A follow up to Big Spenders

The Central Banks in the EU are working on a special way of dealing with their depositors if another “Grecian Formula” needs to be applied to cover a ‘Bail in’. Oh yes, a bail in is when the depositors get shafted instead of the bank stockholders when the financial markets and the bankers SCREW THE POOCH.

If the interest rates climb here the cost of the national debt will eat into every program this corrupt Congress is running to the point that they won’t be able to collect enough taxes to pay for all the promises. All that money will have to go toward paying the interest on outstanding bonds and T-Bills held by foreign Countries and Americans. Printing more money only worsens the situation, which is what we have been doing since LBJ raped Social Security to pay for the Vietnam War.

This is one reason for the drive toward a cashless society. When they control the money, they control you. It seems so nice to be able to wave your iPhone at the register to pay for that overpriced latte; what happens when the government decides no more lattes or gas, or movies, or steaks, or golf.

ECB – Not paying the piper when the ‘jig’ is up…from Rico

When the proverbial ‘jig’ is up, what does one do?
– Why, you simply change the rules of the game instead of paying the piper, at least that’s what the ECB (EUropean Central Bank) thinks.

With the “bail ins” of banks in Cyprus a now faded memory, and with the ECB essentially ‘broke’ [read: insolvent] it’s apparently time for the financial Ouroboros to consider devouring the little guy instead of itself.
The ECB proposes ending deposit protection [read: changing the rules].

An 08 Nov 2017 ECB document (an excerpt of the 58-pgs attached, it’s a mind-numbing read) considers that “deposits no longer need to be protected.”
– Instead of ‘fixing’ the banking system, the banking system is being ‘rigged’ by the bankers to remove ALL protection of deposits. Say ‘sayonara’ to the Euro 100,000 deposit level currently protected from bank bail-ins.

In MEGO (my eyes glaze over) legal lingo, the ECB is considering that in the event of a bank bail-in, it will (instead of protecting deposits) give depositor’s an “allowance” from their own savings. An allowance they will control.
– And only after a five-day wait period from time of a depositor’s request, they will determine what is an ‘appropriate’ amount of your own money you can access for food, rent, and other expenses.

If you have paid any attention to how the EU responded to BREXIT, or Catalonia, then you should clearly understand that these EU BureauRats could give a rat’s ass about the little people.
– Another time we will discuss the Central Banker’s push to implement a “cashless society” (gee, what could possibly ‘go wrong’ with that?*) while they buy physical Gold for themselves…..

*Think Puerto Rico when the power went out after their latest hurricane, for just one example. [No electricity=no digital money.]

It won’t be just the pooch that gets screwed!


File this under BAD IDEAS

Everyone has seen enough science fiction movies or read a variety of books to know that the invaders from space are always conquered by the stalwart humans. Well consider what has happened on this planet when a superior culture comes into contact with an inferior one. Always the lesser culture is subsumed by the  more advanced and seldom to their benefit at least initially and usually permanently.

We may have or may not have visitors from outside our solar system. I’m not going to argue that point. Let us say so far we haven’t for the sake of argument. We managed to put men on the Moon, but they couldn’t stay there. We’ve only managed to put small probes onto the Martian surface. That is the extent of man’s ability to travel into space.
Do you think it is wise to advertise our location to a species that can travel through interstellar space?

China races to make FIRST CONTACT with aliens using world’s largest dish

CHINA is racing to become a major space superpower and could be the first nation to make contact with alien life by using the world’s largest radio dish which can detect signals from the deepest depths of space. [snip]

China made the move following numerous dozens of suspected-extraterrestrial encounters, including claims that a UFO was seen over the Great Wall of China last week.

The superpower has now poured billions of pounds into space exploration and the world’s largest dish to detect alien signals coming from other galaxies.

Liu Cixin, a top Chinese researcher into alien life, described the dish as something “out of science fiction”.

Mr Liu has written a number of books about the risks of first contact and warns that the “appearance of this ‘other’” could end with mankind’s extinction. [snip]

Letting an unknown species aware that we’re here is a new kind of stupid. If they can get here, obviously, they are a far superior culture. That doesn’t mean they are benign; They could view us as food or vermin or worse: Slaves.
There was a science fiction book written about aliens who came to Earth. They had a book called “To Serve Man” and everyone thought it was wonderful until they found out it was a cookbook.

Who knows what or who exists in this universe; if they can get here we’re not advanced enough to meet them on an equal footing. And don’t think they might look like ET.

100 years of blood and death

Given the history of Communism/Socialism and the constant show of fails today, how can anyone still espouse this as a viable form of governance escapes sane people. Only those with an psychotic desire to control society follow this path. They attract acolytes with borderline personalities incapable of discerning reality.

