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The Pronk Pops Show 1322, September 18, 2019, Story 1: Federal Reserve Open Market Committee (FOMC) Lowers The Federal Funds Target Rate by .25% with New Range of 1.75% to 2.00% Reflecting Slowing Moderate Rate of Growth of Real Gross Domestic Product (GDP) of 2.5% Below The Historical Average of Between 3.0% to 3.5% GDP Growth Rate — Trump Panics Wants Return To Irresponsible Near Zero Interest Rate Policy and Financial Repression of The Great Recession — Trump Just Another Big Government Bubble Blower Inflating Stock Market Prices — Videos — Story 2: Federal Reserve Injects Billions Into The Economy in Overnight Repo Operations — Videos — Story 3: The Ranting Former Trump National Security Adviser John Bolton — Neoconservative Interventionist War Monger — Videos — Story 4: President Trump Visits the Double Wall with Road In Between The U.S. Border Agents Wanted — A Game Changer — Need To Build 1500 Miles of New Wall To Stop The 30-60 Million Illegal Alien Invasion of United States Over Last 33 Years — Videos

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Story 1: Federal Reserve Open Market Committee (FOMC) Lowers The Federal Funds Target Rate by .25% with New Range of 1.75% to 2.00% Reflecting Slowing Moderate Rate of Growth of Real Gross Domestic Product (GDP) of 2.5% Below The Historical Average of Between 3.0% to 3.5% GDP Growth Rate — Trump Panics Wants Return To Irresponsible Near Zero Interest Rate Policy and Financial Repression of The Great Recession — Trump Just Another Big Government Bubble Blower Inflating Stock Market Prices  — Videos —

See the source image

See the source image

Fed Chairman Powell faces dilemma as Trump continues his public criticism

Powell Says Fed Rate Cut Is Insurance Against Ongoing Risks

WATCH LIVE: Fed Chairman Jerome Powell speaks after interest rate cut decision – 09/18/2019

It wouldn’t be surprising if the Fed cuts rates, policy expert says

Published on Aug 21, 2019

Fiat money may not survive this recession

Peter Schiff on recession warning: It’s going to be worse than 2008

What Happens When the Fed Lowers Interest Rates

Can Low Interest Rates Hold Off Recession? (w/ Richard Wolff)

Gold & Silver Prices Fall on FED Rate Cut Announcement

Trump on Fed: ‘Only problem we have is Jay Powell and the Fed’

The discount rate | Money, banking and central banks | Finance & Capital Markets | Khan Academy

A crack just emerged in the financial markets: The NY Fed spends $53 billion to rescue the overnight lending market

 

Current Federal Reserve Interest Rates and Why They Change

Why the Fed Lowered Its Benchmark Rate in September 2019

The interest rate targeted by the Federal Reserve, the federal funds rate, is currently 1.75% to 2%. That’s after the Fed cut it a quarter of a percentage point on Sept. 18, 2019.1 The federal funds rate is the benchmark interest rate banks charge each other for overnight loans. It generally reflects the health of the economy and has a big impact on other interest rates. The Sept. 18 cut was the second rate drop in 2019, after years of steady increases following the Great Recession.2

The Federal Reserve is the central bank of the United States and it is mandated by Congress to promote economic stability, mainly by raising or lowering the cost of borrowing.3 The Fed said it lowered interest rates because, although the U.S. economy is strong and unemployment is low, business investments and exports have “weakened” since the last meeting of the Federal Open Market Committee.4 The FOMC is the Fed’s rate-setting body, and it votes on interest rate changes every six weeks or so.

The FOMC looks at where it thinks the economy is headed and sets interest rates to help the economy reach or maintain full employment, moderate long-term interest rates, and an inflation rate of 2%.5

The fed funds rate is critical in determining the U.S. economic outlook. It is used to set short-term interest rates, including banks’ prime rate (the rate banks charge customers for loans), most adjustable-rate mortgages, and credit card rates.

 

Why the Fed Raises or Lowers Interest Rates 

The Fed uses interest rates as a lever to grow the economy or put the brakes on it. If the economy is slowing, the Fed can lower interest rates to make it cheaper for businesses to borrow money, invest, and create jobs. Lower interest rates also tend to make consumers more eager to borrow and spend, which helps spur the economy.

On the other hand, if the economy is growing too fast and inflation is heating up, the Fed may raise interest rates to curtail spending and borrowing.

In December 2008, the Fed cut the fed funds rate to 0.25%. That’s effectively nothing. It did so amid the worst financial crisis since the Great Depression, in an effort to light a spark under the economy. The rate stayed unchanged until 2015, and rose steadily through 2018 as the economy picked up steam.6 The 2019 cuts are a sign that growth is beginning to slow.

 

How the Fed Funds Rate Works

The FOMC targets a specific level for the fed funds rate, which determines the interest rates banks actually charge one another for overnight loans. Banks use these loans to help them meet cash reserve requirements: Banks that are short borrow from banks that have excess.

reserve requirement is the amount of cash a bank must keep overnight. It’s set by the Fed and is a percentage of the bank’s deposits. The current top reserve requirement is 10% for banks with more than $124.2 million on deposit.

Prior to the financial crisis, the Fed controlled the fed funds rate by buying and selling U.S. government securities on the open market. When the Fed buys a security, that increases the reserves of the bank associated with the sale, which makes the bank more likely to lend. To attract borrowers, the bank lowers interest rates, including the rate it charges other banks.

When the Fed sells a security, the opposite happens. Bank reserves fall, making the bank more likely to borrow, causing the fed funds rate to rise.7 These shifts in the fed funds rate ripple through the rest of the credit markets, influencing other short-term interest rates such as savings, bank loans, credit card interest rates, and adjustable-rate mortgages.

Actions the Fed took during the financial crisis and throughout the recession that followed had the effect of ballooning banks’ reserve balances, and as a result, banks didn’t need to borrow from one another to meet reserve requirements.8 The Federal Reserve could no longer rely on reserve balance manipulation to control interest rates. Because of that, the Fed has developed other tools to affect the rate.

 

How the Fed Now Sets the Fed Funds Rate

Today, the Fed sets a target range for the fed funds rate. It started back in October 2008, when the Fed began paying interest on reserves (IOR), but to a limited number of institutions. This was intended as the floor on the fed funds rate.9 After all, banks won’t lend to each other at a lower rate than what they’re getting from the Fed.

But eventually, the Fed realized the IOR wasn’t sufficient. It needed a sub-floor, so in 2013 it added another tool to help it control the target rate: the overnight reverse repurchase agreement facility (ON RRP, or “reverse repo”).10 This program is available to a broader range of financial institutions than IOR.11

With the ON RPP, the Fed agrees to sell a security and buy it back at a higher price, which is effectively the interest rate. This rate is set high enough to attract buyers, but below IOR. When banks need to borrow from one another, they do so within the range bounded by IOR and ON RPP. And when the Fed acts to raise or lower interest rates, it adjusts both IOR and ON RPP.

 

How Other Interest Rates Are Determined

The fed funds rate is one of the most significant leading economic indicators in the world. Its importance is psychological as well as financial, as many of the interest rates businesses and consumers pay are based on it, if only indirectly. For example, the prime lending rate is determined by individual banks themselves, who base their rates on the fed funds rate.12

Variable interest rates for credit cards and other consumer loans, for example, rely on the prime rate, which means they’re also affected by the fed funds rate.

However, not all loans rely on the prime lending rate. In fact, the interest rates for 30-year mortgages correlate with the yield on the 10-year Treasury note. That’s because investors who are interested in safe long-term returns on their investments see lots in common between the two—but not because one rate is determined by the other.13 Ultimately, supply and demand determine the rates for both.

Another important benchmark interest rate that is not set by the Fed is the London Interbank Offered Rate (LIBOR). It is the average interest rate major global banks charge each other to borrow. LIBOR is calculated daily, and is the basis for a host of commercial and consumer interest rates, from corporate bonds to adjustable-rate mortgages.14

Fed Cuts Rates By Quarter Point But Faces Growing Split

Central bankers divided over Wednesday’s decision and the outlook for further reductions.

Federal Reserve rate targetSource: Federal Reserve
%2009’10’11’12’13’14’15’16’17’18’190.000.250.500.751.001.251.501.752.002.252.502.75

WASHINGTON—The Federal Reserve voted to cut interest rates by a quarter-percentage point for the second time in as many months to cushion the economy against a global slowdown amplified by the U.S.-China trade conflict.

While the central bankers left the door open to additional cuts, they were split over Wednesday’s decision and the outlook for further reductions.

Seven of 10 officials voted in favor lowering the short-term benchmark to a range between 1.75% and 2%. As in July, two reserve bank presidents dissented from the decision in favor of holding rates steady. This time, Fed Chairman Jerome Powell faced a third dissent from a bank president who preferred a larger, half-point cut.

“We took this step to keep the economy strong,” said Mr. Powell in a news conference after the decision.

Fed Chairman Jerome Powell explaining the central bank’s monetary-policy decision at news conference in Washington. PHOTO: PATRICK SEMANSKY/ASSOCIATED PRESS

He also indicated rates could be cut further if the economy weakened further, even though he said officials still have a positive outlook for the U.S. economy.

[For up-to-the-minute of the Fed’s monetary policy meeting, please see Federal Reserve Interest-Rate Decision—Live Analysis]

U.S. stocks wobbled, then pared declines after the Fed’s decision. Treasury yields, which move inversely to prices, ticked higher though held their recent range.

The policy statement released after the meeting was little changed from July, when officials held the door open to future rate cuts. As the rate-setting committee “contemplates the future path” of its policy rate, “it will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion,” the statement said, repeating language from July.

The statement noted household spending had been rising at a strong pace while business investment and exports had weakened.

Projections released after Wednesday’s two-day meeting showed the extent of the split over the policy outlook, complicating the challenge facing Mr. Powell.

Seven of 17 officials penciled in one more rate cut this year. The other 10 were split evenly between those who thought the new level of rates, after Wednesday’s cut, would be appropriate and those who thought rates shouldn’t have to go any lower.

Lowered Expectations

The Fed’s forecasts of the federal-funds rate for the end of 2019 have changed over time. Circles below are sized according to the number of officials who set their projections to the corresponding rate for each release.

Projected midpoint for rate at end of 2019

Target range following

this quarter’s release

10 officials

5

Seven of 17 officials projected one more quarter-point cut this year

4.0%

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Sept. ’17

Dec.

March ’18

June

Sept.

Dec.

March ’19

June

Sept.

PROJECTION RELEASE DATE

Source: Federal Reserve

Those divides are even sharper in projections for next year. Roughly half of officials projected rates by December 2020 would sit one-quarter point below the new level, while another half thought it would be appropriate to reverse at least one of the two recent cuts.

Officials cited three reasons—weakening global growth, rising trade-policy uncertainty and muted inflation—for cutting rates at their July 30-31 meeting. The U.S.-China trade conflict worsened immediately after the July meeting, and the global industrial downturn shows no sign of bottoming out.

The Fed faces an unusual challenge setting policy given the volatile outlook for the global trading environment, that has chilled business investment. “There is a piece of this that we really can’t address,” said Mr. Powell. “It’s an unusual situation… It’s a challenging time, I admit it.”

Officials expected the U.S. economy to slow this year, but increased uncertainty means officials aren’t sure if the economy is going to cool a little bit or a lot.

U.S. economic data paint a mixed picture. Consumer spending has been solid, but manufacturing has weakened. Recent revisions to employment and profit growth show that the economy over the past year wasn’t as strong as previously thought.

 

Some Fed officials have warned that waiting for signs of consumer spending and hiring to slow more sharply could require the Fed to deliver more aggressive stimulus at a time when its policy rate is already historically low.

Hiring has slowed this year. The private sector added 129,000 jobs on average over the three months ended August, down from 236,000 for the three-month period ended December.

One challenge for the Fed in reading these numbers is that for years, officials have expected hiring to slow as the economic expansion matures. At the same time, wage growth hasn’t accelerated substantially this year, as would occur when the demand for workers outstrips supply.

Powell Signals Rate Cut at Senate Hearing

Powell Signals Rate Cut at Senate Hearing
Testifying before the Senate Banking Committee, Federal Reserve Chairman Jerome Powell again signaled that the central bank is ready to cut interest rates later this month. Photo: AP

Meantime, the Fed has come under growing pressure from President Trump to aggressively cut interest rates—to boost stock markets and weaken the U.S. dollar—after the White House’s trade talks with China hit an impasse this spring. Mr. Trump had called for the Fed to cut rates by a half-point in April, but he has since said the Fed should lower rates more aggressively.

Soon after the Fed announced its rate cut, Mr. Trump lashed out at Mr. Powell on Twitter. “Jay Powell and the Federal Reserve Fail Again,” he wrote, one of 30 such statements about Fed policy since the July meeting. “No ‘guts,’ no sense, no vision! A terrible communicator!”

Mr. Powell has said the Fed doesn’t make policy decisions based on demands from political leaders and instead focuses on its congressional mandate to boost employment while keeping inflation stable. The unemployment rate, at 3.7%, is near a half-century low, while inflation, excluding volatile food and energy categories, has been running around 1.6%, according to the Fed’s preferred gauge, below its 2% target.

Donald J. Trump

@realDonaldTrump

Jay Powell and the Federal Reserve Fail Again. No “guts,” no sense, no vision! A terrible communicator!

17.9K people are talking about this

Separately, the Fed announced steps designed to boost liquidity in short-term funding markets after the central bank was twice forced this week to inject cash into money markets to pull down interest rates.

The Fed’s benchmark rate rose to 2.3% on Tuesday, trading outside of its range of 2% to 2.25%, after technical factors and monetary and regulatory changes created shortages of funds for banks.

Earlier Wednesday, the New York Fed injected $75 billion in cash into money markets, following a $53 billion infusion on Tuesday.

At the two-day meeting, the Fed’s rate-setting committee lowered a separate interest rate paid to banks on deposits, known as reserves, held at the Fed, which could reduce banks’ demand for that cash and increase their lending in other money markets. The committee cut that rate and another borrowing rate by 0.3 percentage point, larger than the 0.25 percentage-point reduction in the fed-funds target.

Trump Says Fed Should Cut Rates to ‘Zero, or Less,’ Attacks Jerome Powell Again

Some economists warn president’s push might send up long-term Treasury yields, making it harder to achieve goal of locking in low rates

WASHINGTON—President Trump renewed his call for lower interest rates and his criticism of the Federal Reserve on Wednesday, by pressing for the central bank to cut short-term rates to “ZERO, or less,” negative rates that the U.S. avoided even after the 2008 financial crisis.

