An Equal-Opportunity Thanksgiving Day Cartoon That Can’t Offend Anyone

Crown Prince Mohammed bin Salman must be worried that some of the royals rounded up during his ‘corruption crackdown’ cash grab are holding out on him. Because the Saudi prince has reportedly hired a crew of American mercenaries who haven’t hesitated to employ an array of ‘enhanced interrogation’ techniques.
As the Daily Mail reports, mercenaries purportedly employed by Academi, a successor to infamous US security contractor Blackwater, have been stringing up some of MBS’s ‘guests’ at the Riyadh Ritz Carlton by their feet and savagely beating them during interrogations. The claims have spread rapidly on Arabic-language social media, and even Lebanon’s president Michel Aoun has accused MbS of using mercenaries. Still, the Daily Mail isn’t the most reputable news organization, so these reports should be taken with a grain of salt.
‘They are beating them, torturing them, slapping them, insulting them. They want to break them down,’ the source told DailyMail.com.
‘Blackwater’ has been named by DailyMail.com’s source as the firm involved, and the claim of its presence in Saudi Arabia has also been made on Arabic social media, and by Lebanon’s president.
The firm’s successor, Academi, strongly denies even being in Saudi Arabia and says it does not engage in torture, which it is illegal for any U. S. citizen to commit anywhere in the world.
The Saudi crown prince, according to the source, has also confiscated more than $194 billion from the bank accounts and seized assets of those arrested, and could eventually end up with $800 billion in cash and assets to replenish Saudi’s rapidly diminishing reserves. Given the febrile atmosphere in the kingdom, and the tacit support for the crackdown among Saudi citizens, who have seen their jobs and generous government subsidies cut, MbS has been able to circumvent the country’s legal system.

This post was published at Zero Hedge on Nov 23, 2017.

Alwaleed Bin Talal Reportedly Hung Upside Down And Beaten By US Mercenaries

Crown Prince Mohammed bin Salman must be worried that some of the royals rounded up during his ‘corruption crackdown’ cash grab are holding out on him. Because the Saudi prince has reportedly hired a crew of American mercenaries who haven’t hesitated to employ an array of ‘enhanced interrogation’ techniques.
As the Daily Mail reports, mercenaries purportedly employed by Academi, a successor to infamous US security contractor Blackwater, have been stringing up some of MBS’s ‘guests’ at the Riyadh Ritz Carlton by their feet and savagely beating them during interrogations. The claims have spread rapidly on Arabic-language social media, and even Lebanon’s president Michel Aoun has accused MbS of using mercenaries. Still, the Daily Mail isn’t the most reputable news organization, so these reports should be taken with a grain of salt.
‘They are beating them, torturing them, slapping them, insulting them. They want to break them down,’ the source told DailyMail.com.
‘Blackwater’ has been named by DailyMail.com’s source as the firm involved, and the claim of its presence in Saudi Arabia has also been made on Arabic social media, and by Lebanon’s president.
The firm’s successor, Academi, strongly denies even being in Saudi Arabia and says it does not engage in torture, which it is illegal for any U. S. citizen to commit anywhere in the world.
The Saudi crown prince, according to the source, has also confiscated more than $194 billion from the bank accounts and seized assets of those arrested, and could eventually end up with $800 billion in cash and assets to replenish Saudi’s rapidly diminishing reserves. Given the febrile atmosphere in the kingdom, and the tacit support for the crackdown among Saudi citizens, who have seen their jobs and generous government subsidies cut, MbS has been able to circumvent the country’s legal system.

This post was published at Zero Hedge on Nov 23, 2017.

