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Reports Say China Scrubbed Israel From Online Maps

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Reports Say China Scrubbed Israel From Online Maps

China’s scathing criticisms of Israel’s military campaign in Gaza, where the death toll has surpassed 8,500 mostly civilians, have grown of late – but this week escalated to a new precedent. 

The Wall Street Journal has confirmed internet users’ deepening suspicions that the country of Israel has disappeared from several online maps after the ‘mistake’ began to gain increased attention. “Internet users in China are expressing bewilderment that the name Israel doesn’t appear on leading online digital maps from Baidu and Alibaba, an ambiguity that matches Beijing’s vague diplomacy in the region and contrasts with its attentiveness to maps generally,” WSJ writes Tuesday. But some pundits have said the claim is misleading, stressing that many Chinese maps don’t label “disputed areas” by default.  

The internationally recognized borders of the Israeli state are also missing. The report says that Israel may have gone ‘missing’ on the popular maps since the start of the Oct.7 conflict and Israel’s subsequent bombing campaign on Gaza. 

But as WSJ also points out, neither major Chinese company has publicly acknowledged the missing country information:

The same is true with online maps produced by Alibaba’s Amap, where even small nations like Luxembourg are clearly marked. Neither company responded to questions on Monday. It is unclear whether the development is new, though it has been discussed by Chinese internet users since war broke out.

China’s government has over the years cried foul and levied fines over maps published elsewhere online, such as on hotel websites, for failing to strictly adhere to Beijing’s territorial claims, like leaving off a nine-dotted line stretching around the South China Sea that isn’t internationally recognized.

Indeed this could be a subtle game of ‘retaliation’ for when Western sources publish maps which Beijing vehemently disagrees with, such as depicting Taiwan as independent from the Chinese mainland.

Additionally, China has increasingly aligned its foreign policy with the Global South in recent months, and the Gaza crisis is a further demonstration of this trend.

In statements from the foreign ministry, Chinese officials have consistently highlighted Israel’s bombing of Gazan civilians, instead of focusing on denunciations of the Oct.7 terror attack by Hamas (as the US and much of the West has done). “Every country has the right to self-defense, but every country should abide by international humanitarian law and protect the safety of civilians,” FM Wang Yi told his Israeli counterpart Eli Cohen a week ago.

And then there’s this provocative tweet from the Chinese embassy in France, rejecting Western claims of “genocide” against Uyghurs in Xinjiang, while highlighting that Gaza lies in ruins

“As long as [any resolution] is conducive to peace, China will firmly support it; as long as [any resolution] is conducive to Palestinian-Israeli reconciliation, China will do its best,” Wang had said. It will be interesting to see what becomes of the clearly deteriorating Israel-China relations by the end of this current crisis. 

Tyler Durden
Tue, 10/31/2023 – 18:05

Sen. Josh Hawley To Introduce Bill Reversing Citizens United

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Sen. Josh Hawley To Introduce Bill Reversing Citizens United

Authored by Philip Wegmann via RealClearPolitics.com,

More than a decade ago, President Obama scolded the Supreme Court for reversing “a century of law” and opening “the floodgates for special interest” to “spend without limit in our elections.”

It was during the State of the Union, and while the former president qualified his criticism by offering “all due deference to the separation of powers,” Justice Samuel Alito was caught on camera muttering an objection.

Seated in the front of the House of Representatives, Alito seemed to say, “Not true.”

Meanwhile, Chief Justice John Roberts, who had employed a young lawyer from Missouri just two years prior, didn’t move a muscle.

Sen. Josh Hawley told RealClearPolitics that the episode “predates me,” but on the substance of the question, the senior Republican senator from Missouri, the same young lawyer who once clerked for Roberts on the high court, sides with Obama, not the conservative justices.

Albeit for very different reasons.

“I am an originalist,” he said in a Monday interview, “and I don’t think you can make an originalist case for business corporations being treated like individuals when it comes to the right to political speech.”

Thirteen years removed from that exchange between Obama and the justices, Hawley plans to introduce legislation that would gut Citizens United v. FEC, RCP is first to report.

“My goal is to get corporate money out of our politics,” he said.

His aim is to stop “corporate influence” from “controlling our elections.”

This kind of rhetoric is not unusual. But it usually comes from Democrats.

President Biden pledged to overturn Citizens United and bring to heal the Super PACs that shower politicians with the kind of unlimited anonymous donations known colloquially as “dark money.” His closest ally in this effort: Progressive Socialist Sen. Bernie Sanders, who blames the decision for turning America into “an oligarchy” where billionaires “buy elections.”

