And Hillary Clinton Acolytes Continue to Ruin the World

In this case, it's Victoria "F%$# the EU" Nuland, who is attempting to coerce the government of Cyprus to cut ties with Russia and accept the continuing occupation of the northern portion of the island nation by the Turks:

The US is intensifying the pressure on Cyprus to accept a secret NATO plan to keep Turkish forces on the island.

Victoria Nuland, the State Department official in charge of regime change in Russia and Ukraine, met for talks last week with the President of Cyprus, Nicos Anastasiades, and with Turkish Cypriot figures. The State Department and US Embassy in Nicosia have kept silent on what was said. A well-informed Cypriot source reports Nuland “was in Cyprus to pre-empt any likelihood of future deepening in relations with Russia. Anastasiades may not want to, but he may have no other option.” A second Cypriot political source said: “[Nuland] will try to blackmail him. I’m not sure how he will react.”

Andros Kyprianou, head of AKEL, the Cyprus Communist Party running strongly against Anastasiades’s party in next month’s parliamentary election, issued an unusual warning against the Nuland plan. “For us”, Kyprianou (right) said, there is only one acceptable outcome to negotiations between the Greek and Turkish communities for the reunification of the island. This is a “solution that ends the occupation and colonization, restoring the sovereignty, independence, territorial integrity and unity of the Republic, based on UN resolutions, the High Level Agreements, International and European Law. The solution is to demilitarize Cyprus and excludes any guarantee and intervention rights in the internal affairs of the country by foreign forces.”

………

US military commanders and political leaders have never advocated Turkish withdrawal from the island, or compliance with the UN resolutions. Instead, they have recommended incorporating both parts of Cyprus into the North Atlantic Treaty Organization (NATO). The political and military commands in Ankara have been reluctant to accept a NATO solution for Cyprus because they object to what they regard as “dilution” of their army on the island. The Nuland plan is the latest attempt to give Ankara what it wants, and override Greek Cypriot objections. Nuland has also told Anastasiades she wants to accelerate agreement on the terms of settlement before the US presidential election in November.

Anastasiades has already declared himself in favour of joining NATO by signing the preliminary Partnership for Peace programme, but AKEL has been able to block it. For the time being, Cyprus is not a NATO member, and cannot accept another NATO base on its territory. “How can Nuland now push through a Turkish base on the island”, a well-known Cypriot strategist asks – “that isn’t a Turkish base and isn’t a NATO base either, but meets Ankara’s demand for a military ‘guarantee’, and will be accepted by Anastasiades?”

………

For weeks now in Moscow, there have been public hints that Nuland has resuscitated the scheme for withdrawing Turkish forces under the Turkish flag, then returning them under a NATO flag. In Nicosia in December, Foreign Minister Sergei Lavrov warned that such a scheme would be unacceptable to Russia. “The sides should reach agreements that would provide these security guarantees on a fundamentally new basis,” Lavrov said, “which will be acceptable to both Cypriot communities…This role should be primarily played by the UN Security Council.” For more details, read this.

In February, Lavrov’s spokesman at the ministry in Moscow attacked statements by Turkish President Recep Tayyip Erdogan for his “calls on the Cypriot Turks to take a tough, uncompromising stance in the ongoing intercommunal talks in Cyprus, including on territorial delimitation, a very sensitive issue. This is in stark contrast to Ankara’s statements on its commitment to facilitating a peaceful settlement on the island in the near future. It is obvious that by addressing such calls to one of the parties to the inter-Cypriot dialogue, Turkey’s leaders are rudely interfering in the negotiation process with a view of promoting their own interests.”

 This Neocon bullsh%$ is getting really old.

H/t Naked Capitalism.

Cue the Queen Song, and I Don't Mean Bohemian Rhapsody

Yesterday, Cruz dropped out, and today, Kasich threw in the towel:

Gov. John Kasich of Ohio, a moderate voice who tried to portray himself as the adult in the Republican primary field but failed to win any state but his own, ended his long-shot quest for the presidency on Wednesday, cementing Donald J. Trump’s grip on the presidential nomination.

Mr. Kasich’s departure, a day after Mr. Trump’s victory in the Indiana primary, leaves Mr. Trump as the only candidate remaining in the Republican race. His closest challenger, Senator Ted Cruz of Texas, dropped out Tuesday night.

The Republicans have a nominee, and I am tremendously amused.

Then I remember who is leading in the Democratic primary, and I haz a sad.

Today's Must Read

Edward Snowden has an essay in The Intercept on on the nature whistle-blowing that you really need to read:

………

If harmfulness and authorization make no difference, what explains the distinction between the permissible and the impermissible disclosure?

