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Ambrose Evans-Pritchard

THE WORLD’S MONEY PRINTING CHAMPION IS JAPAN, NOT THE US

There are no one-way bets in global finance, but Japan's stock market comes close. The authorities are about to funnel astronomical sums into Japanese stocks openly and deliberately under the next phase of Abenomics, both by regulatory fiat and by purchasing the Nikkei index directly with printed money. Prime minister Shinzo Abe is unshackling the world's biggest stash of savings, the $1.3 trillion Government Pension Investment Fund (GPIF). Officials say the ceiling on equity holdings will rise from 12% to around 20% as soon as August, opening the way for a $100 billion buying blitz. Mr. Abe's move comes sooner than expected and amounts to a market shock, though nobody should be shocked anymore as he keeps doubling down on the world's most radical economic experiment. The Nikkei index stalled in December after rising almost 100% since September 2012, even though the Bank of Japan (BoJ) is still showering the economy with money, buying $75 billion of bonds each month. The BoJ's balance sheet will reach 70% of GDP by March 2015, three times the US Federal Reserve's.

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CONFESSIONS OF A PUBLIC DEFENDER

For many years now, I have been a public defender in a large southern metropolitan area. Fewer than ten percent of the people in the area I serve are black but over 90 per cent of my clients are black. The remaining ten percent of my clients are mainly Hispanics but there are a few whites. I have no explanation for why this is, but crime has racial patterns. Hispanics usually commit two kinds of crime: sexual assault on children and driving under the influence. Blacks commit many violent crimes but very few sex crimes. The handful of whites I see commit all kinds of crimes. In all my years as a public defender I have represented only three Asians, and one was half black. As a young lawyer, I believed the official story that blacks are law abiding, intelligent, family-oriented people, but are so poor they must turn to crime to survive. Actual black behavior was a shock to me. The media invariably sugarcoat black behavior. Even the news reports of the very crimes I dealt with in court were slanted. Television news intentionally leaves out unflattering facts about the accused, and sometimes omits names that are obviously black. All this rocked my liberal, tolerant beliefs, but it took me years to set aside my illusions and accept the reality of what I see every day. I have now served thousands of blacks and their families, protecting their rights and defending them in court. What follow are my observations. To be clear, my observations are of defendants in court and their families.  They do not apply to those many blacks leading law-abiding lives.

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AMERICA’S WORST ECONOMIST BLAMES AYN RAND FOR CLIMATE DENIALISM

New York Times columnist Paul Krugman has come up with an exciting new theory as to why the world's economies are still proving reluctant to bomb themselves back to the dark ages in order to "combat climate change." Apparently, it's all the fault of a certain uncompromising Jewish Russian emigree:

Well, think about global warming from the point of view of someone who grew up taking Ayn Rand seriously, believing that the untrammeled pursuit of self-interest is always good and that government is always the problem, never the solution. Along come some scientists declaring that unrestricted pursuit of self-interest will destroy the world, and that government intervention is the only answer. It doesn't matter how market-friendly you make the proposed intervention; this is a direct challenge to the libertarian worldview. And the natural reaction is denial - angry denial. Read or watch any extended debate over climate policy and you'll be struck by the venom, the sheer rage, of the denialists.
Next week, he could maybe tell us why racism is caused by listening to Lynyrd Skynyrd.  What's certain is that Krugman badly needs a career change. He trained, I believe, as an economist but what's palpably clear when reading his article is that he doesn't really understand his subject at all. Let me give you some examples of what I mean.

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HALF-FULL REPORT 06/06/14

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I grew up with Mad Magazine as a kid.  I'm glad to see them at the top of their game. The question is:  Will this be the moment - terrorists being traded for a traitor in a criminal breaking of the law - when America finally snaps?  Is this the last straw on the gargantuan pile of scandal straws to break the camelidian spine of Zero's presidency? Especially when, in the face of a nation-wide explosion of outrage, Zero doubles-down - as he always does - announcing yesterday (6/05) that he has "absolutely no apologies" for trading Taliban terrorist leaders for a deserter so traitorous he taught the Taliban how murder his fellow soldiers. The last American soldier to be executed for desertion was Pvt. Eddie Slovik on January 31, 1945.  Bergdahl deserves a fair trial.  But if he is found guilty, he then deserves the fate of Eddie Slovik. And what fate does Zero deserve?  To be out of power, and to live a long life of humiliation in the realization that history will regard him as despised and loathsome.  Keep reading to find out how this may happen... and there's lots more in this HFR.

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NO MORE POLITICAL CORRECTNESS REGARDING MOSLEM ANTI-SEMITISM

[This speech was delivered at the Israeli Embassy in Prague on May 26 in celebration of Yom Ha'atzmaut, Israel's Independence Day, by Milos Zemin, President of the Czech Republic] Ladies and gentlemen, Let me thank you for the invitation to celebrate Israel's Independence Day. There are dozens of days of independence being celebrated every year in the Czech Republic. Some I may attend, others I cannot. There is one I can never miss, however: it's the Israeli Independence Day. There are states with whom we share the same values, such as the political horizon of free elections or a free market economy. However, no one threatens these states with wiping them off the map. No one fires at their border towns; no one wishes that their citizens would leave their country. There is a term, political correctness. This term I consider to be a euphemism for political cowardice. Therefore, let me not be cowardly. It is necessary to clearly name the enemy of human civilization.

