11.10.14

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Snowden Film "Citizen Four" Reveals How He Did It; Second Leaker Involved; Files on 1.2 Million People; Snowden Vindicated

Posted: 11 Oct 2014 07:26 PM PDT

Once again I salute Edwards Snowden as an all-American hero. On second thought, make that an all-world hero.

A movie on how and why Snowden revealed NSA wiretaps is about to be released.

Showbiz reports Edward Snowden Doc Premieres: Shocking Inside Look at How He Did It.
Citizen Four is the shocking doc about Edward Snowden made by Glenn Greenwald and Laura Poitras. Just screened tonight was the two hour film which will be released by the Weinstein Company this month. It doesn't paint the Obama administration in a very good light as Snowden explains how the government has violated privacy rights on a massive scale.

Also the filmmakers clearly indicate that all roads lead to POTUS, a fairly serious accusation. There may be serious repercussions.

Then there's the Hollywoodization of Snowden. The detail of how and why Snowden went about this is pretty surprising considering how the 29 year old former NSA employee says he wants his own privacy and not to be a celebrity. It's instructive to see his evolution from eyeglass wearing nerd to contact lenses and moussed up hair sporting hero of his own thriller. It's all very Tom Cruise. Even the beautiful girlfriend sets up housekeeping with him in Moscow. Nevertheless as the details of the NSA's programs are revealed Snowden says, "This isn't science fiction. It's really happening."
Snowden Vindicated

Let's turn to where it all started: The Guardian. Snowden made his revelations to Guardian reporter Glen Greenwald.

Please consider The Guardian article Citizenfour Review – Poitras' Victorious Film Shows Snowden Vindicated.
Citizenfour must have been a maddening documentary to film. Its subject is pervasive global surveillance, an enveloping digital act that spreads without visibility, so its scenes unfold in courtrooms, hearing chambers and hotels. Yet the virtuosity of Laura Poitras, its director and architect, makes its 114 minutes crackle with the nervous energy of revelation.

At its heart, Citizenfour is the story of how Snowden's disclosures unfolded through Poitras' eyes, from the first communications Snowden sends Poitras, hinting at what is to come, until Snowden sees himself vindicated through emulation. (The film is named for a pseudonym Snowden used with Poitras.) The time before Poitras meets Snowden is symbolized by a car travelling through a pitch-black tunnel, barely illuminated by the glowing red lights on the ceiling, until sunlight bursts in when she and her colleagues Glenn Greenwald and the Guardian's Ewen MacAskill arrive in Hong Kong for their fateful encounter.

Accessibly explaining how surveillance works, and why it matters, only gets more challenging the deeper you dig into the NSA trove. At the Guardian, it consumed exhausting months' worth of background reporting, verification and endless revisions.

Since June 2013, Snowden has been a cipher to the world, often yielding paranoid reactions (Russian spy! Chinese dupe!) from people understandably curious about his motives. It may be too late to change people's minds about Snowden, at least so soon after his leaks. But the Snowden who Poitras shows – hair tousled, resisting his attempts at styling it – is determined, sincere and human.

While often portrayed as arrogant, especially by self-interested surveillance bureaucrats, Snowden tells Poitras, Greenwald and MacAskill that he wants journalists and not himself to decide what ought to be public. He is possessed with an uncanny calm as he is about to become forever targeted. Yet Snowden's eyes redden and his shoulders stoop when he grasps the burden he is placing on his family and girlfriend – with whom he is now reunited in Russia, a place in which he never intended to live.

Given the passions that the NSA disclosures have generated, it's remarkable how tempered Citizenfour comes across. Reflecting a style Poitras seems to share with Snowden, it's a quiet movie, its soundtrack a sinister digital throb, packed tight with questions about how we live freely in an unseen dragnet. One of its only boisterous moments comes when Snowden and Greenwald discuss the spirit animating both the reporting and Snowden's decision to reveal himself. Greenwald describes it as "the fearlessness and the f*ck-you".

That fearlessness attracted Snowden to Poitras, and it shows through her camera.

Citizenfour opens in US cinemas on 24 October.
Second Leaker Involved

Please note Second leaker in US intelligence, says Glenn Greenwald
The investigative journalist Glenn Greenwald has found a second leaker inside the US intelligence agencies, according to a new documentary about Edward Snowden that premiered in New York on Friday night.

Towards the end of filmmaker Laura Poitras's portrait of Snowden – titled Citizenfour, the label he used when he first contacted her – Greenwald is seen telling Snowden about a second source.

Snowden, at a meeting with Greenwald in Moscow, expresses surprise at the level of information apparently coming from this new source. Greenwald, fearing he will be overheard, writes the details on scraps of paper.

The specific information relates to the number of the people on the US government's watchlist of people under surveillance as a potential threat or as a suspect. The figure is an astonishing 1.2 million.
Edward Snowden's Girlfriend Living with Him in Moscow

The Guardian reports Edward Snowden's Girlfriend Living with Him in Moscow.
Lindsay Mills, thought to have been deserted by Snowden before NSA revelations, appears beside whistleblower in Citizenfour.

The mystery of the whereabouts of Edward Snowden's long-time girlfriend is solved in a documentary that premiered in New York on Friday night: she has been living with the national security whistleblower in Russia since July.

The surprise revelation in the documentary, filmed by Laura Poitras, upends the widespread assumption that Snowden had deserted Lindsay Mills and that she, in a fit of pique, fled Hawaii where they had been living to stay with her parents in mainland US.

Since Snowden, a former NSA contractor, outed himself last year as being behind the biggest leak in US intelligence history, Mills has remained silent, giving no interviews or any hints of her feelings on the subject of her boyfriend or his actions.

The two-hour long documentary, Citizenfour, shows Mills living in Russia with Snowden.
Greenwald and Snowden are Heroes

The NSA has 1.2 million files on "suspects". Are any of them on president Obama for flagrant violations of the US constitution?  If not, I suggest the NSA is targeting the wrong people.

I am proud to have been on the right side of this debate from day one.

I repeat my assertion Greenwald and Snowden are Heroes. Greenwald is well deserving of the Pulitzer Prize he won for breaking this story.
 
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

10.10.14

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Indianapolis Airport Unveils Roaming Customer Service Robot on Wheels; Next Big Thing in Airport Customer Relations

Posted: 10 Oct 2014 03:09 PM PDT

The ongoing effort to replace human workers with robots took an interesting turn today as Indianapolis Airport Unveils Roaming Customer Service Robot on Wheels.
A new customer service robot is now roaming around the passenger terminal of Indianapolis International Airport.

