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Alarm Clock

Goldman: The Fed has lost control; countdown for 'the last asset bubble'

Jerome Powell
© Reuters
Chairman of the Federal Reserve, Jerome Powell
Back in January, when Chair Powell unexpectedly U-turned on months of hawkish policy and shocked traders when he said that contrary to what he had said just two weeks prior during the December FOMC press conference, the Fed could be "patient", rate hikes could "pause", and the Fed's balance sheet reduction is not in fact on "autopilot", the Powell Put finally emerged for the first time, and the result has been a torrid rally ever since, and the best first half market performance in decades.

It also prompted an avalanche of accusations that Powell - who has also, facing intense pressure from president Trump to cut rates or else lose his job, folded like a cheap suit - held hostage by traders who pushed stocks low enough to i) test where the Powell Put strike price is and ii) force the Fed to not only halt rate hikes, but launch an easing cycle, something it has now effectively done.

Yet as we noted in January, being held hostage or captive by the market is nothing new to Powell; in fact, it was way back when in March 2013, ahead of the Fed's taper announcement, that the Fed chair first realized that it was not the Fed that controls the market, but rather - after years of ZIRP and QE - the Fed had become a hostage of the market's every whim.

Comment: More from RT: Keiser Report: US Fed covers central bank screw-ups
The US Federal Reserve was created with the idea of ultimately being there for any instance of financial crisis in the banking system, says journalist and former banker at Lehman Brothers Nomi Prins. She joined RT's Keiser Report for the Summer Solutions 2019 episode:


"When the Federal Reserve was created we still had the gold standard... when we got to 1971 the gold standard was completely repealed... it was because what the bankers wanted... they pushed to get off the gold standard, so there would be no more solid real asset benchmark underneath currency," Prins says. That was the idea of having more fiat money and the dollar ultimately becoming even more dominant, she explains.

"The US Fed is basically the CEO of the banking system, it provides the money, regulates the banks, and the banks are members of that institution," says Prins, author of Collusion: How Central Bankers Rigged the World.

She stresses: "You cannot have the financial system be members of a central bank that provides them cover when they screw up. That entire system has to be demolished."



Umbrella

Corbyn: Labour would back 'remain' vote in second Brexit referendum

Jeremy Corbyn
© Getty Images
Labour Leader Jeremy Corbyn
Jeremy Corbyn has sought to draw a line under Labour's Brexit travails by announcing a "settled" policy of backing remain in any referendum called on a Conservative deal. The Labour leader has been under intense pressure to shift to an overtly anti-Brexit stance, but has insisted on consulting the party's stakeholders in recent weeks, including the trade unions.

In a statement emailed to party members on Tuesday, Corbyn made no reference to what stance Labour would take in the event of a general election in the near future, or whether Labour could enter such a contest saying it would still go ahead with leaving the European Union.

But he made clear that if a referendum was called on the Brexit deal negotiated by the incoming Conservative prime minister - or on whether to go ahead with a no-deal Brexit - Labour would support remain.


Attention

Christine Pelosi: Warning! It's 'quite likely some of our faves are implicated' in 'horrific' Epstein case

ClintonEpsteinJet
© Unknown
Former US president Bill Clinton • Jeffrey Epstein • The 'Lolita Express'
Christine Pelosi, a Democratic National Committee official and daughter of House Speaker Nancy Pelosi, warned conspicuously on Saturday evening that it is "quite likely that some of our faves are implicated" in the "horrific" sex-trafficking case against politically connected financier Jeffrey Epstein.

Epstein is due in court following his sudden arrest Saturday in New York on new sex-trafficking charges involving allegations dating to the early 2000s, according to law enforcement officials. He has been accused of paying underage girls for massages and sexually abusing them at his mansion in Palm Beach, Fla., and in New York City. His 72-acre private estate on the Virgin Islands, a home said to be nicknamed "Orgy Island," also has been under scrutiny.


"This Epstein case is horrific and the young women deserve justice," Pelosi tweeted. "It is quite likely that some of our faves are implicated but we must follow the facts and let the chips fall where they may - whether on Republicans or Democrats."

Comment: See also:


Boat

Duterte dares the US to bring its fleet to fight China: 'Want trouble? You first!'

Duterte
© AP
Philippine President Rodrigo Duterte
If Washington wants the Philippines to fight China, the US military should come and fire the first shot, President Rodrigo Duterte argued, accusing the US of using its allies as "bait" for Beijing.

"There is always America pushing us, egging us ... making me the bait. What do you think Filipinos are, earthworms?" Duterte said in a speech in Leyte province on Friday, which only got media attention on Sunday.