Next-Generation Crazy: The Fed Plans For The Coming Recession

Insanity, like criminality, usually starts small and expands with time. In the Fed’s case, the process began in the 1990s with a series of (in retrospect) relatively minor problems running from Mexico’s currency crisis thorough Russia’s bond default, the Asian Contagion financial crisis, the Long Term Capital Management collapse and finally the Y2K computer bug.
With the exception of Y2K – which turned out to be a total non-event – these mini-crises were threats primarily to the big banks that had unwisely lent money to entities that then flushed it away. But instead of recognizing that this kind of non-fatal failure is crucial to the proper functioning of a market economy, providing as it does a set of object lessons for everyone else on what not to do, the Fed chose to protect the big banks from the consequences of their mistakes. It cut interest rates dramatically and/or acquiesced in federal bailouts that converted well-deserved big-bank losses into major profits.
The banks concluded from this that any level of risk is okay because they’ll keep the proceeds without having to worry about the associated risks.
At this point – let’s say late 1999 – the Fed is corrupt rather than crazy. But the world created by its corruption was about to push it into full-on delusion.
The amount of credit flowing into the system in the late 1990s converted the tech stock bull market of 1996 into the dot-com bubble of 1999, which burst spectacularly in 2000, causing a deep, chaotic recession.

This post was published at DollarCollapse on NOVEMBER 17, 2017.

Saudi Arabia Offers Arrested Royals A Deal: Your Freedom For Lots Of Cash

As we noted shortly after the Crown Prince’s purge of potential rivals within Saudi Arabia’s sprawling ruling family, while the dozens of arrests were made under the pretext of an “anti-corruption crackdown”, Mohammed bin Salman’s ulterior motive was something else entirely: Replenishing the Kingdom’s depleted foreign reserves, which have been hammered for the past three years by low oil prices, with some estimating that the current purge could potentially bring in up to $800 billion in proceeds.
Furthermore, the geopolitical turmoil unleashed by the unprecedented crackdown helped push oil prices higher, creating an ancillary benefit for both the kingdom’s rulers and the upcoming IPO of Aramco.
***
And, in the latest confirmation that the crackdown was all about cash, the Financial Times reports today that the Saudi government has offered the new occupants of the Riyadh Ritz-Carlton a way out…. and it’s going to cost them: In some cases, as much as 70% of their net worth.

This post was published at Zero Hedge on Nov 16, 2017.

NOW IT’S THE DEMOCRATS WHO HAVE A ‘RUSSIAN PROBLEM’

Suddenly it’s the Democrats who have a serious Russia problem.
Democratic fingerprints are all over a growing number of Russia-related scandals, including payments to Fusion GPS for its Russian-sourced Trump dossier, lobbying on behalf of Russia’s largest bank to lift economic sanctions, former President Barack Obama’s administration’s approval of the sale of Uranium One to Russia, and giving twenty percent of America’s uranium reserves to Moscow.
Republican Senators Lindsey Graham of South Carolina and Chuck Grassley of Iowa have called for the appointment of a special prosecutor to look into the mounting scandals tying Democrats to Russia.
tweet
‘The bottom line is very simple, says former U. S. Attorney Joseph diGenova in an interview with The Daily Caller News Foundation. ‘The Russian connection now is owned by the Democratic Party.’
What are the Democratic ties to Russia?
Fusion GPS
In 2016 the Hillary for America presidential campaign and the Democratic National Committee (DNC) paid at least $168,000 to Fusion GPS, a political opposition research for the salacious Trump-Russia dossier.

This post was published at The Daily Sheeple on NOVEMBER 10, 2017.

CLOs – “Safe” CDOs – Are Booming Again

Last week we explained how junk bond managers were buying increasing amounts of equities to ‘juice’ their portfolios and propel their funds higher in the performance rankings.
While this struck us as a relatively recent development, the tried-and-trusted method of trading more risk for more yield is going gangbusters in the CLO (Collateralized Loan Obligations) market in 2017…
In ‘Hunt for Yield Fuels Another Boom in Another Complex, Risky Security’, the WSJ notes:
‘The CLO boom is the latest sign of the ferocious hunt for yield permeating markets. Stellar performance over the past year has made CLOs increasingly hard to ignore for investors like insurance companies and pension funds. CLOs carve up a portfolio of bank loans to highly indebted companies into slices of securities with different levels of risk.
The securities at the bottom of the CLO stack offer the highest potential source of returns, but they are also the first to absorb losses if there are defaults in the underlying loan portfolio. The more senior slices offer lower returns but are more insulated from losses. CLOs are often lumped together with other alphabet-soup acronyms of the financial crisis, such as more toxic CDOs, or collateralized debt obligations. But CLOs actually weathered the financial crisis well: Investors who bought at the top of the market in 2007 suffered paper losses, but there were no defaults at all for the highest-rated securities.’
The ‘boom’ terminology applied by the WSJ for 2017 is apt:

This post was published at Zero Hedge on Oct 23, 2017.

