A New Recession and a New World Devoid of Washington’s Arrogance?

The White Elephant of Global diplomacy is tanking visibly monthly.
Additional words are not needed to paint clarity of what the true reality is, only what is required is that you take the time to to read and absorb what is being said.

The changes coming will affect life in North America for a long time.


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Institute for Political Economy
By Paul Craig Roberts
25 June 2014

A final number for real US GDP growth in the first quarter of 2014 was released today. The number is not the 2.6% growth rate predicted by the know-nothing economists in January of this year. The number is a decline in GDP of -2.9 percent.

The negative growth rate of -2.9 percent is itself an understatement. This number was achieved by deflating nominal GDP with an understated measure of inflation. During the Clinton regime, the Boskin Commission rigged the inflation measure in order to cheat Social Security recipients out of their cost-of-living adjustments. Anyone who purchases food, fuel, or anything knows that inflation is much higher than the officially reported number.

It is possible that the drop in first quarter real GDP is three times the official number.

Regardless, the difference is large between the January forecast of +2.6 percent growth and the decline as of the end of March of -2.9 percent.

Any economist who is real and unpaid by Wall Street, the government, or the Establishment knew that the +2.6 percent forecast was a crock. Americans’ incomes have not grown except for the one percent, and the only credit growth is in student loans, as those many who cannot find jobs mistakenly turn to “education is the answer.” In an economy based on consumer demand, the absence of income and credit growth means no economic growth.

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Gazprom Ready To Drop Dollar, Settle China Contracts In Yuan Or Rubles

Likely the most important story of the week so far for the USD, on top of a meeting of G77 who want to move away from the dollar, which took place the other week.

Ignoring the reality occurring and holding on to what no longer exists is meaningless in a world where events are moving so quickly. More desert the US again.



Zero Hedge
By Tyler Durden
26 June 2014

A little over a month ago, when Russia announced the much anticipated "Holy Grail" energy deal with China, some were disappointed that despite this symbolic agreement meant to break the petrodollar's stranglehold on the rest of the world, neither Russia nor China announced payment terms to be in anything but dollars. In doing so they admitted that while both nations are eager to move away from a US Dollar reserve currency, neither is yet able to provide an alternative. This changed rather dramatically overnight when in a little noticed statement, Gazprom's CFO Andrey Kruglov uttered the magic words (via Bloomberg):

  • GAZPROM READY TO SETTLE CHINA CONTRACTS IN YUAN OR RUBLES: CFO

In other words just as the US may or may not be preparing to export crude - a step which would weaken the dollar's reserve status as traditional US oil trading partners will need to find other import customers who pay in non-USD currencies - the world's two other superpowers are preparing to respond. And once the bilateral trade in Rubles or Renminbi is established, the rest of the energy world will piggyback.

But wait, there's more. Because only now does Gazprom appear to be unveiling all those "tangents" that were expected to hit the tape in May. Among Kruglov's other revelations were that Gazprom is in talks on a Hong Kong listing and is weighing the issuance of Yuan bonds. Gazprom is also considering selling bonds in Singapore dollars, the CFO said at briefing in Moscow. Wait, you mean that by alienating and embargoing Russia from western (USD, EUR-denominated) funding markets, it has pushed the country to turn to its pivoting partner, China and thus further cementing the framework for the next Eurasian strategic alliance?

Unpossible

But wait, there's still more, because it is not just Gazprom. As the PBOC announced overnight, PBOC Assistant Governor Jin Qi and Russian central bank Deputy Chairman Dmitry Skobelkin led a meeting held yesterday and today in Shanghai. The meeting discussed cooperating on project and trade financing using local currencies. The meeting discussed cooperation in bank card, insurance and financial supervision sectors.

In other words, central bankers of China and Russia discussed how to replace the dollar with Rubles and Yuan. From the PBOC:


In retrospect it will be very fitting that the crowning legacy of Obama's disastrous reign, both domestically and certainly internationally, will be to force the world's key ascendent superpowers (we certainly don't envision broke, insolvent Europe among them) to drop the Petrodollar and end the reserve status of the US currency.

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First demonstration of a self-powered cardiac pacemaker

At this pace of research, life will be extended immeasurably. Once we crack the heart, next step the organs. Size too?

