Washington Post Spends Thanksgiving Lamenting Over Fake News and the Russian Scare

Craig Timberg from Washington Post must be bored this Thanksgiving, spending his time concocting a rich and imaginative tale of fake news websites swaying the billion dollar Clinton campaign from no brainer win to a horrible loss. Here we are, once again, with the faux claims out of Washpo — spreading their own ironic fake news of Russian hacking conspiracies and a furious — and all of a sudden — flood of fake news websites that worked in concert to elect Donald Trump. After all, how could anyone vote for a man who’s credo was Americanism over globalism? Don’t you like cheap prices at Walmart?

To date, hard evidence of Russian interference in our elections has yet to materialize — which was at the vanguard of the democrat response to embarrassing Wikileaks revelations that painted the party as wantonly corrupt and spirit cooking depraved. Since the election results shocked the establishment elite, there has been an absolute fervor across the media, led by Obama and his shills, to place the blame for Hillary’s cosmically hilarious defeat on websites that challenge falsehoods and media cuckery . Washpo chimes in on the issue — fueled by a McCarthy era styled list of Russian propaganda websites — provided by shills at some bullshit website called ProporNot.

The flood of “fake news” this election season got support from a sophisticated Russian propaganda campaign that created and spread misleading articles online with the goal of punishing Democrat Hillary Clinton, helping Republican Donald Trump and undermining faith in American democracy, say independent researchers who tracked the operation. PropOrNot’s monitoring report, which was provided to The Washington Post in advance of its public release, identifies more than 200 websites as routine peddlers of Russian propaganda during the election season, with combined audiences of at least 15 million Americans. On Facebook, PropOrNot estimates that stories planted or promoted by the disinformation campaign were viewed more than 213 million times.  “The way that this propaganda apparatus supported Trump was equivalent to some massive amount of a media buy,” said the executive director of PropOrNot, who spoke on the condition of anonymity to avoid being targeted by Russia’s legions of skilled hackers. “It was like Russia was running a super PAC for Trump’s campaign. .?.?. It worked.”

On ProporNot’s list of websites to avoid, due to Russian propaganda risk, includes infowars.comnakedcapitalism.comwikileaks.orgzerohedge.com — amongst many others. Propornot even provides their readers with a wonderful chrome browser extension to rout out these evil sites. Instead of reading propaganda, maybe you should read Snopes instead (serious eyeroll action). If you want to continue the discussion, go head on over to their Reddit page — where another 26 people are interested in the complete shit they spew. According to recent Alexa rankings, these butthurt libtards are talking to themselves, literally, except for the moron singular shill from Washpo who wrote this absurd story. fail The quintessential picture of failure

I can sit here and claim alt-left sites like MotherJones and DailyKos are merely Chinese shills, working in concert with the Democratic Party, in an effort to elect democrats in order to  continue to pursue a brand of globalism that favors the hollowing out of America’s middle class, transferring vast amounts of wealth from here to there. In spite of the fact that everything I just said, as a matter of policy, is 100% accurate — the cucks from Daily Kos had little to do with it.

The fake news conspiracy theories being promoted by very low and disingenuous news agencies, who’ve proven to be corrupted and co-opted by the Democratic Party, is embarrassing for the 4th estate. Instead of bucking up and dealing with their short comings, the fact that no one believes their shit anymore, they’ve gone apeshit hysterical over the success of Breitbart and other conservative leaning sites — simply branding them as fake and actively working with Appnexus, Facebook and Google to demonetize them.

Welcome to the Chinafication of the American media.

Content originally generated at iBankCoin.com

Paul Craig Roberts Asks “What If Trump Fails?”

Authored by Paul Craig Roberts,

Did Donald Trump win the election because he is a racist and misogynist and so are the American people?

No. That’s BS from the Oligarchs’ well-paid whores in the media, “liberal progressive” activist groups, think tanks and universities.

Did Trump win because he stole the election?

More BS. The Oligarchs controlled the voting machines. They failed to steal the election, because the people outsmarted them and told the pollsters that they were voting for Hillary. This led to the presstitutes’ propaganda that Hillary was the certain winner, and the Oligarchs believed their own propaganda and didn’t believe it necessary to make certain of their victory.

Trump won the presidency because he spoke directly and truthfully to the American people, telling them what what they knew to be true and had never before heard from any politician:

“Our movement is about replacing a failed and corrupt political establishment with a new government controlled by you, the American people. The establishment has trillions of dollars at stake in this election. Those who control the levers of power in Washington and the global special interests they partner with, don’t have your good in mind. The political establishment that is trying to stop us is the same group responsible for our disastrous trade deals, massive illegal immigration and economic and foreign policies that have bled our country dry.


