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UK To Announce A Stealth Tax Raid On Pensions

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UK To Announce A Stealth Tax Raid On Pensions

It’s remarkable to think that it was just 6 weeks ago when the UK revealed its biggest spending spree in decades – one which sparked a bond market crisis, a political shake up and the resignation of the now former PM Liz Truss. Fast forward to today when in a dramatic reversal, we learn that the UK is sinking into Greek-style austerity: the Telegraph reports that Prime Minister Rishi Sunak and finance minister Jeremy Hunt plan to reveal a stealth tax raid on pensions later this month.

The pension lifetime allowance is set to be frozen for two more years, with a rise in line with prices delayed from 2025 to 2027, the newspaper said.

The allowance level has risen with prices in the past, but Sunak – as finance minister last year – froze the allowance until 2025. The move was forecast to bring the Treasury close to a billion pounds over the period, Telegraph said. And with the UK set to remain in a recessionary stagflation, with near-double digit CPI for the foreseeable future, UK retirees’ purchasing power will be drained faster than Biden can syphon away oil from the US SPR.

The Treasury is now planning to announce that the freeze will be extended until 2027, the end of the five-year period for which plans will be produced, the report said.

Sunak and Hunt, who need to fill a fiscal gap of nearly 50 billion pounds ($56.88 billion) during the Nov. 17 budget, have agreed to split the cost roughly equally between spending cuts and tax rises, according to the Telegraph.

The duo do not want to break the 2019 Tory election manifesto promises or raise the rates of major taxes, the Telegraph said citing Treasury sources. They are also determined to make sure the well-off carry more of the burden for the tax rises than the poorest, a move which means that another government crisis is assured in the very near term.

Separately, the Times reported that Sunak warned that people cannot expect the state to “fix every problem” and vowed to regain the trust of voters by being honest about the scale of the economic difficulties ahead.

Finally, the FT also reports that Sunak is under pressure regarding bullying claims concerning one of his closest political allies with the opposition Labor party calling for an independent investigation of allegations of bullying by Sir Gavin Williamson who was appointed as Minister of State without Portfolio last month.

In short: just the right amount of fear, loathing, chaos and confusion, that one has grown to expect from UK politics.

Tyler Durden
Tue, 11/08/2022 – 05:45

German Economist Sues OPEC, Wants $50 In Compensation

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German Economist Sues OPEC, Wants $50 In Compensation

Authored by Charles Kennedy via OilPrice.com,

  • A German economist has filed a lawsuit against OPEC with a Berlin court.

  • Despite the paltry sum, the suit could end up costing OPEC more than it can afford.

  • The judge in a regional court in Berlin allowed the case to proceed and has ordered OPEC and several state-controlled oil firms to file a document naming their lawyers for the case.

A German economist has filed a lawsuit against OPEC with a Berlin court, accusing the cartel of pushing up the prices of the gasoline and heating oil he is buying, Bloomberg Opinion columnist Javier Blas reports—and despite the paltry sum, the suit could end up costing OPEC more than it can afford.

Armin Steinbach, Professor of law and economics, is suing OPEC for damages for $50 (50 euros), plus interest, alleging that OPEC is an illegal cartel operating to drive up oil prices. The court has allowed the case, which is a rare legal challenge against OPEC, despite decades of one-and-off debates in the United States about a bill that would allow lawsuits against OPEC producers.   

The judge in a regional court in Berlin allowed the case to proceed and has ordered OPEC and several state-controlled oil firms to file a document naming their lawyers for the case.

“I hope OPEC reacts soon to the court order. Ignoring court orders is not smart strategy in dealing with German courts,” the German plaintiff, Steinbach, tweeted on Monday.

In his claim, Steinbach had written that he was seeking damages “due to violation of antitrust law.”

“If my lawsuit is successful, it would be recognized for the first time in court that OPEC is a cartel,” Steinbach told German business daily Handelsblatt last week.

“Then every German could sue OPEC for damages,” he added.

Such a precedent could have legal consequences, although countries, including the U.S., have been wary of removing the sovereign immunity for countries to be sued, for fear of retaliatory lawsuits.  

In the United States, the Senate Judiciary Committee moved last month the bill that would allow the U.S. to sue OPEC for antitrust behavior and market manipulation to the Senate. The so-called No Oil Producing and Exporting Cartels (NOPEC) Act proposes to amend the Sherman Act to make oil-producing and exporting cartels illegal. NOPEC has been an on-and-off topic for U.S. lawmakers and Administrations for over two decades but has never moved past discussions at committees in Congress. Forms of antitrust legislation aimed at OPEC were discussed at various times under Presidents George W. Bush and Barack Obama, but they both threatened to veto such legislation.

