Flash Briefing

THESE FLASH BRIEFING ARE FOR MY SON IN MARINE CORPS BOOT CAMP. I POST THEM HERE FOR YOU ENJOYMENT.

From the WSJ

The Clinton email scandal continues to smolder, now focusing on military drone strikes in Pakistan. Clinton sits atop this smoldering mess like a mother hen, and so far so good, but if this ever ignites, she will likely be consumed like a cartoon hen.

​ More below the fold.

In the economy, finally, the economists seem to be acknowledging that the US economy is deeply lackluster, and are now seeing slower jobs growth. 

The Puerto Rico debt debacle is wending its way through Congress, a bill passed the House, and like the making of sausage, its best not to look while the wheels of government are grinding. Once we have something out of the Senate I will try to give you a summary.

The Ninth District Court of Appeals has ruled in favor of California's "good cause" requirement for concealed carry. This was expected as the 9th is the most liberal district in the US, it is also the most overturned district. The Ninth is usually wrong and they like it that way, expect this to show up at the Supreme Court soon. 

Jeremy Stern writes in an opinion piece that Millennials who want the Bern policies can get the Bern policies. This is so good I will simply quote from the article.

"The federal experiment involves 1.3 million Americans— less than 1% of the population, but 75% of the participants are themselves millennials, so Bernie’s supporters should feel right at home. Unless they feel like they’ve arrived in socialist heaven. Consider: These lucky few, including their spouses and children, receive free single-payer health care. Pre-existing conditions? No problem. Prescriptions? Generally free.
Bernie only proposed free college for all; that’s already a reality for these young Americans. Local elementary schooling for their children is also tossed in at no cost. Vocational training? When do you want to start? And put your wallet away.

What’s more, the federal government provides these participants with generous living allowances. On top of their normal salaries, they collect a monthly allowance for rent or mortgage payments, an allowance for moving costs incurred when their job location changes, and an allowance for gas consumed when driving for work-related purposes. There’s even a clothing allowance. Oh, none of these allowances is taxable. Did I mention that tax preparation services are also free?

In case you thought it couldn’t get any more Nordic for these chosen few, they get 30 days of paid vacation a year in addition to the usual 10 paid federal holidays. That’s 40 days of paid leave every year—more than in the Switzerland, Germany, the Netherlands and Canada.
These Americans are also eligible for a lifetime pension. If they enter the program after high school, they can start collecting their retirement— half the dollar amount of their final salary, every year for the rest of their life— at age 38!"

Holy cow! The Bern's policies done one better! How cool is that? Then the other shoe drops.

"Welcome to the U.S. Armed Forces, my fellow millennials. Feel the burn?

Mr. Stern is a lieutenant in the U.S. Army."

I guess your Trump/Sanders irony bumper sticker wasn't so ironic after all! Just think you are already live the Bern Life, in Boot Camp!

Uber has recently suffered a few legal setbacks, the most recent in France, a dying state run by 5,000 wealthy, out of touch Patrons. It is low budget Mafia. Whatever the putative point of the French litigation, the real point was to protect the antiquated taxi system, and its jobs. This is unsurprising, but it essentially shifts a large economic benefit accruing to millions of average Joe's to a tiny number of taxi drivers, and more importantly the people who actually own the taxi companies. By doing this, France drives up the cost of living for all, but enriches a few. This is always bad for the economy, and the people generally, but good for the few, luckily the few are the powerful, so once again France comes to the aid of the wealthy as opposed to the rest. France is failing, this will only accelerate the fail, good.

Uber is also admitting it made a mistake when it did not allow customers to schedule rides in advance. So, it now is allowing customers in Seattle to order rides on UberX up to 30 days in advance. It ". . . also announced that it is guaranteeing arrival times for UberPool users, starting in Los Angeles with more markets to follow. If a rider doesn’t make it to their destination before the arrival time quoted in the app, Uber will give the rider a $2 discount on the next UberPool trip. Mr. Fallows said that while the UberPool arrival estimates and scheduled rides are different initiatives, they share a common thread of trying to keep riders happy."

Future scheduling of rides, and car pooling of rides, all it proceeding as I have foreseen. 

All of the Persian Gulf oil states are beginning to sell debt. It won't work. They need economies, not cash. This is the teach a man to fish parable written nation size. These nations cannot fish, and selling something for a fish will not solve this problem. 

In China excess oil refinery capacity is triggering a pan Asian fuel price drop. What has happened is the small "private" refiners, called "Teapots" have been allowed to refine much more fuel, so China is buying oil like mad. But it is not using this fuel, and is being forced to sell it on the Asian market, driving down the price. Expect the other markets to either decline to by this fuel, or cut their oil purchases. In the end, the huge China oil buys are not looking like they are in account of Chinese internal market demand. This will not support the optimistic oil bulls BS.

In the Financial Times

Venezuela is suffering food riots, blackouts, record inflation, and is down to a two day work week in order to cut cost, but it is still paying billions to its international lenders. Why the people have not revolted, and why it continues to make these payment is anyone's guess. The Venezuelans are dumbfounded by this willingness to pay debt, but not buy food. Eventually those not yet starving will understand they will be and then they will act. Or starve. Sheesh.

The FT like the good socialist they are have an editorial lauding the "judicious" use of trade sanctions to combat subsidized trade imports. What they are really saying is they really think it better to prop up the steel business, so the wealthy don't get creamed by low priced Chinese steel. Socialist are always for the big and wealthy, and always cloak in it terms of helping the little guy, but their help doesn't help the little guy. These trade sanctions will raise the price of everything made with steel, but ensure the viability of the steel business, and yes a small number of jobs left in steel. This is a sop to the rich, not aid to the poor steel worker, and is being charged to everyone. The real story here is who the FT editorial board want to be in bed with, it is not you.

Nice article on how the globalization of banking is driving down prices and expanding locations, so expect banking to be less focused in the current banking hubs like New York and London, and more spread out. This will benefit both the banks who locate in cheaper places and the customers. It is about time.