FBI Informant “Threatened” After Offering Details Linking Clinton Foundation To Russian Bribery Case

While the mainstream media has largely ignored it, the scandal surrounding Russian efforts to acquire 20% of America’s uranium reserves, a deal which was ultimately approved by the Obama administration, and more specifically the Committee on Foreign Investment in the United States (CFIUS) which included Hillary Clinton and Eric Holder, is becoming more problematic for Democrats by the hour.
As The Hill pointed out earlier this morning, the latest development in this sordid tale revolves around a man that the FBI used as an informant back in 2009 and beyond to build a case against a Russian perpetrator who ultimately admitted to bribery, extortion and money laundering. The informant, who is so far only known as “Confidential Source 1,” says that when he attempted to come forward last year with information that linked the Clinton Foundation directly to the scandal he was promptly silenced by the FBI and the Obama administration.
Working as a confidential witness, the businessman made kickback payments to the Russians with the approval of his FBI handlers and gathered other evidence, the records show.
Sources told The Hill the informant’s work was crucial to the government’s ability to crack a multimillion dollar racketeering scheme by Russian nuclear officials on U. S. soil that involved bribery, kickbacks, money laundering and extortion. In the end, the main Russian executive sent to the U. S. to expand Russian President Vladimir Putin’s nuclear business, an executive of an American trucking firm and a Russian financier from New Jersey pled guilty to various crimes in a case that started in 2009 and ended in late 2015.

This post was published at Zero Hedge on Oct 18, 2017.

The 7 Key Takeaways From Xi Jinping’s Vision For “A New Era” In China

As reported first thing this morning, China’s President Xi Jinping outlined his vision for the next five years, ushering in a “new era” (a term he repeated 36 times) of development in China, as the Communist Party’s 19th Congress opened in Beijing on Wednesday. During a 3-hour long speech, Xi said the internal and external situations facing China were undergoing complicated changes which the party needed to address. Xi started with the opening remark that ‘the prospects are bright while the challenges are also grave’, before reminding his audience of his achievements over the past five years, which included: poverty reduction, strengthening the one party rule, national security, cutting down pollution and the Belt and Road infrastructure initiatives. One can also throw in “nationalizing China’s capital markets” in this list.
***
Further, as DB’s Jim Reid wrote overnight, Xi’s anti-graft drive has achieved an ‘important and irreversible’ momentum and he insisted that China has ‘zero tolerance’ on corruption. On the long term, he wants to set the agenda for the country to be ‘a modern, socialist power’ by 2050. On the economy, he says the liberalisation of both interest rate exchanges will continue as “the door China opened will not close but will open wider and wider”.

This post was published at Zero Hedge on Oct 18, 2017.

Senate Launches Probe Into Russian Nuclear Bribery Case That Netted Clintons Millions