While the NOPEC bill may be dead in the water again, a private citizen’s lawsuit against OPEC could set precedents for more court actions against the organization.

Tyler Durden
Tue, 11/08/2022 – 05:00

China Seethes As UK Trade Minister Makes Rare Taiwan Visit

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China Seethes As UK Trade Minister Makes Rare Taiwan Visit

China in a blistering rebuke to the UK has demanded it stop all official exchanges with Taiwan as this week British Trade Policy Minister Greg Hands is visiting the self-ruled island. He landed in Taipei Monday, which marks the first trip of a British minister to Taiwan since 2018

“We urge the UK to earnestly respect China’s sovereignty, uphold the One China principle, stop any form of official interaction with Taiwan and stop sending wrong signals to Taiwan independence separatist forces,” China’s Foreign Ministry spokesman Zhao Lijian said. “China firmly rejects any form of official exchanges with the Taiwan region by any countries having diplomatic ties with China.”

British Trade Policy Minister Greg Hands, via AFP

Zhao further demanded that “stop any form of official exchanges with Taiwan and stop sending wrong signals to Taiwan separatist forces.

During the two-day visit Trade minister Hands will meet with Taiwan President Tsai Ing-wen and he’ll co-host the 25th annual trade talks between the sides. This is expected to lead to a written agreement outlining a plan for deepened cooperation and trade.

The talks are expected to address remaining barriers in a number of sectors, including “fintech, food and drink and pharma” – at a time trade between the two is quickly rising, having risen 14% over the last two years, to an estimated $9 billion

The foreign ministry condemnation and statement was typical in terms of the response to Western government officials’ visits to Taiwan.

Of course, the fiercest reaction came in the wake of US House Speaker Nancy Pelosi’s brief visit in early August. China fired a missile over the island and conducted many days of encircling large-scale military drills. 

As for this week’s UK-Taiwan trade talks, London and Taipei are expected to produce Memorandum of Understanding pledging increased collaboration between the two sides’ respective respective economy and trade ministries especially in the areas of technology and innovation.

Tyler Durden
Tue, 11/08/2022 – 04:15

One Of Spain’s Largest Hydro-Power Plants To Halt Operations As Drought Worsens

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One Of Spain’s Largest Hydro-Power Plants To Halt Operations As Drought Worsens

A large drop in renewable energy output is forcing Spain to increase natural gas demand to generate electricity at a time Europe is in the worst energy crisis in a generation. 

Spain’s hydropower output has been halved this year due to drought, and things could get a lot worse as one of the country’s largest hydropower plants is set to close. 

Bloomberg reported the Mequinenza facility in the northeastern region of Aragon would halt hydropower generation in mid-November after water levels were 23% below capacity. It’ll be the first time the hydro plant has closed since it was constructed in 1996. 

In the week through Nov. 1, Mequinenza was only producing 6,221 gigawatt-hours or operating at around 27% of total capacity. According to Bloomberg calculations based on Environmental Transition Ministry data, water levels in the reservoir have hit the lowest level since 1995. This means there’s not enough water flow to turn the plant’s turbines.

Spain’s hydropower generation has tumbled a whopping 53% this year through October, according to grid operator Red Electrica Corporacion SA. So when temperatures rise, and droughts persist, the hydropower industry gets squeezed hard. 

Regarding other renewables like wind and solar, there is not enough output between the two to offset the loss in hydro, which means Spain has increased NatGas demand for power generation. 

Data via network operator Enagas SA shows NatGas demand to generate electricity jumped 78% through October.

Source: Bloomberg

“A steep fall in renewable energy output is prompting the Mediterranean country to tap the fossil fuel to generate electricity at a time when Europe struggles with an unprecedented energy crisis following Russia’s decision to cut supply, which pushed prices to a record high,” Bloomberg said. 

Tyler Durden
Tue, 11/08/2022 – 02:45

Poland Draws Line In The Sand With EU: “We Fulfilled Requirements, And We Are Owed The Funds,” Says President

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Poland Draws Line In The Sand With EU: “We Fulfilled Requirements, And We Are Owed The Funds,” Says President

Via Remix News,

EU politicians and officials have been turning the financial screws on Poland. Has the country finally had enough?