The answer is control. A leak is acceptable if it’s not seen as a threat, as a challenge to the prerogatives of the institution. But if all of the disparate components of the institution — not just its head but its hands and feet, every part of its body — must be assumed to have the same power to discuss matters of concern, that is an existential threat to the modern political monopoly of information control, particularly if we’re talking about disclosures of serious wrongdoing, fraudulent activity, unlawful activities. If you can’t guarantee that you alone can exploit the flow of controlled information, then the aggregation of all the world’s unmentionables — including your own — begins to look more like a liability than an asset.

Read the rest.

I Know That It's Not Good to See the Sausage Made, but We Should Know When It Is a Sh%$ Sandwich

Greenpeace has published leaked documents detailing the negotiations between the US and EU over the TTIP, and it is worse than previously thought:

Bernd Lange, the chairman of the European Parliament's important trade committee, has indicated that he now expects the Transatlantic Trade and Investment Partnership (TTIP) negotiations will probably fail, following a major leak of confidential documents from the talks.

Greenpeace Netherlands has released half of the entire TTIP draft text as of April 2016, prior to the start of the 13th round of TTIP negotiations between the EU and the US, which reveal US demands in detail for the first time.

Although the EU has improved transparency recently, and routinely publishes its offers for each TTIP chapter, the US has consistently refused to do so. Even MEPs and MPs have faced extreme restrictions on what they are allowed to look at, copy, or even say when it comes to the US position. The new leak by an unknown whistleblower represents a major blow to US attempts to keep its negotiating demands confidential, and provides important information to the both the EU and US public for the first time.


………

As Ars noted last September, in the face of massive public concerns about ISDS, the European Commission is proposing a modified approach, the Investment Court System (ICS), which it claims addresses the problems of ISDS. However, even though the ICS idea was formally presented to the US last year, one of the TTIP leaks shows that it was not even discussed during the 12th round, something that the European Commission's public report on the negotiations omitted to mention. This confirms earlier indications that the US is not interested in ICS, and will insist on including standard ISDS in TTIP, regardless of EU worries.

A leaked chapter on "Regulatory coherence, transparency and other good regulatory practices" indicates that the US wants all regulations, even those concerning health and safety or environmental issues, to be judged by the yardstick of their effects on trade: "When developing a regulation, a regulatory authority of a Party shall evaluate any information provided in comments by the other Party or a person of the other Party regarding the potential trade effects of the regulation that it receives during the comment period."

n practice, this means that companies will be able to challenge any new EU and US regulations that might have an adverse effect on their profits, as is often the case when new environment regulations are brought in. It is likely to make it much harder to strengthen laws that might disadvantage business but protect public health and safety.

………

The key sentence comes in the particularly sensitive document entitled "Tactical State of Play of the TTIP Negotiations." This is essentially the European Commision's frank evaluation of where things stand in the TTIP talks. Here's what it has to say on the US demand: "progress on motor vehicle-related parts would only be possible if the EU showed progress in the discussion on agricultural tariffs." In other words, if the EU doesn't open up its markets to agricultural products from the US—which means things like beef treated with hormones, and maybe even chlorine chickens—there will be no improved access for EU car manufacturers.

………

It is also concerned that the EU's "precautionary principle," which requires that products should be shown to be safe before they can be put on the market is being replaced by the US "risk-based" approach, which allows products to be sold until it is proved that they are dangerous.

………

Finally, and perhaps most importantly, public support for TTIP was already plummeting, even before this leak appeared. It seems unlikely that the information it reveals about US demands will assuage any European fears.

Looking at the positions that have been taken by  the US in these negotiations, I can only say that, "We have met the enemy, and he is us."

The worst parts of the trade deals that the US have negotiated over the past few decades is not that reality, and our partners, require compromises.

The worst parts of the trade deals that the US have negotiated over the past few decades come from a foreign trade establishment who follows the most extreme and destructive philosophy.

Here is hoping that the free market market mousketeers who have been driving foreign trade deals get a job flipping burgers, because their death toll is beginning to rival that of Josef Stalin.

Same as it Ever Was………

It looks like GSE Freddie Mac may need another baliout:

Freddie Mac is expected to report a loss when it announces first-quarter earnings before the bell on Tuesday. That’s bad news for any public company, but especially critical for the mortgage provider because of its tangled history with the federal government.

Freddie and its counterpart, Fannie Mae were put into conservatorship in 2008 as the mortgage meltdown ensnared the financial system. They have lingered as wards of the state ever since. The Treasury Department modified the deal in 2012, requiring Fannie and Freddie to send all quarterly profits to the government — and shrink their reserves to zero by 2018.

As Mel Watt, the chairman of Fannie and Freddie’s regulator, put it in a speech in February, Fannie and Freddie are quickly approaching the point where they won’t be able to weather quarterly losses without going back to the Treasury for taxpayer dollars.