As the media continues to lose their collective minds over $100,000 worth of Facebook ads allegedly purchased by Russians during the 2016 election, the Senate Judiciary Committee has finally decided they’re going to take a look into a shady Russian deal that handed Putin 20% of America’s uranium reserves, was approved by the Obama administration during an ongoing FBI investigation into charges of bribery, extortion and money laundering by the Russian buyer and netted the Clintons millions of dollars in donations and ‘speaking fees.” Here’s more from The Hill:
The Senate Judiciary Committee has launched a full-scale probe into a Russian nuclear bribery case, demanding several federal agencies disclose whether they knew the FBI had uncovered the corruption before the Obama administration in 2010 approved a controversial uranium deal with Moscow.
Sen. Chuck Grassley (R-Iowa), the committee chairman, gets his first chance to raise the issue in public on Wednesday when he questions Attorney General Jeff Sessions during an oversight hearing.
Though the hearing was scheduled for other purposes, aides said they expected Grassley to ask Sessions questions about a story published in The Hill on Tuesday that disclosed the FBI had uncovered evidence showing Russian nuclear officials were engaged in a racketeering scheme involving bribes, kickbacks and money laundering designed to expand Russian President Vladimir Putin’s atomic energy business on U. S. soil.
“It has recently come to the Committee’s attention that employees of Rosatom were involved in a criminal enterprise involving a conspiracy to commit extortion and money laundering during the time of the CFIUS transaction,” Grassley wrote in one such letter addressed to Sessions.

This post was published at Zero Hedge on Oct 18, 2017.

Seeking More QE for Japan – Abe Calls Snap Election

Opponents of Abe-economics – a policy whose defining characteristic these days is ever more radical monetary experimentation and a creeping but serious deterioration in the public finances – are in despair. Yet again, as in March 2015, the Japanese PM Abe has called a snap election (one year short of a full term with a campaign limited to 3 weeks), this time with the intention of crushing a potential leadership challenge within his party (the LDP) which incidentally could have brought a change in economic policy direction.
PM Abe took a gamble. The established opposition party to the LDP, the DPJ, is weak and indeed in meltdown. But the Party of Hope formed just in the last few weeks by popular governor Koike (the nationalist ex LDP defense minister, previously a television news anchor) could galvanize a protest vote. Opinion polls suggest now that the Abe’s LDP will obtain indeed a large majority in the Diet following the October 22 election.
Governor Koike has gained from the corruption scandals beleaguering the PM but she articulates no alternative to Abe-economics. In fact her party’s program supports continuation of the mega-money printing program
This time, like the last, the ostensible justification which PM Abe has advanced for a snap election is to win voter approval for his decision to over-ride already legislated fiscal discipline. In 2015 the election was called to postpone a looming increase in the consumption tax; this time it is to match that delayed tax increase (scheduled now for 2019) with a boost to social spending.
The fact that such a rolling back of fiscal tightening is indeed saleable to a doubting public fully aware of the weak public finances is due to long-term interest rate markets having ceased to exert any constraint. They have become dysfunctional in consequence of monetary radicalism – now extending to the Bank of Japan (since September 2016) pegging long term interest rates at zero.

This post was published at Ludwig von Mises Institute on October 17, 2017.

Vietnam Shows How To Clean Up The Banking System: Ex-Banker Sentenced To Death For Fraud

The lack of prosecution of US bankers responsible for the great financial crisis has been a much debated topic over the years, leading to the coinage of such terms as “Too Big To Prosecute”, the termination of at least one corrupt DOJ official, the revelation that Eric Holder is the most useless Attorney General in history, and of course billions in cash kickbacks between Wall Street and D. C. And, naturally, the lack of incentives that punish cheating and fraud, is one of the main reasons why such fraud will not only continue but get bigger until once again, the entire system crashes under the weight of accumulated theft, corruption and Fed-driven malinvestment. But what can be done? In this case, Vietnam may have just shown the way – sentence embezzling bankers to death. Because if one wants to promptly stop an end to all financial crime, few things motivate as efficiently as a firing squad.
According to the BBC, the former head of a major Vietnamese bank has been sentenced to death for his role in a fraud case involving some 800 billion dong (which sounds like a lot of dong, but equals roughly $35 million) of illegal loans. Nguyen Xuan Son, who served as general director of OceanBank, was convicted of embezzlement, abuse of power and economic mismanagement. Bank founder, tycoon Ha Van Tham, and dozens of other banking officials are also on trial, accused of lending violations.

This post was published at Zero Hedge on Sep 29, 2017.

