Wednesday, 11 July 2018

Is It (GB) A Free Country? Trump’s Travels.


Baltic Dry Index. 1555 -54   Brent Crude 78.22

Over a long weekend, I could teach my dog to be an investment banker.

Herbert A. Allen, President of Allen & Company.

Possibly why so many became bailout dogs in 2008-2009.

Today, as we get ready for Trump’s Travels to Europe to nuke NATO, and the whirlwind, non-state visit of President Trump to his Scottish golf resorts, and on to a powwow with President Putin, and as GB gets ready to free itself from the dying EUSSR, we ponder the burning question “Is it (GB) a free country.”  Scroll down for more on that burning question.

We open with more on Trump’s vendetta against China (and everyone else.) If these new tariffs actually happen, nothing good lies at the end of this road, and it’s not as if this is anything new.

Interferences with international trade appear innocuous; they can get the support of people who are otherwise apprehensive of interference by government into economic affairs; many a business man even regards them as part of the "American Way of Life"; yet there are few interferences which are capable of spreading so far and ultimately being so destructive of free enterprise. There is much experience to suggest that the most effective way to convert a market economy into an authoritarian economic society is to start by imposing direct controls on foreign exchange. This one step leads inevitably to the rationing of imports, to control over domestic production that uses imported products or that produces substitutes for imports, and so on in a never-ending spiral.

Milton Friedman.

U.S. Moves Forward on Proposed $200 Billion China Tariff List

Bloomberg News
Updated on 11 July 2018, 05:25 GMT+1
 The Trump administration pushed ahead plans to impose tariffs on an additional $200 billion in Chinese goods by releasing a list of targeted products, escalating a trade war that may soon directly hit American consumers.

Hours later, China’s Commerce Ministry described the U.S. move as "totally unacceptable" and said it will be forced to retaliate. The statement on its website Wednesday didn’t give details of what retaliatory measures it plans.

The U.S. move sent markets skidding in Asia as Chinese stocks tumbled and the yuan weakened. The Shanghai Composite Index was down 1.9 percent, while Hong Kong’s Hang Seng Index slid 1.4 percent. The yuan dropped 0.36 percent to 6.6646 per dollar.

The 10 percent tariffs could take effect after public consultations end on Aug. 30, according to a statement from the U.S. Trade Representative’s office Tuesday. The proposed list of goods includes consumer items such as clothing, television components and refrigerators as well as other technology products, though it omitted some high-profile items like mobile phones.

If the latest tariffs proposed go into effect, duties implemented by the administration aimed squarely at China will cover nearly half of all U.S. imports from the Asian nation.

Trump isn’t backing down from a trade war that members of his own Republican party call unwise, American businesses decry and economists warn could derail the strongest global upswing in years.
More

Asian markets slump after U.S. announces $200 billion in new tariffs on China

By Dow Jones Newswire  Published: July 10, 2018 11:07 p.m. ET
Asian stock markets fell Wednesday after the Trump administration announced it plans to slap tariffs on a further $200 billion of Chinese imports.

Read: U.S. unveils tariffs on another $200 billion of Chinese goods

But benchmarks recovered from session lows, with indexes in China, Hong Kong and Japan all down around 1.5%. Australia’s S&P/ASX XJO, -0.65%  , Korea’s Kospi and Taiwan’s Taiex Y9999, -0.77%  narrowed their declines to less than 1%, while New Zealand’s benchmark NZ50GR, -0.16%   was little changed. S&P 500 futures ESH9, -0.76%   fell 0.8%

After three days of solid gains, Japan’s Nikkei NIK, -0.86%   was last down 1.3%, with exporters hit the hardest. Automakers Honda 7267, -1.04%  , Toyota 7203, -0.15%   and Nissan 7201, -1.97%   all fell, while chip-equipment maker Advantest 6857, +0.13%   and imaging manufacturer Canon 7751, -0.59%   dropped around 1%.

Tech and auto companies also weighed down South Korea’s Kospi SEU, -0.52%  , with Samsung 005930, -0.65%  and Hynudai 005380, -2.02%  slipping about 1%.

In China, the Shanghai SHCOMP, -1.87%   and Shenzhen 399106, -2.18%   composites recovered slightly after falling more than 2% in early trading. Hong Kong’s Hang Seng HSI, -1.44%   also stemmed early losses, with Tencent 0700, -1.76%  and AIA 1299, -0.66%   posting declines.

