Italian Prime Minister Giuseppe Conte Resigns After Pressure from Nationalist Matteo Salvini…


Italy is one of the key economies within the EU. In the past several years, driven by both economic challenges and unfettered immigration challenges, the populist revolt has gained ground. Interior Minister Matteo Salvini, a nationalist-minded politician, has won the hearts of Italian voters.  Matteo Salvini is a proud Italian populist.

Several months ago Matteo Salvini challenged current Prime Minister Giuseppe Conte to hold a snap election; and followed-up with continued pressure on the Italian government by advancing populist positions of economic patriotism, sovereignty and tougher immigration rules.

Amid a revolt against globalism writ large, it was not accidental that Nancy Pelosi traveled to Italy recently with a coalition of U.S. leftist politicians to organize a strategy to fend-off Salvini and assist Prime Minister Conte. Pelosi is an opportunist. Part of the plan for Conte to hold power was a shift within his party (Five Star Movement or 5sM) to form an alliance with the Italian left-wing Democratic Party (Pelosi’s ideological allies).

To pull off their plan, Conte and the Democratic Party would align; Conte would then resign and hold the snap election where 5sM and the far-left Democratic party would re-elect him. This approach would strategically counter the 36 percent of support currently held by Matteo Salvini (the League). Today Giuseppe Conte resigned.

(Wall Street Journal) […] Prime Minister Giuseppe Conte announced his resignation in a speech to the Senate on Tuesday, blaming far-right Interior Minister Matteo Salvini for causing a political crisis as Italy looks to draw up a challenging budget to keep its parlous finances on track.

[…] Leaders of 5 Star are exploring the only plausible alternative to snap elections the League would likely win: a new coalition government with their longstanding foes, the mainstream center-left Democratic Party. Talks in coming days could show whether such a coalition is possible or early elections are needed.

Italy’s power struggle is a symptom of Europe’s continuing political upheaval after a decade of crises including the economic depression in the periphery of the eurozone and the pressures of rising immigration from poor and war-torn parts of Africa and the Middle East.

[…] The political upheaval has gone further in Italy than in most other EU countries. In March 2018 elections, Italy’s mainstream parties suffered a heavy defeat. In a country tired of economic stagnation and ineffectual political incumbents, one in three Italians backed 5 Star, while the League won 17% of the vote. Since then, however, 5 Star has struggled in government and its support has halved, while Mr. Salvini’s tough stance on immigration has helped double support for the League.

If Italy holds early elections, Mr. Salvini could become the first leader of a major EU nation who comes from a self-described populist party to the right of Europe’s mainstream conservatives. Mr. Salvini, an avowed admirer of Russian President Vladimir Putin, has challenged the EU’s rules on fiscal discipline, accusing Germany and France of hypocritically breaking the rules while imposing austerity on Italy. Some League officials have advocated Italy’s exit from the euro, although Mr. Salvini says it isn’t on his agenda. (read more)

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In the background of all of this we have: (1) Italy’s involvement in “spygate” and the U.S. intelligence operations in/around Joseph Mifsud (Malta).  (2) The pending Brexit at the end of October, a threat to Pelosi’s ideological group.  (3) The possible defeat of Canadian Prime Minister Justin Trudeau, another threat to Pelosi’s ideological group; and (4) the economics of Trump’s trade strategy, more threats to Pelosi’s scheme team.

Speaker Nancy Pelosi is traveling the world in an attempt to block rising nationalism, and the consequences of economic trade deals therein, wherever possible.  Her domestic political interests in the 2020 election are predicated on stopping the deglobalization process underway by President Trump.

President Trump and PM Boris Johnson Discuss Brexit and Trade Deal…


According to the White House:

President Donald J. Trump spoke by telephone with Prime Minister Boris Johnson of the United Kingdom earlier today to discuss a wide range of trade and economic issues. Prime Minister Johnson also provided the President with an update on Brexit. The President expressed great enthusiasm for his upcoming meeting with the Prime Minister at the G7 Summit in Biarritz, France. (link)

The G7 is being held August 24th – 26th.  The word of a tentative post-Brexit U.S-U.K trade agreement was first released last week. The potential construct has the assembly of mutual benefit and follows a plan previously recommended by President Trump to Prime Minister Theresa May.