For weeks, Mr. Trump has pushed for lower rates to help cushion the economy against fears of a broader global slowdown. On Wednesday, he introduced a different argument for rate cuts by saying it would allow the U.S. to lock in lower interest rates for a longer period of time.

“We should then start to refinance our debt,” he wrote on Twitter, arguing it would reduce interest costs “while at the same time substantially lengthening the term.”

But some economists, including one of Mr. Trump’s former advisers, warned that his push for lower short-term interest rates might make it harder to achieve the stated goal of locking in lower rates, because it could send up long-term Treasury yields.

The tweets marked the latest escalation of Mr. Trump’s pressure on the Fed and attacks on Chairman Jerome Powell, whom the president picked for the post in 2017. Mr. Trump said the U.S. should always be paying the lowest rate and complained that the “naivete” of Mr. Powell and the Fed means that this was a “once in a lifetime opportunity that we are missing because of ‘Boneheads.’ ”

A Fed spokeswoman declined to comment on the tweets. Mr. Powell has previously defended the Fed’s tradition of independence from political pressure.

Donald J. Trump

@realDonaldTrump

The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term. We have the great currency, power, and balance sheet…..

Donald J. Trump

@realDonaldTrump

….The USA should always be paying the the lowest rate. No Inflation! It is only the naïveté of Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing. A once in a lifetime opportunity that we are missing because of “Boneheads.”

After cutting their benchmark interest rate in July by a quarter percentage point, Fed officials are gearing up to cut rates again, likely by another quarter point, at their Sept. 17-18 policy meeting.

Mr. Powell framed the July decision to lower the Fed’s benchmark short-term rate to a range between 2% and 2.25% as a “mid-cycle adjustment.” The global growth and trade outlook has deteriorated since then amid an escalation in Mr. Trump’s trade war with China.

SHARE YOUR THOUGHTS

How do you think another rate reduction might affect the U.S. economy? Join the conversation below.

Economists warn that pushing short-term interest rates to near zero could signal that Fed officials expect a much deeper economic downturn.

“That could have the unintended consequence of triggering a major drop in confidence in the economy that could precipitate a recession, which would have the opposite effect,” said Diane Swonk, chief economist at Grant Thornton.

Lowering rates all the way to zero now, when the economy is still on solid footing, could also leave the Fed without any ammunition if an actual recession hits, Ms. Swonk said.

Some economists were also skeptical that pushing interest rates to zero would actually lead to lower interest costs on government debt.

Mr. Trump has previously floated the idea of refinancing the U.S.’s nearly $17 trillion in publicly held debt, which has jumped in the wake of Republican tax cuts and bipartisan budget deals that boosted federal deficits.

“I would like to see the rates be low and pay amortization, pay off debt,” Mr. Trump said in an October 2018 interview with The Wall Street Journal, complaining that the Fed had made this difficult by raising rates several times in recent years.

Debt-servicing costs are one of the fastest growing drivers of federal spending: Interest payments have increased nearly 10% so far this fiscal year, totaling $497.2 billion through July, roughly $1.6 billion a day, according to the Treasury Department.

It isn’t exactly clear what Mr. Trump envisions. Sovereign debt is different from mortgage debt, and can’t be renegotiated to reduce monthly payments or pay debt off early. But the Treasury can replace maturing government securities with new, long-term debt at lower interest rates, which could bring down costs.

“The Treasury should start issuing debt in much longer terms,” said Stephen Moore, an economic adviser to Mr. Trump’s 2016 campaign who at one point was under consideration for a slot on the Fed board, in a Wall Street Journal op-ed last month. “This would lock in today’s low interest rates on the national debt for 10, 20, 30 years or perhaps even longer.”

Ernie Tedeschi, an economist at Evercore ISI, said such an idea makes sense, but it is something that the Treasury is already doing. The average length to maturity of publicly held federal debt has risen to 66 months, from 46 months at the height of the 2008 financial crisis.

The Treasury has also asked an advisory group to reconsider the potential benefits of issuing ultra-long bonds, as other countries have done.

Lowering the Fed’s benchmark federal-funds rate to zero wouldn’t automatically translate to lower interest rates on government debt, which is determined by bond markets, Mr. Tedeschi said. While short-term interest costs would likely fall, “it could be that the 10-year [Treasury note] goes up because markets are more confident in the Fed management of the economy,” he said, a shift that would lead to higher interest costs.

Paul Winfree, the director of the Heritage Foundation’s Roe Institute for Economic Policy Studies and a former budget adviser to Mr. Trump, said the president’s argument is “economically inaccurate.”

“Treasury has to offer interest rates that will attract buyers,” he said. “If all of a sudden we decide to roll over all of our debt, well, that will surely influence the interest rate on the debt. Like if all of a sudden every household in America decided to refinance.”

Mr. Trump said last month that the Fed should cut its benchmark interest rate by at least a full percentage point and resume its crisis-era program of buying bonds to lower long-term borrowing costs. Such moves would typically be considered only when the economy faces a substantial downturn.

Wednesday’s comments are the first time Mr. Trump has called for rates below zero. In response to a reporter’s question several weeks ago, Mr. Trump said he didn’t want negative rates.

Yields in some countries, including Germany, France and the Netherlands, have fallen below zero already. On Tuesday, JPMorgan Chase & Co. Chief Executive James Dimon said the bank has begun discussing what fees and charges it could introduce if interest rates go to zero or lower. Even during the last recession, the Fed didn’t employ negative rates.

Mr. Trump and White House officials have said they don’t believe the U.S. is headed toward a slowdown, but also have floated other ideas, such as tax cuts, to boost the economy.

A rate cut of the magnitude Mr. Trump is calling for hasn’t happened since the global financial crisis in late 2008.

In comments last week, Mr. Powell said the U.S. economy faced a favorable outlook despite significant risks from weaker global growth and trade uncertainty.

https://www.wsj.com/articles/trump-says-fed-should-reduce-rates-to-zero-or-less-11568201306

Story 2: Federal Reserve Injects Billion Into The Economy in Overnight Repo Operation — Videos

Fed accepts $75 billion of $80 billion in bids in repo operation

NY Fed concludes first repo in 11 years amid liquidity concerns

The Fed has cut rates, so what’s next for the markets?

Top strategist: ‘Biggest bubble ever’ just burst. Here’s what happens next

BITCOIN. And Here We Go! FED Prints $128 Billion To “Calm The Financial Markets”

 

A crack just emerged in the financial markets: The NY Fed spends $53 billion to rescue the overnight lending market

“It’s unprecedented, at least in the post-crisis era,” said Mark Cabana, rates strategist at Bank of America Merrill Lynch.
On Tuesday morning, the NY Fed launched what’s called an “overnight repo operation,” during which the central bank attempts to ease pressure in markets by purchasing Treasuries and other securities. The goal is to pump money into the system to keep borrowing costs from creeping above the Fed’s target range.
The first attempt by the NY Fed was canceled because of “technical difficulties.” Minutes later, the NY Fed successfully injected $53 billion into the system.
The episode demonstrates evidence of emerging strains in financial markets and raises concern that the Federal Reserve could be losing its grip on short-term rates.
“The funding markets are clearly stressed,” said Guy LeBas, managing director of fixed income strategy at Janney Capital Markets. “It’s going to require Fed action.”
The NY Fed announced plans late Tuesday to hold another repurchase agreement operation on Wednesday that would aim to repurchase up to an additional $75 billion.

Rates spike

The rate on overnight repurchase agreements hit 5% on Monday, according to Refinitiv data. That’s up from 2.29% late last week and well above the target range set in July by the Federal Reserve, which is 2% to 2.25%. The surge continued Tuesday, with the overnight rate hitting a high of 10% before the NY Fed stepped in.
Although it doesn’t get as much attention as the Dow or the 10-year Treasury rate, this overnight market plays a central role in modern finance. It allows banks to quickly and cheaply borrow money, for short periods of time, often to buy bonds like Treasuries. This market broke down during the 2008 financial crisis.
However, analysts drew a distinction between the current period of stress and what happened during the crisis. Back then, investors were deeply worried about the financial health of banks. Today, banks are hauling in record profits and balance sheets look sturdy.
It’s unclear what exactly is causing the stress in the overnight market, or how long it will last.
“No one knows why this is happening,” Jim Bianco CEO of Bianco Research, said on Twitter. “If it persists more than another day or two, it will be a problem.”

$1 trillion deficits and paying Uncle Sam

There are some theories.
Cabana, the Bank of America analyst, blamed the spike in overnight lending rates on the Fed badly underestimating the amount of cash needed to keep the financial system operating smoothly.
“The Fed just made a policy mistake,” Cabana said. “There is not enough cash in the banking system for the banks to meet all of their liquidity and regulatory needs. I’m not that worried, because the Fed will fix it.”
The catalyst for the stress, according to Cabana, was the fact that US companies withdrew vast sums of money from banks to make quarterly tax payments to the US Treasury Department. That forced banks to draw down their reserves at the Fed.
The rate spike may also be a symptom of the sharp increase in Treasury bonds being issued to fund the federal government. The federal deficit has spiked to $1 trillion this fiscal year because of the tax cuts and surge in government spending.
Banks typically buy Treasuries by borrowing in the overnight market. The jump in Treasury issuance caused a large increase in demand for short-term financing.
“The fundamental issue is there are just too many darn Treasuries out there,” Cabana said. “Both parties are to blame. The $1 trillion deficit will keep this an issue.”

The return of QE?

No matter the cause, more Fed action may be needed, including additional temporary NY Fed operations.
“They may have to do the same thing tomorrow morning,” said LeBas.
The Fed may also need to lower the interest it pays on excess bank reserves, or IOER. Bank of America Merrill Lynch predicted the Fed will cut this rate slightly on Wednesday.
“That’s like a Band-Aid,” Cabana said.
As a longer-term solution, Barclays and Bank of America expect the Fed to begin expanding its balance sheet again by purchasing Treasuries. The Fed’s bond buying program, known as quantitative easing, or QE, was launched during the financial crisis to keep borrowing costs extremely low. As the economy healed, the Fed reversed course and started to shrink its balance sheet.
Cabana doesn’t think the Fed will call this QE, though he said it will work the same way. The central bank will grow its balance sheet by purchasing Treasuries.
“The Fed won’t admit this,” Cabana said, “but it looks and smells an awful lot like the monetary authority is financing the fiscal authority.”

 

Story 3: The Ranting Former Trump National Security Adviser John Bolton — Neoconservative Interventionist War Monger — Videos

John Bolton and Donald Trump
President Donald Trump and and his former national security adviser, John Bolton. | Alex Wong/Getty Images

EXCLUSIVE

Bolton unloads on Trump’s foreign policy behind closed doors

The recently fired national security adviser made little secret of his disagreements with the president.

John Bolton, President Donald Trump’s fired national security adviser, harshly criticized Trump’s foreign policy on Wednesday at a private lunch, saying inviting the Taliban to Camp David sent a “terrible signal” and that it was “disrespectful” to the victims of 9/11 because the Taliban had harbored al Qaeda.

Bolton also said that any negotiations with North Korea and Iran were “doomed to failure,” according to two attendees.

All the North Koreans and Iranians want to do is negotiate for relief from sanctions to support their economies, said Bolton, who was speaking before guests invited by the Gatestone Institute, a conservative think tank.

“He ripped Trump, without using his name, several times,” said one attendee. Bolton didn’t immediately respond to a request for comment.

Bolton also said more than once that Trump’s failure to respond to the Iranian attack on an American drone earlier this summer set the stage for the Islamic Republic’s aggression in recent months.

At one point, Bolton, a previous chairman of Gatestone, suggested that had the U.S. retaliated for the drone shootdown, Iran might not have damaged the Saudi oil fields.

Bolton called the alleged attack on Saudi Arabia, which U.S. and Saudi officials have blamed on Iran, “an act of war” by anyone’s definition.

The former national security adviser’s comments come on the same day Trump named his successor, hostage negotiator Robert C. O’Brien.

Speaking on an airport tarmac in Los Angeles, Trump introduced his new top foreign policy aide as “highly respected” and hailed their “good chemistry.” The remarks indicated that in O’Brien, Trump sees a more compatible adviser than Bolton, whose disagreements with the president and clashes with other senior officials often spilled into public view.

After the attack in June, Trump was poised to launch a military response against the Iranians — strongly urged by Bolton — but pulled back after Fox News host Tucker Carlson and others warned him that it was a bad idea.

During Wednesday’s luncheon, Bolton said the planned response had gone through the full process and everybody in the White House had agreed on the retaliatory strike.

But “a high authority, at the very last minute,” without telling anyone, decided not to do it, Bolton complained.

Bolton spoke to around 60 Gatestone donors at the exclusive restaurant Le Bernardin in Manhattan. Attendees included noted lawyer Alan Dershowitz and his wife Carolyn, former attorney general Michael Mukasey, Newsmax CEO Chris Ruddy, First Amendment lawyer Floyd Abrams, former Fox News host John Stossel, former New York Lt. Gov. Betsy McCaughey and New York billionaire John Catsimadis.

Billionaire Rebekah Mercer introduced Bolton as “the best national security adviser our country could have hoped for,” garnering her very loud applause. Bolton had been scheduled to speak to the group before Trump fired him.

In his talk and the Q&A session that followed, Bolton took attendees through a number of global issues.

On Afghanistan, another frequent subject of disagreement with the president, Bolton said that the U.S. should not have pursued a peace deal with the Taliban.

Instead, he said, the U.S. should keep 8,600 troops in Afghanistan with intelligence support and other support elements. He called the proposed deal that was on the table similar to the agreement the Taliban offered the U.S. after 9/11, but said “it doesn’t make any sense.”

More than once, Bolton said, Israel would “sooner or later” see a new government, even though he personally liked Israeli Prime Minister Benjamin Netanyahu.

On Venezuela, a focus of his short White House tenure, Bolton claimed there were 20,000 to 25,000 Cuban troops in the South American country. The day they left, he predicted, the Nicholas Maduro regime would fall by midnight.

He also said that if British Labour leader Jeremy Corbyn were to become prime minister, it would be “fatal to the special relationship” between the U.S. and Britain.

