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.

State-Level Corruption And Theft

Ever wonder about property taxes, how they’re set, and what they cover?
Specifically, the largest component of most property-tax assessments are for schools.
Virtually every State Constitution calls forth a State duty to provide a free public education.
Ok. Fair enough. I can argue against that quite-easily but so long as it’s present in State Constitutions the law has to be followed in that regard.
But on whom should the funding costs fall?
Answer: Those closest to the output of the program, who thus have every incentive to do something about it if it sucks.
That’s not you, as a common citizen. If the schools suck in your local area you don’t, for the most part, get the direct costs. If you’re a parent at age 18 your offspring are no longer your responsibility. You can throw them out of the house — literally.
Now it’s certainly true that the indirect costs wind up on the citizens — mostly through crime and social dependence.
The direct costs fall on the local employers.

This post was published at Market-Ticker on 2017-09-10.

YOU HAVE BEEN WARNED: The Situation In The Markets Is Much Worse Than You Realize

It’s about time that I share with you all a little secret. The situation in the markets is much worse than you realize. While that may sound like someone who has been crying ‘wolf’ for the past several years, in all honesty, the public has no idea just how dire our present situation has become.
The amount of debt, leverage, deceit, corruption, and fraud in the economic markets, financial system, and in the energy industry are off the charts. Unfortunately, the present condition is even much worse when we consider ‘INSIDER INFORMATION.’
What do I mean by insider information… I will explain that in a minute. However, I receive a lot of comments on my site and emails stating that the U. S. Dollar is A-okay and our domestic oil industry will continue pumping out cheap oil for quite some time. They say… ‘No need to worry. Business, as usual, will continue for the next 2-3 decades.’
I really wish that were true. Believe me, when I say this, I am not rooting for a collapse or breakdown of our economic and financial markets. However, the information, data, and facts that I have come across suggest that the U. S. and global economy will hit a brick wall within the next few years.
How I Acquire My Information, Data & Facts
To put out the original information in my articles and reports, I spend a great deal of time researching the internet on official websites, alternative media outlets, and various blogs. Some of the blogs that I read, I find more interesting information in the comment section than in the article. For example, the Peakoilbarrel.com site is visited by a lot of engineers and geologists in the oil and gas industry. Their comments provide important ‘on-hands insight’ in the energy sector not found on the Mainstream Media.

This post was published at SRSrocco Report on SEPTEMBER 9, 2017.

“Greatest Fiscal Crisis In Our City’s History”: Hartford Warns It Will Be Broke In 60 Days

Well, that escalated quickly.
Just two months after Standard & Poor’s downgraded its general obligation debt to junk status, warning that the historic Connecticut capital could soon follow other once-proud cities like Detroit into bankruptcy, Hartford city officials confirmed as much when they warned on Thursday that the city could be forced into insolvency within two months if the state doesn’t provide emergency financial relief, the WSJ reports.
‘City officials warned Gov. Dannel Malloy, a Democrat, and state lawmakers that Hartford, which has a deficit approaching $50 million, wouldn’t be able to pay all of its bills within 60 days. Hartford officials said it would file for bankruptcy at that point unless the state legislature passes a budget that gives the city more funding or otherwise provides it with more cash.
‘We face the greatest fiscal crisis in our city’s history,’ officials said in a letter signed by Mayor Luke Bronin, Treasurer Adam Cloud and Thomas Clarke II, president of the court of common council.’
Hartford has been plagued by political corruption and a disintegrating corporate tax base – most recently exemplified by health-insurance giant Aetna’s decision to move its corporate headquarters away from the city, which was once proudly called ‘the Insurance Capital of the World.’

This post was published at Zero Hedge on Sep 8, 2017.

NURSE REFUSES TO BREAK LAW FOR COP. COP BRUTALLY ARRESTS NURSE. THE INTERNET IS STILL ON FIRE.

Whipping like wildfire across the internet late Thursday evening is arguably one of the more shocking incidents of brute force displayed by law enforcement in the United States – indeed, a rare characterization, given American policing’s interminable list of killings, beatings, corruption, lies, and general misbehavior – because, this time, the subject of a bully cop’s strong-arm tactics was a nurse.
A nurse, just doing her job.
The nurse, Alex Wubbels, doing her job in Salt Lake City’s University Hospital, tried to protect an unconscious patient from having their blood drawn without their ability to consent or refuse, by the order of Salt Lake City Police Detective Jeff Payne – whose demands unequivocally violated her employer’s strict policy against drawing blood from unconscious patients without warrant, prior consent, or unless the patient is under arrest – which would have supplanted said rule.
‘I’m just trying to do what I’m supposed to do,’ Wubbels told the detective on the July 26th video, released late Thursday by the Salt Lake Tribune.