Aides to Trump and Johnson are laying the groundwork for an announcement on the issue when they meet on the sidelines of the G-7 summit in France. Such a statement could outline a road map for negotiations and how the two countries envision their future trade ties, the official said.

The timing of it — during the G-7 and at their first meeting — would be intended to demonstrate a united front between the U.S. and the U.K as Trump and Johnson gather with European leaders, including German Chancellor Angela Merkel and French President Emmanuel Macron.

CTH could see the outline of what President Trump had in mind back in 2017.  If my suspicions are accurate, it’s a stunning maneuver but also difficult to explain.   Think of it like a U.K. version of the NAFTA fatal flaw where Britain is positioned like Mexico/Canada, and the U.S. is positioned like China. There would be massive, beyond stunning, economic up-side for Britain.

What Trump and Johnson could construct is a bilateral trade deal between the U.S. and the U.K that has genuine reciprocity and negligible trade barriers.  Like a trade freeway between the U.K and the U.S, but only between the U.K. and U.S.

With the EU no longer able to influence trade agreements involving the U.K. European companies, and countries (Poland, Hungary etc.) could get tariff-free access to the U.S. market by operating out of Britain, or using transnational shipping through Britain.

Simultaneously, the U.S. could ship tariff free into the EU (to a receiving EU corporation, or EU subsidiary of a U.S. corporation) by exporting to Britain.  The UK would be the hub for massive economic activity between North America and Europe.

If France (the EU) is charging Canada a high duty for imported Canadian cheese; Canada, through the USMCA pact could ship to a holding company in Britain who would then transfer product (duty free) to the receiving French company who is operating in the U.K, and distributing in France.  [A French company in the U.K. would receive in the U.K without the French (EU) duty.]

Eventually all corporations in the EU, who wanted to do business with North America, would start operations in the U.K….. OR, the EU would have to drop it’s one-way tariff policy (ie. the Marshall plan is ended).  Think about the leverage this creates.

Of course this process would completely change the trade dynamic in Europe; and completely change the trade dynamic between Europe and North America.  So how would Trump and Johnson start?  Answer: Establish an interim tripwire to measure success. Hence you get this phrase:

 “[…] Such a deal could last for something like six months, the official told reporters.”…

Of course an interim deal… because the EU bloc will respond to it… so a reevaluation at six months, prior to any massive investment outlays, is exactly what a CEO would create.

Donald Trump isn’t a politician, he’s working through a plan for what he views (we agree) is bigger than any ideological aspects.  “Economic Security is National Security.”

After the G7, President Trump and First Lady Melania are scheduled to travel to Poland as the special guests of Polish President Andrzej Duda and his wife Agata Kornhauser-Duda.

Lots of supporters in nearby Denmark are trying to get President Trump to visit while he is in the area…

[Copenhagen, Denmark Link]

BNL NEWS@BreakingNLive

WATCH: Major Trump sign in central Copenhagen, Denmark ahead of President Trump’s possible visit in September:

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Donald J. Trump

@realDonaldTrump

I promise not to do this to Greenland!

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81.6K people are talking about this

 

Hong Kong Protest Movement Spokesperson Explains Purpose and Intents…


Hong Kong movement spokesperson Sunny Cheung explains what the protests are about, and what the movement hopes to achieve.   Mr. Cheung explains the protesters do not believe in the communist idea, and/or the larger communist ideology; hence their efforts to reach out to the U.S. for support.

More protests and rallies are scheduled for this weekend.