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Energy Harvesting Journal
25 June 2014

As the number of pacemakers implanted each year reaches into the millions worldwide, improving the lifespan of pacemaker batteries has been of great concern for developers and manufacturers. Currently, pacemaker batteries last seven years on average, requiring frequent replacements, which may pose patients to a potential risk involved in medical procedures.

A research team from the Korea Advanced Institute of Science and Technology (KAIST), headed by Professor Keon Jae Lee of the Department of Materials Science and Engineering at KAIST and Professor Boyoung Joung, M.D. of the Division of Cardiology at Severance Hospital of Yonsei University, has developed a self-powered artificial cardiac pacemaker that is operated semi-permanently by a flexible piezoelectric nanogenerator.

The artificial cardiac pacemaker is widely acknowledged as medical equipment that is integrated into the human body to regulate the heartbeats through electrical stimulation to contract the cardiac muscles of people who suffer from arrhythmia. However, repeated surgeries to replace pacemaker batteries have exposed elderly patients to health risks such as infections or severe bleeding during operations.

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Humor | Trading Private Bergdahl

American humor breaks through.

Humor | two of the best comeback responses


Number 1:

If you ever testify in court, you might wish you could have been as
sharp as this policeman. He was being cross-examined by a defense
attorney during a felony trial. The lawyer was trying to undermine the
police officer's credibility .....

Q: 'Officer --- did you see my client fleeing the scene?'

A: 'No sir. But I subsequently observed a person matching the
description of the offender, running several blocks away.'

Q: 'Officer, who provided this description?'

A: 'The officer who responded to the scene.'

Q: 'A fellow officer provided the description of this so-called
offender. Do you trust your fellow officers?'

A: 'Yes, sir. With my life.'

Q: 'With your life? Let me ask you this then officer. Do you have a
room where you change your clothes in preparation for your daily
duties?'

A: 'Yes sir, we do!'

Q: 'And do you have a locker in the room?'

A: 'Yes, sir, I do.'

Q: 'And do you have a lock on your locker?'

A: 'Yes, sir.'

Q: 'Now, why is it, officer, if you trust your fellow officers with
your life, you find it necessary to lock your locker in a room you
share with these same officers?'

A: 'You see, sir, we share the building with the court complex, and
sometimes lawyers have been known to walk through that room.'

The courtroom EXPLODED with laughter, and a prompt recess was called.


Number 2:

Now We Know Why He Was a General -----

In an recent interview, General Norman Schwarzkopf was asked if he
thought there was room for forgiveness toward the people who have
harboured and abetted the terrorists who perpetrated the 9/11 attacks
on America.

His answer was classic Schwarzkopf.

The General said, "I believe that forgiving them is God's
function... OUR job is to arrange the meeting."

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Why Myanmar's plan to acquire fighter jets from China, Pakistan should worry India

I suppose military toys displace economic infrastructure which is sadly needed. China and Pakistan as key Nuclear powers are taking up arms sales and ring fencing India.

Chief of Army Staff General Bikram Singh (L) shakes 
hands with Deputy Commander-in-Chief Defence 
Service & Commander-in-Chief of the Myanmar Army, 
Vice Senior General Soe Win in New Delhi on 
11 December 2013. AFP

First Post
By Rajeev Sharma
25 June 2014

There is a pressing need for the new Indian government to engage with Myanmar at the highest levels as Pakistan and China are all set to enlarge their strategic footprints in Myanmar by selling fighter aircraft to that country.

Myanmar government is planning to procure an unspecified number of JF-17 Thunder multi-role combat aircraft. JF-17 is the joint project of Pakistan Air Force, Pakistan Aeronautical Complex (PAC) and Chengdu Aerospace Corporation (CAC) of China.

While India cannot officially object to the proposed JF-17 deal, the development underlines the need for India getting its act together. India can do so in two ways: overtly and covertly.

Overtly, India can step up engagement with Myanmar at all levels, particularly politically and militarily. Prime Minister Narendra Modi needs to put this crucial contiguous neighbour on the front burner of his near-abroad foreign policy outreach and ensure a top level visit within a few weeks.

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