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THE US ECONOMY IS BEING DRAGGED OVER A GREEN CLIFF

"Feeding the masses on unicorn ribs". That was how Walter Russell Mead once poured scorn on Obama's misbegotten attempts to revive the US economy by creating five million "green jobs." Mead was quite right, of course. And there was plenty of evidence to back him up, such as the 2009 report by a Madrid university professor Gabriel Calzada Alvarez that for every expensive "green job" created by government subsidy, 2.2 jobs were destroyed in the real economy. The Obama administration responded as only the Obama administration knows how: by calling in its left-wing attack dogs. Friendly organizations including George Soros's Center for American Progress and various well-funded wind industry lobbyists were recruited to monster this unhelpful evidence, which was dismissed for its "lack of rigor." It's in this context we need to view the Environmental Protection Agency's dispiriting announcement of its latest assault on US industry - disingenuously billed as a "commonsense plan to cut carbon pollution from power plants." Because here's the bottom line:  The more "clean energy" you develop, the more scum-sucking corporatist parasites you attract, the more eagles you slice and dice, and the greater the burden you place on both the taxpayer and the economy - all to no discernible practical purpose whatsoever.

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WHEN IT’S GOOD TO WIPE OUT A SPECIES

The prospect of the deliberate extinction of some harmful species is getting closer.  Be in no doubt - it would be an unambiguously good thing. Smallpox was eradicated outside laboratories in 1977, when Ali Maow Maalin recovered from the disease in Merca, Somalia (he died last year of malaria).  The last case of smallpox was the death of Janet Parker, a medical photographer, in Birmingham in 1978, who caught it from a laboratory. If you had predicted in 1978 that 36 years later we would have extinguished no more diseases (apart from rinderpest, a cattle disease), you would have been thought a dire pessimist. Yet smallpox turned out to be uniquely vulnerable to eradication because its short incubation period, lack of an animal reservoir and its obvious symptoms allowed rapid vaccination responses to contain outbreaks. Polio was expected to follow it to the viral grave soon afterwards, but that dream has been repeatedly postponed. Indeed, this year polio is resurgent, with 82 cases so far, compared with 34 by this date last year. Most of them are in Pakistan, a country where polio vaccinators are sometimes murdered by the Taliban on the suspicion that they are US or Israeli agents spreading Aids or sterilizing girls.

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HALF-FULL REPORT 05/30/14

Before we dive into all the fun of this week, I really need to thank all of you who wrote such kind comments on the Forum regarding the completion of my Every Country in the World life goal.  It's still sinking in that I've done this at last, and your words meant a lot to me... By contrast, Zero's words certainly didn't mean very much to West Point graduating cadets when he spoke to them on Wednesday (5/28).  His speech was an "icy" disaster as described by CNN.  It was so bad that both the WaPo and the New York Times sneered at it... As Americans celebrated Memorial Day last Monday (5/26), with soldiers being told by their Commander-in-Chief that he will "never forget" their sacrifices, US Marine Sgt. Andrew Tahmooressi is shackled in a pestilential Mexican prison cell with Zero not lifting a finger to get him out.  Here's what to do... I've regarded Eric Shinseki as an impossible jerk since he was Clinton's Army Chief of Staff - and by his unilateral decision decided to degrade the Army's elite soldiers by issuing black berets to every soldier in the entire army... OK, humor break. Question:  How do you brainwash a liberal? Answer:

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COMMENCEMENT 2014

[This commencement address was originally published in 2005. We rerun it at college graduation time. Feel quite free to send this to any recent college graduate you may know.] Mr. Chancellor, Members of the Board of Regents, Members of the Faculty, Honored Graduates, Families and Friends: It's funny that they call this ceremony a Commencement, for you've all reached the finish line:  college, goodbye, we're outta here.  Yet of course, "commencement" means a beginning, not an end. But one is supposed to at least start - commence - a talk such as this by saying funny things.  So I'll start by talking about Clark Gable movies.  If you've heard of Clark Gable at all, you know he was the biggest movie star in Hollywood a long time ago.  His most famous movie was Gone With The Wind. He made a movie in 1955 called The Tall Men with Jane Russell as his girlfriend and Robert Ryan as the heavy.  It's a pretty ordinary Western flick with outlaws and cowboys and Indians - and at the end, Ryan, the bad guy, and his henchmen get the drop on Gable, the good guy, and all seems lost.  Suddenly, surprise, Gable outfoxes Ryan and triumphs.  Gable makes his exit, and after he does, Ryan delivers a line that I want you to never forget. Serendipity is funny, a very funny thing, finding something where you least expect it.  Out of the blue, out of a movie awash with pedestrian dialogue, comes a line so profound it detonates inside your brain. Ryan turns to his men and says:

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HOW ANTI-ISRAEL IS THE POPE?

