Monday, December 24, 2018

A Brief History Of Fake News

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Authored by Joe Schaeffer via Liberty Nation,

The biggest weakness of liberal editors is that they need to reflect their world view.

When news broke out of Germany that an award-winning reporter for Der Spiegel had been exposed as a serial fabricator, my first inclination, before delving into the details, was to assume a certain way the story would unfold. It would involve a writer reporting from a leftist viewpoint in a highly literary, as opposed to fact-driven, manner.

Check and check. Claas Relotius, honored in 2014 as CNN’s “Journalist of the Year,” was especially adept at a stylized form of “reporting” that read like good fiction. His articles often featured lazy anti-American stereotypes that serve as easy comfort food for European leftists: vigilantes on the Mexican border, death penalty eyewitnesses. Relotius provided himself a lively palette from which to paint his biased fiction.

Relotius will go down in shame with other famous journalist hoaxers, yet the people who most enabled his betrayal of the reader will likely avoid similar ignominy.

Which is head-scratching because if a criminal profiler were to come up with a pattern for these kinds of frauds, they would find one constant: editors who were hoodwinked because their fake reporters were writing exactly what they wanted to read.

Janet Cooke

The original black eye to the mainstream leftist journalism machine came in 1980 with the infamous Janet Cooke caper at The Washington Post. Cooke, a 26-year-old reporter, won the Pulitzer Prize for an article on an 8-year-old heroin addict named Jimmy. The article featured that same literary style of reporting that reads like a good book instead of an informative news article. And it fit perfectly into a liberal editor’s wheelhouse with its stirring, highly-personalized account of a minority social crisis in need of a solution, as written by a black woman.

The Post’s ombudsman at the time, Bill Green, wrote a lengthy report on the Jimmy fiasco in 1981 for the newspaper. It revealed that Cooke was hired by the newspaper not for who she was, but for what The Post wanted her to be. Cooke claimed to be a Phi Beta Kappa graduate of Vassar. It turned out she only attended classes there for a year. There was almost no vetting of her resumé or background at all.

“When Cooke visited The Post… every interviewer was impressed,” Green wrote.

“She was a striking, smartly dressed, articulate black woman, precisely the kind of applicant editors welcome, given the pressures to hire minorities and women.”

Red flags should have abounded in the Jimmy piece. The idea that a reporter for a major city newspaper would be allowed to sit and watch while an adult injected an 8-year-old child with heroin seems rather far-fetched to say the least, yet Milton Coleman, city editor who worked on the article, saw no reason to doubt the account or any of the hokey dialogue that came along with it. “I wanted it to read like John Coltrane’s music, strong. It was a great story, and it never occurred to me that she could make it up,” Green quotes Coleman as saying. Of course not.

Jayson Blair

Then there is Jayson Blair, the equally young (27 years old) reporter who fabricated dozens of stories for The New York Times in the early 2000s. A 2003 article in Salon states an NYT internal review found the paper had published 73 Blair articles from the fall of 2002 through spring 2003. A stunning 36 of them, just about half, had “problems.” Blair routinely plagiarized material from other reporters and even “filed” articles from cities he had not even visited.

Like Cooke, Blair was put on the fast track at a major liberal newspaper because he was young and black, without consideration to his personal or professional preparedness to deal with that path. This really should not be seen as a stain on the reputations of young, black reporters in general. Rather, it should be seen for what it is: an unconscionable failing by veteran, experienced editors who want to create a certain news environment based on their particular worldview.

Walt Harrington, a former Washington Post staffer during Cooke’s time at the paper, explained it best. “As it happened, the organization pushed a flawed person into [something she couldn’t handle],” he told ex-colleague Mike Sager.

“It’s like taking a person who’s weak and encouraging them to do something that they’re not equipped to resist. But at the same time, any system should be thoughtful about that kind of person.”

Not only are young reporters like Cooke and Blair left to bear the greatest weight of opprobrium from scandals they should never have been allowed to perpetuate in the first place. But in our last example, we will see how an editor can actually be showered with praise after repeatedly failing to detect a massive hoax on his watch.

