15:05-15:30: you tell Mr and Mrs Front-Porch that your loonie of 1871 cannot be compared to your loonie of 2013 (year of this interview). You went off the gold standard in '33, you abandoned the peg in '70, and your currency has been free-floating ever since. Yes, the ratio of debt to GDP has some importance, but so does the nature of your currency. Just look at Greece and Japan, where the former uses a foreign currency and the latter uses its own, sovereign, free-floating currency.

Pay back the national debt -- have you thought that through?

First, the Bank of Canada is the monopolist currency issuer for the loonie, so explain to me in detail just how the issuer of the currency is supposed to borrow the currency from someone else? If you're the issuer of the currency, you spend it into existence, and use taxation as a means to create demand for your currency, and to free resources for the government to acquire, because you can only ever buy what is for sale.

Second, every government bond is someone else's asset. An interest-bearing asset. A very safe asset, in the case of Canada, the US, the UK, Japan, etc. "Paying back the debt" means putting a bullet into just about every pension fund in the world that doesn't rely exlusively on private equity or other sorts of volatile toilet paper.

There's a distributional issue with these bonds (they are concentrated in the hands of the non-working class, aka the rich), no doubt about it. But most of the other issues are strictly political, not economical.

What if the interest rate rises 1%? The central bank can lower the interest rate to whatever it damn well pleases, because nobody can ever outbid the currency issuer in its own currency. Remember, the central banks were the banks of the treasuries. The whole notion of an independent central bank was introduced to stop these pesky leftists from spending resources on plebs. That's why central banks were often removed from democratic control and handed over to conservative bankers. If the Treasury wants an interest rate of 2% on its bonds, it tells its central bank to buy any excess that haven't been auctioned off at this rate. End of story.

What if the market stops buying government bonds? Then the central bank buys the whole lot. However, government bonds are safe assets, and regulations demand a certain percentage of safe assets in certain portfolios, so there is always demand for the bonds. Just look at the German Bundesanleihen. You get negative real rates on 10 year bonds, and they are still in very high demand. It's a safe asset in a world of shitty private equity vaporware.

But, but.... inflation! Right, the hyperinflation of 2006 is still right around the corner. Just like Japan hasn't been stuck near deflation for two decades, and all the QE by the BoE and the ECB has thrown both the UK and the Eurozone into double-digit inflation territory. Not! None of these economies are running near maximum capacity/full employment, and very little actual spending (the scary, scary "fiscal policy") has been done.

But I'm going off track here, so.... yeah, you can pay back your public debt. Just be very aware of what exactly that entails.

As for the poster-child Latvia: >10% of the population left the country.

Here's a different poster-child instead, with the hindsight of another 4 years of austerity in Europe after this interview: Portugal. The Portuguese government told Master of Coin Schäube to take a hike, and they are now in better shape than the countries who just keep on slashing.

On a different note: Marx was wrong about the proletariat. Treating them like shit doesn't make them rebellious, it makes them lethargic. Otherwise goons like Mario Rajoy would have had their comeuppance by now.

PS: Blyth's book on Austerity is an absolute must-read for anyone interested in its history or its current effects in particularly the Eurozone.

Grab some coffee. More coffee. Maybe some soilent green, too. Now, may I direct your attention at this piece by the great Edward S. Herman, who basically wrote the book on propaganda together with Chomsky.

In this piece, he takes aim at the NYT's coverage of Russia. This, of course, includes the election. It's about 2/3 into the piece, beginning with:

"The Putin connection was given great impetus by the January 6, 2017 release of a report of the Office of Director of National Intelligence (DNI), on Background of Assessing Russian Activities and Intention in Recent US Elections."

https://vimeo.com/224458051

So, the context:
- this is a Funhaus clip (part of RoosterTeeth, comedy/entertainment based on videogames, mostly)
- Elyse is married to James (not in video), not Bruce
- Bruce likes to stir the shit for reasons of comedy
- Elyse's reactions to stupidity by the boys are legendary, especially when she's working on something else in the background
- Bruce's comments (and Lawrence's most of all) when taken out of context make for easy outrage material -- it's part of the shtick

https://twitter.com/CaughtCctv/status/882953343479500806

That's the result of a people having been through entirely too much shit over the last generations...

Hamburg, G20 Summit: pleb suppression device Mk III.

ECB Research Bulletin:

In an economy with its own fiat currency, the monetary authority and the fiscal authority can ensure that public debt denominated in the national fiat currency is non-defaultable, i.e. maturing government bonds are convertible into currency at par. With this arrangement in place, fiscal policy can focus on business cycle stabilisation when monetary policy hits the lower bound constraint. However, the fiscal authorities of the euro area countries have given up the ability to issue non-defaultable debt. As a consequence, effective macroeconomic stabilisation has been difficult to achieve.