July 11, 2018 / 5:38 AM

China says plans by U.S. for additional tariffs completely unacceptable

BEIJING (Reuters) - China’s commerce ministry said on Wednesday the proposed U.S. tariffs on an extra $200 billion of Chinese goods is completely unacceptable, adding that Beijing will have to respond to the latest moves by Washington.

In a statement, the commerce ministry said the U.S. actions hurt America’s own interests, China and the rest of the world.

Trump continues to criticize European allies ahead of NATO summit

Xinhua | Updated: 2018-07-11 09:31
BRUSSELS - US President Donald Trump continued to criticize European allies on the eve of the North Atlantic Treaty Organization (NATO) summit in Brussels.

Trump arrived in Brussels on Tuesday evening for the NATO summit scheduled for Wednesday and Thursday, after which he is expected to visit Britain and later meet Russian President Vladimir Putin in Finland's capital Helsinki.

"The European Union makes it impossible for our farmers and workers and companies to do business in Europe (US has a 151 billion dollar trade deficit), and then they want us to happily defend them through NATO, and nicely pay for it. Just doesn't work!" Trump tweeted on Tuesday evening.

"Many countries in NATO, which we are expected to defend, are not only short of their current commitment of 2 percent (which is low), but are also delinquent for many years in payments that have not been made. Will they reimburse the U.S.?" he wrote in another tweet earlier in the evening.

The two tweets represented two major topics of criticism Trump has long held against US allies across the Atlantic: one is his belief that the European Union erected trade barriers against the US and as a result won surplus in the trade of goods, and the other that European members of NATO are not spending enough on defense.

Prior to boarding Air Force One for Europe, Trump already took jabs at European allies by other tweets, including "NATO countries must pay MORE, the United States must pay LESS. Very Unfair!"
More

Premier Li, German president pledge to safeguard free trade

By HU YONGQI in Berlin | chinadaily.com.cn | Updated: 2018-07-10 10:14
China and Germany agreed to take real actions to send a signal of firmly safeguarding multilateralism and free trade, while the two sides should strengthen cooperation in diverse fields, Premier Li Keqiang said on Monday in Berlin.

Li made the comment when meeting with German President Frank-Walter Steinmeier during his fourth trip to the European country as premier.

The premier said the two countries have maintained high-level development in bilateral relations. The fifth China-Germany intergovernmental consultation earlier on Monday set a roadmap for bilateral ties in the next stage, he said. Setting trade barriers is an outdated action in the 21st century and China would like to strengthen high-level exchanges with Germany to set an example of seeking common ground while reserving differences, and maximizing common interests, Li added.

Steinmeier congratulated on achievements made at the fifth intergovernmental consultation. As two large trading countries, both countries do not want to see free trade being threatened, he said.
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In this Great Trump Trade War against China, or maybe because of it, it is opening up opportunities for other nations, meanwhile the advancement of China continues apace. Trade wars may be easy to win, but by whom? In our massively interdependent world of cross border trade, are trade wars even winnable anymore?

Governmental measures constitute the major impediments to economic growth. Tariffs and other restrictions on international trade, high tax burdens and a complex and inequitable tax structure, regulatory commissions government price and wage fixing, and a host of other measures give individuals an incentive to misuse and misdirect resources, and distort the investment of new savings. What we urgently need, for both economic stability and growth, is a reduction of government intervention, not an increase.

Milton Friedman.

10 July 2018 Updated 10/7/2018

Siemens, Alibaba to advance cloud-based business in China

By Plastics News Europe
German technology company Siemens AG and Alibaba Cloud, the cloud computing arm of Alibaba Group, have joined forces to foster Industry 4.0 and digitalisation transformation in China.

In a memorandum of understanding signed in Berlin 9 July, the two companies agreed to leverage each other’s technology and industry resources to create an Internet of Things (IoT) platform to support I4.0 and manufacturing upgrade in China.

As part of this, Siemens’ cloud-based open IoT operating system MindSphere will be deployed and operated by Alibaba Cloud’s infrastructure for the Chinese mainland market.

Under the MoU, the companies will start collaboration immediately and aim to make MindSphere available on Alibaba Cloud in 2019.

“This cooperation is a landmark deal for bringing Industry 4.0-solutions to China as the world’s powerhouse of manufacturing,” said Joe Kaeser, President and CEO of Siemens AG.

Siemens expects the deal to strengthen its position in automation and digitalisation “in the industrial world”.

