Thursday, 8 September 2016

EU Proposes More Taxes.



 Baltic Dry Index. 773  +28     Brent Crude 48.67

LIR Gold Target in 2019: $30,000.  Revised due to QE programs.

The whole history of civilization is strewn with creeds and institutions which were invaluable at first, and deadly afterwards.

Walter Bagehot.

Despite 8 years of ZIRP, QE forever, and a year of rising insanity of negative interest rates, we seem to be back with the air running out of the global economy again. According to the central banksters, we were supposed to be in the promised land of milk and honey long before now. But then again what do they know. They never saw the great crash of 2008 coming, to a man said if  John Bull voted for Brexit, the UK economy would collapse, and a legion of accursed dangerous gambling banksters, would trek off to Amsterdam, Frankfurt, Paris and Zurich. So far we haven’t got rid of a single dangerous bankster. UK taxpayers are still on the hook for every last one of them, when the next Lehman hits, which is getting closer with every passing day on NIRP. Now the EUSSR is proposing more taxes.

Bigger share of EU budget could come from national taxes: advisory group

Wed Sep 7, 2016 6:04pm EDT
The European Union could raise more funds from national taxes specially earmarked to finance particular programs under plans flagged on Wednesday by an advisory group hoping to make the bloc more transparent and closer to citizens.

Under the plan, the EU could raise more revenues directly from member states' taxes, which currently constitute only about 10 percent of its total budget.

This could help reduce the bitter wrangling among the EU's 28 member states that regularly mars negotiations over the calculation of national payments to the EU budget, which currently account for more than two-thirds of EU revenues and are based on the countries' wealth.

The EU is keen to consider alternative revenues, especially in view of the planned exit of Britain, one of the largest contributors to its budget, following its June 23 referendum.

The current EU budget, totaling around one trillion euros, runs from 2014 till 2020 inclusive.

Mario Monti, a former Italian prime minister and chair of the advisory group, suggested increasing the share of EU revenues coming from taxes at the expense of the payments from national budgets.

He also proposed a direct link between taxes raised at the national level and spending on specific policies such as security.

"There are certainly ways to devise 'own resources' (EU revenues) linked to an objective, a priority or a policy. This would make the financing of the EU more understandable to our citizens," Monti told lawmakers in the European Parliament.

Monti said his group was studying the possibility of raising funds from national taxes on motor fuel, financial activities or carbon emissions.
More

First Factories, Now Services Signal Cracks in U.S. Economy

Some cracks could be starting to appear in the picture of an otherwise resilient U.S. economy.
An abrupt drop in the Institute for Supply Management’s services gauge on Tuesday to a six-year low is the latest in a string of unexpectedly weak data for August. Other less-than-stellar figures include an ISM factory survey showing a contraction in manufacturing; a cooling of hiring; automobile sales falling short of forecasts; and an index of consumer sentiment at a four-month low.
While there is hardly any evidence that growth is falling off a cliff, the run of disappointing figures make it tougher to argue that the underlying momentum of the world’s largest economy is holding up. It also potentially complicates the task of Federal Reserve policy makers, who are debating whether to raise interest rates as soon as this month; traders’ bets on a September move faded further after the report on service industries, which make up almost 90 percent of the economy.
“The latest set of ISM numbers is shockingly weak,” said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York. “It certainly gives the doves at the Fed more ammunition. It makes the Fed’s conversation at the September meeting that much more contentious.”
The ISM’s non-manufacturing index slumped to 51.4, the lowest since February 2010, from 55.5 in July, the Tempe, Arizona-based group reported. The figure was lower than the most pessimistic projection in a Bloomberg survey.
More

Saudi Cost-Cutting Drive May Cancel $20 Billion of Projects


September 6, 2016 — 2:30 PM BST Updated on September 7, 2016 — 12:38 PM BST
Saudi Arabia is weighing plans to cancel more than $20 billion of projects and slash ministry budgets by a quarter to repair finances squeezed by low oil prices, people familiar with the matter said, efforts that analysts expect to slow economic growth.
The government is reviewing thousands of projects valued at about 260 billion riyals ($69 billion) and may cancel a third of them, three people said, asking not to be identified as the discussions are private. The measures would impact the budget for several years and may include transport, housing and healthcare projects, according to two of the people. The government plans to carry out the review within six months, they said.
A separate plan includes merging some government ministries and eliminating others, two people said, also speaking on condition of anonymity. The benchmark stock index dropped the most among Middle East markets monitored by Bloomberg.
More

Elsewhere it was no one bring up the elephant in the room.

Asia leaders tiptoe around South China Sea tensions

Thu Sep 8, 2016 1:04am EDT
Asian leaders played down tensions over the South China Sea in a carefully worded summit statement on Thursday, but even before it was issued Beijing voiced frustration with countries outside the region "interfering" in tussles over the strategic waterway.

The heads of 10 Southeast Asian nations, as well as U.S. President Barack Obama and Chinese Premier Li Keqiang among six other leaders, "reaffirmed the importance of maintaining peace, stability, security and freedom of navigation in and over-flight in the South China Sea".

But the draft of a statement to be issued in Vientiane, Laos, tiptoed around the regional strains caused by competing claims to areas of the strategically important sea.

"Several leaders remained seriously concerned over recent developments in the South China Sea," said the draft.

The statement, seen by Reuters, made no reference to a July ruling by a court in The Hague that declared illegal some of China's artificial islands in the sea and invalidated its claims to almost the entire waterway.