Stephen Glass

Stephen Glass pulled off perhaps the most ridiculous serial fabrication in modern journalism history, writing fictitious articles for the liberal magazine The New Republic in the late ’90s, layered with one fantastic lie after another.

His lies were so brazen that they were constantly challenged by the people and institutions he wrote about via letters to the editor. Jonathan Last, reviewing the 2003 film Shattered Glass that was made about the affair, concedes that any good editor could be fooled once or twice by a fabricating writer. But Glass wrote 27 thoroughly fake stories. “Surely the need to respond to letters 6 times in 19 months should have woken someone up,” Last suggests.

Largely because of the way he was depicted in that film, editor Charles Lane, now of The Washington Post, is considered a hero in certain liberal circles for finally “exposing” Glass. He was manning the ship as Glass filed one ludicrously fake story after another, yet not only does he have to deal with none of the shame that comes with such a massive deceit of his magazine’s readership, he actually basks in praise in the aftermath of it all.

“While the world would be a better place if it had never happened, it would be hypocritical to say it was some kind of heavy burden for me,” Lane told former New Republic colleague Hanna Rosin in 2014. “It was a great feather in my cap.”

Far more truthful than the heroic portrayal of Lane in Shattered Glass is a quote the man himself gave in 2003, which should be commended for its self-awareness, even given in retrospect.

“His [Glass’] stories traded on stereotypes, on the world as some of us believe it is, or we’d like it to be,” Lane told the Pittsburgh Post-Gazette. “So there were stories on the pot-smoking young conservatives and on department-store Santas who were really child molesters.

All of this kind of stuff fit into people’s preconceptions. And it’s the biggest reason we should all be ashamed.”

And now we have the Der Spiegel scandal. Fifteen years later and liberal editors are still falling for the lies they want to hear.



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The Times appalling McCarthyist hit-piece

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... names & shames Sputnik journalistsThe Times has hit a new Russia-bashing low, publishing a hit piece on the Moscow funded outlet Sputnik. The ‘name and shame’ article lists eight employees of Sputnik, complete with their photos and full names.The story published on Sunday by one of the most respectable British newspapers is your usual attack on Russia and its foreign outreach efforts, described, of course, as propaganda. Technically it reports on the controversy over Integrity Initiative...

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Several red flags warning us that we're speeding towards an economic collapse - RIGHT NOW

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Dollar_dissolving_collapse.jpg

This isn't exactly an article loaded with Christmas cheer, but there's a very good reason that my family has strictly limited our holiday splurges this year. It's because all the signs right now seem to indicate the US is hurtling toward an economic collapse. It's inevitable, of course. Our economy has been artificially propped up for decades, since abandoning the gold standard. We're $21 trillion dollars in debt, an unfathomable number. The fact that other countries still lend us money boggles the mind. If the United States was a person with such a high ratio of debt that we aren't paying off, we wouldn't even be able to buy a car with one of those 25% interest loans, that's how bad our credit would be. Not only that, but there are some parties who seem to want to see the economy go belly up for their own greedy and nefarious purposes. Here are the red flags that have me concerned about an imminent economic collapse.

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The Worst Christmas Eve For The Stock Market EVER – The Dow Has Now Fallen More Than 5000 Points From The Peak

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This is definitely not the gift that investors wanted for Christmas. On Monday, the Dow Jones Industrial Average plunged 653 points as panic swept through Wall Street like wildfire. That represented a 2.9 percent daily decline, and that made it the worst Christmas Eve for the Dow ever recorded. Incredibly, the previous record had lasted for exactly 100 years. Normally the day before Christmas is a very, very quiet day on Wall Street, but right now there are no “normal” days for the financial markets. If you go back to early October, the Dow Jones Industrial Average hit an all-time record high of 26,951.81, and on Monday the Dow closed at just 21,792.20. That means that the Dow has now plummeted more than 5,000 points in less than three months, and that is a major milestone.

The S&P 500 also crossed a major milestone on Monday when it entered bear market territory

The term on Wall Street is synonymous with serious, long-lasting declines in stock markets. In numeric terms, a bear market is a 20 percent or more drop from a recent peak.