During the Q&A session, Dershowitz told the crowd that it was “a national disaster” that Bolton had been booted from the White House, to what the attendee described as “thunderous applause.”

https://www.politico.com/story/2019/09/18/bolton-trump-foreign-policy-1501932

Story 4: President Trump Visits the Double Wall with Road In Between The U.S. Border Agents Wanted — A Game Changer — Need To Build 1500 Miles of New Wall To Stop The 30-60 Million Illegal Alien Invasion of United States Over Last 33 Years — Videos

Live: Trump tours border wall site in San Diego, California

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The Pronk Pops Show 1318, September 12, 2019, Story 1: President Trump’s Starting To Make Progress In Stopping and Rolling Back The Illegal Invasion of United States —  Major Issue of 2020 Election — Videos — Story 2: The Indictments and Prosecutions of The Clinton Obama Democratic Criminal Conspiracy Plotters Breaking Just in Time For the 2020 Election — The Origins of Clinton Obama Democratic Criminal Conspiracy aka Obamagate or Spygate — Biggest Political Scandal and Abuse of Power in United States History — President Trump Is Right: ‘We can never let this happen to another President again’ — Videos — Story 3: Sidney Powell’s Motion in Michael Flynn Case — Missing Internal DOJ Memo That Cleared Flynn! — Videos

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Story 1: President Trump’s Starting To Make Progress In Stopping and Rolling Back The Illegal Invasion of United States —  Major Issue of 2020 Election — Videos —

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Trump touts border wall progress, optimistic after recent court victories

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Trump’s immigration crackdown starts to gain traction

Sebastian Smith,
AFP

 With a little help from the Supreme Court and Mexico, US President Donald Trump’s fitful crackdown on immigration is finally gaining traction.

Trump has spent his entire presidency promising to stop illegal immigration, shut out asylum seekers and wall off the Mexican border.

The far-reaching policies sparked an avalanche of court challenges, complaints from human rights organizations and derision from opposition Democrats ahead of next year’s elections.

Undeterred, Trump has hammered away, making construction of a US-Mexican border wall one of his presidency’s centerpieces — and a key part of his 2020 reelection platform.

And this week he celebrated a string of victories.

The latest boost came Wednesday when the Supreme Court said he could enact severe restrictions on asylum seekers.

The ruling requires would-be refugees to ask for asylum in the first country they visit and only then — if they are rejected — can they attempt to apply in the United States.

The ruling — which has temporary effect while challenges play out in lower courts — shuts out large numbers of people fleeing violence and poverty in Central America. They will now have to apply for asylum in Mexico, rather than head directly to the United States.

Trump’s opponents, as well as dissenting Supreme Court Justice Sonia Sotomayor, say the change upends decades of tradition in which the US, itself founded by waves of often poor immigrants, has welcomed refugees.

But Trump, who argues that economic migrants abuse the system with fraudulent asylum claims, went on Twitter to herald the “BIG United States Supreme Court WIN for the Border on Asylum!”

“The Southern Border is becoming very strong despite the obstruction by Democrats,” he tweeted.

– Mexico comes on board –

That’s far from all.

In July, the Supreme Court backed Trump’s move to divert billions of dollars in Pentagon funds to pay for extending or rebuilding stretches of wall on the Mexican border. This lets him circumvent fierce resistance to funding in a divided Congress.

The Pentagon also said this Tuesday that the deployment of 5,500 troops on the border — something that was initially highly controversial — was being extended for the coming year.

While Trump exaggerates the amount of wall-building activity there’s no question that momentum is gradually shifting his way.

“The Wall is going up very fast despite total Obstruction by Democrats in Congress, and elsewhere!” he tweeted Wednesday.

Perhaps the most significant shift has happened on the other side of the long, rugged frontier, where the Mexican government has set aside previous hostility to cooperate with Trump.

The change in mood follows threats by Trump to impose trade tariffs on Mexico, even though the two countries are in a free trade agreement together with Canada.

Not that Mexico is entirely happy. Foreign Minister Marcelo Ebrard called the new US asylum restrictions, which could mean a torrent of new cases for his country, “unprecedented.”

“Or course we disagree,” he said.

But Mexico appears to have accepted it has no choice but to play by Trump’s rules.

On Monday, Mark Morgan, head of the US border patrol service, welcomed “unprecedented support” from Mexico, which he said has deployed 10,000 troops on its own southern border with Central America and 15,000 on the US border.

Proof that the joint crackdown is having an effect is in the numbers, US officials say.

August detentions of undocumented migrants numbered 64,000, down from 82,000 the previous month and 144,000 in May, Morgan said. Mexico, he said, has apprehended 134,000 people so far this year, compared to 83,000 in all of 2018.

Democrats use the immigration issue to paint Trump as heartless, even racist. But the president feels he’s on the right track.

On Monday, as streams of Bahamians tried to exit islands ravaged by Hurricane Dorian, Trump made clear the United States would eye this latest group of asylum seekers skeptically.

“I don’t want to allow people that weren’t supposed to be in the Bahamas to come into the United States, including some very bad people and some very bad gang members and some very, very bad drug dealers,” he said.

The language echoed his long-term characterization of Central American migrants as potential rapists and gang members.

https://news.yahoo.com/trumps-immigration-crackdown-starts-gain-traction-171804088.html

Popular Refugee Resettlement Programs Closing Under Trump Administration

Story 2: The Indictments and Prosecutions of The Clinton Obama Democratic Criminal Conspiracy Plotters Breaking Just in Time For the 2020 Election — The Origins of Clinton Obama Democratic Criminal Conspiracy aka Obamagate or Spygate — Biggest Political Scandal and Abuse of Power in United States History — President Trump Is Right: ‘We can never let this happen to another President again’ — Videos

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Justice Department inspector general wrapping up probe into FISA abuse allegations

Sen. Kennedy: Let’s get the FISA report to the American people

Rep. Jim Jordan on FISA Abuse Report and Dems’ Impeachment Inquiry

McCarthy promises accountability as Barr reviews IG’s FISA report: ‘The closest we’ve ever seen to a

Sean Hannity 9/12/19 | Sean Hannity Fox News September 12, 2019

Lou Dobbs 9/12/19 | Breaking Fox News Septem­b­e­r 12, 2019

DOJ watchdog submits draft report on alleged FISA abuses to AG Barr

Graham rips ‘garbage’ Trump dossier ahead of FISA abuse report

Joe DiGenova and Victoria Toensing: It’s ObamaGate, and it’s the biggest scandal in American history

Obamagate: The biggest political scandal in our history. Sara Carter and John Solomon

Hannity: Clintons colluded with the Russians

Russian Spy Revelation Raises Questions on CIA Information

Hannity: Fusion GPS was hired to dig up Russian dirt on Trump

Judge Jeanine on Andrew McCabe: American people want justice

Fitton: Rosenstein crafted ‘non-denial denial’ to wiretap report

Deputy AG Rod Rosenstein submits resignation to Trump

Hannity: Crooked Hillary Clinton’s web of corruption

Hannity: Steele dossier was full of lies, misinformation, propaganda

New FBI text messages draw a possible connection to Obama

•Published on Feb 7, 2018

Podesta, Wasserman Schultz deny knowledge of dossier funding

WAPO: How Dossier Writer Chris Steele Sparked Russia Probe | MSNBC

Mueller’s team met with Russia dossier author Christopher Steele

Does the dossier bombshell spell trouble for the Democrats?

Trump dossier is turning into a big scandal for the establishment: Steve Hilton

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Who is Christopher Steele?

Can the public trust DOJ, FBI after the release of the FISA documents?

DOJ, FBI officials committed criminal misconduct: Chris Farrell

Fitton on officials blocking Trump FISA declassification

Trump declassifies FISA documents and Russia probe texts

DOJ inspector general completes investigation into alleged FISA abuse

New evidence shows why Steele, the Ohrs and TSA workers never should have become DOJ sources

One of the inevitable outcomes of the Russia case will be that the Department of Justice (DOJ) almost certainly will need internal reforms.

The first reform is the most obvious, given the unraveling of the Russia collusion narrative: a new set of rules governing when the FBI can investigate or spy on a First Amendment-protected political campaign during an election.

The FBI never should have been allowed to sustain a counterintelligence investigation into Donald Trump’s campaign based on hearsay from Australian diplomat Alexander Downer, who helped to arrange a $25 million Australian government donation to the Clinton Foundation, and on a “minimally” verified dossier written by British spy Christopher Steele, who was working on the Hillary Clinton opposition-research team.

The second reform may be less visible but becomes painfully obvious, thanks to a series of internal DOJ investigative memos released this month that expose glaring issues with the handling, vetting and weighting of “confidential human sources.” That’s a fancy term for people — sometimes called “snitches” or informants, in street vernacular — who secretly provide evidence to law enforcement.

Some examples of the DOJ’s problems with informers fall outside the Russia case but mirror the same issues unmasked in the now-debunked probe of Trump.

Take, for example, the DOJ inspector general’s finding this month that the Drug Enforcement Administration (DEA) was paying other government officials at the Homeland Security Department’s Transportation Security Administration (TSA) to work as informants.

The IG spared few words in decrying the idiocy of allowing government security officers collecting a federal salary to double-dip into taxpayers’ money by receiving informant pay to report criminal activity they were required by their jobs to disclose.

Two agents and one supervisor “violated the DEA Confidential Source policy” by paying three TSA workers as informants, the report concluded. And one agent wrongly served as handler for a TSA informant with whom he was involved in a “personal relationship,” investigators found, exposing a problem dating to 2013.

“By establishing the TSA employees as paid Limited Use Confidential Sources, the DEA agreed to pay for information that the TSA employees were already obligated to provide to law enforcement,” the IG concluded.

In other words, there should be a bright line: Government agents should stick to their jobs and leave the informing to private citizens.

That line similarly was breached in the minds of many when Bruce Ohr, then the DOJ’s assistant deputy attorney general, began collecting anti-Trump information on July 30, 2016, from former MI6 agent Steele and pushing it on the top levels of the DOJ and the FBI.

At the time, Ohr knew his wife, Nellie, and Steele worked for the Fusion GPS research firm on the same project to dig up Russia dirt on Trump, to help the Clinton campaign and the Democratic National Committee (DNC) win the 2016 election. Furthermore, Ohr told the FBI he knew Steele was a foreigner “desperate” to stop a Trump presidency, FBI memos show.

With his seniority inside DOJ, Ohr quickly got Steele’s information to the FBI’s deputy director, Andrew McCabe, and three top DOJ supervisors, despite the red flags.

Before long, Steele was working as a confidential informant for the bureau, and his dossier was used to secure a surveillance warrant targeting the Trump campaign weeks before Election Day.

When Steele got fired Nov. 1, 2016, by the FBI for leaking to the media, Ohr became a conduit for the bureau to keep getting information from Steele for months. Ohr met at least 12 times in late 2016 and 2017 with FBI agentsto provide new intel from the British spy. In other words, Ohr transitioned from being a DOJ supervisor to a backdoor source for the FBI to receive information from a terminated source.

And he didn’t stop there.

Records released this week, thanks to litigation by the conservative group Judicial Watch, show the senior DOJ official took at least two research files from his wife and her Fusion GPS work and provided them to FBI agents investigating Trump. One alleged that unverified ties existed between the Trump organization and Russian mobsters; the other provided a timeline alleging wrongdoing by former Trump campaign manager Paul Manafort.

Nellie Ohr testified to Congress that some of her anti-Trump information came from foreign officials in Ukraine, including a parliamentary member highly critical of Manafort.

Examination of the Nellie Ohr documents given to the FBI shows some of her source material also came from former Ukrainian presidential candidate Yulia Tymoshenko and a lawsuit she filed against Manafort.

Why is that significant? Tymoshenko and Hillary Clinton had a simpatico relationship after the former secretary of State went out of her way in January 2013 to advocate for Tymoshenko’s release from prison on corruption charges.

So, Bruce Ohr became a conduit of information not only for intelligence from Clinton’s British opposition-researcher but also from his wife’s curation of evidence from a Clinton foreign ally and Manafort enemy inside Ukraine. Talk about foreign influence in a U.S. election!

To Ohr’s credit, he disclosed his potential conflict of interest involving his wife to DOJ officials. To DOJ’s discredit, he was allowed to act as a source for both his wife and Steele anyway.

Ohr also didn’t get compensated as a paid informant, like the TSA workers. But documents show a curious thing happened during the time he began peddling the anti-Trump intelligence from his wife and Steele: His annual performance bonus doubled from about $14,000 in November 2015 to $28,000 in November 2016.

The blurred line between government official and informer/source didn’t stop with Ohr. Former FBI General Counsel James Baker also admitted he took dirt on Trump from DNC lawyer Michael Sussmann in summer 2016 and gave it to the agents investigating the Trump campaign.

The ultimate consequence — some might argue folly — of all these blurred lines is most easily exposed in an often overlooked document from the Russia probe.

I’ve written that the FBI kept a spreadsheet showing almost all of what Steele provided agents and Ohr on Russia-Trump dirt turned out to be unverified, disproven or nothing more than internet rumors. But when the FBI closed its paperwork on Steele in 2018, a professional intelligence analyst concluded in his human source validation report that the bureau assessed it had only “medium confidence” in Steele and that his intelligence could only be “minimally” verified.

In other words, his intelligence wasn’t very good. And yet, America spent nearly three years in turmoil only to learn that Steele’s Trump-Russia allegations — paid by Clinton and propagated by Ohr — were not true.

The tales of Bruce and Nellie Ohr, Christopher Steele, Yulia Tymoshenko, and those DEA and TSA agents raise a stark warning: The lines between government officials and informants, unverified political dirt and real intelligence, personal interest and law enforcement, became too blurred for the Justice Department’s own good.

That’s a problem sorely in need of fixing.