Israeli Prime Minister Binyamin Netanyahu and Foreign Minister Avigdor Liberman were right when they blamed the noxious anti-Israel incitement rampant in Europe for Saturday's (5/24) murderous shooting attack at the Jewish Museum in Brussels and the assault and battery of two Jewish brothers outside their synagogue in a Paris suburb later that day. Anti-Israel incitement is ubiquitous in Europe and is appearing in ever-widening circles of the Western world as a whole. Until this week, the Catholic Church stayed out of the campaign to dehumanize Jews and malign the Jewish state. Pope Benedict XVI was perceived as a friend of Israel, despite his childhood membership in the Hitler Youth. His opposition to Islam's rejection of reason, eloquently expressed at his speech at the University of Regensburg in 2006, positioned him as a religious champion of reason, individual responsibility and law - Judaism's primary contributions to humanity. His predecessor Pope John Paul II was less willing to confront Islamic violence. But his opposition to Communism made him respect Israel as freedom's outpost in the Middle East. John Paul's visit to Israel in 2000 was in some ways a historic gesture of friendship to the Jewish people of Israel. Alas, the Golden Age of Catholic-Jewish relations seems to have come to an end during Francis's visit to the Promised Land this week.

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MOSLEMS ARE LOSING THEIR WAR ON FUN

We all know the Moslem world is a political and cultural disaster zone. All you need to know is the spectacularly low level of book sales in the Arab world, and a similarly miserable record in winning Nobel prizes, whether in literature or hard science.  A dozen years ago, a group of Arab scholars did a report for the United Nations that ascribed the failure of Arab society to a lack of freedom, knowledge and womenpower.  And things have gotten considerably worse since 2002;  the authors could write that there were no ethnic conflicts then.  That's long gone. Never mind failed states -  we're talking about a failed civilization, even in the most culturally advanced Moslem domain, the Islamic Republic of Iran.  The root of their failure is the War Against Fun.  They're not only failures, but grim, humorless failures.  This is the miserable common denominator of the Moslem world. But it is a war that is being lost.

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RUSSIA’S LOOMING NIGHTMARE

The St. Petersburg International Economic Forum is the annual showpiece of Vladimir Putin, who began his political career as deputy mayor of St Petersburg.  In its opening session today (5/22), the most senior Western politician attending told Russia's leaders in the bluntest terms that their country will be frozen out of the global financial system and face slow economic breakdown unless the Kremlin steps back from confrontation with the West. Peter Mandelson, Member of the British House of Lords, former Deputy Prime Minister and EU Trade Commissioner, informed them:

"A sense of Russia-risk is crystallizing around the events in Ukraine. The great danger is that this negative sentiment will set in concrete around Russia.  It is the markets that are leading the way, not governments, and they are quickening the pace. This is the looming nightmare for the Russian economy and it will have to be dealt with very boldly by the Russian government. To be cut off from global capital markets is not a good idea."

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SCIENCE IN AFRICA

Ilheu do Bom-Bom, Principe Island, São Tomé & Principe, Africa.  I have come here, one of the remotest and least known countries in Africa, for two reasons. First is to make a scientific pilgrimage. There's a profound relevance to what happened here almost a century ago, and how science is perverted in America today. So we'll begin there. "Africa" and "science" are two words you don't often see in combination.  Yet it was here that one of the most momentous experiments in the history of science took place.  Here is where the most famous scientist of modern times - Albert Einstein - became famous.  If it hadn't been for what happened here, he'd have remained unknown.  Here's the story.  We'll get to the second reason later.  But here's a hint -- you won't believe how magical this place is.  And yes, there are pictures.

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HALF FULL REPORT 05/16/14

My first email early this morning (5/16) was to congratulate TTPer Karma Singh.  You've been reading his reports on India, the last one being India's Ronald Reagan (4/30/14). The results of history's largest election - well over 500 million ballots cast - were announced today, giving India's Ronald Reagan - Narendra Modi - a stunningly massive victory.  The corrupt Congress Party, which has monopolized power in India for most of the last 67 years, had its clock cleaned.  Modi has a mandate to govern India as strong as Nehru's Congress Party in the 1950s. Nehru was a Third World Socialist who ruined India's economy.  Modi is and will do the opposite. India has much to be proud of today and much to look forward to.  Now we in America must hope that we'll follow in India's footsteps and elect a pro-capitalist pro-freedom pro-patriotism government, starting this November... ...But we certainly won't be taking those steps by electing an immoral idiot like Jeb Bush as president.

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WHY THE MIDDLE CLASS IS VANISHING

Just about any measure of "income inequality" reported by the media or trumpeted by Democrats is grossly misleading. How gross? Take a look at the table below. Note that it is for Mississippi, one of the lowest welfare payment states. Note, too, that this chart is pre-Obamacare, which is hugely redistributive. As you'll see, after considering taxes and redistribution, someone earning $60,000 per year has about $3,400 less effective income than someone earning $14,500 per year. The trend toward part time jobs started before Obamacare, though that made the incentives for part time work even stronger than shown in the chart. The big drop in the percentages of people participating in the work force is not due to aging Baby Boom demographics. The percentage of the 55 and older cohort that is employed has actually increased since 2009. The prime working age participation of the 18-44 and 45-55 year olds has dropped dramatically.  Looking at the chart, you can see that:

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THE LAW THAT CAN PUT OBAMA IN JAIL

On May 12, the Washington Times revealed the latest impeachable outrage by President Barack Hussein Obama. In 2013, ICE (Immigration & Customs Enforcement) released 36,000 criminal illegal aliens from custody, putting them back on American streets instead of deporting them. The 36,000 illegals had more than 87,000 criminal convictions between them, many for murder, assault, drunk driving and the like. Rep. Lamar Smith (R-TX) calls this "the worst jailbreak in American history," and obviously impeachable as it was "sanctioned by the president." Yet it is merely the latest in what would have been in pre-Obama America an unimaginably long list of impeachable "high crimes and misdemeanors" by the current Oval Office occupant.  They are the focus of Andy McCarthy's book, to be released next month, Faithless Execution: Building the Political Case for Obama's Impeachment. The case can be made, of course, but there is a much faster and easier way to eject Zero from office.  It is the law that can put him in jail.