And now this coalition includes at least one Republican. Hawley blames Citizens United for giving corporations free rein to “sink their teeth” into the American political process.

The Hawley legislation would ban publicly traded corporations from making independent expenditures and giving to Super PACs while prohibiting them from cutting political ads or engaging in “other electioneering communications.” Ironically, however, it would not stop the conservative group that upended modern election law. Citizens United is itself a non-profit and, therefore, wouldn’t be affected.

The bill likely has little chance of making it to the president’s desk. Similar proposals have died in committee. All the same, the legislation represents the latest fissure between the Grand Old Party and the corporations. As the Republican realignment continues, on this issue, Hawley hammers the wedge.

“Let’s get one thing straight,” Hawley bellowed this summer, “Corporations are not people.”

The crowd, this one gathered in Washington for the social conservative Faith and Freedom Coalition summit, barely stirred.

But then they erupted when the populist senator continued, “I’ve got news for these woke corporations: We are not going to surrender this nation to the cultural Marxists in the C-suite.”

Would Hawley still seek to muzzle corporations if the content of their speech was different, though? “Well, actions do have consequences,” the senator replied.

Bad trade deals, monopolies over everyday pharmaceuticals, and offshore industries – Hawley blames all of this on Wall Street getting involved in politics, saying that politically connected corporations “have been in favor of almost everything that has been devastating for us.” Beyond economics, he added, “what’s new in the last two or three years” is those same corporations “now want to dictate voting laws in the states” and “now want to dictate rules on biological men playing women’s sports.”

For example, Coca-Cola and Delta Airlines, two of the biggest employers in Georgia, publicly oppose that state’s efforts to tighten voter registration requirements in the wake of the 2020 election. Another example is the dark money donors who provided $145 million to pro-Biden groups that year, helping pave his way to the White House and dwarfing the $28.4 million spent on behalf of Donald Trump.

“That is not a reason in-and-of-itself to get the Constitution right,” Hawley cautions, however. While the senator insists that Democrats benefit disproportionately from dark money, he argued that “this isn’t a game that is good for anybody” and “most importantly, the voters don’t benefit from it.”

This is consistent with the general disposition of the senator who once wrote an adoring biography of Teddy Roosevelt. It is also an evolution from a politician who welcomed the endorsement and cashed the checks of Citizens United during his first campaign. Hawley does not dispute the development.

A closer examination of the history, he said, “looking back at how the Founders thought of corporations” reveals that the earliest Americans “were deeply skeptical of the corporate form.” On the jurisprudence question, he added, “I just don’t think that history supports the outcome that the Court ultimately got to there.”

More recent history can be found in the conservative opinion pages of the Wall Street Journal. Reflecting the view of that editorial board, Bradley Smith, a former chairman of the Federal Election Commission, celebrated the anniversary of Citizens United in 2020, writing that “the ruling has empowered small-dollar donors and political outsiders, not corporations.” The donor who writes a check from the kitchen table, the former FEC chair argued, is now king in American politics, not the Super PAC.

Hawley suggests that those who doubt the power of corporate dollars in politics visit Capitol Hill. “I’ve seen it with my own eyes,” he said before pointing to TikTok, the Chinese-owned social media company.

“A year ago, we were talking about a nationwide ban on TikTok. I was able to get one passed at the federal level last December,” he said.

“Today, it is difficult to get even my most ardent anti-tech partners to talk about this because TikTok has gone out and spent incredible sums of money to get influence on both sides of the aisle.”

According to federal disclosures, TikTok and its parent company spent more than $13 million on lobbying the federal government in the last four years. A spokesman for the company declined to address this when RCP requested comment.

Increasingly, Hawley is more likely to echo T.R. than Ronald Reagan. He notes how Roosevelt warned against “the malefactors of great wealth” and speaks admirably of his wars with the railroads. The senator also points to scandals of the past, like the Teapot Dome Scandal, as a prologue for modern malfeasance.

“Not a lot has changed in the last century. They would do that today, if they could get away with it,” Hawley said of disparate corporate actors from Silicon Valley to Wall Street without naming anyone in particular.

“And who knows,” he added, “maybe they are.”

Republicans who once felt at ease among corporate power are increasingly skeptical. Former House Speaker Kevin McCarthy publicly divorced the Chamber of Commerce this year. Ohio Sen. JD Vance is currently at war with the railroads over safety regulations. Businessman-turned-presidential-candidate Vivek Ramaswamy seemed to rebuke the ghost of Reagan during the August primary debate.

