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Commentary on The Capital Markets- Category [International]

It's time for us to evict the UN from their cozy little hideaway in NYC.

(Reuters) - Moves by some U.S. states to legalize marijuana are not in line with international drugs conventions, the U.N. anti-narcotics chief said on Wednesday, adding he would discuss the issue in Washington next week.

Here's my answer: Go **** yourself.

Here's a hint if you're having trouble figuring it out: The United States is a federation of states.  That is, it is (intentionally) designed as a weak federal government and 50 political laboratories; the good ideas gain economic and human power (because people move there both personally and in business) and the poor ideas lose both over time.

This allows the nation to grow and mature, rather than stagnate with some "grand poobah" dictating policy.  We learn from ourselves and others, with literally half-a-hundred places to try things out in various ways.

The International Narcotics Control Board (INCB) has said Uruguay's new bill contravened the 1961 Single Convention on Narcotic Drugs, which it says requires states to limit the use of cannabis to medical and scientific purposes, due to its dependence-producing potential. The Vienna-based INCB monitors compliance with this and two other drug control treaties.

So what?

The UN has no enforcement power.  At all.

Go ahead and bloviate.  It means nothing.  You're perfectly welcome to try to persuade with words, but should you try with other means you should be aware that the people have the right to resist and just might do exactly that.

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Yeah, right....

China obtained secrets from the F-35 Joint Strike Fighter through cyber attacks against a subcontractor for Lockheed Martin. The technology has shown up in China's first stealth jet, the J-20, and in the J-31. Both of the jets' design features and equipment are similar to those of the F-35.

In other words, they stole it.

We still, however, despite this sort of outrageous theft, grant China access to our markets without tariffs or restrictions.

It is not just military secrets that China steals.  In fact, they steal anything that's not nailed down, including when it completely screws US companies -- who then watch helplessly as goods they designed are sold literally world-wide (including but not limited to in China) without recourse after their designs and specifications have been ripped off.

Further, China routinely either bars our manufacturers from importing products to China at all, forces them to build a certain amount of content in China, or charges outrageous tariffs on imports from US manufacturers -- all the while they pay zero in tariffs to export to our nation.

It's well past the time to say NO MORE DAMNIT.

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Will someone have the balls to tariff these ****ers?

Chinese government operatives reportedly are suspected of hacking the U.S. Postal Service, in a security breach that may have compromised personal information for more than 800,000 workers.

The breach was announced Monday, as President Obama arrived in Beijing.

The Postal Service confirmed the incident in a written statement, saying personal information that may have been obtained in the attack includes employees' names, dates of birth, Social Security numbers, addresses, emergency contacts and other information.

**** you China.

This isn't just about government-sponsored hacking (which has been going on for a very long time -- most of the attempts on my infrastructure and those I monitor are coming from there these days; between Russia, former Russian satellites and China it's the vast majority) it's also about us granting them "free access" to our markets while they steal the intellectual property of our companies and at the same time tariff the goods produced by our firms when we want to sell them there.

There's simply no argument available for allowing them tariff-free access to our markets.  None.

Those policies have destroyed our industry, decimated our blue-collar (middle-class) workforce and through the imbalance of payments have "covered" our government deficit spending while trashing middle-class purchasing power at the same time.

Does anyone in our administration or Congress have a pair of balls or are they all eunuchs?


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You have to be blind not to recognize what's been going on with oil of late; that's a three-year low, by the way, that was broken this week.

You've also noticed the price at the pump, I'm sure.  What's not being talked about (much), beyond the simpleton the world is awash in oil mantra, is exactly why the world is awash in oil.

There are two realities about oil right now.  First, despite all the screaming from various quarters about how Saudi Arabia's big producer, Aramco, simply could not produce more oil and therefore price was a simple matter of declining supply into robust demand.

Uh..... yeah, pull the other one.

The truth is quite a bit more complex.

See, Saudi Arabia knows (as does anyone else who follows the market) that we have a lot of oil here too.  But our "lots of oil" is uneconomic to produce at a price materially under $100/bbl.  Saudi Arabia can profitably pump their oil at a much-lower price, while other producers, including Russia, need that $100 price as well.

So Saudi Arabia is doing what cartels do -- they're playing with the price on the market by selling at whatever price is advantageous to them, and meeting the demand that shows up at that price.  Demand that, incidentally, many have said they can't meet -- a claim that has now been proved to be obviously (and outrageously) incorrect.

This is not the first time that has happened.  Remember back after the Arab Oil Embargo oil prices absolutely collapsed.  During the embargo, heeding the so-called "analysts" that had predicted permanently elevated prices, American oil companies borrowed heavily to invest in various projects including strip-mining shale plants (that we could never build today due to environmentalist screaming.)  When the price of oil collapsed all the screaming from the left became irrelevant as that production was instantly uneconomic.  In point of fact US oil companies were nearly bankrupted by their own hubris and borrowing to scale up those production plans.

Now it's happening again, although the bankruptcy part isn't here yet.  But the pattern is clear; all that "alternative" oil production (e.g. tar sands, etc) doesn't work at a price much lower than here.  Canada's existing production has a break-even cost in the $63 range while our Bakken oil has an alleged "break-even" cost near $70.

As a result while imminent bankruptcy is not in the cards with oil trading near $80, it sure ought to be on some people's minds.  Remember that cartels have as one of their primary weapons the ability to bankrupt competitors and then constrict supply; this is one of the reasons that such behavior is illegal in the United States.

The one good point from this, if you can call it that, is that the current trading price is arguably below where Russia needs it for their fiscal situation to remain stable.  While Putin can give the finger to us in terms of sanctions he has a much larger problem when it comes to oil, which is what runs his economy.  While the Saudis know you can't eat sand, Putin knows damn well he and his people can't eat Siberian ice -- at least not for very long.

So one wonders -- when the party doing it is the same one that is such a great "friend" to the United States that they allegedly financed and provided logistical support to a group of nutjobs that flew aircraft into our buildings on purpose, are they "helping" us or are their acts today calibrated to tighten the noose around Ivan's neck instead?

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2014-11-02 09:13 by Karl Denninger
in International , 154 references

Now can we start jailing all those illegal immigrants?

After 214 days in a Mexican prison, Sgt. Andrew Tahmooressi crossed the US – Mexican border Friday night, boarding a private jet for Florida shortly after 9 p.m., after a strong diplomatic push appeared to help convince a judge to release the former Marine on humanitarian grounds.

214 days for a wrong turn.

Oh, and by the way, most of the responsibility for that is ours, not Mexico's.

Why?  Because at that crossing (like most, post-9/11) there is no way to "bail" at the last minute if you determine you ****ed up.  and people do make mistakes - - the reason doesn't matter, whether it's being tired, stressed out or whatever.

I have no quarrel with Mexico (or any other nation) imprisoning someone who intentionally tries to bring guns into their country in contravention of their laws.  Gun-running is about as bad as it gets, especially when you intend to do evil things with them (or provide them to someone else for nefarious purpose.)

But -- there's no evidence that is what was going on here, and there was and is plenty of evidence that our former Marine really did not intend to enter Mexico with said weapons.  That should have been the beginning and end it -- right then and there, not 214 days later.

Our government has no balls and Mexico has no brains.

Nonetheless, I'm glad our Marine is home.

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