Feb 5, 2014: News Updates

The I.M.F. Needs a Reset

By ROBERT H. WADE and JAKOB VESTERGAARD
February 4, 2014

For all the criticism that has been directed at it over the decades, the International Monetary Fund provides vital services to the world economy. In particular, it acts as the nearest thing to an international lender of last resort to countries experiencing external financial crises — and thereby helps to maintain international financial stability.

But the I.M.F. is experiencing a crisis of governance. The governments of big developing countries have become frustrated with the unwillingness of Western countries to adjust the distribution of power in the fund in line with their rising economic weight. Frustration has encouraged some to explore bypass institutions, such as the development bank and the currency-pooling scheme being negotiated among the BRICS (Brazil, Russia, India, China, South Africa)


http://mobile.nytimes.com/2014/02/05/opinion/the-imf-needs-a-reset.html?_r=3&referrer=

Argentine Banking System Archives Destroyed By Deadly Fire

 02/05/2014 13:57 -0500

While we are sure it is a very sad coincidence, on the day when Argentina decrees limits on the FX positions banks can hold and the Argentine Central Bank's reserves accounting is questioned publically, a massive fire - killing 9 people - has destroyed a warehouse archiving banking system documents. As The Washington Post reports, the fire at the Iron Mountain warehouse (which purportedly had multiple protections against fire, including advanced systems that can detect and quench flames without damaging important documents) took hours to control and the sprawling building appeared to be ruined. The cause of the fire wasn’t immediately clear - though we suggest smelling Fernandez' hands...

http://www.zerohedge.com/news/2014-02-05/argentine-banking-system-archives-destroyed-deadly-fire

The $15 trillion shadow over Chinese banks

China analyst Charlene Chu explains why the nation is on the verge of crisis

In a country where the banks, even the largest, are not known for openness, Chu has warned since 2009 about a rapid expansion in lending that has seen something close to $15 trillion (£9.1 trillion) of credit created, fuelling a property and infrastructure boom that has no equal in history.
.... “I just don’t agree with that because there is so much inter-linkage between the formal banking sector and the shadow banking sector and this product [the ICBC trust] is a good example.” Many take comfort that foreign currency reserves, estimated at close to $4 trillion, could be used to rescue the financial system in a crisis. Chu says such optimism is wishful thinking.

“The FX [foreign exchange] reserves cannot be used nearly to the extent that people think they can. There are some analysts that think they can’t be used at all, but I disagree with that.

....Not following the party line has seen Chu travel to China to inspect first-hand the building of “ghost cities” that developers claim are fully occupied, but that appear to be deserted except for a scattering of maintenance staff and increasingly despondent “entrepreneurs”.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10611931/The-15-trillion-shadow-over-Chinese-banks.html

UN accuses Vatican of adopting policies that allowed priests to rape children

UN has demanded that the Vatican 'immediately remove' all clergy who are known or suspected child abusers and turn them over to police, in an unprecedented and scathing report

 The Catholic Church continues to protect paedophile priests and should immediately turn them over to the authorities, the United Nations said in scathing report on the Vatican’s decades-long failure to tackle the scandal of sexually abusive clergy.

In a damning critique of the Holy See’s attempts to shield clergy from prosecution, the UN Committee on the Rights of the Child said that “tens of thousands of children worldwide” had been raped or molested in the past and that the abuse continues today.


http://www.telegraph.co.uk/news/worldnews/europe/vaticancityandholysee/10618983/UN-accuses-Vatican-of-adopting-policies-that-allowed-priests-to-rape-children.html

Europe exposed: Over $3 tn in emerging market loans

Published time: February 04, 2014 15:09
Edited time: February 05, 2014 17:08

 Negative shocks in the emerging market – fueled both internally and externally, have resulted in a $7 billion leak out of exchange traded funds in developing nation assets in January 2014, according to Bloomberg data.

Europe is currently trying to reform its banking system by performing stress tests to make sure banks have adequate capital, and it can expose weak points and boost investor sentiment after it was pummeled by the 2008 financial crisis.


http://rt.com/business/europe-banks-exposure-emerging-637/

Philippine leader likens China's rulers to Hitler

AFP
By Karl Malakunas 11 hours ago

Manila (AFP) - Philippine President Benigno Aquino has warned China's efforts to claim disputed territories are like Nazi Germany's before World War II, drawing a fierce Chinese response on Wednesday branding him ignorant and amateurish.
In an interview with the New York Times, Aquino called for world leaders not to make the mistake of appeasing China as it seeks to cement control over contested waters and islands in the strategically vital South China Sea.

http://news.yahoo.com/philippine-leader-likens-china-39-rulers-hitler-nyt-054955166.html

Google set to avoid EU’s $5 billion fine as antitrust case deal in sight

Published time: February 05, 2014 18:25

In a tentative agreement, Google has offered new concessions to the EU, which will probably be enough to settle a three-year antitrust investigation against the web giant; Google’s competitors accuse it of promoting its own services at their expense.

http://rt.com/news/google-antitrust-case-deal-753/

Canada to give bank account information to IRS under tax-sharing deal

Wed Feb 5, 2014 4:21pm EST

OTTAWA (Reuters) - Canada and the United States have signed a tax-information sharing agreement, officials from the two countries said on Wednesday, months ahead of implementation of a new U.S. law to crack down on offshore tax avoidance.

http://ca.reuters.com/article/domesticNews/idCABREA141U820140205

Tube strike disrupts journeys for London commuters

Overground trains and buses packed as major central stations close and severely limited service operates across tube network


http://www.theguardian.com/uk-news/2014/feb/05/london-tube-strike-disrupts-journeys-millions

This Time, Boehner "Capitulates" Early On Debt Ceiling

02/05/2014 15:28 -0500

Apparently squeezed by an internal party split, The Hill reports that House Republican leaders have concluded that they cannot pass an increase in the debt ceiling without help from Democrats, abandoning plans to tie legislation either to ObamaCare or the Keystone pipeline. Having initially planned on these negotiation points, Boehner discovered he would not have enough votes to pass the bill... and folded. That left Republican leaders with no clear alternative to addressing the debt limit, which, as we noted is rapidly approaching at the end of February, as a combination of Republicans and Democrats will be needed to get a debt-limit boost through the House - leaving some Reps describing a clean debt-ceiling bill as "Capitulation."

http://www.zerohedge.com/news/2014-02-05/time-boehner-capitulates-early-debt-ceiling

JPMorgan, Morgan Stanley fined $1.8 bn for concealing pre-crisis mortgage risk

Published time: February 05, 2014 12:30

Morgan Stanley has agreed to pay $1.25 billion to the US government, and JPMorgan has been fined $614 million as a penalty for concealing the full risk associated with mortgage securities.

... The Morgan Stanley settlement with the FHFA will be the third-largest against a Wall Street firm, with the authority having filed a total of 18 cases overall, the Wall Street Journal reports.

JP Morgan has so far paid the biggest fine of $4 billion, with Deutsche Bank second with a $1.93 billion bill.

In a fresh settlement JPMorgan agreed to pay $614 million for violating the False Claims Act, as the bank originated and acted as an underwriter for non-compliant mortgage loans submitted for insurance coverage and guarantees by US federal agencies.


http://rt.com/business/morgan-stanley-mortgage-penalty-673/


 Feb. 5, 2014, 12:41 p.m. EST

Probe into foreign-exchange practices at banks heats up

New York regulator requests documents from Goldman Sachs and others

http://www.marketwatch.com/story/probe-into-foreign-exchange-practices-at-banks-heats-up-2014-02-05


 Feb. 5, 2014, 11:09 a.m. EST

Rock-Star Pope at war with GOP’s Ayn Rand Capitalism

Commentary: Conservatives in defining ideological war of 21st century

 SAN LUIS OBISPO, Calif. (MarketWatch) — Yes, Pope Francis is officially a rock star. First pope ever on a Rolling Stone cover. Already Person of the Year for Time. Plus a CNN poll says 88% of Americans approve of Pope Francis.

All red flags warning Paul Ryan and GOP conservatives their extreme-right agenda is in more trouble than the low congressional poll numbers suggest. And no match against the Rock-Star Pope and his radical anticapitalist revolution for 1.2 billion Catholics worldwide.

Short term, we expect conservative politicians will keep pushing their hard-right agenda. But Pope Francis is a game-charger. Yes, conservatives will continue to suppress the minority vote ... block immigration reform ... cut aid to programs for the poor ... deny women the right to safe health care ... embrace Big Oil climate-science deniers ... and much more.

But they’re out of step with the revolution. The Rock-Star Pope is leading a historic paradigm shift, the voice an emerging new global collective conscience that’s rejecting today’s conservatism.

http://www.marketwatch.com/story/rock-star-pope-at-war-with-gops-ayn-rand-capitalism-2014-02-05?dist=afterbell

Vatican bank admits widows victims of crackdown

Associated Press
By NICOLE WINFIELD January 30, 2014 1:59 PM
VATICAN CITY (AP) — Dozens and perhaps hundreds of widows and Vatican pensioners recently came in for a rude surprise: The Vatican bank told them they had to close their accounts or risk losing access to their money — all in the name of Pope Francis' reform efforts, The Associated Press has learned.
The bank now says it was all a "technical error" and that the widows and pensioners are being kept on as clients. That reversal came despite the bank's highly-publicized plan to close so-called "lay accounts" as it tries to mend relations with Italian authorities who have suspected that Italians were using the bank as a tax haven.

http://news.yahoo.com/vatican-bank-admits-widows-victims-crackdown-185817761--finance.html

German ex-minister tapped as Vatican envoy

2:10 AM Tuesday Feb 4, 2014

BERLIN (AP) Germany plans to make a former minister who quit the government over allegations that she plagiarized parts of her thesis its new ambassador to the Vatican.