Polish President Andrzej Duda, right, and European Commission President Ursula von der Leyen speak after at a joint news conference in Konstancin-Jeziorna, Poland, Thursday, June 2, 2022. (AP Photo/Michal Dyjuk)

The Polish government says it will make no further concessions to the European Union in order to unlock tens of billions in EU funding, arguing that Poland has fulfilled all its obligations and Brussels owes them the money.

“Poland fulfilled all conditions set by the European Commission regarding the payment of the Recovery Funds it is due,” Polish President Andrzej Duda said. He added that “he does not intend to answer any comments from Brussels on the matter.”

Brussels, for its part, has threatened Poland with catastrophic funding cuts totaling up to €110 billion; this would hobble the Polish economy, which has suffered due to the global economic downturn, inflation, and the refugee crisis from Ukraine.

In an interview for the conservative Sieci, Duda admitted that he does not believe that trying to fulfill the expectations of “the other side” could bring any results. “I believe that a lot of good will was showcased from the Polish side,” he stated.

“And we know very well that there is a group from Poland there that has a policy of contradicting the basic interests of the Polish state and is content when Poland is being harmed by Brussels,” said Poland’s president. He also mentioned the liberal-left representatives who “have seats in the European Commission and want to change the ruling party in Poland at all costs.”

According to the latest statements of the Polish authorities, Poland has still not sent a request for a payment of the Recovery Funds to Brussels. Meanwhile, information has appeared in the public space that the Commission confirmed that Warsaw has fulfilled 15 out of 20 milestones necessary for the payments of the first tranche of funds.

The National Recovery Fund for Poland involves €24 billion in grants and €11.5 billion in loans, but it is just one type of fund that Poland has yet to receive from Brussels. In June, the European Commission finally accepted the Polish plan, however, it made the payment of the funds dependent on the fulfillment of the so-called milestones. In the case of Poland, those milestones concern mostly the judicial system. Brussels does not recognize that Poland fulfilled its obligations, so the payment of the National Recovery Fund remains frozen.

Tyler Durden
Tue, 11/08/2022 – 02:00

China Quietly Boost Oil Imports In Preparation For Reopening

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China Quietly Boost Oil Imports In Preparation For Reopening

Alongside the neverending charade over when/if the Fed will pivot (it will, it just needs to really break the market and the economy first, at which point it will be too late to do anything), a similarly heated – and some would say even more important – discussion surrounds China’s decision to drop its doomed covid zero policy. Here, there has certainly been movement in recent days, with Chinese stocks soaring over the past week amid rampant speculation that Beijing is contemplating easing or rolling back its draconian covid zero restrictions.

And even though both the local government and skeptical China watchers have repeatedly tried to shoot down any unfounded rumors (based on spurious screengrabs) that China is set to ease its anti-covid measures, a new report from Goldman’s commodity team published late on Monday (and available to pro subscribers), concludes that China has quietly if aggressively ramped up crude imports by more than 2.5m b/d in recent weeks in preparation for an eventual reopening, whose timing Goldman still views as most likely to take place some time in 2Q 2023.

Here are some more details from the Goldman report tiled appropriately enough “China signals the beginning of the end for lockdowns”:

  • The oil market remains depleted of its main buffers: inventories and spare capacity. Concurrently, the risk of meaningful supply disruptions in Libya, Russia, Iraq, and Iran is currently elevated. As such, the risk distributions around our current oil forecasts are skewed squarely higher given spot demand continues to realize robustly.
  • Nevertheless, positioning in oil and broader commodities are barely above their 2Q20 lows, in part due to concerns on China oil demand – the final significant fundamental downside risk. We believe current lockdowns are subtracting as much as 0.9 mb/d from our Jan-22 expectations.
  • Our China economists believe recent headlines simply mark the start of an multi-month preparation period for reopening, and so have maintained their current base case of 2Q23 reopening, once the winter flu season has passed.

  • Nevertheless, any news around China reopening can drive rallies in oil, even if only muting uncertainty. To this end, China has already ramped up crude oil imports by more than 2.5 mb/d in recent weeks, in preparation for this event, as well as to replenish depleted inventory.

Goldman also conducts an “Effective Lockdown Index”-based exercise for contextualizing what a more rapid reopening may mean for demand and prices.

Not surprisingly, it finds that each 5% increase in the China ELI is worth c.0.2 mb/d of oil demand…

… and that a bull-case early reopening would pose $6/bbl upside risk to the bank’s current $110 Brent 2023 forecasts, while a less-likely full international reopening would amount to almost $15/bbl.