Communism’s Bloody Century

In the 100 years since Lenin’s coup in Russia, the ideology devoted to abolishing markets and private property has left a long, murderous trail of destruction

A century ago this week, communism took over the Russian empire, the world’s largest state at the time. Leftist movements of various sorts had been common in European politics long before the revolution of Oct. 25, 1917 (which became Nov. 7 in the reformed Russian calendar), but Vladimir Lenin and his Bolsheviks were different. They were not merely fanatical in their convictions but flexible in their tactics—and fortunate in their opponents. [snip]

The balance of this article is behind a paywall. I shall not give the American media a plug nickle for any scribbling. You can find this history on the web but all one has to do is read what is happening in Venezuela for a repetition of the last Century.

Death by Sanctuary

You wouldn’t keep a Black Mama or a rabid animal in your home, would you? Perhaps if you’re a Lefty fool, you might give them sanctuary in your home. Why not, you have a proven mental deficiency which is exhibited on a daily basis.

Four examples of what happens when jurisdictions don’t cooperate with ICE

“Sanctuary” policies haven’t kept federal immigration authorities from doing their job, but there have been numerous cases of local jurisdictions refusing to cooperate with Immigration and Customs Enforcement detainer requests.

In some cases, those released have been charged with murder and other crimes.

Sanctuary jurisdictions are cities or counties that have formal policies that prohibit local law enforcement officials from cooperating with federal immigration authorities. [snip]

Sanctuary jurisdictions are cities or counties that have formal policies that prohibit local law enforcement officials from cooperating with federal immigration authorities. [snip]

Major sweep

In late September, ICE announced 498 individuals had been arrested from 42 countries across the United States over a four-day period.

“Operation ‘Safe City’ focused on cities and regions where ICE deportation officers are denied access to jails and prisons to interview suspected immigration violators or jurisdictions where ICE detainers are not honored,” a press release from ICE said.

The operation took place across 10 jurisdictions, with 100, or nearly 20 percent, of the arrests in Los Angeles alone.

According to ICE, some of the offenses included:

In Baltimore, a citizen of El Salvador who entered the U.S. illegally on a fraudulent passport, and was previously charged with attempted murder/conspiracy to commit murder and convicted of first-degree assault. She was previously released from local custody before ICE could assume custody.

· In Boston, a citizen of India who entered the U.S. illegally and who was convicted of indecent assault/battery on a person over 14 and was required to register as a sex offender.

· In Denver, a citizen of Guatemala with lawful permanent legal status who was previously convicted of felony menacing, six DUIs, child abuse, assault, and domestic violence harassment.

· In New York, a citizen of Ecuador with lawful permanent resident status who was previously charged with sexual abuse of a minor and convicted of endangering the welfare of a child, and convicted of sexual abuse of a minor under 14. He was previously released from local custody before ICE could assume custody.

· In San Jose, California, a citizen of Mexico who entered the U.S. on a visa and overstayed that visa for more than 10 years. He was previously convicted of felony possession and purchase of narcotics, possession of a controlled substance for sale, and felony child cruelty with the possibility of injury or death. He was previously released from local custody before ICE could assume custody.

Death Knell

From all appearances, it seems that Maduro urinated on the last remnants of the “Radiant Future”.

The Time Has Come: Venezuela May Be In Default In Under 48 Hours

This past weekend, Venezuela failed to make $237 million in bond coupon payment, blaming “technical glitches” when in reality it simply did not have the money (or wish to part with it). Adding the $349 million in unpaid bond interest accumulated over the past month as of last Friday, that brings Caracas’ unpaid bills to $586 million this month, just days before the nation must make a critical principal payment. And, as BofA sovereign debt analyst Jane Brauer writes, while the bank’s base case assumption is that Venezuela will make its debt service payments this year, “the probability of a short term default has increased substantially with coupon delays” and it could come as soon as this Friday, when an $842 million PDVSA principal plus interest payment is due, and which unlike typical bond payments does not have a 30 day grace period but instead is followed by a second $1.1 billion PDVSA coupon on Nov 2, also without a 30 day grace period.

As Brauer writes, Venezuela has been in as similar situation of payment uncertainty in the recent past, with bond prices plummeting right before a big payment. For example, just before a big principal payment was due in April 2017 Venezuela received a $1bn loan from Russia just one week before the due date. At that time Ven 27s dropped 16% in a month (from $52 to $45) and recovered completely within a month. Ven 27 has fallen to $35, as Venezuela has demonstrated that it will be a challenge to make all payments on time. The difference between now and April is that coupon payment delays then came after, not before the payment.

Meanwhile, Venezuela has managed to redefine the concept of payment “on time” which now means “by the end of the grace period”

As we keep track of missed payments, the 5 missed payments, so far totaling $350mn all have a 30 day grace period, as did the $237mn payments over the weekend.