Annette Schavan, a reform-minded Roman Catholic and long-serving education minister who was considered close to Chancellor Angela Merkel, resigned last February after a university withdrew her doctorate. Schavan denies plagiarism and is fighting the decision.

http://www.nzherald.co.nz/world/news/article.cfm?c_id=2&objectid=11196266

Cost dispute halts work on Panama Canal expansion

 Feb 5, 2014 4:25pm EST

(Reuters) - The project to expand the Panama Canal, one of the world's most important shipping routes, was in doubt on Wednesday after talks between the canal administrator and a Spanish-led building consortium fell apart and work ground to a halt.

Group United for the Canal, a consortium led by Spanish builder Sacyr, said in a statement that the government's canal authority had broken off talks on who will pay some $1.6 billion needed to complete the ambitious project.

http://www.reuters.com/article/2014/02/05/us-sacyr-panama-idUSBREA140ZG20140205

Scientists sound warning over new bird flu virus

Chinese scientists sounded the alarm Wednesday after a new bird flu virus, H10N8, killed an elderly woman in December and infected another individual last month.

http://www.channelnewsasia.com/news/health/scientists-sound-warning/979696.html

 Duke Energy plant reports coal-ash spill

Posted: Tuesday, Feb. 04, 2014

Duke Energy said Monday that 50,000 to 82,000 tons of coal ash and up to 27 million gallons of water were released from a pond at its retired power plant in Eden into the Dan River, and were still flowing.

 http://www.charlotteobserver.com/2014/02/03/4661193/duke-energy-plant-reports-coal.html#.UvK4g03xvIU#storylink=cpy

Duke Energy told us their coal ash ponds were safe – they were wrong

“We are confident that each of our ash ponds has the structural integrity necessary to protect the public and the environment.”

That’s what Duke Energy says on its website in its defense of heated criticism that it has received for how it handles coal ash, a toxic waste product of burning coal.

Now, as a disaster for a local river and the people who live near it in North Carolina unfolds, it’s clear that the company was wrong.


http://greenpeaceblogs.org/2014/02/04/duke-energy-told-us-their-coal-ash-ponds-were-safe-they-were-lying-ignorant-or-both/?utm_source=gpusfb&utm_medium=blog&utm_campaign=duke

 Ireland banking collapse trial begins

Trial of former Anglo Irish Bank executives is expected to be the longest and most complex in Irish legal history.
Last updated: 05 Feb 2014 20:59

http://www.aljazeera.com/news/europe/2014/02/ireland-banking-collapse-trial-begins-201425195912462701.html

 Switzerland Aims to Become World's 'Digital Safe'

In a massive underground bunker in a secret location in the Swiss Alps lies one of Switzerland's 55 data centres. Industry insiders predict the wealthy Alpine nation will soon be known as the world's data vault.

http://www.kare11.com/video/2927075393001/1/Switzerland-Aims-to-Become-Worlds-Digital-Safe

Storm cancels thousands of fights in US Northeast

http://www.presstv.ir/detail/2014/02/05/349422/storm-cancels-fights-in-us-northeast/

Freak snow storm paralizes northern Iran

04 February, 2014 11:02 AM

http://rt.com/in-vision/record-snow-storm-iran/

British storms cause power cuts, batter sea walls

More than 8,000 homes were without power in southwest England on Wednesday after fresh storms battered the region, sending huge waves crashing onto the coastline and damaging sea defences.

http://www.channelnewsasia.com/news/world/british-storms-cause/982606.html

February 4, 2014, 4:01 p.m. ET

Brazil Power Outages Cut Electricity to Dozens of Cities

http://online.wsj.com/article/BT-CO-20140204-710827.html

Serbia: 1,000 evacuated from snow-hit cars, buses

http://www.nzherald.co.nz/europe/news/article.cfm?l_id=7&objectid=11195543

Questions of preservation after ancient village found in downtown Miami

By Matt Smith and Justin Lear, CNN
February 5, 2014 -- Updated 1234 GMT (2034 HKT)
(CNN) -- At the heart of a $600 million complex of Miami condominium and office towers, a network of holes in the ground has provided new insight into the people who were there first.

The holes lay out the foundations of a prehistoric settlement of the ancient Tequesta tribe at the confluence of the Miami River and Biscayne Bay. The Tequesta lived in what's now metro Miami until the 1700s, and the holes held pine posts that framed their thatched buildings.


http://edition.cnn.com/2014/02/04/us/florida-indian-village/index.html?hpt=hp_t3

Google mystery barge may be homeless

San Francisco (AFP) - A mystery barge being built by Google on a pier at a former Navy base in the San Francisco Bay may be told to cast off.

It turns out that officials running the base while it is in the process of being turned over to the city of San Francisco don't have permits for the Internet titan or anyone else to construct a vessel on the shore of Treasure Island.

"This is Google's vessel, but we are not dealing with them," San Francisco Bay Conservation and Development Commission regulatory affairs director Brad McCrea told AFP.

http://news.yahoo.com/google-mystery-barge-may-homeless-062955134.html

Feb 4, 2014: News Updates

 

Not Fit for the Next Crisis: Europe's Brittle Banking Union

German Finance Minister Wolfgang Schäuble has negotiated a European banking union suited perfectly to his country's tastes. It looks like a victory, but it could prove to be very expensive if Europe or Germany face another financial crisis.

http://www.spiegel.de/international/business/weak-eu-banking-union-could-have-dangerous-side-effects-a-940065.html



Feb. 4, 2014, 10:37 a.m. EST

Dun & Bradstreet falls 8% on impairment charges

NEW YORK (MarketWatch) - Shares of Dun & Bradstreet Corp. DNB -9.87% fell 7% Tuesday morning, more than any other stock on the S&P 500, after the company announced fourth-quarter results and shook up the ranks of top management. Revenue was up 3%, but net income fell 22% because the company had to take charges as it wrote off assets, part of a larger effort to cut costs. It has also been hurt by legal fees, after a Chinese court fined a D&B unit for illegally buying information on Chinese consumers.


http://www.marketwatch.com/story/dun-bradstreet-slips-on-impairment-charges-2014-02-04

FTSE falls amid global stocks sell-off

AFPBy AFP | AFP – 7 hours ago

London equities continued to fall at the open on Tuesday following heavy losses in Asia and on Wall Street as weak US data compounded worries about emerging markets.

The benchmark FTSE 100 index dropped 0.41 percent to 6,439.01 points in early deals compared with Monday's close.

Asian markets slumped on Tuesday -- led by a four-percent fall in Tokyo -- following a huge sell-off on Wall Street as disappointing Chinese and US manufacturing data rocked sentiment.


http://uk.news.yahoo.com/ftse-falls-amid-global-stocks-sell-off-101736309.html

Morgan Stanley is stuck in the middle of Hank Greenberg’s lawsuit against the government

February 4, 2014, 9:41 AM

Morgan Stanley is being pulled into Hank Greenberg’s lawsuit against the U.S. government.
Here’s where Morgan Stanley MS +1.50%  comes in: The bank advised the government on the AIG bailout. So somewhat unsurprisingly, Starr International asked Morgan Stanley last year to turn over bailout-related documents and make bank executives available for deposition.  But that request was less-than-warmly received. Last week, Starr International asked a federal claims court in Washington, D.C. to force Morgan Stanley to turn over more documents.


http://blogs.marketwatch.com/thetell/2014/02/04/morgan-stanley-is-stuck-in-the-middle-of-hank-greenbergs-lawsuit-against-the-government/

Treasury's Lew warns that U.S. default could happen quickly

WASHINGTON (Reuters) - The Obama administration warned on Monday it could start defaulting on the government's obligations "very soon" after it runs out of room to borrow under a legal cap on public debt.


http://news.yahoo.com/treasury-39-lew-warns-u-default-could-happen-140809355--business.html

 Report: Corruption widespread in EU

Report highlights business-political nexus and corruption's $162.19bn annual cost to European economies.

..."Europe's problem is not so much with small bribes on the whole," Carl Dolan of Transparency International in Brussels, told Reuters. "It's with the ties between the political class and industry."

"There has been a failure to regulate politicians' conflicts of interest in dealing with business," he said.


http://www.aljazeera.com/news/europe/2014/02/eu-report-corruption-widespread-bloc-20142313322401478.html

 The Fed: New leader, old complaints

The US Fed has a new, progressive leader - but worries about its opacity and ties to big banks are likely to persist.

 02 Feb 2014 13:32

...Lee said that while the Fed bailed out the large banks, it didn't ensure that small businesses and individuals had access to the financial support they needed, pointing to a disappointing jobs report released in January. "The Fed's way of restoring the economy is extremely biased toward the banking industry. Their quantitative easing is a way for bankers to make free money," she said, referring to the central bank's bond-buying programme designed to stimulate the economy.