The robot was rolled out Thursday, with a staffer guiding it remotely around the baggage claim area greeting travelers and looking for anyone who needed assistance. The robot looks like a miniature Segway, but with a blue customer service shirt and an interactive iPod on top showing the employee piloting it.



Next Big Thing in Airport Customer Relations

USA Today has a video of the Friendly Indianapolis Airport Robot answering questions.

Don't worry, the robot is not out to take your customer service job. Airport official say the robot will be compliment,  not replace, human workers.  

They forgot to add ... until we get the kinks worked out.

Of course, the higher the minimum wage, the faster they will get the kinks out.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Defense Dept. to Request $30-40 Billion a Year to Fight ISIS; History Lessons

Posted: 10 Oct 2014 11:22 AM PDT

Anyone recall how the war in Iraq would pay for itself? That was the US Defense Department estimate in 2003.

Now some $3 trillion later (add in veterans' benefits, depreciation of equipment, humanitarian aid, covert action, and paying for the military efforts of our coalition 'partners' and the Total Cost of Iraq, Afghan Wars is $4-6 Trillion.

Come Hell or High Water

That $4 to $6 trillion Iraq, Afghan cost projection was made in 2013. That estimate assumed the costs would be winding down now. They won't.

On September 30, 2014 Vice President Joe Biden's pledge to get out of Afghanistan "come hell or high water by 2014" came to an abrupt halt when President Obama agreed to a deal to leave US troops in the country until 2024 "at least".

For details and an assessment of that announcement, please see "Come Hell or High Water" Promise Morphs Into "Infinity and Beyond".

How Much Will Fighting ISIS Cost?

Boston Globe writer Linda J. Bilmes asks Fighting the Islamic State — how much will it cost?.
President Obama and his military top brass have pronounced that the effort to defeat the Islamic State will be "long" — translation: expensive. The Pentagon has admitted to spending over $1 billion so far, with the current pace running at some $10 million per day. Todd Harrison of the Center for Strategic and Budgetary Assessments believes the annual bill for military operations will range from $4 billion to $22 billion, depending on duration, scope, and the extent to which ground forces get involved — which is becoming increasingly likely. Obama has ruled out sending troops, but it is clear the Pentagon has not given up on boots on the ground — they just may not be worn entirely by Americans.

Twelve months ago, the wartime culture of "endless money," as former Defense Secretary Robert Gates dubbed it, with its endless "emergency" funding from Congress (nearly $2 trillion in more than 30 special funding bills) — was finally coming to an end. The Beltway was filled with talk of belt-tightening at the Department of Defense, including a 10-year $497-billion cut imposed by the so-called sequester. The Pentagon was proposing to shrink the size of the armed forces, trim military compensation and benefits, and mothball expensive weapons and military installations left over from the Cold War.

But now that's all so-last-fiscal-year. The new trend is ramping up Pentagon spending. At their press conference last week, Defense Secretary Chuck Hagel and Martin Dempsey, the Chairman of the Joint Chiefs of Staff, declared that they don't have enough funding to conduct the operation against the Islamic State.

In addition, Congress is refusing to let the Pentagon make even modest changes to its current base benefit plan. This will surely encourage the department to ask for another blank check to pay for new operations. Requests are already mounting.

The combined cost of abandoning planned cutbacks at the Defense Department, new spending to combat the Islamic State, and extra foreign military assistance means that America will wind up spending up to $100 billion more on military activities than we had expected this year alone.

Washington assumes that we will simply borrow whatever is needed — and continue to pass the cost of today's wars onto future generations. This feckless approach has already led to much higher national debt, as well as rampant waste and corruption in our military appropriations.

Financing the Iraq and Afghanistan conflicts with debt has hidden the true costs from public view. President Obama has just asked Americans to embark on another decade-long military engagement. He needs to propose a strategy for how it should be paid for, and what sacrifices will be required.
$100 Billion More Than Expected Already This Year Alone

Todd Harrison of the Center for Strategic and Budgetary Assessments believes the bill will "range from $4 billion to $22 billion" annually, even though we are going to spend $100 billion more this year on defense than expected.

How's that work? I'll tell you how: Money is pooled into an "Overseas Contingency Operation" slush fund and spent as the department wants. Moreover, veterans' benefits, medical treatment and numerous other war costs don't show up in any war-related buckets.

New U.S. Price Tag for the War Against ISIS: $40 Billion a Year

In a 100% guaranteed to be underestimated cost analysis, the Fiscal Times reports New U.S. Price Tag for the War Against ISIS: $40 Billion a Year.
With the war against ISIS off to a rocky start, there are signs that the Obama administration is getting ready to up the ante substantially on weaponry, manpower and aid to allies – at a cost of an additional $3o billion to $40 billion a year.

Earlier, Gordon Adams, a military analyst at American University, told The Fiscal Times that the mission to stop ISIS will cost $15 billion to $20 billion annually, based on his "back of the envelope" calculations. Other analysts have made similar forecasts. But based on soundings of the defense establishment, Adams said Thursday that the Defense Department would almost certainly request funding of twice that level later this year.

"I have consummate faith that they can get to $30 billion to $40 billion a year without breaking a sweat," he added. 

The estimated $30 billion to $40 billion of new spending would come on top of the Pentagon's $496 billion fiscal 2015 operating budget for personnel and contractors and the roughly $58.6 billion in an "Overseas Contingency Operation" fund that is used to finance U.S. war operations in the Middle East.

The OCO, as it is known, has paid for the protracted U.S. military engagement in the Middle East with borrowing that adds to the long-term U.S. debt. If Adams' projections are correct, then the OCO would total as much as $80 billion to $90 billion in the coming year.

However, House Speaker John Boehner and other congressional Republican leaders are skeptical that Obama's strategy can work without substantially more resources – including more ground troops.
Iraq War: Predictions Made, and Results

Let's take a look at previous predictions, when they were made, and how accurate they were, starting with a Christian Science Monitor report Iraq War: Predictions Made, and Results.
Ahead of and shortly after the US invasion of Iraq in 2003, a number of officials, including former Defense Secretary Donald Rumsfeld and his deputy Paul Wolfowitz suggested the war could be done on the cheap and that it would largely pay for itself. In October 2003, Rumsfeld told a press conference about President Bush's request for $21 billion for Iraq and Afghan reconstruction that "the $20 billion the president requested is not intended to cover all of Iraq's needs. The bulk of the funds for Iraq's reconstruction will come from Iraqis -- from oil revenues, recovered assets, international trade, direct foreign investment, as well as some contributions we've already received and hope to receive from the international community."

In March 2003, Mr. Wolfowitz told Congress that "we're really dealing with a country that could finance its own reconstruction." In April 2003, the Pentagon said the war would cost about $2 billion a month, and in July of that year Rumsfeld increased that estimate to $4 billion.
I believe we all know how that turned out.