And last month, Hawley landed well to the left of the White House, but only slightly to the right of the likes of Sanders and Rep. Alexandria Ocasio-Cortez, when he proposed capping the annual percentage rate of credit cards at 18%.

The Hawley project then can perhaps be best described as an effort to export traditional conservative skepticism of big government to the realm of big corporations. “What we find, and what lawsuits like the Missouri v. Biden case exposed, is that big corporations and big government work hand in hand,” he said referencing the federal case that found the White House lobbied social media companies to remove content critical of the administration.

“I would just say to my conservative friends, listen, there is no reason we should want to empower these mega-corporations, who are already in bed and colluding with the government, and give them control over our elections and over our speech,” Hawley said.

It remains to be seen whether Republicans will listen, including Minority Leader Mitch McConnell. He celebrated the initial action by the Supreme Court.

“For too long, some in this country have been deprived of full participation in the political process,” McConnell said in a statement when the conservative court handed down Citizens United, celebrating the decision as “an important step” in “restoring the First Amendment rights of these groups.”

A decade later, McConnell added, “My warning to corporate America is to stay out of politics.”

As the Washington Post reported at the time, the Republican leader included a qualification during a local news conference.

“I’m not talking about political contributions,” he said.

Tyler Durden
Tue, 10/31/2023 – 17:45

Stocks Spooked For 3rd Straight Month As WW3 Fears Spark Surge In USD, Gold, & Crypto (Not Oil)

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Stocks Spooked For 3rd Straight Month As WW3 Fears Spark Surge In USD, Gold, & Crypto (Not Oil)

Today saw wage inflation rising faster than hoped (hawkish for Fed) and consumer confidence worsened (with inflation expectations jumping).

Not exactly a great way to end the month.

But, as Financial Conditions tightened for the 3rd straight month in October, they failed to spook the economy

Source: Bloomberg

Alongside a growing realization that the US was not in imminent danger of slipping into recession (and was in fact achieving one of its strongest growth quarters in the past 20 years), came another leg up in rates.

And, as Goldman’s Chris Hussey notes, as investor consensus around sustained US growth rises, the expectation that the Fed will soon need to CUT rates falls. And if the Fed is not going to cut rates in 2024 as much as many had previously anticipated, then rates may need to rise further towards the ultra-short term yield of the Fed Funds rate — currently 5.25%-5.50%.

Source: Bloomberg

Higher long-term rates are a headwind to valuations typically. And while the growth trajectory of the US economy has proven to be more robust than many anticipated, the forward outlook for growth is not as strong as what we have just experienced…

Source: Bloomberg

Small Caps tumbled over 7% in October, down for the 3rd month in a row and the worst monthly loss since Sept 2022. Nasdaq fell over 2% on the month, also its 3rd straight monthly loss in a row.

Notice stocks were initially bid on the Israel-Hamas war…

Source: Bloomberg

Utilities were the only sector to end October in the green with Energy and Consumer Discretionary the biggest losers…

Source: Bloomberg

The Long Bond rose over 30bps on the month – its 7th straight month of yield increases – but the short-end (2Y) was basically unchanged…

Source: Bloomberg

The yield curve (2s30s) steepened for the 4th month in a row to its highest since July 2022 (dis-inverting numerous times intra-month)…

Source: Bloomberg

Real yields (10Y) rose for the 6th month of the last 7 to their highest ‘since Lehman’ (Oct 2008)…

Source: Bloomberg

The dollar rallied for the 3rd straight month to its highest monthly close since Nov 2022…

Source: Bloomberg

Today’s price action in FX land was quite shocking…

USDJPY soared by more than 3 big figures from the overnight lows (weaker JPY vs USD) after the BoJ sent somewhat mixed messages with its YCC adjustment…

Source: Bloomberg

JPY is at its weakest since its spike in Oct 2022…

Source: Bloomberg

…although on a closing basis, this is the weakest yen relative to the dollar since June 1990…

Source: Bloomberg

EURUSD rallied early (despite weak GDP and lower inflation) but then humans looked at the reports and the euro dumped against the dollar…

Source: Bloomberg

Cryptos all soared in October with Solana outperforming….

Source: Bloomberg

This was Bitcoin’s best month since January 2023, surging above $35,000 for the first time since May 2022…

Source: Bloomberg

But Ethereum notably underperformed (its biggest monthly underperformance of bitcoin since Feb 2021)…

Source: Bloomberg

Spot Gold’s best month since March but futures saw their biggest month since July 2020, starting the ramp as Hamas attacked Israel from $1820 to $2020…

Oil (WTI futs) suffered its worst month since May (very close to its worst month since Nov 2021), but NatGas soared over 23% on the month – its biggest monthly gain since July 2022…

Source: Bloomberg

WTI erased all of the post-Israel attack gains and some…

Finally, some bigger picture malarkey. The US equity market continues to fight to maintain its extreme richness relative to GDP (Buffett’s favorite indicator), bouncing off its DotCom peak highs, and now back down to it – still massively over-valued…

Source: Bloomberg

Did Biden break the AI bubble?

