Russia's Unreliable Aircraft Carrier Just Lost Another Plane

 

Russia's Unreliable Aircraft Carrier Just Lost Another Plane

by Terrell Jermaine Starr on Foxtrot Alpha, shared by Eve Peyser to Gizmodo

Gizmodo / 2016-12-05 19:22

The Admiral Kuznetsov transits the English Channel back in October. Photo credit: Getty Images

Russia's aircraft carrier off the coast of Syria is continuing a fine tradition of being more of a floating joke than an actual warship. Yet another Russian Navy Su-33 fighter jet crashed in the Mediterranean Sea attempting to land on the gross as hell Admiral Kuznetsov on Saturday.

The crash is the second Russian carrier-launched jet to end up in the drink in just three weeks, according to Aviationist. The cause of the incident reportedly was due to a snap of the arresting cable on the carrier, which is normally positioned across the decks of air carriers to slow jets landing at high rates of speed.

The pilot on the Su-33 was able to eject from the aircraft and was later saved by a search-and-rescue team. On November 14th, a MiG-29K crashed while trying to land on the aging Kuznetsov. That pilot also was able to eject from his plane and was later saved by a rescue team, according to the New York Times.

In case you haven't heard, the Admiral Kuznetsov is a broken down, black smoke exhausting piece of shit that should have been decommissioned years ago. It's so broken down that it sails with a tug that can pull it away in case it breaks down—which it does a lot.

The plumbing is so bad many of the toilets cannot be used. Seriously. It is the hooptie of the sea.

The Russian military stationed the the Admiral Kuznetsov off the coast of Syria to demonstrate its show of force in the region. The problem, however, is that the carrier wasn't designed for the kinds of missions for which it is being used.

"This carrier was never designed for projecting power on shore," said Pavel K. Baev, who studies Russian military reform at the Peace Research Institute Oslo, according to The Washington Post. "The fact of the military matter is that this deployment adds nothing, just absolutely nothing to the capabilities" that Russia has on the ground in Syria.

It doesn't even have a catapult system that is common with modern aircraft carriers. According to Popular Mechanics, the ship has had a number of mechanical issues. In 2009, its electrical system caught fire, leaving one crewman dead; in 2012, it had to be tugged away because it broke down in the Bay of Biscay.

Naval experts have said there is no practical reason for the Admiral Kuznetsov to be in operation, other than to prove a maritime might it really doesn't have. Foreign Policy wondered in September if it could even stay afloat during its mission off the coast of Syria.

If you do a quick Google search on the Kuznetsov, you'll find as plenty of articles clowning its mechanical issues. Which isn't great for Russia, a nation that is trying to prove it can compete with the U.S.military.

The recent incidents on the Admiral Kuznetsov are a huge public relations blow to the Russian military. Moreover, it reveals that Russia doesn't really care about the safety of its servicemen and women. Russia news agency TASS quoted Kremlin spokesman Dmitry Peskov essentially blowing off the latest crash incident.

"The talk, in the first place, is about the fact that the pilot has remained alive," Peskov said. Interestingly enough, that is what most people who drive beaters say about about their rides.

Ivory Tower Economist Tries To School Dilbert's Scott Adams On Trade... Fails

 With whom do you agree?

Ivory Tower Economist Tries To School Dilbert's Scott Adams On Trade... Fails

by Tyler Durden

Zero Hedge / 2016-12-05 18:50

Submitted by Thad Beversdorf via FirstRebuttal.com,

Today Donald J. Boudreaux, who is Professor of Economics and Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center at George Mason University, wrote an open letter to Dilbert creator Scott Adams.  The letter was a rebuttal to Scott disagreeing with Michigan Rep Justin Amash about Trump's trade policy.

Justin Amash had tweeted out that tariffs will hurt the consumer in higher prices.  Scott retorted that the tariffs will not be applied because the threat of applying a tariff on firms who chase cheap foreign labor but then sell that production back to the US consumer they just laid off will disincentivize the firms from leaving in the first place.  It was then that Mr. Boudreaux jumped in, stating unequivocally that Scott is wrong and Justin is right.

Boudreaux argues that while he agrees the tariff would actually not be applied it would stifle competition and thus consumers would pay a higher price.  Boudreaux seems to imply that low consumer prices are a top priority of trade policy.  Below is the main argument within Boudreaux's open letter to Scott Adams.