This post was published at The Daily Sheeple on SEPTEMBER 1, 2017.

“Class Envy Run Amok” – Fund Manager Asks Trump To Pardon Michael Milken

Twenty-three years after former Drexel Burnham Lambert executive Michael Milken finished a 22-month minimum-security prison sentence, one fund manager is lobbying President Donald Trump to pardon his past convictions, arguing that Milken’s prosecution was an example of anti-banker hysteria run amok.
Wealth-management executive David Bahnsen told Bloomberg that he sent a plea to Trump asking that he pardon Milken, an innovator who is widely lauded in the financial world for helping to popularize junk bonds among a broader set of investors during the 1980s. Bizarrely, Bahnsen says he’s never met the man. Milken pleaded guilty to securities fraud charges in 1992, and was initially sentenced to 10 years in prison, though he only served 22 months.

This post was published at Zero Hedge on Sep 1, 2017.

Podesta Group Subpoenaed By Special Counsel Mueller In Russia Probe

Just over a year ago we wrote about Paul Manafort resigning from the Trump campaign amid outrage over his consulting firm’s ties to a lobbying campaign designed to sway American public opinion in favor of the Ukraine’s pro-Russsian government (see: FBI Probes Firm Belonging To Brother Of Clinton Campaign Chair For Ukraine Corruption Ties).
The top political news on Friday was the unexpected resignation of Trump campaign chairman, Paul Manafort, which was the result of emerging revelations that his political consulting firm, DMP International, had orchestrated a covert Washington lobbying operation in the period 2012-2014 on behalf of Ukraine’s then ruling political party, attempting to sway American public opinion in favor of the country’s pro-Russian government (which was overthrown in a CIA-orchestrated coup in early 2014).
As the AP reported yesterday, the lobbying included attempts to gain positive press coverage of Ukrainian officials in The New York Times, The Wall Street Journal and The Associated Press. Another goal: undercutting American public sympathy for the imprisoned rival of Ukraine’s then-president. At the time, European and American leaders were pressuring Ukraine to free her. Furthermore, under the U. S. Foreign Agents Registration Act (or FARA), US entities who lobby on behalf of foreign political leaders or political parties must provide detailed reports about their actions to the Justice Department.
Now, fast forward one year and it seems as though an honest attempt to destroy Trump’s campaign may ensnare another rather unlikely victim, namely The Podesta Group. As our readers are undoubtedly aware by now, The Podesta Group (PG) was co-founded by Hillary Clinton’s former campaign chairman, John Podesta, and is still run by his brother, Tony Podesta. Now, according The Daily Caller, PG, one of six lobbying firms that worked on Manafort’s campaign to get Ukraine into the European Union between 2012 to 2014, finds itself directly in the crosshairs of Special Counsel Mueller’s Russia probe.

This post was published at Zero Hedge on Aug 28, 2017.

Entire San Francisco Police Force Will Work The Patriot Prayer Rally

San Francisco city leaders are terrified of violence at a Patriot Prayer Rally. They have dubbed it a ‘rally by a far-right group’ and on Saturday, the city will bring in the entire police force work that day.
When a group that claims its intention is to promote peace, love and unity applies for government permission (a permit) to hold a prayer rally (free speech) in a national park, Democrats like Nancy Pelosi declare them ‘white supremacists’ and a ‘hate group.’ In fact, that was the first reaction after the city approved the permit for the Patriot Prayer Rally in the park. The second response? The city of San Fransisco is rallying their entire police force to make sure those who participate in the prayer rally stay in line.
Patriot Prayer bills itself as a peaceful First Amendment advocacy group that appears in locations where there have been past confrontations over free speech. For example, Patriot Prayer organized the Evergreen State College protest outside Seattle where Gibson was pepper sprayed by counter-protesters. According to their Facebook page, Patriot Prayer is also dedicated to fighting government corruption. Now it makes sense that they’ve been labeled as ‘extremists’ by the left.