The concerning principal due dates are coming up, the first of which is this coming Friday, which means in less than 48 hours Venezuela could be in default unless it can find $842 million:

Friday, Oct 27 PDVSA 2020 $842mn
Thursday Nov 2 PDVSA 17N $1,121mn

The collateral against the first bond is PDVSA’s Houston-based refining and retail subsidiary, and in just a few hours, the bondholders may be the (un)happy new ownders of said subsidiary.

“This weekend, there’s either going to be a lot of bond holders and traders drinking champagne, or there’s going to be a lot of stressed fund managers,” said Russ Dallen, managing partner at Caracas Capital Markets



Sectoral Reciprocity

Sectoral reciprocity is a polite term for mirroring another country’s laws. In this case, Mexico’s immigration laws and practices, albeit, not as harsh.

Mexico joins legal fight against Texas’ sanctuary city crackdown

The government of Mexico has aligned itself with municipalities suing the state of Texas over a new law that, if implemented, would crack down on sanctuary cities, arguing that the state’s action hurts Mexico’s relationship with Washington.

Lawyers for the Mexican government argue that Texas Senate Bill 4 creates unnecessary tension in relations between Mexico and the United States. It forces Mexico to treat Texas differently from other states and interferes with diplomatic interests and ongoing negotiations on a range of bilateral matters, from trade to security.

“Given the importance of the international relationship between the U.S. and Mexico, it is essential that Mexico be able to approach its discussions with one consistent negotiating partner rather than having to enter into 50 different negotiations with each state regarding the type and extent of immigration enforcement that will occur in that state,” the Mexican government wrote in an amicus brief filed late Thursday night. [snip]

Try entering Mexico illegally. Tell them you’re only looking for work. Write when you get out of prison. Let me know if you get back any of your belongings or cash. Tell us how nice prison life is there .

Republican Gov. Greg Abbott signed the law in May. It would prevent municipalities from adopting their own policies to limit enforcement of immigration laws and empowers police officers to question people about their immigration status when they are detained.
Civil rights activists in Texas and around the country say the law will promote racial profiling. Some call it the “show your papers” law. [snip]

Leon Fresco, a lawyer representing the government of Mexico, argues in the brief that SB-4 has already harmed the relationship between Mexico and the United States. Mexican consulate officials in Texas have been flooded with calls from scared Mexican nationals. Fears are so widespread that Mexican nationals were afraid to seek government assistance during Hurricane Harvey. [snip]

Isn’t that terrible. Try this! They’re not suppose to be here in the first place.
The only reason they are here is to be exploited:

  1. The Democrats want them for votes.
  2. The unions want them for dues and shut mouth labor.
  3. Business wants them for cheap labor who won’t quit for fear of being turned in to ICE.

The Wonderfulness of Government run Health care

When ObamaCare fails, and it will, the Jackass Party hopes to be in power to bring Single Payer Health Care (SPHC) to America. For a taste of this nightmare, just look at the UK.

NHS provokes fury with indefinite surgery ban for smokers and obese

The NHS will ban patients from surgery indefinitely unless they lose weight or quit smoking, under controversial plans drawn up in Hertfordshire.

The restrictions – thought to be the most extreme yet to be introduced by health services – immediately came under attack from the Royal College of Surgeons.

Its vice president called for an “urgent rethink” of policies which he said were “discriminatory” and went against the fundamental principles of the NHS.

In recent years, a number of areas have introduced delays for such patients – with some told operations will be put back for months, during which time they are expected to try to lose weight or stop smoking.

But the new rules, drawn up by clinical commissioning groups (CCGs) in Hertfordshire, say that obese patients “will not get non-urgent surgery until they reduce their weight” at all, unless the circumstances are exceptional.

The criteria also mean smokers will only be referred for operations if they have stopped smoking for at least eight weeks, with such patients breathalysed before referral.

East and North Hertfordshire CCG and Herts Valleys said the plans aimed to encourage people “to take more responsibility for their own health and wellbeing, wherever possible, freeing up limited NHS resources for priority treatment”.

Here’s an image of any socialized program.

Both are in financial difficulty, and between them seeking to save £68m during this financial year.

Ian Eardley, senior vice president of the Royal College of Surgeons, said it was wrong to bar NHS treatment to any group of patients.

“Singling out patients in this way goes against the principles of the NHS,” he said.

“This goes against clinical guidance and leaves patients waiting long periods of time in pain and discomfort. It can even lead to worse outcomes following surgery in some cases,” he said.

“There is simply no justification for these policies, and we urge all clinical commissioning groups (CCGs) to urgently reverse these discriminatory measures.”

The senior surgeon said he was concerned that the latest rules were the “tip of the iceberg”. [snip]

You can translate the above anyway you like but the bottom line comes out the same: Insufficient funds to run the system. Like all socialized programs, projections are never met by the realities of the costs. Someone always has to pay a price for the sugar coated sales pitch.