Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-61263 Wed, 07 Dec 2016 23:01:52 GMT Message to Modi: Do No More Harm (INDIA CRACKS OPEN DOOR TO ARBITRARY GOLD CONFISCATION) http://implode-explode.com/viewnews/2016-12-07_MessagetoModiDoNoMoreHarmINDIACRACKSOPENDOORTOARBITRARYGOLDCONFI.html ... the idea of a war on unaccounted-for wealth remains central to demonetization's popular appeal, which means Modi will have to find other ways to keep that narrative going. So the government has now begun to push income-tax officials to conduct raids on those who might be concealing assets in forms other than cash, such as gold.

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What this means, unfortunately, is that India's income tax officers have just won the lottery. During a raid, they can, on the spot, decide whether or not to confiscate a family's gold holdings. And remember, India has an enormous amount of gold -- 20,000 metric tons, much of it inherited. (The rules governing simple searches are different, but few know that.) Rather than cleaning up tax administration, the government has handed tax officials more power than they've had for decades. The rich will pay what they need to escape harassment; the rest will suffer.

The worry is that the government, having committed itself to draconian measures to seize black money, will resort to more such attempts to live up to its promises. An India in which individuals are constantly concerned about their ability to explain their returns and their assets to powerful and poorly monitored tax officers is not one in which investment is likely to pick up. It fell another 5.6 percent in the latest GDP figures -- the third successive quarter it's dropped.

... many analysts agree with former Prime Minister Manmohan Singh, who's predicting the new policy will knock 2 percentage points off that world-beating GDP growth rate.

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iehi-feed-61262 Wed, 07 Dec 2016 21:55:49 GMT Boeing sweats under Trump spotlight as SoftBank feels warmth (IS TRUMP-ERVENTION CRONY CAPITALISM??) http://implode-explode.com/viewnews/2016-12-07_BoeingsweatsunderTrumpspotlightasSoftBankfeelswarmthISTRUMPERVEN.html

The president-elect jumped into corporate affairs again Tuesday, tweeting first to criticize one company and then to hail another. He began at 8:52 a.m. New York time by calling out Boeing Co. over costs to develop new Air Force One jets. Just over five hours later he celebrated a $50 billion investment in the U.S. by Japanese telecommunications firm SoftBank Group Corp.

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The tweets, coming after Trump last week announced a deal with United Technologies Corp. to cancel plans to close a U.S. factory, dominated news and moved markets even as details in both cases remained sketchy and the impacts unclear. Trump again showed a willingness to use his bully pulpit to criticize or congratulate companies over actions affecting American workers and government spending.

"This is extraordinary," said Mohan Tatikonda, a professor at Indiana University's Kelley School of Business. "For a president to get involved at the level of spot locations, spot companies, spot plants, is I think unprecedented."

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The market reacted again early Wednesday after Trump said he will bring down drug prices, sparking a drop in biotechnology stocks. That comment came from a Time Magazine interview, however, not Twitter.

A president who's too eager to pick winners and losers may prompt business owners to seek special treatment in Washington instead of focusing on improving operations, said Anne Krueger, an economics professor at Johns Hopkins University's School of Advanced International Studies.

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iehi-feed-61261 Wed, 07 Dec 2016 21:53:07 GMT Reverse mortgage firms fined $799,000 over deceptive consumer ads http://implode-explode.com/viewnews/2016-12-07_Reversemortgagefirmsfined799000overdeceptiveconsumerads.html American Advisors Group, Reverse Mortgage Solutions and Aegean Financial reached consent agreements with the Consumer Financial Protection Bureau after the regulator's investigation found they used ads whose scripts featured similarly misleading though reassuring claims:

"Can I lose my home? "No you cannot lose your home"... [but] consumers who get reverse mortgages typically must pay for property taxes, insurance, and maintenance costs. They can default and lose their homes if they fail to comply with the loan terms, the CFPB said.

"These companies tricked consumers into believing the could not lose their homes," CFPB Director Richard Cordray said in a statement issued with the consent orders. "All mortgage brokers and lenders need to abide by federal advertising disclosure requirements in promoting their products."