Lost Cause

On July 24, 2010 I wrote Afghanistan is a "Lost Cause"; Leaked Documents Show Futility of Afghanistan War
The questions on my mind are: How many trillions of dollars do we have to spend, how many lives need to be wasted, and how much longer are we going to be involved in the boondoggle known as Afghanistan?
The total amount of the waste and lives lost is unknown, but we now have an answer to my 2010 question: "how much longer are we going to be involved in the boondoggle known as Afghanistan?".

The unfortunate answer is "until 2024 at least".

How much will fighting ISIS it really cost? No one can answer that now, but a safe starting point for discussion is somewhere between 10 and 100 times initial projections.

Time for Self Assessment

In Iraq Splinters Into Pieces, Al Qaeda in Control of Several Cities, Kurds Take Oil City Kirkuk; Thank George Bush and the Neocons; Iraq Before and After I held the Bush Administration largely responsible for this mess.

Sure, president Obama made many mistakes but the initial, most damning mistake was the Iraq invasion and the overthrow of Saddam Hussein.

In a follow-up post, Assessing the Blame for Iraq: Bush, Obama, McCain, Others; Iraq Sunken Costs I asked for self-assessment.

Time for Self Assessment

I can and do blame Obama for countless things. But Republicans would be very wise to self-assess on Iraq, on nation building, and on warmongering in general.

Instead of self-assessment, warmongers want more war.

Deficit-Hawk Hypocrites

As is always the case, John McCain leads the war rally cry in the Senate.  In the House, Speaker John Boehner Says U.S. may have 'no choice' on combat troops.

Not once have these Republican deficit-hawk hypocrites said how they propose to pay for this. Not once has McCain ever placed the blame for ISIS where it belongs.

ISIS a U.S. Creation

ISIS is 100% a US creation. ISIS arose following inane US nation-building policies starting with the absurd belief the "Iraq war would pay for itself.

This self-made mess produced Strange Bedfellows: To Fight ISIS, US Now Supports Iranian Revolutionary Guard, Other Terror Groups.

I concluded "Strange Bedfellows" with a warning "Just remember ... To make matters worse, you have to begin somewhere."

History Lesson

I conclude this post with another history lesson: "No mess is ever so big that it cannot be made worse by throwing more money at it."

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

9.10.14

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Panic Over Ebola: Airline Strikes, Banned Flights, Experimental Drugs

Posted: 09 Oct 2014 01:45 PM PDT

Ebola Epidemic Spreads

Panic is in the air in some places over the deadly ebola virus. Is the panic justified? Is there any cure? How deadly is ebola compared to other viruses? How many have died so far? What can be done to stop the spread?

Let's take a look at these questions starting with the number of deaths.

In Ebola Epidemic Spreads – In Pictures The Guardian reports "The Ebola epidemic has killed more than 3,700 people in west Africa. Dozens of British military personnel are due to fly to Sierra Leone next week to help build medical facilities to combat the epidemic."

First US Patient Dies

More Fears, More Measures as First Patient Diagnosed in the U.S. Dies
Thomas Eric Duncan, the first person diagnosed with Ebola in the United States, died Wednesday, 10 days after he was admitted to a Texas hospital. His family wonders if the outcome would have been different if doctors had admitted Duncan to a hospital on September 25, the first time he showed up with a fever and stomach pain.
Quarantine Stations, Ebola Questions, and Thermometers

At major US airports, Quarantine Stations, Ebola Questions, and Thermometers Coming.
Anyone traveling from ebola hotspots in Africa, Guinea, Liberia, and Sierra Leone, to select US airports will get special screening and have their temperatures. The five airports are: New York's JFK, Washington Dulles, Newark, Chicago O'Hare and Atlanta international airports.

Given the virus can incubate for up to 21 days, it is questionable how much good taking temperatures will do. Screening would not have saved the life of Thomas Eric Duncan who did not show any symptoms for days after his arrival.
Majority Want Flights Banned From Ebola Countries

An NBC survey shows Majority of Americans Want Flights Banned From Ebola Countries.
A majority of Americans support banning all flights to the United States from countries experiencing an Ebola outbreak, an exclusive NBC News online survey reveals.

The survey, which was conducted by SurveyMonkey and then weighted for age, race, sex, education and region to match U.S. Census data, found that 58 percent of Americans want a ban on incoming flights from West African countries hardest hit by the virus, such as Liberia, Guinea, and Sierra Leone. Twenty percent of respondents opposed a travel ban, and the rest said they didn't know.
La Guardia Airport Cleaners On Strike

The Financial Times reports Airline Cabin Cleaners Strike Over Ebola Fears.
Up to 200 airline cabin cleaners were expected to strike on Thursday over concerns that they might be exposed to Ebola as US authorities try to contain alarm over the virus.

Cabin cleaners who work for Air Serv walked off their shifts at La Guardia airport, according to union representatives, the day after the US said it would step up health screenings of air travellers in the coming days.

La Guardia does not receive international flights, but a union official said workers were worried about international travellers arriving at the airport via domestic flights.
Elboa Treatment

The Financial Times reports Chinese Company Develops Ebola Treatment.
One of China's leading generic pharmaceutical companies has purchased the rights to commercialise an experimental drug developed by the Chinese military for treating Ebola, though medical experts said the drug is still at an early stage of development.

The new drug is one of 15 or so experimental medicines that have shown some success against the Ebola virus, which has killed nearly 4,000 in west Africa, in laboratories tests with cell cultures and animals around the world. In addition, a dozen vaccines to prevent infection are being evaluated for safety and efficacy.

The World Health Organisation is working with international partners to fast-track the most promising treatments into clinical trials in the worst affected countries of Liberia, Sierra Leone and Guinea, though details of the trial procedures and the pharmaceuticals to be tested are not yet known.

"The news that Sihuan is commercialising jk-05 could speed up its timetable to be used in Africa but I still don't think it could be available within six months," said Yang Zhanqiu from the Institute of Medical Virology, School of Medicine, Wuhan University.

"China has no live Ebola virus to be researched on and it is forbidden to import live viruses to China for research. What the Chinese scientists are doing is based not on the live virus but on a cloned virus based on the gene sequence available from GenBank (a public database)", he said.

George Baeder, an expert on the Chinese pharmaceuticals market, said: "Under typical circumstances, simply getting the drug into clinical trials and through registration – even if fast -racked by CFDA and even if it aims only at Chinese local approval – would normally take a minimum of five years."
How Deadly is Ebola?