On the other hand, maintenance of the current status quo for restrictions would instead amount to c.$12/bbl of downside to next year’s forecasts. Consistent with this, the bank also finds the oil market-implied increase in the probability of reopening next year increased by 25% last week.

Lastly, an additional macro risk to commodity prices this year has been the dollar, which has endured one of the sharpest  appreciations in history.

Goldman expects the USD TWI to depreciate by up to 3% as China reopens, as Asian economies benefit, and broader markets trade more ‘risk-on’. This could support oil prices an additional $3/bbl.

Much more in the full Goldman note available to pro subs.

Tyler Durden
Mon, 11/07/2022 – 23:55

Victor Davis Hanson: The Pathetic Democratic Pantheon

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Victor Davis Hanson: The Pathetic Democratic Pantheon

Authored by Victor Davis Hanson via AmGreatness.com,

Joe Biden, Hillary Clinton, Barack Obama, and Nancy Pelosi are of no use to the Left in the midterms because it is their radical ideology that was finally enacted and wrecked the country…

Over the last few months the four icons of the Democratic Party—Joe Biden, Hillary Clinton, Barack Obama, and Nancy Pelosi—have hit the campaign trail. 

They’ve weighed in on everything from “right-wing violence” and “election denialists” to the now tired “un-American” semi-fascist MAGA voter—and had nothing much to say about inflation, the border, crime, energy, or the Afghanistan debacle. In this, they remind us just how impoverished and calcified is this left-wing pantheon. 

So why should we take anything they say seriously, given their own records—and especially given their mastery of projecting their own shortcomings upon others as some sort of private exculpation or preemptive political strategy?

Still Hopin’ and Changin’? 

Barack Obama this past week has assumed the role of surrogate president. He is storming the country, while Joe Biden mopes at home or visits shrinking blue enclaves so he can claim post facto, “At least I was out there stumping.” 

Over the last six years, we have become accustomed to Obama’s periodic getaways from one of his three estates. It is always the same. From time to time, he reenters politics to remind us that he did not just cash in on his presidency to become a multi-millionaire. Instead, he is still the Chicago “community activist” of his youth. And so, Obama will not be overshadowed by the Biden crew that is enacting all the crazy things he as president had warned were a bit much even for him. 

At the funeral of the late John Lewis, Obama turned his eulogy into a political rant. He weighed in on the “racist” filibuster, the “Jim Crow relic” that he desperately sought in vain to use to stop the appointment of Justice Samuel Alito. 

At campaign stops, he deplores “divisions” that he, more than any modern figure, helped create. The entire left-wing vocabulary of disparagement for the white lower-working classes (e.g., deplorables, dregs, chumps, irredeemables, etc.) got its start with Obama’s putdown of Pennsylvania voters who rejected him in the 2008 primaries as “clingers.” 

In interviews, Obama suddenly now blasts harsh rhetoric—this from the wannabe tough guy who stole the “The Untouchables” line about bringing a knife to a gun fight. Well before crazy Maxine Waters’ calls to arms, Obama advised his supporters “get in their faces.”

Still, on the campaign trail, Obama appears not so much animated as stale. It is as if he has been suddenly stirred from a long coma that commenced in 2008. It’s the same old, same old—sleeves rolled up. He still resorts to the scripted outbursts of mock anger. And the nerdy prep school graduate still amateurishly modulates his patois—now policy wonk, now breaking into the Southern African-American pastor accent when an audience needs more preachy authenticity. 

He still tries to rev up his crowds with the familiar attacks: Republican demons will cut Social Security, the MAGA semi-fascists are captives of Donald Trump (as if the Democrats have not ceded their souls to woke hysterics), the Republican fanatics will all but kill women by denying abortions, and extremists unlike himself are dividing the country. 

On and on, Obama shouts about social justice. And then he wraps up and must decide to which of his mansions he will fly home (via private jet)—Kalorama, Martha’s Vineyard, Hyde Park, or soon the Waimanalo estate.

Obama offers no solutions much less hints at his own culpability in his sermons. There is nothing about the open border he helped birth. Nothing about Biden’s failed energy policies now bankrupting the middle class that were simply a reification of his energy secretary Steven Chu’s perverse wishes for European-priced gas (“Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.”). 

There is nothing about Obama’s old boasts about shutting down coal plants and skyrocketing electricity (“Under my plan . . . electricity rates would necessarily skyrocket.”). 