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iehi-feed-61260 Wed, 07 Dec 2016 21:44:19 GMT Trump picks Iowa Gov. Terry Branstad -- a `friend' of China's leader -- as Beijing ambassador http://implode-explode.com/viewnews/2016-12-07_TrumppicksIowaGovTerryBranstadafriendofChinasleaderasBeijingamba.html Branstad has extensive ties to China and a personal friendship with Chinese President Xi Jinping that dates back decades. If his nomination goes through, the move could help reassure China's leadership that Trump understands the importance of healthy relations with Beijing... China's Foreign Ministry did not confirm the report but reacted warmly.

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Under the Obama administration, experts say, the post of ambassador to Beijing had declined somewhat in importance. China policy was largely run out of the White House, with the president tending to immerse himself in many of the details.

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China has been a fast-growing market for Iowa's agriculture and processed food, with exports from the state up by a factor of 13 between 2000 and 2010 to $6.3 billion, according to Chinese state media.

That fact alone may reassure some people that Trump will not start a trade war with China, since retaliation from Beijing in the shape of reduced soybean and corn imports would hurt not only Iowa but also other Republican-controlled agricultural states.

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Branstad was a vocal backer of the Trans-Pacific Partnership, the 12-nation trade deal championed by the Obama administration that Trump has pledged to rip up on his first day in office. Branstad said his state's large agricultural industry would benefit from the accord, boosting exports of pork, corn and poultry and creating jobs.

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iehi-feed-61259 Wed, 07 Dec 2016 17:49:10 GMT Standing Rock is a modern-day Indian war. This time Indians are winning http://implode-explode.com/viewnews/2016-12-07_StandingRockisamoderndayIndianwarThistimeIndiansarewinning.html Along the snowy banks of the Missouri river, a new story is being painfully birthed. It tells us that frontiers must at some point close. That endless taking must become care-taking. And that Indigenous rights, cast aside for too long, are a key to protecting land and water and preventing climate chaos. America is waking up to new heroes.

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Almost everywhere these fossil fuel projects have emerged, Indigenous peoples have been their first and fiercest opponents: the Cheyenne stopping coal in Montana, the Lummi defeating an export terminal in Washington, and throughout my country of Canada, Indigenous peoples standing in the way of mines and tar sands pipelines. Forget all those supposedly progressive heads of state who have touted the Paris climate accord but effectively undermined it with their actions: real climate leaders, those keeping carbon in the ground, are doing so directly on the land.

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The Lakota, like other Indigenous peoples, have always had to be depicted as the "evil instigators." How else could they be "hunted like wolves," as one US general commanded in 1865; how else could the government violate the treaties that guaranteed them a huge tract of the plains, include the path taken by the proposed Dakota access pipeline. Their lands--seized for gold, parcelled for cattle grazing, flooded for dams--have shrunk and shrunk. That is why they are poor and America has become rich.

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But brave activism has shown that an unbroken history of ugliness and violence is never a guarantee of the future. It turns out treaty rights were never a specimen of the past. They were always living and sacred obligations. In ways clear to more and more people, they have also become the most powerful non-violent weapon for a habitable planet. Which means that honouring the treaty and land rights of Indigenous peoples is now not only a long-overdue moral and legal duty: a stable climate depends on it.

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iehi-feed-61258 Wed, 07 Dec 2016 03:30:43 GMT Islamic finance set to change gold market http://implode-explode.com/viewnews/2016-12-06_Islamicfinancesettochangegoldmarket.html We don't have the full details of the guidelines but expect to find out more this week at the World Islamic Banking Conference. However, we do know three things that the new Shariah gold-standard will achieve: first, it will increase both the number and diversity of available Shariah-compliant gold investment products; second, it will place far greater emphasis on the role of physical gold in gold transactions; finally, it will give a greater role to Islamic finance in the setting of the gold price...

If Islamic Finance institutions were to allocate just one per cent of assets into new gold products then we would expect to see demand climb by about 500-1000 tonnes, per annum. Given that recent demand and supply figures showed a surplus of just 172 tonnes of gold in the market, we could begin to see some tightening with the increase of Shariah-compliant gold instruments, which will have a positive impact on the price.

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iehi-feed-61257 Wed, 07 Dec 2016 03:16:11 GMT Donald Trump says he wants to fix cities. Ben Carson will make them worse. http://implode-explode.com/viewnews/2016-12-06_DonaldTrumpsayshewantstofixcitiesBenCarsonwillmakethemworse.html Trump's selection of Carson echoes Ronald Reagan's selection of Samuel Pierce as his HUD secretary. Like Trump, Reagan had lashed out against inner cities and pledged to slash social spending. Like Trump's supporters, the majority of Reagan's voters did not live in cities. And like Trump, he had little support among African Americans. But like Trump, Reagan wanted a black face in a high place for a little legitimacy in a post-civil-rights-movement White House. And, like Trump, Reagan pledged to loosen housing and financial regulations.