"Now I say, you bring your planes, your boats to South China Sea. Fire the first shot and we are just here behind you. Go ahead, let's fight," he added. "Do you want trouble? OK, let's do it."

The remarks came as the government in Manila finds itself sandwiched between US demands for a tougher posture towards China and Beijing's maritime expansion in the South China Sea, specifically the islands that the Philippines have claimed as their own.

Star of David

Netanyahu taunts Iran: Israeli planes can 'reach everywhere' in the ME

Netanyahu
© 1 Israeli PM Netanyahu at Nevatim Airbase, Israel , Amos Ben Gershom/GPO
Israeli PM Netanyahu at Nevatim Airbase, Israel
As tension mounts over Iran's nuclear program, Israeli Prime Minister Benjamin Netanyahu has warned Tehran that Israeli warplanes can strike anywhere in the Middle East, "including Iran and Syria."

"Iran has threatened recently to destroy Israel," Netanyahu said in a video clip posted on Tuesday. "It is worthwhile for them to remember that these planes can reach everywhere in the Middle East, including Iran and Syria."

Netanyahu delivered his stern lecture while standing in front of an F-35 fighter jet at Nevatim Airbase in central Israel. The Israeli Air Force has used its warplanes to strike supposed Iranian and Hezbollah targets in Syria numerous times, most recently pounding the cities of Damascus and Homs at the beginning of July - attacks that left multiple civilians dead. Last year, Israel became the world's first military power to use the next-generation F-35 in a combat operation, reportedly against Iranian targets in Syria.

The Israeli leader's video comes a week after Iranian parliamentarian Mojtaba Zolnour remarked that "if the US attacks us, only half an hour will remain of Israel's lifespan."

The Iranian leadership has stuck with a calmer line, with Supreme Leader Ayatollah Ali Khamenei stating in May that "there won't be a war" between Iran and the US. Even the usually hardline Islamic Revolutionary Guard Corps leader, Major General Hossein Salami, said on Monday that "the world knows" Tehran is not pursuing a nuclear weapon.

Propaganda

UK tabloids: Russia hacked ambassador's Trump memos...while FM Jeremy Hunt plays along

Headlines 3UK
© mirror.co.uk; dailymail.co.uk; thesun.co.uk
London has said there is no evidence that a foreign state was behind the recent leaks from its embassy in Washington, but this hasn't stopped British officials from quietly feeding tabloid narratives blaming Russia for the affair.

The UK government is in full damage-control mode after a series of memos penned by the UK ambassador to Washington, Sir Kim Darroch, were leaked to the press. The diplomatic cables described US President Donald Trump as "incompetent."

While British officials appear to believe that the embarrassing leaks were carried out by an "unpatriotic" insider, Foreign Secretary Jeremy Hunt didn't seem to mind playing along with tabloid speculation that Russia is somehow at fault.

Pressed by the Sun about whether he believed "hostile states such as Russia" may be behind the leaks, Hunt was all too happy to quietly fan the flames - even while acknowledging that there was no reason to suspect that Russia or any other country played a part in the incident.

Comment: RT: Kremlin responds: Scandal is between London and Washington
There is no reason for Russia to comment on the row caused by a series of leaked memos in which the UK Ambassador to the US called Donald Trump "inept" and assessed his administration as "dysfunctional."

The scandal is obviously "between Washington and London," Kremlin spokesman Dmitry Peskov told reporters on Tuesday. "Let these two capitals deal with it. This is not our story."

The revelation raised ire in Washington, with Trump angrily saying that "we will no longer deal with him." However, outgoing UK Prime Minister Theresa May assured that she has "full faith" in Ambassador Darroch. Nevertheless, some UK tabloids were quick to point fingers at Russia after Jeremy Hunt said London is also examining the meddling of a "foreign state."
See also: US will 'no longer deal with' British ambassador following leaks scandal - Trump


Document

Taliban and Afghan delegates agree on road map to peace, with differing texts

Kabul talks
© mashaalradio
Taliban-Afghan talks in Kabul
The Taliban and a delegation representing Afghan society have agreed at talks in Qatar upon a road map for a future political settlement in what is seen as a major step toward ending Afghanistan's nearly 18-year war.

However, there are major discrepancies between different versions of the resolution released in the Pashto, Dari, and English languages that highlight where difficulties in the negotiations remain.

The English version, released on July 9 by U.S. envoy Zalmay Khalilzad as an "unofficial translation," declares that the Taliban and intra-Afghan delegates had agreed to assure Afghan women their fundamental rights in "political, social, economic, educational, [and] cultural affairs" in a way that is "in accordance with the values of Islam." That is a key demand from Afghanistan's internationally backed government in Kabul.

