Tag Archives: Suddeutsche Zeitung

GLOBAL DEBT AT 317% OF GDP

The world’s debt burden stands at a staggering 317 per cent of global gross domestic product, just shy of its all-time high in 2016, according to the Institute of International Finance.   Years of low and negative interest rates have fed the debt habit:   since the 2008 financial crisis, the world has added an extraordinary $70tn in debt, or 25 per cent of GDP, with sovereign debt accounting for nearly 40 per cent of that increase.

“To be clear: responsibly incurred debt can play an important and constructive role in economic development.   Long-term investments that enhance productivity can foster a more prosperous future. Amid subdued growth in many parts of the world and a critical need for infrastructure, there are arguments to be made in support of using debt to foster growth.

“But too much debt is a risk for lenders and borrowers alike, as history has shown time and again.”

(“We need transparency to keep countries out of a debt spiral,” Axel Weber, Financial Times, 6/18)

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CURRENCY WARS

Europe has been warned. Any use of monetary levers to hold down the euro exchange rate will be deemed a provocation by the Trump administration.

Further cuts in interest rates to minus 0.5pc or beyond will be scrutinized for currency manipulation.   A revival of quantitative easing will be considered a devaluation policy in disguise, as indeed it is, since the money leaks out into global securities and depresses the euro.

The Bank for International Settlements says €300bn of Europe’s QE funding reached London alone between 2014 and 2017.

If the ECB copies the Swiss National Bank and starts to amass foreign assets directly to cap currency strength Europe will face certain retaliation.

(“Currency war is the next phase of global conflict and Europe, the chief parasite, is defenceless,” Ambrose Evans-Pritchard, Daily Telegraph, June 19th)

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BRUSSELS BRIEFING

Donald Trump’s found someone else in Europe he doesn’t like.   The US president launched a Twitter tirade against Mario Draghi after the ECB president said he was ready to inject new stimulus into the eurozone, sending the euro tumbling against the dollar.  (Brussels Briefing, Financial Times, 6/1)

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 TRUMP’S WAR

“President Donald Trump cannot want war with Iran.

   Such a war, no matter how long, would be fought in and around the Persian Gulf, through which a third of the world’s seaborne oil travels.   It could trigger a worldwide recession and imperil Trump’s re-election.

   It would widen the “forever war,” which Trump said he would end, to a nation of 80 million people, three times as large as Iraq.   It would become the defining issue of his presidency, as the Iraq War became the defining issue of George W. Bush’s presidency.

 And if war comes now, it would be known as “Trump’s War.”

In conclusion:

“Who wants a U.S. war with Iran?

   Primarily the same people who goaded us into wars in Iraq, Syria, Libya and Yemen, and who oppose every effort of Trump’s to extricate us from those wars.

   Should they succeed in Iran, it is hard to see how we will ever be able to extricate our country from this blood-soaked region that holds no vital strategic interest save oil, and America, thanks to fracking, has become independent of that.”    (“War with Iran would become “Trump’s War,” Pat Buchanan, 6/18)

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Iran shoots down US drone aircraft

Oil prices jump after action by Revolutionary Guard escalates tensions between Tehran and Washington (Financial Times, 6/20)

“Iran shoots down US military drone to send “clear message” to Trump”   (Independent, 6/20)

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GERMAN POLITICIAN ASSASSINATED BY NEO-NAZI

Germany’s federal prosecutors have taken over the investigation into the murder of Walter Lübcke, indicating that the killing of the Kassel district president on June 2 is being treated as a politically motivated terrorist act.

If indeed the murder is shown to have been politically motivated, it would be the first such assassination on a sitting German politician since the 1970s.

Trail included death threats, weapons.

A number of German outlets have reported details of the alleged far-right ties of the suspect arrested in the central city of Kassel in the early hours of Sunday morning.

The German daily Süddeutsche Zeitung reported on Monday that the 45-year-old man, named only as Stephan E., had a long criminal record, had already issued death threats via his YouTube channel, and that weapons were found during the search of his home.

According to the paper, Stephan E. had written a comment on YouTube in 2018 under his alias ‘Game Over’ that read, “Either this government abdicates soon or there will be deaths.”  ( “Walter Lubcke murder raises specter of neo-Nazi terrorism,”   Deutsche Welle news)

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Xenophobia stokes extreme-right activism

Puls has also noticed that neo-Nazis became more and more vocal in the last few years, following the influx of refugees who arrived in Germany in 2015 and 2016, which led to more anti-immigrant sentiment in the mainstream political debate and hate speech on social media.