Rep. Amash is right and you are wrong.  Although no formal tax collection is triggered if Mr. Trump's threats prevent all offshoring, Trump's tariff – by restricting competition – would artificially reduce outputs and raise prices.  American consumers would pay unnecessarily higher prices, an outcome inseparable from the very purpose of the tariff.  That consumers pay these extra, unnecessary amounts to domestic producers rather than to domestic customs agents is irrelevant: the tariff forces all consumers of these products to pay extra, unnecessary amounts to some small group of fellow Americans who, rather than earn these higher payments, extract them using threats of state coercion.

Let me explain the logical fallacies that Mr. Boudreaux fails to recognize in his chivalrous attempt to defend Rep Amash and our existing international trade agreements (note there is nothing free trade about these agreements).

1. Boudreaux's entire argument is based on an unsubstantiated notion that offsetting the labor cost savings from cheap foreign labor with a tariff somehow limits competition.  This is equivalent to saying American production limits competition.    There are currently 28.5 million private firms producing in the US, more than ever before.  I've never seen any data to substantiate that American production limits competition. In fact, I find it quite an absurd proposition.  Unless Boudreaux can substantiate that claim, it simply cannot be accepted.  And if the basis of his argument is unsound then the rest of it is invalid.
2. Secondly is the implication that US firms chase cheap foreign labor so that they can pass those cost savings onto the consumer.  Price models are a function of what the market will bear, not cost.  The point of the cost savings is to drive profits, profits which over the past 5 years are paid directly to shareholders.  Dividends have almost no money multiplier effect.  And so reallocating labor income, which has the highest money multiplier effect, to profit is a net economic value destroyer not creator.
3. Even if consumers paid a higher price as a result of the tariff, which we know isn't true based on points 1 & 2 above, the offset of that is they would be paying a higher price with labor income earned as opposed to credit or welfare.  Meaning if I can keep my job, I'm ok paying a slightly higher price because while I might be able to buy less things I can still support my family without private or public debt.  And so to suggest the top objective of trade or any economic policy should be getting the lowest possible price is another absurd proposition.
4. Boudreaux suggests the tariff is state coercion yet fails to recognize the tariff is a reaction to a state intervention of free markets i.e. international trade agreements that allow labor cost arbitrage to exist without the naturally higher risks of the undeveloped nations that offer the cheaper labor (the cheap labor and higher risk being a function of the same underdeveloped societal infrastructure).  Higher return means higher risk.  Lower labor cost means higher ROI.  Higher ROI means higher risk.  But through state coercion, the higher risk is negated leaving just the higher ROI.  This is not free market.  This is state intervention.  The tariff is being used to level the playing field so to speak.

Mr. Boudreaux, while I appreciate your zeal for trade agreements, I am slightly surprised as to the naivety of your argument.  You haven't given the readers enough credit.  Something you PhD economists are going to be facing much more of in the coming years.  There is a movement to educate and draw in the American public to such economic discussions.  We will be better prepared to understand your theoretical, applicable and logical fallacies.  You should take note, and be better prepared next time.

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Welcome to Nordstrom, Can I Interest You in This Fancy Rock?

 

Welcome to Nordstrom, Can I Interest You in This Fancy Rock?

by Bryan Menegus

Gizmodo / 2016-12-05 17:13

The American home is replete with all manner of overpriced baubles and trinkets. But is your idlic suburban ranch house truly complete with an $85 rock in a bespoke leather pouch? Nordstrom thinks not.

"Medium Leather Wrapped Stone," as it's referred to on the Nordstrom store, is made by artist Peter Maxwell out of "smooth Los Angeles-area stone"—a city I had previously not associated with quarries. The 115-year-old retail chain seems, like you, not to know what exactly it is they're selling. Medium Leather Wrapped Stone's product description begins with a series of questions, almost as though it's talking you out of buying one. "A paperweight? A conversation piece? A work of art?" it probes before ultimately concluding that the function and purpose of a rock in a bag is "up to you."

$85 is a lot to pay for a total mystery. Thankfully, a smaller version exists for the reduced price of $65. Rocks come in sizes!

Far better than a stone in a sock made of animal skin is the comments made by customers on the product's page. "Have to say that this is truly a beautiful product, but I had to send it back because there aren't any doggone instructions. I don't even know how to turn the flippin thing on," FredDringus wrote, giving Medium Leather Wrapped Stone a meager three stars. "It's a little pricey," PatIsInnocent wrote to describe his transcendent purchase, "but the sales lady told me the rock was made by hand. That's got to be difficult."