Another common complaint is that the Fed's leadership is too closely entwined with those of big banks. The president of the Federal Reserve Bank of New York, William Dudley, was a former managing director at Goldman Sachs, and was the firm's chief economist. The head of the Philadelphia Fed has served as a consultant to JP Morgan Chase. Atlanta President Dennis Lockhart is an alumnus of both Citigroup and Heller Financial. Dallas President Richard Fisher ran a capital management firm. Stanley Fischer, who will serve as vice chair under Yellen, is a former vice chairman for Citibank, a former governor of the Bank of Israel, and, perhaps most notably, served as PhD adviser for outgoing Fed Chair Ben Bernanke at the Massachusetts Institute of Technology.


http://www.aljazeera.com/indepth/features/2014/02/fed-new-leader-old-complaints-2014226225401460.html

J.P. Morgan pays $1.45 million to settle sex-discrimination lawsuit

February 4, 2014, 11:43 AM

J.P. Morgan Chase & Co. will pay $1.45 million to settle claims that female employees at an Ohio call center were discriminated against.

http://blogs.marketwatch.com/thetell/2014/02/04/j-p-morgan-pays-1-45-million-to-settle-sex-discrimination-lawsuit/

Spy agencies, prime minister's adviser defend Wi-Fi data collection

'It's data about data,' Stephen Harper's national security adviser says of metadata collection

By Laura Payton, CBC News Posted: Feb 03, 2014 11:59 AM ET

Forster said the agency used metadata to develop a model that showed they could track an internet user's network activity "around a public access mode," and that the tracking didn't happen in real time.

Metadata reveal a trove of information including, for example, the location and telephone numbers of all calls a person makes and receives...


http://www.cbc.ca/news/politics/spy-agencies-prime-minister-s-adviser-defend-wi-fi-data-collection-1.2521166

China warns officials not to cover up corruption

Tue Feb 4, 2014 2:47am EST

BEIJING (Reuters) - Authorities in China have warned they will go after officials who cover up corruption, state media reported on Tuesday, in the government's latest effort to curb widespread graft.

The ruling Communist Party has shown no sign of wanting to set up an independent body to fight graft, however, and has arrested at least 20 activists who have pushed for officials to reveal their wealth, convicting two and sentencing a third activist to a jail term.


http://ca.reuters.com/article/topNews/idCABREA130BV20140204

UBS profit beats forecasts after big tax benefit

Tue Feb 4, 2014 2:19am EST

ZURICH (Reuters) - Switzerland's UBS (UBSN.VX: Quote) swung to a larger-than-expected fourth-quarter profit on Tuesday, bolstered by a big tax benefit and a nimbler investment bank.

UBS's net profit for the quarter stood at 917 million Swiss francs ($1.02 billion), including a 470 million franc benefit from deferring its taxes.


http://ca.reuters.com/article/businessNews/idCABREA1308020140204

The Belarusian Connection

Obamacare network vulnerable to cyber attack- February 3, 2014 8:11 pm

U.S. intelligence agencies last week urged the Obama administration to check its new healthcare network for malicious software after learning that developers linked to the Belarus government helped produce the website, raising fresh concerns that private data posted by millions of Americans will be compromised.

http://freebeacon.com/the-belarusian-connection/

Canadian citizenship bill to be tabled Thursday

New rules will allow government to strip dual nationals of citizenship in 'extreme' cases

 Feb 03, 2014 6:00 PM ET

As reported by CBC News last month, Alexander will introduce sweeping changes to Canada's citizenship rules in what the government is calling "the first comprehensive reform to the Citizenship Act in more than a generation​."

The more controversial changes include new rules that would allow the government to strip dual nationals of their citizenship in "extreme cases," such as in cases of "treason" or "acts of terrorism."


http://www.cbc.ca/news/politics/canadian-citizenship-bill-to-be-tabled-thursday-1.2521910

Financial crisis for many, bonanza for the few

Feb 4 2014

Despite what the UK's ruling politicians or statisticians from palm-greased think tanks may say, the UK’s economic “recovery” is visible nowhere on the country’s streets.

The opiate of Quantitative Easing (QE) or Printing Money, the £375 billion fraudulently spirited up so far, is making some of the figures look good, but it is killing the patient.


http://removingtheshackles.blogspot.com/2014/02/financial-crisis-for-many-bonanza-for.html

UK describes UN bedroom tax report as 'misleading'

Tue Feb 4, 2014 5:1PM GMT

The UK government has furiously reacted to a UN report in which the world body’s investigator Raquel Rolnik calls on British authorities to discard the so-called bedroom tax.

The report by the UN special rapporteur on housing, fully published on Monday, has been rejected by the coalition ministers as “partisan” and a “misleading Marxist diatribe.”


http://www.presstv.ir/detail/2014/02/04/349232/uk-rejects-un-report-on-bedroom-tax/

U.S. asks jurors to convict former SAC fund manager Martoma

NEW YORK Mon Feb 3, 2014 6:02pm EST

Cohen, 57, has not been charged and denies wrongdoing. The U.S. Securities and Exchange Commission is seeking to bar him from the financial services industry for failing to supervise Martoma and another employee.

SAC Capital agreed last year to pay $1.8 billion in criminal and civil settlements and plead guilty to fraud charges stemming from insider trading by its employees.


http://www.reuters.com/article/2014/02/03/us-sac-martoma-idUSBREA121DI20140203

The US And China Are Right To Distrust Each Other

 02/03/2014 22:14 -0500

...Thus, at most states can trust other states to pursue their own interests (even this is not advisable since it assumes both sides are able to correctly identify that state’s interests). And this is preciously why the U.S. and China do not trust each other and aren’t likely to start anytime soon– namely because they largely have opposing interests in the Western Pacific. America’s interest is in preserving the current status-quo, which is a regional order built around the United States. China’s interest is in rebuilding the regional status-quo that existed before the arrival of the Europeans. That is, Beijing seeks a Sino-centric order.


http://thediplomat.com/2014/02/the-us-and-china-are-right-to-distrust-each-other/

China Boosting Military Spending in 2014

February 4, 2014 11:15 am

China will ramp up military spending this year as the United States and other countries take money away from defense budgets. China is bumping up its funding for China’s People’s Liberation Army by nearly $10 billion, according to the New York Times’ Sinosphere blog.

http://freebeacon.com/china-boosting-military-spending-in-2014/

Treasury IG to Admin: Stop Changing Obamacare

‘Changes in ACA implementation will create challenges’

    February 4, 2014 12:32 pm

A new audit by the Treasury Inspector General for Tax Administration warned that further changes to the implementation of the Affordable Care Act would create “challenges” for the IRS.

The Obama administration has repeatedly altered the law, delaying the employer mandate until 2015 and suspending numerous enrollment requirements due to the disastrous roll out of Healthcare.gov.


http://freebeacon.com/treasury-ig-to-admin-stop-changing-obamacare/

Japanese Stocks In Freefall - TOPIX Plunges Almost 5% To 4-Month Lows; Nikkei Down 15% In 2014- 02/03/2014 23:46

UPDATE: USDJPY has re-tumbled back below 101.00, recoupling with S&P 500 futures from the tried-and-failed attempt to ramp stocks overnight. It seems the short-JPY-driven carry traders have backed away from risk for now, no matter how much the BoJ primes the pump.


http://www.zerohedge.com/news/2014-02-03/japanese-stocks-freefall-topix-plunges-almost-5-4-month-lows

 Arms Exports: Berlin Backs Large Defense Deal with Saudi Arabia

Berlin has often been criticized in recent years for selling weapons to questionable regimes. Now, the German government is backing a billion-euro deal for 100 patrol boats.

The German government has often drawn serious criticism for supporting defense deals with countries known to have democratic deficiencies. In the latest controversial move, SPIEGEL has learned that the new government in Berlin wants to secure a major defense deal with Saudi Arabia by offering Hermes export credit guarantees.

The plans are the first by the new government, comprised of Merkel's conservatives and the center-left Social Democratic Party, to export weapons to the Gulf region. In 2011, the German government was criticized for plans to sell battle-tanks to Saudi Arabia after it helped rulers in neighboring Bahrain to violently suppress protests there during the Arab Spring. Despite it's often pacifist positions on global security issues, Germany is also in the seemingly contradictory position of being one of the world's largest arms exporters.


http://www.spiegel.de/international/germany/germany-backing-billion-euro-defense-deal-with-saudi-arabia-a-950759.html

 Billions from Beijing: Africans Divided over Chinese Presence

Chinese companies have pumped billions into Africa to secure access to natural resources, boosting countries' economies along the way. Ordinary citizens aren't reaping the benefits, though, and have become increasingly wary of the new investors.

...It wasn't easy to gain a foothold in Tanzania, he says, "but we Chinese are not afraid of taking risks. We see Africa with different eyes than the West, not as a rotten continent, but as an economic region with enormous potential."

...China, Asia's economic superpower, is hungry for natural resources, energy, food and markets for its products. Africa can offer all of these things: about 40 percent of global reserves of natural resources, 60 percent of uncultivated agricultural land, a billion people with rising purchasing power and a potential army of low-wage workers.

...There are now more than 2,000 Chinese companies and well over a million Chinese citizens in sub-Saharan Africa. They can be encountered in the major cities, in mining centers and oil fields, on plantations and even in the most remote jungle villages. They include managers and military advisers, doctors and agronomists, engineers and importers, itinerant traders, small business owners and contract workers employed on countless construction sites.


http://www.spiegel.de/international/world/chinese-investment-in-africa-boosts-economies-but-worries-many-a-934826.html

 JPMorgan’s $543 Million Madoff Trustee Settlement Approved

 Feb 4, 2014 5:58 PM GMT+0100

JPMorgan Chase & Co. (JPM)’s $543 million settlement with the trustee for Bernard Madoff’s defunct firm was approved by the judge overseeing its liquidation, ending a case in which thousands of investors accused the bank of turning a blind eye to the U.S.’s biggest Ponzi scheme.