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STOP MAKING EXCUSES FOR ISLAMIST MONSTERS

When it comes to fanatical Islam, we're entranced by the symptoms but refuse to name the disease. The extremes to which Western elites will go to avoid blaming radical Islam for terrorism cripples our efforts to protect innocent Moslems. Terrified of offending butchers, we insist that we're the bigots, not them. We make excuses for monsters. Boko Haram, whose name means "Western learning is forbidden," kidnaps 200 schoolgirls, and the world rightly takes notice. But what about the thousands of peaceful civilians, both Christian and Moslem, Boko Haram has killed, purportedly to install an Islamist state? What about the medical workers, pious volunteers, who are murdered in a faith's name? Hollywood suddenly woke up to Islamic fundamentalism last week in the strangest possible way, boycotting the Beverly Hills Hotel because it's owned by the Sultan of Brunei, who plans to impose the cruelest provisions of Sharia law on his fiefdom's women. Hey, I'm all for the boycott (can't afford the joint, anyway), but this is a combination fashion-statement and NIMBYism par excellence. On vacation, those same stars will stay happily at the Four Seasons, even though a Saudi prince has owned nearly half of its shares. How are women's rights going in Saudi Arabia?

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HALF-FULL REPORT 05/09/14

We start with this Urgent Announcement from Carol Bundy, wife of Nevada's Patriot Rancher Cliven Bundy

Please make your way to Blanding Utah this Saturday May 10th 9AM to protest the BLM Closure of Recapture Canyon. Blanding has been the site of many BLM overreach efforts, including the horrific BLM SWAT team raids that resulted in the deaths of three Blanding residents. County Commissioner Phil Lyman has organized a peaceful ATV ride into "Recapture Canyon".  This Canyon was "temporarily" closed over 7 years ago by the BLM.  You do not need an ATV to participate.   We need to help the people of Blanding re-establish who is in control of the land.  This is your next stand.  Will you be there to help them like you helped us?  Please make the trip to Blanding, we need to keep sending the message loud and clear wherever the BLM is illegally asserting its power.  Thank you, Carol
A message with direction and map from San Juan County Commissioner Lyman is appended[1] at the end of this HFR.  Blanding is in the Four Corners region where Utah, Colorado, New Mexico, and Arizona meet.  For any TTPers anywhere near - Taos, Phoenix, even Denver - try to be there. The BLM - Bureau of Land Management - unconstitutionally controls over 270 million acres or 422,000 square miles of "public" lands.  That's an area as large as Texas and California combined, or twice the size of France.  It has morphed into a Fascist Police State agency of militarily-armed Gestapo goons.   The people of Blanding and all San Juan County are so totally fed up with federalie BLM fascism that San Juan County Sheriff Rick Eldredge personally went to the Bundy ranch in Mesquite, Nevada, to ask for their support.  Thus this plea from Carol Bundy. This is incredibly short notice, yes - but try to be there if at all possible.

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WE’RE NOT RUNNING OUT OR USING UP THE WORLD’S RESOURCES

How many times have you heard that we humans are "using up" the world's resources, "running out" of oil, "reaching the limits" of the atmosphere's capacity to cope with pollution or "approaching the carrying capacity" of the land's ability to support a greater population? The assumption behind all such statements is that there is a fixed amount of stuff-metals, oil, clean air, land-and that we risk exhausting it through our consumption. "We are using 50% more resources than the Earth can sustainably produce, and unless we change course, that number will grow fast-by 2030, even two planets will not be enough," says Jim Leape, director general of the World Wide Fund for Nature International (formerly the World Wildlife Fund). But here's a peculiar feature of human history: We burst through such limits again and again. After all, as a Saudi oil minister once said, the Stone Age didn't end because we ran out of stones.  So here's why all the ecologists' scaremongering is baloney.

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CHINA AND THE JEWS

Over the past couple of decades the Chinese have become more interested in the Jews.  Of late the Chinese regime has been bringing Jewish scholars and theologians to the People's Republic to discuss Torah, Talmud, Mishnah and even some of the more mystical tracts. Believe it or not, there are now Chinese government radio broadcasts in Hebrew.  The Jewish experts who are brought to China find themselves speaking Hebrew with their Chinese interlocutors.  Why? It's no surprise that China-Israel trade is increasing, nor that the China-Israel relationship has grown and deepened.  After all, Israel may well be the most dynamic country in the world, bursting at the seams with high-tech startups, dazzling inventions-especially in military and medical technologies-and highly educated and talented people. But I'm not talking about Israel here.  This is about the Chinese fascination with the Jews and Judaism, the religion and the People of the Book.  I've got a theory.

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CHECK YOUR PRIVILEGE OR CHECK YOUR CHARACTER?