The European Commission is just an Undemocratic Echo Chamber


COMMENT: Mr. Armstrong, Rome was my first WEC. It was truly an eye-opening event. Nigel Farage was correct – you are the alternative to Davos. I wanted to say after you explained the structure of the European Union and there the German people were denied any right to vote to join the euro, this coronation of the new grandmaster of the European Union Ursula von der Leyen was utterly undemocratic. We never have a right to vote for the head of Europe. Americans complain about Trump, but at least he was elected. Leyen was never elected by the people and this is very dangerous for this institution need never answer to the people.

HBM

RESPONSE: You are absolutely correct. They can hold impeachment proceedings against Trump but the head of the EU does not have to face the people in any election. This is a real problem. The European Commission is simply an echo chamber. They all see the world only through their own eyes and need not be held accountable to the people. Draghi imposed more than 10 years of insane interest rates that have wiped out pensions and destroyed the dreams of the elderly. Then they appoint the head of the IMF who was a lawyer and also does not stand for election EVER!!!

Nails It – Economic Analyst El-Erian: The Era of “De-Globalization” is Here…


Finally an economic analyst gets prime-time media pundits to listen as he describes the fundamental difference between the U.S. “Economy” (Main Street) and the U.S. “Markets” (Wall Street).  Charles Payne understands most of this, but El-Erian has it nailed.

Allianz Group chief economic advisor, Mohamed El-Erian, accurately describes what is happening in an era where deglobalization is taking place. The U.S. economy is strong; however, the multinationals on Wall Street -invested overseas- are exposed.  Thus there’s a disconnect and accompanying market volatility.

This is well worth watching because this is the first well-regarded financial pundit that is speaking truth to Wall Street in terms the panel pundits will understand/accept.

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There is nothing that China and the EU can do to stop the de-globalization process; and efforts to stimulate their economy, more quantitative easing (pumping money) while the global supply chains are being shifted, are futile.

The more a nations’ economy is dependent on exports, the more exposure they have to the inherent downsides of de-globalization.   U.S. companies that are invested in these nations will lose their investment over time; some rapidly.  This will keep the stock market volatile, yet the Main Street USA economy is thriving.

President Donald Trump has purposefully stalled the process of globalization, and is resetting global supply chains. This is bringing massive amounts of wealth back into the United States.

In essence Titan Trump is engaged in a process of: (a) repatriating wealth (trade policy); (b) blocking exfiltration (main street policy); (c) creating new and modern economic alliances based on reciprocity (bilateral deals); and (d) dismantling the post WWII Marshall plan of global trade and one-way tariffs (de-globalization).

Canadian Ethics Commission Concludes Justin Trudeau Violated Oath of Office, Broke Law, Used Position To Influence Attorney General…


The Canadian Office of Ethics completed their investigation of Canadian Prime Minister Justin Trudeau and whether he inappropriately used his office to influence and pressure the Canadian Attorney General to drop criminal charges against a political ally and donor, SNC-Lavalin.  [Backstory Here]

Section 9 of the Canadian Ethics Act prohibits “public office holders from using their position to seek to influence a decision of another person so as to further their own private interests or those of their relatives or friends, or to improperly further another person’s private interests.”

The investigation found:

“Prime Minister Trudeau used his position of authority over Ms. Wilson‑Raybould [AG] to seek to influence, both directly and indirectly, her decision on whether she should overrule the Director of Public Prosecutions’ decision not to invite SNC-Lavalin to enter into negotiations towards a remediation agreement.

Therefore, I find that Mr. Trudeau contravened section 9 of the Act.”

In response to the official finding of the Canadian Ethics Office, Justin Trudeau said he “accepted the findings”, but “disagreed with the decision.”

Additionally, Justin from Canada refused to apologize for interfering in the criminal case, breaking the law and violating the duty of his office, because his goal was to protect Canadian workers who might have been negatively impacted if the company was impacted or was barred from doing business.