Tell me about it PatIsInnocent. Maybe someday I too will be able to afford nice things.

[Racked]

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Time to End Discrimination Against Gays?

 

Time to End Discrimination Against Gays?

by Steve Chapman

Reason.com Full Feed / 2016-12-04 23:05

On gay rights, America has come a great distance in a short time. Remember the days, not so long ago, that gays stayed in the closet, sodomy was a crime, same-sex marriage was banned and people could be fired from their jobs because of their sexual orientation?

Actually, you don't have to try to remember that last. It's still the case in 28 states, including Mike Pence's Indiana, that holding hands with your same-sex partner in public can mean losing your livelihood. A bigoted boss can cashier a good employee for loving someone of the wrong gender.

This unprotected status is an anomaly under the 1964 Civil Rights Act, which forbids employment discrimination on the basis of "race, color, religion, sex, or national origin." African-Americans and other racial minorities are protected, Catholics and Muslims are protected, women are protected and immigrants are protected. Gays are not.......

Indian Prime Minister's Shake Down of Private Wealth - Reason.com

Indian Prime Minister's Shake Down of Private Wealth - Reason.com

Indian Prime Minister Narendra Modi stunned his country earlier this month when, out of the blue, he declared 85 percent of the nation's currency notes null and ironypoisoning via Foter.com / CC BY-SAvoid.

India's two highest rupee notes — Rs. 500 ($7.50) and Rs. 1,000 ($15) — will no longer be legal tender, and will be replaced with redesigned Rs. 500 notes and new Rs. 2,000 bills. Indians can swap a relatively small number of old bills for new ones by the end of the year, but only at designated banks and with proof of ID. Anyone trying to swap large sums of cash that they can't legally account for will be subject to investigation and legal action. And all the unswapped currency will stay with the government, a massive transfer of wealth from private citizens to the state/

Modi's fans see this as an audacious move to smoke out untaxed "black money" from India's informal economy, which constitutes anywhere from 25 to 40 percent of the nation's GDP. But in reality, this demonetization scheme is the equivalent of killing the patient to cure a headache. And it marks an end to India's three-decade flirtation with market liberalization.......

Court Allows IRS to Order Bitcoin Exchange Coinbase to Give Up Their Customers' Identities

 What happened to reasonable suspicion and the 4th Amendment? 

Court Allows IRS to Order Bitcoin Exchange Coinbase to Give Up Their Customers' Identities

by Brian Doherty

Reason.com Full Feed / 2016-12-02 20:19

Bad news for patriotic Americans who want to keep their bitcoin business to themselves this week from the Department of Justice:

A federal court in the Northern District of California entered an order today authorizing the Internal Revenue Service (IRS) to serve a John Doe summons on Coinbase Inc., seeking information about U.S. taxpayers who conducted transactions in a convertible virtual currency during the years 2013 to 2015. The IRS is seeking the records of Americans who engaged in business with or through Coinbase, a virtual currency exchanger headquartered in San Francisco, California.

"As the use of virtual currencies has grown exponentially, some have raised questions about tax compliance," said Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department's Tax Division. "Tools like the John Doe summons authorized today send the clear message to U.S. taxpayers that whatever form of currency they use – bitcoin or traditional dollars and cents – we will work to ensure that they are fully reporting their income and paying their fair share of taxes."....

The court's order grants the IRS permission to serve what is known as a "John Doe" summons on Coinbase. There is no allegation in this suit that Coinbase has engaged in any wrongdoing in connection with its virtual currency exchange business. Rather, the IRS uses John Doe summonses to obtain information about possible violations of internal revenue laws by individuals whose identities are unknown. This John Doe summons directs Coinbase to produce records identifying U.S. taxpayers who have used its services, along with other documents relating to their virtual currency transactions.

The actual order from U.S. District Court for the Northern District of California.

The actual summons.

As Ars Technica quoted from that summons, the government wants:

Account/wallet/vault registration records for each account/wallet/vault owned or controlled by the user during the period stated above including, but not limited to, complete user profile, history of changes to user profile from account inception, complete user preferences, complete user security settings and history (including confirmed devices and account activity), complete user payment methods, and any other information related to the funding sources for the account/wallet/vault, regardless of date.