Nothing is said about the Skip Gates psychodrama and his blanket stereotyped attack on police, the tossing of his own grandmother under the racial bus, the Trayvon Martin racial editorialization, the Ferguson mythologies, and all his efforts to create a binary nation of oppressors and oppressed, as Obama himself determined who is the victim, who the victimizer.

Drew Angerer/Getty Images

The Role Model Pelosi

After the terrible attack on her husband, House Speaker Nancy Pelosi’s colleagues are rightly calling for an end to extremist rhetoric. If we are to follow the Democratic clarion call, what might Pelosi herself do to help us to lower the temperature?

Here are a few modest suggestions. 

Contrary to press reports, conservatives deplored the attack on Paul Pelosi. They want his attacker behind bars with no bail until his trial date. And if convicted they wish him to serve a long sentence before parole is even considered. Let us dish out a proper punishment to David DePape; one that can serve as a model to all such thugs who do his kind of devilish work daily against the innocent and weak—but unlike him, are usually exempt from punishment.

Recall that DePape should never have been in the United States. He is an illegal alien who violated his visa and should have had a warrant out for deportation, especially given his prior history of lawlessness. Would that the illegal alien who murdered innocent San Franciscan Kate Steinle had been subject to the likely punishment that now is awaiting DePape.

So yes, we all must lower the temperature. As speaker of the House, Pelosi can do her part in quieting passions, given half the country are her fellow Americans who do not live in the darkness of lies. She might ask Joe Biden to quit calling them semi-fascists and un-American. 

Pelosi herself should never again tear up her copy of the state of the union address on national television. In that congressional forum she was attacking the presidency, not just Donald Trump. Half the voters feel as strongly about Joe Biden as she does about Donald Trump. If, as House speaker, Kevin McCarthy (R-Calif.) were to follow Pelosi’s precedent and rip up the next Biden State of the Union, would Pelosi find that continuation of her precedent conducive to healing the nation’s wounds?

Pelosi herself should not use any more violent imagery in expressing her anger at a president of the opposite party, much less threaten to use physical violence. 

When she was asked to clarify what she meant in screaming about Trump (“I hope he comes. I want to punch him out. . . . I’ve been waiting for this . . . I’m going to punch him out, and I’m going to go to jail, and I’m going to be happy.”), she scoffed that she could not follow up on her threat only because Trump would never come to Congress to give her the opportunity. 

Whatever one thinks of Trump, Pelosi only lowers the bar when she boasts about feloniously striking a president of the United States. 

That Joe Biden had boasted twice about taking Trump behind the gym to beat him up, and others such as actor Robert DeNiro have echoed such threats (“I’d like to punch him in the face”) was no excuse for her reckless talk. After 2016 it was hard to calibrate all the ways the leftists had shouted ways of slaying Donald Trump—by stabbingshootingincineration, or decapitation.

Pelosi should never again delay legislation aimed at protecting Supreme Court justices from the sort of violence that occurred when Justice Brett Kavanaugh was run out of a restaurant, or anti-abortion protesters swarmed his home, or a would-be assassin showed up at his house. 

Why was Pelosi so fearful about expediting such added security? Would prompt action have empowered the factual narrative that the chief threat to Supreme Court justices now arises from radical abortion protestors?

Pelosi might have reminded Democrats to tone down their rhetoric after the near-fatal shooting of Rep. Steve Scalise (R-La.). After all, the shooter was a highly political, left-wing activist and former Bernie Sanders’ volunteer. But she did no such thing.

She could have privately reprimanded her own daughter that it was not a funny thing to cheer on the violent attack against Senator Rand Paul (R-Ky.), who suffered broken ribs, a collapsed lung, pneumonia, and had to undergo pulmonary surgery. 

When the younger Pelosi used her family name to gain traction by tweeting “Rand Paul’s neighbor was right,” (if she had used her married last name would anyone have read it?), it sent the message that there was a sort of happiness on the Left that a political opponent had been a target of violence. The Left is furious at Donald Trump, Jr. for crudely mocking the Pelosi assault, but he unfortunately followed a precedent long set by others.

Kyle Mazza/Anadolu Agency via Getty Images

She’s Back!

Hillary Clinton is occasionally asked to weigh in on the midterm campaigns, but never in a swing state or hotly contested race. Her presence, like that of Joe Biden’s, would immediately lose the endorser a critical 1-2 points. 

