Monday, June 16, 2014

Russia Rejects Ukraine's Gas Deal; 2am Eastern Deadline Looms



As suspected given the huge distance between the bid and offer, the EU-brokered Ukraine-Russia gas deal has failed:
  • GAZPROM CEO MILLER LEAVES SITE OF UKRAINE GAS TALKS
  • GAZPROM SAYS TALKS ENDED, DEADLINE WON'T CHANGE (negotiate that!)
  • RUSSIA REJECTED EU'S GAS PROPOSAL: OETTINGER
  • UKRAINE WAS READY TO ACCEPT EU PROPOSAL ($300-$385): PRODAN (lol!!)
Gazprom seeks $1.95bn from Ukraine for past shipments of gas by the 10am Moscow timedeadline (2amET) and will continue to seek upfront payments for any further shipments.
As Reuters notes,
Russia and Ukraine failed to resolve a gas pricing dispute at talks and a 0600 GMT deadline for Ukraine to pay $1.95 billion in gas debts still stands, a spokesman for Russian natural gas producer Gazprom said on Monday. Spokesman Sergei Kupriyanov said after talks in Kiev that Russia would switch to an advance payment system if it did not receive the money, meaning Moscow could cut off gas supplies to Ukraine.
Cutting supplies could disrupt the gas flow to the European Union.
"The talks in Kiev ... finished around 2:30 a.m. Moscow time (2230 GMT on Sunday). The Russian side is expecting payment of the accumulated gas debt of $1.951 billion before 10 a.m. (0600 GMT) on June 16," Kupriyanov said.
"If the funds are not paid, gas supplies will, as was announced earlier, be switched to a pre-payment system."
Russia and Ukraine disagree how much Kiev should pay for the natural gas it receives from Russia.
European Energy Commissioner Guenther Oettinger told reporters in Kiev that he had made a compromise proposal during talks which began late on Sunday but Moscow had declined the offer. This follows after weeks of Oettinger assuring anyone who cares to listen to him that a deal was assured. Apparently not.
The lack of a deal is hardly surprising given the distance between bid and offer (as Bloomberg notes),
EU proposed gas price range of about $300-$385/kcm, Naftogaz CEO Kobolyev says at news conference in Kiev.

Gazprom sought about $500/kcm; Ukraine won’t pay $500/kcm: Kobolyev

Ukraine was ready to accept EU proposal: Ukraine Energy Minister Proda
It seems the market had begun to expect this failure...
OAO Gazprom sank to a one-week low in New York on concern Ukraine won’t pay the Russian producer money it owes for natural gas supplies by today’s deadline, potentially disrupting shipments through the country.

...

“There is a risk,” Mattias Westman, who oversees about $3.6 billion in Russian assets as chief executive officer at Prosperity Capital in London, said by phone on June 13. “Investors are focusing on the outlook for Gazprom’s revenue if there are disruptions of gas supplies to Europe.”
But now the next phase of the Russia vs Ukraine/Europe escalation commences, as Russia truly flexes its commodity muscles.

"Cluster Of Central Banks" Have Secretly Invested $29 Trillion In The Market



Another conspiracy "theory" becomes conspiracy "fact" as The FT reports "a cluster of central banking investors has become major players on world equity markets." The report, to be published this week by the Official Monetary and Financial Institutions Forum (OMFIF), confirms $29.1tn in market investments, held by 400 public sector institutions in 162 countries, which "could potentially contribute to overheated asset prices." China’s State Administration of Foreign Exchange has become “the world’s largest public sector holder of equities”, according to officials, and we suspect the Fed is close behind (courtesy of more levered positions at Citadel), as the world's banks try to diversify themselves and "counters the monopoly power of the dollar." Which leaves us wondering where are the central bank 13Fs?
While most have assumed that this is likely, the recent exuberance in stocks has largely been laid at the foot of another irrational un-economic actor - the corporate buyback machine. However, as The FT reports, what we have speculated as fact for many years now (given the death cross of irrationality, plunging volumes, lack of engagement, and of course dwindling credibility of central planners)... is now fact...
Central banks around the world, including China’s, have shifted decisively into investing in equities as low interest rates have hit their revenues, according to a global study of 400 public sector institutions.

“A cluster of central banking investors has become major players on world equity markets,” says a report to be published this week by the Official Monetary and Financial Institutions Forum (Omfif), a central bank research and advisory group.The trend “could potentially contribute to overheated asset prices”, it warns.

...

The report, seen by the Financial Times, identifies $29.1tn in market investments, including gold, held by 400 public sector institutions in 162 countries.

...