In essence, a ridiculous virtue-signalling defense. WATCH:

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Immediately the leftist Canadian media circled-the-wagons to protect the office of the Prime Minister.  The liberal media in Canada agree that all oaths of office are contingent upon only following laws, rules or governmental policies that advance liberalism.  Any liberal or left-leaning target that runs afoul of the laws of Canada can be excused if their intent is to assist the larger progressive cause.

All Canadian media agree, openly and publicly, that if a conservative prime minister was to engage in similar conduct, to the benefit of a company donating to conservative political candidates, that Prime Minister should be immediately removed from office.  It is the political ideology and intent of the office that determines the application of law.

Within the Canadian media response to the transparently illicit conduct of Prime Minister Trudeau, you discover why Canada has a closed media system, called a “cultural industry”.   By law, policy and regulation, including within trade agreements, the media business in Canada is protected by the government from competition.

The “cultural industry” laws are how the liberal Canadian government keeps control of narratives to ensure no political challenges to their ideology ever reach the electorate.  The closest comparison in media systems would be dictatorial state-run media in China, Iran, Turkey or similar ideologically controlled nations.

As a consequence, Prime Minister Justin Trudeau was just found by the U.S. equivalent of the Inspector General, to have violated the most fundamental principal of his office and the Canadian legal system; yet he will remain in office to advance the progressive agenda.

That’s Canada.

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Thomas Sowell on the Origins of Economic Disparities


Published on May 17, 2019

Recorded on April 1, 2019 Is discrimination the reason behind economic inequality in the United States? Thomas Sowell dismisses that question with a newly revised edition of his book Discrimination and Disparities. He sits down with Peter Robinson to discuss the long history of disparities among humans around the world and throughout time. He argues that discrimination has significantly less of a role to play in inequality than contemporary politicians give it credit for, and that something as incontrovertible as birth order of children has a more significant and statistically higher impact on success than discrimination. He discusses why parental attention is the most important aspect of a child’s intellectual development. Sowell goes on to break down different minority groups around the world who went on to have more economic and political success than their majority counterparts, such as the Indians in East Africa, Jewish people in Eastern Europe, Cubans in the United States, and the Chinese in Malaysia. He argues that there is an underlying assumption that if discrimination was absent equality would prevail, which historically has been proven wrong. Sowell goes on to discuss changes in crime rates and poverty since the expansion of US welfare programs in the 1960s and how this has had a huge impact on the success of African Americans. He talks about his own experience growing up in New York, how housing projects used to be considered a positive place to live, and his experience as the first member of his family to enter the seventh grade. Robinson asks Sowell his thoughts on the case for reparations currently being made in Congress, and Sowell presents an argument about why a plan for reparations is not only illogical but also impossible to implement, with so many US citizens’ ancestors arriving long after the Civil War. He also explains that slavery was common throughout the known world for thousands of years and that abolition movements didn’t begin anywhere in the world until the late 18th century. He reminds us that the United States was not the only country guilty of participating in slavery and yet is the only country debating reparations.

Canadian Economy Loses 69,300 Private Sector Jobs in July – Unemployment Rate Increased to 5.7%…


After reviewing the unexpected resignation of Canadian Ambassador to the United States, David MacNaughton, several aspects of the U.S-Canada economic relationship; and the larger political ideological relationship between the far-left in both countries; begins to take a sharper focus.

Justin from Canada has acquiesced to the influence of democrat Speaker of the House Nancy Pelosi, and agreed to postpone any USMCA ratification vote in Parliament until Pelosi gives Justin her approval.  For political purposes, Speaker Pelosi is attempting to stall the USMCA vote in congress, which directly supports China, as long as possible.

When we first reviewed this political quid-pro-quo, we wondered if Justin from Canada was actually willing to hurt his own economy just to assist the political efforts of U.S. democrats.  Unfortunately, the answer is a resounding yes.

OTTAWA—Canada’s unemployment rate rose in July as the economy unexpectedly shed jobs for a second straight month, fueling speculation over a possible Bank of Canada rate cut later this year.