Clinton recently warned that the 2024 election likely will be illegitimate due to Republican instigated “voter fraud.” 

Her outburst can be translated into something like, “The midterm left-wing wipeout may be just a preliminary to a 2024 Democratic disaster.” Hillary preempted Biden who, in his third and latest McCarthyite speech, warned that the “Mega Maga” people are planning devilry years in advance and so, like Hillary, he can now cast doubt on the legitimacy of future elections the Democrats will lose. 

In truth, no one has done more in the last century to impugn the integrity of U.S. elections than Hillary Clinton. She has questioned the 2016, 2020, and 2024 elections, on the theory that any election Democrats might lose is an “attack on democracy.” 

Her sins go way beyond feloniously destroying subpoenaed emails and devices or leveraging her New York senatorial run by Bill Clinton’s presidential pardons or using her office to enrich her family’s foundation as in the case of Uranium One. 

When we return to sane times, historians will assess her 2016 efforts to destroy her opponent, his transition, and his presidency as the greatest election scandal in modern memory. She used three paywalls to hide her efforts to hire foreign national Christopher Steele (who was simultaneously working with the FBI). 

On spec, she used her own contacts such as Charles Dolan to fabricate a phony hit dossier against her opponent and then to seed it within the media and the Obama bureaucracy to smear Trump.

Not content with that failed and likely illegal effort, she then declared the duly elected president illegitimate and the 2016 election all but stolen. 

Her Hollywood friends cut videos begging electors to renounce their constitutional duties, ignore their state tallies, and vote instead for Hillary. Had they gotten their way, the entire federal election system as we know it would have been destroyed.

Then her surrogate, Green Party candidate Jill Stein, sued to overturn the election. Clinton bragged of joining #TheResistance in mock-heroic terms. As an arch-denialist, she urged Joe Biden under no circumstances to concede to Trump if he lost the 2020 vote. 

And now she warns us of others who might emulate her own denialism? 

What does Hillary fear in 2024? That a Trump or DeSantis will hire a Steele-like fraud to fabricate Democrat-Chinese collusion and smear a Democrat nominee? That the loser will not concede as she once urged, or the winner is illegitimate as she once insisted?

Good Old Joe Is Just Old Joe

Instead of a list of supposed communists, Joe Biden apparently has a roster of “election denialists” who he says are running for Senate and Congress and whom he fears will win next Tuesday. And he sets the example for others like House Majority Whip James Clyburn (D-S.C.)—himself a 2004-05 election denialist—who now smears his opponents as Nazis who, he fears, by democratically voting Democrats out of office nationwide will “destroy democracy.” 

What will Biden not lie about? The death of his son, the circumstances in which his first wife died in a car wreck, the fantasy congressional vote on his student-loan forgiveness scheme? The number of states (Joe says, 54, Obama used to swear there are 57)? The very century we are now in? Where he went to college? 

Joe, our own Walter Mitty, has variously been a semi-truck driver, an arrested South-African street protestor against apartheid, a surrogate Puerto-Rican child, a black college enrollee, a Ciceronian populist orator, a coal miner’s scion, an honors student, a blue-chip collegiate athlete, a defender against inner-city Corn Poppers, and absolutely ignorant about the Biden family syndicate.

Recall that a non compos mentis Biden was nominated solely as the thin veneer to a hard Left agenda whose avatars were unelectable. Biden was to feign being the colorless, stand-in “moderate” who would “unify” the fractured country, tone down the Trump rhetoric, and let the Trump record sort of proceed on autopilot. 

Then when he played out that part and won, the leftist minders in this Faustian bargain took over to push through, on a one-vote senatorial margin, the most radical left-wing agenda in U.S. history. 

Biden, however, took his role too seriously. He reverted to the mean-spirited, pre-senile blowhard Joe—the obnoxious messenger thus now making the noxious message even more toxic. 

A retiring, silenced, good old Joe from Scranton was the script, not a doddering, incoherent, ”get off my lawn” old man shouting for the need of socialist policies that were the exact opposite of his previously supposed convictions. 

The Left got their Biden. And yes, he turned over the reins of government to them. And yes, they got their neo-socialism for two years. And yes, they are destroying America as we knew it. But in doing this, the people had the rare occasion to see fully and experience the nihilist Left. And they are now about to express their loathing for what the Left has wrought. 

The problem with the ossified Democratic Pantheon is that they are of no use to the Left in the midterms because it is their own radical ideology over the past two years that was finally enacted and wrecked the country. And all the shrieks about abortion, semi-fascists, and democracy dying cannot put back together what they shattered.