The S&P 500 hit that milestone on Monday, dropping 20 percent from its 52-week high. Markets have stumbled through what is usually one of their best months of the year, with indexes on track for their worst December performances since the Great Depression in 1931.

What this means is that the longest bull market in all of U.S. history is officially dead.

And there is still about a week left in the month. If things continue to unravel, this could ultimately turn out to be the worst December that the stock market has ever experienced.

Now that a bear market has begun, it is likely to stick around for a while. Just consider these numbers

Since World War II, bear markets on average have fallen 30.4 percent and have lasted 13 months, according to analysis at Goldman Sachs and CNBC. When that milestone has been hit, it took stocks an average of 21.9 months to recover.

Of course all of the “experts” consulted by the mainstream media are going to assume that there will eventually be a recovery.

But could it be possible that this is the beginning of the “big crash” from which we will never recover?

Without a doubt, the elements for a perfect storm have been coming together for a long time. We are witnessing great political shaking, our relationships with both Russia and China are rapidly deteriorating, a trade war has begun, social decay is spreading through our society like cancer, and the crust of our planet is becoming increasingly unstable. Now we can add economic and financial instability to the mix, and a scenario is emerging that is eerily similar to what I have been warning about for a very long time.

Even before the markets crashed on Monday, U.S. Treasury Secretary Steven Mnuchin had scheduled an emergency call with the “Plunge Protection Team”. The following comes from Reuters

The Treasury said Mnuchin will convene a call on Monday with the president’s Working Group on Financial Markets, which includes Washington’s main stewards of the U.S. financial system and is sometimes referred to as the “Plunge Protection Team.”

The group, which was also convened in 2009 during the latter stage of the financial crisis, includes officials from the Federal Reserve as well as the Securities and Exchange Commission.

But instead of calming the markets, many were concerned that this would actually accelerate the panic on Wall Street

“Panic feeds panic, and this looks like panic in the administration,” said Diane Swonk, chief economist at Grant Thornton. “Suggesting you might know something that no one else is worried about creates more unease.”

And without a doubt, what we witnessed on Monday was sheer panic.

Consumer lending has already been tightening up over the past couple of months, and the chaos on Wall Street is almost certainly going to cause financial institutions to become even tighter with their money.

As credit conditions tighten, economic activity will slow down, and that will make the coming recession even more inevitable.

There is one more key data point that I would like to share with you all today. Since 1960, there have only been 13 years when the stock market has declined for the year. As Joe Zidle has noted, most of the time those declines occur “before or during a recession”…

“I think there’s a massive gap between sentiment and fundamentals” for the market, Blackstone investment strategist Joe Zidle said on CNBC’s “Squawk Box.”

“If the market closes down for the year, which looks likely … it will only be the 13th time that we’ve seen a full year decline since 1960,” Zidle said. Of those 13 full year declines in the past 58 years, seven occurred before or during a recession.

Now that the Dow Jones Industrial Average has fallen more than 5000 points, I think that we can safely say that this is a stock market crash.

But how bad will this stock market crash ultimately turn out to be?

If the Federal Reserve had rushed in with emergency measures at the first signs of trouble, they probably could have stabilized things. But the longer they wait, the harder it is going to be to stop the process that has been set in motion.

The Bubble of All Bubbles is starting to burst, and unless we see dramatic central bank intervention soon it is likely that an unprecedented financial nightmare is ahead.

I hope that you are able to rest and relax with family and friends this time of the year, because it looks like what is ahead in 2019 is going to be extremely painful.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

The post The Worst Christmas Eve For The Stock Market EVER – The Dow Has Now Fallen More Than 5000 Points From The Peak appeared first on The Most Important News.



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Dow drops 653 points in worst Christmas Eve trading day ever

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Both major stock indexes nosedived on Monday in the worst day of Christmas Eve trading ever following tweets from President Donald Trump criticizing the Federal Reserve, according to CNBC. The plummet followed a tumultuous few days in Washington, amid reports that Trump was discussing how to remove Federal Reserve Chairman Jerome Powell. The Dow Jones Industrial Average dropped 653 points, falling below 22,000, on Monday and the S&P 500 entered a bear market after tanking more than 20 percent from a previous high. A bear market occurs after a drop of 20 percent or more following a recent high, and…

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Venezuelan Women "As Young As 14" Escape Socialism By Selling Sex, Hair And Breastmilk

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Women fleeing socialist Venezuela have taken to capitalism in order to survive; selling sex, hair and breastmilk as they make the perilous journey into neighboring Colombia in search of a better life. 

