from Physical Gold Fund:
by Charles Hugh Smith, Of Two Minds:
Trade is only one manifestation of much deeper economic insecurities and imbalances.
China’s enormous successes–raising hundreds of millions out of poverty, landing a rover on the dark side of the moon, etc.–are well known. Less appreciated is China’s increasing vulnerability to financial instability arising from asymmetries that cannot be resolved by tweaking trade policies.
As this article explains, The China Story That Is Far Bigger Than Apple, China’s trade balance–trade surpluses for decades– is close to slipping into trade deficits.
At the same time, China’s once-mighty pool of savings has diminished as consumption has risen. As a result, China now needs foreign investment more than it did in the previous era.
from Sputnik News:
MOSCOW (Sputnik) – The European Union is planning to switch from US dollars to euros when paying for the oil supplies from Iran, a diplomatic source told Sputnik.
On Tuesday, EU foreign policy chief Federica Mogherini said that after talks with the foreign ministers of the United Kingdom, France, Germany, and Iran in Brussels that the sides had agreed to work out practical solutions in response to the US withdrawal from the Joint Comprehensive Plan of Action (JCPOA), known as the Iran nuclear deal, within the next few weeks. In particular, the European Union and Iran would maintain and deepen economic ties, including in the area of oil and gas supplies.
by Karl Denninger, Market Ticker:
Right along with him on the pedestal will be Donald J. Trump who has repeatedly “urged” The Fed to further pump asset bubbles and insane “monetary policy” that has not and cannot work.
The claim is that there has been “no — or very little — inflation.” That’s only true if you exclude everything that has ramped in price, such as health insurance, car insurance, car prices, various assets and more.
But if you accept that “there has been no inflation” then the Fed policy has been an abject failure since it was supposed to produce inflation.
by James Howard Kunstler, Russia Insider:
“This homework assignment should be given to the Democratic members of congress, since they are otherwise preoccupied only with hunting for Russian gremlins and discovering new sexual abnormalities to protect and defend.”
Poor old Karl Marx, tortured by boils and phantoms, was right about one thing: History repeats itself, first as tragedy, second as farce. Thus, I give you the Roman Empire and now the United States of America. Rome surrendered to time and entropy. Our method is to drive a gigantic clown car into a ditch.
Is anyone out there interested in redemption? I have an idea for the political party out of power, the Democrats, sunk in its special Okefenokee Swamp of identity politics and Russia paranoia: make an effort to legislate the Citizens United calamity out of existence. Who knows, a handful of Republicans may be shamed into going along with it. For those of you who have been mentally vacationing on Mars with Elon Musk, Citizens United was a Supreme Court decision — Citizens United v. Federal Election Commission 558 U.S. 310 (2010) — which determined that corporations had the right, as hypothetical “persons,” to give as much money as they liked to political candidates.
This “right” devolved from the First Amendment of the constitution, the 5-4 majority opinion said — giving money to political candidates and causes amounts to “freedom of speech.” The Citizens United ruling opened the door for unlimited election spending by corporations and enormous mischief in our national life. Then-President Obama — a constitutional law professor before his career in politics — complained bitterly about the opinion days later in his State of the Union address, saying that the court had “reversed a century of law to open the floodgates, including foreign corporations, to spend without limit in our elections.”
And for the next seven years he did absolutely nothing about it, nor did the Democratic Party majority in congress. Rather, they vacuumed in as much corporate campaign money as possible from every hokey political action committee (PAC) from sea to shining sea, especially in the 2016 presidential election starring Hillary “It’s My Turn” Clinton. It turned out to not be her turn in large part because the voters noticed the stench of corruption wafting off this toxic flow of corporate money, which Hillary was using to vastly outspend her billionaire opponent, troll that he was.
Of course, corporations have not always been what they are deemed to be today. They evolved with the increasingly complex activities of industrial economies. Along the way — in Great Britain first, actually — they were deemed to exist as the equivalent of legal persons, to establish that the liabilities of the company were separate and distinct from those of its owners. In the USA, forming a corporation usually required an act of legislation until the late 19th century. After that, they merely had to register with the states. Then congress had to sort out the additional problems of giant “trusts” and holding companies (hence, anti-trust laws, now generally ignored).
In short, the definition of what a corporation is and what it has a right to do is in a pretty constant state of change as economies evolve. And insofar as the current economy is sinking like the USS Titanic — and our republic as a mode of governance with it — surely the time has come to redefine in legislation the role and existential nature of a corporation in this polity. This homework assignment should be given to the Democratic members of congress, since they are otherwise preoccupied only with hunting for Russian gremlins and discovering new sexual abnormalities to protect and defend.
The crux of the argument is that corporations cannot be said to be entirely and altogether the equivalent of persons for all legal purposes. In law, corporations have duties, obligations, and responsibilities to their shareholders first, and only after that to the public interest or the common good, and only then by pretty strict legal prescription. It may be assumed that the interests of corporations and their shareholders are in opposition to, and in conflict with, the public interest. And insofar as elections are fundamentally matters of the public interest, corporations must be prohibited from efforts to influence the outcome of elections.
That’s your assignment Chuck Schumer, Nancy Pelosi, and the rest of the Democratic Party leadership. Get serious. Show a little initiative. Do something useful. Draw up some legislation.
Get behind something real that might make a difference in this decrepitating country.
Read More @ Russia-Insider.com