance chief, Stefan Krause , with a Goldman Sachs Group Inc. partner, Marcus Schenck, according to people familiar with the matter.

 

Mr. Krause, who has faced criticism from investors over his financial leadership of the giant German bank, will take a newly created position within Deutsche Bank, one person said.

 

From 2006 through 2013, Mr. Schenck was finance chief of German utility E.ON AG . He joined Goldman Sachs last year.

 

Mr. Krause, who joined Deutsche Bank from BMW AG in 2008, presided over Deutsche Bank’s finances during a tumultuous period.

 

An examination by the Federal Reserve Bank of New York last year found that the bank’s giant U.S. operations suffer from a variety of serious financial-reporting problems that the lender has been aware of for years but hasn’t fixed, according to documents reviewed by The Wall Street Journal.

 

Mr. Krause led a companywide effort to improve the quality of its financial reporting, a project the New York Fed criticized as inadequate, the Journal reported.

*  *  *

Krause wasn’t at Goldman long… having left E.ON in July 2013…

E.ON SE’s long-standing CFO, Marcus Schenck, has informed the Chairman of the Supervisory Board that he does not wish to have his employment contract extended.  

 

“It wasn’t an easy step to take after 7 years as CFO of E.ON. I have not decided against E.ON but rather in favor of Goldman Sachs. The chance to return to the Investment Banking Division in London as a partner with Goldman Sachs and take over the management of Investment Banking Services for the EMEA region offers a great opportunity to work with major international clients.“

 

Marcus Schenck will join Goldman Sachs as a member of the Investment Banking Division’s Global Operating Committee.

*  *  *

We wonder if this had anything to do with Schenck’s replacement?

 




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Peter Suderman on Why Obamacare is Still a Liability for Democrats

Remember when Democrats were going to run on
Obamacare?

In March of 2010, just a few days before the final version of
the law passed in the House, a triumphant White House
Communications Director Dan Pfeiffer told The
New York Times
 that, “if and when this is passed,
Democrats will run aggressively on this.” The law would be a hit,
well-liked and broadly popular, and Democrats would use it to their
advantage.

The law passed, but the aggressive campaign never happened.
Later that year, in fact, several Democrats ran ads against the
health law. Even still, writes Reason Senior
Editor Peter Suderman, Democrats kept promising that the
pro-Obamacare campaigns were soon to come. 

View this article.

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Post Office Tracks Your Mail (Often Without Proper Authorization)

The National Security Agency’s
(NSA) snoopy ways with our phone calls is headed to
no less than three federal appeals courts
, but long before mass
electronic surveillance was a glimmer in a bureaucratic voyeur’s
eye, the
Post Office was already skimming and scanning
through our mail
to track our communications. Unshockingly, it turns out that the
folks who manage to lose your mail and deliver your lingerie
catalogs well-thumbed aren’t so good at respecting even the shaky
privacy protections intended to regulate when and how
correspondence is supposed to be monitored.

Little known by most Americans, the Post Office has been
tracking mail for a century. These days, it photographs and stores
images of the outside of every piece of mail sent as a
matter of course, and can target specific individuals for “mail
covers”—special scrutiny of the outside of their correspondence,
including recording names and return addresses of the people with
whom they exchange mail. But that scrutiny is supposed to
abide by certain rules.

Yeah…well. In a
May audit
, the United States Postal Service Inspector General
revealed:

responsible personnel did not always handle and process mail
cover requests in a timely manner and documents relating to the
covers were not always returned to the program files as required.
Of the 196 external mail cover requests we reviewed, 21 percent
were approved without written authorization and 13 percent were not
adequately justified or reasonable grounds were not transcribed
accurately. Also, 15 percent of the inspectors who conducted
[redacted] mail covers did not have the required nondisclosure form
on file.

After examining three fiscal years worth of mail covers, with
49,000 conducted in 2013 alone, the inspector general cautioned
that, “Insufficient controls could hinder the Postal Inspection
Service’s ability to conduct effective investigations, lead to
public concerns over privacy of mail, and harm the Postal Service’s
brand.”

No doubt. The New York Times
points out
that the Post Office has been sufficiently sloppy
about checking justifications for surveillance that it has been
sucked into political espionage.

Interviews and court records also show that the surveillance
program was used by a county attorney and sheriff to investigate a
political opponent in Arizona — the county attorney was later
disbarred in part because of the investigation — and to monitor
privileged communications between lawyers and their clients, a
practice not allowed under postal regulations.