As Fox News' Hollie McKay reports, the Colombian border city of Cucuta is virtual chaos - as "Rail-thin women cradle their tiny babies, and beg along the trash-strewn gutters. Teens hawk everything from cigarettes to sweets and water for small change." 

The young, the old and the disabled cluster around the lone Western Union office – recently established to deal with the Venezuelan influx – in the hopes of receiving or sending a few dollars to send home. Without passports or work permits, the Venezuelans – many with university degrees or decent jobs in what was once the wealthiest nation in Latin America – are now resorting to whatever it takes to survive. -Fox News

Men buying hair approach groups of women with their young children, offering them enough to feed their families for a short while. Local wigmakers in Colombia will pay between $10 - $30, depending on length and quality. 

Other Venezuelan women - including girls as young as 14, resort to sex work on the streets of Cucuta - earning around seven dollars per john. 

Both men and women are exposed to sex trafficking along the route from Venezuela to Colombia. According to several walkers, some women “chose” prostitution as a means to make money and earn rides along the way. And some heterosexual men “sell themselves on the gay market” for a little money.

Other women are manipulated or forced into giving “pimp types” their documents and identification cards, and are subsequently drawn into prostitution rings. That's particularly the case in border areas, where many rebel and drug-trafficking groups operate. -Fox News

Back home in Venezuela, the situation is dire - as the socialist country suffers from starvation, disease, a lack of healthcare and extreme violence. Children have been dying from hepatitis and malaria. 

"There is a human catastrophe in Venezuela. There is a resurgence of illnesses that were eradicated decades ago. Hundreds have died from measles and diphtheria. Last year, more than 400,000 Venezuelans presented malaria symptoms. Up to now, there are over 10,000 sick people from tuberculosis," said Caracas mayor and former political prisoner Antonio Ledezma, adding: "People have been doomed to death. More than 55,000 cancer patients don’t have access to chemotherapy. Every three hours a woman dies due to breast cancer."

Caterine Martinez, an attorney, and director of the Prepara Familias (Ready Families) organization in Venezuela – which endeavors to support hospitalized children and their families and caregivers – concurred that the public health care issue in the country is nothing short of “severe.”

Currently there are no broad-spectrum antibiotics, not even basic antibiotics to treat basic pathogens from children and present chronic illnesses,” she said. “We don’t have x-rays working, they haven’t for a long time. We don’t have a CAT scanner or an MRI scanner. Many other vital medical instruments don’t work. The municipal blood banks don’t have reagents, therefore we have kids who are getting blood transfusions and are getting infected with hepatitis C and could even be injected with HIV.” -Fox News

Suicide rates have also skyrocketed according to Fox - even among children. A Venezuelan children's rights group, CECODAP, has estimated an 18% rise in teens killing themselves over the last year. 

Martinez estimates that over 55 percent of healthcare professionals - including doctors and nurses, have left Venezuela, while resident doctors who have remained make a scant $24 per month. Specialists can make $30. 

"We also have a severe problem with nutrition. There is no supply of baby formula, nor nutritional supplements. Therefore, we have a lot of malnourished children and the situation is then even more complicated," said Martinez. 

Julio Castro Mendez, a doctor who specializes in infectious diseases and is a Professor at the Medical Institute at the Central University of Venezuela, underscored that 65 percent of the country’s 70,000 patients with HIV have not received treatment in the past six months. Coupled with astringent malnutrition, some of his adult male patients have dwindled down to 77 pounds, he said.

“Maternal and infant mortality has also increased significantly in recent years, by more than 65 percent,” he added. “More than half of the deliveries in Cucuta are Venezuelan women who cross the border to that babies in environments that are more secure and better-equipped,” Mendez explained. -Fox News

Meanwhile, as Venezuelans suffer through survival conditions there is virtually no family planning - while Fox reporting some birth control pills are simply duds with no effect. As such, hospitals in neighboring countries - especially Colombia - have seen an influx of Venezuelan women who have crossed the border to give birth. 