Source: Bloomberg

Where to from here?

Happy Halloween!

Tyler Durden
Tue, 10/31/2023 – 16:00

Watch: Reporter Exposes White House Double Standards On “Extremists”

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Watch: Reporter Exposes White House Double Standards On “Extremists”

Authored by Steve Watson via Summit News,

White House Press Secretary Karine Jean-Pierre again refused to describe anti-Israel agitators as ‘extremists’ after Fox News reporter Peter Doocy noted that she is always talking about ‘MAGA extremists’.

“Does President Biden think the anti-Israel protestors in this country are extremists?” Doocy asked.

Jean-Pierre provided a word salad and pivoted immediately to talking about “Neo-Nazi’s in Charlottesville” in 2017.

Doocy exposed the double standard, noting “You guys talk about extremists—it is usually about MAGA extremists—so what about these protestors who are making Jewish students feel unsafe on college campuses? Are they extremists?”

Commentator Charlie Kirk noted “when asked about anti-Semitism she proceeds to reference completely unrelated Charlottesville and Trump’s so-called “Muslim Ban” that is looking better and better by the day.”

“Pure gaslighting drivel to avoid stating the obvious,” Kirk added:

Doocy wasn’t done there, further asking “Does President Biden look at these anti-Israel protests on college campuses and think, ‘It’s nice to see that the country’s youth are so involved, or does he think the next generation is doomed?”

Jean-Pierre again failed to answer the question, responding “There’s no place for hate in America, and we condemn any antisemitic threat or incident in the strongest terms.”

While she stated that she has been “very clear” about antisemitic incidents, including college ‘protesters’ chanting “death to jews,” in reality, Jean-Pierre originally stated last week that she had not seen “any credible threats” to Jews and instead touted “hate-fueled attacks” against Muslims, before doing a complete 180 the day after in response to strong criticism.

The Biden administration appears to only want to reference ‘extremists’ when it suits their narrative.

*  *  *

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Tyler Durden
Tue, 10/31/2023 – 15:40

Industrial CMBS Delinquency Soars As ‘Deep Freeze’ Hits CRE Market

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Industrial CMBS Delinquency Soars As ‘Deep Freeze’ Hits CRE Market

Commercial real estate building owners face significant headwinds as they try to refinance maturing loans in an environment of high rates and tightening credit conditions. New data reveals more rumblings in the commercial-backed securities (CMBS) market, as well as a ‘deep freeze’ spreading across the CRE space.

The new report by real estate company Trepp shows a significant surge in industrial CMBS delinquency rates. This spike is in addition to the rising delinquency rates in office tower CMBS, which have increased since the regional banking turmoil in March. Moreover, there’s a slight uptick in multi-family CMBS delinquency as well. 

In a separate report, The Wall Street Journal cites Trepp data that shows a deep freeze has engulfed the entire CRE market:

Total volume of commercial real-estate loans held by banks, the largest source of debt financing, declined during the first two weeks of October, according to analysis of Federal Reserve figures by Trepp, a data provider. Bank commercial property lending has declined for only two months since 2014. Most other two-week periods since 2014 have shown positive growth. 

Other debt providers are also in retreat. Only $28.2 billion of loans converted into commercial mortgage-backed securities have been issued this year, the lowest figure since 2011, according to Trepp. Additionally, the largest mortgage REITs halted loans to new borrowers in the first half of the year.

Overall, the entire commercial property debt market—including banks, commercial mortgage securities and nonbank lenders and others—increased less than 1% in the second quarter. That was the lowest quarterly rise since the first quarter of 2014, said Matthew Anderson, managing director of Trepp.

As previously noted, the majority of CRE debt is held by small to mid-size banks. A Goldman report said banks with less than $250 billion in assets hold more than 80% of these loans. These smaller banks are facing the most strain due to the ongoing pressures of deposit flight and high-interest rates. 

In March, we pointed out (“New “Big Short” Hits Record Low As Focus Turns To $400 Billion CRE Debt Maturity Wall“) that the regional banking crisis kick-started CRE turmoil. At the time, JPMMorgan Stanley, and Goldman Sachs all joined the CRE gloom parade. 