With fear and hype spreading, let's take a step back with a basic question: Just how deadly is the virus, where will the outbreak spread to next – and how can it be stopped?
The world is facing an unprecedented outbreak of the Ebola virus, with more than 3,400 deaths so far and an estimated five new cases being reported every hour in Sierra Leone. Infections and potential cases have now been reported as far afield as the Australia, Spain and the US – which this week also suffered its first death.

But as the Government resists calls for major British airports to follow the American lead and start screening incoming passengers for the disease, just what are the risks to Britain, West Africa and the rest of the world?

Just how deadly is the Ebola virus?

The strain of the Ebola virus involved in the current outbreak in West Africa has a mortality rate of 50 per cent – though rates for the outbreaks since 1976 have varied from 20 to 90 per cent.

Since then, we have developed strategies of barrier nursing, quarantine, protective equipment and contact tracing – and we know that these are enough to contain outbreaks if they are employed early enough.

That's because of the way Ebola is spread. Though highly contagious if it is given the chance to enter the body, it can only do so through the direct transferral of bodily fluids such as vomit, sweat or blood – making it much easier to contain than air-borne viruses like avian flu.

The reason the current outbreak has become so vast is simple – it was left unchecked for at least three months before being reported to the World Health Organisation.

The fact that it has been allowed to get a major foothold in West Africa – sprouting up in countries without the medical infrastructure to deal with it – is the reason it has become such a deadly prospect there.

Dr Edward Wright, a senior lecturer in Medical Microbiology at the University of Westminster who has been working to develop harmless versions of viruses like Ebola for the past 10 years, admits that "we have no experience of dealing with anything like this before".

But there is no risk of something similar happening in the UK, Europe, the US or anywhere where systems of isolation and treatment are more established and – now – alert to the danger.

Deadliest Viruses



But while we can be confident about stopping outbreaks outside West Africa, Dr Wright says the disease has likely got beyond the point where traditional strategies alone can stop the virus in the affected region – and that's where vaccines and drugs come in.

Dr Wright is one of a number of scientists around the world working on producing a drug that can provide antibodies to help fight the disease, similar to the ZMapp treatment already being used in a limited number of cases.

Ultimately, the only way to stop Ebola cases emerging around the world is to tackle it at source in West Africa. Britain has just sent around 750 soldiers and officials to help bolster the infrastructure required – and Dr Wright says "feet on the ground" is probably the best way we can help tackle the disease right now.
Fears Overstated

While the disease is serious, the above article suggests risk in the US of a viral spread as happened in Africa is very unlikely.

Focus on ZMapp

Finally, please consider Experimental Drug Likely Saved Ebola Patients
On Thursday, Dr. Kent Brantly thought he was going to die. It was the ninth day since the American missionary worker came down sick with Ebola in Liberia. His condition worsening by the minute, Brantly called his wife to say goodbye. Thankfully, the call was premature.

Brantly is back on his feet -- literally -- after receiving a last-ditch, highly experimental drug. [Nancy Writebol] Another American missionary with Ebola got the same.

The experimental drug, known as ZMapp, was developed by the biotech firm Mapp Biopharmaceutical Inc., which is based in San Diego. The patients were told that the treatment had never been tried before in a human being but had shown promise in small experiments with monkeys.

According to company documents, four monkeys infected with Ebola survived after being given the therapy within 24 hours after infection. Two of four other monkeys that started therapy within 48 hours after infection also survived. One monkey that was not treated died within five days of exposure to the virus.

Brantly and Writebol were aware of the risk of taking a new, little-understood treatment and gave informed consent, according to two sources familiar with the care of the missionary workers. In the monkeys, the experimental serum had been given within 48 hours of infection. Brantly didn't receive it until he'd been sick for nine days.

The Ebola virus causes viral hemorrhagic fever, which refers to a group of viruses that affect multiple organ systems in the body and are often accompanied by bleeding.

Early symptoms include sudden onset of fever, weakness, muscle pain, headaches and a sore throat. They later progress to vomiting, diarrhea, impaired kidney and liver function -- and sometimes internal and external bleeding.

Brantly asked that Writebol be given the first dose because he was younger and he thought he had a better chance of fighting it, and she agreed. However, as the first vial was still thawing, Brantly's condition took a sudden turn for the worse.

Brantly began to deteriorate and developed labored breathing. He told his doctors he thought he was dying, according to a source with firsthand knowledge of the situation.

Knowing his dose was still frozen, Brantly asked if he could have Writebol's now-thawed medication. It was brought to his room and administered through an IV. Within an hour of receiving the medication, Brantly's condition dramatically improved. He began breathing easier; the rash over his trunk faded away. One of his doctors described the events as "miraculous."

By the next morning, Brantly was able to take a shower on his own before getting on a specially designed Gulfstream air ambulance jet to be evacuated to the United States.

Writebol also received a vial of the medication. Her response was not as remarkable, according to sources familiar with the treatment. However, doctors on Sunday administered Writebol a second dose of the medication, which resulted in significant improvement.
Good Enough For me

The above results are good enough for me.

This is not a case where someone might take a drug and die from it. This is a case if nothing is done, the patient will die.

Nonetheless, World Health Organization spokesman Gregory Hartl cautioned that health authorities "cannot start using untested drugs in the middle of an outbreak, for various reasons."

"As doctors, trying an untested drug on patients is a very difficult choice since our first priority is to do no harm, and we would not be sure that the experimental treatment would do more harm than good."

That view, while arguably reasonable in some cases, seems preposterous in the case at hand, especially given the success rate in monkeys.

Ultimately there must be human trials. What better tests can there actually be than from willing participants who are on the deathbed?

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Police State USA: Civil Forfeiture Under Presumption of Guilt

Posted: 09 Oct 2014 11:17 AM PDT

Where in the world can police confiscate your money and your property, not charge you with any crime, then tell you there is absolutely nothing you can do about it?

The answer, which you may not have known (but might have guessed from the title), is none other than the USA, where people mistakenly presume the law says innocent until proven guilty.

Legalized Robbery

In a report called Stop and Seize, the Washington Post details how aggressive police take hundreds of millions of dollars from motorists not charged with crimes.

The Washington Post noted there have been 61,998 cash seizures made on highways and elsewhere since 9/11 without search warrants or indictments. Law enforcement agencies confiscated more than $2.5 billion. Half of the seizures were below $8,800. Here are a few examples.