As a supporter of Chancellor Angela Merkel’s policy, Walter Lübke himself was on the sharp end of much of this.

“One can certainly say that the propensity for violence has certainly risen following the right-wing debates around immigration,” he said. “The case of Lübcke is certainly very revealing here.   Walter Lübcke faced an enormous amount of hatred in 2015.   That does raise the question:   how much does it take before one person says ‘I’ll reach for a weapon?’   In certain circumstances, not much.”

( “Walter Lubcke murder raises specter of neo-Nazi terrorism,” Deutsche Welle news)

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Stand up to far right, Germany’s Angela Merkel tells Europe

The resignation of Austria’s vice chancellor led German politicians to warn against alliances with populists.   Chancellor Merkel spoke out against right-wing populism as many are now demanding new Austrian elections.   (DW)

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NEO-NAZIS IN AMERICA

The definition of a neo-Nazi is someone who belongs to an organization that is similar to the German Nazi Party of Adolf Hitler.

“Frontline” (PBS) this week showed the growth of neo-Nazis across America.   It showed synagogues that are now doing everything they can to prepare for further mass shootings.

It also interviewed members of neo-Nazi groups and showed a perverse link with the current Administration.    “To make America great again, you would have to make America white again”,  is a direct quote from a leader of the neo-Nazi movement, the Waffen.

“FRONTLINE and ProPublica continue reporting on the resurgence of white supremacist groups in the United States.   “Documenting Hate:   New American Nazis” investigates a violent neo-Nazi group that has actively recruited inside the U.S. military, and examines the group’s terrorist objectives.” (Frontline).

Overlooked here is the major contribution made by liberals, in the growth of Nazism.   The massive influx of immigrants since 1965 has led directly to anti-immigrant feeling.   The 2008 financial crisis contributed greatly to anti-semitism.

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ZUCKERBERG LAUNCHES NEW CURRENCY

“He causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has [a]the mark or the name of the beast, or the number of his name.” (Rev 13:16-17)

Zuckerberg’s $538 billion social network on Tuesday announced plans to create a new digital currency and financial system that it claims will revolutionize banking. Facebook announced the new currency, called Libra, in a 12-page white paper that promised vast improvements on bitcoin and other volatile digital coins.” (New York Post, 6/18)

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THE DARK SIDE OF ZUCKERBERG’S POWERFUL NEW CRYPTO COIN

“In its quest for world domination, Facebook has already disrupted everything from the media industry to American democracy, drawing scrutiny for things like its pitiful handling of user data, its monopolistic tendencies, and a “digital gangster” mentality along the way.   Now, as regulators in Washington, D.C., bear down on Facebook, co-founder Mark Zuckerberg has acquired a new target: the global financial system.

“On Tuesday, Facebook announced plans to debut Libra, a cryptocurrency it has been developing for more than a year. Described by the company as “a simple global currency and financial infrastructure that can empower billions of people,” Libra will partner Facebook with Mastercard, Visa, Uber, and an array of other high-profile companies in what the New York Times called “the most far-reaching attempt by a mainstream company to jump into the world of cryptocurrencies.”

“David Marcus, who is leading Facebook’s blockchain technology research, is stoked.   “It feels like it is time for a better system,” Marcus told The Times. “This is something that could be a profound change for the entire world.”   Even Zuckerberg, who has spent much of the last two years on a sort of apology tour, sounds like he’s regained his change-the-world mojo.   “Being able to use mobile money can have an important positive impact on people’s lives because you don’t have to always carry cash, which can be insecure, or pay extra fees for transfers,”    Zuckerberg wrote in a Facebook post.   “We aspire to make it easy for everyone to send and receive money just like you use our apps to instantly share messages and photos.”   (Eric Lutz, Vanity Fair, 6/18)

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THREAT TO US FOOD SUPPLY

“US beekeepers lost 40% of colonies over past year” – The Guardian 6/19

A CALL FROM SINGAPORE

Nestled in the heart of Southeast Asia and just at the tip of the Malaysian peninsula, the island country of Singapore is a melting pot of Chinese, Malay, Indian and Western cultures. The Lion City is one of the world’s most dynamic, vibrant and prosperous nations.

A friend from Singapore called me at the weekend.   Amongst other things we discussed President Trump’s visit to the region, which is now taking place.   He told me that Singaporeans (mostly ethnic Chinese) believe that America is on the way down and China is on the way up.   In other words, the most powerful nation in Asia and the Pacific is now NOT the US, but China.   Every nation in the region is having to come to terms with Chinese domination.