An Open Letter To The Okaloosa County Commission Pt 2

One definition of insanity is doing the same thing over and over while expecting different results.
The Okaloosa County Commission is by definition dysfunctional, corrupt or both. Any governmental unit that believes a 47% budget increase over the space of a mere five years is defensible has rocks in their head. That the Commission managed to paint over this by drawing down reserves when the cause was not a one-year hit from an event like a hurricane (which is what reserves are for) ought to be treated as criminal corruption and result in the incarceration of everyone involved.
The “escalating” expenses in the budget this year alone are primarily (1) reserve restoration (that is, paying back what the commission took through gross mismanagement), (2) adding to said reserves (possibly arguably ok), (3) more law enforcement (big shock) and (4) insane health care cost escalations.
If Okaloosa County wishes to improve its economic attractiveness it must address these issues along with the outrageous actions and inactions by the Commission not only over previous years, but on a forward basis.
Like many if not most counties Okaloosa County’s ad-valorem tax revenue almost exclusively goes to the Sheriff’s Office (and related expenditures, such as the county jail.) This is not unusual; there are in fact counties where more than 100% of ad-valorem revenue goes to law enforcement. If you’re wondering why county sheriffs like to write tickets, well, you just figured it out since traffic fines of course offset some of their ad-valorem tax demand.
But in this county, as in other tourist areas, there’s a problem: The majority of services provided by the Sheriff’s Office, most of which are quite-mundane (e.g. traffic accidents, etc) involve and are provided to tourists. The issue is that tourists pay almost zero ad-valorem tax; while if they rent someone’s condo that person does pay the tax they only occupy the building for a tiny part of the year and thus on a pro-rata basis, that is, on a per-capita/year basis, they pay almost nothing.
Yet on a per-capita/year basis tourists form the majority of the Sheriff Department’s load.

This post was published at Market-Ticker on 2017-09-23.

Dear Jamie Dimon: Predict the Crash that Takes Down Your Produces-Nothing, Parasitic Bank and We’ll Listen to your Bitcoin “Prediction”

This is the begging-for-the-overthrow-of-a-corrupt-status-quo economy we have thanks to the Federal Reserve giving the J. P. Morgans and Jamie Dimons of the world the means to skim and scam the bottom 95%. Dear Jamie Dimon: quick quiz: which words/phrases are associated with you and your employer, J. P. Morgan? Looting, pillage, rapacious, exploitive, only saved from collapse by massive intervention by the Federal Reserve, the source of rising wealth inequality, crony capitalism, privatized profits-socialized losses, low interest rates = gift from savers to banks, bloviating overpaid C. E. O., propaganda favoring the financial elite, tool of the top .01%, destroyer of democracy, financial fraud goes unpunished, free money for financiers, debt-serfdom, produces nothing of value to society or the bottom 99.5%. Jamie, if you answered “all of them,” you’re correct. The only reason you have a soapbox from which you can bloviate is the central bank (Federal Reserve) saved you and your neofeudal looting machine (bank) from well-deserved oblivion in 2008-09, and the unprecedented, co-ordinated campaign by global central banks to buy trillions of dollars of bonds and stocks.

This post was published at Charles Hugh Smith on WEDNESDAY, SEPTEMBER 13, 2017.

So Where Does the Money Go that Mexico Borrows?

Answers emerge. Including offshore private accounts.
Mexico’s public debt-to-GDP of 50% may seem modest by today’s inflated standards, but when it comes to debt, everything is relative, especially if you don’t enjoy the benefits that come from having a reserve-currency-denominated printing press, and if you borrow in a foreign currency that you don’t control.
As the debt load grows, more and more of the States’ financial resources must be used to service it. As El Financiero reports, the cost of servicing Mexico’s debt, despite super-low interest rates globally, has almost doubled in the last five years, and is now higher than it has been at any time since 1990. In fact, according to the Government’s own figures, more state funds will be spent this year on servicing the debt than on all public infrastructure projects put together.
Yet as the government scrimps and scrapes in areas that might actually help to boost economic growth, it’s more than happy to dig deep to fill its own pockets.
A joint investigation by the news website Animal Politico and the NGO Mexicans Against Corruption and Impunity has revealed that, amidst all the budget cuts, the Pea Nieto Government has been using a complex web of shell companies to make hundreds of millions of dollars of public funds, originally intended for public causes such as combating poverty or financing public education, completely vanish.