A more recent note from Morgan Stanley expects CRE office prices to slide 27.4% from peak to trough in 18 to 24 months this cycle, not that far off from the -34.9% during the GFC in 34 months, which will range from a decline of 15% for apartments to a stunning plunge of 40% for office. 

Michael Levy, chief executive of Crow Holdings, one of the country’s largest developers of rental apartments and industrial space, told WSJ that yield shocks in treasuries have “spooked the marketplace.” He warned: “Capital market malaise is crushing everybody.” 

Bankers and mortgage brokers told WSJ:

“Conditions aren’t as bad as during the global financial crisis when lenders had almost completely vanished and buyers disappeared. Loans are still available today but from fewer players and at a higher price.”

In places like San Francisco and Baltimore, some office tower prices have already crashed:

A recent survey by Blomberg of Terminal users revealed two-thirds of the 919 respondents believe the office tower market needs to crash before a rebound can be seen. 

Nearly half (44%) of respondents said tower prices will trough in the second half of 2024. About 29% believe 2025 or later. 

This slow-moving CRE train wreck is gaining momentum. 

Tyler Durden
Tue, 10/31/2023 – 15:20

Ball For Higher US Yields Is Back In Treasury’s Court

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Ball For Higher US Yields Is Back In Treasury’s Court

By Simon White, Bloomberg Markets Live reporter and strategist

Yields and risk assets face rising risks from the Treasury Department’s borrowing report Wednesday.

The BOJ’s underwhelming move today has taken some of the pressure off global rates, with US 10-year yields lower on the session. That puts the ball back in Treasury’s court on whether yields resume their upwards trend this week, with the remainder of its quarterly refunding announcement on Wednesday.

We got their borrowing estimates on Monday. The total was lower than expected, but it is still the largest amount borrowed in the fourth quarter. However, it’s the split between bills and bonds (by bonds here I mean all debt more than one-year maturity) that has the most significant near-term implications for liquidity and longer-term yields.

Issuance has been skewed towards bills this year, which has limited the liquidity impact on risk assets as money market funds (MMFs) have been able to absorb them by using inert liquidity already parked in the reverse repo (RRP) facility at the Fed. But bills are now over 20% of total debt outstanding, normally towards the higher end of where the Treasury prefers it.

The Treasury has stated it will remain above 20% for now, but it will gradually skew issuance away from bills. MMFs cannot directly buy longer-term debt, so the buying will shift to higher-velocity holders of reserves, e.g. households. This will extract liquidity from of the system, leaving stocks and other risk assets more vulnerable.

The Treasury’s account at the Fed (the TGA) will be increasingly pivotal here. Treasury aims for this to be $750 billion at the end of 4Q and 1Q (it’s ~$850 billion at the moment). Currently it is de facto backed by bill issuance.

But if its size is maintained as the Treasury expects and issuance moves away from bills, or the RRP becomes too low, then it will be increasingly backed by longer-term debt that will deplete higher-velocity reserves and pose a serious headwind for risk assets.

Tyler Durden
Tue, 10/31/2023 – 15:00

Putin Issues Scathing Attack On West’s Role In Gaza Crisis, Blames Spies For Dagestan Airport Riot

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Putin Issues Scathing Attack On West’s Role In Gaza Crisis, Blames Spies For Dagestan Airport Riot

Russia says police have arrested 60 people in the wake of the Sunday mob attack on an airport in the southern Russian republic of Dagestan. Local police in the Muslim-dominant region said they had identified 150 rioters who had breached airport security while looking for Jews said to have arrived on a flight from Tel Aviv. 

Dramatic videos had shown men swarming an airplane, with some even jumping on its wings and waiving Palestinian flags, while the passengers huddled inside and the captain refused to open the door. 

Screengrab of footage taken at Makhachkala Uytash airport in Dagestan, via Al Jazeera

Russia’s interior ministry said 20 people were injured in the whole ordeal, which many publications are calling an antisemitic pogrom wherein security personnel may have looked the other way or at least failed to intervene in time.

Interestingly, Russian authorities are busy blaming Ukrainian spies, though without evidence. For example, Sergei Melikhov, Dagestan’s governor, said the violence was the result of “our enemies” – and called out Kiev.

Putin spokesman Dmitry Peskov has also said the riot was “in large part the result of external interference” – in a further suggestion it was stoked by either Ukrainian or US operatives – and that it came in the context of “the horrors of what is happening in Gaza.” Peskov said, “It’s very easy for our ill-wishers to use these images to exploit the situation, to provoke and anger people.” The US promptly blasted and denied the charge.