Tyler Durden
Mon, 11/07/2022 – 23:45

Cryptos Plunge As FTX-Binance Battle Escalates

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Cryptos Plunge As FTX-Binance Battle Escalates

Update (1105ET): The price of FTX Token FTT just crashed over 20% after holding support at $22 since the CEO of Alameda Research (FTX hedge fund) offered to buy all Binance’s FTT holdings at that level.

Earlier this evening, Binance founder CZ responded with a tweet that he ‘will let the market decide’…

And that triggered aggressive selling in FTT…

This is triggering selling pressure across much of the crypto space as FTX liquidity/contagion fears spread as a bank-run of sorts occurs on assets sitting on the FTX platform.

Solana is being hammered lower since it is part of FTX’s reserves…

As we detailed below, Bankman-Fried denied CZ’s allegations: “A competitor is trying to go after us with false rumors,… FTX is fine. Assets are fine.”

“FTX has enough to cover all client holdings.

We don’t invest client assets (even in treasuries).

We have been processing all withdrawals, and will continue to be.”

Bitcoin puked below $20,000 on the back of the moves…

Whether strategic or not, FTX is one of Binance’s largest competitors and in just one day, those comments and Binance’s sale of FTT holdings have started a chain of second and third order effects.

*  *  *

As we detailed earlier, new battle of the billionaires is brewing (if not boiling over) among the current kings of crypto as tensions between Binance founder  Zhao “CZ” Changpeng and FTX founder Sam Bankman-Fried have escalated a war of words on Twitter into actions over CZ’s claims that FTX’s hedge fund’s asset base may not be all it’s cracked up to be.

The drama began early Sunday morning when FTX’s FTT token suddenly plunged as rumors surfaced that a giant whale with 23 million FTT, probably Binance, might be dumping its tokens.

FTT trade volume surged to its highest level in more than a year amid the wave of selling pressure…

Shortly after that initial plunge, Zhao said his company would liquidate its entire FTT holdings in the coming months, on fears that the token might collapse in the same manner as Terra (LUNA) in May 2021.

Binance was an early investor in FTX.

Zhao referenced “recent revelations that have came to light,” but did not elaborate publicly.

However, his actions come shortly after a Nov 2nd article on CoinDesk that said much the balance sheet of Bankman-Fried’s trading house Alameda Research is comprised of the FTT token.

Cointelegraph reports that, according to the CoinDesk report, Alameda Research had $14.6 billion on its balance sheet as of June 30, with FTT being the largest holding at $5.8 billion, making up 88% of its net equity. In addition, the firm held $1.2 billion in Solana, $3.37 billion in unidentified cryptocurrency, $2 billion in “equity securities” and other assets.

On the other hand, Alameda Research reportedly had liabilities worth $8 billion, including $2.2 billion worth of loans collateralized by FTT.

That, coupled with the firm’s alleged exposure to illiquid altcoins, prompted some analysts to predict its insolvency in the future. 

“Alameda will never be able to cash in a significant portion of FTT to pay back its debts,” wrote Mike Burgersburg, an independent market analyst, for the Dirty Bubble Media Substack, noting:

“There are few buyers, and the largest buyer appears to be the very company which Alameda is most closely tied to […] the fair market value of their FTT in the event of large sales would rapidly approach $0.”

Bankman-Fried responded in a brief tweet thread, saying: “A competitor is trying to go after us with false rumors,… FTX is fine. Assets are fine.”

He went on to note that:

“FTX has enough to cover all client holdings.

We don’t invest client assets (even in treasuries).

We have been processing all withdrawals, and will continue to be.

It’s heavily regulated, even when that slows us down.  We have GAAP audits, with > $1b excess cash.  We have a long history of safeguarding client assets, and that remains true today.

Concluding with an ‘oilve branch’ perhaps:

“I’d love it, @cz_binance, if we could work together for the ecosystem.”

Notably, as Decrypt reports, Zhao’s actions (and the Alameda leaks) follow weeks of criticism directed at FTX’s founder and Chief Executive Sam Bankman-Fried for regulatory proposals he put forth in a blog post which recommended restrictions regarding DeFi. He has since committed to revising his regulatory position.

While it’s fun to watch billionaire whiz-kids slinging mud at each other, the collateral damage (quite literallY) could be significant for the rest of the crypto universe.

