Economics, Eurasia, Media, Policy, Politics, Social development, Truth

Vladimir Putin’s 17 years in power: the scorecard

Mr. Putin can’t seem to get a break in the western media. I watched his recent interview with CBS’s Megyn Kelly with her tiresome, boring questions like, “did Russia interfere in our election,” “did your ambassador meet with Trump’s election officials,”  “isn’t it true that you’re a corrupt murderous thug,” etc. Only in response to Kelly’s last question did Mr. Putin get to name a handful of his achievements in Russia. But someone ought to better prepare his talking points on this score. The below excerpt from my upcoming book summarizes how Russia has changed during the 17 years since Mr. Putin has been at helm.

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Policy, Politics, Social development

Surveillance state: it ain’t about your privacy

We should be very concerned about the surveillance state in the west – but our privacy is not the main reason why.

Wikileaks’ latest dump of CIA documents confirmed what many of us suspected all along, especially after the Edward Snowden revelations: that the NSA (and GCHQ…) use our computers, mobile devices, and even internet-connected TV sets to spy on us. Some people feel they have nothing to hide, so they aren’t bothered about it. Others feel outraged on the grounds that it violates our civil liberties and our right to privacy. But there’s a much more important reason to be concerned about mass surveillance, and it isn’t about the privacy of the vast majority of us. Continue reading

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Commodity price, Commodity risk, Economics, Energy crisis, Hedging, Inflation, Oil market, Policy, Social development

Is an epic energy crunch in the making?

Last year I published a report with the (justifiably) bombastic title, “$500 per barrel: could oil price rise tenfold?” One of my central claims was that producing oil requires investment of real capital including materials, equipment and highly skilled labor, and that, “as more and more resources are required to generate the same amount of liquid fuels, energy production is becoming ever more expensive to society in real terms.” Thus, as it becomes more expensive in real terms (as the deteriorating EROEI figures indicate), the fact that energy has recently become cheaper in nominal (dollar) terms can only be a temporary abberation. EROEI stands for energy return on energy invested; in the early 1900s, we obtained 100 barrels euqivalent of oil per barrel invested (EROEI of 100 to 1); today we are at about 15 to 1 globally and at 11 to 1 in the USA. Continue reading

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Economics, Policy, Politics, Social development

Meet the riff-raff Trump supporters!

Donald Trump and his administration have been at the receiving end of passionate denounciations and scorn from many opinion leaders in the media. At the same time Trump’s approval rating among American voters has ranged between 50% and 60%. Here’s a statistical sketch of this American riff-raff and why they may support Trump.

Fully 35% of Americans do not have enough money to live comfortably (english: they can’t make ends meet). That’s more than 110 million people. These Americans have to supplement their cost of living with credit card debt. The Urban Institute reports that this same proportion of Americans (35%) have debt in collections (180 or more days past due). On average, the households that carry credit card debt are over $16,000 in the hole, paying an average interest rate at 16.1% (that’s $2,600 per year just in interest). Continue reading

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Media, Policy, Politics, Psychology, Truth

Zika hype and how the media fail to serve us

Noam Chomsky wrote that, “Citizens of the democratic societies should undertake a course of intellectual self defense to protect themselves from manipulation and control, and to lay the basis for meaningful democracy.”

Any time the mainstream media latch onto an issue and make it a big story you can be sure that it’ll be spun, doctored and distorted so that the public can’t take a well-informed position on the subject. Examples of this are countless and pervasive. About a year ago, the Zika virus story suddenly burst forth, seemingly out of nowhere, linking the mosquito-borne virus with frightful birth deformities in infants of affected mothers, including microcephaly. The story led to mass trip cancellations, abortions, unnecessary carpet-spraying against mosquitoes (which killed millions of bees), and much hysteria in general. As it turns out, the virus is harmless. Continue reading

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Central banking, Commodity price, Economics, Inflation, Policy, Uncategorized

Greenspan: Fed balance sheet is a tinderbox of explosive inflation looking for a spark!

In June 2011 Carmen Reinhart wrote a paper for the IMF titled “Financial Repression Redux.” She suggested that the current policy of financial repression could ultimately lead to high levels of inflation. Today, five years later it seems like she couldn’t have gotten it more wrong. In spite of the unprecedented monetary expansion, monetization of public debt and swelling central bank balance sheets, deflation seems entrenched. So why worry about inflation at all? In short, because deflation could actually give rise to inflation. Continue reading

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Policy, Politics, Something completely different

Ex UK Ambassador Craig Murray after visiting Julian Assange: it wasn’t the Russians…

After visiting with Julian Assange, former UK Ambassador Craig Murray reported on his blog: “I can tell you with 100% certainty that it is not any Russian state actor or proxy that gave the Democratic National Committee and Podesta material to WikiLeaks.” The full article is here: How to Really Really Upset the Foreign Office and Security Services.

Alex Krainer is an author and hedge fund manager based in Monaco. Recently he has published the book “Mastering Uncertainty in Commodities Trading“.

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