John Solomon is an award-winning investigative journalist whose work over the years has exposed U.S. and FBI intelligence failures before the Sept. 11 attacks, federal scientists’ misuse of foster children and veterans in drug experiments, and numerous cases of political corruption. He serves as an investigative columnist and executive vice president for video at The Hill. Follow him on Twitter @jsolomonReports.

https://thehill.com/opinion/white-house/457628-new-evidence-shows-why-steele-the-ohrs-and-tsa-workers-never-should-have

 

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The Pronk Pops Show 1317, September 11, 2019, Story 1: Supreme Court in 7-2 Decision Sides With President Trump Policy Preventing Most Central American Illegal Aliens from Seeking Asylum in United States — Yes We Can Seal The U.S. Border — Betrayal of American Workers By Democrat Party — Videos — Story 2: Supreme Court Chief Justice Roberts Sides With Liberal Justices Not American People To Bar 2020 Census Question on Citizenship — Videos — Story 3 : President Trump Temporarily Delays For Two Weeks New Tariffs on $250 Billion of Chinese Goods from 25% to 30% — Videos — Story 4: Remembering The People Who Died on 911 — Videos

Posted on September 13, 2019. Filed under: 2020 President Candidates, 2020 Republican Candidates, American History, Applications, Banking System, Blogroll, Bombs, Breaking News, Budgetary Policy, Business, Cartoons, China, Computers, Congress, Constitutional Law, Corruption, Countries, Culture, Disasters, Donald J. Trump, Donald J. Trump, Donald J. Trump, Donald Trump, Economics, Education, Empires, Employment, European History, Fifth Amendment, First Amendment, Fiscal Policy, Foreign Policy, Fourth Amendment, Free Trade, Freedom of Speech, Government, Government Dependency, Government Spending, Hardware, Health, History, House of Representatives, Human, Human Behavior, Illegal Immigration, Immigration, Investments, Language, Law, Legal Immigration, Life, Lying, Media, Mexico, Military Spending, National Interest, News, People, Philosophy, Photos, Politics, Public Relations, Radio, Raymond Thomas Pronk, Regulation, Rule of Law, Second Amendment, Security, Senate, Servers, Social Networking, Software, South America, Tax Policy, Taxation, Taxes, Technology, Terror, Terrorism, Unemployment, United States Constitution, United States Supreme Court, Videos, War, Wealth, Weapons of Mass Destruction, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

 

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Story 1: Supreme Court in 7-2 Decision Sides With President Trump Policy Preventing Most Central American Illegal Aliens from Seeking Asylum in United States — Videos

Supreme Court Sides With Trump Over Immigration

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Supreme Court allows broad enforcement of Trump asylum rule

today

FILE – In this July 16, 2019, file photo, The Supreme Court is seen in Washington.
 The Supreme Court is allowing nationwide enforcement of a new Trump administration rule that prevents most Central American migrants from seeking asylum in the United States.

The justices’ order late Wednesday temporarily undoes a lower court ruling that had blocked the new asylum policy in some states along the southern border. The policy is meant to deny asylum to anyone who passes through another country on the way to the U.S. without seeking protection there.

Most people crossing the southern border are Central Americans fleeing violence and poverty. They are largely ineligible under the new rule, as are asylum seekers from Africa, Asia and South America who arrive regularly at the southern border.

“BIG United States Supreme Court WIN for the Border on Asylum!” President Donald Trump tweeted.

Justices Ruth Bader Ginsburg and Sonia Sotomayor dissented from the high-court’s order.

“Once again, the Executive Branch has issued a rule that seeks to upend longstanding practices regarding refugees who seek shelter from persecution,” Sotomayor wrote.

The legal challenge to the new policy has a brief but somewhat convoluted history. U.S. District Judge Jon Tigar in San Francisco blocked the new policy from taking effect in late July. A three-judge panel of the 9th U.S. Circuit Court of Appeals narrowed Tigar’s order so that it applied only in Arizona and California, states that are within the 9th Circuit.

That left the administration free to enforce the policy on asylum seekers arriving in New Mexico and Texas. Tigar issued a new order on Monday that reimposed a nationwide hold on asylum policy. The 9th Circuit again narrowed his order on Tuesday.

The high court action allows the Republican administration to impose the new policy everywhere while the court case against it continues.

It’s unclear how quickly the policy will be rolled out and how exactly it fits in with the other efforts by the administration to restrict border crossings and tighten asylum rules.

For example, thousands of people are waiting on lists at border crossings in Mexico to claim asylum in the U.S. And acting U.S. Customs and Border Protection Commissioner Mark Morgan said Thursday that 45,000 people have been turned back to Mexico to wait out their asylum claims.

Asylum seekers must pass an initial screening called a “credible fear” interview, a hurdle that a vast majority clear. Under the new policy, they would fail the test unless they sought asylum in at least one country they traveled through and were denied. They would be placed in fast-track deportation proceedings and flown to their home countries at U.S. expense.

The American Civil Liberties Union lawyer who is representing immigrant advocacy groups in the case, Lee Gelernt, said: “This is just a temporary step, and we’re hopeful we’ll prevail at the end of the day. The lives of thousands of families are at stake.”

Morgan said Trump and his administration are “doing everything that they can” to address what he described as the crisis on the U.S. border with Mexico.

Migrants with valid claims “should be seeking help and asylum from the first country they come in contact with,” Morgan said Thursday on Fox News Channel’s “Fox and Friends.” ″They shouldn’t be paying the cartels thousands of dollars and risking their lives to take a 1,000-mile journey across several countries to get help. We want them to get help and seek asylum in the first country they get to.”

Justice Department spokesperson Alexei Woltornist said the agency was “pleased that the Supreme Court intervened in this case,” adding, “This action will assist the Administration in its objectives to bring order to the crisis at the southern border, close loopholes in our immigration system, and discourage frivolous claims.”

https://apnews.com/a817cf3affb04f3d8ad3c4940366a5fe

Mexico pushes back after top U.S. court favors Trump on shunning migrants

by Reuters
Thursday, 12 September 2019 21:28 GMT

By Lizbeth Diaz and Stefanie Eschenbacher

MEXICO CITY, Sept 12 (Reuters) – The Mexican government protested and Central American migrants feared deportation back to their violent homelands on Thursday after the U.S. Supreme Court allowed President Donald Trump to slam the door on asylum-seekers at the U.S.-Mexican border.

The court on Wednesday found that Trump’s restrictive asylum rule could go into effect nationwide while a lawsuit challenging its underlying legality proceeds, handing the president a victory as he brandishes his anti-immigration credentials for the November 2020 presidential election.

The rule requires immigrants who want asylum to first seek safe haven in a third country through which they travel on the way to the United States, enabling the United States to combat a record surge in Central American asylum-seekers.

Trump’s immigration crackdown has animated his base of supporters while immigrant advocates in the United States fear the court decision will endanger the lives of migrants, many of them fleeing poverty, street gangs and domestic violence in Honduras, Guatemala and El Salvador.

With the threat of automatic rejection hanging over the most recent arrivals, thousands of migrants are cramped into shelters or sleeping in the streets of Mexican border cities in places such as the state of Tamaulipas, where the U.S. State Department has placed a “do not travel” advisory due to violent crime similar to its warnings against visiting war-torn Sudan or Syria.

One asylum-seeker from El Salvador who staying in a Tijuana shelter while awaiting her immigration hearing in San Diego said she could only hope to God she would not be sent back.

“I’m very scared, I hope this won’t affect me. I cannot return to my country, they tried to rape me there twice because I am a lesbian and the last time I ended up in a hospital in intensive care,” said Veronica Martinez, 23. “I trust in God that the court’s decision does not affect me.”

The Mexican government also pushed back against the U.S. high court’s action, one that could create a new headache for Mexico.

“This is the ruling by the court, it’s a U.S. issue, and obviously we don’t agree with it, we have a different policy,” Foreign Minister Marcelo Ebrard told a news conference.

TENSE RELATIONS

The court’s decision comes at a delicate time for Mexican-U.S. relations. Under Trump’s threat of imposing tariffs, Mexico has agreed to house many of the surging number of Central American asylum-seekers south of the border pending their U.S. hearings.

That gesture has led to a sharp decline in U.S. apprehensions and rejections of migrants at the border, winning Mexico praise from Trump following a White House meeting on Tuesday.

But Mexico has resisted U.S. pressure to sign a formal “safe third country” agreement that would commit it to hearing the asylum cases of migrants from Central American and elsewhere, a move that would take even more pressure off the U.S. border.

The downside for Mexico is that the buildup of migrants at the northern border is putting stress on schools, health clinics and housing.

“We have seen outbreaks of acts of xenophobia in Mexico that did not exist before, mainly in the north of the country,” said Israel Ibarra, an immigration expert with the Continente Movil consultancy in Tijuana.

Francisco Gallardo, director of the Casa de Migrantes shelter in Reynosa, said migrants are sleeping in tents beside a bridge linking the two countries and are sure to grow more discouraged by the Supreme Court decision.

“We’ll see what measures can be taken because there are about 500 people next to the bridge,” Gallardo said.

Under the so-called Migrant Protection Protocols, the U.S. government built temporary, soft-sided courthouses near the border ports of entry in Laredo and Brownsville, Texas, and started hearing cases this week.

In Harlingen, Texas, Judge Delia Gonzalez took the bench Thursday, linked by video conference to a courtroom 30 miles (50 km) away in Brownsville.

She heard the cases of two Salvadorans who crossed from Mexico into south Texas in August, were arrested by U.S. officers, and returned to the Mexican border town of Matamoros.

A Salvadoran woman said she had received cruel threats from gangs, and Gonzalez asked if she feared returning.

“Yes, a lot,” the woman said.

After brief hearings, she and a Salvadoran man were given court dates to appear again in October. (Reporting by Stefanie Eschenbacher, Lizbeth Diaz, Adriana Barrera and Delphine Schrank in Mexico City and Mitchell Ferman in Harlingen, Texas; Writing by Daniel Trotta; Editing by Howard Goller and Alistair Bell)

Story 2: Supreme Court Chief Justice Roberts Sides With Liberal Justices Not American People To Bar 2020 Census Question on Citizenship — Videos —

See the source imageSee the source imageSee the source image

See the source imageSee the source image

John Roberts Reportedly Switched Vote To Kill Census Citizenship Question – Breaking News

President Trump wants to delay the 2020 census

U.S. Supreme Court Rules on Census Question and Partisan Gerrymandering

Supreme Court Backs Partisan Voting Maps, Puts Census Citizenship Question on Hold

Exclusive: How John Roberts killed the census citizenship question

Story 3 : President Trump Temporarily Delays For Two Weeks New Tariffs on $250 Billion of Chinese Goods from 25% to 30% — Videos —

Trump Delays New Tariffs on Chinese Goods Until Oct. 15

Trump delays tariffs on $250 bln of Chinese imports until Oct. 15

Donald Trump delays enforcing tariffs on $250billion worth of goods from China until October 15 as a sign of ‘good will’

  • President Trump will delay an upcoming increase in tariffs on China
  • The tariffs on $250billion worth of goods was set to go in affect October 1
  • But Trump tweeted Wednesday that he will push it back to October 15 as a sign of ‘good will’ and at the request of Beijing
  • He said it is due to the fact that the  People’s Republic of China will be celebrating their 70th Anniversary

President Trump will delay an upcoming increase in tariffs on $250billion worth of goods from China as a ‘gesture of good will’.

Trump tweeted Wednesday that he would push back tariffs set to go into effect on October 1, by two weeks to October 15.

He said he is doing so at the request of Chinese Vice-Premier Liu He because the People’s Republic of China will be celebrating its 70th anniversary on October 1.

‘At the request of the Vice Premier of China, Liu He, and due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary…on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th.’

President Trump will delay an upcoming increase in tariffs on $250billion worth of goods from China at the request of Beijing

President Trump will delay an upcoming increase in tariffs on $250billion worth of goods from China at the request of Beijing

Trump tweeted Wednesday that he will push it back to October 15 as a sign of 'good will' and at the request of Beijing

 

Trump tweeted Wednesday that he will push it back to October 15 as a sign of ‘good will’ and at the request of Beijing

Last month Vice Premier Liu He said he was willing to resolve its trade dispute with the United States through ‘calm’ negotiations and resolutely opposes the escalation of the conflict.

President Trump announced an additional duty on some $550billion of targeted Chinese goods last month, hours after China unveiled retaliatory tariffs on $75billion worth of US goods.

 However, Trump did back off on his threat to order U.S. companies out of China.

Vice Premier Liu He said last month that China is willing to resolve its trade dispute with the United States through ‘calm’ negotiations and opposes escalating the conflict

‘We are willing to resolve the issue through consultations and cooperation in a calm attitude and resolutely oppose the escalation of the trade war,’ Liu, who is President Xi Jinping’s top economic adviser, said, according to a government transcript.

‘We believe that the escalation of the trade war is not beneficial for China, the United States, nor to the interests of the people of the world,’ he added.

U.S. companies are especially welcome in China, and will be treated well, Liu said.

‘We welcome enterprises from all over the world, including the United States, to invest and operate in China,’ he added.

‘We will continue to create a good investment environment, protect intellectual property rights, promote the development of smart intelligent industries with our market open, resolutely oppose technological blockades and protectionism, and strive to protect the completeness of the supply chain.’

https://www.dailymail.co.uk/news/article-7454439/President-Trump-delays-increase-China-tariffs-October-15.html

 

Story 4: Remembering The People Who Died on 911 — Videos

President Trump honors 9/11 victims and heroes at Pentagon

President Trump, First Lady participate in 9/11 Pentagon Observance Ceremony

Watch: Trump, Pence participate in 9/11 commemoration ceremonies

I watched the second plane strike the World Trade Center says Donald Trump as he and Melania observe 9/11 at the White House and Pentagon while the nation’s heartbeat pauses to remember terror attacks

  • The first couple held hands and bowed their heads for a moment of silence on the South Lawn of the White House
  • The president motorcaded to the Pentagon and laid a wreath before observing another silent moment while an Army officer read the names of the fallen
  • Then he spoke, recalling what he said was a moment on Sept. 11, 2001 when he witnessed the second of two airliners flying into the World Trade Center 
  • Trump has made similar claims before, saying he watched doomed Americans leap to their deaths; he would have seen that from a distance of more than 4 miles 
  • Remembrances dominated Wednesday morning, 18 years after terrorists hijacked planes and flew them into American landmarks
  • Both World Trade Center twin towers fell, the west wall of the Pentagon was partially caved in, and martyrs forced a hijacked jet to crash in rural Pennsylvania rather than letting it hit the White House
  • Nearly 3,000 casualties are marked each year with a lengthy reading of names in New York City

Donald Trump recalled Wednesday during a speech at the Pentagon that he personally saw the second plane hit the World Trade Center during the 9/11 terror attacks that claimed more than 2,600 lives in New York City on September 11, 2001.

He said he had been watching a financial news channel in his penthouse apartment at Trump Tower when news of the first crash broke, and then watched from a window as the second plane epxloded in a fireball as terrorists flew it into the South Tower.

‘I was sitting at home watching a major business television show early that morning. Jack Welch, the legendary head of General Electric, was about to be interviewed when all of a sudden they cut away,’ he said.