Hi, my name is Tal Fortgang, and I'm a freshman at Princeton University.  I'd like to tell you about a phrase that floats around college campuses, Princeton being no exception, that threatens to strike down opinions without regard for their merits, but rather solely on the basis of the person that voiced them. "Check your privilege," the saying goes, and I have been reprimanded by it several times this year. The phrase, handed down by my moral superiors, descends recklessly, like an Obama-sanctioned drone, and aims laser-like at my pinkish-peach complexion, my maleness, and the nerve I displayed in offering an opinion rooted in a personal Weltanschauung. "Check your privilege," they tell me in a command that teeters between an imposition to actually explore how I got where I am, and a reminder that I ought to feel personally apologetic because white males seem to pull most of the strings in the world. I do not accuse those who "check" me and my perspective of overt racism, although the phrase, which assumes that simply because I belong to a certain ethnic group I should be judged collectively with it, toes that line. But I do condemn them for diminishing everything I have personally accomplished, all the hard work I have done in my life, and for ascribing all the fruit I reap not to the seeds I sow but to some invisible patron saint of white maleness who places it out for me before I even arrive.

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ARE YOU FLOURISHING?

At an investment conference in Carlsbad, California last month, there were dozens of experts sharing their best ideas on stocks, bonds, interest rates, currencies, commodities, real estate and metals. But I had the distinct honor of introducing someone who wasn't there to tell attendees how to optimize their portfolios. He was there to show us how to optimize the rest of our lives. It was my good friend, Dr. Joel Wade. As one of Jack Wheeler's closest friends, Joel has been writing The Virtue of Happiness column since the inception of TTP in 2003.  But I thought you should know more about him beyond the wisdom of these columns. He offers a vital service.

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MEXICO’S HISTORY, PELOSI’S TREASON, AND CINCO DE DRUNKO

Today, May 5th, is known as Cinco de Drunko among college kids these days.  They know it's nothing more than an excuse to get wasted on Jose Cuervo. Cinco de Mayo is a phony tradition, a joke on los gringos, then exploited as a marketing gimmick by Mexican restaurant chains.  So at TTP, our tradition on or about May 5th is to explain la verdad, the truth. Which is, to begin with: Nobody in Mexico cares about May 5th.  Only we, us gringos, pretend to.  For if you ask just about any reveler at the nearest Pancho Villa's Cantina or some such Mexican-themed bar anywhere in the US, just what is being celebrated on May 5th, you'll get either a blank stare or "It's their July 4th " ignorance. So first the real history of Mexico.  Then the reality - the horrific reality of how treasonous fascists like Nancy Pelosi are using Mexico to destroy their own country.  And who is the one man that will stop them.

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HALF-FULL REPORT 05/02/14

It's great to be back at the HFR ramparts.  I can't thank Joe Katzman enough for the amazing job he did all of last month while I was gone in Yemen, Socotra, Libya, Tunisia, and Portugal.  Thanks, Joe!  And to Miko, who held down the entire TTP fort. Here's a quote to start things off: "Russians are immune to both reason and the bludgeon.  The only thing you can do with a Russian is give him what he wants or kill him.  Unfortunately, even if you give him what he wants, sooner or later, you're probably going to have to kill him anyway." This observation made by Rail Black, the fictional hero of Wildcase, a marvelous thriller novel written by my friend of many years, Neil Russell, seems acutely apt this week... Other than Putin's invasion of Sudetenland Ukraine possibly triggering war between the US and USSR Russia - financial, military, covert or otherwise - the other blockbuster news of the week was the discovery of the Smoking Benghazi Gun that will blow away Hillary's chances for 2016.  Here it is... All this talk of Benghazi reminds me of the mistake Clive Bundy made... And the HFR Hero of the week is obviously...

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MAY DAY SHOULD BE MAY DAY NOT COMMIE DAY

Sintra, Portugal.  We're finishing a repeat of the TTP Portugal Retreat today.  What a wonderful time Rebel and I have been having with our fellow TTPers.  We're completing it by having our own celebration of May Day. For millennia, especially here in Europe, the First of May was a happy, joyful celebration of life after winter, with dancing around a Maypole and crowning a pretty girl with flowers as Queen of May.  When we were kids, my sisters would always get up early to pick flowers, and leave them in a basket at the front door for Mom, our family's Queen of May. Today is a national holiday in Portugal, as it is in over 30 other countries in Europe and dozens of other countries around the world.  But not as May Day.  Instead, it's called International Workers Day.  Since it was the invention of Communists in 1889, it should be called Commie Day.  Only Communists could take an innocent celebration of springtime and turn it into celebration of murder, terrorism, hate, and envy. Here's the story.  It begins not in Europe but in America.