………

Bank analyst Richard Bove speculated about the possibility of a first-quarter loss in a recent note. “It is impossible for an outsider to predict what this will do to Freddie Mac earnings but it is not unrealistic to assume a loss of $2 billion plus in derivatives (it could be as high as $4 billion or more). At the $2 billion plus level, Freddie Mac’s pretax earnings would be negative $749 million,” Bove, vice president of equity research at Rafferty Capital Markets, wrote.

Spokeswomen for Freddie and its regulator, the Federal Housing Finance Agency, declined to comment.

A Treasury draw is a possibility, Moody’s Analytics Chief Economist Mark Zandi told MarketWatch, although he thinks the chance of one is “less than 50-50.”

The 10-year Treasury declined 49 basis points in the first quarter, far more than the 29-basis point drop that caused Freddie’s loss last year, noted Laurie Goodman, director of the Housing Finance Policy Center at the Urban Institute. (A basis point is one one-hundredth of a percentage point.)

Time to party like it's late 2008, I guess.

Seriously, has there been a financial "Innovation" since the Automatic Teller Machine that has been about anything but ripping the rest of us off?

We are now in a never ending bust and bust cycle where the banksters get richer, and the rest of us get poorer.

Here Is the Latest Scare Story about a Brexit

It appears that a French economist with close ties to the government is makign dire predictions about what would happen if the UK votes to leave the euro:

Eurozone economies would gain at the expense of Britain if the UK voted to leave the EU, a leading French economist has predicted, with a relocation of financial activity out of London causing sterling to plummet.

Mathilde Lemoine, a prominent member of the French government’s budgetary watchdog and chief economist of the Edmond de Rothschild private bank, said sterling could rapidly fall 34 per cent against the euro.

The report by the private bank demonstrated how European finance houses could profit from Brexit if the Leave campaign wins the referendum on June 23.

Ms Lemoine, also a former adviser to the French prime minister, wrote that the rapid relocation of financial activity would add to the “brutal drop” in sterling she expects after a vote for Brexit.

Such a vote, she said, would “immediately” reopen the question of the location of clearing houses for eurozone business, which are mostly in London after the UK government won a case last year in the European Court of Justice. It ruled against the European Central Bank’s requirement that clearing houses of euro-denominated business between European banks had to be based in the eurozone and regulated by the ECB.

After a Brexit vote, “it is certain that the grounds for the European Court of Justice’s decision would no longer exist,” Ms Lemoine wrote. “As a result, the European Council could immediately require clearing houses handling euro transactions to be located in the eurozone. On our calculations, sterling would fall 34 per cent against the euro in the space of three months”.

It's enough to make one want to invoke the proverbial briar patch.

If  Lemoine's predictions are true, this win for the UK:

• Finance moves out
• Should reduce insane real estate prices in and around London.
• Restructuring of the economy from finance is better for 99+% of the people with less inequality, and more productive industry.
• The corruption influence of finance and other rent seeking industries on the political system is reduced.
• Intellectual capital that is otherwise wasted on finance and banking returns to productive pursuits.
• Pound falls.
• Trade balance improves, because imports are more expensive, and exports are cheaper.
• Inflation increases, which solves the UK's current disinflation, which will make recovery better, because people are less inclined to hoard money, and inflation devalues debts.

This horror story really isn't particularly horrible.

This Makes it Even Better

In news unrelated to the Presidential election, former New York State Assembly Speaker Sheldon Silver was sentenced to 12 years in prison for corruption:

Sheldon Silver was sentenced to 12 years in prison Tuesday, making the former New York Assembly speaker one of the most powerful politicians in the state to be given time behind bars.

U.S. District Judge Valerie Caproni, who also ordered Mr. Silver to pay a fine of $1.75 million and forfeit about $5.3 million he reaped from the criminal schemes of which he was convicted, said she hoped the punishment would serve as a deterrent.

“I hope the sentence I impose on you will make other politicians think twice, until their better angels take over,” said Judge Caproni. “Or, if there are no better angels, perhaps the fear of living out ones golden years in an orange jumpsuit will keep them on the straight and narrow.”

In a brief statement before the sentence was announced, Mr. Silver, 72 years old, said he had let down his family, colleagues and constituents.

“I’m truly, truly sorry for that,” said Mr. Silver, who was found guilty in November of honest-services fraud, extortion, and money laundering.

………

Two of his former Albany colleagues are expected to be sentenced later this month.

Former state Senate Majority Leader Dean Skelos, who in December was found guilty of public-corruption charges including conspiracy, bribery and extortion, is scheduled to be sentenced on May 12. Former state Sen. John Sampson, who was found guilty in July of obstruction of justice and making false statements to investigators, is scheduled to be sentenced in Brooklyn federal court May 19.

I'm hoping that this puts enough of a fear of God into Skelos that he flips on Cuomo, because 14 years has gotta be scaring the hell out of him.