"The level of women crossing the border to give birth has dramatically increased," said Miguel Barreto, Regional Director for Latin America for the UN's World Food Program WFP). "The forecast is for this only to get worse in 2019, so we plan to increase our response." 

Others in Venezuela are dying of starvation - with some women trying to support others by selling or donating their breast milk as a way to help or support their own families. 

"70 percent of people are facing steep food insecurity and acute malnutrition," said Barreto. This has led to crime in some instances - with children even sabotaging vehicles carrying food in order to hold up drivers

Not only do Venezuelan residents troll through trash cans looking for scraps, but many – including children – hide along roadsides and wait for a moment to strike, where they toss rocks at passing vehicles, or blow out tires with metal strip. Then they either steal or hold up the vehicle in the hopes of bargaining for food. Or they might loot a passing food government truck – making the job even more dangerous for the drivers.

The food trucks carry Venezuelan President Nicolas Maduro’s trademark boxes of subsidized food, known as CLAP. They were intended to feed a family of four for at least a week. But if and when the boxes come at all, Venezuelans claim, they are often spoiled.  -Fox News

Making life worse for Venezuelans is the rampant crime and violence permeating the country. 

"It is complete anarchy. There are tens of thousands of these gangs – Cuban and Venezuelan – who operate in every state," said a former Caracas security guard who was shot in the stomach by government-backed street gangs known as the "collectivos." 

"I have only managed to survive this long thanks to Jesus and the Holy Spirit." 



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Sunday, December 23, 2018

US Ambassador To Germany Attacked After Demanding Spiegel "Fake News" Investigation

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US Ambassador to Germany Richard Grenell has come under fire for demanding an independent probe into Germany's most significant journalism scandal in decades, after Der Spiegel admitted on Wednesday that one of its star journalists, Klaas Relotius, had fabricated reports for years; much of it anti-American in nature. 

Der Spiegel, Europe’s biggest-circulation current affairs magazine, revealed on Wednesday that award-winning writer Claas Relotius had been making up much of his reporting around the world, including crucial details in a colorful series of pieces about the U.S. that painted supporters of President Trump in Arizona and Minnesota as bigoted, radical, and at times xenophobic. -WSJ

In addition to having several awards stripped from him, the 33-year-old Relotius now faces embezzlement charges for allegedly soliciting donations for Syrian orphans from readers "with any proceeds going to his personal account," according to the BBC

Claas Relotius

In a late Friday letter to Der Spiegel's editor in chief, Grenell requested an "independent and transparent investigation" to determine how the fraud went undetected for so long, adding that the revelations "are troubling to the US Embassy, particularly because several of these fake stories focused on US policies and certain segments of the American people."

US Ambassador to Germany, Richard Grenell

"We are concerned that the leadership of Der Spiegel encourages this form of reporting and that the reporters appear to deliver what the leadership wants," wrote Grenell, who accused the paper of anti-American bias - writing that they had "routinely included information and stories which could have been proven untrue if they had checked the facts with the Embassy first."

"...it is routine practice for Spiegel reporters to not even call us before writing," added Grenell. 

Der Spiegel responded to Grenell, apologizing "to all American citizens who have been insulted and slandered by these reports," yet pushing back against Grenell's accusation of anti-American bias.

"If we criticize the American president, it is not anti-Americanism, but criticism of policies of the man in the White House," wrote Der Spiegel deputy editor in chief Dirk Kurbjuweit. 

Grenell hit back - tweeting "@DerSPIEGEL says they don’t have any anti-American bias. But the facts tell a different story. Below are only a few examples."

. @DerSPIEGEL says they don’t have any anti-American bias. But the facts tell a different story. Below are only a few examples. @sefi99 #spiegelgate pic.twitter.com/zf5uraPoqD

— Richard Grenell (@RichardGrenell) December 21, 2018

Grenell has been attacked for his letter to Der Spiegel. ZDF journalist Andreas Kynast tweeted "In the logic of an administration that sees any critical consideration as a country insult @DerSPIEGEL, this is, of course, anti-American. But also anti-German, anti-European and anti-earthly," to which Grenell shot back "We value policy criticism. We love a free press. But @Spiegel literally fabricated stories saying people (Americans) were racist & xenophobic. They made up events, details, & lies - and no editor checked the stories. Every real journalist should be outraged by this."