This post was published at Wolf Street on Sep 11, 2017.

RBI’s Rajan Warned Modi About “Short-Term Costs” Of Demonitization

In what’s likely to be remembered as one of the most spectacular policy failures in recent Indian history, Prime Minister Narendra Modi’s decision to abruptly cancel high-denomination banknotes – a move meant to punish corrupt officials and criminals – instead destroyed the savings of middle- and low-income Indians and caused widespread chaos in the country’s financial system.
And now, less than a year since the ‘war on cash’ was announced, prominent former government officials are speaking out and placing the blame for the policy squarely on Modi’s shoulders, including former Reserve Bank of India governor Raghuram Rajan, who told the Times of India that he had cautioned the government that the short-term costs of demonetization would outweigh the long-term benefits, and suggested “alternatives” to achieve the goal of stamping out black money.
When Modi announced in November that Rs1,000 ($16) and Rs500 notes would no longer be legal tender, he suggested that corrupt officials, businessmen and criminals – popularly believed to hoard large sums of illicit cash – would be stuck with ‘worthless pieces of paper’. At the time, government officials had suggested that as much as one-third of India’s outstanding currency would be purged from the economy – as the wealthy abandoned or destroyed it, rather than admit to their hoardings – reducing central bank liabilities and creating a windfall for India’s government. Meanwhile, ordinary Indians would opt to keep more of their money in electronic deposits at their bank, helping to shore up the country’s financial system.

This post was published at Zero Hedge on Sep 4, 2017.

Bitcoin In An Illusionary Age

It is altogether fitting that crypto currencies, in particular Bitcoin, have witnessed a meteoric rise in this illusionary age.
Not only has their monetary value gone to dizzying heights, but they are now being touted as the destroyer of the current, crumbling monetary order and the next paradigm upon which a new money and banking system will emerge.
In an era where sacrifice, hard work, loyalty, ingenuity, tradition, and independent thought are considered anathemas, while affirmative action, sloth, effeminacy, office seeking, and something-for-nothing schemes are endemic in every walk of life, it is not surprising that non-tangible, computer-generated currencies would become a ‘natural’ feature of such a world.
While it has always been a haven for charlatans, traitors, cheats, thieves, liars, and serial adulterers, contemporary political life has become even more of a sham. The most glaring example of politics’ utter corruption can be seen in the recent departed chief executive officer of the US. Unless one abandons all critical thinking, Obummer was unqualified to be president because of the obvious fact that he was not born on American soil. Not only did this disqualify him, but his educational and professional backgrounds have not been verified. Neither his collegiate records nor his supposed teaching career at the University of Chicago Law School have ever been exposed to public scrutiny. From the few utterances he has made about his supposed specialty – constitutional law – it appears that he has only a rudimentary knowledge of the subject.

This post was published at Zero Hedge on Aug 21, 2017.

Corporate Media Continues to Pump Out Fake News on Wall Street Crash of 2008

When there is an epic financial crash in the U. S. that collapses century old Wall Street institutions and brings about the greatest economic collapse since the Great Depression, one would think that the root causes would be chiseled in stone by now. But when it comes to the 2008 crash, expensive corporate media real estate is happy to allow bogus theories to go unchallenged by editors.
What is happening ever so subtly over time is that the unprecedented greed, corruption and unrestrained manufacture of fraudulent securities by iconic brands on Wall Street that actually caused the crash are getting a gentle rewrite. The insidious danger of this is that Wall Street is never reformed or adequately regulated – that it remains a skulking financial monster with its unseen tentacles wrapped tightly around every economic artery of American life, retaining its ever present strangulation potential.
On August 10 of this year, Wall Street Journal reporter James Mackintosh penned the following astonishing sentence: ‘The global financial crisis began 10 years ago this week, when a French bank suspended three money-market funds. What savers thought was money turned out to be merely credit, and the realization rapidly trashed U. S. money-market funds and the global banking system.’