That’s a reference to the
shenanigans of Sheriff Joe Arpaio and Andrew Thomas
, who did
their best to turn Maricopa County into a banana republic (Arpaio
is still hard at it). They used information gleaned, in part, from
the mail surveillance to determine targets for police raids
intended to destroy a county supervisor who was a thorn in their
sides.

The tactic didn’t work, but not for lack of trying.

Defense attorneys’ snail mail communications with defendants
have also been targeted for scrutiny, in a way that potentially
stacks the deck in favor of prosecutors.

Basically, it’s all the concerns you have about intrusive NSA
snoopiness, applied to an older form of communications, by a
perhaps less competent bureaucracy.

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Last 2 Year Auction Of QE3 Prices At Lowest Yield Since May, Lowest Bid-To-Cover Since September 2013

After last month’s 2 Year auction, which priced at the highest yield since 2011, but a matching jump in the Bid to Cover, which at 3.564 was the highest since February, today’s just completed issuance of $29 billion in non-POMOable 2 Year paper showed a big drop in yield, sliding to 0.425%, stopping through the 0.429% When Issued. Offsetting the drop in yield, however, was the Bid To Cover, which dropped to just 3.113, the lowest since September 2013, thus making any firm determination of interest complicated. Furthermore, while the Directs took 47.16%, or above the 42.98% in the prior month, this was below the TTM average of 49% and the second lowest since March. Is the lack of the free POMO flip put going to force the Dealer bid lower? We dont need to know the answer for now as Directs picked up 16.19%, or the most since June, while Indirects were left holding 36.6%, well above the 29.2% TTM Average.

Altogether, an unremarkable auction in a week where the longer-maturities will be far more closely watched, especially after tomorrow once the FOMC announcement is in the history books.




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“Stop Thanking Me for My Service” – Former U.S. Army Ranger Blasts American Foreign Policy and The Corporate State

Screen Shot 2014-10-28 at 11.15.28 AMStarbucks Chairman Howard Schultz has said of the upcoming Concert for Valor:

“The post-9/11 years have brought us the longest period of sustained warfare in our nation’s history. The less than one percent of Americans who volunteered to serve during this time have afforded the rest of us remarkable freedoms — but that freedom comes with a responsibility to understand their sacrifice, to honor them, and to appreciate the skills and experience they offer when they return home.”

It was crafty of Schultz to redirect that famed 1% label from the ultra rich, represented by CEOs like him, onto our “heroes.” At the concert, I hope Schultz has a chance to get more specific about those “remarkable freedoms.” Will he mention that the U.S. has the highest per capita prison population on the planet?  Does he include among those remarkable freedoms the guarantee that dogs, Tasers, tear gas, and riot police will be sent after you if you stay out past dark protesting the killing of an unarmed Black teenager by a representative of this country’s increasingly militarized police? Will the freedom to be too big to fail and so to have the right to melt down the economy and walk away without going to prison — as Jamie Dimon, the CEO of Chase, did – be mentioned? Do these remarkable freedoms include having every American phone call and email recorded and stored away by the NSA?

– From the incredible letter by Former U.S. Army Ranger Rory Fanning: Stop Thanking Me for My Service

I have to admit, whenever I find myself in the midst of a large public gathering (which fortunately isn’t that often), and the token veteran or two is called out in front of the masses to “honor” I immediately begin to cringe as a result of a massive internal conflict. On the one hand, I recognize that the veteran(s) being honored is most likely a decent human being. Either poor or extraordinarily brainwashed, the man or woman paraded in front of the crowd is nothing more than a pawn. Even if their spouse hasn’t left them; even if whatever conflict they were involved in didn’t result in a permanent disability or post traumatic stress disorder, this person has been used and abused, and thirty seconds of cheering in between ravenous bites out of a footlong hotdog from a drunk and apathetic crowd isn’t going to change that. I don’t harbor negative sentiments toward the veteran.

On the other hand, the entire spectacle makes me sick. I refuse to participate in the superficial charade for many reasons, but the primary one is that I don’t want to play any part in the crowd’s insatiable imbecility. It’s the stupidity and ignorance of the masses that the corporate-state preys upon, and that’s precisely what’s on full display at these tired and phony imperialist celebrations.

continue reading

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Half of MIT Students Think It’s Possible to “Accidently” Rape Someone (Thanks, Affirmative Consent!)