A Coinbase spokesman via email said earlier this week when the DOJ announcement was issued:

Although Coinbase's general practice is to cooperate with properly targeted law enforcement inquiries, we are extremely concerned with the indiscriminate breadth of the government's request. Our customers' privacy rights are important to us and our legal team is in the process of examining the government's petition. In its current form, we will oppose the government's petition in court.....

We are aware of, and expected, the Court's ex parte order today. We look forward to opposing the DOJ's request in court after Coinbase is served with a subpoena. As we previously stated, we remain concerned with our U.S. customers' legitimate privacy rights in the face of the government's sweeping request.

Jim Harper at Cato noted when the news of the summons broke:

Equally shocking is the weak foundation for making this demand. In a declaration submitted to the court, an IRS agent recounts having learned of tax evasion on the part of one Bitcoin user and two companies. On this basis, he and the IRS claim "a reasonable basis for believing" that all U.S. Coinbase users "may fail or may have failed to comply" with the internal revenue laws.

If that evidence is enough to create a reasonable basis to believe that all Bitcoin users evade taxes, the IRS is entitled to access the records of everyone who uses paper money.

Anecdotes and online bragodaccio about tax avoidance are not a reasonable basis to believe that all Coinbase users are tax cheats whose financial lives should be opened to IRS investigators and the hackers looking over their shoulders. There must be some specific information about particular users, or else the IRS is seeking a general warrant, which the Fourth Amendment denies it the power to do.

Unfortunately, the District Court disagreed with Harper's sensible Fourth Amendment view.

My reporting from back in April 2014 when the IRS first declared that bitcoin is property whose sale creates potential tax liabilities, setting the inevitable stage for something like this. As I wrote then, if you keep your bitcoin use totally in the digital alt-coin world, very hard for the taxman to find you. But as soon as you try to interface with turning them into U.S. currency, certainly through a trying-to-be legitimate business, things will get trickier. (Some thoughts from Bitcoin expert Andreas Antonopoulos on the intersection of bitcoin and "know your customer" banking regs.)

Robert W. Wood at Forbes pretty much advises Bitcoin sellers to come clean if they haven't already before the IRS nabs them.

As far as I've been able to ascertain, backed up by experts in the bitcoin exchange space I spoke to, this is the first time the government has tried this particular summons trick on an exchange to root out possible bitcoin tax scofflaws.

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Americans Not In The Labor Force Soar To Record 95.1 Million: Jump By 446,000 In One Month

 

Americans Not In The Labor Force Soar To Record 95.1 Million: Jump By 446,000 In One Month

by Tyler Durden

Zero Hedge / 2016-12-02 08:08

So much for that much anticipated rebound in the participation rate.

After it had managed to post a modest increase in the early part of the year, hitting the highest level in one year in March at 63%, the disenchantment with working has returned, and the labor force participation rate had flatlined for the next few month, ultimately dropping in November to 62.7%, just shy of its 35 year low of 62.4% hit last October. This can be seen in the surge of Americans who are no longer in the labor force, who spiked by 446,000 in November, hitting an all time high of 95.1 million.

As a result of this the US labor force shrank by 226,000 to 159,486K, down from 159,712K a month ago, and helped the unemployment rate tumble to 4.6%, the lowest level since August 2007.

Adding the number of unemployed workers to the people not in the labor force, there are now over 102.5 million Americans who are either unemployment or no longer looking for work.

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Saudi Prince Calls for End of Ban on Women Drivers

Saudi Prince Calls for End of Ban on Women Drivers

A Saudi prince implored his country on Wednesday to dump the kingdom's longstanding ban on women drivers, calling it "unjust" and an "infringement on a woman's right."

Saudi Arabia is the only country in the world that prohibits women drivers.

Prince Alwaleed bin Talal took to Twitter to say "Stop the debate: Time for women to drive." He also issued a statement making an economic and social argument in favor of allowing women to get behind the wheel.

© Aziza Yousef drives a car in Riyadh, Saudi Arabia, Saturday, March 29, 2014, as part of a campaign t... Image: Saudi-women-driving

Kellogg’s Pulls Ads From Breitbart for ‘Not Aligning’ With Their Values; Amnesty Intl Accuses Them of Child Labor Violations

Kellogg’s Pulls Ads From Breitbart for ‘Not Aligning’ With Their Values; Amnesty Intl Accuses Them of Child Labor Violations:

Let's put this into perspective. The maker of poisonous breakfast cereals pulled their ads from Breitbart, a very popular news site associated with the Trump campaign, because it didn't align with their values -- set forth in their advertising guidelines.