We value policy criticism. We love a free press. But @Spiegel literally fabricated stories saying people (Americans) were racist & xenophobic. They made up events, details, & lies - and no editor checked the stories. Every real journalist should be outraged by this. https://t.co/CVlSqgXIQe

— Richard Grenell (@RichardGrenell) December 22, 2018

Brookings Institute senior fellow Constanze Stelzenmüller took a shot at Grenell's letter, which she said suggests journalists should "call US Embassy before they start writing." 

Are you serious? Did you even read what Ambassador Grenell wrote? What you tweeted here is far from a misinterpretation of his letter. All stories should be sourced from both sides, which is standard journalistic practice. You must know this, ma'am.

— Jennifer_Williams (@JenniferW1776) December 23, 2018

Nope. Not true. Be accurate. We simply suggest reporters who write about us actually call us for reaction. https://t.co/XacXiPUh4d

— Richard Grenell (@RichardGrenell) December 22, 2018

The attacks on Grenell asking for an investigation into a massive fraud on Der Spiegel's readership have not gone unnoticed. 

.@RichardGrenell is being attacked by German media because he’s asking them not to fabricate stories, people, places, and times about how horrible and racist Americans are.

— John Cardillo (@johncardillo) December 22, 2018

It is mind-boggling and stomach-turning that US ambassador to Germany @RichardGrenell is being attacked for seeking to debunk a series of fabricated @DerSPIEGEL articles that say Americans are racists and culturally inferior. H/T > @johncardillo cc: @KurtSchlichter @rogerlsimon

— Benjamin Weinthal (@BenWeinthal) December 23, 2018


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Rand Paul Rages In Epic Festivus Tweetstorm: "Thanks To Trump, We're All Saying Merry Christmas Again"

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Senator Rand Paul (R-KY) has ended 2018 with his annual "Festivus" Tweetstorm - roasting Washington DC in an epic fashion using the Seinfeld-created holiday tradition's "Airing of Grievances" (which is of course followed by Feats of Strength). 

Paul starts off his 25-tweet sermon looking for Sen. Elizabeth Warren (D-MA).

I came to say Happy #Festivus to my friend Elizabeth Warren. Cant find her. pic.twitter.com/A4xSJ7Nf7x

— Senator Rand Paul (@RandPaul) December 23, 2018

From there, Paul says it's "time to talk" about certain people in Washington he has grievances with, "because it's the holiday season." 

"Let’s start with POTUS I like the President, I honestly do. I know people don’t believe me. But the man seems to have a problem keeping staff around him. But they solved the problem. I went to the White House the other day and there were at least 14 ppl in Mick Mulvaney masks."

Mick is a good friend of mine, in fact a lot of people probably don’t remember he was the national co-chair for my Presidential campaign. Uh oh, probably just got him fired. pic.twitter.com/3jH3ZsZh8r

— Senator Rand Paul (@RandPaul) December 23, 2018

Paul then notes that due to the passage of criminal justice reform, "and coming home from wars," that he must have a lot of influence on Trump. "It it true," Paul states. "I'm on the phone with him a good amount. But I have to tell you, I haven't gotten a word in on him in over a year." 

Jared Kushner was up next, whom Paul is glad he "got to know," because "before that I was a bit suspicious he was the kid for the Omen movie all grown up."

And folks, that is NOT who you want in charge of your Middle East peace plans.

— Senator Rand Paul (@RandPaul) December 23, 2018

Turning to Trump's border wall - Paul had a suggestion to improve security: 

It will be quite lovely really. And It was on sale for $99, so we can open the government back up now.

— Senator Rand Paul (@RandPaul) December 23, 2018

Next, the good Senator from Kentucky turned to Congress - noting that things "were so bad this week they made my friend Mike Lee say "doggone". It was nuts." 