The Canadian economy lost a net 24,200 jobs in July on a seasonally adjusted basis, Statistics Canada said Friday. Market expectations were for a net job increase of 12,500.

Canada’s jobless rate rose to 5.7% in July, up from 5.5% in the previous month. Market expectations were for the jobless rate to remain unchanged at 5.5%

[…] The July jobs report showed the number of part-time jobs declined by 12,600 in July and full-time positions fell by 11,600. The private sector dropped 69,300 jobs, while the public sector added 17,500. (read more)

In relative terms based on the scale of the economy, the loss of 69,300 Canadian private sector jobs, is the equivalent of 700,000 private sector jobs being lost in the United States in a single month.  The scale of the negative economic impact from Justin’s politically motivated economic decision-making is simply stunning.

Meanwhile the growth in both jobs and blue collar wealth/wages amid Main Street USA is booming.  In the same month Canada lost 24,000 jobs, the U.S. gained 164,000 jobs.

Flashback 2017:

The May 1–7, 2017, issue of Bloomberg Businessweek — featuring a picture of Trudeau headlined “The Anti-Trump” — caught President Trump’s attention, according to 4 sources with direct knowledge. Trump tore the cover off the magazine and wrote on it, in silver Sharpie, something to the effect of “Looking good! Hope it’s not true!” according to these sources.  (read more)

In the opaque background of this dynamic, the fingerprints remain visible.

 

China Brings Mainland Military Forces into Hong Kong – Protests Cry Freedom…


As the U.S-China trade confrontation continues, China is running out of dollars.  Beijing is burning through cash to prop up its manufacturing industries; and the currency devaluation only exacerbates the problem.  A weak Yuan, makes their exports cheap; but China is an economy of dependency, and relies upon dollars to pay bills.

Against this growing internal financial crisis, videos seem to confirm Chinese military moving into regions around Hong Kong as protests continue.  Hong Kong nationals staged a three-day protest at Hong Kong’s international airport to draw attention to their plight.

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HONG KONG (Reuters) – Hong Kong police fired tear gas at demonstrators in the working class district of Sham Shui Po on Sunday, as yet another day of protest marches turned into a confrontation between police and activists.

Ten straight weekends of increasingly violent protests have plunged Hong Kong into its most serious political crisis in decades, posing a challenge to the central government in Beijing.(link)

Many voices in the west have forgotten the lessons from Tienanmen Square, when the central Chinese government used the Mongolian army regulars to gain control over the protests. The authoritarian Chinese government is communist at its central core; despite the party leadership’s corruption and capitalistic wealth.

Videos show the Chinese military are moving into Hong Kong to position themselves against those voices who are demanding the region remain a free and autonomous open society.

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Kyle Bass

@Jkylebass

chinese army has invaded HK. The PLA is working hand-in-hand with the HK police to brutalize the protestors. They arrived August 1st and continue to multiply in numbers…US Travel advisory in HK.

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Kyle Bass

@Jkylebass

In Hong Kong, carrie lam(b) cheng yuet ngor has authorized lethal force against kids protesting for democracy and freedom. But here in the US, our president continues to think HK is “sufficiently autonomous”. Shooting at point blank.

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Kyle Bass

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Kyle Bass

Anti-government protesters unleash chaos across Hong Kong in unprecedented citywide rampage

City leader Carrie Lam warns demonstrators have gone beyond protests to attack national sovereignty, making clear there would be no compromise.

scmp.com

17 More Goldman Sachs’ People Indicted


Malaysia filed criminal charges on Friday against 17 current and former directors at subsidiaries of Goldman Sachs Group Inc (GS.N) following an investigation into a multi-billion-dollar corruption scandal that led to the demise of state fund 1MDB. Those charged include Richard Gnodde, chief executive of Goldman Sachs International, Michael Evans, president of Alibaba Group Holding Ltd (BABA.N) and a former director at Goldman Sachs (Asia) LLC, and Michael Sherwood, former vice chairman of Goldman Sachs Group. Each charge carries a maximum jail term of 10 years and a penalty of at least 1 million ringgit ($239,000).