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AMERICA RISING

[Note by JW:  Ambrose has written something which should provide lively debate on the TTP Forum.  Feel free to counter him with opposing facts and data.] Americans are purging their excesses one by one. Spending by the US Federal government has seen the steepest drop as share of national income since demobilization after the Second World War. Claims that President Barack Obama is bankrupting America with a lurch towards hard-left statism are for tabloid consumption only. Outlays have fallen from 24.4% to 20.6% of GDP in five years. Spending is roughly in line with its 40-year average. This fiscal squeeze has been achieved without driving the economy into recession or a Lost Decade, a remarkable feat. The US Congressional Budget Office expects the budget deficit to drop to 2.8% of GDP this year, and 2.6% next year. This is about the same as the Eurozone but with a huge difference. The US economy is expanding fast enough to outgrow its debts. The US energy revolution is of course at least half the story. It has stoked booms across the Dakotas, Wyoming, Nebraska, Washington, Oregon, Utah and Texas. Francisco Blanch, from Bank of America, estimates that shale gas and oil have given the US economy an extra tailwind worth 1.9% of GDP - what he calls the "energy carry" - with effects rippling through the chemical and plastics industries. New investments in ammonia plants are rising at an exponential rate, thanks to natural gas prices that are $4.40 (per BTU) in the US and $15 on Asia's spot market. While Obama can in no way claim credit for this, the other half of the story is monetary stimulus a l'outrance (to the bitter end) - quantitative easing - to offset fiscal tightening and prevent a "pro-cyclical" downward spiral, which is what occurred when the European Central Bank jumped the gun and raised rates twice in 2011 before recovery was entrenched, setting off the cataclysmic crisis that nearly destroyed EMU in mid-2012.

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INDIA’S RONALD REAGAN

Hi, fellow TTPers.  You first heard from me last October when I told you about The Coming Capitalist Salvation of India. It was a heads-up regarding the almost impossible-to-believe level of government venality and corruption in India today - and its impending cure: the election of India's Ronald Reagan, Narendra Modi.  So I'd like to suggest you re-read it to get you back to speed before we discuss what's happening right now. Ready?  OK, here we go. Since India's last general election in 2009, 100 million more voters have been added to the rolls, bringing India's electorate to 815 million.  You can't have them vote all at once, so the 2014 election is taking place in 9 regional phases from April 7 to May 12.  All 543 seats of India's Parliament, the Lok Sabha, will be chosen from a multitude of parties.  The results will be announced on May 16. The country has not witnessed this kind of excitement about an election since independence in 1947. There have been record voter turnouts across the country. I cannot emphasize the prominence of this election to India and the world. The result of this election will not just change but transform the country, either for good or worse.

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AMERICAN SPRING?

Carthage, Tunisia. carthage.png The ruins here have a personal significance for me, as this is where Hannibal (247-181 BC) was born and raised.  He grew up to be one of the greatest military geniuses in history.  Everyone knows of his leading his army over the Alps with war elephants to attack Rome.  That was in 218 BC.  It would be 2,197 years until elephants crossed the Alps again over the actual pass used by Hannibal - the Col du Clapier - when I led the expedition that did it in 1979. The view from Byrsa Hill, upon which the main citadel of Carthage was built, is spectacular.  The Mediterranean shimmers in cobalt blue, while the capital city of Tunisia, Tunis, rises in the distance.  The extraordinary events that took place there three years ago launched what became known as the Arab Spring. It was 190 miles to the south, however, in the obscure rural town of Sidi Bouzaid, where the initial spark occurred.  As I gazed out into the distance, I thought of the connection between an impoverished street vendor in Sidi Bouzaid named Mohamed Bouazizi and a cattle rancher in Bunkerville, Nevada named Cliven Bundy.

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THE DISAPPEARANCE OF AMERICA’S WILL

The most terrifying aspect of the collapse of US power worldwide is the US's indifferent response to it. In Europe, in Asia, in the Middle East and beyond, America's most dangerous foes are engaging in aggression and brinkmanship unseen in decades. The US has responded to Chinese aggression with ever-escalating attempts to placate Beijing - while China has responded to these US overtures by demonstrating contempt for US power. As for Europe, the Obama administration's responses to Russia's annexation of Crimea and to its acts of aggression against Ukraine bespeak a lack of seriousness and dangerous indifference to the fate of the US alliance structure in Eastern Europe. In the Middle East, it is not only the US's obsessive approach to the Palestinian conflict with Israel that lies in shambles. The entire US alliance system and the Obama administration's other signature initiatives have also collapsed.  The key examples are Iran and Syria. Yet the problem is not limited to Obama and his advisers or even to the political Left. Their delusional view that the US will suffer no consequences for its consistent record of failure and defeat is shared by a growing chorus of conservatives.

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EARTH DAY TRAGEDY

A tragedy occurred for all the greenies celebrating Earth Day yesterday (April 22). The Associated Press released an AP-GfK poll revealing that more Americans believe in God than in man-made global warming. Can't you just hear the wailing and gnashing of greenie teeth?  They will seize on this as proof that Americans are credulous and anti-scientific, but I'd draw the opposite conclusion. The survey instead shows how remarkably resilient Americans are in the face of relentless environmental brainwashing. The schools, the universities, the government, the green NGOs, Hollywood and the Enemedia have invested billions of man hours and dollars trying to persuade Americans that climate change is the greatest threat of our age. But according to this survey, only 33 per cent are buying it - while another 37 per cent remain thoroughly unconvinced. In the survey, respondents were asked how confident they were in a range of scientific statements. The ones in which they had fullest confidence were:

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HOW DANGEROUS IS TREASURY’S WAR ON RUSSIA?