  • A 55-year-old Chinese American restaurateur from Georgia was pulled over for minor speeding on Interstate 10 in Alabama and detained for nearly two hours. He was carrying $75,000 raised from relatives to buy a Chinese restaurant in Lake Charles, La. He got back his money 10 months later but only after spending thousands of dollars on a lawyer and losing out on the restaurant deal.
  • A 40-year-old Hispanic carpenter from New Jersey was stopped on Interstate 95 in Virginia for having tinted windows. Police said he appeared nervous and consented to a search. They took $18,000 that he said was meant to buy a used car. He had to hire a lawyer to get back his money.
  • Mandrel Stuart, a 35-year-old African American owner of a small barbecue restaurant in Staunton, Va., was stunned when police took $17,550 from him during a stop in 2012 for a minor traffic infraction on Interstate 66 in Fairfax. He rejected a settlement with the government for half of his money and demanded a jury trial. He eventually got his money back but lost his business because he didn't have the cash to pay his overhead.

John Oliver on Civil Forfeiture

The above examples are outrageous, but the following one detailed by John Oliver is far worse.



Matt Lee, from Lake Station, Michigan was driving to California with $2,400 in cash his dad lent him to start a new business. In a routine traffic ticket pullover, police asked Lee if he was carrying any money. Lee told the police he had $2,400 from his dad and the police promptly confiscated the money.

The police officer told Lee "I have concluded my investigation and am keeping the money because you are traveling to California to buy drugs."

It is incredible to believe someone would travel all the way from Michigan to California to buy a mere $2,400 in drugs. Yet, that was the conclusion of the officer.

It is amazing, and scary, that this happens in the US.

But it happens all the time. "Everyday I do this. It's all I do for a living. It's drug interdiction and I get money," said the Nevada police officer.

Let's describe Civil Forfeiture as it really is: Police State USA in which police act as judge and jury, with a presumption of guilt, and steal what they want for their own benefit.

Traveling to the USA?  CBC news in Canada explicitly advises of the American shakedown: Police won't charge you, but they'll grab your money.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

8.10.14

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


RoboTrucks from Mercedes-Benz to Hit US Highways Within 10 Years; Mish Supply Chain Proposal

Posted: 08 Oct 2014 06:55 PM PDT

Mercedes-Benz has announced "Future Truck 2025″, a self-driving truck that it expects to be on the streets by that date. I expect sooner and will give my reasons in just a bit.

First, please consider Mercedes Is Making a Self-Driving Semi to Change the Future of Shipping by Wired.Com.
The latest truck concept from Mercedes-Benz doesn't look like anything crazy. Its design is a bit unusual, and it's loaded up with LEDs instead of headlights and cameras instead of side mirrors. But those modest tweaks to conventional design hide the fact that this is a serious bid to revolutionize the trucking industry. That's because the "Future Truck 2025″ drives itself. And while it's a prototype, Mercedes is serious about spending the next decade getting it—and us—ready for commercial use.

Autonomous driving is nothing new for trucks in agricultural and military applications, and should be available for passenger cars by 2020. But trucks that share our highways are tempting candidates for shedding their human component: Highway driving is easy for computers but dangerous for us, especially when big machines are involved. In 2012, according to NHTSA, 333,000 large trucks were in crashes in the US. Those accidents killed nearly 4,000 people, the vast majority of whom were riding in passenger vehicles. Regulators have trouble ensuring that drivers get adequate rest, and the trucking industry has fought back against regulation.

With the idea that humans who drive less cause less trouble, Mercedes equipped the Future Truck 2025 with the "Highway Pilot" automated system. "It never gets tired. It's always 100 percent and sharp. It's never angry; it's never distracted," says Dr. Wolfgang Bernhard, the Daimler board member for trucks and buses. "So this is a much safer system."

For an autonomous system, highway driving is far easier than navigating cities. There are no cyclists or pedestrians to watch out for, speeds are steady, and turns are minimal. The "Highway Pilot" system combines several established technologies that will maintain lane position and following distance using cameras and radar. The sensors have been fitted to provide full coverage of the truck's surroundings, and the assistance systems are linked.

The big addition vehicle-to-vehicle communication technology connecting the truck to other cars on the road, providing their exact locations and speeds. The truck doesn't need this data to drive autonomously, but it's helpful for things like moving aside for emergency vehicles or detecting stopped vehicles up ahead.

In the Future Truck, which Mercedes unveiled at a commercial vehicle conference last month, the driver becomes a "transport manager." He gets the truck onto the highway and merges into traffic. At 50 mph, he's prompted to activate the "Highway Pilot" and relax.
Time Flies Faster Than Expected

Mercedes-Benz calls the project "Future Truck 2025″. I confidently predict much sooner.

Wired states "Autonomous driving is nothing new for trucks in agricultural and military applications, and should be available for passenger cars by 2020."

The primary benefit to autonomous cars is elimination of the taxi driver. Otherwise, who wants to pay the cost of all the radar, mirrors, etc.?

I am sure such costs will come down over time because price of technology is the one thing the Fed and governments have the least influence over.

But where's the payback?

The primary payback is cost elimination. And where is that? It's in delivery. Delivery of pizzas, transporting people, and transporting trucks.

When it comes to pizza, costs dictate that mini-drone helicopters will win out over  autonomous cars. For delivering people to destinations,  autonomous taxis are in order.

But the biggest cost efficiency is in trucks.

Truck drivers make $40,000 to $80,000 a year. You can buy a lot of radar, cameras, and other driving technology for that price.

Wired says the driver will get the truck onto the highway , then at 50 mph, activate the "Highway Pilot" and relax. I suggest not quite.

Mish Supply Chain Proposal

  1. A paid driver will drive a loaded truck to a trucking hub near an expressway.
  2. The autonomous robo-driver will drive the truck to a trucking hub exit spot on an expressway or major highway near the final destination point.
  3. A paid driver will navigate city traffic and take the truck to its final destination, unload the truck, then return the truck to the closest expressway trucking hub.
  4. The autonomous robo-driver will drive the truck to its next pickup location on some other expressway where a paid driver takes over, driving the truck to its loading point. 
  5. Drivers report to the hub in their own vehicle. They only get paid to drive truck between the hub and local destinations.

The advantages of the above scheme are obvious as well as bullet-proof. All the miles truck drivers drive on expressways will soon vanish. Truck hubs will form near every major city and every major roadway.

At most, trucking jobs will consist of  driving trucks from hubs to final destinations and from final destinations back to the hubs.

Eventually, but it may take a lot more time, technology will be good enough to eliminate drivers altogether.

Regardless, truck driver jobs, as we know them now, will soon vanish .

For pizza delivery and bank services, please consider What Will Your Bank Look Like 5 Years From Now? How Will Pizzas Be Delivered? Do You Tip a Drone?

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

New Home Prices: Are they Really Up this Year? Homebuilder Freebies: Reduced Closing Costs, Free Pools; Housing Has Peaked This Cycle

Posted: 08 Oct 2014 01:30 PM PDT

Thanks to ultra-low interest rates, massive all-cash purchases by private equity funds, and Fed-sponsored financial speculation, home prices are now back in bubble territory.