They said associating with brands like Breitbart wasn't 'consistent with their brand or corporate image.'

In a scathing report on child labor violations for procuring palm oil in Indonesia, Amnesty International lays waste to corporate giants like Unilevel, Colgate, Proctor and Gamble and you guessed it Kellogg's.

Amnesty has testimony and video of children as young as 8 years old, pulled from school to work on a slave plantation to endure 'back breaking labor',  exposed to harsh chemicals and very heavy materials.

Let's be clear, placing ads on pro Trump site is not conducive with Kellogg's corporate image, but buying palm oil from a slave plantation that works 8 year old children is.

The human rights organisation traced a range of well-known products back to the palm oil company Wilmar, which it alleged employs children to do back-breaking physical labour on refineries in Indonesia.



Singapore-based Wilmar counts multinational companies including Kellogg’s, Unilever, Colgate-Palmolive, Reckitt Benckiser and Nestlé among its major clients, according to Amnesty.



In a 110-page report accompanied by a video, Amnesty alleged products sold by those companies were “tainted by appalling human rights abuses ... with children as young as eight working in hazardous conditions”.


“There is nothing sustainable about palm oil that is produced using child labour and forced labour. Something is wrong when nine companies turning over a combined revenue of £260bn in 2015 are unable to do anything about the atrocious treatment of palm oil workers earning a pittance.”



She said allegations of child labour at Wilmar were not “isolated incidents but are systemic and a predictable result of the way Wilmar does business”.



In the report, Amnesty alleged that children aged from eight to 14 were carrying out dangerous work without safety equipment, were exposed to toxic pesticides and regularly carried sacks of palm fruit weighing 25kg.



One 10-year-old boy, who claims he started working for a Wilmar supplier aged eight, said he gets up at 6am to gather fruit and works every day but Sunday. “I don’t go to school ... I carry the sacks with the loose fruit by myself but can only carry it half full. My hands hurt and my body aches,” he said.

In response to this report, Kellogg's said "any supply chain violations of our global palm oil principles, we work with the supplier to understand corrective actions and ensure they understand our commitments. If the concerns are not adequately addressed, we take action to remove them from our supply chain.”

The joys of globalism.

#DumpKelloggs

Venezuelan Hyperinflation | Armstrong Economics

https://www.armstrongeconomics.com/international-news/south_america/venezuelan-hyperinflation/

The Venezuelean hyperinflation is the direct result of what happens when the general population loses all confidence in the government. The current hyperinflation is reminiscent of Germany's hyperinflation following World War I, which was also the result of a Communist Revolution and the overthrow of the government giving birth to the Weimar Republic.  Venezuela's currency has become virtually worthless as was the case in Japan when the people simply refused to accept any coins issued by the Japanese government. In that instance, each new emperor devalued the outstanding money supply to 10% of his new issues. This led to Japanese accepting Chinese coins, but not Japanese.

In just two months, the bolivar plummeted 50% in value after dropping beneath the psychological 2000 level for the first time. Where the Japanese relied upon Chinese coins, in Venezuela they are using U.S. dollars.  The same is starting to emerge in India after the government demonetized the large denomination notes.

Oil accounts for nearly 95% of Venezuela's exports and composes 25% of the country's overall economy. Many economists are blaming Venezuela's socialist government for mismanaging budgets and over relying on oil-related industries. Acting as a typical politician, President Maduro will not take responsibility for the state of his country and is choosing to place the blame on an "economic war" being waged by overseas businesses predominantly in the U.S.

Venezuela's troubles began in 2014 when the price of oil took a nosedive. Instead of moving to separate the country from its dependence on oil, the Venezuelan government lost the confidence of the people and was compelled to issue more money to pay its bills lacking revenue flow.

As the prices of goods continue to soar, shopkeepers in Venezuela have taken to weighing bolivars and the black market for alternative currencies – namely U.S. dollars — is becoming prevalent.

The key to hyperinflation is NOT the issue of money, but the collapse in public confidence. The drop in confidence then causes the government to print more to meet its expenses. The assumption it is the increase in money supply assumes people blindly just look at the quantity of money. It is the fact peopleANTICIPATE the collapse and act accordingly, which then causes the government to increase the money supply.