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HUD's privatization opened up new possibilities for crony capitalism. HUD staffers channeled money to Republican-connected lawyers, consulting firms and developers. One of the dozens swept up in the investigation was Trump's former campaign manager, Paul Manafort, who successfully lobbied for about $43 million in federal subsidies for a shabby New Jersey housing complex, a place described as "a shamble of cinder blocks long past the point of repair." He received $326,000 in fees for his efforts and eventually owned a 20 percent share of the development, which showed few signs of improvement after winning the HUD grant. Eventually, 16 HUD staffers and external consultants were convicted. (Manafort was never charged with wrongdoing.)

History never repeats itself exactly, but Pierce's time at HUD offers some warnings for Carson's nomination. Like Pierce, Carson is shaping up to be a token black Cabinet member. Trump has not appointed any other black officials so far, and given his lack of high-profile black supporters, he doesn't have many prospects. Like his predecessor, Carson has little management experience. And like Pierce, he will oversee an agency whose budget includes substantial contracts with politically connected nonprofits, real estate developers, and mortgage lenders. The possibilities for corruption are legion with a HUD secretary who knows nothing about the agency, its programs and its vastly complex budget.

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HUD turned 50 last year. Metropolitan America has changed a lot in the half-century since Johnson created the agency. But cities' problems are no less pressing, even if Trump left them unaddressed on the campaign trial as he railed about crime. In most urban areas, economic and racial inequality has spiked. Urban housing is a case study in market failure: too much for the rich and, in many cities, for international speculators. Affordable, high-quality housing is scarce, especially in rapidly gentrifying cities such as New York, Washington and Los Angeles. Even poorer cities such as Detroit, Philadelphia, St. Louis and Milwaukee have huge waiting lists for subsidized housing units. Poverty has risen sharply in the suburbs. Many of the poorest Americans, urban or suburban, are left to the vagaries of a predatory rental market. Few working-class and poor people can afford to live in job-rich suburbs and exurbs or send their children to the best-funded school districts. And many municipalities are struggling with collapsing tax bases, decaying infrastructure, and aging housing.

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iehi-feed-61256 Tue, 06 Dec 2016 23:53:23 GMT Trump Native America Advisors: "Drill, Baby Drill... Under Indian Reservations" http://implode-explode.com/viewnews/2016-12-06_TrumpNativeAmericaAdvisorsDrillBabyDrillUnderIndianReservations.html Native American reservations cover just 2 percent of the United States, but they may contain about a fifth of the nation's oil and gas, along with vast coal reserves. Now, a group of advisors to President-elect Donald Trump on Native American issues wants to free those resources from what they call a suffocating federal bureaucracy that holds title to 56 million acres of tribal lands, two chairmen of the coalition told Reuters in exclusive interviews.

The group proposes to put those lands into private ownership - a politically explosive idea that could upend more than century of policy designed to preserve Indian tribes on U.S.-owned reservations, which are governed by tribal leaders as sovereign nations.

The tribes have rights to use the land, but they do not own it. They can drill it and reap the profits, but only under regulations that are far more burdensome than those applied to private property.

"We should take tribal land away from public treatment," said Markwayne Mullin, a Republican U.S. Representative from Oklahoma and a Cherokee tribe member who is co-chairing Trump's Native American Affairs Coalition. "As long as we can do it without unintended consequences, I think we will have broad support around Indian country."

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The plan dovetails with Trump's larger aim of slashing regulation to boost energy production. It could deeply divide Native American leaders, who hold a range of opinions on the proper balance between development and conservation. The proposed path to deregulated drilling - privatizing reservations - could prove even more divisive. Many Native Americans view such efforts as a violation of tribal self-determination and culture.

It's funny that people think this even matters anymore: two years of rock-bottom energy prices did little to revive the moribund economy, as the core monetary engine of capitalism was not revived.