“It’s a global power structure that is responsible for the economic decisions that have robbed our working class, stripped our country of its wealth and put that money into the pockets of a handful of large corporations and political entities. The only thing that can stop this corrupt machine is you. The only force strong enough to save our country is us. The only people brave enough to vote out this corrupt establishment is you, the American people.”

Trump did not promise voters a bunch of handouts. He didn’t say he would fix this and that. He said that only the American people could fix our broken country and identified himself as an agent of the people.

The people won the election, but the Oligarchy is still there, as powerful as ever. They have already launched their attack using their whores in the media and liberal progressive groups in attempts to delegitimize Trump with protests, petitions, and endlessly false news reports. George Soros, using the money he made by his attack on the British currency, will pay thousands of protesters to attempt to disrupt the inauguration.

What about Trump’s government? As Trump discovered, finding appointees who are not part of the Oligarchy’s economic and foreign policy establishment is very difficult.

Washington is not a home for critics and dissidents. Consider Pat Buchanan, for example. As a White House official in two administrations and a two-time presidential candidate, he is experienced, but Washington has marginalized him.

Moreover, even if there were a stable of outsiders, they would be eaten alive by the insiders. Trump will have to take insiders. But he has to pick insiders who are to some extent their own person. General Michael Flynn as National Security Adviser is not a bad pick. Flynn is the former head of the Defense Intelligence Agency who advised the Obama regime against employing ISIS against Syria. Flynn has publicly stated on television that the appearance of ISIS in Syria was a “willful decision” of the Obama regime. In other words, ISIS is Washington’s agent, which is why the Obama regime has protected ISIS.

Trump’s chief of staff (Priebus) and chief strategist (Bannon) are reasonable choices.

Sessions (Attorney General) and Pompeo (CIA) are disturbing appointments based on their media-created reputations. But in the US where there is no honest media, we don’t know the truth of the reputations. Nevertheless, if Sessions does support torture, he is disqualified as attorney general, because the Constitution prohibits torture. The US cannot afford yet another attorney general who does not support the US Constitution.

If Pompeo actually is so poorly informed that he opposed the Iran settlement, he is not fit to be CIA director. The CIA itself said that Iran had no nuclear weapons program, and with Russia’s help the matter was resolved. Does Trump want a CIA director who neoconservatives could use to restart the conflict?

The views of Sessions and Pompeo could be products of the time and not visceral. Regardless, Trump is a strong and willful person. If Trump wants peace with the Russians and Chinese, appointees who get in the way will be fired. So let’s see what a Trump government does before we damn it.

Presstitute reports of extreme neoconservative John Bolton and former US attorney and NY Mayor Rudy Giuliani being candidates for Secretary of State do not seem credible. If Trump intends to get along with Putin, how can he do that if his Secretary of State wants war with Russia? Trump should find an experienced diplomat who negotiated with the Soviets. Richard Burt, who had a major role in the Strategic Arms Reduction Treaty, is the sort of person it would make sense to consider. Another sensible candidate would be Jack Matlock, Reagan’s Ambassador to the Soviet Union.

If Trump wants peace with Russia, the Secretary of State is the important appointment.

If Trump wants to stop the Oligarchy’s rip off of the American people, the Secretary of the Treasury is the important appointment.

Under the last three presidents, treasury secretaries have been agents for the banks-too-big-to-fail and for Wall Street. It is now a tradition for the financial gangsters to own the Treasury. It remains to be seen if the tradition is too strong for Trump to break.

The Oligarchy is trying to discredit the Trump Presidency before it exists. This effort is discrediting liberal and progressive groups by identifying them with nonenforcement of the immigration laws and with homosexual and transgender rights, issues not on the agenda of an electorate whose economic fortunes have been declining and who are tired of 15 years of war that serves only the hegemony agenda of the neoconservatives and the profits and power of the military/security complex.

According to The Saker, Putin has begun removing the Atlanticist Integrationists, Russia’s Fifth Column, from influence. Let’s see if Trump can remove our fifth columnists—neoconservatives and neoliberal economists—who have sold out the American people and America’s integrity.

If Trump fails, the only solution is for the American people to become more radical.

Dollar Shortage Goes Mainstream: When Will The Fed Confess?

Last week we posted the report by ADM ISI’s Paul Mylchreest “Dollar Liquidity Threat is Getting Critical and the Fed is M.I.A” which summarized some of the key points in the ongoing, second phase of global dollar shortage, profiled here first in the start of 2015 and validated recently by the BIS. We discussed the bitter (and all too predictable) irony that the Federal Reserve doesn’t “get it”, having recently declared that that liquidity in financial markets was “adequate.”

It isn’t.

More than 68,000 hits later, we suspect that many ZH readers are tracking the dollar liquidity crisis (and Fed ignorance) via the negativity in Cross Currency Basis Swaps (CCBS). The 3-month Yen/Dollar CCBS has made a new low of 81.75 bp (swapping Yen into dollars for 3 months costs 81.75bp annualised above covered interest parity) implying that the structural dollar shortage is deteriorating.