The United States has constructed a financial neutron bomb. For the past 12 years an elite cell at the US Treasury has been sharpening the tools of economic warfare, designing ways to bring almost any country to its knees without firing a shot. The strategy relies on hegemonic control over the global banking system, buttressed by a network of allies and the reluctant acquiescence of neutral states. Let us call this the Manhattan Project of the early 21st century. "It is a new kind of war, like a creeping financial insurgency, intended to constrict our enemies' financial lifeblood, unprecedented in its reach and effectiveness," says Juan Zarate, the Treasury and White House official who helped spearhead policy after 9/11. "The new geo-economic game may be more efficient and subtle than past geopolitical competitions, but it is no less ruthless and destructive," he writes in his book Treasury's War: the Unleashing of a New Era of Financial Warfare. Bear this in mind as Washington tightens the noose on Vladimir Putin's Russia, slowly shutting off market access for Russian banks, companies and state bodies with $714bn of dollar debt (Sberbank data).  And be aware of the clear risk of an "asymmetric" riposte by the Kremlin.

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SPRINGTIME IN LIBYA

Tripoli, Libya.  I - and events - are moving fast here, so I'm writing this on the fly.  I got here over the weekend after an incredible time in Socotra - which is more amazing than any pictures could show but no internet. The night I arrived, Saturday 4/12, there was an attack on the family of Libya's latest Prime Minister, Abdullah al-Thinni.  The next morning, Sunday 4/13, he resigned.  Day before yesterday, Tuesday 4/15, Jordan's ambassador to Libya, Fawaz al-Aytan, was kidnapped by masked gunmen in broad daylight right here in downtown Tripoli. I only learned of these events on CNN's website.  There was no evidence of anything unusual driving around the city, no one I talked to thought they were worth mentioning.  By all outward appearances, everything seems normal.  Lots of traffic, everyone going about their business, traffic cops behaving normally, no military police with checkpoints all over, no heightened security that I could see. The same outside the city.  There are two astounding World Heritage Sites - Sabratha 40 miles west of Tripoli, and Leptis Magna, 80 miles to the east.  I've been to both since I got here, and not a single checkpoint on the way to either, government soldiers nor any militia.  Everything and everyone seemed normal, no problem.  There are some weird things, of course.  Libya is one of the world's major oil producers, yet there are long - really long - lines of cars at every gas station.  An appreciable number of drivers, over 10% at least, are majnoon, reckless madman crazy.  Huge auto junk yards filled with horrifically wrecked cars attest to their winning Darwin Awards. The positive surprises, however, outnumber the negative.  You could say it's springtime in Libya.

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FORGETTING FREEDOM ON PASSOVER

Passover, which began on Monday night (4/14), is the festival of freedom. We repeat the story of enslavement, flight, redemption and freedom each year at Passover, because our sages wanted to ensure that we never forget the value of freedom, and remain vigilant in our fight for it. In Israel, where our freedom is physically threatened, most Jews understand and live by the lessons of Passover.  But something is happening to the Jews in America. More and more, every day we see American Jews embracing intellectual bondage. We see American Jewish leaders embracing the intolerant, who seek to constrain freedom, and shunning those who fight for freedom and the rights of Jews and other threatened peoples and groups. To a large degree, this rejection of the lessons of the Exodus among the American Jewish community reflects the growing intolerance and tyranny of the political Left, to which most American Jews pledge their allegiance.  Here are the latest odious examples.

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RUSSIA’S ACHILLES HEEL

Russia is at increasing risk of a full-blown financial crisis as the West tightens sanctions and Russian meddling in Ukraine pushes the region towards conflagration. The country's private companies have been shut out of global capital markets almost entirely since the crisis erupted, causing a serious credit crunch and raising concerns that firms may not be able to refinance debt without Russian state support. "No Eurobonds have been rolled over for six weeks. This cannot continue for long and is becoming a massive issue," said an official from a major Russian bank. "Companies have to roll over $10bn a month and nothing is moving. The markets have been remarkably relaxed about this, given how dangerous it is. Russia's greatest vulnerability is the bond market," he said. The warnings came as EU foreign ministers agreed to draft plans for "Stage III" sanctions - this time hitting economic and financial targets - if Russian president Vladimir Putin sends troops into East Ukraine or tries to seize territory. Washington is forcing the pace in any case as is tightens the noose by other means, using regulatory "stealth" power to force banks across the world to pull back from Russia.

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SHERLOCK HOLMES COULD NOT SOLVE THE MYSTERY OF MH370

On Tuesday (4/08), we learned that "crews searching for the missing Malaysia Airlines flight MH370 have failed to relocate the sounds previously heard deep in the Indian Ocean, raising fears that the batteries in the plane's black box may have died." The tragic disappearance of all 239 people on board flight MH370 in the Indian Ocean has one really peculiar feature to it: none of the possible explanations is remotely plausible, yet one of them must be true. The usual rule on these occasions - choose the simplest explanation or, as William of Ockham taught, make the fewest assumptions - simply does not work. There is no simple explanation. Whether the cause was an accidental decompression, a terrorist act or a suicide, all three require us to assume that an outlandish and bizarre sequence of events happened. I don't know about you, but I have had conversations about MH370 with many people recently, some of whom were fairly confident that they knew what had happened. Yet every story they told was baroque in its contrivance to the point of implausibility, requiring a chain of events that stretched my credulity. Yet, as I say, one such story will turn out to be right. Consider the sequence of events.

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WILL GERMANY DESTROY THE EURO?

