Monday 29 May 2017

Rump-EU v Rest of the World.



Baltic Dry Index. 912 -06     Brent Crude 52.02

Freedom is the right to tell people what they do not want to hear.

George Orwell.

We open today with Germany making a leadership power grab in the rump-EU. Stung by President Trump’s demand that continental Europe pay its minimum share of NATO contributions, and alarmed at the prospect on an imminent Brexit, on Sunday Chancellor Merkel adopted a bunker approach to the rump-EU’s future. It will be German led, and apparently it will be military outside of NATO. Quite how the other rump-EU nations feel about this development, isn’t yet apparent, but they don’t seem to have been consulted. A Berlin led continental Europe, must be prepared to take on all comers.

Increasingly, it looks from London, that in the rump-EU, it will be the German way, uber alles. Germany can point at Greece, to any of the lesser states of the rump-EU in the event of any dissent. In Italy, ex-Prime Minister Renzi, already seems to be surrendering.

Below, the new law from Bunker Berlin.

People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.

George Orwell.

Sun May 28, 2017 | 10:24pm EDT

After summits with Trump, Merkel says Europe must take fate into own hands

Europe can no longer completely rely on its allies, German Chancellor Angela Merkel said on Sunday, pointing to bruising meetings of G7 wealthy nations and NATO last week.

Merkel did not mention by name U.S. President Donald Trump, who criticized major NATO allies and refused to endorse a global climate change accord, but she told a packed beer tent in Munich that the days when Europe could completely count on others were "over to a certain extent".

"I have experienced this in the last few days," she said.  "And that is why I can only say that we Europeans must really take our fate into our own hands - of course in friendship with the United States of America, in friendship with Great Britain and as good neighbors wherever that is possible also with other countries, even with Russia."

"But we have to know that we must fight for our future on our own, for our destiny as Europeans," Merkel said.

The two-day G7 summit in Italy pitted Trump against the leaders of Germany, France, Britain, Italy, Canada and Japan on several issues, with European diplomats frustrated at having to revisit questions they had hoped were long settled.

The American tycoon-turned-president backed a pledge to fight protectionism at the end of the G7 summit on Saturday, but refused to endorse the climate pact, saying he needed more time to decide.

----At the NATO summit on Thursday, Trump intensified his accusations that allies were not spending enough on defense and warned of more attacks such as this week's Manchester bombing unless the alliance did more to stop militants.

Turning to France, Merkel said she wished President Emmanuel Macron success, adding to applause: "Where Germany can help, Germany will help, because Germany can only do well if Europe is doing well."
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Sun May 28, 2017 | 9:54am EDT

 Italy's Renzi suggests next election be synchronized with Germany's

Former prime minister Matteo Renzi suggested on Sunday that Italy's next election be held at the same time as Germany's, saying this made sense "from a European perspective".

Germany will vote on Sept. 24. Elections are due in Italy by May 2018, but speculation is mounting that Italians could head to the polls in the autumn.

President Sergio Mattarella, the only figure with the power to dissolve parliament, has said elections should only be held after parliament has passed a new electoral law to harmonize voting systems for the Chamber of Deputies and the Senate.

Renzi, leader of the ruling center-left Democratic Party (PD), said in an interview with the newspaper Il Messaggero that his party "would not ask for early elections, but is not afraid of them either".

After regaining the leadership of his PD party in late April, Renzi has favored early elections. He told Il Messaggero that it may be possible to reach an accord on a voting system modeled alongside Germany's proportional model, as suggested by former center-right prime minister Silvio Berlusconi.

"In theory yes, but we must be cautious," Renzi said. "The German system would be a step forward in overcoming the current stalemate, but it's not a solution to all problems. Having a coalition in power is very risky."

Renzi, who stepped down as prime minister in December after Italians rejected his constitutional reform, said last week he would try to negotiate with other parliamentary factions to reach a deal to discuss at a PD executive meeting on May 30.

The possibility of a victory for the anti-establishment 5-Star Movement, which recent polls put neck and neck with PD at around 30 percent, has made Italy the biggest risk for the euro zone in the eyes of investors.
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Elsewhere, China, a non-member of the G-7 and uninvited, was unimpressed by events at the G-7. In other China news, China's economy  still seems to be slowing.

