CHINA'S MARKETS IN TROUBLE, AGAIN

Three stories from the NY Times ...

It happened again, for the second time this week. China had to close its stock market because of negative volatility that sent the market tumbling more than 7 percent.

If you want to know why China is "rattling the world" click here.

If you want to know where and how much China is investing in the world click here for "The World According to China."

- Mark

BUNDY FAMILY GET PLENTY OF GOVERNMENT HANDOUTS ... AND ARE REALLY DELUSIONAL WARDS OF THE STATE

I was originally going to put this in a weekly readings post, but after seeing some of the comments from Bundy supporters it deserves to be posted in its entirety. From U.S. Uncut we get the "5 Government Handouts the Bundys Receive While Railing Against Government 'Tyrany'" ...

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Nearly every part of the Bundy family’s business is funded by government welfare programs.

The armed militiamen currently occupying the Malheur Wildlife Refuge in Oregon have attempted to portray an image of themselves as rugged, independent Americans rejecting government interference in their businesses. But nearly every part of their existence as ranchers is made possible by government welfare programs — even the building they’re depending on for shelter from the cold was built by federal tax dollars as part of the New Deal program. Here are just a few ways taxpayers are subsidizing the livelihoods of cattle ranchers like the Bundy family:

1. Ammon Bundy’s loan from the Small Business Administration

The Small Business Administration (SBA) offers a loan guarantee program for businesses that don’t qualify for assistance in the private credit market. As Mother Jones reported, Ammon Bundy — the ringleader of the Malheur takeover bemoaning federal overreach — got a $530,000 loan from the SBA in 2010 for his truck maintenance business in Arizona, costing taxpayers over $22,000. What the loan was used for or whether or not Bundy repaid it is not listed in public records.

2. The US government charges 93 percent less for cattle grazing than private landowners

One of the biggest gripes from cattle ranchers like Cliven Bundy and other Western cattlemen is that the federal government is bleeding ranchers dry with overpriced cattle grazing fees. But the opposite is true — in 2012, it cost roughly $1.35 a month for each cow to graze on federal land, as opposed to the average $20 per month charged by private landowners for cattle grazing. FiveThirtyEight.comillustrated the price difference in a graph:

If anybody is getting the raw end of the deal from the federal government’s cattle grazing prices, it’s the federal government. As of 2014, grazing fees only accounted for 15 percent of the total cost incurred for the Bureau of Land Management to manage land for cattle grazing. The other 85 percent comes from we, the taxpayers.

3. Ranchers get huge discounts on leases of public land

In Nevada, home of the Bundy family, 80 percent of the state’s land is owned by the federal government. But ranchers get to lease that land for their own private businesses at a huge discount. According to an investigation by The Atlantic, the lease discount program cost taxpayers anywhere from $52 million a year to $200 million, when accounting for all of the administrative overhead involved in managing the program.

4. Livestock farmers milk the “emergency” feed program even in non-drought years

Western states, like Nevada and Oregon, where ranchers like the Bundys reside, only produce roughly one-fifth of the nation’s beef supply, but require a considerable amount of taxpayer subsidies to stay afloat. The Atlantic estimates that the 11 Western states populated by ranchers eat up approximately $26 million per year.

5. Ranchers depend on big government assistance to keep livestock safe

The Bundys and other ranchers would have very little livestock to feed if it weren’t for the “animal damage control” program, in which federal employees kill off the nearby predators that present a danger to cattle. The Atlantic’s study of this program found that, again, Western ranchers are responsible for a disproportionate amount of taxpayer subsidies compared to the other 39 states:

In 1994 this program cost $55.9 million nationwide, of which roughly $22 million was spent on western livestock operations. The animals killed nationwide with this money included 163 black bears, 293 mountain lions, 1,928 bobcats, 8,973 foxes, and 85,571 coyotes.

If the Bundy family really wanted the “independence” from government they claim to stand for, their businesses would be underwater. Ammon Bundy and his gang should thank their lucky stars to benefit from so much government assistance.

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- Mark

GOP FREAK OUT OVER OBAMA'S EXECUTIVE ORDER JUST ANOTHER TANTRUM

With Republicans seriously freaking out over President Obama's Executive Order on guns, let's keep in mind two things. Republicans have been wrong about virtually every thing of substance about President Obama and his policies. As well, we need to keep in mind that Executive Orders have a place in the history of American democracy ...

In the FYI department, here's Eisenhower's Executive Order ...

- Mark 

SOMETHING TO CONSIDER AS WE WATCH THE BUNDY IDIOTS IN OREGON

The Mulford Act, which was signed into law by Governor Reagan in 1967, repealed open carry in the state of California. The history behind the act is not complicated, as this Esquire piece makes clear. Simply put, Republicans didn't like Black Americans having the freedom to openly carry guns in public. It scared them.

Since 9/11 white right-wing terrorists have killed twice as many Americans as radical Islamists. Yet, no one is talking about banning open carry laws. 

Think about this the next time you're told that everyone's right to open carry is absolute. 

- Mark

P.S. Late addition, this is from The New Yorker ...

“We’re not terrorists; we just want what any true patriot wants: to take down the United States of America.”

PRESIDENT OBAMA ANNOUNCES PLAN TO CUT DOWN GUN VIOLENCE ... IT'S A GOOD ONE

PBS News Hour has President Obama's full speech and a synopsis of his plan to reduce gun violence in America, which you can access by clicking here.