Obama said on Thursday the ruling had helped clarify maritime rights. "I recognize this raises tensions but I also look forward to discussing how we can constructively move forward together to lower tensions," he said at a summit meeting.

Officials said that talks on Wednesday between leaders of the Association of Southeast Asian Nations (ASEAN) and China's Li had gone smoothly.

But in a statement later from China's Foreign Ministry, Li was paraphrased as saying China was willing to work with Southeast Asian countries in "dispelling interference ... and properly handling the South China Sea issue".

He did not elaborate, but such wording is typically used by Chinese leaders to refer to not allowing countries from outside the region with no direct involvement in the dispute, like the United States, from getting involved.
More

“It is hard for us, without being flippant, to even see a scenario within any kind of realm of reason that would see us losing one dollar in any of those [Credit Default Swap] transactions.”

Joseph J. Cassano,  former head of A.I.G. Financial Products, London, August 2007. AIG was bailed out with 85 billion September 2008, after Cassano’s riskless CDS blew up.
At the Comex silver depositories Tuesday final figures were: Registered 28.80 Moz, Eligible 134.06 Moz, Total 162.86 Moz. 

Crooks and Scoundrels Corner

The bent, the seriously bent, and the totally doubled over.
Today, those dirty killer diesel cheats at Volkswagen are getting ready to rollout their first battery powered, commercial van. If they catch on, at least they might offset some of the killer pollutants in our cities, spewing out from their cheating diesel engines.

Volkswagen says van drivers' electric eureka moment yet to come

Wed Sep 7, 2016 8:04am EDT
Volkswagen (VOWG_p.DE) will launch its first battery-powered van later this month as it shifts to zero-emission vehicles following its diesel cheating scandal, but customers are still skeptical about the benefits of going electric.

"If electric drives offer no distinct benefits to cost-oriented entrepreneurs, they will not join in," Eckhard Scholz, chief executive of VW's commercial vehicle unit said.

Scholz said practical issues with the day-to-day use of electric vans as well as concerns about the total costs of ownership make it harder for battery-powered vans and commercial vehicles to take off.

"The typical customer for commercial vehicles has yet to be convinced," he added in emailed comments to Reuters.

VW, facing billions of dollars in fines and customer compensation linked to its tainted diesel engines, is cutting costs across group to fund a transformation focused on electric cars and on-demand mobility services.

Electric vehicles have become the holy grail for carmakers, with new entrants such as Tesla and technology giants like Alphabet's Google posing a competitive threat.

The van division, accounting for no more than about 2 percent of VW's 213 billion euros ($239 billion) of annual group sales, will use the Sept. 21-22 Hanover trucks show to present its first battery-powered model, the e-load up! mirco van.

Scholz complained that representatives and owners of mainly privately-run small businesses such as electricians and plumbers had been excluded from talks between the German government and carmakers such as VW and Daimler, who earlier this year agreed on sales incentives and more charging stations to spur demand for electric cars in Europe's biggest auto market.

VW is making an aggressive push into electric cars at its core namesake brand and its Audi and Porsche premium divisions, with the goal of launching more than 30 zero-emission cars across the group by 2025.
More

"Those entrapped by the herd instinct are drowned in the deluges of history. But there are always the few who observe, reason, and take precautions, and thus escape the flood. For these few gold has been the asset of last resort."

Antony C. Sutton

Solar  & Related Update.

With events happening fast in the development of solar power and graphene, I’ve added this section. Updates as they get reported. Is converting sunlight to usable cheap AC or DC energy mankind’s future from the 21st century onwards? DC? A quantum computer next?

Nanotubes morphed into tougher carbon for spacecraft, satellites

Date: September 6, 2016

Source: Rice University

Summary: Researchers turn nanotubes into nanodiamonds and other forms of carbon by smashing them into a target at hypervelocity. The results will help in the design of light, strong materials for aerospace applications.
Superman can famously make a diamond by crushing a chunk of coal in his hand, but Rice University scientists are employing a different tactic.
Rice materials scientists are making nanodiamonds and other forms of carbon by smashing nanotubes against a target at high speeds. Nanodiamonds won't make anyone rich, but the process of making them will enrich the knowledge of engineers who design structures that resist damage from high-speed impacts.
The diamonds are the result of a detailed study on the ballistic fracturing of carbon nanotubes at different velocities. The results showed that such high-energy impacts caused atomic bonds in the nanotubes to break and sometimes recombine into different structures.
The work led by the labs of materials scientists Pulickel Ajayan at Rice and Douglas Galvao at the State University of Campinas, Brazil, is intended to help aerospace engineers design ultralight materials for spacecraft and satellites that can withstand impacts from high-velocity projectiles like micrometeorites.
The research appears in the American Chemical Society journal ACS Applied Materials and Interfaces.
Knowing how the atomic bonds of nanotubes can be recombined will give scientists clues to develop lightweight materials by rearranging those bonds, said co-lead author and Rice graduate student Sehmus Ozden.
"Satellites and spacecraft are at risk of various destructive projectiles, such as micrometeorites and orbital debris," Ozden said. "To avoid this kind of destructive damage, we need lightweight, flexible materials with extraordinary mechanical properties. Carbon nanotubes can offer a real solution."
More

The monthly Coppock Indicators finished August.

DJIA: 18401  +18 Up NASDAQ:  5213 +16 Up. SP500: 2171 +18 Up.

No comments:

Post a Comment