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iehi-feed-61255 Tue, 06 Dec 2016 23:47:54 GMT Italian Bank Shares Slump as Renzi Loss Adds to Uncertainty http://implode-explode.com/viewnews/2016-12-06_ItalianBankSharesSlumpasRenziLossAddstoUncertainty.html UniCredit Group AG and Banca Monte dei Paschi di Siena SpA fell along with most Italian bank shares after Prime Minister Matteo Renzi's decision to resign added to uncertainty about their plans for shoring up their finances. Monte Paschi will decide within the next few days whether it will proceed with a planned capital increase, people with knowledge of the matter said.

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Monte Paschi is seeking as much as 5 billion euros by the end of the year to repair its buffers after selling 28 billion euros in bad loans at a loss. While the bank has persuaded investors to swap more than 1 billion euros of subordinated notes for shares, it has yet to announce a large-scale investor and any agreement with the banks that would underwrite a planned public share sale.

"The chances of a successful implementation of the capital plan within the original timeframe (before the end of the year) are slim," BNP Paribas analysts Geoffroy de Pellegars and Miguel Hernandez said on Monday. If the European Central Bank decides Monte Paschi needs to be recapitalized immediately, it could face a government-backed rescue that would impose losses on bondholders, they said. "The near-term outcome depends entirely on the ECB," according to the analysts.

See also Sources: Monte Paschi has apparently already requested a bailout.

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iehi-feed-61254 Tue, 06 Dec 2016 23:44:22 GMT Matteo Renzi's resignation temporarily 'frozen' by Italian president http://implode-explode.com/viewnews/2016-12-06_MatteoRenzisresignationtemporarilyfrozenbyItalianpresident.html Renzi met Sergio Mattarella on Monday at the presidential palace -- the Quirinale -- in order to formally submit his resignation following a stunning defeat in a referendum on Sunday. Renzi was expected to step down immediately but his departure could now be delayed until Christmas.

Mattarella signalled that he will not call snap elections in response to the referendum results, putting him on a collision course with populist and rightwing parties that want a new poll to be called right away.

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iehi-feed-61253 Tue, 06 Dec 2016 23:40:22 GMT Carrier Boss Suggests Consequence of Deal With Trump Will Be: More Robots http://implode-explode.com/viewnews/2016-12-06_CarrierBossSuggestsConsequenceofDealWithTrumpWillBeMoreRobots.html iehi-feed-61252 Tue, 06 Dec 2016 23:33:32 GMT The Deepening Deep State - KUNSTLER http://implode-explode.com/viewnews/2016-12-06_TheDeepeningDeepStateKUNSTLER.html A little paranoia about the growing fascist behavior of the US government is a useful corrective to trends that citizens ought to be concerned about -- for instance, the militarization of police; the outrageous "civil forfeiture" scam that allows police to steal citizens cash and property without any due process of law; the preferential application of law as seen in the handling of the Clinton Foundation activities and the misconduct of banking executives; the attempt to impose a "cashless society" that would herd all citizens into a financial surveillance hub and eliminate their economic liberty.

These matters are especially crucial as the nation stumbles into the next financial crisis and the Deep State becomes desperate to harvest every nickel it can to rescue itself plus the cast of "systemically important" (Too-Big-To-Fail) banks and related institutions like Fannie Mae and Freddie Mac, which are about to once again be left holding colossal bags of worthless non-performing mortgages, not to mention the pension funds and insurance companies that will also founder in the Great Unwind that is likely to commence as Trump hangs his golden logo over the White House portico.

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iehi-feed-61251 Tue, 06 Dec 2016 23:24:24 GMT Wells Fargo to Abused Customers: See You in Arbitration http://implode-explode.com/viewnews/2016-12-06_WellsFargotoAbusedCustomersSeeYouinArbitration.html On Nov. 23, the dishonored bank filed a motion to force its victims to stick to their word and honor the contract requiring arbitration. In Wells' world, playing by the rules is apparently only expected of the customer. Wells spokesman Jack Grone said the company declined to comment. If it wins, Wells will corral its victims into hearings before the American Arbitration Association, the forum it specified in its customer agreements.

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Financial companies and their lobbyists spend a lot of time talking about what a terrific, fair system arbitration is for the public. I'd love to have the chance to sit through some of those hearings and report back to you on how fair or unfair it might be. But reporters are not welcome.