China’s State Administration of Foreign Exchange has become “the world’s largest public sector holder of equities”, as the report argues is “partly strategic” because it “counters the monopoly power of the dollar” and reflects Beijing’s global financial ambitions.

...

In Europe, the Swiss and Danish central banks are among those investing in equities. The Swiss National Bank has an equity quota of about 15 per cent. Omfif quotes Thomas Jordan, SNB’s chairman, as saying: “We are now invested in large, mid- and small-cap stocks in developed markets worldwide.” The Danish central bank’s equity portfolio was worth about $500m at the end of last year.
So there it is... conspiracy fact - Central Banks around the world are buying stocks in increasing size.
To summarize, the global equity market is now one massive Ponzi scheme in which the dumb money are central banks themselves, the same banks who inject the liquidity to begin with.
That would explain this.

That said, good luck with "exiting" the unconventional monetary policy. You'll need it.

Sunday, June 15, 2014

Report: Obama Admin Knowingly Letting Illegal Immigrant Gang Members into US

 
+TAG

President Barack Obama's administration is knowingly allowing illegal immigrant gangsters from Mexico and Central America into the United States, and some are even being reunited with their family members.
The gang members reportedly belong to some of the most dangerous gangs in Central America and Mexico, like MS-13, but Border Patrol agents are handcuffed, especially if the illegal immigrants are deemed to be "minors."
According to National Review, Border Patrol agents who "recognize the gang-affiliated tattoos of minors crossing the border must treat them the same as anybody else." An Arizona Border Control agent said that it was upsetting that a lot of the gang members are "16 or 17 years old and a lot of them are not going to face deportation." 
Chris Cabrera, the vice president of the National Border Patrol Council Local 3307 in the Rio Grande Valley told National Review that Border Patrol agents have reunited dangerous gang members with their families in the United States. He asked, “If he’s a confirmed gang member in his own country, why are we letting him in here?”
“I’ve heard people come in and say, ‘You’re going to let me go, just like you let my mother go, just like you let my sister go. You’re going to let me go as well, and the government’s going to take care of us,’” Cabrera told the outlet. “Until we start mandatory detentions, mandatory removals, I don’t think anything is going to change. As a matter of fact, I think it’s going to get worse.”
In a letter to House Speaker John Boehner (R-OH) and Senate Majority Leader Harry Reid (D-NV) on Thursday, Arizona Governor Jan Brewer, as Breitbart News reported, wondered "what consideration is being given – and what is being done – to determine if any of these illegal aliens have criminal histories or gang affiliations."
Brewer mentioned that "MS-13, one of the world's most notorious international gangs, has strong ties to several of the Central American countries from which these aliens are arriving.""The administration's refusal to properly verify that violent criminals are not among those entering the United States shows an alarming lack of concern for our homeland's security," she wrote. "As a nation, we cannot sit back and allow this policy to continue."
Illegal immigrant children -- including gang members from Mexico and Central America -- are making the trip to America because they have been told -- through word of mouth, in newspapers, and even on television and radio commercials -- that the Obama administration will not deport them, especially if they are minors, once they arrive in the United States.