Translation:
- all members of the eurozone effectively use a foreign currency
- they can default, because they do not and cannot issue debt in their currency
- fiscal policy has thus been completely neutered

Ergo, national parliaments have a significantly smaller policy space compared to countries with their own currency. Our parliaments intentionally surrender power to unelected technocrats, even control of the national budget, which is the primary power available to any parliament anywhere.

"Sorry, lad. We cannot pay for healthcare/pension/infrastructure/education/wages/X, we have to maintain a balanced budget to appease the market." Yet it is still illegal to call for the guillotine...

Meanwhile, Japan doesn't give a fuck. The BoJ has been vacuuming up outstanding debt like there's no tomorrow. It currently holds in excess of 40% of all government debt, effectively canceling it. It's just book-keeping. The Treasury issues the debt, the CB buys the debt. Both are part of the consolidated government sector, ergo no debt. "Hyperinflation!", they scream. Can you hear them? Except Japan has been fighting deflation for two decades, with no end in sight.

Yet the inflation-hawks are still treated as persons of authority. Flat-earthers, the lot of 'em.

And my country wants the rest of Europe to sign on to the most moronic law in German history: the "Schuldenbremse", which makes running a deficit illegal at the constitutional level (except for undefined "emergencies"). They are either a) brainwashed, b) idiots, or c) straight up evil. And I'm not sure which one I prefer.

Rememer the talking point that 17 intelligence agencies pointed their fingers at Russia for having orchestrated the hacks during the election?

Even the NYT has finally buried that one:

The assessment was made by four intelligence agencies — the Office of the Director of National Intelligence, the Central Intelligence Agency, the Federal Bureau of Investigation and the National Security Agency. The assessment was not approved by all 17 organizations in the American intelligence community.

Given how many talking heads have used this talking point, the damage has been done, and one small correction isn't going to undo it.

Edit: the AP as well.

And now there's this: Sarin used in April Syria attack, chemical weapons watchdog confirms

So now we have two narratives that are mutually incompatible. Splendid, isn't it....

My own confirmation bias favours Hersh. Additionally, the OPCW openly admits they had had access to the site of the attack, and that all of their samples were gathered by third parties, primarily the White Helmets. That's about as tainted as evidence can be.

Either way, nobody has anything of substance in terms of proof, everything's circumstantial. Can't call it.

Berlin these days: https://www.youtube.com/watch?v=dvXrqD6qNwU

On that note, here's Hersh in an interview from a few days ago:

The Democrats may be playing with fire on all of these investigations because unless they really think they have something… I don’t see anything but getting sympathy for Trump. The Democrats aren’t attacking specific ideas, they’re just wallowing and trying to talk about what the Russians did, they stole the elections, and you know, the cover-up—which they’re not going to prove, I don’t think. I don’t see any reason to be optimistic about it.

The bright blue bandana gets me. I've heard of wierd shit being used to identify yourself in an attempt to avoid getting fragged, but that thing just yells "shoot me".

On the other hand, I'm sitting in an office and she's not even shaking after this close miss, so...

That said, does anyone know what that orange plate on the PSO1-M2 (?) is, right on the elevation adjustment knob?

... and now this.

Add the moral hazard created by Dem hacks who insist that Trump needs to kill Russians to show that he's not in cahoots with Putin. The result: watch WW3 on Pay TV.

So, vertical maglev with turntables?

The deeply conservative (!) "Die Welt" in Germany has two pieces by Sy Hersh, completely debunking the supposed chemical attack by the Syrians at Khan Sheikhoun. It also paints a highly disturbing picture of the decision-making process in both the White House and the Pentagon.

The first one is a rather short conversation that includes all the goodies: the chemical attack in Syria was, once again, not a chemical attack by Syrian forces -- they hit a stash, just like both the Syrians and the Russians claimed at the time.

The piece also details that US forces are keenly aware that it was not a chemical attack, that the response (Tomahawk strike on Syrian airfield) was equally ridiculous and dangerous, and that the bellicose stance of the US vis-a-vis Russia is complete lunacy.

The longer piece by Hersh himself and displays in great details the disconnect between Trump and his military advisers, as well as between the upper echelons of the military and the troops in the region.

Just a snippet about the strike itself:

A Bomb Damage Assessment (BDA) by the U.S. military later determined that the heat and force of the 500-pound Syrian bomb triggered a series of secondary explosions that could have generated a huge toxic cloud that began to spread over the town, formed by the release of the fertilizers, disinfectants and other goods stored in the basement, its effect magnified by the dense morning air, which trapped the fumes close to the ground.

And the media went along for the ride, for the umpteenth time. Remember Brian Williams fawning about the beauty of the weapons?

At some point, this volatile mixture of warmongering and McCarthyism is going to start WW3, and they'll blame it on the Russians.

I think this quote illustrates the issue quite nicely:
“Did the Syrians plan the attack on Khan Sheikhoun? Absolutely. Do we have intercepts to prove it? Absolutely. Did they plan to use sarin? No. But the president did not say: ‘We have a problem and let’s look into it.’ He wanted to bomb the shit out of Syria.”