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iehi-feed-61250 Tue, 06 Dec 2016 17:22:10 GMT Bigger trade deficit suggests trade will drag on growth http://implode-explode.com/viewnews/2016-12-06_Biggertradedeficitsuggeststradewilldragongrowth.html iehi-feed-61249 Tue, 06 Dec 2016 17:19:37 GMT Poll: Trump's Carrier deal is wildly popular http://implode-explode.com/viewnews/2016-12-06_PollTrumpsCarrierdealiswildlypopular.html iehi-feed-61248 Tue, 06 Dec 2016 17:15:15 GMT House G.O.P. Signals Break With Trump Over Tariff Threat http://implode-explode.com/viewnews/2016-12-06_HouseGOPSignalsBreakWithTrumpOverTariffThreat.html "I respect President-elect Trump for fulfilling his campaign promise to withdraw from TPP," Representative Kevin Brady, Republican of Texas and chairman of the powerful House Ways and Means Committee, said shortly after the election. "We can't abandon these markets to China and other competitors because American businesses and customers will lose out," he added.

... But massive tariffs appear too much to abide. Both Mr. Ryan and Senator Mitch McConnell, Republican of Kentucky and the majority leader, supported a bill that gave Mr. Obama and his successor special "fast track" authority to negotiate trade agreements, and are proponents of reducing tariff barriers.

"Tax cuts and deregulation will make the American economy great again, but tariffs and trade wars will make it tank again," said David McIntosh, president of the conservative group Club for Growth in a statement, adding, "The majority leader is right to caution against protectionism and to urge a robust debate on free markets and trade."

House leaders want to tackle the problem of companies moving operations overseas with a broad rewriting of the corporate tax code, which they say will make American manufacturing more competitive without resorting to punitive measures on individual companies.

"Tough talk plays well with his base and is arguably even long overdue," said Brian Walsh, a Republican consultant and former official at the National Republican Senatorial Committee. "But ultimately the legislative focus will be on tax reform and deregulation versus tariffs and trade wars. I don't believe Republicans will let a golden opportunity to finally pass comprehensive tax reform to fall victim to intraparty squabbling."

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iehi-feed-61247 Tue, 06 Dec 2016 17:13:47 GMT Donald Trump's Twitter Tirade Sparks Anger in China http://implode-explode.com/viewnews/2016-12-06_DonaldTrumpsTwitterTiradeSparksAngerinChina.html Mr. Trump's call with Ms. Tsai and subsequent tweets accusing China of currency manipulation, over-taxing U.S. imports and building "a massive military complex in the middle of the South China Sea" have generated a "tremendous amount of uncertainty" in Beijing, said David Dollar, the Treasury Department's economic and financial emissary to China during Mr. Obama's first term.

"Some of the issues with China are best settled quietly and confidentially," Mr. Dollar said. "If the whole policy is diplomacy-by-tweet, it's hard to think that's going to meet U.S. objectives."

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Stephen Yates, a former national security adviser to Vice President Dick Cheney who worked as a Mormon missionary in Taiwan, said that for at least a week Ms. Tsai's name was on Mr. Trump's list of foreign leaders whom he would speak with by phone.

"To my knowledge, Taiwan was on that list early, and it took some time to arrange," said Mr. Yates, who is seen as a candidate for a post on Mr. Trump's national security team. "It was a message in the sense that Donald Trump is not necessarily going to be told what he can or can't do because a foreign leader says so. That's exactly the kind of thing that millions of Americans detest about Washington," said Mr. Yates, who currently is visiting Taiwan for meetings with senior officials.

"If it's going to cause some pain, then so be it," he said.

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Mr. Trump used Twitter on Sunday to complain that China "heavily" taxes U.S. products entering their country, but that the U.S. doesn't tax Chinese imports. China does impose a tariff, a sort of import tax, ranging between 5% and 9.7%, on many products.

The U.S. in many cases charges a tariff on imports from China and many other countries, ranging between 2.5% and 2.9%. Mr. Trump has in the past floated the idea of imposing a tariff against China more than ten times larger.

While Mr. Trump has appeared to soften some of his other campaign stances, on issues such as climate change and torture of terrorism suspects, he has not backed off his calls to more aggressively challenge Beijing.

His approach in recent days "could force the Chinese to feel they have to respond," said Michael Auslin, a resident scholar in Asian Studies at the American Enterprise Institute. Mr. Auslin said China could decide to take any number of steps, including putting "another 1,000 missiles across the [Taiwan] strait." It also

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iehi-feed-61246 Tue, 06 Dec 2016 14:55:26 GMT Pentagon buries evidence of $125 billion in bureaucratic waste http://implode-explode.com/viewnews/2016-12-06_Pentagonburiesevidenceof125billioninbureaucraticwaste.html Pentagon leaders had requested the study to help make their enormous back-office bureaucracy more efficient and reinvest any savings in combat power. But after the project documented far more wasteful spending than expected, senior defense officials moved swiftly to kill it by discrediting and suppressing the results.