This post was published at shtfplan on August 24th, 2017.

Gun Control Laws Have Failed Latin America

It’s no secret that Latin America is rife with violence. A recent ranking from the Citizen’s Council for Public Security and Criminal Justice(CCSPJP) further illustrates this point with the top 10 most violent cities in the world being exclusively located in Latin America. Additionally, Latin America has the dishonor of having 43 of the 50 most violent urban centers located in the region.
These shocking levels of violence can be attributed to several factors – corruption, failed drug war policies, and the lack of rule of law in the region.
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But there is one elephant in the room that is largely ignored in the discussion of crime in Latin America: the stringent gun-control laws present in these countries.
While the previously mentioned factors cannot simply be discounted, the lack of coverage on Latin American gun control policy is rather alarming.
Countries like Brazil, Colombia, Mexico, and Venezuela feature some of the most draconian gun control policies in the region. With crime rates at already high levels, gun control simply makes matters worse for law-abiding citizens fearful of criminals.

This post was published at Ludwig von Mises Institute on August 24, 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.

The Chinese Economy’s Fatal Flaws

Dr. Per Bylund’s recently published article poignantly states one of the core problems in the Chinese economy and its the state-manipulated Keynesian foundation. I do agree with his opinion. And if we dig deeper into the exact situation of Chinese economy, we will find that it’s a typical failing of the Keynesian, cronyist system.
By using the perspective of Austrian business cycle theory, lets take a look at China’s real estate industry, which is suffering more and more painfully from artificial credit issued by China’s central bank, the People’s Bank of China (PBC). During the 2008 global economic crisis, China’s central government issued the famous RMB 4 Trillion Stimulus Package Plan (equaling to $586 billion). Since 2009, the Chinese real estate economy has already suffered from three small economic cycles. As it is becoming more difficult for real estate companies to live on artificial prosperity, the duration of every business cycle has become shorter than the previous one. We also see more and more ghost cities because of the economic boom in every sub-economic cycle. There were at least 12 ghost cities founded in 2013, and the number of them jumped to at least 50 in 2017! Bankruptcy is happening more frequently among Chinese real estate enterprises. Since 2016, at least three real estate companies – with a combined debt of at least RMB 763 million – have gone bankrupt. The story of bankruptcy is continuing, with one of the biggest real-estate-driven enterprises, Wanda Group, facing financing problems. If Wanda no longer has access to cheap debt, it might not be able to refinance or roll over all its debt again. If Wanda has to face bankruptcy, it could possibly accelerate an end of the the current Chinese boom.
The data from the Chinese local governments is also not optimistic; their debt levels have reached almost RMB 25 trillion (US$ 4 trillion) at the end of 2014. In 2015, even the PBC admitted in one of its annual reports saying that China’s financial system is facing higher instability and uncertainty.

This post was published at Ludwig von Mises Institute on August 22, 2017.

Wall Street’s Latest Plot: Blame the Financial Crash on the French

Wall Street appears to have a plan to get the deregulation it wants by pinning the start of the epic financial crash of 2007-2010 on (wait for it) the French, rather than its own unbridled greed, corruption and toxic manufacture of junk bonds known as subprime debt that it paid to have rated AAA by ethically-challenged and deeply conflicted rating agencies. (The same rating agencies that are getting paid by Wall Street to rate its debt issues today.)
One of the men helping to peddle this narrative is Steve Hanke, a Senior Fellow at the Cato Institute, a taxpayer-subsidized nonprofit that was secretly owned by the billionaire Koch brothers for decades.
Hanke’s bio at Cato lists him as a Professor of Applied Economics at John Hopkins University in Baltimore and provides the following titillating background:
‘Prof. Hanke served as a State Counselor to both the Republic of Lithuania in 1994-96 and the Republic of Montenegro in 1999-2003. He was also an Advisor to the Presidents of Bulgaria in 1997-2002, Venezuela in 1995-96, and Indonesia in 1998. He played an important role in establishing new currency regimes in Argentina, Estonia, Bulgaria, Bosnia-Herzegovina, Ecuador, Lithuania, and Montenegro. Prof. Hanke has also held senior appointments in the governments of many other countries, including Albania, Kazakhstan, the United Arab Emirates, and Yugoslavia.’

This post was published at Wall Street On Parade on August 21, 2017.