Congress has now decided to shut down the government because they aren’t spending enough money. I got suspicious when Ted Cruz came back from Thanksgiving break with that beard. pic.twitter.com/y0r3dpFbbG

— Senator Rand Paul (@RandPaul) December 23, 2018

Lindsey Graham (R-SC) got the treatment next - with Paul joking of Graham's penchant for conflict "I have to tell you; I haven’t seen a Senator who loves war this much since the Star Wars Prequels."

I have to tell you; I haven’t seen a Senator who loves war this much since the Star Wars Prequels. pic.twitter.com/UFU242XYQK

— Senator Rand Paul (@RandPaul) December 23, 2018

"Lindsay and I were on the same side on foreign policy for about 5 minutes a few weeks ago, regarding the Saudis. He said it was a sign of “end times”. I guess we are all gonna live a bit longer after all," Paul added. 

On the topic of outgoing Secretary of Defense James Mattis, Paul noted "Many of these people hold these two views: 1 - that it was horrible to leave the war in Syria and 2 - that it is horrible that General Mattis left, since he was what kept the President from starting WWIII or something. I don’t understand how you hold both of those views."

Neocons!

Paul offered brief condolences to the neocons - as their rag, The Weekly Standard just folded, and Trump just made a decidedly anti-Neocon move with the Syria withdrawal. "I really think their holiday is already bad enough, I don't want to pile on," Paul said. 

Except - when it comes to National Security adviser John Bolton: 

I opposed John Bolton being hired. But I really can’t think of anything that makes me happier then thinking of him having to end wars for the rest of his time in the White House.

— Senator Rand Paul (@RandPaul) December 23, 2018

I hear they’re piping this into his office now for the entire Christmas season. .https://t.co/KLPpLHavSy

— Senator Rand Paul (@RandPaul) December 23, 2018

Paul ends by saying that he and Democrat Cory Booker (NJ) actually found mutual ground on a few issues - such as hemp legalization and criminal justice reforms, which must be "a Festivus miracle because Congress passed and the President signed BOTH of those things this week." 

So everyone enjoy your feats of strength today. Air your grievances here or in your home. But remember, thanks to Donald Trump we are ALL saying Merry Christmas this year — so repeat after me: MERRY CHRISTMAS and HAPPY HOLIDAYS to everyone even the haters and losers.

— Senator Rand Paul (@RandPaul) December 23, 2018


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US Futures Extend Losses At Open, Gold Tops $1260

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After a weekend of the following from the administration...

Sunday night's futures open is less dramatic than some expected but continues its downward trajectory with Dow futures down 100 points...

Nasdaq is down most, hovering around the Friday lows...

And bonds & bullion bid...

Let's see what happens when China comes in and remembers what happened on Friday in America.

And finally, as a reminder, before you hear how irrational this downturn is, here is Dave Collum's brief list of some of the silly, idiosyncratic events that happen when investors lose their minds:

  • Companies doubled their market caps by adding blockchain to their name or issuing a cryptocurrency.

  • An 18-year-old launched a hedge fund from his bedroom in suburban New Jersey.

  • Equities ran 300+% off the lows while the GDP tracked the Great Depression, compounding at 2% per year.

  • Value investing strategies have performed in the bottom 1 percentile since 1990.

  • The S&P ran 14 months in a row without a monthly loss.ref 76

  • Boeing rose 250% in two years.

  • Blue Apron IPOed at $10 a little over a year ago; it’s now at $1.23 and nobody has been indicted.

  • Tilray, a cannabis company reporting $28 million in sales, doubled in value in three trading days and rose tenfold in 2 months to a market cap of $20 billion before cutting in half. As Scott McNealy would say, “What were they smoking?”

  • Solid Biosciences has no revenues and disclosed that one of its clinical trials was put on hold before its IPO in January.ref 78 The company sported a $1 billion market cap.

  • Domino’s Pizza added 35% to a 20-fold, 10-year run aided by a debt-funded buyback program.ref 79

  • Yulong Eco-Materials, a tiny Chinese manufacturer of eco-friendly building products, rallied 950% in one day after the company acquired a gemstone for $50 million. The company claims the 17.9 kilogram Millennium Sapphire is worth up to $500 million, although the price suggests it’s worth . . . $50 million.