President Putin has also added his voice in a Monday national security meeting, blaming the West for fueling instability and aggression in the Middle East which has aided Israel in its campaign resulting in “bloodied children, dead children”

Putin’s words, spoken before a meeting of his top security officials and televised, were some of the harshest yet issued on the Gaza crisis, at a moment the Palestinian death toll has surpassed 8,500.

Below is a selection of key Putin quotes from the Monday speech, as presented and translated by RT:

Israel committing collective punishment

He noted that the recent flare-up in the Middle East was triggered by the terrorist attack by Hamas militants against Israeli civilians. However, “instead of going after criminals and terrorists,” Israel has since resorted to “exact revenge [on the Palestinians] in the form of collective punishment.” 

Washington sows instability & chaos

The US and its allies are the “main beneficiaries of the global instability,” the Russian president said, arguing that the West was making “blood money” from various conflicts.

“The American-run world, with its single hegemon, is falling to pieces. It is gradually but irreversibly becoming a thing of the past,” Putin said.

On the Dagestan airport rioting

“Yesterday’s events in Makhachkala were inspired through social media, including from the territory of Ukraine, by the agents of Western services,” Putin said. He stressed that legitimate concerns for the Palestinians must not lead to outbreaks of violence.

Putin followed with: “They don’t want a lasting peace in the Holy Land. They want constant chaos in the Middle East. That’s why they are slandering the countries that are insisting on an immediate ceasefire in the Gaza Strip.”

Tyler Durden
Tue, 10/31/2023 – 14:40

Peter Schiff: The US Isn’t Japan… It’s Argentina!

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Peter Schiff: The US Isn’t Japan… It’s Argentina!

Via SchiffGold.com,

Does the massive national debt matter?

A lot of people don’t think it does, at least not yet. They point to Japan as an example of a country that has a much higher debt-to-GDP ratio and is doing fine. Peter Schiff said they’re looking at the wrong country. The US is more like Argentina than Japan.

The debt to GDP ratio in Japan is over 200%. The US debt-to-GDP ratio is only around 125%. If Japan is doing fine, why should we worry here in the US?

Peter notes the fact that Japan isn’t really doing “fine.”

They’re having a problem right now in Japan. They’re on the cusp of a crisis.”

The yield on a 10-year Japanese Government Bond is up to 8.7%. The yen recently broke the 150 mark. Meanwhile, price inflation is ratcheting up.

Don’t say, ‘Hey, Japan got off scot-free.’ They didn’t. They’re about to get their come-uppance.”

Peter said the US is in a different situation than Japan and it will get its come-uppance sooner. It will never get to a 200% debt-to-GDP ratio. The US won’t even get to 150%.

Why not?

Peter said the big difference between the US and Japan is that Japan is a net creditor and the Japanese people save at a much higher rate than Americans.

The world owes Japan a lot of money. Japan has a lot of that money in US dollar assets — in US Treasuries, in US mortgage-backed securities. Japan is going to sell and is selling those assets to try to mitigate the damage. Because Japan was so wealthy, and didn’t have to borrow from abroad, they were able to run up their debt higher before the crisis happened. That doesn’t mean they’re not going to have a crisis. They just had more rope before they finally hung themselves with that rope.”

The US doesn’t have as much rope because the country is broke.

We owe the world. We owe the world a fortune. We depend on the world to buy our paper, to buy our Treasuries. That’s our biggest export — our debt — our dollars and our debt. If we can’t export that anymore, the economy doesn’t function anymore. It’s built on that whole foundation, which is in the process of collapsing. So, you can’t draw some false comfort in the fact that Japan got away with it to 200% of GDP, or whatever it is, so we can too. We’re not Japan. We are worse. We’re Argentina.”

The Argentinian central bank is also in a war against price inflation it can’t win. It recently raised its interest rate to 133%. And that’s still below the country’s inflation rate.

Even though they have interest rates in the triple digits, it’s not going to work. It’s not going to stop inflation. The budget deficits are rising in Argentina. The national debt is rising. So, inflation is not going away. These rate hikes aren’t going to stop it because they can’t change the dynamic of government spending. We are in the same predicament.”

Some people will say you can’t compare the US and Argentina. Peter said, “Sure we can.”

The laws of physics work in America the same way they work in Argentina. Economics are laws. We have the same consequences.”

Peter noted that at one point, Argentina was one of the wealthiest nations in the world.

So, Argentina wasn’t always broke. They are now. So, if it can happen to Argentina, it can happen to America if we’re doing the same exact thing that they did – running these big deficits, printing all of this money.”