Sat May 27, 2017 | 9:57pm EDT

China 'strongly dissatisfied' with G7 statement on East, South China Seas

China is "strongly dissatisfied" with the mention of the East and South China Sea issues in a Group of Seven (G7) statement, and the G7 allies should stop making irresponsible remarks, a Chinese foreign ministry spokesman said.

China is committed to properly resolving disputes with all nations involved through negotiations while maintaining peace and stability in the East China Sea and South China Sea, spokesman Lu Kang said in a statement on Sunday.

China hopes the G7 and other nations would refrain from taking positions, fully respect the efforts of countries in the region in handling the disputes, and stop making irresponsible remarks, Lu said.

In their communique on Saturday, G7 leaders said they were concerned by the situation in the South China Sea and East China Sea. They also called for a demilitarization of "disputed features".

China has a dispute with Japan over a group of uninhabited islets in the East China Sea.

Beijing's extensive claims to the South China Sea are also challenged by Brunei, Malaysia, the Philippines and Vietnam, as well as Taiwan.
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Early China Data Shows Slowdown Biting Amid Credit Tightening

Bloomberg News
The first hints of China’s economic performance this month suggest that a slowdown in growth is taking hold, as policy makers beef up efforts to clamp down on financial risks.

The international-investor optimism that dominated in the earlier part of the year is now souring, as curbs on leverage push up the cost of domestic borrowing. Small and medium-sized companies are also reporting dented confidence, and sentiment among sales managers and in the steel market worsened.

A surprise cut in China’s debt rating by Moody’s Investors Service last week may mark a turning point for the world’s second-largest economy, as momentum weakens following a better-than-expected expansion in the first quarter. Yet the gloom shouldn’t spread too far, with consumers still spending, factory-gate prices gaining and home prices defying predictions of a hard landing.

Here’s what May’s earliest indicators show:
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In commodities news, the OPEC meeting dead cat bounce seems to have ended.

Sun May 28, 2017 | 10:58pm EDT

Oil falls as U.S. drilling undermines drive to tighten markets

Oil prices fell on Monday as a relentless rise in U.S. drilling undermined an OPEC-led push to tighten supply.
Trading activity will be subdued on Monday due to public holidays in China, the United States and Britain.

Brent crude futures were trading down 15 cents, or 0.3 percent, at $52.00 per barrel at 0253 GMT.

U.S. West Texas Intermediate (WTI) crude futures were down 17 cents, or 0.3 percent, at $49.63 per barrel.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers agreed last week to extend a pledge to cut production by around 1.8 million barrels per day (bpd) until the end of the first quarter of 2018. But the decision did not go as far as many investors had hoped and led to a heavy sell-off.

An initial agreement, in place since January, would have expired in June this year.

"The immediate market reaction to the May 25 OPEC decision is indicative of the weaker-than-expected impact production cuts had on bloated global crude stocks over H1 2017," BMI Research said in a note.
Despite the ongoing cuts, oil prices have not risen much beyond $50 per barrel.

Much of OPEC's success will depend on output in the United States, which is not participating in the cuts and where production has soared 10 percent since mid-2016 to over 9.3 million bpd, close to top producer levels Russia and Saudi Arabia.

U.S. drillers have now added rigs for 19 straight weeks, to 722, the highest amount since April 2015 and the longest run of additions on record, according to energy services firm Baker Hughes Inc.

Almost all of the recent U.S. output increases have been onshore, from so-called shale oil fields.

Even if the rig count did not rise further, Goldman Sachs said it estimates that U.S. oil production "would increase by 785,000 bpd between 4Q16 and 4Q17 across the Permian, Eagle Ford, Bakken and Niobrara shale plays."
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Decisions can only be reached in Europe if France and Germany agree.

Jean-Claude Juncker. Failed Luxembourg Prime Minister and ex-president of the Euro Group of Finance Ministers. Confessed liar. European Commission President. Scotch connoisseur.

Crooks and Scoundrels Corner

The bent, the seriously bent, and the totally doubled over.
Below, a hacker shows how to make life miserable at the NSA. Then again, he might not be telling the whole truth. Could he be an NSA plant? They wouldn’t do that, would they?
Date of Publication: 02.24.17. 02.24.17

Famed Hacker Kevin Mitnick Shows You How to Go Invisible Online

If you’re like me, one of the first things you do in the morning is check your email. And, if you’re like me, you also wonder who else has read your email. That’s not a paranoid concern. If you use a web-based email service such as Gmail or Outlook 365, the answer is kind of obvious and frightening.