Also commenting, Simon Hu, Senior Vice President of Alibaba Group said the partnership would aim to speed up the adoption of IoT products and services, and create “industry-wide breakthroughs”.

As part of Siemens comprehensive digital offerings, MindSphere offers a wide range of device and enterprise connectivity options, advanced analytics, and closed-loop innovation with digital twin solutions.

Alibaba Cloud offers cloud computing services to businesses online as well as the Alibaba Group's own e-commerce ecosystem. According to the company’s website, Alibaba Cloud has a network of 18 international data centres across the globe.

Is Trump’s Car War a Bluff?

Welcome to the Atlantic City moment when his ambition outruns his skills.

July 10, 2018 7:06 p.m. ET
Truly the most challenging assignment in government today will be validating Donald Trump’s suspicion that foreign auto companies threaten U.S. national security.

We don’t envy Commerce Secretary Wilbur Ross, whose department is tasked with making the case.
Let’s see, 56% of U.S. cars are already built in domestic plants, and 78% if you count Canada’s and Mexico’s highly U.S.-dependent auto industries.

Mr. Trump likes factories. Foreigners are huge contributors to the U.S. manufacturing base, with 17 auto assembly plants here. Mr. Trump likes exports. Germany is the single biggest exporter of cars made in the U.S., shipping abroad 400,000 Mercedes and BMW cars a year.

The U.S. auto industry has been quietly aghast at Mr. Trump’s threat of a new trade war by imposing a 25% tax on European cars. Car makers have been pushing back in a low-key, white-papery way calculated not to invite the kind of tweets that Harley-Davidson elicited. Harley made the mistake of sounding as if Mr. Trump was at fault for European retaliation. GM has used only passive verbs to discuss the possible shrinkage of U.S. output and employment from a trade war.

Parts maker BorgWarner , in an official statement, carefully warned that “our customers could request that we move production of these technologies to another BorgWarner facility outside of the U.S.”

The main U.S. dealer trade group told Automotive News: “The president is rightfully concerned about trade imbalances and manufacturing jobs in the United States,” followed by a long “but” clause.

Then there’s this: What many of us would regard as a Trump victory, i.e., getting Europe to drop its 10% auto tariff, would not be regarded as such by the U.S. car makers if they had to give up America’s 25% tax on imported pickups.
More
https://www.wsj.com/articles/is-trumps-car-war-a-bluff-1531264000?mod=mhp

Lord Light, L.C.J.: This is in substance an appeal by an appellant appealing in statu quo against a decision of the West London Half-Sessions, confirming a conviction by the magistrates of South Hammersmith sitting in Petty Court some four or five years ago. The ancillary proceedings have included two hearings in sessu and an appeal rampant on the case, as a result of which the record was ordered to be torn up and the evidence reprinted backwards ad legem. With these transactions, however, the Court need not concern itself, except to observe that, as for our learned brother Mumble, whose judgments we have read with diligence and something approaching to nausea, it were better that a millstone should be hanged round his neck and he be cast into the uttermost depths of the sea.

A. P. Herbert. Uncommon Law. “Is It A Free Country?”

Crooks and Scoundrels Corner

The bent, the seriously bent, and the totally doubled over.

No crooks and scoundrels again today, they’ll be back in droves tomorrow I’m sure. Today it’s an ill wind and all that, though in this case that wind is a lack of rain in GB.

Roman forts and other wonders: Punishing heat wave reveals ancient settlements in Wales

It is a very exciting time to be an archaeologist in Wales

July 9, 2018 5:30 PM EDT
Archaeologist Toby Driver has, unlike his office-bound colleagues, spent much of the current heat wave/drought afflicting the United Kingdom — the seasonal average in Wales is 19 C, while present temperatures are 30-plus — peering down at a rain-starved landscape from a small plane.

Driver, a senior investigator for the Royal Commission on the Ancient and Historical Monuments of Wales (RCAHMW), has been on the hunt for crop marks. Rings and whirls and squares and unmistakable marks on the land, visible from the sky, indicating the presence of ancient settlements — Roman forts, Iron Age farms and Medieval castles — buried beneath.

If you didn’t already know, hot and dry weather is optimal for crop mark spotting. Wales’ ancient residents displaced soil and dug deep fortification trenches to protect their settlements.

All their ancient handiwork created moisture traps beneath the ground that the parched vegetation above has been drawing upon during the current drought. Plant life growing where the ditches used to be is lush and green, in contrast to a more depressingly brown landscape. And areas where there were once stone structures are particularly parched.