Yet, builders that had an easy time of things for a few years now offer Freebies as U.S. Housing Markets Cool.
Joseph Beben wasn't in the market for a house until he heard about a year-old community in suburban Phoenix where 10 homebuilders are offering buyers incentives such as swimming pools, built-in barbecues and subsidized mortgage rates.

Beben, a 33-year-old general manager at Best Buy Co. (BBY), visited three of the sales offices flanking the main corridor of The Bridges at Gilbert, whose 17 subdivisions are among the about 200 locally that have opened since early last year. He settled on Woodside Homes' community within The Bridges after the builder agreed to cover as much as $10,000 of his closing costs, and throw in another extra he liked.

"When I saw this deal, it looked like a good business decision," said Beben, who will pay $332,000 for a 3,000-square-foot.
Not a Business Decision at All

It may, or may not turn out to be a good speculative move, but Beben is seriously misguided if he equates personal decisions as "business decisions" unless asset speculation is his business (which it clearly isn't).

Major City Sales Slowdown
"Phoenix is very slow, Sacramento is spotty," said John Burns, a housing consultant based in Irvine, California. "The investors came in and pushed prices a little too high. And then FHA rocked the new-home market really hard."

"Phoenix is a cautionary tale about raising prices too aggressively and opening up communities too aggressively," said Alex Barron, senior research analyst at Housing Research Center LLC in El Paso, Texas. "It's a bad combination where affordability got out of control and the FHA limit went down. Homes are unaffordable now, and all of a sudden there's a ton of supply."
FHA Reduced Limits
In January, the federal government, which is reducing its share of the mortgage market to lure back private capital, cut FHA loan sizes in 652 high-cost U.S. counties. In Phoenix, the limit dropped to $271,050 -- about $24,000 below the median prices of a new home -- from the previous maximum of $346,250. The limit shrunk by 28 percent in the Las Vegas region, and 18 percent in the Sacramento area.

"We were having a nice robust recovery and then that happened," said Buddy Satterfield, president of the Arizona division for Shea Homes, which has two communities in The Bridges and is opening one in Eastmark. "When you take the FHA limit down to $271,000, you hit us right in our sweet spot."

After jumping 32 percent in 2013, new-home sales in the Las Vegas area in the first eight months of this year fell 26 percent from a year earlier, he said. Smith said he recently spoke with a builder who lost a sale in the Las Vegas area to a competitor who cut the price by $17,000 and covered closing costs.

"It's a big adjustment," Smith said. "It's hard for builders to cut their pace when they've been trying to rejuvenate their numbers over the past five years."

In Phoenix, the supply increased 26 percent. Existing-home prices in the area rose 4.4 percent in August from a year earlier, compared with an increase of 6.4 percent nationally, property-information provider CoreLogic Inc. (CLGX) reported today.
Housing Has Peaked This Cycle

Supposedly, prices are up 4.4% from a year ago in Phoenix and over 6% nationally.

I have a question: Does that include reduced closing costs, free barbecues, and free $20,000 pools?

Downturns start with rising building inventory, competition, and freebies that do not immediately show up as price reductions.

I think this rebound in new home prices has peaked nationally even if  prices purportedly show nominal price increases for a while. 

In Beben's case, he got $10,000 off on closing costs and $22,000 towards a swimming pool pool according to Re/Max Solutions agent Tim Ehlen.

That's $32,000 off a home that would have sold last year for $364,000, a decline of 8.8%.

Taking freebees into consideration, it's safe to conclude new home prices in Phoenix are not up 4.4% on the year as reported. I suggest prices are likely down somewhere between 5% and 10%.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

IMF Warns of Financial Crisis, Admits Low Interest Rates Spurred Asset Speculation Not Investment

Posted: 08 Oct 2014 12:19 PM PDT

The IMF finally had a "duh" moment in what should have been obvious years ago. The IMF finally realizes that almost zero borrowing costs has encouraged speculation rather than  a hoped-for pick up in investment.

Now, the IMF warns period of ultra-low interest rates poses fresh financial crisis threat.
The Washington-based IMF said that more than half a decade in which official borrowing costs have been close to zero had encouraged speculation rather than the hoped-for pick up in investment.

In its half-yearly global financial stability report, it said the risks to stability no longer came from the traditional banks but from the so-called shadow banking system – institutions such as hedge funds, money market funds and investment banks that do not take deposits from the public.

José Viñals, the IMF's financial counsellor, said: "Policymakers are facing a new global imbalance: not enough economic risk-taking in support of growth, but increasing excesses in financial risk-taking posing stability challenges."

Viñals said the IMF had analysed 300 large banks in advanced economies, making up the bulk of their banking system. It found that institutions representing almost 40% of total assets lacked the financial muscle to supply adequate credit in support of the recovery. In the eurozone, this proportion rose to about 70%.

"And risks are shifting to the shadow banking system in the form of rising market and liquidity risks," Viñals said. "If left unaddressed, these risks could compromise global financial stability."
IMF Wants More Regulation

Amusingly, the IMF concludes "The best way to safeguard financial stability and improve the balance between economic and financial risk taking is to put in place policies that enhance the transmission of monetary policy to the real economy – thus promoting economic risk taking – and address financial excesses through well-designed macroprudential measures."

The IMF wants tougher supervision of banks, requirements on them to hold more capital, and curbs on lending to specific sectors such as housing.

Curiously, low interest rates were the problem but the solution is low interest rates and more macro controls including "policies that enhance the transmission of monetary policy to the real economy – thus promoting economic risk taking".

It's a financial axiom that central banks can make money available and set the rates, but they cannot dictate were it goes. Yet, the IMF just now seems to be figuring that out.

As for central bank sponsored "risk taking", haven't we seen enough already?

Where the Money Went

  1. Junk bond speculation
  2. Stock market speculation
  3. Stock market buybacks at ludicrous prices
  4. Robots in lieu of hiring
  5. Free profit for banks thanks to interest on "excess reserves"
  6. Private equity firms buying up houses
  7. In Europe, banks loaded up on their own allegedly risk-free bonds
  8. In China, property bubbles and profitless SOEs

Where the Money Didn't Go

  1. Higher wages
  2. Infrastructure
  3. Investment

What Now?

Not only was the IMF late in figuring out central banks did little but encourage asset speculation, it remains clueless in regards to what to do about it.

Curiously, the IMF argues for raising the VAT in Europe which will take money out of the hands of people who will spend it. The IMF also has concerns about price deflation when the whole world could use lower prices.

The IMF still has not figured out it is asset deflation and speculative loans made on assets that is the problem, not price deflation on consumer goods.