Saturday, June 14, 2014

CARSON: A better alternative to Obamacare

When I was an intern at Johns Hopkins Hospital in the 1970s, I was very impressed by the caliber of patients on the wards. There would be presidents and CEOs of large corporations, as well as queens and crown princes of various countries, many of whom were dying of horrible diseases and all of whom would be quite willing to give all their wealth and titles for a clean bill of health.
It was easy to understand that there is not much in life that is worthwhile without your health. It is by far our most important possession, which we should jealously protect. For this reason, I heartily agree that we as a nation need to focus significant emphasis and resources on providing good health care for all of our citizens. My question is this: Can we provide this without turning over control of our most important possession to the government?
Some will say we have already relinquished it, so why talk about it any further? Others say only the poor are affected by Obamacare, and everything remains the same for all the others. Of course, this is not true, since the many regulations associated with the health care law affect everyone. Also, the economic impact does not occur in isolation.
Rather than complain about Obamacare, it might be useful to begin to discuss some enhancements or future alterations that can make it work effectively or provide an alternative if it fails. The first question is, what do you need for good health care in America?
You need a patient, a health care provider and a mechanism of payment. Along came a middleman — namely, the government and the insurance companies — to facilitate the relationship. Now the middleman has become the primary entity, with the health care provider and the patient at its beck and call. The whole enterprise has been turned upside down.
In order to right the ship, we need to return the responsibility for good health care to the patient and the health care provider. One of the best ways to do this is through health savings accounts, which patients can control. Even if the federal government provided such an account for every American citizen that was increased by $2,000 each year, it would cost less than $700 billion a year and everyone would be covered.
Keep in mind the fact that more than 150 million Americans are employed and their $2,000 per year in most cases would be happily supplied by the employer if that was their only health care obligation. This would make employers much more likely to want to expand their businesses and hire more people, and it would decrease the government’s entitlement obligations by hundreds of billions of dollars per year.
At least a quarter of the $2,000 per year would be devoted to bridge insurance or catastrophic insurance, and all citizens would have the right to contribute to their health savings accounts from other sources without limit. It would also be possible for people to transfer funds between accounts within a family.
For example, if a husband needed care and was a thousand dollars short, his wife, son, daughter and father could make contributions from their accounts to cover the expense. This would essentially turn each family into its own private insurance company with no middleman.
It should also be possible for everyone to donate up to 5 percent of the value of their health savings accounts to anyone of their choosing in any given year. For example, if there was someone in their church or an associate at work in need and for some reason didn’t have adequate resources in his account, his fellow members and associates could band together and donate a portion of their accounts to cover the expense.
This would create a strong sense of community, which is a very good thing. Since one could pass his savings on to a family member or anyone of his choosing at the time of death, there would be no incentive to spend everything in the account before dying.
Over the course of a lifetime, it is likely that most people would have accumulated quite a significant amount in their health savings accounts, and it should be possible after reaching a certain dollar amount for people to withdraw a percentage of their savings for their personal use in any way they deem fit. For some elderly people, this could serve as a very nice retirement supplement.
As time passed, individuals and families would accumulate extremely large amounts of money, and the government obligation would become smaller. Instead of the government becoming a bigger part of each person’s life, it would diminish, reducing the need for ever-increasing revenue streams.
This is just the basic framework of an alternative system to Obamacare that involves thinking outside of the box. With additions from positive and creative individuals, it could provide universal coverage that is simple to understand and truly affordable.
Ben S. Carson is professor emeritus of neurosurgery at Johns Hopkins University.


Read more: http://www.washingtontimes.com/news/2013/oct/22/carson-a-better-alternative-to-obamacare/#ixzz34cqUyh8T
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Friday, June 13, 2014

NBC Paid Chelsea Clinton $600,000 Annual Salary For Occasional Work

Hillary Clinton may have left the White House "dead broke" in her own words over a decade ago, but the same can hardly be said about her daughter, Chelsea, who as Politico revealed today, was being paid an annual salary of $600,000 at NBC News before switching to a month-to-month contract earlier this year.
As a reminder, the younger Clinton, who previously worked as an analyst at $12 billion hedge fund Avenue Capital in a quid-pro-quo which its owner Marc Lasry, a close friend of Bill Clinton, had hoped would bring him a fast track appointment to the French ambassador position (and which was scuttled last year after several of his poker-playing acquaintances were charged in a mob gambling ring), joined NBC News as a “special correspondent” in November 2011. "She was up for renewal or non-renewal this year. Instead, the sources said, the network decided to keep her on the payroll on a month-to-month basis so that the two parties could sever ties if Clinton’s mother, Hillary, runs for president."
So what exactly did Chelsea do to command such a hefty salary?
As special correspondent, Clinton worked on service-related feature assignments for NBC’s “Rock Center with Brian Williams” until the show’s cancellation in June 2013. Clinton has since worked on packages for NBC Nightly News.

In that time, Clinton’s principal occupation has been the Bill, Hillary and Chelsea Clinton Foundation, where she has been a major force in steering her parents’ charitable work in the final years of her mother’s tenure at the State Department, and since then. This April, she announced that she was pregnant. Clinton is due to deliver her first child in the fall, and it’s unclear if she would resume work with NBC after that.
In other words, "occasional work"
Ironically, even as the US rages at cases of domestic investment banks abusing nepotism and hiring Chinese princelings in exchange for lucrative banking contracts, nobody finds the Clinton arrangement with what is supposed to be an objective, impartial media outlet even remotely disturbing.
Well, maybe some do:
When Clinton joined NBC, many media critics chafed at the network’s decision to employ a former first daughter with no experience in journalism. The New York Post referred to Clinton as “just another spoiled, aimless child of rich, successful parents chauffeured through adulthood by Mommy and Daddy’s connections.”
But before NBC is accused of pandering solely to democrats, recall that in 2009 NBC Universal, it hired George W. Bush’s daughter Jenna Bush Hager to serve as a correspondent on the “Today” show. In 2011, it hired Sen. John McCain’s daughter Meghan McCain as a contributor on MSNBC.
In other words, nepotism from one extreme to the other.
But the good news is that for all complaints about lack of wage inflation, it clearly does exist... for a very lucky few.