  • World Wrestling Entertainment (WWE) tripled in the first 9 months of 2018, sporting a trailing P/E of >150

  • 60% of corporate debt issued by companies in the Russell 2000 is rated as “junk.

  • GM pays its investors a dividend yield of 4.1% with a negative cash flow.

  • Uber has never turned a profit, but it’s about to go public at $120 billion.

New normal is over.



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In Defense of Powell's Restoration of Price Discovery

ORIGINAL LINK
Relying on fakery and addictive stimulus is the acme of fragility and vulnerability.
Let's start with a chart of the S&P 500:
SPX12-21-18a.png
Having become addicted to the Federal Reserve's nearly free money for financiers and the infamous Fed Put, stock market players are now weeping and thrashing about in the agony of withdrawal as Fed chair Jay Powell has instituted a cold-turkey withdrawal from the financial stimulus of the Bernanke-Yellen days.
Let's be clear: the policies of nearly free money for financiers (QE) and the Fed Put were unmitigated disasters, as they distorted financial markets so severely that the markets' pricing mechanisms have been crippled.
The policies of the Bernanke-Yellen Fed also directly exacerbated wealth-income inequality, as the wealth effect of rising equity valuations-- the supposed goal of monetary stimulus-- only benefited the top 5%, and most of the gains flowed to the top 0.1%.
Stripped of addictive stimulus and the backstop of the Bernanke-Yellen Fed Put, the markets are experiencing the pain of withdrawal and the traumatic return of price discovery. Although we're taught that capital has financial, intellectual and social forms, trust is also a form of capital, and thanks to the gross distortions and perverse incentives of the Bernanke-Yellen Fed, nobody trusts the market's price discovery mechanisms any more.
This is why market participants are so skittish and so easily panicked: they have no way of knowing what market valuations will be once the markets get through cold-turkey withdrawal from Fed smack and start discovering price via supply, demand, risk, cost of credit, discounting future cash flows, etc.--all the market mechanisms of transparent price discovery.
In effect, the Bernanke-Yellen Fed institutionalized the destruction of trust in U.S. markets in the pursuit of continued gains in equity valuations. Nobody trusted markets' price discovery, but they trusted the Fed to bail out the stock market should any latent price discovery take markets lower.
Everybody knew it was fake, but it was too profitable not to drink the Kool-Aid. Just as the punter high on cocaine feels he can conquer the world while onlookers marvel at his disconnect from reality, the Bernanke-Yellen Fed offered up addictive stimulus that generated an illusion of stability and an illusion of price discovery, illusions no sober participant believed.
If the punter on coke starts handing out $100 bills, why not take some? That's the Bernanke-Yellen Fed in a nutshell.
Addicts always think they can quit any time they choose. Stock market players reckoned they could discern when the Fed drug would wear off or trigger mass overdoses, and they'd exit the market with their gains well before things got out of hand. But the exit is small and the venue is cavernous and crowded: easier said than done.
Powell is trying to restore trust in the market by stripping it of the Bernanke-Yellen Fed Put. After a decade of addiction to Fed stimulus, it's tough to surrender the delusional convictions of the addict and start engaging the world as it is, which in financial markets mean transparent price discovery of all things, including risk and credit.
If we can dare to be honest for a moment, we'd confess that everybody knew the markets of the past decade were fake. When people can no longer tell the difference between fakes and the real deal, fraud is incentivized as trust is lost.
We are circling the financial Black Hole: reliance on fakery and the destruction of trust in markets have systemic consequences. We should be grateful to Jay Powell and his Board of Governors for refusing to steer the U.S. financial system and economy into the Black Hole from which there is no return.
Relying on fakery and addictive stimulus is the acme of fragility and vulnerability. If we want an anti-fragile, adaptive and durable financial system and economy, we need to start dealing with reality, and the first step is to restore markets' price discovery mechanisms, regardless of the short-term pain.
Short-term pain, long-term gain.
My book Money and Work Unchained is now $6.95 for the Kindle ebook and $15 for the print edition. Read the first section for free in PDF format.


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