Even if you delete an email the moment you read it on your computer or mobile phone, that doesn’t necessarily erase the content. There’s still a copy of it somewhere. Web mail is cloud-based, so in order to be able to access it from any device anywhere, at any time, there have to be redundant copies. If you use Gmail, for example, a copy of every email sent and received through your Gmail account is retained on various servers worldwide at Google. This is also true if you use email systems provided by Yahoo, Apple, AT&T, Comcast, Microsoft, or even your workplace. Any emails you send can also be inspected, at any time, by the hosting company. Allegedly this is to filter out malware, but the reality is that third parties can and do access our emails for other, more sinister and self-serving, reasons.
----The least you can do is make it much harder for them to do so.
Most web-based email services use encryption when the email is in transit. However, when some services transmit mail between Mail Transfer Agents (MTAs), they may not be using encryption, thus your message is in the open. To become invisible you will need to encrypt your messages.

Most email encryption uses what’s called asymmetrical encryption. That means I generate two keys: a private key that stays on my device, which I never share, and a public key that I post freely on the internet. The two keys are different yet mathematically related.

----So how would encrypting the contents of your email work?

The most popular method of email encryption is PGP, which stands for “Pretty Good Privacy.” It is not free. It is a product of the Symantec Corporation. But its creator, Phil Zimmermann, also authored an open-source version, OpenPGP, which is free. And a third option, GPG (GNU Privacy Guard), created by Werner Koch, is also free. The good news is that all three are interoperational. That means that no matter which version of PGP you use, the basic functions are the same.

When Edward Snowden first decided to disclose the sensitive data he’d copied from the NSA, he needed the assistance of like-minded people scattered around the world. Privacy advocate and filmmaker Laura Poitras had recently finished a documentary about the lives of whistle-blowers. Snowden wanted to establish an encrypted exchange with Poitras, except only a few people knew her public key.

Snowden reached out to Micah Lee of the Electronic Frontier Foundation. Lee’s public key was available online and, according to the account published on the Intercept, he had Poitras’s public key. Lee checked to see if Poitras would permit him to share it. She would.

Given the importance of the secrets they were about to share, Snowden and Poitras could not use their regular e‑mail addresses. Why not? Their personal email accounts contained unique associations—such as specific interests, lists of contacts—that could identify each of them. Instead Snowden and Poitras decided to create new email addresses.
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Technology 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?

Three-dimensional graphene: Experiment at BESSY II shows that optical properties are tuneable

Date: May 24, 2017

Source: Helmholtz-Zentrum Berlin für Materialien und Energie

Summary: An international research team has for the first time investigated the optical properties of three-dimensional nanoporous graphene at the IRIS infrared beamline of the BESSY II electron storage ring. The experiments show that the plasmonic excitations (oscillations of the charge density) in this new material can be precisely controlled by the pore size and by introducing atomic impurities. This could facilitate the manufacture of highly sensitive chemical sensors.

Carbon is a very versatile element. It not only forms diamonds, graphite, and coal, but can also take a planar form as a hexagonal matrix -- graphene. This material, consisting of only a single atomic layer, possesses many extreme properties. It is highly conductive, optically transparent, and is mechanically flexible as well as able to withstand loads. André Geim and Konstantin Novoselov received the 2010 Nobel Prize in Physics for the discovery of this exotic form of carbon. And just recently, a Japanese team has been successful in stacking two-dimensional graphene layers in a three-dimensional architecture with nanometre-sized pores.

Tuneable plasmons

A research team operated by a group at Sapienza University in Rome has now for the first time made a detailed investigation of the optical properties of 3D graphene at BESSY II. The team was able to ascertain from the data how charge density oscillations, known as plasmons, propagate in three-dimensional graphene. In doing so, they determined that these plasmons follow the same physical laws as 2D graphene. However, the frequency of the plasmons in 3D graphene can be very precisely controlled, either by introducing atomic impurities (doping), by the size of the nanopores, or by attaching specific molecules in certain ways to the graphene. In this way, the novel material might also lend itself to manufacturing specific chemical sensors, as the authors write in Nature Communications. In addition, the new material is interesting as an electrode material for employment in solar cells.
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The monthly Coppock Indicators finished April

DJIA: 20,941 +149 Up. NASDAQ:  6,048 +190 Up. SP500: 2,384 +152 Up.

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