My friend, who is over 80, remembered the events of 1942 that led Singaporeans to realize the British Empire was on its way down.   One of the greatest military defeats in British history was the fall of Singapore on the 15th of February in 1942.   The story is told of Lee Kwan Yew, the first prime minister of Singapore.   While he was a student, the British blew up the causeway that linked the city to the mainland, to delay Japanese forces.   The sound of the explosion could be heard across the island.   When Mr. Lee’s British headmaster came out of the school building and asked him what the noise was, Mr. Lee responded: “It is the sound of the British Empire falling.”

Effectively, it was.   The fall of the British built and developed city started a series of events that led to American domination of Asia and the Pacific.   Now, China’s economic success means Beijing has greater clout in the area than Washington — many nations are looking to Beijing rather than Washington, to secure their future.

I posted an article to my blog in February to commemorate the 70th anniversary of the first time anybody realized that the US had overtaken the United Kingdom as the world’s pre-eminent nation.   It’s all recounted in the book “Picking up the Reins,” by Norman Moss.   It wasn’t until the following year that the term “Leader of the Free World” was applied to the US.   Seventy years later, we find people openly talking about China overtaking the United States. Chinese resentment at US domination is illustrated by an item on today’s BBC World News website.   Apparently, the Chinese use the term “Boss of the World” to describe America.

China isn’t the only power center trying to take over from America. The European Union is also determined to provide an alternative to American hegemony, with Germany’s Angela Merkel now often labeled “the Leader of the Free World.”   Bible students will not be surprised at these developments.

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IRAN – SAUDI STRUGGLE

Keep an eye on the growing Sunni-Shia struggle in the Middle East.

Saudi Arabia leads the former and Iran the latter.   The two countries are fighting a proxy war in Yemen.   The latest development was a missile attack on the Saudi capital, fired by Houthi rebels, who are backed by Iran.

Iran also supports Hizbollah in Lebanon, whose prime minister resigned on Friday out of fear that he, like his father, will be assassinated.

From Monday’s Jerusalem Post:  “Saudi Arabia said on Monday that Lebanon had declared war against it because of attacks against the Kingdom by the Lebanese Shi’ite group Hezbollah.”

Syria is also caught up in the Sunni-Shia conflict.   Iran supports the Syrian president, Bashir Assad.

The West is solely focused on ISIS, a Sunni Islam group which is fighting Iranian backed forces in Iraq and Syria.   ISIS is re-grouping in a number of countries, claiming to represent and defend Sunnis from the Shi’ite heretics.

It’s all very complicated.   Not at all as simple as TV news depicts.

A new area of conflict is in the Sahara, where the US lost four military personnel last month.   Most attention was focused on President Trump’s call to the young wife of one of the men who died. Little attention has been given to the wider problem of a growing conflict right across the Sahel.

The West seems to think ISIS has been defeated; the reality is that the organization has dispersed and formed new radical terrorist groups in a number of different countries.  ISIS fighters have also been returning home to western nations – we should expect more terrorist attacks following the “defeat” of ISIS.

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WALL STREET’S BREXIT WARNING

Big banks are worried about Brexit.   A group of large financial institutions with big London operations, including JP Morgan Chase, Goldman Sachs and HSBC, has told US commerce secretary Wilbur Ross that Britain’s unstable government and slow progress in Brexit planning may force them to start moving thousands of jobs out of  the City in the near future.   The lack of clarity over a transition deal is making them nervous.

Their concerns are unlikely to be assuaged by the latest chaos in Theresa May’s cabinet.   Mrs. May is under pressure to strip two more cabinet ministers of their jobs following separate fiascos involving Priti Patel and Boris Johnson.   And the EU has warned that the UK has less than a month to make concessions on a divorce settlement.   The FT’s editorial outlines how the British government’s flailing at home is translating into weakness abroad: “Allies are increasingly wondering whether Mrs. May’s government has the focus or ability to play Britain’s traditional global position — let alone the enhanced role pledged by Brexit.”   (Financial Times, 11/8)

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TEXAS CHURCH ATTACK

26 people were shot dead in church Sunday, following a man’s argument with his mother-in-law.   Twenty others were injured, some very seriously.

This was the 307th incident of mass murder in the US this year. Today is the 310th days of the year, so, in effect, the US is experiencing an average of one mass attack per day.   A mass murder incident is defined as the murder of four or more people.