While we’ve been writing about dollar shortages since the GFC, Mylchreest traced the timeline of the current shortage back to the first RMB devaluation in February 2014. He noted that it’s the one thing that even the central banks struggle to control… think Swiss Franc peg (SNB), impact on carry trade and the Yen (BoJ) and the severe weakness that we’re seeing in the RMB (PBoC). Indeed, a “glaring omission” is the failure of the Fed to set-up a dollar swap arrangement with the PBoC.

Mainstream economists and media are playing catch-up. For example, Carmen Reinhart referenced the “dollar shortage” last month, as did Bloomberg, citing a new report by former Fed economist Zoltan Pozsar which summarizes everything we have said for years.

In his latest “Global Money Notes” report, “From Exorbitant Privilege to Existential Dilemma”, Credit Suisse’s Zoltan Pozsar argues that “an FOMC determined to normalise interest rates has no choice but to become a Dealer of Last Resort in the FX swap market and provide qunatitative Eurodollar easing (“QEE”) for the rest of the world through its dollar swap lines.”

According to Pozsar, Basel III and the money market reforms are tightening dollar funding markets causing an “existential trilemma” for the Fed in which “it is impossible to have constraints on bank balance sheets (restraining capital mobility in global money markets), a par exchange rate between onshore dollars and Eurodollars, and a domestically oriented monetary policy mandate. Something will have to give. It’s either the cross-currency basis, the foreign exchange value of the dollar or the hiking cycle. It’s either the Fed’s regulatory and monetary objectives, or control over the Fed’s balance sheet size. It’s either quantities or prices…”

In terms of CCBS, Pozsar expects “Cross-currency bases will have to go more negative before the Fed steps in, and -150bp on the three-month dollar-yen basis is not an unlikely target”, which would probably lead to a severe bout of Yen weakness from here. The three month dollar-euro basis swap has declined to -43.9bp, closing in on its recent low of -58.8bp during the Deutsche Bank panic nearly two months ago. As an aside, it’s telling that fears about European banks still cause a scramble for dollar liquidity in a deja vu all over again. 

Pozsar, like Mylchreest, highlights how a dollar funding crisis tightens monetary policy for the rest of the world and could shred the RMB as it means “tighter financial conditions for the rest of the world. In turn, tighter financial conditions point to slow, not faster global growth as foreign banks pass on higher costs to their customers or worse: de-lever their books…If the Fed leaves the intermediation of all of the rest of the world’s marginal dollar needs to American bank’s constrained balance sheets, offshore financial conditions may tighten and the dollar may strengthen to the point where they are no longer consistent with the path envisioned for the funds rate: rounds of RMB devaluation would follow which also won’t help interest rate normalization.”

So, the rest of the world is left to hang around, waiting to see if the Federal Reserve wakes up to what’s happening to dollar liquidity, and the threat it poses to the global economy and to its own (glacially slow) tightening cycle.

And now that they may be finally catching on, we would like to see some economists or journalists sit Janet Yellen down and interrogate her about dollar funding markets. Although we doubt that they could extract a confession, it might be entertaining to watch.

The Perfect Storm Set To Pop Aussie Apartment Bubble Bringing The Economy Down With It

Submitted by Guy Manno via Crush the Market

The Aussie apartment boom that has turned into an epic bubble with record, sky-high prices, is showing all the signs for the perfect storm which will ultimately pop. With the popping of the apartment boom, it will simultaneously bring down the Australian economy, as the apartment market is set to have a sizeable correction in 2017 and 2018.

A short Look At Australia’s Real Estate Market

Australian real estate prices have been going up for over 25 years with hardly a pause in between since the late 80’s. The last time real estate prices fell considerably was when Australia last had an official economic recession back in 1987, when interest rates skyrocketed to around 17-18%.

The chart below show the price growth of real estate, rents and CPI since mid 1987. Initially the price growth of Australia’s real estate market climbed steadily taking 11 years to double in 1988. From there the price growth continued to accelerate with the next 100% increase in price taking 4.5 years to reach.

An interesting observation on the chart below is that real estate prices have risen by over 700% since 1987, yet rents have risen  just under 300% over the same period. This chart clearly shows that the majority of the price growth was not supported by a fundamental increase in rents to support the higher prices, but rather a massive surge in mortgage debt over the same period drove prices higher.



Rising Credit Leads To Booms & Contractions In Credit Lead to Busts

Professor Steve Keen in the interview shown below highlights his own reasons why he sees a recession coming in 2017 for Australia.