An Alibaba spokeswoman said the company was aware of the charges against Evans and would continue to monitor the situation. UAE filed suit against Goldman Sachs where they announced: “This action seeks redress for a massive global conspiracy on the part of the defendants to defraud and injure plaintiffs,” said the lawsuit, which also named former executives from IPIC and its subsidiary Aabar Investments.

The U.S. bank has been under scrutiny for its role in helping to raise $6.5 billion through bond offerings for 1Malaysia Development Bhd (1MDB), the subject of corruption and money laundering investigations in at least six countries. It has been alleged that $2.7 billion of the proceeds were diverted and the offering statements filed with the regulators contained statements that were false, misleading or involved material omissions.

The SEC previously charged Goldman Sachs with fraud back in 2007, but of course, did nothing criminal because Goldman Sachs controls the SEC. Now the top adviser in the SEC is Alan Cohen who was head of Global Compliance and would have signed off on the Malaysian deal.

The rumor mill has been hot concerning Malaysia and Goldman Sachs for the past two years. As it was turning into a criminal investigation Lyod Blankfein coincidently decided to step down last year at age 63. That was announced last March when he said he would step down by the end of the year. Then in July 2018, Blankfein said his goodbyes. The London Financial News claimed it was an emotional departure.

Was it really a coincidence that Blankfein stepped down which appeared to be running for the exit door and then within three months the news breaks that he was deeply involved in the corruption scandal in Malaysia. As Bloomberg wrote: “Years before Goldman Sachs Group Inc. arranged bond deals now at the heart of globe-spanning corruption probes, the firm’s then-CEO Lloyd Blankfein personally helped forge ties with Malaysia and its new sovereign wealth fund, according to people with knowledge of the matter.”

Blankfein’s replacement did at least apologize for the conduct but continued to defend the firm.

The US Department of Justice charged the former Goldman bankers Tim Leissner and Roger Ng, as well as Malaysian financier Jho Low in this matter. Malaysia’s new charges were brought under a section of the Malaysian Capital Markets and Services Act that holds certain senior executives responsible for offenses that may have been committed by the firm. What everyone is waiting for is the indictment of Alan Cohen, the former head of Global Compliance since it is normally the compliance officer who does down for the firm. This time, Alan Cohen is at the top of the food chain in the SEC which will result in a major scandal for the Trump Administration.

“The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.” Rolling Stone’s Matt Taibbi wrote back in July 2009. He is correct, the truth about Goldman Sachs “is that it’s everywhere.” Taibbi’s now-famous phrasing captured Goldman Sachs Group Inc.’s (GS) ubiquity which is very hard to deny.

Normally, if a banking firm is charged criminally, it loses its license. That is not the case for Goldman Sachs which many call “Government Sachs” on the street. They have walked on water in the United States and have been also known as the “untouchables” in finance.

Goldman Sachs said the Malaysian charges were misdirected. “We believe the charges announced today, along with those against three Goldman Sachs entities announced in December last year, are misdirected and will be vigorously defended,” a Goldman Sachs spokesman in Hong Kong said.

Goldman Sachs tried to pretend that they were afforded no opportunity to dispute the charges in advance. “Under the Malaysian legal process, the firm and the individual entity directors were not afforded an opportunity to be heard prior to the filing of these charges, which do not affect our ability to conduct our current business globally,” they said. But in the United States, a grand jury is also secret and the target does not get a notice to dispute the charges either.

Goldman Sachs has been charged for omitting material facts in the bond offerings, among them that Malaysian financier Low Taek Jho was the operator and key intermediary for 1MDB. Low has been described by Malaysian and U.S. authorities as to the central player in the 1MDB scandal. He has denied wrongdoing and his whereabouts are unknown.

The fees that Goldman received were far above the norm. Dealers were not allowed to compete in bidding for the conversions of currencies.