"Trump is not only trying to usurp the congressional power to decide how taxpayers' money will be spent; he is threatening to interfere with the autonomy that states are supposed to have under the 10th Amendment. He is also contradicting his own position both before and after his election." Continue reading →
"Prosecutors in Pueblo, Colorado are dropping felony drug and weapon-possession charges after an officer involved in the case said he faked body cam footage so he could walk 'the courts through' the vehicle search that led to the arrest. The actual footage of the search that he produced in court was a reenactment of the search, the officer told prosecutors." Continue reading →
"A senior administration official told reporters on Friday that the president acted pursuant to his authority under Article 2 of the Constitution, which makes him commander in chief. And, the aide said, top officials including Vice President Mike Pence are in 'constant contact with congressional leaders.' On Thursday night, Trump laid out conventional U.S. rationales for unilateral military action in a way that suggests he does not see a need for formal authority from Congress." Continue reading →
"Twenty-four hours after the alleged incident – with the United Nations still refusing to say whether there had been a gas attack, or, if so, who is responsible – the President of the United States does a complete turnaround, ditches a campaign promise, and takes us to the brink of a greatly expanded war in Syria." Continue reading →
"The Fed's new restrictions come from the Dodd-Frank Act of 2010, which brought in a wave of reforms after the financial crisis. Under the new rule, banks that are going bankrupt -- or appear to be going bankrupt -- can no longer receive emergency funds from the Fed under any circumstances. However, it's important to note that the new rule allows the Fed to judge by its own measures whether a firm qualifies for its emergency aid. The idea is the Fed can still lend to banks during times of emergency, but the bank must be able to pay it back. Yet the true health of a bank in turmoil can be very difficult to assess." Continue reading →
"While the current rationale for encryption back doors is to fight terrorism, they wouldn’t be used just for that purpose. For proof, just look at the history of the PATRIOT Act. This law gives the US government unprecedented civil forfeiture authority over the US 'correspondent accounts' of any bank in the world. If an alleged terrorist or other criminal deposits money at the bank overseas, the PATRIOT Act allows the government to seize an equivalent sum of money in the correspondent account in the US. Proponents justified the law as a necessary escalation in the 'War on Terror.' But the very first time the government used its new civil forfeiture authority, it had nothing to do with terrorism." Continue reading →
"What made the Canadian recession easy to spot was the Canadian yield curve inverted out to three years following a surprise rate cut by the Bank of Canada on January 21. It remains to be seen if the US follows. The US contracted in the first quarter, but the second quarter rebound was a bit stronger than I expected. I awarded Canada the 'Blue Ribbon' for the first yield curve inversion of any major country following the great financial crisis. I smell an 'Operation Twist' type move by the Canadian central bank to rectify this horrific 'recession-signaling' condition. If so, the sweet spot for banks and hedge funds to front-run the trade appears to be 5Y or 7Y notes. Some banks may already be in on it." Continue reading →
"When you hear a central banker or politician deny that something is going to happen to bank depositors, you can almost be certain that it will happen. And probably soon. There’s a reason for the dishonesty. The government needs to take the public by surprise. Otherwise they won’t get the results they want from capital controls or a bank holiday. Calling the experience a bank holiday is like calling a street mugging a surprise party. Once the banks are closed - or on 'holiday,' as the government puts it - the politicians are free to help themselves to as much of the customer deposits (including yours) as they want. It’s like an all-you-can-steal buffet." Continue reading →
"Greek leaders have repeatedly dismissed the possibility they will have to 'bail-in' depositors to prevent the collapse of the banking system. But citing bankers and businesspeople with knowledge of the measures, the Financial Times reported: 'The plans, which call for a 'haircut' of at least 30 percent on deposits above 8,000 euros, sketch out an increasingly likely scenario for at least one bank.' The report quoted a source as saying: 'It (the haircut) would take place in the context of an overall restructuring of the bank sector once Greece is back in a bailout programme.' The head of Greece's Bank Association dismissed the report as 'completely baseless'." Continue reading →
"Earlier this summer, IMF bureaucrats went to Sofia, Bulgaria to study the country’s economic progress. And roughly a month ago, they released an official report which stated, among other things, that Bulgarian banks are 'stable and liquid.' Talk about epic timing. Because less than two weeks later, Bulgaria’s banking system was in the throes of a full-blown crisis. There was a run on two of the nation’s largest banks—several hundred million dollars had been withdrawn in a matter of hours. And the Bulgarian central bank had to step in and take over both of them or risk a collapse in the entire system." Continue reading →