...Picard said New York-based JPMorgan, the biggest U.S. bank, ignored signs of wrongdoing to benefit financially from the con man’s business.

http://www.bloomberg.com/news/2014-02-04/jpmorgan-s-543-million-madoff-trustee-settlement-approve.html

 France to open Rwanda genocide trial

Former Rwandan intelligence chief to face charges of complicity in genocide before a court in Paris.   04 Feb 2014 01:56
A former Rwandan intelligence chief is about to go on trial in France for his role in the 1994 genocide that killed more than 500,000 people.

France is trying to catch up with a UN tribunal and other courts that have convicted dozens and shed light on the genocide nearly two decades ago. Activists hope the Paris trial will remind French leaders of their role and responsibility in Africa, and mark the end of an era in which France provided a haven for those who committed atrocities abroad. In 2004, the European Court for Human Rights based in the eastern city of Strasbourg condemned France for taking too long to consider one woman's legal effort over the Rwanda genocide.


http://www.aljazeera.com/news/europe/2014/02/france-open-rwanda-genocide-trial-20142401418844735.html

83% feel corruption is 'widespread' - 29% say corruption affects their daily life

Some 83 per cent of the Maltese agree that corruption is widespread, according to an EU survey published today.

53% of Maltese citizens say corruption is particularly widespread among officials issuing building permits.

Approximately one in four Europeans and 29 percent of the Maltese consider that they are affected by corruption in their everyday lives.


http://www.timesofmalta.com/articles/view/20140203/local/29-of-maltese-feel-corruption-affects-their-daily-life.505325#.UvCWnE3xvIV

Gov't seeks approval for dumping Fukushima plant groundwater into sea

TOKYO, Feb. 3, Kyodo

The government on Monday sought approval of a nationwide fisheries federation to dump groundwater at the crippled Fukushima Daiichi nuclear complex into the sea on condition that the water's contamination level is far below the legal limit.


http://english.kyodonews.jp/news/2014/02/269390.html


Monday, February 03, 2014

It Doesn't Have to Be This Way

"Induce people all to want the same thing, hate the same things, feel the same threat, then their behavior is already captive--you have acquired your consumers or your cannon-fodder."

The potential for transformation can be expressed in one simple phrase: it doesn't have to be this way.

The structures that benefit from dominating the current system maintain their dominance by convincing us that "the way it is" is inevitable and impervious to systemic change. That is the primary mythology that generates and maintains their dominance.


http://charleshughsmith.blogspot.com/2014/02/it-doesnt-have-to-be-this-way.html

Obamacare To Crush Workforce By 2.5 Million Workers In Next Decade, CBO Admits

02/04/2014 11:30 -0500

When the "impartial" Congressional Budget Office first attempted to predict the impact on the US labor force as a result of the administration healthcare ponzi scheme, also known affectionately as Obamacare and less affectionately by other names, it estimated that 800,000 Americans would drop out of the labor force by 2021. Moments ago it just revised that projection, admitting that it was off by the usual 100% or so: the hit to the US labor force due to Obamacare is now estimated to soar to 2.3 million through 2021, and furthermore the CBO just admitted that the enrollment rate will be dramatically below the White House's baseline estimates, with 2 million fewer people signing up this year than previously estimated.


http://www.zerohedge.com/news/2014-02-04/obamacare-crush-workforce-25-million-workers-next-decade-cbo-admits

The White House (And Its Faithful) Scramble To Refute CBO Report On Obamacare Job Losses

02/04/2014 15:01 -0500

Earlier we reported how, in the CBO's own words, Obamacare would result in (at least) 2.5 million (soon to be revised much higher) workers departing the labor force over the next decade, that would stay there were it not for the skewed incentives provided by this latest welfare Ponzi scheme. Sure enough, it took the White House mere moments to share its canned retort seeking to control the major fallout this report generated as it goes, once again, against all of Obama's promises. From Reuters: "The White House on Tuesday refuted arguments that Obamacare reforms will hurt jobs, and said a new report from the Congressional Budget Office finds the reforms will spur hiring during the 2014-2016 period. "Claims that the Affordable Care Act hurts jobs are simply belied by the facts in the CBO report," the White House said in a statement about the report, contradicting assessments that said the CBO showed reforms will result in a cut to hours." So job losses after 2016, but before then the surge in hiring - of part-time workers - offset by mass layoffs of full-time workers as employers seek to game Obamacare. Just say that then.

Of course, the White House scrambling to contain the damage is expected. However, nothing compares to the "explanation" provided by The Bezos Post's internal "fact checker."  The "explanation" there why "No, CBO did not say Obamacare will kill 2 million jobs" (which it did) is truly an example of a Goebbelsian work of art when it comes slaying any facts that do not fit the "glorious leader" narrative.

http://www.zerohedge.com/news/2014-02-04/white-house-and-its-faithful-scramble-refute-cbo-report-obamacare-job-losses


 4 February 2014 Last updated at 12:24

Queen to meet Pope Francis in Rome

The Queen The Queen will have lunch with Italy's president and an audience with Pope Francis


The Queen and the Duke of Edinburgh are to visit Rome later this year for an audience with Pope Francis, Buckingham Palace has said.
The BBC's royal correspondent Peter Hunt said the Queen's "relaxed" meeting with the Pope will be at his residence.
He added that the Queen would not wear black or a veil, as she has done on three previous visits to the Vatican in deference to convention.

http://www.bbc.co.uk/news/uk-26032412

Bank of Canada names former BMO executive as special adviser

Tue Feb 4, 2014 11:00am EST

http://ca.reuters.com/article/businessNews/idCABREA1311720140204

Canada senator, ex-senator charged with fraud on expenses

Tue Feb 4, 2014 2:24pm EST

http://ca.reuters.com/article/domesticNews/idCABREA131AV20140204

Hong Kong shares have worst day in 1-1/2 years, Lenovo crumbles

Feb 4 (Reuters) - Hong Kong shares suffered their biggest daily tumble in nearly 1-1/2 years in strong volumes, with Chinese growth-sensitive sectors sliding as investors returned on Tuesday from the Lunar New Year holiday, catching up with losses elsewhere.

...Turnover faded after a robust morning session, with a good portion coming for Lenovo Group alone as its shares plunged 16.4 percent in its biggest one-day decline since January 2009.


http://www.reuters.com/article/2014/02/04/markets-hongkong-stocks-close-idUSH9N0K201Q20140204

 Federal government to set new regulations allowing banks to serve marijuana sellers

Tuesday, February 04, 2014

Champions of states' rights may have even more to get excited about as the federal government announces plans to back off and allow cannabis businesses in Colorado and Washington to access and use banking institutions. Politico.com reports that the Obama administration will soon unveil updated federal guidelines for how newly established recreational marijuana dispensaries can safely deposit cash and perform other banking transactions without violating federal money laundering laws.


http://www.naturalnews.com/043765_banks_marijuana_sellers_federal_government.html

You Can Buy A House For One Dollar Or Less In Economically Depressed Cities All Over America

By Michael Snyder, on February 2nd, 2014

And guess who is selling more "one dollar homes" than anyone else?
If you guessed "the federal government" you would be correct.
Right now, the federal government is selling foreclosed homes to low income families all over the country for just one dollar...
Before you get too excited, there are a whole bunch of reasons why you wouldn't want to actually buy any of these one dollar homes.
First of all, most of them have been totally trashed.  Just to get them up to livable condition would take thousands of dollars in most cases.  Many of them are full of asbestos, and severe wiring and plumbing issues are quite common.
....Fourthly, property taxes are very high in many of these cities.  Local governments are desperate to get people into these homes so that they can get the taxes flowing again.  In many cases, what you would pay in taxes for a year is more than the true value of the home itself.

http://theeconomiccollapseblog.com/archives/you-can-buy-a-house-for-one-dollar-or-less-in-economically-depressed-cities-all-over-america

Your house keys may be obsolete

You can now open your front door with a smartphone. But should you?

http://www.marketwatch.com/story/is-it-easier-to-hack-a-door-lock-than-pick-one-2014-02-03

Feb 3, 2014: News Updates

Latin American Currencies Plunge To 2003 Lows, Argentine BONARs Shrink

 02/03/2014 14:02 -0500

With today's plunge, Latin American currencies have collapsed by over 5% in th elast 2 weeks - the fastest drop in almost two years. Year-over-year this is a 15.75% drop, the largest such drop since Lehman. This drop breaks the 2009 lows and presses the currencies to their weakest since 2003... Bond markets are being crushed as short-dated Argentine BONARs have collapsed to 14 month lows.


http://www.zerohedge.com/news/2014-02-03/latin-american-currencies-plunges-2003-lows

European Central Bank seeks banks too troubled to lend money as it purges financial system

FRANKFURT - In Europe, the zombie hunt is on.

Not for undead humans, that is, but zombie banks — the walking dead among lenders, too financially troubled to loan money to an economy that desperately needs investment, growth and jobs.

The European Central Bank, the lead crisis-fighter for the 18 countries that use the euro, is embarking on an extensive search through the books of the biggest banks. It's an arcane exercise — but one whose results will impact people's jobs, businesses and lives. The idea is to restore the system's ability to lend by weeding out lame banks.


http://ca.finance.yahoo.com/news/european-central-bank-seeks-banks-too-troubled-lend-192152559.html

Loonie’s luck runs out as dollar forecasts revised even lower

Cross border shopping has suddenly become a lot less attractive for Canadians.