The eurozone debt crisis is deepening and threatens to re-erupt on a larger scale when the liquidity cycle turns, a leading panel of economists warned in a clash of views with German officials in Berlin. "Debts above 130% of GDP for Italy and 170% for Greece are a recipe for disaster once we go into the next downturn," said Professor Charles Wyplosz, from Geneva University. "Today's politicians believe the crisis is over and don't want to hear any more about it, but they have not tackled the core issues of fiscal union and public debt," he said, speaking at Euromoney's annual Germany conference. Ludger Schuknecht, director-general of the German finance ministry, insisted that the debt-stricken states of the eurozone are well on the way to recovery, ending their EU-IMF rescue programs successfully one by one. There is no need for any major shift in policy. "The strategy has been right. We need to bring down debt and this is now consensus," he said. This optimism is sharply at odds with the view of almost every foreign-based economist attending the event. Charles Dallara, former head of the International Institute for Finance and chief negotiator for global banks in Greece's debt-restructuring, said little has been done to put the eurozone on a viable footing, even if sovereign bond yields in southern Europe have fallen to record lows.

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SIBERIA AND THE SOUTH CHINA SEA

[Note:  I am off to Socotra and beyond.  Jack Kelly is also away on a well-deserved vacation.  In our absence, Joe Katzman will man the HFR ramparts.  He is asking TTPers to send him their suggestions for what recent events of note deserve inclusion in the HFR. "Send your suggestions etc. to our new [Half-Full Report email address ] at gmail dot com, the "person" is TTPHFR" - Thanks, and thanks, Joe!] Here's an interesting question:  Do Russians and Chinese exist?  Obviously yes in an ordinary sense.  But do they possess any individual identity beyond being simply members of their tribal collective? Human beings seem genetically hard-wired to be tribal.  Just about all of us derive at least part of our self-identity via membership in one or more tribes.  But most in the West do not submerge their identity into the tribe.  An exception might be a substantial fraction of American Blacks, for whom being "black" overrides everything else.  This, of course, is racism, but all forms of racism are merely a variety of tribalism. For most of us, however - and this includes a great many American Blacks - what we see in the mirror is an individual human being distinct and separate from others.  Our participation in the welter of groups and tribes to which we belong is something more of choice than necessity, something that we could withdraw from without feeling at a loss to know who we were. This is not the case with the great majority of Russians and Chinese.  Having little sense of individual empowerment, the average Russian gets a frisson whenever his government pushes other governments and countries around.  They want Russia to be a bully.  They want other people to be afraid of them because they are Russian.

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ARONOFSKY’S NOAH DESERVES AN OSCAR FOR BEST COMEDY OF THE YEAR

I just saw Noah. The film is a remarkable display of special effects. It is also one of the funniest comedies I have seen in a very long time. Aronofsky deserves a great deal of praise for turning a serious subject into a non-stop laugh fest of techno-electro music, orchestral scores, blasting special effects, and even rock monsters. The ad campaign tried to ease Christians' nerves that all would be well, artistic license was taken, but the movie would be faithful to the story. If they hadn't tried to con Christians into the movie, I wouldn't have a problem. It was a pretty awesome sci-fi spectacle complete with Ent-like rock monsters, a super-powered Methuselah, Adam and Eve as glow in the dark space aliens, and Hermione Granger. I am not kidding.

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HALF-FULL REPORT 03/28/14

Is this the most fabulous 30-second political ad you've ever seen in your life? {youtube}p9Y24MFOfFU{/youtube}  Joni Ernst is a 43 year-old state senator, a Lt. Colonel in the Iowa National Guard who served in Iraq, and a rock-solid conservative - see her issue positions - who is a Republican candidate for the US Senate. On Monday (3/24), she released the ad above that's been hailed by NRO as having "The Greatest Opening Line in the History of Campaign Commercials."  To wit: "I'm Joni Ernst... I grew up castrating hogs on an Iowa farm, so when I get to Washington, I'll know how to cut pork." On Wednesday (3/26), the front page headline in Iowa newspapers was "Sarah Palin Endorses Joni Ernst."  That evening, Jimmy Fallon on The Tonight Show showed the ad in his opening monologue, then commented:  "I don't know what she's running for but just give her the job."  On Comedy Central, Stephen Colbert endorsed her, explaining: "Joni, you had me at 'castration.' Folks, it does not matter what else she stands for. I'm pulling for her whole-hog, or whatever is left of the hog when she's done with it."

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WAS SEIZING CRIMEA WORTH WRECKING THE RUSSIAN ECONOMY?

Capital flight from Russia has spiked dramatically since President Vladimir Putin first sent troops into Crimea and may reach $70 billion over the first quarter of the year, prompting fears that the country may soon have to impose capital controls to stem the loss. "It is shocking," says Bartosz Pawlowski from BNP Paribas. "Markets have been extremely complacent, fooling themselves that Russia is invulnerable because it has almost half a trillion in foreign reserves. But reserves can become almost irrelevant in this sort of crisis." Lars Christensen from Danske Bank says the authorities may resort to some form of financial coercion to lock down funds in Russia. "Capital controls are a serious risk, and should not be discounted. Whatever now happens, there has been permanent damage to the Russian economy because investors are not going to forget this lightly." The US and the EU are ratcheting up the pressure each day following a spate of sanctions last week on Mr. Putin's inner circle. The latest example came Monday (3/24), when....

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