BMW Adds GoPro Video Camera to Cars

In what the German carmaker calls the “first-ever, mass-produced integration” with a car’s on-board entertainment system, BMW announced on Thursday that ConnectedDrive-equipped BMW and Mini cars will be able to add a GoPro camera giving drivers a way to take video while driving.
The hands-free, high-definition video camera made by GoPro Inc. will have six pre-set camera modes according to BMW: Leisure Drive Facing Out, Night Driving, Sport Drive Facing Out, Drive Camera Facing In, Winding Road Time-lapse, and Straight Road Time-lapse. The camera can be mounted either inside or outside the car and the WiFi-connected camera communicates with a GoPro App installed on an Apple Inc. (NASDAQ: AAPL) iPhone 4S or later model.
Aiming and starting or stopping the camera’s recording function are controlled by the iPhone’s GoPro App and the driver gets access to the App through BMW’s ConnectedDrive or the Mini’s Connected menu displayed on the car’s central screen.
In February GoPro filed confidentially for an initial public offering (IPO). At the time it was reported that the company was seeking to raise about $400 million at a valuation north of $2.3 billion, the level at which the company last raised venture funding in 2012. Taiwan manufacturing giant Hon Hai Precision Industry Co. Ltd. (aka, Foxconn) pumped $200 million into GoPro at that time.


Read more: BMW Adds GoPro Video Camera to Cars - Apple Inc. (NASDAQ:AAPL) - 24/7 Wall St. http://247wallst.com/autos/2014/06/12/bmw-adds-video-cameras-to-cars/#ixzz34WNFc46D
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Iraq’s Terrorists Are Becoming a Full-Blown Army