The Canadian dollar has nosedived, falling below the 90-cent (U.S.) mark last week for the first time since 2009.

Economists are calling January one of the worst months for the loonie since the 1950s, with no relief in sight for at least the next few months.


http://ca.finance.yahoo.com/blogs/balance-sheet/loonie-luck-runs-dollar-forecasts-revised-even-lower-153439493.html

 Emerging Market FX Hits Fresh 5-Year Low - Contagion Unfixed

02/03/2014 11:37 -0500


It was only a few days ago that Emerging Market FX was rallying on the back of a Turkish Central Bank rate hike that "fixed" everything. It was only a few days ago that investors were told they were "stupid" if bearish on US stocks because of EM weakness. Things have not gone as planned. That temporary blip has been demolished and EM FX has crumbled lower to fresh 5-year lows with many hitting record lows... and no, this does not mean money will flow back into US stocks (as we exclaim below).

    *COLOMBIAN PESO EXTENDS DROP, FALLS 1.7% TO 2,050.25 PER USD
    *ARGENTINE PESO WEAKENS 0.2% TO 8.0344/USD IN OFFICIAL MARKET
    *TURKISH STOCK INDEX DECLINES 2ND DAY TO LOWEST SINCE JULY 2012
    *YANUKOVYCH SAYS UKRAINE MUST STOP `EXTREMISM AND RADICALISM'



EM FX hits fresh 5-year low...



http://www.zerohedge.com/news/2014-02-03/emerging-market-fx-hits-fresh-5-year-low-contagion-unfixed

The Next 24 Hours Are Going To Be HUGE

Joe Weisenthal
Feb. 2, 2014, 4:00 PM   

First, to set the scene, last week was one of the more volatile weeks in global markets that we've seen in a long time. Stocks ended the week with two straight down days, resulting in the worst January for stocks since 2010.

Over the weekend, the official Chinese PMI report confirmed an economic slowdown, as manufacturing hit its worst level in six months, a fact that acts as a drag on global emerging markets.


 http://www.businessinsider.com/february-3-economic-data-2014-2#ixzz2sHzrXgzS

Treasury Chief: US Will Run Out of Money in February

The U.S. government says it will run out of money to pay its bills in late February, a bit sooner than first thought.

In December, Treasury chief Jacob Lew wrote to congressional leaders that the borrowing limit would be reached in late February or early March. But on Thursday, he urged Congress to raise the country's borrowing limit again by the end of February, to make sure the country does not default on its debts.


http://www.voanews.com/content/treasury-chief-us-will-run-out-of-money-in-february/1831700.html

European banks have $3 trillion of exposure to emerging markets

LONDON Mon Feb 3, 2014 6:20pm GMT

(Reuters) - European banks have loaned in excess of $3 trillion (1.83 trillion pounds) to emerging markets, more than four times U.S. lenders and putting them at greater risk if financial market turmoil in countries such as Turkey, Brazil, India and South Africa intensifies.

The risk is most acute for six European banks - BBVA, Erste Bank, HSBC, Santander, Standard Chartered, and UniCredit - according to analysts.


http://uk.reuters.com/article/2014/02/03/uk-europe-banks-emergingmarkets-idUKBREA121AP20140203

IMF sees limited room for Bank of Canada rate cut

Mon Feb 3, 2014 11:39am EST

OTTAWA (Reuters) - The International Monetary Fund (IMF) said Monday Canada's central bank is likely to hold its main interest rate steady until early 2015, and the bank has limited room to cut rates because of overvalued housing prices and record household debt.


http://ca.reuters.com/article/businessNews/idCABREA120Z720140203

Citigroup, And Former Fed, Economist To Take Top Treasury Post

02/03/2014 15:42 -0500

Confirming the floating rumor from last week that yet another Wall Streeter from a bailed out bank is going to set US economic policy, moments ago the Treasury announced that indeed the Citigroup economist Nathan Sheets - the bank's global head of international economics - will start working next week as a counsellor to U.S. Treasury Secretary Jack Lew.

.... Previously, Mr. Sheets worked at the Federal Reserve Board for 18 years in a variety of positions. From September 2007 to August 2011, he served as Director of the Board’s Division of International Finance and one of three Economists to the Federal Open Market Committee. He advised the Committee on macroeconomic and financial developments in foreign economies, as well as on the outlook for U.S. trade, the dollar, and global commodity prices. He also played a key role in developing the Fed’s swap line program with other central banks. From 2006-07, while on leave from the Board, he served as a Senior Advisor to the U.S. Executive Director at the International Monetary

http://www.zerohedge.com/news/2014-02-03/citigroup-and-former-fed-economist-take-top-treasury-post

Reuters link from above article: http://uk.reuters.com/article/2014/02/03/uk-usa-treasury-idUKBREA121CW20140203

Lloyds delays dividend prospect after mis-selling charge

Feb 3, 2014 8:58am GMT

(Reuters) - Lloyds Banking Group (LLOY.L) said it won't ask Britain's financial regulator to allow it to start paying dividends again until the second half of the year, disappointing investors who had hoped for a payout on 2013 earnings.

The state-backed bank pushed back its dividend prospects on Monday after taking a further 1.8 billion pound ($3 billion) charge for the mis-selling of loan insurance.


http://uk.reuters.com/article/2014/02/03/uk-lloyds-dividend-idUKBREA1209A20140203



February 3, 2014

Shake me, wake me!

     The rot moves from the margins to the center, but the disease moves from the center to the margins. That is what has happened in the realm of money in recent weeks due to the sustained mispricing of the cost of credit by central banks, led by the US Federal Reserve. Along the way, that outfit has managed to misprice just about everything else  — stocks, houses, exotic securities, food commodities, precious metals, fine art....

...Meanwhile, the rot of epic mispricing expresses itself in collapsing currencies and the economies they are supposed to represent: India, Turkey, Argentina, Hungary so far. Italy, Spain, and Greece would be in that club if they had currencies of their own. For now, they just do without driving their cars and burn furniture to stay warm this winter. Automobile use in Italy is back to 1970s levels of annual miles-driven. That’s quite a drop.

     Before too long, the people will be out in the streets engaging with the riot police, as in Ukraine. This is long overdue, of course, and probably cannot be explained rationally since extreme changes in public sentiment are subject to murmurations, the same unseen forces that direct flocks of birds and schools of fish that all at once suddenly turn in a new direction without any detectable communication.


http://kunstler.com/clusterfuck-nation/shake-me-wake-me/

Stock market live blog: S&P 500 loss steepest since June; Nasdaq down over 100 points

February 3, 2014, 9:47 AM

http://blogs.marketwatch.com/thetell/2014/02/03/stock-market-live-blog-china-worries-weigh-but-pfizer-climbs/

Hackers sue Merkel and entire German government over NSA spying

Published time: February 03, 2014 14:28

Europe’s largest association of hackers has filed a criminal complaint against the German government for aiding foreign spying by NSA and GCHQ, and violating the right to citizens’ privacy, basing their case on leaks by whistleblower Edward Snowden.


http://rt.com/news/hackers-sue-german-government-584/

DOJ expands bribery probe; SAC’s London team finds a new home

February 3, 2014, 10:12 AM

More bank probes: The DOJ is widening its probe and looking at banks, hedge funds and private-equity firms for any violation of anti-bribery laws when it comes to Libya’s government-run investment fund, according to a report in The Wall Street Journal. The firms under the spotlight include Goldman Sachs Group Inc. GS -1.86% , Credit Suisse Group AG CS -2.52% , J.P. Morgan Chase & Co. JPM -1.38%  and private equity firm Blackstone Group L.P. BX -4.89% ........


http://blogs.marketwatch.com/thetell/2014/02/03/doj-expands-bribery-probe-sacs-london-team-finds-a-new-home/

Perth Mint and U.S. Mint See Higher January Gold Sales

Posted on February 3, 2014

Gold is marginally lower in all major currencies today except sterling which has weakened due to concerns that the Bank of England will continue its ultra loose monetary policies. Gold ticked higher in Asia prior to price falls....

Australia’s Perth Mint, which refines most of the bullion from the world’s second-biggest producer, joined the U.S. Mint in reporting gold demand climbed in January. Sales of coins and the increasingly popular minted gold bars at the Perth Mint increased 10% to 64,818 ounces last month from 58,944 ounces in December. The mint sold 912,388 ounces of silver compared with 845,941 ounces in December, it said.

Sales of gold coins by the U.S. Mint rose 63% in January to the highest since April. Sales climbed to 91,500 ounces from 56,000 ounces in December, while sales of silver coins almost tripled to 4.78 million ounces, the highest in a year, the data showed.


 http://www.maxkeiser.com/2014/02/perth-mint-and-u-s-mint-see-higher-january-gold-sales/#kZARuywFPyHLV6if.99

Financial world shaken by 4 bankers' apparent suicides in a week

Published time: February 03, 2014 12:16

The apparent suicide death of the chief economist of a US investment house brings the number of financial workers who have died allegedly by their own hand to four in the last week.


http://rt.com/business/russell-investments-chief-economist-dead-564/

A Rash of Deaths and a Missing Reporter – With Ties to Wall Street Investigations

By Pam Martens: February 3, 2014

In a span of four days last week, two current executives and one recently retired top ranking executive of major financial firms were found dead. Both media and police have been quick to label the deaths as likely suicides. Missing from the reports is the salient fact that all three of the financial firms the executives worked for are under investigation for potentially serious financial fraud.