The English translation also did not contain any reference to one of the key issues for the Taliban -- their demand for the withdrawal of all foreign military forces from Afghanistan.

Women's Rights

In Pashto, the main language of most Taliban, the text included references to the withdrawal of foreign troops as part of the road map. But it did not include any reference to guarantees for women's rights. Like the English text, the Dari version of the resolution included references to guaranteeing women's rights but did not mention the withdrawal of foreign troops from Afghanistan.

Comment: More from FRN: No compromise: Taliban rejects any ceasefire until withdrawal of West
"We want foreign troops to leave Afghanistan, we want the Islamic system in the country with the representation of all Afghans, we want peace in the country and the participation of all Afghans in its reconstruction," stated by the representative of the Taliban, Soheil Shahin.

He also made it clear that the Taliban do not intend to discuss the possibility of a cease-fire until the fulfillment of their main demand - the cessation of a foreign military presence. The main result of the inter-Afghan meeting in Doha was the recognition by all parties of the thesis that life in Afghanistan should be held in accordance with the norms of Islam. This is enshrined in the "road map" of reconciliation approved by the participants of the meeting, including the Taliban.
From Sputnik: Agreements and a call for peace in Afghanistan
"The peace conference strongly supports the peace process, a call for achieving peace in Afghanistan and believes in its effectiveness. To protect the population of Afghanistan, the parties to the conflict agreed to release ill prisoners, ensure the protection of all educational institutions, make efforts to reduce civilian casualties to zero," the statement read.

"We urge the international community to respect our values and support us in reaching a peace agreement as well as to provide support in settling the situation after concluding a peace deal," the statement said.
See also:


Propaganda

Oh, the irony! British Foreign Ministry holds conference on media freedom, bans RT from attending

media
© Getty Images / Mihajlo Maricic / EyeEm
Britain's Foreign Office can't keep its diplomatic secrets, but it has managed to keep its sense of irony, and banned RT from attending a conference on media freedom.

A spokeswoman told British media: "We have not accredited RT or Sputnik because of their active role in spreading disinformation."

The accusation of 'disinformation' is the exclusive view of the Foreign Office, because it's worth remembering that while RT has been censured by OFCOM (like every other broadcaster in Britain), it still operates freely under a license from the broadcasting watchdog, so this claim of disinformation is at best subjective.

Bad Guys

Elizabeth Warren: It should not be a criminal offense to cross the border illegally

Elizabeth Warren

Elizabeth Warren
Sen. Elizabeth Warren (D-MA) does not believe it should be a criminal offense to cross the border illegally, she said during an interview with the California Nation podcast, which was posted Monday.

While the presidential candidate hit a number of issues during the broad discussion, Section 1325 of the immigration code, which makes it a criminal offense for people to cross the border illegally, became a highlight.

"Are you in favor of repealing that?" she was asked.

"I am," Warren said, arguing that "criminalizing" illegal entry does not make people safer.

Chess

Iran declares war on US's covert influence in Iraq

iraq us troops
When US officials visited Baghdad and met with the Iraqi Prime Minister Adel Abdel Mahdi, they had two requests: first, to close all commerce and financial exchanges with Iran to strangle the Iranian economy and bring it to its knees. The second was to neutralise the Iraqi groups (known as Hashd al-Shaabi) which sympathise with Iran and carry a similar ideology.

The Iraqi Premier is aware he is being pushed into the heart of two minefields, Iranian and American, and therefore he cannot just walk straight into these fields. He has decided to reject the first US demand because Iraq has religious, commercial and energy bonds with Iran. He is refusing to transform Iraq into a US-Iran battlefield where no winner can be expected to stay on his feet, including Iraq. He wants to force the US administration to back down and agree to provide Iraq with waivers to buy Iranian gas and keep commercial exchange flowing.

What were Abdel Mahdi's reasons for responding to US pressure? He did not want to have the Americans on his back or turn the country upside down. Therefore, though he refused to satisfy US officials in their first request, he did take account of the latter, seeking to avoid a potential coup d'état and a possible US manoeuvre to allow the return of the terrorist group "Islamic State" (ISIS). The Prime Minister issued Diwani Order (decree) no. 237 "to organise Hashd al-Shaabi, where all factions close their headquarters and have the option to either join the armed forces or engage in political activity (unarmed). Any faction acting secretly or publicly bypassing these instructions is forbidden. Compliance with the ultimatum is required by the 31 of July".

The US administration was satisfied with this move, but...