The group so extreme it got booted from al Qaeda controls huge swaths of territory. And now ISIS has got the heavy weaponry to back it up.
With the fall of Mosul on Tuesday, Iraq’s al Qaeda offshoot has not only seized the country’s second-largest city, it appears it also has come into possession of the heavy weapons and vehicles the U.S. military had provided Iraq’s military to fight them.
That’s terrible news for America’s few allies left in Iraq as the Islamic State of Iraq and the Sham (ISIS) morph from terrorist menace to a military force capable of over-running an army the U.S. military trained for nearly a decade. It also calls into question the American government’s decision to withdraw the last of its forces from Iraq in 2011. Three years later that withdrawal now appears premature.
ISIS themselves appear to be pleased with the booty of the Mosul campaign. On Twitter the group posted a photo of a beaming Umar al-Shishani, a senior ISIS commander, examining a captured American-made Humvee, which had already been driven from the Iraqi city to the eastern Syrian town of Deir ez-Zor. “Umar al-Shishani inspects spoils of war…Looks quite pleased,” the tweet said.
General Najim al-Jabouri, a former mayor of Tel Afar, which is a little more than 31 miles from Mosul, told The Daily Beast the bases seized by ISIS this week would provide the group with even more heavy weapons than they currently control. “The Iraqi army left helicopters, humvees, cargo planes and other heavy machine guns, along with body armor and uniforms,” the general, who is now a scholar at the National Defense University, said. He said he was able to learn about the equipment from soldiers and other politicians in and around Mosul with whom he keeps in touch.
General Najim is not alone in this assessment. Jack Keane, a retired four-star Army general who was a key adviser to General David Petraeus during the counter-insurgency campaign in Iraq in 2007 and 2008 known as the surge, said ISIS has now established itself as a formidable military force.
“This organization has grown into a military organization that is no longer conducting terrorist activities exclusively but is conducting conventional military operations,” he said. “They are attacking Iraqi military positions with company- and battalion-size formations. And in the face of that the Iraqi security forces have not been able to stand up to it.”
“We in Anbar want U.S. air and military support because what happened in Mosul could happen in Anbar and we want to prevent it.”
There were signs this was coming. Sheik Jassim Muhammad Suwaydawi, one of the remaining pro-American tribal leaders in western Iraq, told The Daily Beast on Tuesday that his forces have fought ISIS companies that drove tanks in western Iraq. “ISIS is using heavy weapons, in some cases even tanks because of the weakness of the Iraqi Army.”
It was not supposed to be this way. Back in 2008, U.S. counter-insurgency commanders touted the Iraqi city of Mosul, 200 miles northwest of Baghdad, as a model success in the American “troop surge” that helped contain the Sunni-Shia civil war. But today Mosul became the de facto capital of a jihadist newcomer that is not only crumbling the authority of the Iraqi government but also overshadowing al Qaeda.
The siege of Mosul by ISIS, who overran the northern city on Tuesday after Iraqi forces fled posts and government buildings, also amounts to a severe blow to the government of Nouri al-Maliki. The Iraqi government has floundered in its efforts to stop the country from sliding back into a vicious spiral of bloodshed that claimed more than 8,800 lives last year alone.
Following the loss of his country’s second-largest city, the hard-pressed Iraqi prime minister is now turning to the U.S. for more assistance, reportedly asking the Obama administration for missiles and artillery—although he has not asked for a return of U.S. troops, a request unlikely to be viewed favorably either in Washington, D.C., or by Maliki’s Shia Muslim supporters.
Sheik Jassim told The Daily Beast. “The situation on the ground has been deteriorating for the last seven months, but in the last couple of days it has significantly gotten worse.” He added, “We in Anbar want U.S. air and military support because what happened in Mosul could happen in Anbar and we want to prevent it.”
The resurrection of ISIS in Iraq began a year ago. Last summer ISIS staged a successful jailbreak at the infamous Abu Ghraib prison, freeing many of its leaders. After the jailbreak ISIS not only expanded into neighboring Syria while breaking away from al Qaeda’s central command in Pakistan, the group also took Fallujah, the site of one of the Iraq war’s most infamous battles in 2004.
At this point Iraqi leaders in Baghdad are considering asking the Kurdish militia known as the Peshmerga to intervene in Mosul. A senior official with the Kurdistan Regional Government told The Daily Beast that lower-level Iraqi officials have floated the idea today of Kurdish forces stepping into Mosul, a Sunni Arab majority city that is close to Kurdish territory, to try to restore order. This official said: “We have significant interests and assets in the region,” although he noted that ISIS has not attacked Kurdish targets in western Iraq.
That isn’t the case in Syria, where Syrian Kurds have been locked in a ferocious months-long struggle with ISIS and have been unable to maintain the advances they were managing in the winter.
“The jihadists have mounted several attacks in recent weeks,” Kurdish activist Kovan Direj told The Daily Beast in a phone interview.
The capture of Mosul won’t make life any easier for the Syrian Kurds. It is a further major step in the establishing of ISIS, which is made up at its core of battle-hardened Iraqis but has attracted fighters from across the Middle East, Central Asia and Europe, as the most successful jihadi group in history in terms of strategic territory controlled or land battles won.
ISIS’s rise since its formation in 2010 by Abu Bakr al-Baghdadi has taken many analysts by surprise: Premature obituaries were written when the jihadi group, which emerged from the Islamist insurgency in Iraq, was disowned this year by al Qaeda’s top leaders, who were furious with its brazen refusal to obey orders to withdraw to Iraq, allowing the compliant Jabhat al-Nusra the unchallenged al Qaeda franchise in Syria.
The Iraqi government is not the only one seemingly unable to halt the expansion of ISIS, which has grabbed a swath of cross-border land stretching from Iraq’s Mosul up through Iraq’s Anbar province and all the way west to the Syrian town of Al Bab on the outskirts of Aleppo.
Since being disavowed in February, ISIS has fiercely competed with al Qaeda to secure the allegiance of affiliates and jihadi groups across the Middle East. And for months jihadi religious scholars have been waging theological debate and lining up behind core al Qaeda’s leader Ayman al-Zawahiri or al-Baghdadi in the struggle for jihadi supremacy.
Success breeds success, say analysts. The dramatic seizing of Mosul will only add to ISIS’s luster, helping it to recruit more fighters as it seeks to carve out a “caliphate” across western Iraq and eastern Syria—much as 9/11 was a recruitment driver for al Qaeda. Jihadist social media sites were jubilant Tuesday. “Jihadis are ecstatic with ISIS’s achievement,” say researchers at the Middle East Media Research Institute, a Washington-D.C.-based nonprofit.
Mosul’s capture is being presented by ISIS as a validation of al-Baghdadi’s jihad strategy, one that focuses on controlling territory and proto-state building. Al Qaeda in its videos and websites focuses on global jihad; ISIS in its propaganda celebrates towns captured and land controlled, notes Pieter Nanninga, a Mideast scholar at the University of Groningen in The Netherlands.
There are also funding and logistical imperatives for ISIS to pursue the proto-state strategy.  The group has been able to fund itself by running extortion rackets in the towns it controls in Iraq and Syria and from oil smuggling—essential revenue streams with al Qaeda dominating funding from jihadist-sympathizers in the Gulf.
With its overrunning of Mosul ISIS has taken a significant step in its carving out of a caliphate that is reshaping both Iraq and Syria.
Nadette de Visser contributed to this article.