Tyler Durden
Tue, 10/31/2023 – 13:40

Israel Announces First Confirmed IDF Troop Deaths Of Gaza Invasion

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Israel Announces First Confirmed IDF Troop Deaths Of Gaza Invasion

(Update1323ET): Israel has admitted that this war will be long and costly, including in human lives on both sides. It has announced what the IDF says are its first troop casualties of the Gaza campaign which are being publicly disclosed by the military (there could be more that aren’t publicly disclosed). Per Israeli media citing the Tuesday words of Defense Minister Yoav Gallant:

There are battles against the forces that are operating [in Gaza] and the results and achievements on the battlefield are very high,” he says.

“Unfortunately, in war, there are also prices, and the prices in the last day were heavy prices,” Gallant continues.

“Despite that, we are also determined to continue and win,” he adds.

The IDF has said that two soldiers were killed and two seriously injured in fierce fighting in Gaza today and that “numerous” terrorists were killed.

More tanks have been observed pouring into northern Gaza, as the scale of the operation continues to grow by the day.

Missile fire and artillery exchanges have also continued on Israel’s northern border, where Hezbollah has been claiming successful anti-tank operations.

A mass casualty event is also being widely reported after Israeli airstrikes flattened Jabalia refugee camp, as WSJ details based on eyewitness accounts:

Explosions rocked a densely populated area north of Gaza City on Tuesday, flattening whole housing blocs, leaving deep craters and sending hundreds of casualties to a hospital, where officials said there were scores of dead.

The blasts hit the Jabalia refugee camp, where the Israeli military has been conducting frequent airstrikes as its ground offensive to topple Hamas picks up speed. Hamas-led health authorities said the bombs were Israeli airstrikes that had left hundreds dead and injured. The Israeli military said it was checking reports of strikes in that area.

Video footage aired by Palestinian television networks and Al Jazeera showed hundreds of people digging through the rubble with their hands to extract bodies and survivors, many of them children.

A local hospital has said at least 50 people were killed in the blasts but expects the death toll to rise as more casualties come in.

* * *

The Israel Defense Forces (IDF) has said Tuesday its troops are busy engaged in “fierce battles against Hamas terrorists deep in the Gaza Strip” and that multiple Hamas positions and anti-tank guided missile units have been destroyed. 

A military statement also said troops had killed dozens of terrorists as tanks push deeper into northern and central Gaza, after yesterday tank units cut off a key north-south highway which links both halves of the Strip. 

Northern Gaza, Planet Labs PBC/Handout via Reuters

A statement from Hamas was cited in regional media as saying, “Israeli military vehicles are being seen on the Salahuddin Highway trying to move west,” and affirmed that “Israeli forces also entered the strip from northwestern Gaza. Armored vehicles can now be seen in the al-Karam district north of Gaza City.”

Amid ongoing airstrikes accompanying the ground invasion, the Palestinian death toll has surpassed 8,500 as of Tuesday. For the first time this has pushed the total number of people killed in the conflict from both sides near 10,000 – as more than 1,400 Israelis have been confirmed dead. 

A fresh New York Times report has examined satellite imagery taken Monday morning which “shows the substantial scale of one of Israel’s main advances into northern Gaza, where hundreds of armored vehicles have pushed miles past the border into urban areas on the outskirts of Gaza City.” According to more from the detailed report:

Israel has so far stopped short of the rapid and overwhelming ground assault that many analysts expected. But the imagery, taken on Monday morning by Planet Labs, a commercial satellite company, shows a significant invading force: many groups of dozens of armored vehicles cutting through open fields and amassing in urban spaces.

The image provides the clearest picture yet of how far one the main lines of Israel’s invasion has moved into Gaza and the destruction it has caused. Israeli vehicles are seen as far south as the neighborhood of Al Karama, north of Gaza City. Videos released by the Israeli military had previously shown lines of tanks operating near the border area.

Many nearby buildings appear to have been heavily damaged or completely destroyed by airstrikes. Hundreds of craters from airstrikes and shelling are visible, including in homes and on roads, and apartment blocks have been flattened.

Israel has also said it has begun to attack Hamas militants inside the sprawling network of tunnels which forms the base of the group’s operations in the Gaza Strip.

Regional tensions and the potential for the war to spread have grown after PM Netanyahu said in a Monday night address amid international calls for a ceasefire or at least humanitarian pause that, “Calls for a ceasefire or calls for Israel to surrender to Hamas, to surrender to terrorists, to surrender to barbarism, that will not happen.”