“Overall, FTT is a relatively illiquid token on open markets, so Binance’s plans to liquidate all FTT tokens they hold is quite a significant market event,”  Clara Medalie, head of research at analytics firm Kaiko, said.

“Alameda will likely dedicate considerable resources to ensure the price of FTT doesn’t crash.”

In fact, Alameda’s CEO tweeted that her trading firm’s financial condition is stronger than what was reflected by the balance sheet CoinDesk wrote about. She also offered, in a reply to the Binance CEO’s post, to buy his firm’s FTT token holdings for $22 each.

Nothing to worry about at all…

Nevertheless, the FTX outflows continue…

Overall, as Kaiko concludes, it is clear that FTT market makers are working overtime to maintain the price of FTT, which is down 3% over the past day along with most other cryptocurrencies. Despite a massive surge in selling pressure, there is barely a dent in market depth and only a slight increase in price slippage. Ultimately it may be in all parties’ best interest to engage in an OTC transaction as suggested by Caroline Ellison to limit price impacts, especially considering Binance, FTX, and Alameda all risk large losses should FTTs price fall significantly.

Tyler Durden
Mon, 11/07/2022 – 23:25

Trump Says “Big Announcement” Coming On Nov. 15 Amid Expectations Of Presidential Bid

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Trump Says “Big Announcement” Coming On Nov. 15 Amid Expectations Of Presidential Bid

Authored by Frank Fang via The Epoch Times,

Former President Donald Trump teased confirmation of his anticipated 2024 president bid to supporters on Monday, revealing he will make a “big announcement” on Nov. 15.

Trump was in Dayton, Ohio, on Nov. 7, holding a campaign rally for local Republican candidates, particularly J.D. Vance who is seeking the state’s Senate seat. He told supporters that the midterms are a “country-saving election.”

“Two years ago, we were a great nation and we will be a great nation again,” Trump said.

“The first step to saving America is winning an epic victory for Republicans tomorrow.”

Near the end of the rally, Trump hinted that he will seek another bid for the White House in 2024.

“I’m going to be making a very big announcement on Tuesday, November 15, at Mar-a-Lago in Palm Beach, Florida,” Trump said, without elaborating.

He added, “We want nothing to detract from the importance of tomorrow.

Trump has been hinting that he will make another run for president for months.

At an Iowa rally on Nov. 3, Trump dropped a strong hint that he would seek reelection.

“And now, in order to make to make our country successful, and safe, and glorious, I will very, very, very, probably do it again, okay?” Trump said. “Very, very, very probably.”

The crowd at the rally cheered in response, erupting in chants of “Trump! Trump! Trump!”

“That’s nice, well, get ready, that’s all I’m telling you, very soon,” Trump said. “Get ready.”

Tyler Durden
Mon, 11/07/2022 – 23:20

Are Republicans More Conservative Than Democrats Are Liberal?

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Are Republicans More Conservative Than Democrats Are Liberal?

The 2022 midterm election is once again characterized by extreme polarization between the parties. As Statista’s Katharina Buchholz details below, despite moderate positions gaining slightly this year, an annual survey by the Chicago Council on Global Affairs shows that moderates are in the minority in both parties the United States.

In July, 42 percent of self-described Democrats said they were moderates or conservatives, opposite 58 percent who considered themselves liberals. The gap is even bigger in the Republican Party, where 77 percent identified as conservatives and only 23 percent said of themselves that they were moderates or liberals. According to this survey, this makes Republicans in fact a whole lot more conservative than Democrats are liberal.

Infographic: Are Republicans More Conservative Than Democrats Are Liberal? | Statista

You will find more infographics at Statista

A height of polarization was reached last year, when 80 percent of Republicans said they were conservatives and the number of liberal Democrats rose to 60 percent. Diving deeper into the data shows that 13 percent of Republicans described themselves as “extremely conservative” in 2022 as opposed to 9 percent of Democrats who considered themselves “extremely liberal”.

However, considering all respondents across both parties, self-described moderates are the biggest group in the U.S. at 36 percent, followed very closely by 35 percent of conservatives.

Time will tell if the upcoming election will mirror voter preferences and favor conservative Republicans and liberal Democrats over of middle-of-the road winners. According to FiveThirtyEight, 70 percent of GOP candidates who have said they believed the 2020 elected was rigged are expected or likely to win their races, compared to other Republicans whose odds were put at only 37 percent by the website. 

Tyler Durden
Mon, 11/07/2022 – 23:00