Meaning Driver, in his plane, has been spotting oodles of crop marks, including finding evidence of settlements previously not known to exist. In short: it is a very exciting time to be an archeologist in Wales. Here are some of Driver’s most amazing finds.

Castell Llwyn Gwinau
The old castle sits atop an isolated hill, all the better to see (potential) bad guys from. In its heyday, the castle would have included a keep and been surrounded by a protective ditch and palisades — trees, sharpened to points and arranged in a wall — to prevent attackers from climbing over them. This particular castle style was all the rage in England and Wales after the Normans, from present-day France, invaded in 1066. (See: Battle of Hastings, William the Conqueror and the death of King Harold, the last of the Anglo-Saxon kings, who assumed the throne after his brother-in-law, Edward the Confessor died). For medieval history buffs on holiday in Wales — the crop mark/ruin is near the town of Tregaron.

----Gaer Fawr Hillfort
Gaer Fawr is, or was, an Iron Age (think: about 800 BC — 100 AD) fort built atop a hill, an elevated view that, again, would have allowed its residents to see their enemies before they arrived at the fort’s ramparts. The ruin is about 33,000 square metres, has two entrances and a defensive wall measuring 10 metres wide by four metres high. Some, among the archeology in-crowd, have argued that the fort was actually unfinished. Its most recent attackers, meanwhile, appear to have been local farmers who, during an era of intensive ploughing in the 1970s, damaged the fort’s interior — assaults that continue to this day along what would have been the outpost’s western defences.

More with a few pictures.

“It cannot be too clearly understood that this is NOT a free country, and it will be an evil day for the legal profession when it is. The citizens of London must realize that there is almost nothing they are allowed to do. Prima facie all actions are illegal, if not by Act of Parliament, by Order in Council; and if not by Order in Council, by Departmental or Police regulation, or By-laws. They may not eat where they like, drive where they like, sing where they like, or sleep where they like.

 A.P. Herbert, Uncommon Law, "Is It a Free Country?”

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?

"World’s most efficient" bicycle drivetrain unveiled at Eurobike

Ben Coxworth 18 hours ago
Of all the items currently on display at this year's Eurobike show in Germany, one of the most attention-getting is CeramicSpeed's DrivEn pinion-style shaft-drive system. According to its designers, it creates 49 percent less friction than the high-end Shimano Dura Ace chain-and-derailleur setup.

At the heart of the prototype drivetrain is a cylindrical carbon fiber shaft, that reaches from the single chainring in front to a flat 13-speed cassette on the rear wheel.

Mounted on either end of that shaft are sets of very-low-friction ceramic bearings (there are a total of 21 of them), which engage the teeth on the chainring and the cassette cogs. As the rider pedals, the bearings transfer torque from the chainring through the shaft and into the rear wheel, turning it.

In its current form, DrivEn can't shift between gears, although BikeRadar reports that this could conceivably be managed using a wireless servo to move the rear bearing mechanism fore and aft relative to the cassette.

"CeramicSpeed has proudly accomplished what many have said couldn't be done," says company CTO Jason Smith. "We achieved a 99-percent efficient multi-speed drivetrain while eliminating the chain and complex rear derailleur."

That efficiency is reportedly achieved due to the fact that the system does away with the eight points of sliding friction that are present in a regular drivetrain, where the chain articulates while passing through the chainring, cassette and derailleur.

DrivEn was developed in partnership with the Mechanical Engineering Department at the University of Colorado, and has just received the 2018 Eurobike Award. There's currently no word on commercialization.

And for another take on the shaft-drive bicycle idea, check out the Alpha Bike concept.

 “And least of all may they do unusual actions 'for fun'. People must not do things for fun. We are not here for fun. There is no reference to fun in any Act of Parliament. If anything is said in this Court to encourage a belief that Englishmen are entitled to jump off bridges for their own amusement the next thing to go will be the Constitution. For these reasons, therefore, I have come to the conclusion that this appeal must fail. It is not for me to say what offence the appellant has committed, but I am satisfied that he has committed SOME offence, for which he has been most properly punished.

A.P. Herbert, Uncommon Law. "Is It a Free Country?”

The monthly Coppock Indicators finished June.

DJIA: 24,271 +221 Down. NASDAQ: 7,510 +267 Down. SP500: 2,718 +169 Down.
All three slow indicators moved down in March and have continued down in April. May and June. For some a new bear signal, for others a take profits and get back to cash signal

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