He was also pressed by reporters over whether he would resign amid the growing scandal over Oct.7 intelligence and military preparedness failures. Netanyahu merely said he plans to “resign” Hamas: “We’re going to resign them to the dustbin of history. That’s my goal. That’s my responsibility.”

The UN is now warning that the war is spilling over into Syria, after Israel struck more targets in Syria and Lebanon overnight, and after Hezbollah fired more projectiles. Israel in the last two weeks has already struck Damascus and Aleppo international airports several times.

And related to regional tensions with Iran, Shia Houthi rebels in Yemen appear to have stepped up their threats and attacks aimed at Israel. The group’s military spokesman on Tuesday announced a “third operation targeting Israel with more to come.” A Houthi military spokesman has vowed there are more attacks to come in what amounts to a ‘declaration of war’. According to Al Jazeera, a drone sent from Yemen made it to southern Israeli skies

Yemen’s Houthi rebels claim to have launched a drone attack towards Israel’s southern city of Eilat in “retaliation” for the war in Gaza.

Israel reported having destroyed an unidentified “aerial target” over the Red Sea on Tuesday morning.

It was successfully intercepted, Israeli officials have said. “The incident triggered air raid sirens in the popular Red Sea tourist resort of Eilat and sent residents running for shelter,” the Al Jazeera report continues, indicating further: 

After an initial warning of a possible “hostile aircraft intrusion”, the military said in a statement, its “systems identified an aerial target approaching Israeli territory”.

Yesterday at the UN, Israel’s ambassador Gilad Erdan in a dramatic speech, which also saw his delegation wearing yellow star of David emblems and vowing “never again”, ripped the “Nazi regime” of the Islamic Republic of Iran.

“Just like the Nazi regime, the Ayatollah’s regime (in Iran) sows death and destruction everywhere it touches,” the Israeli ambassador to the UN said. “The Islamic Nazi regime of Iran is responsible for aiding terrorists around the globe, and working toward destroying every value the civilized world holds dear. Today the world is watching the rise of a Shiite Islamic Reich. Yet just like the rise of Nazism, the world is deafeningly silent.”

Israeli Ambassador to the UN Gilad Erdan wears a yellow Star of David at the UN Security Council on October 30, 2023, screenshot via Maariv.

The stunt was met with criticism and pushback internationally, and especially from Yad Vashem (The World Holocaust Remembrance Center), whose chairman Dani Dayan had this to say… 

“We were deeply saddened to witness members of the Israeli delegation to the UN donning yellow badges.” He emphasized that such a move trivializes and dishonors the Holocaust and its victims, and harms the reputation of Israel itself. 

Israel and the US have continued to ultimately blame Tehran for what its proxies are doing, particularly related to Hezbollah, paramilitaries in Syria, and now Houthis after it has sent a few rockets toward Israel in the last couple weeks (the first which was intercepted by a US warship off Yemen’s coast). 

Tyler Durden
Tue, 10/31/2023 – 13:23

“The Bellwether Has Sounded”: Musk Says “Great Wakening From Woke Has Happened” After Southpark Nails Coffin

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“The Bellwether Has Sounded”: Musk Says “Great Wakening From Woke Has Happened” After Southpark Nails Coffin

The backlash to woke culture – which is championed by annoying, politically correct, judgemental, authoritarian, censorious, hypocritical self-anointed masters of the universe – is reaching a crescendo.

Last week we noted how Disney punted it’s Snow White remake into 2025 as Southpark destroyed them for woke casting in general.

Also last week, Arkansas Governor Sarah Huckabee Sanders (R) signed an executive order eliminating ‘woke, anti-women words’ from state government use.

There’s even a “get woke go broke” ETF in the works, an ‘anti-woke AI chatbot‘, oh – and the fact that forcing woke trans culture down the throats of Bud Light consumers has killed the brand.

In short, corporations have realized that going woke is killing profits.

To that end, on Monday, Twitter owner Elon Musk declared “The great wakening from woke has happened,” which he says is “good for civilization.”

When asked if Southpark had been a factor, Musk replied: “It is the bellwether.”

The richest man in the world didn’t stop there! As Summit News notes:

Naturally, the woke crowd in the replies were not happy:

Reeeeee!

Musk has long spoken out against what he describes as “the woke mind virus,” but it appears he now believes the worm has turned.

Musk previously described wokeness as “one of he biggest threats to modern civilisation,” adding “At its heart, wokeness is divisive, exclusionary, and hateful. It basically gives mean people… a shield to be mean and cruel, armored in false virtue.”

Meanwhile, conservatives Right Said Fred are just too sexy to believe Musk…

 

Tyler Durden
Tue, 10/31/2023 – 13:20