...The case of David Bird, the oil markets reporter who had worked at the Wall Street Journal for 20 years and vanished without a trace on the afternoon of January 11, has this in common with the other three tragedies: his work involves a commodities market – oil – which is under investigation by the U.S. Senate’s Permanent Subcommittee on Investigations for possible manipulation. The FBI is involved in the Bird investigation.


http://wallstreetonparade.com/2014/02/a-rash-of-deaths-and-a-missing-reporter-%E2%80%93-with-ties-to-wall-street-investigations/

Web companies give first look at secret government data requests

Mon Feb 3, 2014 3:51pm EST

 SAN FRANCISCO (Reuters) - Facebook, Microsoft, Yahoo and Google on Monday began publishing details about the number of secret government requests for data they receive, hoping to show limited involvement in controversial surveillance efforts.

The tech industry has pushed for greater transparency on government data requests, seeking to shake off concerns about their involvement in vast, surreptitious surveillance programs revealed last summer by former spy contractor Edward Snowden.

The government said last month it would relax rules restricting what details companies can disclose about Foreign Intelligence Surveillance Act (FISA) court orders they receive for user information.


http://ca.reuters.com/article/technologyNews/idCABREA121H920140203

Total ban on GM food production mulled in Russia

Published time: February 03, 2014 09:38

A group of Russian MPs have prepared a bill severely restricting imports of genetically modified agricultural produce, and completely banning its domestic production.
...The pro-GMO businessman also pointed out that the discussion of the problem should not be limited to the agriculture and food industries. He said that 70 percent of genetically enhanced materials were used in pharmacology and medicine, 20 percent were used in industry and only 10 percent of GMOs were used in agriculture and food production.


http://rt.com/politics/russia-gmo-foods-ban-567/

Saudis snub US congressional delegation

By Joel Gehrke | JANUARY 31, 2014 AT 8:45 AM


Saudi Arabian diplomats and military officials refused to meet with a bipartisan delegation of senior congressional staffers who visited the Middle Eastern country last week, an unusual snub that suggests increased tension between the U.S. and a key ally.


http://washingtonexaminer.com/saudis-snub-us-congressional-delegation/article/2543226

According To Bank Of America The Outlook For The Entire World Has "Deteriorated" Due To Cold US Weather- 02/03/2014

It really doesn't get funnier than this, and explains the 7 figure comp for the Bank of America authors who can certainly get matching compensation in the comedy circuit. From BofA's Naeem Wahid:

    We recommend closing the short EUR/SEK trade that we initiated last week. While Swedish economic data have improved, as we expected, the global outlook has deteriorated – caused by a larger than expected weather effect in the US (the US ISM has fallen to 51.3, from December’s 56.5). As such we close out the trade at  8.8300 (entered at 8.8100) and look to reinitiate once risk appetite turns positive again.


http://www.zerohedge.com/news/2014-02-03/according-bank-america-outflook-entire-world-has-deteriorated-due-cold-us-weather



Monday, February 3, 2014

Get your opiates for free: Capitalism meets the zombie apocalypse

I think I have found a new low in the pharmaceutical industry: giving away a month's free supply of potentially lethal high-grade opiods.

This ambitious marketing strategy allows more than enough time and supply to create addicts.


http://brontecapital.blogspot.com/2014/02/get-your-opiates-for-free-capitalism.html

Coffee futures leap 7%, head for highest close since May

February 3, 2014, 12:41 PM

Coffee futures headed for their highest settlement in almost nine months on Monday, as traders fretted over the outlook for supplies on the back of record heat in Brazil.


http://blogs.marketwatch.com/thetell/2014/02/03/coffee-futures-leap-7-head-for-highest-close-since-may/

February 2, 2014: Todays News ... not about the Superbowl

Libya Says Goldman Didn’t Explain Options

By FLOYD NORRIS
Goldman Sachs's building on Fleet Street. The Libyan Investment Authority filed a lawsuit against Goldman in London.Peter Macdiarmid/Getty Images Goldman Sachs’s building on Fleet Street. The Libyan Investment Authority filed a lawsuit against Goldman in London.

In early 2008 — months before the financial crisis began — Goldman Sachs put $1.2 billion of Libyan money into leveraged bets that six stocks would rise over the next three years.

None of them did. Libya lost every dollar that was invested.


http://dealbook.nytimes.com/2014/01/30/libya-says-goldman-didnt-explain-options/?_php=true&_type=blogs&_r=0

Goldman Awards Blankfein $14.7 Million in Stock Bonus

By RACHEL ABRAMS
Lloyd C. Blankfein has been chief executive of Goldman Sachs since June 2006.Rebecca Cook/Reuters Lloyd C. Blankfein has been chief executive of Goldman Sachs since June 2006.

Updated, 8:20 p.m. |  Goldman Sachs’s board granted its chief executive, Lloyd C. Blankfein, restricted shares worth $14.7 million as part of his pay package for 2013, according to a filing made public on Thursday.


http://dealbook.nytimes.com/2014/01/30/goldman-awards-blankfein-14-7-billion-in-stock-bonus/

Zimbabwe adopts Chinese yuan as legal currency

HARARE — Zimbabwe’s central bank announced on Wednesday it would accept the Chinese yuan and three other Asian currencies as legal tender as economic relations have improved in recent years.

"Trade and investment ties between Zimbabwe, China, India, Japan and Australia have grown appreciably," said Charity Dhliwayo, acting governor of the Reserve Bank of Zimbabwe.

Exporters and the public can now open accounts in yuans, Australian dollars, Indian rupees and Japanese yen, Dhliwayo said. Zimbabwe abandoned its worthless currency in 2009.


http://www.bdlive.co.za/africa/africanbusiness/2014/01/30/zimbabwe-adopts-chinese-yuan-as-legal-currency

Regulators close Syringa Bank of Idaho

Regulators closed a small bank in Idaho on Friday, the third bank failure for 2014.
Syringa Bank, Boise, Idaho, was closed by the Idaho State Banking Department. Sunwest Bank, Irvine, Calif., agreed to take over the deposits of the failed bank as part of a purchase-and-assumption deal with the Federal Deposit Insurance Corp.


http://www.marketwatch.com/story/regulators-close-syringa-bank-of-idaho-2014-02-01

Currency crisis at Chinese banks 'could trigger global meltdown’

A rise in foreign funding at China's banks poses a threat for international lenders

 The growing problems in the Chinese banking system could spill over into a wider financial crisis, one of the most respected analysts of China’s lenders has warned.

Charlene Chu, a former senior analyst at Fitch in Beijing and now the head of Asian research at Autonomous Research, said the rapid expansion of foreign-currency borrowing meant a crisis in China’s financial system was becoming a bigger risk for international banks.


http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10612451/Currency-crisis-at-Chinese-banks-could-trigger-global-meltdown.html

Market Cornered: JPMorgan Owns Over 60% Notional Of All Gold Derivatives

Perhaps the only question we have after seeing the attached table, which shows that as of Q3, 2013 JPMorgan owned $65.4 billion, or just over 60% of the total notional ($108.2 billion) of all gold derivatives in the US, is whether the CFTC will pull the "our budget was too small" excuse to justify why it allowed Jamie Dimon to ignore any and all position limits and corner the gold market?


http://www.zerohedge.com/news/2014-02-01/market-cornered-jpmorgan-owns-over-60-notional-all-gold-derivatives

"The 'Recovery' Is A Mirage" Mark Spitznagel Warns, "With As Much Monetary Distortion As In 1929"

"Today there is a tremendous amount of monetary distortion, on par with the 1929 stock market and certainly the peak of 2007, and many others," warns Universa's Mark Spitznagel.


http://www.zerohedge.com/news/2014-02-01/recovery-mirage-mark-spitznagel-warns-much-monetary-distortion-1929

Kicillof sought help from foreign banks to get dollars

Argentina is imperative to get the dollars that can counter the flight of capital, which in January alone cost the Central Bank (BCRA) U.S. $ 2.499 billion of its reserves. It was the biggest drop since 2006, when the country canceled its entire debt of more than U.S. $ 9 billion to the International Monetary Fund (IMF).

The minister confided bankers requesting leave to look for dollars abroad, either by issuing new debt or through commercial credit lines that banks could get. Some entities, according to sources consulted by the NATION, and would have set to work to organize a tour to Kicillof investment to New York this month.


http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.lanacion.com.ar%2F1660464-kicillof-pidio-ayuda-a-los-bancos-extranjeros-para-conseguir-dolares

Law Doesn’t End Revolving Door on Capitol Hill

By ERIC LIPTON and BEN PROTESS
Erik Olson was chief of staff to Representative Ron Kind, Democrat of Wisconsin until September. He soon became a lobbyist. Because his salary fell below a cap established in House rules, a one-year ban on lobbying his former boss does not apply.Tom Williams/CQ Roll Call, via Getty Images Erik Olson was chief of staff to Representative Ron Kind, Democrat of Wisconsin until September. He soon became a lobbyist. Because his salary fell below a cap established in House rules, a one-year ban on lobbying his former boss does not apply.

A top aide to a Republican congressman from Arizona helped promote a legislative plan to overhaul the nation’s home mortgage finance system. Weeks after leaving his government job, he reappeared on Capitol Hill, now as a lobbyist for a company poised to capitalize on the plan.