Steve highlights a number of reasons for his prediction, including deteriorating terms of trade, the ending of the mining investment boom, the Government’s pursuit to cut spending and a reduction in foreign buyers for real estate, among others. However, the most important reason is a deceleration of credit / mortgage debt. Based on Steve’s research and economic models the deceleration of mortgage debt growth is the leading cause for all economic downturns globally including the US, Japan and Europe economic recessions, with a correlation close to -1. What all his research shows is that the deceleration of mortgage debt growth leads to a collapse in real estate prices which then lead to an economic recession in those countries.

Due to this research, Steve believes Australia will react the same way as other countries based on slowing growth in mortgage debt. Especially, as the conditions have already begun to slow based on the bank’s tightening their standards overall. However, most of the lending restrictions imposed from the banks are for off the plan apartments and existing apartments within most major cities around Australia.


Given Australia was recently ranked number 4 in the world in the UBS global real estate bubble index, see: Australia’s debt addiction fuels record real estate bubble, its easy to see that prices could fall over 20% as lending conditions continue to tighten and their effects take hold.

Why Are Banks Tightening Lending Conditions With Record Real Estate Prices?

The simple reason is that the banks do not want to be caught in a credit crunch like they faced back in 2008 and 2009 where they had to have the RBA and the US FED provide considerable financial assistance to keep them afloat.

Right now the banks can see what everyone else can see if you look at all the data publicly available. Australia will face a major oversupply of apartment dwellings over the next 1 – 3 years from a major ramp up of approvals of apartments. The growth of approvals over the last 7 years which you can see in the chart below, is leading to a big jump in the construction of apartments with a number of them being competed in the next 18 months.



Due to the rapid increase in approvals, there has been a massive spike of cranes currently being deployed in Australia, to handle the apartment boom that is currently taking place. As you can see below in the chart Sydney and Melbourne are leading the way in Australia, dwarfing most major cities in the US including New York and LA.



With all the current construction for apartments taking place from the buildup of approvals, especially in the last 3 years, Australia is facing a glut of new apartments that are about to be completed in 2017 and 2018.

Knowing the upcoming glut of apartment completions is about to come available on the market soon, the banks have taken action to protect their capital by providing most of their tightening around new and existing apartments within the CBD’s of Sydney, Melbourne and Brisbane where most of the construction has taken place.



Highest Housing Completions = Biggest Housing Price Fall

The chart below shows a comparison of house prices in Australia, UK, Spain, US and Ireland with an accompanying housing completions chart.

The most obvious data from the chart is both Ireland and Spain had the biggest fall in prices during the GFC in 2008 relative to the other countries shown. Those 2 countries also had the largest ramp up of new housing completed from 2000 – 2007.



Surging Bond Yields Leads To Higher Mortgage Rates In Australia.

Back in October US Government 10 yr bond yields were sitting at around 1.55%. Fast forward one month and rates are now sitting at around 2.3%.  A 0.8% increase from the October levels (see chart below). The reason why this is a big deal, is that the US Government bond yields are what are utilized to benchmark most of the different types of retail and commercial loans.

In Australia the banks also rely heavily on overseas markets and especially the US markets to provide the necessary funding to support their loan book. So as bond yields have skyrocketed in such a short period in the US, it has already led to the banks in Australia lifting rates by between 0.20% – 0.60% on their fixed loans as their funding costs have jumped dramatically.

With mortgage rates rising and lending conditions being tightened its becoming more difficult for developers to sell their off the plan apartments as investors find it more difficult to access bank lending to finance their purchases, resulting in a slump in demand for off the plan apartments.

Melbourne Developer Offers $21,000 To Encourage Buyers

In an attempt to lure buyers to a new off the plan development in Melbourne, a large well known developer is now offering $21,000 to investors in an attempt to sell their $420,000 1 br apartments in Southbank Melbourne. The idea is to match the investor or first time buyer’s 5% deposit of $21,000 to assist them in meeting a 10% deposit.

The problem that this Melbourne developer and other developers will find, is even with this huge financial incentive, many of the banks in Australia have lifted their minimum deposit requirements for off the plan apartments in major cities to between 15% – 25%.



Apartment Bubble Bursting Leading To Australian Recession

Similar to Professor Steve Keen’s prediction that a recession is coming to Australia in 2017 or early 2018, I also believe that the perfect storm of conditions are developing that will soon pop the apartment bubble that has been taking place in Australia.

When the correction in apartment prices takes hold, it will have a domino effect on the Australian economy, leading to a contraction in economic activity in Australia. The reason for this is because the real estate industry and related industries now has the largest contribution to GDP at around 28%. (See chart below)

With record amount of apartment construction taking place over the last few years, fueling a considerable amount of GDP growth, I believe the slowing of the construction industry will start to subtract heavily on GDP growth in 2017 and 2018 leading to Australia’s first recession in over 25 years.