Whether rape happens on U.S. college campuses at
rates similar to elsewhere in America or to rates in Tanzania and
South Africa has been a major subject of dispute recently. Folks
from President Obama to
swearing 5-year-olds princesses
have been citing a statistic
that 20 percent of women on college campuses, or one in five, will
be sexually assaulted while there—a stat that has also
been routinely debunked
. However, a new sexual assault
survey
 from the Massachusetts Institute of Technology
(MIT)—one of the first schools to release broad data on campus sex
crimes—seems to corroborate everyone’s favorite sketchy
stat. 

Or does it? Media are reporting that
one in six female undergraduates
 at MIT have been
sexually assaulted (with this translating in some headlines and
social media shares to “one in six have been raped“). But
the MIT survey suffers from the same issues that plague previous
studies on campus sexual assault. 

First, the survey’s methodology: In April, MIT emailed its
sexual assault survey to all 10,831 undergraduates and graduate
students. Students could then opt to take the survey or not.
Ultimately, 35 percent of MIT students did. But whenever you have
an opt-in survey, those who self-select to take it are not
necessarily representative of a given population. Or, as MIT
researchers put it, “response bias is expected in virtually any
voluntary survey, particularly one focused on a narrow topic. …
the rates based on those who responded to the survey cannot be
extrapolated to the MIT student population as a whole.” 

It’s also worth noting that the definition of sexual assault—in
both the MIT survey and previous campus sexual assault studies—is a
broad one, including forced sexual penetration, forced oral sex,
and unwanted “sexual touching” or kissing. Of course there are all
sorts of levels of sexual assault, and just because something
doesn’t approach the level of forced intercourse (i.e., rape)
doesn’t mean it’s not a serious violation. But let’s be clear that
MIT’s “1 in 6” stat is decidely not about the
number of students who are rape victims, nor is the much
bandied-about “1 in 5” college women stat. 

So!, now that we’ve cleared up what the MIT study did not find,
let’s look at
what it did
, starting with intriguing student
attitudes toward sexual assault. Contra the affirmative
consent crowd, it doesn’t seem that a lack of respect or enthusiasm
for obtaining sexual content is a big problem: 98 percent of
females and 96 percent of males agreed or strongly agreed that it’s
important to get consent before sexual activity. 

But students are confused about how alcohol
and intoxication affect consent, which perhaps speaks to increasing
progressive activism around the idea that drunk people can’t give
consent. Only about three-quarters of respondents said they feel
confident in their own ability to judge whether someone is too
intoxicated to consent to sex. And more than half agreed that “rape
and sexual assault can happen unintentionally, especially if
alcohol is involved.” 

I just want to repeat that one more time: Half of
MIT students think it’s possible to “accidently” rape
someone
When you consider undergraduates
alone, this rises to 67 percent
.

This is what we get when people push an idea that rape is really
often a matter of consent confusion or a drunken misunderstanding
and not something that one person (the rapist) intentionally does
to another. This is exactly what those of us opposed
to affirmative consent standards
mean when we worry about it
muddying the waters of consent and confusing
the definition of rape
. About a fifth of female undergraduates
and a quarter of male undergraduates surveyed agreed that “when
someone is raped or sexually assaulted, it’s often because the way
they said ‘no’ was unclear or there was some
miscommunication.” 

When it comes to experiences of sexual assault since starting at
MIT:

  • 1 in 20 female undergraduates, 1 in 100 female graduate
    students, and zero male students reported being the victim of
    forced sexual penetration
  • 3 percent of female undergraduates, 1 percent of male
    undergraduates, and 1 percent of female grad students reported
    being forced to perform oral sex
  • 15 percent of female undergraduates, 4 percent of male
    undergraduates, 4 percent of female graduate students, and 1
    percent of male graduate students reported having experienced
    “unwanted sexual touching or kissing”

All of these experiences are lumped together under the school’s
definition of sexual assault.

When students were asked to define their own experiences, 10
percent of female undergraduates, 2 percent of male undergraduates,
three percent of female graduate students, and 1 percent of male
graduate students said they had been sexually assaulted since
coming to MIT. One percent of female graduate students, one percent
of male undergraduates, and 5 percent of female undergraduates said
they had been raped. 

For undergraduates, most of these “unwanted sexual experiences”
(the umbrella term MIT uses) occured while on campus, while
graduate students were more likely to report incidents that took
place away from MIT. A little under three-quarters (72 percent) of
respondents said the perpetrator was a fellow MIT student. For
women, all but 2 percent of perpetrators were males; for male
victims, 35 percent of the perpetrators had been male and 67
percent had been female.

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