To get money to flow where it perceives best, the IMF wants more regulation over what projects banks can or cannot lend to.

Want efficient allocation of capital? Then how about trying a free market in goods and services with a free market in interest rates as well?

Instead, the IMF proposes more central intervention as the solution. The IMF's proposal is economic stupidity at its finest.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

7.10.14

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Early Elections in Greece Increasingly Likely, So Is Grexit; Promises, Promises

Posted: 07 Oct 2014 07:10 PM PDT

Talk is in the air, but it's not to the liking of eurozone Nannycrats. Please consider Idiosyncratic Risk Looms For Greek Assets, Citi Says.
Citi Research said in a note today that: "Possible deadlock in the early-2015 vote among MPs to choose the next Greek President could trigger early national parliamentary elections in Greece in spring 2015, in our view, with a distinct possibility that the next government will be led by the opposition, anti-bailout party Syriza."

Syriza has gained seats in the European Parliament, with one more than the ruling New Democracy party of Prime Minister Antonis Samaras. Syriza's leader, Alexis Tsipras, has campaigned against budget cuts tied to Greece's 240 billion euro ($303 billion) bailout from the International Monetary fund and Euro area. Tsipras and Syriza have been calling for immediate national elections since May.
Syriza's Leader Could Win the Next Election

The Economist spells things out a bit more clearly in Syriza's Leader Could Win the Next Election.
Talk of an early general election is in the air: New Democracy and the PanHellenic Socialist Movement need 180 votes in parliament next February to choose a new president to replace the incumbent, Karolos Papoulias, who is retiring from politics. With only 154 lawmakers between them, it will be a struggle to round up the extra votes from a pool of fractious independents and moderate left-wingers. If they fail, an early general election will be held. Mr Tsipras is in pole position to win.

Three recent opinion polls showed Syriza's lead over New Democracy widening to up to five percentage points, which, if replicated at a general election, would leave Syriza just ten seats short of a parliamentary majority. One of the latest polls, published on September 27th, shocked the government: it gave Syriza a lead of 11 percentage points over New Democracy.

Mr Tsipras is no longer pledging to rip up Greece's bail-out agreement, yet many are still suspicious of his new €11 billion ($14 billion) tax-and-spend economic programme. It calls, among other things, for restoring the minimum monthly salary to €750 (about 60% higher than the average salary now being paid by cash-strapped private employers), cracking down on tax evasion, creating 300,000 new jobs and restoring Christmas bonuses for pensioners. "It's much too good to be true," sighed Koula Peristeri, an unemployed factory worker who nonetheless supports Syriza.

Antonis Samaras, the centre-right prime minister, has riposted with his own promises. Next year's budget will include tax breaks for hard-pressed households, including cuts in levies on property and heating fuel. There is even talk of reducing the corporate tax rate from 26% to 20%.

Mr Samaras would like to go further but he is constrained by the "troika" of bail-out monitors from the EU, the European Central Bank and IMF.
Promises Cannot Be Met

Both parties are making promises they cannot keep. There is no realistic way Samaras can keep his promises. If he could, he would have already.

And there is no realistic way for Tsipras to raise salaries by 60%. But that is precisely what people want to believe.

People Have Had Enough

The important factor is people have had enough, and when they have, the tendency is to vote out politicians who did not keep promises for the next set of leaders who also are 100% guaranteed to break promises.

Thus, if there is an early election, and that seems increasingly likely, Tsipras will win.

If so, please bear in mind that Greek Elections Rules are such that the overall winner, even by a slight plurality, gets an extra 50 seats in parliament. The law helps the party or coalition that wins a plurality to achieve an absolute majority (151 out of 300 parliamentary seats).

That is how Samaras came to rule, and it will be how Tsipras will come to rule unless early elections do not happen.

Primary Account Surplus

There are questions over accounting, but Greek Budget Records 1.2B Euro Primary Surplus in Jan-May‏.

A primary surplus is quite important. It means that Greece no longer needs external funding to pay its bills. Excluding the debt repayment program, Greece's primary surplus totaled 1.6 billion euros.

If accurate, and sustainable, Greece is actually in a position to tell the Troika "Go to Hell" declaring all debt repayment null and void.  Yet to do that, Greece would have to abandon the euro and put up with God knows what in sanction retaliations.

If Tsipras chooses that path, there is no way for salaries to rise 60% with the account surplus intact.

Which Promises will Tsipras Keep?

  1. Keep Greece on the Euro.
  2. Raise Pay by 60%.
  3. None of the Above.

I vote for door number 3. Time will tell.

Meanwhile, I have a musical tribute for the upcoming election.

Promises, Promises



Link if video does not play: Dionne Warwick - Promises, Promises

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

ISIS Waves Black Flags of Victory Over Kobani; US Strategy in Ruins; Where Does ISIS Get Funding?

Posted: 07 Oct 2014 12:21 PM PDT

Those looking for proof that massive US bombing missions in Syria cannot stop ISIS now have it. Highlighting the complete failure of US containment policy, Isis Set to Take Syrian Town of Kobani.
Warplanes dropped huge payloads on their positions and determined, battle-hardened Kurdish fighters fiercely stood their ground. But the fighters of the Islamic State of Iraq and the Levant (Isis) still managed to win territory and hoist their signature black flag atop buildings and hills in the battle for the town of Kobani.


The city, which once had a population of 200,000 and was surrounded by villages inhabited by perhaps the same number, was all but deserted by Tuesday morning, according to the Syrian Observatory for Human Rights.

"There's no co-ordination between the US and the Kurdish forces on the ground. The US air strikes are not helping that much," he [Wladimir Van Wilgenburg, an analyst at the Jamestown Foundation think-tank, based in Iraqi Kurdistan] said.

Political disputes that plague the anti-Isis coalition have hampered the war effort in Kobani. The US listing of Turkey's Kurdistan Workers' Party (PKK) as a terrorist organisation has complicated communications between forces. Syrian Kurds affiliated with the PKK have pleaded with Turkey to allow them to move their military vehicles from their Rojava enclave through southern Turkey to Kobani but have been rebuffed.

"For us, the PKK is the same as Isil (Isis). It is wrong to consider them as different from each other," Turkish president Recep Tayyip Erdogan said this week.
Kurds Fighting ISIS Same as ISIS

Supposedly, Kurds fighting ISIS are the same as ISIS. Meanwhile the US trains moderates that are ISIS or will hand their weapons over to ISIS.

Moreover, instead of bombing ISIS tanks or ISIS-held refineries the US Bombed the Wrong Syrian Refineries, owned by civilians.