‘Nobody really knew what happened. There was great confusion,’ Trump added. ‘I was looking out of a window from a building in midtown Manhattan, directly at the World Trade Center, when I saw a second plane at a tremendous speed go into the second tower. It was then that I realized the world was going to change.’

‘I saw the second plane hit the building and I said, “Wow that’s unbelievable”,’ he said.

The president has recalled that experience in the past, sometimes claiming to have seen doomed Americans leaping to their deaths as flames rose.

 

President Donald Trump told a Pentagon audience Wednesday during a 9/11 memorial service that he watched as terrorists flew a plane into the South Tower of the World Trade Center in 2001

President Donald Trump told a Pentagon audience Wednesday during a 9/11 memorial service that he watched as terrorists flew a plane into the South Tower of the World Trade Center in 2001

Smoke rose from the burning twin towers of the World Trade Center on September 11, 2001 after terrorists crashed their hijacked commercial airliners into the New York City skyscrapers; Trump would have seen this from a distance of more than 4 miles away in his Trump Tower penthouse apartment

Smoke rose from the burning twin towers of the World Trade Center on September 11, 2001 after terrorists crashed their hijacked commercial airliners into the New York City skyscrapers; Trump would have seen this from a distance of more than 4 miles away in his Trump Tower penthouse apartment

The deadly Pentagon crash site was visible for months after the 9/11 attacks in 2001; the terror attack caused extensive damage to the west face of the building+12

The deadly Pentagon crash site was visible for months after the 9/11 attacks in 2001; the terror attack caused extensive damage to the west face of the building

‘I have a window in my apartment that specifically was aimed at the World Trade Center, because of the beauty of the whole downtown Manhattan,’ he told an Ohio campaign crowd in 2015, ‘and I watched as people jumped, and I watched the second plane come in.’

‘Many people jumped, and I witnessed that. I watched that,’ he said then. Skeptical media fact-checkers have pointed out that he would have seen the horrible events play out from a distance of over four miles.

He and Melania Trump stood with hands over hearts on Wednesday morning before their Pentagon visit, leading White House staff in a moment of silence on the South Lawn to commemorate the 18th anniversary of the attacks.

Standing like stone pillars as a bugler played ‘Taps,’ the first couple devoted just a few minutes to the observance before heading to the Pentagon for the more expansive memorial to the Americans who died there.

At the U.S. military’s landmark headquarters, the Trumps laid a wreath while a U.S. Army officer read the names of the fallen and a sailor rang a bell for each life lost.

Remembrances of the deadly attacks are an annual skip in the nation’s heartbeat, focusing older Americans on the day the nation stood still in awestruck pain and sadness as thousands died in New York City; Arlington, Virginia; and Somerset County, Pennsylvania.

The commemoration of the 18th anniversary of the Sept. 11 terror attacks began at ground zero with a moment of silence and tolling bells.

Eighteen years after the deadliest terror attack on American soil, the nation is still grappling with the aftermath.

The impact is visible from airport security checkpoints to Afghanistan, where a post-9/11 invasion has become America’s longest war.

We will never forget: Family members took to the podium to read out the names of their loved ones who perished in the 9/11 attacks and shared anecdotes and messages to their relatives

We will never forget: Family members took to the podium to read out the names of their loved ones who perished in the 9/11 attacks and shared anecdotes and messages to their relatives

18 years later: Family members lifted photos of their loved ones along with the message 'We Will Never Forget'

18 years later: Family members lifted photos of their loved ones along with the message ‘We Will Never Forget’

New York City Fire Department (FDNY) firefighters stand in silence outside Firehouse Engine 10 Ladder company 10 on the 18th anniversary of the September 11, 2001+12

New York City Fire Department (FDNY) firefighters stand in silence outside Firehouse Engine 10 Ladder company 10 on the 18th anniversary of the September 11, 2001

Never forgotten: A woman pictured wiping away tears as she stands next to the north pool prior to Wednesday's ceremony

Never forgotten: A woman pictured wiping away tears as she stands next to the north pool prior to Wednesday’s ceremony
In New York City family members of 9/11 victims gathered at the World Trade Center to silently hear the name of each victims solemnly read aloud. Some in the crowd proudly raised photos of their loved ones.

Others, still grieving, shared anecdotes about their loved ones.

‘Donald W. Robertson Jr. Donny, words cannot express how you are missed and loved. Your legacy lives on in your four beautiful children as well as our friends and family. We choose to remember how you lived, not how you left us. God bless you all and God Bless America,’ one woman said.

Former President George W. Bush, the commander-in-chief in 2001, is expected at a separate afternoon Pentagon wreath-laying.

New York Mayor Bill de Blasio, New Jersey Govenor Phil Murphy, New York State Attorney General Letitia James and former Mayor Michael Bloomberg paid their respects at the somber Manhattan ceremony.

For millennials who came of age later, the yearly pause focuses attention on a ‘Never Forget’ historical blip that they know only through videos, school assignments and – for some – painful family histories.

‘Terror attacks can shake the foundations of our biggest buildings, but they cannot touch the foundation of America,’ Chairman of the Joint Chiefs of Staff Gen. Joseph Dunford said during a brief Pentagon speech.

‘These acts shatter steel. They cannot bend the steel of American resolve.’

President Donald Trump and First Lady Melania Trump observed a moment of silence at the White House on Wednesday to mark the 18th anniversary of the 9/11 attacks

President Donald Trump and First Lady Melania Trump observed a moment of silence at the White House on Wednesday to mark the 18th anniversary of the 9/11 attacks

Guests at the White House for the brief, solemn ceremony included staff and military aides, survivors of the 9/11 attacks and family members of those who lost their lives

Guests at the White House for the brief, solemn ceremony included staff and military aides, survivors of the 9/11 attacks and family members of those who lost their lives

The president and first lady placed a wreath and participated in a second moment of silence honoring 9/11 victims at the Pentagon

The president and first lady placed a wreath and participated in a second moment of silence honoring 9/11 victims at the Pentagon

An American flag was draped over the Pentagon building at dawn on Wednesday; 184 people were killed there on September 11, 2001 when terrorists crashed an airliner into the building

An American flag was draped over the Pentagon building at dawn on Wednesday; 184 people were killed there on September 11, 2001 when terrorists crashed an airliner into the building

The president claimed during this November 2015 campaign rally in Ohio that he watched doomed Americans leap form the World Trade Center towers ¿ more than four miles away ¿ as flames and heat rose

Flags at 1600 Pennsylvania Avenue flew at half-staff on Wednesday, and military personnel assigned to the White House saluted.

Not a word was spoken.

The Trumps clasped hands as a bell chimed three times, once for each plane that a terrorist slammed into a World Trade Center tower in New York, and once for the aircraft another hijacked plowed into the Pentagon.

Vice President Mike Pence will speak Wednesday at a separate 9/11 memorial service near Shanksville, Pennsylvania, where martyred passengers of a doomed airliner took control of their own plane back from armed Islamic militants and forced it down rather than risk hitting the White House or the U.S. Capitol.

White House guests on the 18th anniversary of the 9/11 attacks

VICTIMS’ FAMILY MEMBERS

  • Kathy Ashton, Mother of Tommy Ashton, North Tower 95th Floor
  • John Ashton, Father of Tommy Ashton, North Tower 95th Floor
  • Gail Eagleson, Wife of Bruce Eagleson, Westfield Mall Manager, last seen assisting Port Authority Police
  • Brett Eagleson, Son of Bruce Eagleson, Westfield Mall Manager, last seen assisting Port Authority Police
  • Lisa Friedman, Wife of Andrew Friedman, North Tower 92nd Floor
  • Chris Ganci, Son of Peter J. Ganci, FDNY Chief of Department
  • Patricia Kellet, Wife of Joe Kellet, North Tower
  • Kathy Wisniewski, Wife of Alan Wisnieswski, North Tower
  • Alice Hoagland, Mother of Mark Bingham, Hero of Flight 93
  • Loreen Sellitto, Mother of Matthew Sellitto, North Tower
  • Terry Strada, Mother of Tom Strada, North Town 104th Floor
  • Kaitlyn Strads, Daughter of Tom Strada, North Town 104th Floor
  • Debra Burlingame, Sister of Cpt. Chic Burlingame pilot of AA77, Pentagon
  • Debra Ann Basham, Wife of Todd Rancke, North Tower, 104th Floor

SURVIVORS

  • Tim Frolich, Survivor, South Tower 80th Floor
  • Sharon Premoli, Survivor, North Tower 80th Floor
  • Retired Law Enforcement
  • Ken Williams, FBI, Author of the Phoenix Memo, now working for 9/11 Families
  • Bassem Youssef, FBI, now working for 9/11 Families

ADDITIONAL ATTENDEES 

  • James P. Kreindler, Esquire
  • Pamela Bondi, Esquire

 

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The Pronk Pops Show 1312, August 27, 2019, Breaking News — Story 1: Islamic Republic of Iran Will Not Meet With United States Until Sanctions Are Lifted — Trump Waiting for A Pretext To Attack — Iranian Will Give Him One — Iranian People Must Overthrow Their Totalitarian Theocracy Regime — Videos — Story 2: Johnson and Johnson Ordered To Pay $572 Million in Case Involving Marketing of Opioids to Doctors — Videos — Story 3: 19 States Sue Federal Government Over Longer Detention in Family Residential Centers (FRCs) Until Processed Under New Rule

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Story 1: Islamic Republic of Iran Will Not Meet With United States Until Sanctions Are Lifted — Trump Waiting for A Pretext To Attack — Iranian Will Give Him One — Iranian People Must Overthrow Their Totalitarian Theocracy Regime — Both Iran and North Korea Must Denuclearize of Face Sanction Forever — Videos

 

Iran will meet with US if sanctions are lifted

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President Trump Open To Meeting With Iran, Says China Wants To Make A Trade Deal | NBC Nightly News

Iran FM Zarif: “If the US stops bothering the rest of the world, everything will be fine”

Iran’s Zarif grabs #MSC2019 spotlight, slams Trump and Israel (Munich Security Conference)

Iran’s Zarif thrashes Trump, “US driven by pathological obsession” (Munich Security Conference 2019)

The Middle East’s cold war, explained

Inside Iran

Iran: Why are people protesting?

Protests in Iran enter sixth day

Published on Jan 2, 2018

 

Iran’s Rouhani Says No Talks With Trump Until Sanctions Are Lifted

CreditCreditIranian Presidency, via Agence France-Presse — Getty Images

President Hassan Rouhani of Iran said on Tuesday that he would not sit down for a meeting with President Trump until Washington had lifted all of its economic sanctions against Iran.

His comment came a day after President Emmanuel Macron of France said he would try to arrange a meeting between Mr. Trump and Mr. Rouhani in the next few weeks to ease the strained relationship between the United States and Iran.

That relationship has worsened since Mr. Trump abandoned the Iranian nuclear agreement last year and imposed crippling sanctions on Iran’s economy.

Mr. Macron said at a news conference on Monday at the conclusion of the Group of 7 meeting in France that he had spoken with his Iranian counterpart to determine whether a meeting was possible.

Opioid Overdose Crisis

Revised January 2019

Every day, more than 130 people in the United States die after overdosing on opioids.1 The misuse of and addiction to opioids—including prescription pain relieversheroin, and synthetic opioids such as fentanyl—is a serious national crisis that affects public health as well as social and economic welfare. The Centers for Disease Control and Prevention estimates that the total “economic burden” of prescription opioid misuse alone in the United States is $78.5 billion a year, including the costs of healthcare, lost productivity, addiction treatment, and criminal justice involvement.2

How did this happen?

In the late 1990s, pharmaceutical companies reassured the medical community that patients would not become addicted to prescription opioid pain relievers, and healthcare providers began to prescribe them at greater rates. This subsequently led to widespread diversion and misuse of these medications before it became clear that these medications could indeed be highly addictive.3,4 Opioid overdose rates began to increase. In 2017, more than 47,000 Americans died as a result of an opioid overdose, including prescription opioids, heroin, and illicitly manufactured fentanyl, a powerful synthetic opioid.1 That same year, an estimated 1.7 million people in the United States suffered from substance use disorders related to prescription opioid pain relievers, and 652,000 suffered from a heroin use disorder (not mutually exclusive).5

What do we know about the opioid crisis?

  • Roughly 21 to 29 percent of patients prescribed opioids for chronic pain misuse them.6
  • Between 8 and 12 percent develop an opioid use disorder.6
  • An estimated 4 to 6 percent who misuse prescription opioids transition to heroin.79
  • About 80 percent of people who use heroin first misused prescription opioids.7
  • Opioid overdoses increased 30 percent from July 2016 through September 2017 in 52 areas in 45 states.10
  • The Midwestern region saw opioid overdoses increase 70 percent from July 2016 through September 2017.10
  • Opioid overdoses in large cities increase by 54 percent in 16 states.10
The graph shows that the Northeast had the highest rate of suspected opioid overdose in Q3 of 2017. Rates in the Midwest have increased largely between Q2 and Q3 of 2017.Quarterly rate of suspected opioid overdose, by US region
Source: Centers for Disease Control and Prevention.10

This issue has become a public health crisis with devastating consequences including increases in opioid misuse and related overdoses, as well as the rising incidence of neonatal abstinence syndrome due to opioid use and misuse during pregnancy. The increase in injection drug use has also contributed to the spread of infectious diseases including HIV and hepatitis C. As seen throughout the history of medicine, science can be an important part of the solution in resolving such a public health crisis.

What are HHS and NIH doing about it?

In response to the opioid crisis, the U.S. Department of Health and Human Services (HHS) is focusing its efforts on five major priorities:

  1. improving access to treatment and recovery services
  2. promoting use of overdose-reversing drugs
  3. strengthening our understanding of the epidemic through better public health surveillance
  4. providing support for cutting-edge research on pain and addiction
  5. advancing better practices for pain management

The National Institutes of Health (NIH), a component of HHS, is the nation’s leading medical research agency helping solve the opioid crisis via discovering new and better ways to prevent opioid misuse, treat opioid use disorders, and manage pain. In the summer of 2017, NIH met with pharmaceutical companies and academic research centers to discuss:

  1. safe, effective, non-addictive strategies to manage chronic pain
  2. new, innovative medications and technologies to treat opioid use disorders
  3. improved overdose prevention and reversal interventions to save lives and support recovery

In April 2018 at the National Rx Drug Abuse and Heroin Summit, NIH Director Francis S. Collins, M.D., Ph.D., announced the launch of the HEAL (Helping to End Addiction Long-term) Initiative, an aggressive, trans-agency effort to speed scientific solutions to stem the national opioid public health crisis.