No other nation in the world sees so much violence.   Yemen, in a civil war between Shia and Sunni Muslims (see segment above), has the second highest incident rate.   Statistically, you would be safer living in Yemen, than in the United States.

I’ve always believed that people have a right to defend themselves, a right that goes back at least to the time of Henry II in the 12th century and perhaps goes back to the ancient Anglo-Saxon kingdom prior to the Norman ascendancy.  The second amendment of the US constitution guarantees that right.   After an attack in London a few weeks ago, I pointed out that if one member of the public, just one, had been carrying a weapon, the terror attack might have been thwarted.

President Trump raised the issue of mental health in the context of mass shootings at a press conference in Tokyo.   Mental health is certainly a major issue.   But easy access to guns, especially by the mentally ill, is also a factor and needs to be addressed.   It’s time for that presidential commission of inquiry into mass gun violence.   Let the public have their say.   They are the ones that are dying, even in church.

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100-YEAR ANNIVERSARY OF RUSSIAN REVOLUTION

November 7th is the anniversary of the Russian Revolution that brought the communists to power.   Not surprisingly, Russians are not enthused about the anniversary.   They rejected communism over 25 years ago.

There is still talk of a restoration of the monarchy, though most people do not seem to be in favor and do not expect it to happen.

There are lessons here from both France and Spain, two countries that were once dominated by their respective leaders, Charles de Gaulle and General Franco.   Both were strong men, who were vain enough to think that nobody could possibly replace them after their deaths.   Both men thought that the best way to preserve their nations in the future was through the restoration of their national monarchies.

De Gaulle was a close friend of the Comte de Paris, the descendant of the Orleanist monarch, Louis Phillipe, who ruled France from 1830-1848.   The Comte was aware of de Gaulle’s desire to restore the monarchy.

In 1968, France was rocked by student riots and violence across the country.   DeGaulle presented constitutional reforms (not including a restoration) that were rejected, leading to his resignation as President of France in April, 1969.   He died one year later.   De Gaulle, the inspiration behind the Fifth Republic in 1958, need not have worried  — the Fifth Republic remains to this day.

General Franco of Spain, a fascist dictator, had more time to think about the Spanish succession, proclaiming that his heir and successor was to be Juan Carlos, of the Bourbon line of monarchs. As soon as Franco died in 1975, Juan Carlos was proclaimed king.   Rather than continuing Franco’s conservative ideology, the new King dedicated himself to protecting Spanish democracy, thereby at the same time preserving the monarchy.   He even had the respect and support of Spanish communists.

Vladimir Putin may be thinking along the same lines.   He’s been a very strong leader, with a 90% approval rating at times.   He must be fearful of Russia’s future after he leaves the scene.

The restoration of the Romanov dynasty along Spanish lines, may be just what he’s thinking.   He’s already reviving Russian culture, and has helped the church take center stage.

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SYRIA SIGNS UP TO PARIS ACCORD

The US is now the only country in the world that has not signed up to the Paris climate treaty.   Syria was the only other holdout, but has now signed.

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PARADISE PAPERS SCANDAL

The Anglo-Saxon world loves its scandals, especially when its leaders are exposed.   In this regard, the Paradise Papers did not disappoint.

While TV audiences are focused on who has what and why, it should be emphasized that absolutely no one “exposed” broke the law.  They simply took advantage of legal tax loopholes, just as most people do, only theirs is on a much bigger scale than the average citizen.

The only law-breaking going on here was by the German newspaper Suddeutsche Zeitung, which somehow gained access to private financial information.   The paper’s partners in this enterprise included the British Guardian newspaper and the New York Times.  No surprises there.

Another concern is this:   the revelations are the latest “scandal” to undermine our institutions.   As if the Harvey Weinstein and other sexual revelations are not enough, we now have nightly reports that Queen Elizabeth II (and others) have been protecting their assets by moving them beyond the control of national governments.

Times have certainly changed.   Fifty years ago, royal tour-guides would proudly announce that the British monarch was the richest woman in the world.   Now, she’s not even in the top 500 wealthiest people in Britain (J.K. Rowling heads the female list), and people are getting riled about it.

The amount involved was only 10 million pounds ($13 million).

Exactly 100 years after the class warfare of the Russian Revolution, people have learned nothing.   All socialism brought was “equal shares of misery for all” (Margaret Thatcher’s definition).   Do we really want to embrace it again, naively thinking it will improve all our lives?