A former counsel to Democrats on the House Financial Services Committee left Capitol Hill a year ago. He, too, returned to the Hill just months later, lobbying committee aides on behalf of Wall Street giants like JPMorgan Chase and Bloomberg L.P.


http://dealbook.nytimes.com/2014/02/01/law-doesnt-end-revolving-door-on-capitol-hill/?hp

Over Just 7 Days, Lenovo Wraps Up Two Deals Totaling $5.2 Billion

The chief financial officer of the Chinese technology giant Lenovo was scheduled to spend last week rubbing elbows with Hollywood celebrities, corporate chieftains and government leaders in Davos, Switzerland.

Instead, the executive, Wong Wai Ming, a 54-year-old former investment banker, was shuttling between law firm offices in frigid Manhattan, putting together two of the most transformative deals in Lenovo’s 30-year history.

In just seven days, Lenovo announced a $2.3 billion deal to buy IBM’s low-end server business and a $2.9 billion pact to acquire Motorola Mobility from Google.


http://dealbook.nytimes.com/2014/01/30/over-just-7-days-lenovo-wraps-up-two-deals-totaling-5-2-billion/



SAN FRANCISCO (MarketWatch) — Halfway through fourth-quarter earnings season, U.S. stocks are coming off their worst January in years, sending the message to Corporate America that par for the course isn’t good enough after the run-up in stock prices over the past year.

http://www.marketwatch.com/story/par-earnings-not-good-enough-after-2013-stock-run-up-2014-01-31?link=MW_popular

Jim Willie Reveals the SMOKING GUN On US Gold Rehypothecation!

The Doc sat down with the Golden Jackass himself this weekend for an in-depth interview covering the state of the gold market and the Western banking system.
Willie discusses the German efforts to repatriate their gold reserves (along with the implications of only receiving 5 tons from the NY Fed in year 1), as well as Bafin’s investigation into precious metals manipulation and why unlike the CFTC’s, it is likely to result in criminal charges.
Finally, courtesy information provided by a high level executive at one of the world’s leading private refineries, Willie reveals the ‘smoking gun‘ evidence that proves US gold was rehypothecated over a decade ago!


http://www.silverdoctors.com/jim-willie-2/

Ukraine and the growing number of disappeared activists

As Ukraine's protest movement enters its third month, the opposition say that 36 activists have gone missing. David Blair talks to the families of the disappeared


http://www.telegraph.co.uk/news/worldnews/europe/ukraine/10611822/Ukraine-and-the-growing-number-of-disappeared.html

Fragile economies under pressure as recovery prompts capital flight

So far this year $12bn of foreign money has fled the stock markets of emerging economies, and last week's Fed decision will accelerate that. We look at how further loss of western funds could affect six vulnerable countries


http://www.theguardian.com/business/2014/feb/02/emerging-markets-brazil-indonesia-south-africa

Keystone XL supporters, detractors clash over U.S. pipeline report

The Conservative government received some much-needed good news this week in the form of the U.S. State Department's massive and benign final assessment of the proposed Keystone XL pipeline.

Ever since Stephen Harper called American approval of the $5.4-billion pipeline from Alberta to the U.S. Gulf Coast a "no-brainer" back in September 2011, a lot has been riding on the eventual vindication of the prime minister's thinking.


http://www.cbc.ca/news/canada/keystone-xl-supporters-detractors-clash-over-u-s-pipeline-report-1.2519704

Report Opens Way to Approval for Keystone Pipeline

WASHINGTON — The State Department released a report on Friday concluding that the Keystone XL pipeline would not substantially worsen carbon pollution, leaving an opening for President Obama to approve the politically divisive project.


http://www.nytimes.com/2014/02/01/us/politics/report-may-ease-way-to-approval-of-keystone-pipeline.html?_r=0

California drought means agency won't allot water

America's the most populous state faces severe drought after 3 years of below-normal precipitation

Amid severe drought conditions, California officials announced Friday they won't send any water from the state's vast reservoir system to local agencies beginning this spring, an unprecedented move that affects drinking water supplies for 25 million people and irrigation for 1 million acres of farmland.


http://www.cbc.ca/news/world/california-drought-means-agency-won-t-allot-water-1.2519927

Thailand votes in snap elections amid mass unrest

Polling stations have opened in Thailand but anti-government protesters forced the closure of more than 10 percent of booths nationwide, an Election Commission official said. The snap elections are taking place after Prime Minister Yingluck Shinawatra failed to quell violent protests in the nation aimed at toppling her government. Security is boosted around the polls, with police and soldiers on the streets.

01:12

Iran gets $500 mn in frozen assets

Iran has received the first portion of its unfrozen assets as a part of a nuclear deal with world powers, deputy foreign minister Abbas Araqchi announced. “The first tranche of $500 million was deposited in a Swiss bank account, and everything was done in accordance with the agreement,” Araqchi said. According to the deal with the P5+1 group, the five permanent members of the UN Security Council plus Germany, Iran will regain access to some $4.2 billion in frozen assets with payments evenly distributed across 6 months. In exchange Iran has agreed to limit its uranium enrichment to 5 percent and began implementing the deal on January 20.


http://rt.com/news/line/2014-02-02/#54428

Beverage of champions: Chocolate milk gets an Olympic-style makeover

It’s been kicked out of some school cafeterias and vilified as a junk-food beverage that’s contributing to childhood obesity. But chocolate milk is making a comeback with an unlikely new image: the perfect drink for Ironman and Olympic athletes after a grueling workout.


http://www.washingtonpost.com/business/economy/beverage-of-champions-chocolate-milk-gets-an-olympic-style-makeover/2014/01/31/a13261b6-89c8-11e3-916e-e01534b1e132_story.html

Watch Out, A Currency Reset Is Coming… World Bank BOMBSHELL: The Dollar Is Collapsing ECONOMIES

http://investmentwatchblog.com/watch-out-a-currency-reset-is-coming/#gqCfwAu4GOj3ZPdo.99

NHS care watchdog warns of 'alarming' culture

The NHS will “go bust” without radical change to drive up standards and rid hospitals of a “toxic” bullying culture that damages patient care, the head of its official regulator has warned.


http://www.telegraph.co.uk/health/nhs/10612450/NHS-care-watchdog-warns-of-alarming-culture.html

Sumatra volcano kills 14, spews lava

At least 14 people have died after a volcano on the Indonesian island of Sumatra spewed lava and hot gas.

Most of the 14 victims died in a village less than 3km from the peak of Mount Sinabung, said Asren Nasution, head of the local disaster management agency.


 http://www.smh.com.au/world/sumatra-volcano-kills-14-spews-lava-20140202-31ugq.html#ixzz2sAPQblgC

February 1, 2014: News Notes

Fresh turbulence drives down currencies, bonds again

(Reuters) - Fresh waves of turbulence engulfed emerging markets on Friday, with a renewed slide in the Russian rouble and a sharp rise in bond yields across the board despite policymakers' efforts to staunch the bleeding.

http://www.reuters.com/article/2014/01/31/us-markets-emerging-idUSBREA0U0TW20140131

Ireland puts first bankers on trial since crisis

(Reuters) - Ireland put three former bankers on trial on Friday in its first such case since the financial crisis that forced it to accept an 85 billion euro (69 billion pounds) international bailout.

The three former executives of collapsed Anglo Irish Bank pleaded not guilty to charges of providing unlawful financial assistance by lending money to others to buy the bank's shares, boosting its stock price.

http://uk.reuters.com/article/2014/01/31/uk-ireland-banks-idUKBREA0U0WG20140131

Why the rich are freaking out

http://www.politico.com/story/2014/01/wealthy-top-one-percent-economy-finance-102833.html

Judge approves Bank of America $8.5 bln settlement

NEW YORK (MarketWatch) -- Bank of America Corp. BAC -1.06% has been given approval to settle its case with investors for $8.5 billion over faulty mortgage-backed securities originated in its Countrywide unit, according to a report in The Wall Street Journal on Friday. A New York State judge has given the go-ahead on a deal that was made in June 2011 but was opposed by certain investors including American Insurance Group Inc. AIG -1.88% . AIG argued the deal was unfair and that the amount was far short of the losses to investors. The more than two-year process is considered a victory for the bank that has been closely watched by the industry. Bank of America shares were down 1%.



http://www.marketwatch.com/story/judge-approves-bank-of-america-85-bln-settlement-2014-01-31

Stoxx Europe 600 posts worst monthly loss since June

LONDON (MarketWatch) — European stock markets ended January with their worst monthly loss since June on Friday, after an unexpected drop in euro-zone inflation added to fears of deflation in the region.

http://www.marketwatch.com/story/european-stocks-fall-ahead-of-inflation-jobs-data-2014-01-31

Stocks slammed! Official 'correction' looms

Stocks are getting boot-stomped on Friday ending what is setting up to be the worst January since 2010. The S&P500 (^GSPC) ) is only down about 3.5% in 2014 and still hasn’t corrected yet, but it feels worse than that with momentum stocks taking a pounding and volatility coming back from the dead. It’s been a rude awakening for investors conditioned to buy every dip since 2011.

http://finance.yahoo.com/blogs/breakout/stocks-slammed--official--correction--looms-160156717.html

Is your money safe at the bank? An economist says ‘no’ and withdraws his

The Fed policies of Ben Bernanke and Janet Yellen, who begins her term Feb. 1, are making former Harvard economist Terry Burnham withdraw his money from Bank of America.

http://www.pbs.org/newshour/making-sense/is-your-money-safe-at-the-bank-an-economist-says-no-and-withdraws-his/