Related Resources

https://www.drugabuse.gov/drugs-abuse/opioids/opioid-overdose-crisis

Types of Pain

Acute pain can last a moment; rarely does it become chronic pain. Chronic pain persists for long periods. It is resistant to most medical treatments and cause severe problems.

  1. Pain ClassificationsEven though the experience of pain varies from one person to the next, it is possible to categorize the different types of pain.
  2. Chronic PainLearn about how chronic pain occurs, and why chronic pain sometimes lingers.
  3. Nerve PainWhen nerve fibers get damaged, the result can be chronic pain. Read about the very common causes of neuropathic pain, like diabetes.
  4. Psychogenic PainDepression, anxiety, and other emotional problems can cause pain — or make existing pain worse.
  5. Musculoskeletal PainMusculoskeletal pain is pain that affects the muscles, ligaments and tendons, and bones. Learn about the causes, symptoms, and treatments.
  6. Chronic Muscle PainUse your muscles incorrectly, too much, too little — and you’ve got muscle pain. Learn the subtle differences of muscle injuries and pain.
  7. Abdominal PainLearn common causes of abdominal pain and when to contact your doctor.
  8. Joint PainSee the causes of joint pain and how to treat it with both home remedies and prescribed medication.
  9. Central Pain SyndromeA stroke, multiple sclerosis, or spinal cord injuries can result in chronic pain and burning syndromes from damage to brain regions. Read this brief overview.
  10. Complex Regional Pain SyndromeIt’s a baffling, intensely painful disorder that can develop from a seemingly minor injury, yet is believed to result from high levels of nerve impulses being sent to the affected disorder. Learn more about this disorder.
  11. Diabetes-Related Nerve Pain (Neuropathy)If you have diabetes, nerve damage can be a serious complication. This nerve complication can cause severe burning pain especially at night. Learn more about diabetic neuropathy.
  12. Shingles Pain (Postherpetic Neuralgia)Shingles is a painful condition that arises from varicella-zoster, the same virus that causes chickenpox. Learn more about the symptoms and risk factors.
  13. Trigeminal NeuralgiaIt’s considered one of the most painful conditions in medicine. The face pain it causes can be treated. Learn more about what causes trigeminal neuralgia and treatments for face pain caused by it. 

https://www.webmd.com/pain-management/guide/pain-management-overview-facts

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Story 1: President Trump Closing Press Conference At G-7 Summit Meeting in Biarritz, France — Unity — Videos —

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Kyle Bass

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Kyle Bass
J Kyle Bass.JPG

J. Kyle Bass
Born September 7, 1969 (age 49)

Residence Dallas, TexasUnited States
Nationality American
Alma mater Texas Christian University (B.B.A.)
Occupation Founder & Chief Investment Officer,
Hayman Capital Management

J. Kyle Bass (born September 7, 1969) is an American hedge fund manager. He is the founder and principal of Hayman Capital Management, L.P., a Dallas-based hedge fund focused on global events.[1]

In 2008, Bass successfully predicted and effectively bet against the U.S. subprime mortgage crisis by purchasing credit default swaps on subprime securities which, in turn, increased in value when the real estate bubble burst.[2]

Despite his early success in predicting subprime mortgages, he has received criticism for subsequent poor performance of investments.[3] Bass has made prominent bets based on predictions of debt crisis in Japan and European sovereign debt, and shorted the Chinese yuan premised on a predicted collapse in the Chinese banking system. His fund has also challenged patents held by drug companies and shorted their stocks. His Japanese and European strategies have not been major successes and the Chinese yuan short led to severe losses for his fund in 2017.[4][5] The drug patent challenge campaign fizzled after several legal setbacks.[6]

Contents

Early life

Bass was born on September 7, 1969, in Miami, Florida, where his father managed the Fontainebleau Hotel. His father later moved the family to Dallas, Texas where he managed the Dallas Convention and Visitors Bureau.[7] Bass attended Texas Christian University on an academic and Division I diving scholarship. In 1992, Bass graduated with honors, earning a B.B.A. in finance with a concentration in real estate.[8]

Career

Before founding Hayman Capital Management in 2005, Bass briefly worked at Prudential Securities from 1992-1994 before joining Bear Stearns in 1994.[9] At Bear Stearns, he rose through the ranks rapidly, becoming a senior managing director at the age of 28 – among the youngest in the firm’s history to carry such a title.[2][8]

In 2001, he joined Legg Mason, signing a five-year deal to form the firm’s first institutional equity office in Texas. Bass told his hiring managers, “In five years and one day, I [will] be launching my own firm.”[9] While at Legg Mason, Bass advised hedge funds and other institutional clients on special situation investment strategies.[2]

In December 2005, when Legg Mason sold the portion of the business where he worked, Bass left Legg Mason and started Hayman Capital Management to serve as the investment manager to a “global special situations” hedge fund that he planned to launch. Bass launched Hayman Capital Management, L.P. with $33 million in assets under management – $5 million he had saved on his own and the balance he had raised from outside investors.[9] Shortly after launching the hedge fund in February 2006, Bass became convinced that there was a residential real-estate bubble in the United States one of the few investors to successfully predict and benefit from the subprime mortgage crisis, bringing him notoriety in the financial services industry.

In 2007, Bass testified as an expert witness before the U.S. House Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises. During his testimony, he addressed: i) the role of credit rating agencies in the structured finance market and ii) policy measures that could be taken to minimize inherent conflicts of interest between rating agencies and issuers.[10]

In 2010, Bass testified before the Financial Crisis Inquiry Commission. During his testimony, he addressed his analysis of the factors that caused the crisis.

After enjoying success in predicting the subprime mortgage crisis and moderate success with debt in Greece and Japan, Bass would make a string of poor bets, leading to a dramatic downsizing of his fund. In April 2014, Bass was among a very few defenders of GM for its failure to address a defect that had been tied to 13 deaths. Hayman at the time owned eight million shares of G.M., making it Hayman’s single biggest holding,[11] Coming to the defense of GM, Bass said on CNBC that of the 13 passengers who had died owing to the defect, 12 “either weren’t wearing their seatbelt or were under the influence of alcohol.” [12] Bass admitted in a late 2014 interview that it had been “a tough year” for Hayman due to owning a lot of GM stock, which was the fund’s biggest position in 2014.[13]

After the losing year in 2014, investor’s pulled out nearly a quarter of Hayman’s capital and the firm was forced to liquidate most of its stock holdings.[14] Bass called 2015 one of his fund’s worst years.[15] By early 2019, Hayman had $423.6 million in discretionary assets under management, down from $2.3 billion at the end of 2014.[16]

Fund performance

The long term performance of Hayman Capital’s flagship fund is described by the New York Post as “small caliber”.[14] In the period from 2008 to mid-2015, the flagship fund experienced a very modest annualized performance of 1.56%.[14] The flagship fund had a tremendously successful year in 2007, having gained 212%, based on the subprime mortgage meltdown bet that brought fame to Bass.[14] The fund also gained 16% in 2012 based on bets on Greek debt. The fund lost 1.4% in 2014 and suffered its worst year in 2017 with a 19% loss (in contrast to a 19% surge of the S&P 500) due to Hayman’s misplaced short on a collapse in the Chinese yuan.[14][5]

Investment positions

Subprime mortgages

Bass first began formulating his subprime strategy after he met with an investment banker from New York while attending a wedding in Spain where they discussed how and why the Subprime Mezzanine CDO business existed.[17][18] After returning to the US, Bass hired several private investigators to determine the ease of obtaining a mortgage. Bass spent a significant amount of time studying the residential mortgage market and performed research to identify which residential mortgage backed securities (RMBS) composed of low-quality mortgages were most likely to default. This investment thesis was expressed by purchasing credit default swaps against the securitizations he deemed to be most unstable, which essentially was a manner of shorting the bonds using synthetic instruments. After purchasing the positions for his flagship fund in 2006, Bass raised additional capital for a special fund dedicated exclusively to capitalizing on the opportunity that existed in the market place. Bass managed or advised over $4 billion of positions in subprime RMBS.

In December 2007, after a wave of foreclosures had swept across the US, Bass was featured on Bloomberg TV as making a fortune betting against these subprime securities.

Europe and Japanese debt “doomsday”

After the subprime debt crisis occurred, Bass decided that it was the symptom of a more significant problem with debt and made predictions about debt “doomsday” in Europe and Japan. In 2009 he warned about the possibility of defaults by major countries over the next 3 years.[19] As of 2010, 10-15% of his portfolio was involved in bets against European and Japanese sovereign debts.[20] He went as far predicted that 2012 would be a “doomsday year” for Europe and spoke of a looming breakup of the Eurozone, which, he declared, would lead to defaults in Japan and the United States. He stated in June 2012, “Europe goes first, then Japan and finally the United States.”[21]

Bass has since 2012 also predicted a “full blown crisis” in Japan describing its approach to financing debt as a Ponzi scheme similar to Bernie Madoff‘s investment scam. Most experts have disagreed with his analysis.[22][23] Cullen Roche criticized Bass’s Japan analysis in August 2010, noting that Bass comparing Japan to the EU was an error, since their monetary systems are wildly different. Roche stated “people still fail to understand that a nation with monetary sovereignty that is the supplier of currency in a floating exchange rate system never has a problem funding itself.”[24] In May 2012, Business Insider agreed, faulting Bass’s analysis, since debt-to-GDP ratios do not reflect the interest rate or credit risk of a nation. The Business Insider noted that in a nation that borrows its own currency, public spending finances borrowing.[25]

He has been vocal in public appearances about future calamities stemming from financial meltdown. September 14, 2011, Bass maintained on CNBC that Greece’s only way out of its debt mess was a restructuring. Bass noted that despite the strife it would bring to Greece it was the only measure the nation could take. He added that within a year all of Europe would be in default as well.[26] In a speech reported on January 1, 2014, he assured the audience of his confidence that the next few years would be rife with turmoil, including the eruption of major wars. In his speech, he claimed that with the growing debt and inability to pay it off, eventually social unrest will lead to violent outbreaks. Bass finished his speech stating “War is coming – just as it has throughout history.” [27]

Chinese banking collapse

Starting in July 2015, Bass made a multiyear bet against the Chinese yuan based on a predicted banking collapse in China.[28] Bass would close out his position against the Chinese currency in early 2019 when the predicted devaluation of the currency didn’t occur.[28]

Bass argued in 2015 that the Chinese banking system was undercapitalized and its foreign reserves would be insufficient in a crisis. Bass predicted a hard landing for the Chinese economy following a bank crisis and a severe devaluation of the Chinese currency, variously given as “somewhere between 15%-20%” and “30 to 40 percent”.[29][30]

Hayman suffered its worst year in 2017 with a loss of 19% due to the strengthening of the Chinese yuan.[5]

Drug patent challenge campaign

Bass has attempted to profit from filing and publicizing patent challenges against pharmaceutical companies while also betting against their shares.[31][32] After 2 years of setbacks in his effort, Bass by 2017 ended his patent challenges.[6]

In 2015, Bass organized the Coalition For Affordable Drugs (CFAD) to use the inter partes review (IPR) process to challenge patent validity.[33][34] When he initiated this practice in January 2015, he claimed that his motive was to encourage competition in the manufacture of pharmaceuticals and thus bring down prices.[35]

Bass filed a total of 35 patent challenges, in collaboration with Erich Spangenberg who has been called “the world’s most notorious patent troll”,[3] including 33 filed by CFAD and two filed by Bass personally on a not-for-profit basis.[36]

In June 2015, Celgene received permission from the U.S. Patent and Trademark Office to file a motion seeking sanctions against the CFAD for allegedly abusing the patent-review process. The Wall Street Journal noted that this development was “being closely watched because it raises the possibility that patent officials may put an end” to Bass’s patent-challenge scheme. Celgene also told the patent office, through counsel, that CFAD had threatened to challenge its patents unless Celgene met CFAD’s demands.[37]

In October 2016, Bass prevailed in the case, with USPTO invalidating the two Celgene Corp patents related to its cancer drugs Revlimid, Pomalyst, and Thalomid at issue.[38] However, one year later Celgene was able to convince the Patent Trial and Appeal Board to re-hear the case.[39]

Political relationships

Trump administration

Bass is described by a ProPublica story as a friend of Tommy Hicks Jr, a private investor, who was a hunting buddy to Donald Trump Jr. and had further ties to the Trump administration.[40] According to the investigative story on improper links between Hicks and the Trump administration, Hicks had obtained a hearing for Bass with high level officials at an interagency meeting at the Treasury Department to air views on China.[40] This meeting was at the time Bass held a large short position counting on the fall of the Chinese currency.[40]

Cristina Fernandez de Kirchner

The BBC has described Bass as having a “good relationship” with Argentina’s president Cristina Fernandez de Kirchner.[41] In February 2014, Bass said that Argentinian bonds represented a profitable opportunity and called Argentina most “interesting” nation for investments. He was virtually alone in this assessment, with one observer noting the poor state of the Argentine economy. The IB Times noted that the country had “cheated creditors seven times since it gained independence from Spain in 1816,” most recently defaulting on its debt in 1989.[42] When the Argentine government defaulted on its debt in July 2014, Bass supported the move and criticized the bondholders, notably Elliott Management and Aurelius Capital, that, with the support of U.S. federal judge Thomas Griesa, had held out for full payment. Echoing Argentine President Cristina Fernandez de Kirchner, he called these creditors “vultures,” said that they were “holding up 42 million people from progress,” and were holding Argentina for “ransom”.[43] On August 27, 2014, Bass accused Elliott’s Paul Singer of “holding poor countries as hostages,” prompting The New York Post to comment in an editorial the next day that Bass had “sounded more like Argentina’s leftist economy minister Axel Kicillof than a US hedge-fund manager.” [44]

Philanthropy

Bass serves on the board or in an advisory role for a number of charities and organizations.

He has advised the University of Texas System Investment Management Company (UTIMCO), a public university endowment since 2010.