This clip from the news conference captures a few emotional moments from President Obama's discussion about gun violence in America.

- Mark 

CHINA'S MARKET OPENS NEW YEAR WITH A THUD ... MARKETS SUSPENDED

A newly installed "circuit breaker" designed to stop the Chinese stock market from going into free fall works. We know it works because the circuit breaker stopped all trading in China's stock market after the market dropped 7% this afternoon. Trading on the Shanghai and Shenzhen stock markets were prematurely closed at 1:33 pm.

China's Financial District.

What triggered the free fall is still being debated.

One of the causes could be a product of Beijing imposing a 6 month ban on trading by major shareholders (share holders with a 5% stake or more) back in July (2015). The ban was imposed because China wanted to prevent a bigger panic than was occurring at the time, and is supposed to be lifted this Friday (January 8, 2016). Analysts are worried there will be a panic sell off when the sales ban expires.

For my money, as I pointed out 6 months ago, China's real problem is tied to the fact that many of their market players are over leveraged. Put another way, they've borrowed too much and are now experiencing their "Minsky Moment" - too many market players owe too much to other indebted market players who can't pay.

Reaction to China's market panic in July, 2015.

After today's market developments some China watchers are predicting that over 1 trillion yuan worth of stock will be dumped on Friday.

As should be expected, the stock markets in Japan, Taiwan, and South Korea fell as well.

- Mark

UPDATE: It happened again. Early Thursday morning (1-7-16) China's markets closed again, after being open only 29 minutes. Stay tuned.

READING FOR THE 1ST WEEK OF 2016 (1-04-16)

Good gal with a gun shoots a good gal with no gun (KNTV News).

Owner of juvenile centers order to pay $4.75m in 'kids for cash' scheme (PennLive).

Congress is at it again ... the "Fairness in Class Action Litigation Act" is not only a "VW Bailout Bill" but would also cripple class action suits in the future (Fiscal Times).

Another reason economists don't know much about the economy: The story of robots (Truth Out).


CLIMATE NEWS
Climate disruption amplifies Atlantic currents' contribution to sea level rise (Truth Out).

Big oil braced for impact of global warming while fighting regulations (LA Times).

Ten weather extremes that defined hottest year recorded (Common Dreams).


AMERICA'S CULTURE WARS
Armed idiots (terrorists?), led by Bundy brothers, take over federal building in Oregon (Washington Post).

What's happening in Oregon is nothing less than armed sedition (Common Dreams).

Religious delusions are destroying us: "Nothing more than man-made contrivances of domination and submission" (Salon).

How race baiting and fear mongering are creating "the Great Republican Revolt" ... and how Donald Trump is riding the wave of fear (David Frum / Atlantic).


TRUMP IDIOCY
Al Qaeda is using Donald Trump's comments to recruit terrorists, and he's OK with that (Fiscal Times).

Trump cites Israel's illegal separation wall to justify banning Muslims (Salon).


CALIFORNIA: THE GOOD, THE BAD, AND THE UGLY
California cranks out new businesses and jobs despite criticism (LA Times).

Why the gas leak in California no one is talking about is such a disaster (Fiscal Times).

The San Joaquin Valley is sinking (Fiscal Times).


THE MIDDLE EAST
I'm no expert but I'm thinking southern slave owners had similar rules ... "Islamic state ruling aims to settle who can have sex with female slaves" (Thanhnien News).

Iranian protesters attack Saudi embassy after prominent Shiite cleric is executed (World Press).

Saudis, allies cut diplomatic ties with Iran (Ozy).

CHINA
China suspends forex business for some banks (Thanhnien News) 

China clamps down on coal (Climate News Network).


MISCELLANEOUS
Our George Orwell/Noam Chomsky paradox: Let's decipher the doublethink the media and government peddles about American foreign policy (Salon).

Japan tries to resolve WWII island dispute with Russia (Ozy).

The three reasons U.S. oil production hasn't declined ... yet (Money Morning).

At stake in 2016: End the vicious cycle of wealth and power (Robert Reich).

- Mark

THE NRA'S "FREEDOM BUNKERS" ... GET ONE NOW

- Mark

THIS IS HOW YOU SUPPORT THE TROOPS

- Mark 

WANT AMERICAN BOOTS ON THE GROUND IN SYRIA? WANT TO FIGHT ISIS? HERE'S YOUR CHANCE ...

Are you convinced that ISIS is threat to the United States? Do you believe something should be done to halt the march of ISIS? Are you so afraid of ISIS that you want American boots on the ground in Syria?

If you said yes to any one of these questions here's your chance to become a modern American mercenary in the Middle East.

Following the lead of The Guardian, who wrote about the foreign mercenaries back in April, the NY Times posted this article - "Meet the American Vigilantes Who Are Fighting ISIS" - in September. The NY Times' article provides an introduction to some of the organizations and groups who can help you fight ISIS. Then we have this site from Security Degree Hub, which provides more background on who you might want to contact if you're really committed to the cause.

Source: SecurityDegreeHub.com

To be sure, signing up to fight ISIS this way is not in line with what you will get from joining the French Foreign Legion (Legion link here). Still, it should help provide those who say they are committed to fighting ISIS - and want American boots on the ground in Syria - with the opportunity to demonstrate just how committed they really are to the cause. If your war mongering friends are too old (or have another excuse) encourage them to send one of their kids, or a relative. Make it a family affair.

- Mark