This post was published at Wall Street On Parade on August 15, 2017.

LIBOR to end in 2021…as regulator says bank benchmark is untenable

Libor, the nearly 50-year-old global borrowing benchmark that became a byword for corruption, is headed for the trash heap of history.
The U.K. Financial Conduct Authority will phase out the key interest-rate indicator by the end of 2021 after it became clear there wasn’t enough meaningful data to sustain the benchmark that underpins more than $350 trillion in securities, Andrew Bailey, the head of the regulator, said in a speech Thursday at Bloomberg’s London office.
The end of the London interbank offered rate, or Libor, is welcome on many levels for regulators. It was tied to some of the banking industry’s biggest scandals, leading to about $9 billion in fines and the conviction of several bankers for manipulating the rate. Relying on the opinions of industry insiders to set the daily estimates based on interbank lending — some in markets that saw fewer than 20 transactions annually — was unacceptable, Bailey said.
“Libor is trying to do too many things: it’s trying to be a measure of bank risk and it’s trying to substitute for interest-rate risk markets where really it would be better to use a risk-free rate,” said Bailey in an interview with Bloomberg News before the speech. “It’s had to come to a conclusion.”

This post was published at bloomberg

There Is One Way Out of Debt-Serfdom: Fanatic Frugality

Debt is serfdom, capital in all its forms is freedom.
If we accept that our financial system is nothing but a wealth-transfer mechanism from the productive elements of our economy to parasitic, neofeudal rentier-cartels and self-serving state fiefdoms, that raises a question: what do we do about it?
The typical answer seems to be: deny it, ignore it, get distracted by carefully choreographed culture wars or shrug fatalistically and put one’s shoulder to the debt-serf grindstone.
There is another response, one that very few pursue: fanatic frugality in service of financial-political independence. Debt-serfs and dependents of the state have no effective political power, as noted yesterday in It Isn’t What You Earn and Owe, It’s What You Own That Generates Income.
There are only three ways to accumulate productive capital/assets: marry someone with money, inherit money or accumulate capital/savings and invest it in productive assets. (We’ll leave out lobbying the Federal government for a fat contract or tax break, selling derivatives designed to default and the rest of the criminal financial skims and scams used so effectively by the New Nobility financial elites.)

This post was published at Charles Hugh Smith on THURSDAY, MAY 04, 2017.

Battle Royale: JPMC’s Dimon and Minneapolis Fed’s Kashkari Battle Over Bank Capital

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.
Bloomberg has nice piece on the battle between JPMorganChase’s Jamie Dimon and the Minneapolis Fed’s Neel Kashkari.
(Bloomberg) Jamie Dimon is America’s most famous banker, and Neel Kashkari is its most outspoken bank regulator, so it’s not a shock that they would eventually come to blows. What’s interesting is that their contretemps is over an acronym that most Americans have never heard of, but one that may be central to preventing another recession.
TLAC, which is pronounced TEE-lack, is something you need to know about if you want to judge the sparring between Dimon, the well-coiffed chief executive of JPMorgan Chase & Co., and Kashkari, the very bald man who ran for governor of California on the Republican ticket and is now president of the Federal Reserve Bank of Minneapolis.
On April 6, Kashkari went after Dimon in a way that circumspect central bankers ordinarily don’t. In an essay published on Medium and republished on the Minneapolis Fed website, he challenged Dimon’s assertion in his annual letter to shareholders that 1) there’s no longer a risk that taxpayers will be stuck with the bill if a big bank fails, and 2) banks have too much capital (meaning an unnecessarily thick safety cushion). Wrote Kashkari: ‘Both of these assertions are demonstrably false.’

This post was published at Wall Street Examiner by Anthony B Sanders ‘ April 14, 2017.