He also current serves or has served on the board of a number of organizations including the University of Virginia Darden School of Business Advisory Group for the Richard A. Mayo Center for Asset Management, Texas Department of Public Safety Foundation, Business Executives for National Security, Comeback America Initiative, Troops First Foundation and Capital for Kids.[45][46][47][48][49][50]

References …

External links

https://en.wikipedia.org/wiki/Kyle_Bass


China has been seeking to turn American spies for decades. But the rules of the game have changed. About 10 years ago, Charity Wright was a young U.S. military linguist training at the elite Defense Language Institute Foreign Language Center at a base called the Presidio in Monterey, California. Like many of her peers, Wright relied on taxis to visit the city. There were usually a few waiting outside the base’s gate. She’d been assigned to the institute’s Mandarin program, so she felt lucky to frequently find herself in the cab of an old man who told her he’d emigrated from China years ago. He was inquisitive in a way she found charming at first, letting her practice her new language skills as he asked about her background and family. After several months, though, she grew suspicious. The old man seemed to have an unusually good memory, and his questions were becoming more specific: Where is it that your father works? What will you be doing for the military once you graduate?Wright had been briefed on the possibility of foreign intelligence operatives collecting information on the institute’s trainees, building profiles for potential recruitment, given that many of them would move on to careers in intelligence. She reported the man to an officer at the base. Not long after, she heard that he’d been arrested and that there had been a crackdown in Monterey on a suspected Chinese spy ring.

Wright went on to spend five years as a cryptologic language analyst with the National Security Agency, assessing communications intercepts from China. Now she works in private-sector cybersecurity. As a reservist, she still holds a U.S. government clearance that allows her access to classified secrets. And she’s still the target of what she suspects are Chinese espionage efforts. Only these days, the agents don’t approach her in person. They get in touch the same way they reached Kevin Mallory: online. She gets messages through LinkedIn and other social-media sites proposing various opportunities in China: a contract with a consulting firm, a trip to speak at a conference for a generous stipend. The offers seem tempting, but this type of outreach comes straight from the Chinese-spy playbook. “I’ve heard that they can be very convincing, and by the time you fly over, they’ve got you in their lair,” Wright told me.

The tactics she saw from the old man in Monterey were “cut and dry HUMINT,” or human intelligence, she said. They were old school. But those tactics have been amplified by the tools of the social-media age, which allow intelligence officers to reach out to their targets en masse from China, where there’s no risk of getting caught. Meanwhile, intelligence experts tell me, Chinese intelligence officers have only been getting better at the traditional skills involved in persuading a target to turn on his or her country.

Donald Trump has made getting tough on China a central aspect of his foreign policy. He has focused on a trade war and tariffs aimed at rectifying what he portrays as an unfair economic playing field—earlier this month, the U.S. designated China as a currency manipulator—while holding onto the idea that China’s powerful leader, Xi Jinping, can be an ally and a friend. U.S. political and business leaders for decades pushed the idea that embracing trade with China would help to normalize its behavior, but Beijing’s aggressive espionage efforts have fueled an emerging bipartisan consensus in Washington that the hope was misplaced. Since 2017, the DOJ has brought at least a dozen cases against alleged agents and spies for conducting cyber- and economic espionage on behalf of China. “The hope was, as they develop, as they become more wealthy, as they start being a part of the club of developed nations, they’re going to change their behavior—once they get closer to the top, they’re going to operate by our rules,” John Demers told me. “What we’ve seen instead is [China] becoming better resourced and more methodical about the theft of information.”

For the past 20 years, America’s intelligence community’s top priority has been counterterrorism. A generation of operations officers and analysts has been geared more toward finding and killing America’s enemies and preventing extremist attacks than toward the more patient and strategic work that comes with peer competition and counterintelligence. If America is indeed entering an era of “great power” conflict with China, then the crux of the struggle will likely take place not on a battlefield, but in the race for information, at least for now. And here China is using an age-old human frailty to gain advantage in the competition with its more powerful adversary: greed. U.S. officials have been warning companies and research institutions not just of the strings that might be attached to Chinese money, but of the danger of corrupted employees turned spies. They are also worried about current and former U.S. officials who have been entrusted with protecting the nation’s secrets.


When I told William Evanina, America’s top counterintelligence official, Wright’s story about the cab driver in Monterey, he replied: “Of course.”

Spy rings operating out of taxis are relatively unoriginal, he told me, and have long been an issue around U.S. military and intelligence installations. An FBI and CIA veteran who is now the director of the National Counterintelligence and Security Center, Evanina has a suspicious mind—and perhaps one of the country’s worst Uber ratings. He sees the risk of intelligence collection and hidden cameras in any hired car, he told me, and if a driver ever tries to make small talk, he immediately shuts it down.

Knowing someone’s background can help an intelligence agency build a profile for potential recruitment. The person might have medical bills piling up, a parent in debt, a sibling in jail, or an infidelity that exposes him or her to blackmail. What really worries Evanina is that so much of this information can now be obtained online, legally and illegally. People can ignore Uber drivers all they want, but a good hacker or even someone savvy at mining social media might be able to track down targets’ financial records, their political views, profiles of their family members, and their upcoming travel plans. “It makes it so damn easy,” he said.

Security breaches happen with alarming regularity. Capital One announced in July that a data breach had exposed about 100 million people in America. During one of my conversations with Wright, she mused that whatever information the old man in the taxi might have wanted to glean from her, all that and much more may have been revealed in the 2015 breach of the U.S. Office of Personnel Management. In that sophisticated attack, widely believed to have been carried out by state-sponsored Chinese hackers, an enormous batch of data was stolen, including detailed information the government collects as part of the process of approving security clearances. The stolen information contained “probing questions about an applicant’s personal finances, past substance abuse, and psychiatric care,” according to Wired, as well as “everything from lie detector results to notes about whether an applicant engages in risky sexual behavior.”

Russia, the U.S. adversary that is often included with China in discussions of “near peer” conflict, has a modus operandi when it comes to recruiting spies that is similar to America’s, Evanina said. While some of their intelligence efforts, such as election interference, are loud and aggressive and seemingly unconcerned with being discovered, Russians are careful and targeted when trying to turn a well-placed asset. Russia tends to have veteran intelligence operatives make contact in person and proceed with care and patience. “Their worst-case scenario is getting caught,” Evanina told me. “They take pride in their HUMINT operations. They’re very targeted. They take extra time to increase the percentage of success. Whereas the Chinese don’t care.” (This doesn’t mean that the Chinese can’t also be targeted and discreet when needed, he added.)

“What you have is an intelligence officer sitting in Beijing,” he said. “And he can send out 30,000 emails a day. And if he gets 300 replies, that’s a high-yield, low-risk intelligence operation.” Concerning those who have left government for the private sector—and who sometimes keep their clearance to continue doing sensitive government work—it can be hard to know where to draw the line. Evanina said China will sometimes wait years to target former officials: “Your Spidey sense goes down.” But “your memory is not erased”—that is, they’ve still got the information the Chinese want.

(Alicia Tatone)

Often, Chinese spies don’t even have to look too hard. Many of those who have left U.S. intelligence jobs reveal on their LinkedIn profiles which agencies they worked for and the countries and topics on which they focused. If they still have a government clearance, they might advertise that too. Buried in the questionnaire Evanina filled out for his Senate confirmation is a question asking whether he had any plans for a career after government. “I currently have no plans subsequent to completing government service,” he wrote. When I asked him about this, he admitted that this is becoming less common among intelligence officials his age. (He’s 52.) “All of my friends are leaving like crazy now because they have kids in college,” he said. “The money is [better]. It’s hard to say no.”

If a former intelligence officer lands a job at a prominent government contractor, such as Booz Allen Hamilton or DynCorp International, he or she can expect to be well compensated. But others find themselves in less lucrative posts, or try to strike out on their own. Evanina told me that Chinese intelligence operatives pose online as Chinese professors, think-tank experts, or executives. They usually propose a trip to China as a business opportunity. “Especially the ones who have retired from the CIA, DIA, and are now contractors—they have to make the bucks,” Evanina said. “And a lot of times that’s in China. And they get compromised.”

Once a target is in China, Chinese operatives might try to get the person to start passing over sensitive information in degrees. The first request could be for information that doesn’t seem like a big deal. But by then the trap is set. “When they get that [first] envelope, it’s being photographed. And then they can blackmail you. And then you’re being sucked in,” Evanina said. “One document becomes 10 documents becomes 15 documents. And then you have to rationalize that in your mind: I am not a spy, because they’re forcing me to do this.”

In the cases of Mallory, Hansen, and Lee, Evanina said, the lure wasn’t ideology. It was money. Money was also the lure in two similar cases, in which suspects were convicted of lesser charges than espionage. Both apparently began their relationship with Chinese intelligence officers while still employed in sensitive U.S. government jobs.

In 2016, Kun Shan Chun, a veteran FBI employee who had a top-secret security clearance, pleaded guilty to acting as an agent of China. Prosecutors said that while working for the agency in New York he sent his Chinese handler, “at minimum, information regarding the FBI’s personnel, structure, technological capabilities, general information regarding the FBI’s surveillance strategies, and certain categories of surveillance targets.” And in April, Candace Claiborne, a former State Department employee, pleaded guilty to conspiracy to defraud the United States. According to the criminal complaint, Claiborne, who had served in a number of posts overseas including China, and held a top-secret security clearance, did not report her contacts with suspected Chinese agents, who provided her and a co-conspirator with “tens of thousands of dollars in gifts and benefits,” including New Year’s gifts, international travel and vacations, fashion-school tuition, rent, and cash payments. In exchange, Claiborne provided copies of State Department documents and analysis, prosecutors said.

Evanina’s office in Bethesda, Maryland, features a so-called Wall of Shame, on which hang the photographs of dozens of convicted American traitors—a testament to the struggles that have always plagued the U.S. intelligence community. The Cold War, for example, was marked by disastrous leaks from people such as the CIA officer Aldrich Ames and the FBI agent Robert Hanssen. Larry Chin, a CIA translator, was arrested in 1985 on charges of selling classified information to China over the course of three decades. That came during the so-called Year of the Spy, as the FBI made a series of high-profile arrests of U.S. government officials spying for the Soviet Union, Israel, and even Ghana. The Wall of Shame is currently being renovated, and when it’s unveiled in the fall, it will feature several new faces.Whenever a current or former U.S. intelligence officer has been turned, it takes years to assess the full repercussions. “We have to mitigate that damage for sometimes a decade,” Evanina said.


Two decades ago, Chinese intelligence officers were largely seen as relatively amateurish, even sloppy, a former U.S. intelligence official who spent years focusing on China told me. Usually, their English was poor. They were clumsy. They used predictable covers. Chinese military intelligence officers masquerading as civilians often failed to hide a military bearing and could come across as almost laughably uptight. Typically their main targets tended to be of Chinese descent. In recent years, however, Chinese intelligence officers have become more sophisticated—they can come across as suave, personable, even genteel. Their manners can be fluid. Their English is usually good. “Now this is the norm,” the former official said, speaking with me on condition of anonymity due to security concerns. “They really have learned quite a bit and grown up.”

Rodney Faraon, a former senior analyst at the CIA, told me that the Mallory and Hansen cases show just how far China’s espionage services have come. “They’ve broadened their tactics to go beyond relatively easy targets, from recruiting among the ethnically Chinese community to a much more diverse set of human assets,” he said. “In a sense, they’ve become more traditional.”

In his recently published bookTo Catch a Spy: The Art of Counterintelligence, James Olson, a veteran of the CIA’s clandestine service and its former chief of counterintelligence, breaks down the basics of China’s espionage services and how they operate. The Ministry of State Security (MSS), its main service, focuses on overseas intelligence. The Ministry of Public Security focuses on domestic intelligence, but also has agents abroad. The People’s Liberation Army, which focuses on military intelligence, “has defined its role broadly and has competed with the MSS in a widerange of economic, political, and technological intelligence collection operations overseas, in addition to its more traditional military targeting.” Olson adds that “the PLA has been responsible for the bulk” of China’s cyberespionage, though the MSS may also be expanding in this realm. Both the MSS and PLA, meanwhile, “make regular use of diplomatic, commercial, journalistic, and student covers for their operations in the United States. They aggressively use Chinese travelers to the US, especially business representatives, academics, scientists, students, and tourists, to supplement their intelligence collection. US intelligence experts have been amazed at how voracious the Chinese have been in their collection activity.”

If veteran American spies are vulnerable to Chinese espionage, U.S. companies may be faring even worse. In some cases, targeting the private sector and targeting U.S. national security can mix. A former U.S. security official, who now works for a prominent American aviation company that is involved in highly sensitive U.S. government projects, told me that the company had a suspected intelligence collector linked to China in its midst. “I would say that he’s had tradecraft training,” this person said, speaking anonymously due to an ongoing law-enforcement investigation.The former security official was hired by the company to monitor such threats, and initially found the lack of effective prevention measures and training at the company jarring. “When I walked in and got the briefing here, I thought it was a joke … Now we do take some measures to protect against [insider threats], but in a sense it’s fox in a henhouse,” this person said. “We as an industry are woefully inadequate at protecting ourselves from a foreign-intelligence threat.”

In a sense, going after American spies and government officials is fair game in the intelligence world. The U.S. does the same against the Chinese. “Intelligence operations are universal, with every country—other than a few isolated island-states who are concerned mainly with the danger of approaching cyclones—engaging in them, to one degree or another,” Loch K. Johnson, a professor emeritus at the University of Georgia, the author of Spy Watching: Intelligence Accountability in the United States, and one of America’s foremost intelligence scholars, told me in an email. He added that while almost every nation fields capabilities to both collect information about its adversaries and defend itself against espionage, a much smaller number have meaningful networks for covert action, which he described as “secret propaganda; political and economic manipulation; even paramilitary activities.” Both America and China count themselves among this group.

“The United States used propaganda, political, and economic ops during the Cold War and (somewhat less aggressively) since. China returns [the] favor,” Johnson said. “Both are major powers and have a full complement of intelligence capabilities, aimed at each other and other significant targets around the world. This means that the United States (like China in reverse) is constantly trying to learn what China is doing when it comes to military, economic, political, and cultural activities, since they may impinge upon U.S. interests in Asia and elsewhere.” To that end, the U.S. uses signals intelligence, geospatial intelligence, and HUMINT, Johnson said, “all aided by a diligent searching through the available (and voluminous) [open-source intelligence] materials for background.”