The report, issued in January 2015, identified "a clear path" for the Defense Department to save $125 billion over five years. The plan would not have required layoffs of civil servants or reductions in military personnel. Instead, it would have streamlined the bureaucracy through attrition and early retirements, curtailed high-priced contractors and made better use of information technology.

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But some Pentagon leaders said they fretted that by spotlighting so much waste, the study would undermine their repeated public assertions that years of budget austerity had left the armed forces starved of funds. Instead of providing more money, they said, they worried Congress and the White House might decide to cut deeper.

So the plan was killed. The Pentagon imposed secrecy restrictions on the data making up the study, which ensured no one could replicate the findings. A 77-page summary report that had been made public was removed from a Pentagon website.

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iehi-feed-61245 Tue, 06 Dec 2016 01:22:55 GMT Carney Lays Out Vision to Revive Benefits of Globalization http://implode-explode.com/viewnews/2016-12-05_CarneyLaysOutVisiontoReviveBenefitsofGlobalization.html Mark Carney launched a defense of globalization and set out a manifesto for central bankers and governments to boost growth and make the world economy more equal.

The Bank of England Governor said they must acknowledge that gains from trade and technology haven't been felt by all, improve the balance of monetary and fiscal policy, and move to a more inclusive model where "everyone has a stake in globalization."

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Carney also defended the central bank's current policy stance... "Low rates are not the caprice of central bankers, but rather the consequence of powerful global forces, including debt, demographics and distribution," he said, adding that they helped to prevent a deeper economic downturn.

So he wants to make the "fruits of globalization felt more equally", but wants to ignore the chief driver of the inequality... this pretty much sums of the establishment's "response" to the undeniable popular revolt going on now.

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iehi-feed-61244 Tue, 06 Dec 2016 01:04:30 GMT Dallas Mayor Sues to Stop Public Pension "Run On The Bank" http://implode-explode.com/viewnews/2016-12-05_DallasMayorSuestoStopPublicPensionRunOnTheBank.html The police and firefighters of Dallas have pulled more than $500 million out of their retirement savings plan since early August, worried that their pension fund could soon run out of money. Now, Dallas Mayor Mike Rawlings is suing to stop them.

The Dallas mayor said he is acting in his private capacity as a Dallas taxpayer and paying for the suit himself. In a Monday court filing, Mr. Rawlings asks a Dallas County judge for a restraining order that temporarily halts withdrawals from the Dallas Police and Fire Pension Fund.

The revolt by members of the $2.27 billion fund heightens the risk that a major U.S. pension fund could run out of money. It also offers an extreme case of what can happen when a pension wagers on lucrative returns to cover funding shortfalls.

Many pension funds took on more risk in recent years to fill mounting funding gaps, hurt in part by declining bond yields that damped returns. Between 2007 and 2015, the average percentage of assets large pension plans parked in alternative investments or real estate grew to 17.6% from 10.1%, according to the Wilshire Trust Universe Comparison Service.

But Dallas is in a class by itself. The withdrawals since August represent an 18% drop in the fund's total assets, seriously reducing the fund's ability to earn money through investment.

"This particular circumstance is more akin to runs on the bank that you saw at the beginning of the Depression because people were afraid they weren't going to get their money," said Robert Klausner, an attorney who represents public pension funds.

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Officers say they are pulling their retirement savings because of concerns about the fund's finances. A series of aggressive real estate bets from Hawaii to Paris and a conflict over the value of those properties triggered more than $500 million in losses, leaving the fund with enough to pay just 45% of future benefits. Officials are warning the pension could go broke by 2027.

Dallas adopted its more aggressive strategy before the crisis, adding luxury homes and shopping centers in Hawaii, student housing in Texas, and raw land in Idaho and Colorado, records show.

The strategy appeared to be working, with Dallas returns often beating national medians. But that success received scrutiny in 2013 when the Dallas Morning News reported that many properties hadn't been appraised for years. Instead, certain holdings were valued based on their purchase price and in some cases by also adding development and operating expenses, said Chief Financial Officer Summer Loveland, who joined the fund in November 2013.

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