US Strategy in Ruins

The Independent reports Isis on Verge of Victory in Kobani as US Strategy Lies in Ruins.
Kurdish militiamen are battling to stop Isis capturing Kobani, but a Kurdish spokesman in the city was quoted as saying that the town "will certainly fall soon". Fighting has reached the eastern outskirts of Kobani where Isis fighters raised their black flag over one building at the entrance to the town.

The battle for Kobani has united Kurds across the region who see it as their version of the battle of Thermopylae, with their heroic soldiers fighting to the end against Isis forces superior in numbers and armed with heavier weapons.

Isis is using tanks and artillery it seized from the Iraqi and Syrian armies when it overran their bases during the summer.
Are Tanks Invisible?

Apparently tanks and artillery are invisible to US planes. No matter, bombing the wrong refineries is much easier.

Turkey Willing to Sacrifice Kurds

Moving right along, the politics of this war gets messier and messier.
President Bashar al-Assad withdrew his forces from these enclaves earlier in the war, leaving them in the hands of the Democratic Unity Party (PYD) whose militia is the YPG. Both are effectively the Syrian branch of the PKK that has been fighting for Kurdish self-rule in Turkey since 1984.

The long-running peace process between the PKK  and the Turkish government could be one casualty of  the fall of Kobani. Turkish forces have done nothing to help the Syrian Kurds hold the town and there is no sign of powerful Turkish military forces along the border intervening.

The leader of the PYD, Salih Muslim, is reported to have met officials from Turkish military intelligence to plead for aid but was told this would only be available if the Syrian Kurds abandoned their claim for self-determination, gave up their self-governing cantons, and agreed to a Turkish buffer zone inside Syria. Mr Muslim turned down the demands and returned to Kobani.
Vice President Biden Complains
[US Vice-President Joe Biden] told a meeting at Harvard University's Institute of Politics on 2 October that the Turks, Saudis and UAE "poured hundreds of millions of dollars and tens of thousands of tons of weapons against anyone who would fight Assad, except that the people who were being supplied were al-Nusra and al-Qaeda and the extremist element of jihadis coming from other parts of the world."
Hmm. Didn't the US do the same?

Where Does Isis Get Its Money?

Let's wrap up the discussion with a look at ISIS funding. Initially ISIS received money from our alleged ally Saudi Arabia as well as Sunni religious groups.

Syrian president Assad receives aid from Iran. Assad and Iran are both enemies although both want to stop ISIS.

Currently, ISIS gets most of its money from refined oil that it controls.

The Oil Connection

In an interesting video-embedded article, The Guardian answers the question Where Does Isis Get Its Money?
Islamic State (Isis) is now the wealthiest militant group in the world, with a reported net worth of $2bn (£1.2bn). Where is all the cash coming from? The group has built up a fortune through a combination of oil resources and wheat production to hostage taking and extortion. Unless the international coalition can cut the flow of Isis funding, it is likely to remain a severe threat
Who's Buying ISIS Oil?

OilPrice asks Who Is Buying The Islamic State's Illegal Oil?
In June 2014, computer files captured from a courier for the Islamic State shortly after the fall of Mosul revealed that the group had assets of $875 million, largely gained in the sacking and looting of Mosul and its central bank.

The size of the group's bank account has now risen to an estimated $2 billion dollars, thanks in part to revenues from ransom paid for kidnapped foreigners and more pillaging. However, oil remains the group's primary source of income.

Reports show that IS-controlled fields in Iraq produce between 25,000 and 40,000 barrels of oil per day, at an estimated value of approximately $1.2 million, before being smuggled out to Iran, Kurdistan, Turkey and Syria.

In an interview with CNN, Luay al-Khatteeb, the director of the Iraq Energy Institute, explained that "IS smuggles the crude oil and trades it for cash and refined products, at a refined price," thanks to its own refineries in Syria.
Inane US Sanction Policy

A CNN Video explains How Iraq's black market in oil funds ISIS
"The crude is transported by tankers to Jordan via Anbar province, to Iran via Kurdistan, to Turkey via Mosul, to Syria's local market and to the Kurdistan region of Iraq, where most of it gets refined locally," Khatteeb explained. "Turkey has turned a blind eye to this and may continue to do so until they come under pressure from the West to close down oil black markets in the country's south."
Synopsis

  • Turkey turns a blind eye to ISIS-oil as well as Kurds fighting ISIS. 
  • The US will not cooperate with Assad to fight ISIS because Assad is our enemy.
  • The US Bombs the Wrong Refineries but not ISIS tanks.
  • Biden complains Turkey and Saudi Arabia backed the wrong moderates although the US also backed the wrong moderates.
  • To fight ISIS, US supports Iranian Revolutionary Guard and other terrorist groups (see Strange Bedfellows)
  • The US sponsored crippling sanctions on Iran, and inane sanctions on Russia.
  • Somehow there has been no discussion of sanctions on ISIS assets or day-to-day production of ISIS-controlled oil, from which ISIS profits $2 million a day. One has to wonder, are US oil interests getting a piece of that pie?

US foreign policy is well beyond FUBAR.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Revealing Look at Hours Worked and the Number of Employees Working Those Hours

Posted: 07 Oct 2014 01:30 AM PDT

Inquiring minds may be interested in a set of charts that show trends in hours worked. The charts are as of the latest job numbers from Friday, October 3, 2014.

Index of Aggregate Hours All Private Employees



The index of aggregate weekly hours of all employees is at a new all-time high. The data only goes back to 2007 so let's also take a look at hours worked by production and nonsupervisory employees.

Index of Aggregate Hours Production and Nonsupervisory Employees




The indexes are formulated by multiplication of the number of employees by the average number of hours worked. So let's take a look at both sub-components.

Average Weekly Hours of Production and Nonsupervisory Employees



Number of Production and Nonsupervisory Employees



More people working but for how many hours?

Employed, Usually Work Full Time



In November of 2007, there were 121,875,000 full time employees. Now there are 119,287,000.

Fulltime employment is 2,588,000 below the 2007 peak. Meanwhile working age population, 16 and older has gone up from 232,939,000 to 248,446,000. That's an increase of 15,507,000.

Simply put, the working-age population has gone up by approximately 15.5 million while fulltime employment has declined by 2.5 million.

Some of this is related to boomer demographics and retirement. A lot of it isn't.

It takes a detailed look at the number of people in each age group and how those age groups have shifted over time to normalize the data. Tim Wallace and I explored this idea once before, for the time period 2010-2013.

For details, see Fed Study Shows Drop in Participation Rate Explained by Retirement; Let's Explore that Idea, in Depth and in Pictures.

It's been nearly a year since that post, and with the job data seemingly booming, it's time for an update. I hope to have new graphs later this week or next, for the entire 2007-2014 period.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com