But he noted a key difference between the two countries: China’s aggressive approach to economic espionage. These Chinese efforts are partly what have prompted U.S. officials and politicians to turn to a newly popular refrain that China’s not playing by the rules. U.S. officials insist that American intelligence agencies do not target foreign companies with the aim of helping domestic ones. (The line between American spying on foreign companies to advance the country’s economic and strategic interests and whether that spying helps U.S. companies can be blurry.) “What we do not do, as we have said many times, is use our foreign intelligence capabilities to steal the trade secrets of foreign companies on behalf of—or give intelligence we collect to—U.S. companies to enhance their international competitiveness or increase their bottom line,” James Clapper, then the director of national intelligence, said in 2013, amid revelations that the NSA had spied on foreign companies.Dennis Wilder, who retired as the CIA’s deputy assistant director for East Asia and the Pacific in 2016, told me that the Chinese approach to espionage is defined by the fact that its leaders have long seen America as an existential threat. “This is a constant theme in Chinese intelligence—that we’re not just out to steal secrets, we’re not just out to protect ourselves, that the real American goal is the end of Chinese Communism, just as that was the goal with the Soviet Union,” he said.
Wilder, who still travels to the country as the director of an initiative for U.S.-China dialogue at Georgetown University, told me that Chinese officials regularly bring up past American covert action such as the CIA’s ill-fated support for the independence movement in Tibet beginning in the 1950s, and its infiltration of agents into China via Taiwan. And they still see an American hand in events such as the protests in Hong Kong today. “So we’re all sitting here scratching our heads and saying, ‘Do they really believe we’re behind Hong Kong? And the answer is, yes they do. They really believe that the fundamental American goal is the destruction and demise of Chinese Communism,” he said. “Now, if you believe that the other guy is bent on your destruction, then it’s kind of anything goes. So for the Chinese, stealing, espionage, cyberespionage against American corporations for the good of the Chinese state, are just part and parcel of the need for survival against this very formidable enemy.”China denies that it is spying against the U.S.  on the scale alleged by American officials. When presented with the details of this story, a spokesperson for the Chinese embassy in Washington, D.C., Fang Hong, said via email that she had no knowledge of the cases involving Mallory, Hansen, Lee, and others. “China has always fully respected the sovereignty of all countries and does not interfere in the internal affairs of other countries,” she said. Fang also disparaged U.S. attempts to root out Chinese spies, citing a quote commonly attributed to a great American writer. U.S. views on Chinese espionage, she remarked, “remind me of what Mark Twain said: ‘To a man with a hammer, everything looks like a nail.’”
Fang continued, “U.S. officials’ accusations against Chinese students and researchers are groundless. Guided by the zero-sum-game mentality and ill intentions to contain China, people and institutions in the U.S. have been fabricating such absurd pretexts as ‘espionage’ as an excuse to harass them and make groundless allegations.”

She added that innocent people had been framed in some cases and that “such false accusations severely undermine China-U.S. people-to-people exchanges, and scientific and technological cooperation.”

The litany of cases the DOJ has brought over the past year or so underscores the comprehensive quality of China’s espionage efforts: a former General Electric engineer charged with theft of trade secrets related to gas and steam turbines (he has pleaded not guilty); an American and a Chinese citizen charged with attempting to steal trade secrets related to plastics (the American has pleaded not guilty and the Chinese defendant, as of March 2019, had yet to appear in a U.S. court); a state-owned Chinese chip-making company and a Taiwanese company that makes semiconductors charged with stealing from an American competitor(the chipmaker has pleaded not guilty); two Chinese hackers charged with targeting intellectual property (China denied the “slanderous” economic espionage charges). In Senate testimony in July, FBI Director Christopher Wray said that the agency has “probably about 1,000 plus investigations all across the country involving attempted theft of U.S. intellectual property … almost all leading back to China.”

Demers, the national-security official at the Justice Department, told me that China uses the same tactics and even some of the same intelligence officers in its espionage efforts against America’s private sector. “What it shows is how seriously the Chinese government takes their intellectual-property-theft efforts, because they’re really using the crown jewels of their intelligence community and their most sophisticated and well-honed tradecraft,” he said.Some of the trade secrets China is accused of stealing seem simply aimed to help a specific company or industry. Often, however, the distinction between a Chinese company and the Chinese state is not clear-cut. Chinese law mandates that all corporations cooperate with the government on national security. This was one concern U.S. officials cited after announcing indictments against the Chinese telecommunications giant Huawei earlier this year; the Trump administration has banned U.S. companies from doing business with it. (Huawei has pleaded not guilty to attempted U.S. trade-theft allegations.)Demers told me that China uses economic espionage as a form of “R&D,” or research and development. “They also have very talented, smart people who are using their resources in legitimate ways, which is, I think, some of the frustration that folks have right now—that you could do this differently. You could fight fair, right? You’re not the 80-pound weakling who has to throw dirt in somebody’s eye to get ahead.”
The open business climate between America and China—the sort of climate that did not exist between America and the Soviet Union during the Cold War—makes addressing Chinese espionage trickier: China is both a rival and a top trade partner. The economic and research relationship between the two countries benefits them both. At the same time, Chinese immigrants and visitors to America risk being unfairly targeted if U.S. officials fail to find the right balance, which would cast a chill on legitimate exchange between the two countries while raising the specter of American overreactions during past struggles, from the Cold War to the War on Terror. As U.S. officials warn about the Chinese espionage threat and the U.S. intelligence community reorients to face it, they must be careful not to undermine the American values—openness, civil liberty, enterprise—that remain perhaps the country’s greatest advantage over China.Rodney Faraon, who worked on the President’s Daily Briefing team at the CIA during the Bill Clinton and George W. Bush administrations and is now a partner at Crumpton Group, a business intelligence firm, told me that it will take a major push not just from America’s intelligence agencies but from the U.S. government overall to find the right strategy. And despite the Trump administration’s combative stance on trade negotiations and other issues, this has yet to happen. “The approach must be whole of government and must involve the private sector,” Faraon said. “The Chinese use and value intelligence better than we do, seeing its applicability in nearly every aspect of private and public life—military, social, commercial. We have been slow to recognize this for ourselves.
https://www.theatlantic.com/politics/archive/2019/08/inside-us-china-espionage-war/595747/

Story 3: Big Brother Is Watching Every Move You Make With Social Credit System — Chinese Communist Control  Digital Dictatorship Surveillance State — From Authoritarian to Totalitarian State — Socialist Serfs —   Videos

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A Look Inside China’s Social Credit System | NBC News Now

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China Expert Gordon Chang On Its Social Credit Rating System & Surveillance State

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China Social Credit System: Beijing plans to go full on Big Brother in 2020 – TomoNews

China’s “Social Credit System” Has Caused More Than Just Public Shaming (HBO)

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China’s Secret Plan to Control the Internet | China Uncensored

20 Years Ago, This Changed China Forever: Here Are 5 Ways | China Uncensored

Big Brother: China Edition!

1984 Introduction

What is 1984?

 

Uh-oh: Silicon Valley is building a Chinese-style social credit system

In China, scoring citizens’ behavior is official government policy. U.S. companies are increasingly doing something similar, outside the law.

Uh-oh: Silicon Valley is building a Chinese-style social credit system
[Images: Rawf8/iStock; zhudifeng/iStock]

Have you heard about China’s social credit system? It’s a technology-enabled, surveillance-based nationwide program designed to nudge citizens toward better behavior. The ultimate goal is to “allow the trustworthy to roam everywhere under heaven while making it hard for the discredited to take a single step,” according to the Chinese government.

In place since 2014, the social credit system is a work in progress that could evolve by next year into a single, nationwide point system for all Chinese citizens, akin to a financial credit score. It aims to punish for transgressions that can include membership in or support for the Falun Gong or Tibetan Buddhism, failure to pay debts, excessive video gaming, criticizing the government, late payments, failing to sweep the sidewalk in front of your store or house, smoking or playing loud music on trains, jaywalking, and other actions deemed illegal or unacceptable by the Chinese government.

It can also award points for charitable donations or even taking one’s own parents to the doctor.

Punishments can be harsh, including bans on leaving the country, using public transportation, checking into hotels, hiring for high-visibility jobs, or acceptance of children to private schools. It can also result in slower internet connections and social stigmatization in the form of registration on a public blacklist.

China’s social credit system has been characterized in one pithy tweet as “authoritarianism, gamified.”

Authoritarianism, gamified. https://www.privateinternetaccess.com/blog/2015/10/in-china-your-credit-score-is-now-affected-by-your-political-opinions-and-your-friends-political-opinions/  ht @VitalikButerin @FrankPasquale

In China, Your Credit Score Is Now Affected By Your Political Opinions – And Your Friends’ Politi…

China just introduced a universal credit score, where everybody is measured as a number between 350 and 950. But this credit score isn’t just affected by how well you manage credit – it also reflects…

privateinternetaccess.com

At present, some parts of the social credit system are in force nationwide and others are local and limited (there are 40 or so pilot projects operated by local governments and at least six run by tech giants like Alibaba and Tencent).

Beijing maintains two nationwide lists, called the blacklist and the red list—the former consisting of people who have transgressed, and the latter people who have stayed out of trouble (a “red list” is the Communist version of a white list.) These lists are publicly searchable on a government website called China Credit.

The Chinese government also shares lists with technology platforms. So, for example, if someone criticizes the government on Weibo, their kids might be ineligible for acceptance to an elite school.

Public shaming is also part of China’s social credit system. Pictures of blacklisted people in one city were shown between videos on TikTok in a trial, and the addresses of blacklisted citizens were shown on a map on WeChat.

Some Western press reports imply that the Chinese populace is suffocating in a nationwide Skinner box of oppressive behavioral modification. But some Chinese are unaware that it even exists. And many others actually like the idea. One survey found that 80% of Chinese citizens surveyed either somewhat or strongly approve of social credit system.

IT CAN HAPPEN HERE

Many Westerners are disturbed by what they read about China’s social credit system. But such systems, it turns out, are not unique to China. A parallel system is developing in the United States, in part as the result of Silicon Valley and technology-industry user policies, and in part by surveillance of social media activity by private companies.

Here are some of the elements of America’s growing social credit system.

INSURANCE COMPANIES

The New York State Department of Financial Services announced earlier this year that life insurance companies can base premiums on what they find in your social media posts. That Instagram pic showing you teasing a grizzly bear at Yellowstone with a martini in one hand, a bucket of cheese fries in the other, and a cigarette in your mouth, could cost you. On the other hand, a Facebook post showing you doing yoga might save you money. (Insurance companies have to demonstrate that social media evidence points to risk, and not be based on discrimination of any kind—they can’t use social posts to alter premiums based on race or disability, for example.)

The use of social media is an extension of the lifestyle questions typically asked when applying for life insurance, such as questions about whether you engage in rock climbing or other adventure sports. Saying “no,” but then posting pictures of yourself free-soloing El Capitan, could count as a “yes.”

PATRONSCAN

A company called PatronScan sells three products—kiosk, desktop, and handheld systems—designed to help bar and restaurant owners manage customers. PatronScan is a subsidiary of the Canadian software company Servall Biometrics, and its products are now on sale in the United States, Canada, Australia, and the United Kingdom.

PatronScan helps spot fake IDs—and troublemakers. When customers arrive at a PatronScan-using bar, their ID is scanned. The company maintains a list of objectionable customers designed to protect venues from people previously removed for “fighting, sexual assault, drugs, theft, and other bad behavior,” according to its website. A “public” list is shared among all PatronScan customers. So someone who’s banned by one bar in the U.S. is potentially banned by all the bars in the U.S., the U.K., and Canada that use the PatronScan system for up to a year. (PatronScan Australia keeps a separate system.)

Judgment about what kind of behavior qualifies for inclusion on a PatronScan list is up to the bar owners and managers. Individual bar owners can ignore the ban, if they like. Data on non-offending customers is deleted in 90 days or less. Also: PatronScan enables bars to keep a “private” list that is not shared with other bars, but on which bad customers can be kept for up to five years.

PatronScan does have an “appeals” process, but it’s up to the company to grant or deny those appeals.

UBER AND AIRBNB

Thanks to the sharing economy, the options for travel have been extended far beyond taxis and hotels. Uber and Airbnb are leaders in providing transportation and accommodation for travelers. But there are many similar ride-sharing and peer-to-peer accommodations companies providing similar services.

Airbnb—a major provider of travel accommodation and tourist activities—bragged in March that it now has more than 6 million listings in its system. That’s why a ban from Airbnb can limit travel options.

Airbnb can disable your account for life for any reason it chooses, and it reserves the right to not tell you the reason. The company’s canned message includes the assertion that “This decision is irreversible and will affect any duplicated or future accounts. Please understand that we are not obligated to provide an explanation for the action taken against your account.” The ban can be based on something the host privately tells Airbnb about something they believe you did while staying at their property. Airbnb’s competitors have similar policies.

It’s now easy to get banned by Uber, too. Whenever you get out of the car after an Uber ride, the app invites you to rate the driver. What many passengers don’t know is that the driver now also gets an invitation to rate you. Under a new policy announced in May: If your average rating is “significantly below average,” Uber will ban you from the service.

WHATSAPP

You can be banned from communications apps, too. For example, you can be banned on WhatsApp if too many other users block you. You can also get banned for sending spam, threatening messages, trying to hack or reverse-engineer the WhatsApp app, or using the service with an unauthorized app.

WhatsApp is small potatoes in the United States. But in much of the world, it’s the main form of electronic communication. Not being allowed to use WhatsApp in some countries is as punishing as not being allowed to use the telephone system in America.

WHAT’S WRONG WITH SOCIAL CREDIT, ANYWAY?

Nobody likes antisocial, violent, rude, unhealthy, reckless, selfish, or deadbeat behavior. What’s wrong with using new technology to encourage everyone to behave?

The most disturbing attribute of a social credit system is not that it’s invasive, but that it’s extralegal. Crimes are punished outside the legal system, which means no presumption of innocence, no legal representation, no judge, no jury, and often no appeal. In other words, it’s an alternative legal system where the accused have fewer rights.

Social credit systems are an end-run around the pesky complications of the legal system. Unlike China’s government policy, the social credit system emerging in the U.S. is enforced by private companies. If the public objects to how these laws are enforced, it can’t elect new rule-makers.

An increasing number of societal “privileges” related to transportation, accommodations, communications, and the rates we pay for services (like insurance) are either controlled by technology companies or affected by how we use technology services. And Silicon Valley’s rules for being allowed to use their services are getting stricter.

If current trends hold, it’s possible that in the future a majority of misdemeanors and even some felonies will be punished not by Washington, D.C., but by Silicon Valley. It’s a slippery slope away from democracy and toward corporatocracy.

In other words, in the future, law enforcement may be determined less by the Constitution and legal code, and more by end-user license agreements.