Theft Is Deflationary - Especially The Crony-Capitalist/State Kind

....Thank you, Jeff, for explaining the causal connection between systemic theft and deflation. To all those terrified of deflation (for example, central bankers and their cronies holding trillions of dollars in phantom assets and illusory collateral), the solution is obvious: get rid of systemic theft. But since those terrified of deflation are at the top of the monopoly-power thievery pyramid, that is asking the impossible: for the thieves to relinquish their power to steal.

http://www.zerohedge.com/news/2014-01-31/theft-deflationary-especially-crony-capitaliststate-kind

Exclusive: South Sudan rebel leader says government derailing peace talks

(Reuters) - South Sudan rebel leader Riek Machar accused the government on Friday of ethnic cleansing and trying to sabotage peace talks, in his first face-to-face interview since fighting erupted late last year in Africa's youngest nation.

http://www.reuters.com/article/2014/02/01/us-southsudan-unrest-machar-idUSBREA0U16O20140201

Yahoo Reports Security Attack on Mail Accounts

Internet Firm Prompts Users to Change Passwords for Security
Yahoo Inc. YHOO +1.98% disclosed a coordinated attack aimed to gain unauthorized access to its Yahoo Mail accounts and said it prompted users to change their passwords to re-secure their accounts.

http://online.wsj.com/news/articles/SB10001424052702303519404579353250260494992?ru=MKTW&mod=MKTW&mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303519404579353250260494992.html%3Fru%3DMKTW%26mod%3DMKTW

Conrad Black stripped of Order of Canada

Former media baron was made an officer of the Order of Canada in 1990

Former media baron and convicted fraudster Conrad Black has been stripped of the Order of Canada by Gov. Gen. David Johnston.

http://www.cbc.ca/news/canada/conrad-black-stripped-of-order-of-canada-1.2519299

US suspends 92 nuke officers amid cheating scandal

The United States military has suspended 92 officers in charge of nuclear missiles operations after they allegedly cheated in a proficiency test exam.

http://www.presstv.ir/detail/2014/01/30/348518/us-military-suspends-92-nuke-officers/

'Cashgate' trial begins in Malawi

President Joyce Banda ordered investigation of politicians and businessmen over millions of dollars in embezzlement.

http://www.aljazeera.com/video/africa/2014/01/gate-trial-begin-malawi-20141294295112213.html

Italy biggest banks could pocket 3.5 bln euros from BOI's stake sale -analysts

Jan 31 (Reuters) - Italian banks Intesa Sanpaolo and UniCredit could cash in up to 3.5 billion euros ($4.7 billion) combined from the sale of part of their revalued stakes in the central bank, according to analyst calculations.

The Italian parliament on Wednesday gave final approval to a decree hiking the value of Bank of Italy's (BOI) share capital to 7.5 billion euros from 156,000 euros previously, which had not been changed since the 1930s.

http://www.reuters.com/article/2014/01/31/intesa-unicredit-centralbank-stake-idUSL5N0L53LR20140131

UK media alarmed by govt bill allowing seizure of journalists’ notes, files

UK media organizations have warned that if a government bill authorizing police to seize journalists' notebooks, photos and digital files is passed Monday, it could seriously endanger press freedom in the country.

http://rt.com/news/freedom-seizure-journalists-bill-512/

Once troubled Bank of Cyprus leaves politically unstable Ukraine

Protests in Kiev are spooking investors, and the latest is Bank of Cyprus, which plans on selling its loss making Ukrainian subsidiary Alfa Group Ukraine Limited for 225 million euro by the end of March.
...The debt crisis in Cyprus forced Bank of Cyprus, the country’s biggest bank, to abruptly close in March 2013, and reopen only under the condition it placed a levy on its big depositors to help pay for the country's bailout.


http://rt.com/business/bank-cyprus-ukraine-alfa-479/

 Meltdown: A global tsunami

How an epidemic of fear caused the world's major banks to stop lending, triggering protests and industrial action.

We explore a renegade executive who nearly destroyed the global financial service, and the treasury secretary who bailed out his old friends.
Meltdown, a four-part series on the secret history of the global financial collapse, can be seen each week from January 24, 2014, at the following times GMT: Friday: 2000; Saturday: 1200; Sunday: 0100; Monday: 0600

http://www.aljazeera.com/programmes/meltdown/2014/02/20142184012587798.html

Ex-New York mayor Bloomberg named UN climate envoy

Former New York mayor Michael Bloomberg has been appointed as UN special envoy for cities and climate change.

http://www.bbc.co.uk/news/world-us-canada-25991600

Rob Ford reportedly ticketed for jaywalking in Vancouver

VANCOUVER – Rob Ford has travelled to Vancouver but controversy has followed the embattled Toronto mayor.
Media reports say Ford was ticketed for jaywalking Friday night.

http://metronews.ca/news/canada/928345/rob-ford-reportedly-ticketed-for-jaywalking-in-vancouver/

CSEC Snowden docs: MPs grill defence minister on spying revelation

Tories say independent report shows CSEC obeys law as NDP, Liberals call tracking, spying illegal
Opposition MPs say the government has to do more to reassure Canadians after a document newly released by former NSA contractor Edward Snowden suggested Canada's communications spy agency tracked people through free airport Wi-Fi.

The top secret document shows Canada's electronic spy agency used information from the free internet service at a major Canadian airport to track the wireless devices of thousands of ordinary airline passengers for days after they left the terminal.

http://www.cbc.ca/news/politics/csec-snowden-docs-mps-grill-defence-minister-on-spying-revelation-1.2518564

These Devices May Be Spying On You (Even In Your Own Home)

Think you are safe in your own home? These innocent-looking devices may be spying on you, or performing other nefarious actions:

http://www.forbes.com/sites/josephsteinberg/2014/01/27/these-devices-may-be-spying-on-you-even-in-your-own-home/

Montana jury awards $52 million in lawsuit against bank

http://www.greatfallstribune.com/viewart/20140122/BUSINESS/301220019/Montana-jury-awards-52-million-lawsuit-against-bank

Australia confirms turning immigrant boats back

Australian authorities have confirmed for the first time that they are turning boats carrying asylum-seekers back to Indonesia as part of Canberra’s military-led Operation Sovereign Borders crackdown on people-smuggling.

“What I have confirmed today is... that any vessel that seeks to illegally enter Australian waters will be intercepted and will be removed from our waters and our contiguous zone,” Immigration Minister Scott Morrison said on Friday.

http://presstv.com/detail/2014/01/31/348546/migrant-boats-are-turned-back-australia/

Debt-damned economics: learn monetary reform or kiss your assets goodbye. 1 of 2

http://www.examiner.com/article/debt-damned-economics-learn-monetary-reform-or-kiss-your-assets-goodbye-1-of-2

Debt-damned economics: learn monetary reform or kiss your assets goodbye. 2 of 2

http://www.examiner.com/article/debt-damned-economics-learn-monetary-reform-or-kiss-your-assets-goodbye-2-of-2

Pope Francis fires all but one cardinals who run Vatican bank just 11 months into their five-year term

    The cardinals were appointed by Benedict XVI shortly before he resigned
    The Vatican bank was caught in a money-laundering row in 2010

http://www.dailymail.co.uk/news/article-2540454/Pope-Francis-fires-one-cardinals-run-Vatican-bank-just-11-months-five-year-term.html

 Orphans of the Sahara: Rebellion

Part two of this series explores northern Mali in 2012 as it falls to Tuareg separatists and their al-Qaeda rivals. Early in 2012, as the massive Tuareg rebellion sweeps northern Mali, defeated Mali Army officers stage a coup d'etat in the south leading to the total collapse of government in the country.

Tuareg rebels declare an independent state in the north called "Azawad", but al-Qaeda emerges from the Sahara to take over historic Timbuktu, and compete with the secular rebels for control of northern Mali.

http://www.aljazeera.com/programmes/orphans-of-the-sahara/2014/01/orphans-sahara-rebellion-20141810554727702.html

and

http://www.aljazeera.com/programmes/orphans-of-the-sahara/

Bolivia declares state of nat’l emergency over floods

http://www.presstv.ir/detail/2014/01/29/348240/national-emergency-declared-in-bolivia/

Tunisia passes progressive constitution

January 27, 2014 6:15AM ET
The constitution enshrining freedom of religion and women's rights took two years to finish

http://america.aljazeera.com/articles/2014/1/27/tunisia-passes-progressiveconstitution.html

Hawking's black hole 'blunder' shows how little we know about gravity

...Gravity is the most far-reaching force known to man. It's what holds you in your chair and reaches across billions of light years of space to hold clusters of galaxies together. It's everywhere. So, you would think that something so common and familiar would have been figured out by now. In fact, its workings are still a mystery, and that mystery is a wrench in the scientific gears - or rather, an obstacle for physicists trying to come up with a single theory to describe the universe.

http://www.cbc.ca/newsblogs/technology/quirks-quarks-blog/2014/01/hawkings-black-hole-blunder-shows-how-little-we-know-about-gravity.html

 The Dangers of Heavy Metals and Aluminum

The following are two important articles about Heavy metals and Aluminum and their effects on health and brain function.  Important points and vital information in the vaccine debate and for looking at your over-all health in our daily lives.

Many people have no idea of just how much contact we have daily with heavy metals and aluminum.  The effects on our health and well being have a huge impact on our lives.

http://iinformedparenting.blogspot.com/2014/02/the-dangers-of-heavy-metals-and-aluminum.html